Think of Life Insurance This International Day of Families

The family is one of our most important social structures, a fact recognised by the United Nations General Assembly who proclaimed May 15th International Day of Families in 1993. One of the key roles of the family is to nurture and support its children until they are old enough to look after themselves. Sadly many parents do not realise that they cannot ensure that their children are always provided for, no matter what happens, without the protection of a life insurance company

Most of us look back on our childhood with a fond smile. Memories of Christmas day spent with friends and families, wrapping up warmly to go to school on winter mornings, weekend treats and favourites meals. For children the family is our shelter, our support and our protection. It is the safety net we need as we develop and grow and learn the skills we need to grow into mature adults.

As a parent most of your time is dedicated to ensuring that your children have the safety net they need. The good schools and teachers, the healthy food, the exercise, the safe house, the warm jersey in winter and the holiday they deserve after a long year at school. You spend time teaching them right from wrong, the importance of self-discipline, kindness and honesty. Your children are your life.

But what of your death? Who would provide that safety net for your children if you passed away before your time, before you were able to teach them all they needed to know to grow into the adults you want them to be? Would your partner, on his or her salary alone, be able to provide for your family?

If you are asking these questions about your family’s future then you need the protection of a life insurance company. In the event of your death your family will be able to claim against your life insurance policy. Should their claim be successful, they will receive your benefit amount as a lump sum pay out, funds that can be used by your spouse or partner to replace the income you earned and look after your family, as you would have wanted them to be cared for.

This Family Day make sure that you spend some time discussing your family’s financial future with your partner or spouse. Make sure that the ones that you love are protected against the very worst that can happen: the death of a family breadwinner.

Why Students Need Life Insurance Too

As the cost of higher education rises, families turn to loans to send their children to college.

Shock statistics from the Consumer Financial Protection Bureau state that as of the end of last year, outstanding student loan debt was more than $1 trillion. Are you the parent of a college-going child?

Have you co-signed a loan to cover the cost of your child’s education and if so have you taken out life insurance in your child’s name to settle that loan in the event of his/her death?

Think about it this way. Like any other parent you want the best for your child and that includes a tertiary education.

You are happy to co-sign a student loan because you know that your child will work to pay back the loan once they have completed their studies. But then one day every parent’s nightmare becomes reality and your child passes away before he or she can pay back the loan, perhaps even before he or she can finish studying. What now? Because you co-signed the loan you are responsible for paying back what is owed.

This is where life cover steps onto centre stage. If you take out a life insurance policy in your child’s name you know that if he or she passes away their life insurance policy will pay the policy beneficiaries a lump sum amount. These funds can be used to pay off outstanding debt, including student loans, store cards and credit cards. The money can also be put towards funeral expenses as well as the costs of settling your child’s estate.

No parent wants to think about the death of his or her child. For many the thought of their child dying before them is too horrific to even contemplate. But as responsible adults we have to plan for the worst and ensure that we are financially protected against the death of our child. Think of it this way. If your child passed away and you assumed responsibility for his/her student debt how would you cope with the repayments? Would you be able to afford them? How, for example, would this unexpected financial burden affect your retirement plans?

Take charge and speak to your child today about taking out life insurance in his or her name. While it might be a difficult conversation it is one that has to take place. And remember, taking out life insurance while you are young and healthy means that you will save on premiums as you grow older.

Spotting False Term Life Insurance

False life insurance fraud is perhaps the most sensitive kind of insurance scam, since larger frauds are often discovered only after the death of the insured. Although buyer frauds are very common, and can even lead to the murder or suicide of the insured in order to cash in their insurance, this article focuses on seller fraud, where those selling or claiming to sell insurance are involved in the fraud.

Fake websites and agents

These exist for the sole intention of obtaining an unsuspecting person’s money, usually through credit cards. Websites may be made to look like those of a genuine insurance company, or may represent a completely bogus organization. These can be recognized in a variety of ways, the easiest of which is to check whether the web address starts with https:// – this is a secure site and payment information can be entered here. Often, links to fake sites will be emailed to you, so check if the email is from a public account or your insurance company’s account. Furthermore, hovering the mouse pointer over a link in the email will tell you if the email was sent from the same site, and not a fake one. It is important to remember that no bank or insurance company will tell you to “renew information” through an email. If you receive such an email from your bank, verify it by calling them, and not on the number given in the email!

