Posts Tagged ‘life planning’
Tuesday, January 10th, 2012
A non-medical term insurance is a suitable alternative to traditional life insurance term life insurance. Though it is more expensive than the conventional policies, it simplifies the underwriting process. It also eliminates the cost of medical tests and the time spent waiting for these tests. This type of policy is available for the following groups of people: * Seniors * High risk professions * Dangerous hobbies * Chronic illness * Pre-existing conditions
Not only people who fall under these categories, even young and reasonably healthy individuals also can apply for this. People who are young and healthy can get good coverage without the hassle of undergoing medical exams. Since life insurance companies are taking a risk by insuring such people, they will carefully select those who qualify for a term life insurance no medical. This policy can be quite expensive for those who are in dangerous professions or who have a chronic illness or seniors etc., Yet, this policy could possibly be the only way that most of them can get insurance coverage for their family.
When you get a life insurance quote on line, you will be given the rates for different categories. Life insurance rates will always depend on the risk posed by the applicants. It is quite natural that a healthy and young person cosidered less of a risk that one who is older, smokes or has a chronic illness. Obviously the insurance rates for the former will be lower than for the latter. Under each category that you fall under, it is best to request several quotes so that you can compare them and get the best possible rate.
For a no medical life insurance, the risk is not known since a medical report is not submitted by the applicant. Hence, the risk is perceived to be greater and so the rates will also increase proportionately. Non medical insurance applications can be completed online and some of the questions will concern the general physical condition of the applicant, the height / weight ration, family medical history and such. Some companies will ask the primary care physician of the applicant for a medical report.
This type of insurance often called instant life insurance since, quite often the entire application process is completed online. Based on the answers to the questionnaire, if the insurer thinks that the applicant will develop a serious illness later, they may want blood work and a physical exam done. If these exams reveal a dangerous illness, the applicant may not be given coverage under this plan. They will have to seek an alternative. One must be honest in answering the questions. Otherwise it will be considered as fraud or material misrepresentation and the application can be rejected.
If a person lies either accidentally or deliberately, it is considered a material misrepresentation. If such a case is found even after a few years, the policy can be terminated or payment denied on any future claims and the beneficiaries can only get a refund of the premiums. Even though a non-medical policy can be issued for most people, the insurance company still follows a selection process and determines rates based on some pre-determined factors.
Hence, since younger people, especially those under 35 will usually represent the low risk category, they can get much lower rates. This again depends on their lifestyle choices, nicotine and alcohol use etc. Usually, term insurance no medical exam plans are issued for anywhere between 5 and 30 year periods. Most permanent insurance policies are issued only after a medical exam is undergone since they are taken for the entire life of a person.
Apart from non-medical insurance, there are some others like instant-issue term insurance that can be given quickly. For such a policy, you will be asked around 40 questions that cover a range of health issues. This includes questions on whether a person drinks, smokes, takes drugs, gender, age etc. The premium rates will be fixed based on the questions with women generally given lower rates, as, they are usually healthier, have lesser dangerous habits and are therefore expected to live longer. Although non-medical insurance is more expensive, it benefits a lot of people. So, the best move would be to compare online quotes for this plan from multiple insurance providers, calculate costs and then go with someone who offers the best rates, terms and conditions.
Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on insurance life rate and no medical term life insurance, visit his site today.
Tags: family, Financial Planning, insurance, insurance policies, insurance policy, life assurance, life insurance, life insurance policies, life insurances, life planning, personal finance, personal finances, planning, term life insurance
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Tuesday, January 10th, 2012
Responsible adults will work hard to support their family members who are dependent on them. They will also take care of all their family’s needs in case something happen to them. One such option to take care of a family’s needs is to get a life insurance policy. With a large variety of plans available, buying the right policy may be often a tough decision. The best way to do is to get online life insurance by first understanding about the different policies, getting quotes, comparing and evaluating them before making a choice.