Fake agents are a little trickier to detect, since both real and fake ones will approach you personally and advertise policies. Thieves collect premiums and do not pass them on to the insurance company. As a general rule, verify with your company beforehand if they have any policies and whether they have sanctioned agents to collect premiums.

Ghost companies

These “companies” are really just groups of con artists operating out of a single room, who dial their targets and sell them policies, claiming to be certified or licensed. The smartest thing to do is to check with your state or national insurance department whether these companies exist. As always, do not hand over credit card information over the phone, and ask around for any news on insurance scams.

Churning

This involves selling or advertising unwanted policies with an intent to generate commissions rather than yield any genuine benefits to the customer. For example, an annuity plan that generates cash but only after 15 years is unlikely to be popular among 60-year olds. Hiding the disadvantages of this plan, which often include paying large penalties or surrender fees in order to receive payment earlier, is often involved.

Similar to churning is selling plans that over or under-cover the client, only to generate commissions for the broker. The best way to avoid this kind of fraud is to run one’s account independently, without letting brokers have discretionary authority over buying policies.

Insurance companies have the services of surveillance investigators and often an in-house insurance fraud investigation unit to help them tackle buyer fraud, but you will have to get by with common sense and vigilance. There is no such thing as “extra careful” when it comes to your financial matters, especially life insurance!

Why Should You Get a Life Insurance Policy?

Almost everything in life is uncertain and we should always prepare for any unplanned situation that might pop up. Life is uncertain, and we need to be prepared for the unexpected. In fact, the only things certain in life are taxes and death. One or both of these things are bound to happen at some point in a person’s life. While taxes will always be present in every society, death can come like a thief in the night.

Sickness and death are particularly frightening as it is. Death is certain-a part of life and its certain that one day we will go back to our creator. What’s really frightening though is if we are not prepared when this happens. This is the reason why every person should have a life insurance policy.

A life insurance policy can go a long way toward helping dependents who have experienced the death of a loved one. If the breadwinner of the family dies, his dependents can be left with nowhere to turn. If he has a life insurance policy, however, then his dependents will have a safety net until they can fend for themselves.

Policies can do more than serve as a lifeline for dependents after the insured dies, however. They can also help defray death-related expenses, including funeral costs and the cost of probate for the insured’s will.

Some people are not as lucky as others and they will not be able to leave mansions and lands to their dependents. With this Insurance, a parent can be sure to leave an inheritance to his dependents or beneficiaries. This makes the product especially important for those who have young children-the benefits will help cover their expenses until they are able to work and fend for themselves. The amount of coverage a person should get should be based both on the number of dependents he has and the premiums he can afford on his paying capacity.

There are many things in life that the average household can live without, but life insurance should not be one of those things. The importance of this increases as the number of people in a household increases. A single person with few, if any, close relations can get by with relatively on a very little amount or perhaps no insurance at all. The same is not true for those who cannot be said for persons who have family members or other types of responsibilities.

This unique product is a way to protect your family against possible financial trouble or even ruin, depending on the circumstances. It is also a way to relieve some of the anxiety that family members may feel as they wonder how they will get by should the breadwinner in the family suddenly dies. Some forms of life insurance can even be used as a means of saving money over the long term.

There are various types of policies, and Often one type will be a far better option for a particular family or person than another might be for that same family or person. Because there are so many types of policies available, consumers need to reach out and connect with a trusted agent.

A reputable agent will normally be a state-licensed agent who carries different types of policies from different companies. There are life insurance agents, as well, who normally work for a particular insurance company and sell the products of that company. An Independent Agent can offer many different types of policies at different price points, because he or she carries more options from more sources.