Of the different types of plans, term insurance is the most affordable and gives high death benefits. Hence, this market is very competitive and when you get quotes, you will soon find a significant variation in the pricing of policies from different insurance providers. Hence due to these variations, it is essential that instead of getting a single life insurance quote on line, it is best to get several quotes from as many businesses as you can. This is achievable through online websites for all these quotes are free and you can find comparison websites where several quotes can be compared on a single page.
Here are some advantages of getting online term life insurance quotes: * It is free * It is fast * Your are not under any obligation to buy a policy * Comparison options are plenty * Substantial savings are possible
Apart from being free, getting a life insurance quote on line is also fast. You just need to fill in a few details like name, age, zip code, coverage amount and period and soon you will be given several quotes to check out. You do not have pushy salespeople running after you and hence, you are under no obligation to buy a policy from a company even if you ask them for several quotes.
Term insurance quotes from top providers can be compared before selecting one on the Internet. You can find the cheapest rates possible from top rated insurance companies. Sometimes, selecting an insurance policy online can save an individual 70% in premium costs. Of course, since life insurance is so competitive, you will find many fraudulent or poorly rated companies offering very low rates to lure customers.
You should not fall for these scams for either you will not get good coverage or your premium payments can be entirely lost if the company closes down. Select insurance companies rated by research firms such as A.M.Best. Check their rating system, only get, and compare quotes from highly rated companies. Even if you have to pay slightly more for their policies, at least you will be sure that your money will be safe and your beneficiaries will receive their dues when you die.
Even with term insurance, you must first identify the low cost options that are available before making your choice. Some of the low cost term life insurance plans are – 10-year, 15-year, 20-year, 25-year, 30-year policies. The 10-year plan has low premium rates for every $1000 and if you require a short-term policy, then you can go in for this. Those who have pre-teens or kids in their early teens can choose this as it can help pay their tuition fees in college. If you have a mortgage to be repaid in 15 years or a child of 5 years or so, you can take the 15-year plan.
The 20-year term can be selected by newly married people with a newborn child or with a new startup business they want to take care of in the future. Most people do not opt for the 25 or 30-year plans since they prefer not to plan so far ahead. Yet, these too have their benefits since the premium rates will remain the same throughout the period, they work out much cheaper than a permanent life insurance policy.
If you don’t want to attend any medical exam, choose the life insurance no exam. This policy has the popular options – Guaranteed Issue and Simplified Issue. Both these plans are easy to get after answering a few questions relating to your past medical history, family medical history, age, height, weight and so on. Almost anyone can get coverage under these plans and provide a secure future for their families.
Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on cheap life insurance rates and instant term life insurance quotes, visit his site today.
Tags: affordable life insurance, family, Financial Planning, insurance, insurance policies, insurance policy, life assurance, life insurance, life insurance policies, life insurance policy, life insurances, life planning, personal finances, planning, term life insurance
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Tuesday, January 10th, 2012
A person, who is well versed in types of insurance policies, costs etc., can visit the many online sites that specialize in them and request a quote. Then after answering a few questions relating to your health, you will be assessed through an online evaluation system. If it is deemed that you are a healthy individual and young, you can get instant life insurance online without having to spend time visiting an insurance office. This is a great boon for busy professionals who want to buy insurance to take care of their families but do not have the time for lengthy medical and application processes.
This process works as long as you know how much insurance coverage you need, the type and length of the insurance plan you prefer. If you do not know these details, you can take the help various tools available for the purpose. Use a free insurance calculator provided by insurance websites. It will help you calculate the amount of coverage. Some calculators are simple to use and others very complex. Use the calculator that is simple for you to calculate or get some professional advice from an insurance agent.
Once you get an idea about how much coverage amount you need, you can request for a free life insurance quote. It provides you with the premium amount for this figure. Get as many quotes as possible from various insurance providers. This will help you decide who company offers the most affordable policy. The number of years of coverage you need will really depend on the type of plan you get. If it is permanent insurance, the coverage is for your entire lifetime. If you prefer a term insurance since it is cheaper, then calculate the coverage period based on various parameters.
One of the parameters can be the age of your youngest child and when he or she will graduate. If your child is 5 years old right now, then you can get a 15 or 20-year plan. If your main objective is to provide protection for your spouse in her old age, then take a slightly longer policy depending on her current age. A policy that protects your spouse will ensure her comfortable life, even if you have passed on. The quickest policy to process online is a no medical exam term life insurance. This policy is offered by many insurance providers, who mainly target young and healthy and who do not have the time to go to a clinic or who are afraid of medical tests.
These people need to simply fill in an online health questionnaire and will soon be issued a policy – sometimes as quickly as 15 minutes. A few years ago, before the dawn of computers and the Internet, you could never dream of getting life insurance so quickly. So, you can make use of these benefits provided by the new technological revolution and get some decent coverage for yourself and your family.
Anyone who knows something about life insurance policies also know well that life term insurance is the cheapest among all the types available. This plan has different sub-categories and you need to make your choice based on your future needs and the amount you can spend. A 10-year life term insurance is one such excellent plan. It contains an assured level premium and guaranteed death benefit. There are different factors to consider when choosing this plan like: * Death benefit offered by the policy * Conversion privilege * Additional Riders * Minimum and maximum coverage * Living benefit riders * Child and spouse riders
First select how you want the death benefit paid to your beneficiaries. This could be as a monthly income or a lump sum. Some policyholders who name their kids as beneficiaries may prefer the former option. It is due to the fear that their kids may spend the money recklessly if they receive it in a lump sum. Make sure the 10-year life term insurance offers the conversion option when it expires. This option could be to renew the policy or convert it to a permanent one.
The available riders for a 10-year term include waiver of premium and accidental death benefit. Depending on medical history and age, different minimum and maximum coverage terms will be provided. So ensure that these things fit your needs. Living benefit rider helps those who get a terminal illness during the 10-year term and need some relief. The spouse and child riders also offer many benefits. So check out all these options before signing on.
Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on whole life vs term insurance and no medical term life insurance, visit his site today.
Tags: cheap life insurance, insurance, insurance policies, insurance policy, life assurance, life insurance, life insurance policies, life insurance policy, life insurances, life planning, personal finance, personal finances, personal financial planning, planning, term life insurance
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Tuesday, January 10th, 2012
In a fast paced world where most working people do not have time even to read the morning new paper in the traditional way, technology has simplified life. Now, people read newspaper while on the train commuting to work on smartphone, Kindle or iPhone. Similarly, life insurance has also become instant with people not having the time needed to fill in lengthy applications and waiting for a few weeks for blood tests to be completed and underwriting process done. Hence, buying instant term life insurance online has become the popular choice for many.
Just think how much simpler it is to give an insurance company relevant information online. Just request for multiple instant term life insurance quotes, fill in a short form and wait for a simple verification to be done. In fact, if you want a no medical exam term life insurance, you do not need to see a doctor, nurse or paramedic. Just answering a few medical related questions is what is needed to get the policy approved. No wonder the policy is called instant and can be processed in as quickly as 15 minutes.
Due to advancements in medical sciences, people live much longer today. A serious illness which a few years ago shortened life can now be treated. Hence, quality of life has improved to a great extent. The number of years an average healthy individual lives has also increased. Since the popularity of instant term life insurance has grown, many companies are offering newer and better schemes to attract people. While some companies offer only short term plans, others offer even the longer 10, 15, 20 or 30 year level term policies. The premium rates are competitive and one such policy can even last until the holder reaches the age of 95.
Those between the ages of 18 and 65 can apply for any of these plans and coverage is offered up to $500,000. The plan takes only 15 minutes to be approved and can be truly called ‘instant’. All those who have dependants to support – children, spouses or other dependent relatives – can buy these plans. Some business owners even offer such schemes as part of their employee package. This is a great incentive for good employees to continue with a firm until retirement.
Here are some tips from experts on the best way to buy a life insurance policy online. Before you request a life insurance quote on line, keep some basics in hand that will help you get the right plan for your needs. * How much coverage to get * Which policy to settle for * Which insurance company to choose
The needs of individual families can vary. Some have many kids to support, others have none, some have only a spouse to support, some have a disabled sibling to take care of etc. So, to know how much insurance to buy, use the online calculator provided in every quote website. Give some inputs like expected coverage amount, period, and the calculator will give you an accurate estimate of premium cost.