Aside from choosing the correct type of policy, Consumers must also decide on the level of coverage they need. A consumer might say: “I need $10,000 worth of life insurance” but when asked to justify that amount they are at a loss to do so. Is that amount too much; is it too little? Often they simply do not know. The amount of coverage needed will vary from one family to another. It can also vary depending on where in life a person is when he or she takes out the policy. A newly married couple, young in age, will normally need less life insurance coverage than a middle-aged couple with a home mortgage and student loans that need to be paid off. Then again, a high earning young couple may need more life insurance than a middle-aged couple if the high-earning couple needs to replace one of the incomes lost through death. As you can see, coverage is dependent on many issues and aspects, some of which are hard to explore without the aid of a qualified life insurance agent.

The Best Life Insurance Options

Life insurance is not something the average person thinks about early on in life. We all think we are invincible, yet we have all heard the horror stories of a family unexpectedly dealing with the early passing of the “bread winner” of the family. Not only does he or she leave grieving family members behind, but there is also often a significant debt load, not to mention the costs of burial.

Why Buy Life Insurance?

Regardless of your age or marital status, life insurance is something to be considered immediately. What most people do not realize is that there is some type of policy available regardless of your budget. In some cases, just a few dollars a month will provide peace of mind for both you and your loved ones.

So, why do most people buy life insurance? Four of the most popular reasons are:

• Funeral costs – today, even an inexpensive funeral will cost over $5,000.

• Business partner protection – just how will your business be affected if you pass on? What type of security can you provide for your partners to help protect them if this happens?

• Securing family finances – how will your family be able to survive without your income? A well-thought out policy can help cover their costs for many years to come.

• Educational costs – the cost of college tuition continues to rise. Whether you have children or a spouse that may need to return to school, your policy can help cover these costs without affecting the daily budget of the household.

What Life Insurance Policy is Best for You?

There are three basic types of policies (please note, there are others, but these are the most popular): Term, Variable, and Whole.

• Term – this is by far the most popular type of policy, mostly because it is the cheapest. You can hardly sit down and watch your favorite TV show without seeing a commercial offering some type of term coverage to a specific age group. This coverage offers a low premium over a specific amount of years. The trade out for the lower premium is that at the end of the policy “term,” the policy is terminated with no return on investment (unless, of course, the insured passes away during the term of the policy).

• Variable – unlike term, variable policies can cover the insured for his or her entire life and provide investment potential. These policies will cost more, but will also increase in value over time. However, because this insurance is tied into investments, a market down turn could actually decrease the value of the policy.

• Whole – this is a popular type of policy with individuals that are financially secure and looking to complement their investment portfolio. This is generally considered a low-risk investment as well as providing an asset that can be borrowed against if need be.

Why Get A Life Insurance Quote Today

Life insurance is something that many of us tend to postpone. After all it is for an eventuality that is not likely to happen today or the next day. This procrastination is what gets many people and their families into trouble. Get a life insurance quote without delay.

The importance of life insurance:

In the event of your untimely demise, your family still has to pay the bills, educate the kids and pay back all the liabilities ranging from short term credit card loans to mortgages. Getting Insurance quotes is the first step in ensuring your family’s financial security.

Even when people get life insurance, many of them don’t buy adequate cover or the right type of insurance products for their needs. Getting the right policy requires some study of the available products in the market and then picking the right policies to meet your financial security goals. Getting a life insurance quote is the best way to start the analysis.

This gives you an idea about the types of products available to you and what they mean in terms of premium payments and benefits.

An overview of the options available:

There are two major categories of policies, the term insurance and whole life insurance. While term insurance has just an insurance component in most cases, whole life insurance has both insurance and savings components.

There are different types of term insurance policies. Each gives you an insurance cover for a certain number of years. Depending upon the policy, some of them give you the option to exit or renew the policy at fixed intervals.

These intervals could range from one to a number of years. Depending upon the type of risk cover they offer, the premium of these policies could increase or decrease as the years go by. Once the policy expires, all the benefits under these policies cease.

Whole life coverage on the other hand covers you for the rest of your life. These policies tend to be expensive when compared to term insurance due to two reasons. One, they involve higher risks and the risk increases with your age.

The second factor is the savings component, or cash value that they include. This cash value accrues throughout the policy period and is paid upon your death to your family.

The type of policy or policies that you should opt for depends upon your circumstances and goals. If you are confident that you will be able to pay all your debts and accumulate enough savings to support your family even after retirement, then term insurance may be enough.