There are several coverage levels provided. If you find one too expensive, start the calculator again and input lower figures. You can keep doing this multiple times until you reach a coverage amount you know can protect your family and also affordable one. The choice of policy to settle for depends on your specific needs. If you prefer term insurance for the kids, calculate it based on the age when your youngest child goes to college.
You must also consider the needs of your wife – does she have an independent income or does she stay at home and take care of the family. In the latter case, you must make provision for her for her entire life. If you have a good job with a high salary, you can choose to buy a permanent insurance package like whole insurance or universal life insurance.
Both these will offer excellent death benefits along with cash savings that multiplies over the years. Since these plans are for the entire life of the individual, one doesn’t have to worry about renewing it. Finally the choice of the company must be decided based on the credit rating from a reputed agency. A credit rating of B+ and over is considered a safe company.
Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on life insurance and term and term life insurance no medical exam, visit his site today.
Tags: affordable life insurance, family, Financial Planning, insurance, insurance policies, insurance policy, life assurance, life insurance, life insurance policies, life insurance policy, life insurances, life planning, personal finance, personal finances, planning
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Tuesday, January 10th, 2012
Most insurance companies offer an insurance life quote to anyone who wants to buy it. Anyone who wants to these quotes can get them free. One can get a free quote in several ways. First, you can find out from the place where you bought your auto or home insurance if they have other types of plans too. Ask them for a quote. If you take a life insurance policy from them in addition to other plans, you can get a discount too.
Some people prefer to get quotes from reputed companies. You can call up such companies and request quotes from them. Another method is to get a life insurance online quote. This method is growing in popularity with the modern generation. This can be generated very quickly. Just enter a few details, a quote will be delivered to your email inbox within a matter of minutes. If you have any doubts, you can get them clarified from the representative of the company and make a real offer.
Based on this offer, you can go with that company or wait and check out other plans. Searching for insurance quotes online gives you the advantage of easily comparing rates between different providers. In fact, there are dedicated websites that provide comparison of insurance quotes for as many as ten companies at a time. Another way of getting free quotes is by talking to an insurance broker. This person will meet you and get relevant information from you and then give you an idea as to the plans that are available that will suit your needs.
Some of the details that insurance quotes require include: * Age * Gender * Weight * Height * Existing medical conditions * Smoker or non-smoker
People who are middle aged, smoke and are overweight will find it hard to get low cost insurance. Such people can request for special term life insurance quotes that do not require any medical exam to be undergone. Choosing a broker has the one disadvantage – he will represent only a few companies and will sell you policies only from those.
This may not result in you getting really low cost insurance. Hence, the best option is to get quotes online from multiple insurers. This is a quick and hassle free process. If you choose the ‘no exam’ option, the policy can be issued within a few minutes. Using multiple methods to get a life insurance quote will ensure you have the best information possible. You can compare terms, conditions and rates for different plans and choose the best one that will suit you the most.
Apart from getting and comparing quotes, you can also find several expert tips on how and where to find low cost life insurance. They recommend you to buy insurance from an insurer who competes on low price. Some companies have agents to sell as many policies as possible. Others compete in the market based on low life insurance rates. Spend time researching these companies and compare the rates they offer before buying a policy. This will save you a great deal.
Another way to get low cost insurance is by answering all medical questions and submitting to a medical exam if needed. Some companies will waive a medical exam for young and healthy people, women etc. However, if you undergo a thorough medical exam, you will get low rates especially if you pass the exam without too many health issues. Avoiding a medical exam will provide limited coverage at very high rates. Of all the different insurance term policies available, a level term is considered the cheapest.
When you take this policy, you will pay insurance for a fixed period of time at rates that will not vary. The rates will be determined based on the coverage amount and period, with higher amounts and term attracting higher rates. The only drawback with this scheme is that when the period is over and you wish to renew the same policy, you may need to pay higher rates. This will be because you are older and have developed some medical issues. Always remember to check renewal terms too when getting a policy. This will ensure you can get affordable insurance even when older.
Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on cheap term life insurance and life insurance no exam, visit his site today.
Tags: family, Financial Planning, insurance, insurance policies, insurance policy, life assurance, life insurance, life insurance policies, life insurances, life planning, personal finance, personal finances, planning, term life insurance
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Monday, January 9th, 2012
Most people want to give the best for their family. This means that they will do anything and everything in their power to provide for their family. One of the best investments that a head of the family can get is to give his/her family financial assurance in the future in the event of his/her death. One can do it by purchasing a life insurance policy. There are two main types of life insurance policies to choose from.
The permanent life insurance will offer insurance coverage to a policy holder from the instance that the policy was purchased until the policy holder dies. One advantage of this type of insurance is that there is no expiry date on the coverage and the family or designated beneficiaries will be assured that the cash amount will be given to them.
On the other hand, the life insurance term life insurance policy offers policy holders insurance for a specific period of time. The term period will range from 5 years to 10 years. The policy holder’s beneficiaries will receive the death benefits just as long as the policy holder’s death will fall within the term of the policy.
Most insurance companies that offer these two policies will ask thier potential policy holder to pass a pre-screening medical exam before offering him a policy. The medical exam that they will undergo will be comprehensive and will be administered by a company appointed physician. Most people will feel that a pre-screening medical exam is bothersome. However a medical exam may prove to be more advantageous to most people.
When a policy holder undergoes a medical exam, the health of this person will be fully scrutinized. The results of their medical exam will accurately depict their health status and prognosis of their life expectancy. When a person’s medical exam results are superb, he or she may be given a low cost life insurance rates.
However, if a person does not want to be subjected to a medical exam, he or she may avail of the life insurance no exam policies that are now available as alternative plans offered by insurance companies. This type of policy is also known as the instant life insurance policy because it will give instant coverage to a policy holder without having him/her pass a medical exam. However, this type of policy has its advantages and disadvantages.
One advantage of this type of policy is that a policy holder will not have to set aside time to have a medical check up annually. This makes the application process simpler and more efficient. Another advantage is that the person applying will not have to suffer the indignity of being denied of an insurance policy just because of a medical condition. The third advantage is that persons even with underlying medical conditions will have the opportunity to be insured as well.
The instant term life insurance quote online will be based solely on the belief that young age is synonymous with good health. This means that the premium rates that you have to pay with this type of policy will be virtually identical with a plan that would have required you to undergo a medical exam. This is another great advantage this type of policy has.
Because there is no medical exam, the no exam life insurance policy will base the risk profile of an individual solely on the information given and the age of the individual. This can become a disadvantage especially in the area of price. This type of policy will immediately assume that the older the individual who is applying for a policy is, the greater is their risk profile. This will cause the term life insurance quotes of older policy buyers to become significantly higher regardless of whether that individual is still healthy or has pre-existing medical conditions.
Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on cheap term life insurance and life insurance no medical exam, visit his site today.
Tags: family, Financial Planning, insurance, insurance policies, insurance policy, life assurance, life insurance, life insurance policies, life insurance policy, life insurances, life planning, personal finance, personal finances, term life insurance
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Sunday, January 8th, 2012
Quite often we read about people dying unexpectedly. They may die due to natural causes such as old age or through a fatal illness or through accidents or natural calamities. An unexpected typhoon caused massive flash floods that claimed the life of hundreds of residents in a city of the Phillippines. In a news report, surviving family members have expressed their grief on the loss of their loved ones and have also asked the government’s support for financial assistance because of what happened. A situation such as this is indeed really dreadful. However, there are ways to protect family members from being financially devastated because the head of the family unexpectedly dies. This is through a life insurance policy.
A life insurance policy is a sure way of assuring that the loved ones that a head of the family will leave behind will be able to cope with life financially even after that head of the family dies unexpectedly. The life insurance policy acts as a contract which will obligate an insurance company to indemnify the loss of life of a policy holder in the event of his/her death. The amount of coverage purchased by the policy holder is the same amount that will be given to designated beneficiaries upon the policy holder’s death.