If on the other hand you have dependents needing financial support throughout their lives, like children with special needs or suffering from disabilities, whole life plans could be the best for you. Most people usually have a mix of different types of insurance policies which gives them the optimal cover with minimal premium outflows.

Determining your life insurance requirements:

How much insurance cover is good enough? Again, the answer to this question depends upon your current expenditure, liabilities and anticipated future expenses and liabilities. Your life style and the kind of life that you would like to guarantee to your family also plays an important role. Here are the important factors to consider:

1. Your current monthly income and expenses and anticipated increases in the future. Your coverage should be able to generate funds that can be invested in safe assets to generate similar income levels.

2. The period that your family will need financial support. This could depend upon other earning members in the family and the likely earning members of the future.

3. Take into account your current liabilities like mortgages. Your family should be in a position to pay up the loans in case of your death.

4. Your anticipated future liabilities like the education expenses of your children.

Getting the optimal insurance cover:

The type of insurance and the options that are available to you depend on many factors. These include your age and the amount of premiums that you can afford to pay. Several other factors could also limit your choices to some extent.

The best way to arrive at the optimal mix of life insurance policies is to get a life insurance quote. Online life insurance quotes are the best because they allow you to input certain parameters and pull out the available policies for you from many different providers.

This helps you weigh your options and narrow your choices.

Whatever the method you use, don’t procrastinate. Start now by requesting a life insurance quote. Keep in mind two important things before you decide to buy any policy.

One is the reliability of the insurance company. Check out their ratings and customer service history. The second important thing is to read the terms and conditions very carefully. Life insurance is after all a long term commitment with critical implications. You certainly don’t want to go with the wrong company or pick up the wrong policy.

Cheap Life Insurance Quote Options

Nobody enjoys thinking about their own death, but then death is a definite eventuality for everyone.

Irrespective of how secure your family’s financial situation is today, it makes sense not to underestimate the importance of having sufficient insurance for the lives of the earning members of your family.

Death of a loved one is a very traumatic experience and it is really very unfair and thoughtless to add the anxieties of huge financial problems to that pain.

Make sure that your family is well protected from a financial meltdown in the event of the death of an earning member by having sufficient life insurance cover.

When it comes to life insurance, it is best to get it early. Don’t wait till the worry about mortgages and other financial burdens pile up. It is best to start the life insurance cover before the pressure of family life begins. If you have missed the bus, it is never too late to get the required insurance cover.

Life is not cheap, but fortunately cheap life insurance is available. Picking the right insurance is however not so easy.

There are many companies out there, each with many types of policies and options. Most people have a portfolio of different types of policies to obtain the right cover for their needs.

The best way to get information that will help you decide about the insurance options that you have is to get cheap life insurance quotes online.

You can then experiment with the type of policies and durations available and arrive at a blend that will give you sufficient cover while keeping the premiums manageable. Let us take a quick look at some of the more popular policies available.

Term life insurance:

This type of insurance covers the person for a fixed number of years. Many people prefer this kind of policy to obtain a large insurance cover during their working years. This makes sense because that is the time when a person’s death will have the maximum financial impact on their family.

The insurance cover ends when the term ends or the person dies, whichever comes first. The following types of term insurance policies are available:

1. Annual renewable term insurance:

The policy is valid for one year from the date of purchase and can be renewed at your option till a particular age is attained. The premium usually increases with increasing age due to the increased risk of death.

2. Renewable term insurance:

The policy is initially for a certain number of years. At the end of the term, you have the option of renewing it for another term irrespective of your health situations at that time. Since this kind of policy has an increased element of risk for the company, their premiums are usually higher than the annual version.

3. Level premium term insurance:

In this type of policy the premium is constant for the duration of the policy.

4. Decreasing term insurance:

This kind of policy is designed to provide cover to pay for a specific liability like a mortgage or a long term loan in the event of the death of the insured person. The death benefits under the policy decrease each year as the liability decreases.

5. Increasing term life insurance:

This can either be a part of the policy conditions or could be a rider added to a policy. Basically it means that in the event of the death of the person during the policy term, in addition to the policy value, the premiums paid for the policy will also be returned.

Whole life insurance:

Whole life policies cover the insured person till the end of their lives. There is no fixed end date. Unlike term insurance policies, whole life policies have an investment component or cash value which accumulates over time. Premiums are constant and distributed over a number of years. Such policies usually have provisions for loans.

Universal life insurance:

This policy is a special type of whole life insurance, which gives some flexibility regarding the insurance cover and cash value components.

As you can see there are a number of life insurance cover options, and with different companies having different type of products aimed at different needs, the choices can be astounding.

It makes great sense to get cheap life insurance quotes online which will give you a better idea about the life insurance options available to you.

How Does a Whole Life Insurance Policy Work?

It is quite common knowledge that you have a life insurance paying out when the insured person passes away. While there are different kinds of life insurance policies, a whole life insurance policy has stark differences as compared to a term or a universal policy. So, how does it work and what are the big advantages?

A whole life policy does not have a predefined term that is defined during the insurance policy. While it does provide a death benefit and a strong protection over the entire life period of the person that is insured, the policy is deemed valid only as long as the premiums are paid in full. Hence, this kind of policy serves as both an investment package as well as an insurance package. The idea of utilising such a policy comes to good effect when you accumulate a strong cash value towards the policy and this can be used as collateral to borrow or even withdraw during the insurance period.

Quite obviously, there would be a lower return rate as compared to other popular insurance policies. The obvious benefits that comes with this kind of a policy is that there would be a fixed premium and you are aware of the costs that you have to pay. On the flip side though, you are not going to be able to claim flexible premiums as supported by other insurance policies. At the same time, a big advantage offered by a whole life policy is that you have lifetime coverage and you have the option of calling it quits at any time with a surrender fee to be paid. Even though there would be a lower rate of return as opposed to other investments, one good point is that you have tax deferred cash accumulation; which gives you a higher rate.

While there are fixed term insurance policies available today, they do not cover a person for an entire life time and since they are generally long term polices, the risk coverage reduces as the cash value increase over a period of time. Hence, in the event that you pass away, the beneficiary would get a total of the policy amount and the total premium value.

A life insurance policy is definitely a great idea today. It would keep your family secure in drastic events and it could give your family that much needed financial support during a crisis. It would be a strong supplement as it would be expectedly a larger insured value. Make the right choice by choosing the right insurance policy for you and your loved ones. Life insurance is the perfect way to be prepared for the worst.

Term Life Insurance Companies, Their Ratings And More

There are countless term insurance life insurance companies. As someone who’s been a life insurance professional for more than 20 years, I can honestly say that the best term life insurance companies, the top rated term life insurance companies, and the best rated term life insurance companies are very similar. It’s not to say they are all exactly alike but they are usually similar. To compare term life insurance companies is really a matter of what’s important to prospective insurance client.

Your priority

My experience has been that what most people are concerned with when it comes to term insurance is what it will cost them.

Clearly some term life insurance companies are more highly rated by companies such as A.M. Best, Moody’s, and Standard & Poor.

Some of the factors that determine a company’s rating are:

  • Financial strength
  • Financial stability
  • Ability to pay claims
  • Claims paying expediency

If any of these factors, among the others that are used, are important to you when you compare term life insurance companies, how important are these factors to you in comparison to price?

What if one company is considered one of the best term life insurance companies in the industry but the premium cost is double that for the same amount of coverage by one that is not considered one of the best rated term life insurance companies?

What’s your priority?

Ratings

Similar to being in school, term life insurance companies and all insurance companies are rated on an A-F basis.

Seems easy to understand, right?

Did you know that and “A” rated company can be rated anywhere from A++ to A-?

Did you know that different ratings companies, including those mentioned above use different criteria to determine ratings?

Did you know that an insurance company can be rated differently by the different ratings companies?

If an insurer receives a favorable rating from one rating company and a less favorable one from another rating company, which one do you think they’re going to make sure you’re aware of?

Underwriting

Insurance companies use the term underwriting to determine who pays how much for what. Different companies have different underwriting guidelines. Its name literally means that someone in the company places a signature on the policy saying a particular person meets the company’s underwriting guidelines.