A person who wants to purchase a life insurance policy even if it is just one of the more affordable life insurance policies available must consider how much coverage his/her family will need upon his/her death. There are a lot of things to consider such as the immediate expenses, the recurring expenses and the future expenses of the family. The immediate expenses are the fees and costs which are associated with the death of the policy holder. This includes funeral services costs and hospital bills. Unpaid credit card bills are also included in the immediate expenses. Recurring expenses are the costs that the family needs to pay to continue their daily living. These will include house rental, mortgage payments, utility bills and other payments made regularly. Future expenses will include the retirement expenses of the surviving spouse or the college tuition fees of school aged children.
The amount of coverage should be at least equal to or more than ten times the amount of the annual salary of the policy holder. Term life insurance quotes will give a policy holder the choice of coverage amounts and also the corresponding premium payments that he/she has to pay on a regular basis.
Most life insurance policies will require potential policy holders to undergo a medical exam which will be conducted by a company appointed physician. The insurance company’s underwriters assess the life expectancy of the potential policy holder based on the results of these medical exam. This will be the basis of computing for the premium rates that the policy holder will have to pay. Whole life insurance and most of the long term life insurance policies require this medical exam. Policies with high coverage amount also require the medical exam and this exam is done annually.
On the other hand, certain life insurance policies available do not require any pre-screening medical exam. These policies are called the no medical life insurance policies. Individuals who have pre-existing diseases or illness before being covered by insurance may avail of this type of policy. This also is known as an instant life insurance. The insurance underwriters will make use of the person’s age and the information on the person’s family medical history as the main bases for the computation of the premium payments that policy holders must pay on a regular basis.
The only disadvantage of an instant or no medical life insurance policy is that the amount of insurance coverage may not be large enough to cover all the necessary expenses of the family after the policy holder has died. Also, these types of policies may only a limited number of illnesses. Because of this, these instant life insurance policies are sometimes called accidental death insurance policies because they only cover death due to accidents and not due to fatal illnesses.
Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on life insurance quotation and life insurance no exam, visit his site today.
Tags: affordable life insurance, family, Financial Planning, insurance, insurance policies, life assurance, life insurance, life insurance policies, life insurance policy, life insurances, life planning, personal finance, personal finances, personal financial planning, planning
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Sunday, January 8th, 2012
Life is full of surprises. However, not all surprises are pleasant ones. There are times when a family will encounter an unexpected event such as a death of a family member. If this happens, the surviving family members will grieve the loss of one of their members. The grieving will be much greater if the person who died is the head of the family or the one who is supporting the family financially. If this happens, the family will be left with the burden of both emotionally and financially.
When the breadwinner of a family dies unexpectedly, the spouse and the children who rely on him will be left devastated. The emotional distress is hard. What makes their lives more difficult is that they have to shoulder the costs of the funeral as well as pay all the unpaid debts of the person who just died. Fortunately, there is a way to prevent the family members from suffering the financial burden in such situation. This is by investing in a life term insurance policy.
Like any other insurance policies such as car insurance, a life term insurance will bring two parties under a legal contract. The first party, which is the life insurance provider, will be responsible for indemnifying the loss of life of the policy holder, the second party, with the coverage amount chosen by the policy holder. The policy holder in turn will pay the necessary premiums set by the insurance company.
The amount of coverage that the policy holder will choose will mostly depend on his/her family’s needs and lifestyle. The amount of life insurance coverage should be enough to maintain the lifestyle that the surviving family is used to. This means that if the family is used to a lap-of-luxury lifestyle then the amount of coverage should be sufficient to maintain this type of lifestyle even long after the policy holder has died. A thumb rule for choosing the coverage amount is that the amount should be as much as ten times the annual salary of the policy holder. This is to ensure that the family will have a replacement income for a minimum of 8 to 10 years. This period is more than enough for the family to bounce back financially.
When choosing a policy for a life insurance, there are a lot of websites set up by insurance companies that offer both the medical exam required policy and the no medical life insurance policy. Each of these policies has its own pros and cons.