There are three main methods used for underwriting life insurance policies:

  • Fully underwritten-most common-may involve medical exam (blood/urine specimen/attending physician statement).
  • Simplified issue-less common-no medical exam-decision regarding issue usually swift
  • Guaranteed issue-anyone who applies and meets certain conditions is guaranteed that a policy will be issued-(includes accidental death insurance and graded death benefit policies)

There are also different underwriting classifications. The most common:

  • Preferred-best rates
  • Standard-most common
  • Sub-standard, also known as rated or table

Some companies subdivide the classifications. For example:

  • Super preferred
  • Ultra preferred
  • Standard plus

Table can be in the form of a number (usually 1-6) or a letter (usually A-G) – the higher the number or letter, the higher the premium.

Convertibility

Some companies allow for conversion of a term policy to a permanent policy at a later date without proving insurability.

Other companies allow for conversion but require proof of insurability.

Some companies do not offer convertibility at all.

If convertibility is offered, it is often within certain time limits.

If you’re sure you want term and nothing else, then this is not something you need to consider.

Price

The main factors that affect price:

1. Health

2. Age

3. Life style

They are numbered as such because that is generally the order of priority companies use to classify prospective clients.

Poor health can and will exclude someone regardless of age and lifestyle and no amount of money will buy insurance. On the other hand excellent health can go a long way in reducing premiums.

A person’s age is the next factor. The age is compared to mortality rates. Different companies have different charts for mortality rates.

Another way to describe mortality rate is how many years someone of their age is away from death.

Statistically speaking, insurance companies know pretty accurately how many people of a certain age will die before their next birthday.

Life style is the third factor. The most common consideration is whether someone smokes but there are others as well, such as what someone does for a living. Certain professions are more hazardous than others.

A person’s hobbies have an effect as well. Sky diving, and speed racing are often frowned upon, and may not result in denial of coverage, but could result in higher premiums.

Regardless of all factors, female rates are nearly always lower than male rates.

Fully underwritten vs. simplified issue vs. guaranteed issue

All things being equal, fully underwritten is going to result in the best priced premium. However, often times all things are not equal.

Are you sure your health is as good as you think it is or is it possible a blood/urine sample, saliva swab, or doctor’s report could reveal something you’re not aware of, or if you’re not the most ethical person, perhaps something you simply don’t want to reveal?

A fully underwritten policy takes much more into consideration when determining rating class and price than a simplified issue policy.

Depending on your point of view, that can be an advantage or a disadvantage.

Assuming you’re being honest and there’s not already information reported about you to the medical information bureau (MIB), your chances of a policy being issued as applied for are as high as 9 out of 10 if you apply for a simplified issue policy.

On the other hand, there is about a 60% chance you will not qualify for a fully underwritten policy as applied for.

A guaranteed issue policy will definitely be issued. You will know if you qualify before actually signing the application. It’s either yes or no. However because it’s guaranteed, the price is usually much higher, unless it is a conditional policy such as an accidental death policy.

Conclusion

Unless you know the ropes and/or can take the time to weigh all the factors when comparing term life insurance companies, an experienced professional can steer you the best term life insurance companies for you to consider.

Having said that, if you want to be absolutely sure that you’ll get the insurance you want, it’s best to buy a guaranteed issue policy.

If you’re pretty sure you’re in good health but don’t want to go to the trouble of a medical exam or paramedical exam (blood/urine), or you don’t want to reveal certain matters that could affect your ability to obtain insurance, you should consider a simplified issue policy.

Once you qualify for a policy, assuming no fraud is involved, the only one who can cancel the policy once it’s been issued is you. The insurance company cannot cancel you as long as the premiums are paid.

Perhaps it makes sense to apply for a guaranteed or simplified issue policy first. Once issued then shop for the best price and/or the best rated term life insurance companies.