Certain policies ask a person to undergo a medical exam first. For such policies, the insurance underwriters will use the results and the prognosis of life expectancy to evaluate the amount of premiums that are to be subjected to the policy holders. it may be bothersome to spend time for a comprehensive medical exam. But being examined thoroughly may lessen the amount of premiums you will have to pay especially if your exam results are superb.
For the no medical life insurance policy, the instant term life insurance quotes may be instantly obtained by just simply answering an online form located in the insurance company’s websites. This means that potential policy buyers need not take time off work to schedule a medical exam. People will also not be subjected to the indignity of being accepted or denied just because of a medical exam result.
However, no medical life insurance policies are only advantageous to people who are still young. It is because they will be offered very low life insurance quotes. The insurance underwriters for these no exam policies will only based their computations of premium rates solely on face value and the age of the potential policy holder. A policy holder who is 30 years old will most likely be offered significantly low premium rates as compared to an individual who is 50 or 60 years old even if the person who is 30 years old is far less healthy than the older individual.
Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on term life insurance quotes and life insurance quote, visit his site today.
Tags: affordable life insurance, family, Financial Planning, insurance, insurance policies, life assurance, life insurance, life insurance policies, life insurance policy, life insurances, life planning, personal finance, personal finances, personal financial planning, planning
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Saturday, January 7th, 2012
The sale of life assurance policies may have increased manifold, but the fact is: very few people buy it for the purpose of insurance. Most people go for it with the intension of building their assets under easy terms. Of course, there is no harm in it; but before you do that, you should know about its pluses and minuses. Let us now know them.
Let us first understand what a life assurance policy is. Technically speaking, a life assurance policy is same as life insurance policy. Let us define it from two different perspectives:
According to legal perspective, a life insurance policy is a contract between the policyholder and the insurer in which the policyholder is required to pay certain sum as premium at regular interval and in return, the insurer is required to pay certain sum as benefit on the occurrence of the insured event.
From the financial perspective, life assurance is an intimidation, which brings together individuals exposed to some specific contingency to form a common pool of fund; if that contingency does occur, claims are paid from that fund for its mitigation.
It is a fact that very few people actually benefit from the claim event because it doesn’t take place quite that often. Since the pure life insurance policies rarely pay, people prefer the cash value policies, which along with providing the usual life insurance benefit also build up assets for you. They pay benefit if the insured event takes place and if you outgrow the need of insurance, you can cash out the policy and get the accumulated cash value plus interest in return.
However, because only the money above the cost of insurance can be utilized for growing the cash value, these policies are always overpriced. If you have any reservation, avail instant life insurance quotes from online brokers and compare them side by side. A glance through them will corroborate the fact without a doubt. Indeed, if you want the coverage at an affordable rate, you should always opt for a pure life insurance policy such as a term life. If you want, you can build up your asset by investing separately in suitable investment funds.
The term life policies are usually reasonably priced. It is because of two reasons. First, they need to take into account only the cost of insurance; funds need not be diverted to grow any investment opportunity. Second, since the policy is sold for specified term, in more than 99% cases, it expires without having to make any pay out. The main benefit of buying the policy lies in the peace of mind one enjoys, not in the actual claim event; such events rarely take place.
However, because a term life policy is affordably priced, the cost of insurance needs to be established more accurately than in many other life policies. Consequently, these policies have to undergo long underwriting process. Of course, the underwriting process is not short in whole or universal life either and so if you want instant life insurance coverage, may be the life insurance no exam policy is your only option. These too are mostly term life policies, but they have been designed for speedy and simplified purchase.
Let us go back to our original discussion, i.e. the pros and cons of buying a cash value policy. The pros have already been discussed. Whether you live or die, the policy will compulsorily provide some return. In case you die while the policy is in force, your beneficiary will receive the death benefit and if you outlive the need for insurance, you can cash out the policy and use the proceeds as is necessary. One of its main disadvantages is that the policy is sometimes much too expensive. Comparing different categories of life insurance quote substantiates the facts.