Reasons to Buy Term Life Insurace

We all have different needs and wants in our lives, but one thing that most of us need is some type of life insurance policy. We all want to believe we are invincible and nothing will ever happen to us. And I hope nothing bad ever does, but according to Guinness World Records, (this is straight from their site) “the greatest fully authenticated age to which any human has ever lived is 122 years 164 days by Jeanne Louise Calment (France). Born on 21 February 1875 to Nicolas (1837 – 1931) and Marguerite (neé Gilles 1838 – 1924), Jeanne died at a nursing home in Arles, southern France on 4 August 1997.” This just illustrates that we are not invincible and we only get to enjoy this lifetime for a relatively short period of time so we might as well be prepared.

There are generally 3 types of life insurance: Term, Whole Life and Universal. I’m going to talk a little about term today. It’s what my wife and I personally have (as well as some whole life) and it’s what I believe the most in. Why buy life insurance? Here’s the short answer highlighting some of the main reasons of why you should consider buying life insurance:

  1. Pay the mortgage for your spouse
  2. Replace your income so your spouse can pay the monthly bills
  3. Pay any debt you may have so your spouse doesn’t have to worry about it
  4. Pay for funeral costs
  5. Finance future needs such as a child’s education or spouses retirement
  6. Continue a family business

Term Life Insurance

Today I’m going to go over term life insurance. It is what it sounds like. It is designed to last a specific period of time. At the end of that time, or when the term is up, the policy is finished. Typically at the end of the term the policy is expired and you pay no more premiums and you do not get any money back. There are variations of a term policy that allows you to get money back and renew it etc., but I’m only going to talk about a straight term. The different variations should be discussed with your agent to see what fits your needs. Term policies can be 5, 10, 15, 20, 25, or 30 years long. You get to choose the period of time you want the policy in force based on your personal situation.

Term policies are also the most affordable policies mainly because they expire at the end of the term and you get nothing back when it expires. I know that doesn’t make it sound like a smart choice, but it can be. For example:

Say you are 30 years old, are married, have a house with 20 years left on the mortgage and a 5 year old child. One option would be to get a 20 year term policy to last as long as the mortgage and long enough to get your child through college. After that you might not have a need for as much life insurance. Let’s say your mortgage is $100,000 and you want your spouse to be able to pay off the mortgage and have $20,000 a year to raise your child if something were to happen to you. $20,000 a year for 20 years plus $100,000 mortgage totals $500,000. That’s a lot of money, but that is a realistic number that your spouse would need if you didn’t make it home the next day.

A lot of people see that $500,000 and think there is no way they can afford that kind of insurance policy. You can. A healthy 30 year old non-smoking male or female should be able get a policy like this for less than $25 a month. I am willing to spend $25 a month for myself and $25 a month for my wife to make sure that we are financially taken care of is something happens to one of us. I probably spend more than $50 a month between food spoiling that I don’t cook in time or snacks at the gas station. If I can afford to do that then you better believe I will find $50 to make sure my family will be taken care of. If you are wanting to get a policy that gives you money back when it expires you will have to pay a little more, but you at the end of the term you will get back all your premiums that you paid. That’s why term policies are so attractive. A lot of coverage for a low premium.

Many people still don’t have life insurance to take care of their families. There are a variety of reasons for this. Below I’ve listed 3 of the most common excuses people give me when I talk to them. Remember, life insurance is one of many tools designed to help your family prevent a financial catastrophe.

1. I can’t afford it.

  • I already showed you it can be affordable. You don’t even need to get the exact amount you need. Just by having some insurance to make it a little easier for your family is better than nothing at all.

2. I don’t need it

  • Do you have a spouse and/or child? Do you think you may someday pass away? Then you should at least talk to an agent about options out there. Even if you’re single, someone will have to pay your funeral expenses if you pass away so you might want to look into getting some insurance as well.

3. I don’t have time to meet with an agent.

  • Really? You don’t have a half hour? How long is Chicago Fire or whatever your favorite show is? An agent will go to you and is willing to work evenings and weekends. Most of us can find a little time. Now there are even term policies that can be issued within 24 hours and don’t require a medical exam. The policies with no medical exams will save you all kinds of time.

Now, let’s go back to being invincible. We’re not. None of us are. We probably all have been to a benefit for a family that had a premature death that created not only an emotional hardship, but a financial one as well. That’s why there was a benefit in the first place, because the family didn’t have life insurance.