However, that is only the visible side of the story. If you go deeper, you will see that the amount above the cost of insurance is deposited in a separate fund to grow the cash value of the policy. Yet, if the insured dies while the policy is still valid, the carriers retain this amount and release only the death benefit. Alternately, when you cash out the policy, the carriers are going to retain the amount deposited in the insurance account. Therefore, why should you waste your money on insurance that you do not need? If you are buying the policy only for capital building, go straight for investment funds; for insurance buy term life. That is much smarter.
Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on life insurance quotes and cheap term life insurance quotes, visit his site today.
Tags: family, Financial Planning, insurance policies, insurance policy, life insurance, life insurance policies, life insurance policy, life insurances, life planning, personal finance, personal finances, personal financial planning, planning, term life insurance
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Saturday, January 7th, 2012
Universal life insurance is one of the several types of insurance policies introduced by insurance providers. These are very flexible and can be tailored to suit the needs of each policyholder. People who prefer simple protection policy without a savings option like universal life can request for term life insurance quotes. In fact, if you request for an online quote, sometimes the entire application process can be completed online.
Insurance companies introduced universal life insurance to overcome the drawbacks of both whole and term life insurance. It was introduced in the US in the 1980s. It was considered to be a flexible alternative to whole life insurance. Both universal and whole life policies have a savings component that gives tax deferred cash to the policyholder. Part of the insurance premium (usually 4% – 5%) is invested by the insurance company in money markets, bonds or mortgages. The policyholder will not have a say in how the money is invested.
The policyholder can choose two ways in which the death benefit will be paid out. With one option, the death benefit will be paid through the policy’s cash value and as this value builds up, the premiums will get lower. With the next option, the cash value will be paid as it accumulates over time and the company will repay the face amount that was originally mentioned in the contract. The second option costs slightly more than the first.
When you opt for a universal life insurance, you must first weigh the pros and cons: * Pros o Flexible and tailored to individual needs o Policyholder can adjust premium payments depending on financial circumstances o No income tax for cash value growth and death benefits are tax-free
* Cons o If investments lose money, cash value can decrease or even be entirely lost in the worst case scenario o Sometimes bad investments will result in the policyholder having to pay higher premiums
Like all other types of insurance policies, universal life insurance also provides protection to family members and can be a good investment option to consider during estate planning.|Like all other types of insurance policies, universal life insurance also gives protection to family members and can be a good investment option to consider during estate planning.
Those who are shopping for affordable insurance plans must first begin with looking for cheap term life insurance quotes. This must be undergone if a person is looking for his first insurance policy or is seeking to renew his insurance policy with the view to reducing his premiums. Term life insurance is ideal for those starting off in life and can protect both families and businesses during vulnerable financial times. A term insurance provides peace of mind. When the term is over, if a person so desires, he or she can opt for a permanent insurance if their financial circumstances have improved and they can afford.
Getting an online quote will help you know which company will give the cheapest rates. Each insurance company offers different prices. While the basic policy will be the same, there can be small changes in terms or some add on packages, which will make the rates differ. So, comparing quotes is the best way to get cheap rates. This comparison of quotes can be done easier on online sites. These sites give you free and instant term life insurance quotes. So you can request as many as you like without being under any compulsion to choose one company or the other.
With term insurance, a critical factor is the term you take the policy for. Most insurance experts say that if you have children, you must continue carrying a policy until your youngest child becomes an adult. This will enable you to provide protection when they are still your dependents. Hence, based on this, you can opt for a 10 – 15 year policy. Those who want some money for retirement can go in for a longer 20 – 25 year term. Since these terms are flexible, it is best to make a checklist of all your needs before fixing the term and the coverage amount.
Sometimes, people may change their term life to a permanent life plan if their finances become secure and they want an investment option. Others will stick to a term insurance and make investment plans of their own. Since there are so many options available, it is best to study them and then make an informed decision.
Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on insurance life quote and low cost term life insurance, visit his site today.
Tags: family, Financial Planning, insurance, insurance policies, insurance policy, life assurance, life insurance, life insurance policies, life insurances, life planning, personal finance, personal finances, personal financial planning, term life insurance
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