The bottom line, talk to an agent about life insurance. Just start the conversation. Find an agent you trust that has access to all the different options so you get what you need.

Finding Life Assurance Quotes That Fit Your Needs

Your finances and life security are two important things you shouldn’t neglect. It’s vital that you find a good, yet inexpensive life assurance that fits your needs. It all starts by searching for life assurance quotes.

Realise that there are many kinds of policies for life assurance. Know what these policies are, and then figure out which policy value is best for you before you set out to compare rates to get the cheapest quotes.

The reality is that life insurance types don’t differ much from each other; they just have slight differences that you need to pay attention to.

These differences include the duration of the policy coverage and the paying mechanisms for the premiums, among others.

It isn’t that difficult to get the intimate details about a low cost quote, but trust that you do have to do your homework in order to fully understand the range of products offered today and which one is best for you.

When you’re ready, take the time to evaluate the policy values closely. As much as you want to get the biggest one (so you get the biggest coverage and perhaps a higher return of investment), you have to factor in the other things in your life that you pay for.

These include any mortgages, loans, credit cards or other debts that you’re currently committed to and how many dependants you have right now.

All of these “little extras” are day-to-day costs that can add up to a significant sum and could very well determine how much of a budget you should allocate for your life assurance. In addition, factor in the inflation rate in the coming years; simply round up some estimates to get a good idea.

Relevant Life Assurance Quotes

When you’re searching for life assurance quotes, get in touch with companies that offer life assurance plans that are relevant to your needs. Each quote should show you exactly how much you’re going to pay and what you’ll get in return.

It pays to investigate at the right place for life assurance quotes. You can apply at insurance company websites, this is probably the fastest and easiest way to get a life policy these days.

A quick online application were you can briefly enter your details and what your budget is will do the work for you then get back to you with different policy quotes that meet your criteria.

It pays to enter your details just once at a site that will compare multiple insurance policies rather than multiple times at none comparison websites because the right site can likely find good policies that you wouldn’t have found on your own.

Try to get the life assurance quotes you need right away – because the younger you are, the better the rates of the premiums will be for you.

A Financially Secure Future With Life Insurance Quotes

Nowadays, most people know that by taking out the right life insurance coverage they can provide complete financial protection for their loved ones or family members in case of their death or future risk that may occur. So this is the main reason why buyers think about life insurance plans; moreover, increasing awareness about its importance of correct coverage is leading people to consider insurance as an essential product – not a luxury product!

This is because agents assure buyers that in accordance to their T&C as given in any plan selected via the policy buyer, death benefits are immediately provided to the beneficiary selected by the policy buyers. This means their chosen insurance company will protect insured person’s family’s future risk by providing need funds.

Therefore, a lot of individuals are thinking about taking out life coverage policies in younger days in their career, or if their company does not provide them life coverage under worker’s life insurance plan. For example, a businessman cannot have the benefit of getting low-cost life coverage plans similar to multi-national company’s employee. But, they also know the significance of providing monetary support to their loved ones or family members for their future monetary needs after cautiously estimating the current responsibilities, their financial plan for deciding an affordable insurance plan so they can buy the correct policy easily.

For getting the right life insurance plan, knowing the basics is the greatest way to start any type of learning. So similarly, if you will know basics of life insurance before buying a policy you’ll get the right plan. Because of this, financial specialists suggest insurance buyers to start their search and compare their chosen insurance company’s rate, T&C features with other insurance companies.

By requesting quotes about policies from various insurance providers one can become a smart life insurance buyer. By doing this, buyers will be empowered to contrast and compare the advantages of every scheme, according to their financial plan for an affordable premium and thus, be able to provide financial protection to their family in future.

Many times, obtaining quotes from different coverage insurers before one’s eyes is only the step that is required to calculate premiums monthly. By knowing the fixed rates for current life coverage plans, persons can decide a provisional budget and determine which plan is practical for them. By extending the budget’s limit, death benefits can be made extensive for the beneficiary; or buyers can judge exactly if by lessening the premium, they are able to pay the premiums more easily.

This handy guide will help you buy the right life insurance. If a policy buyer wants to achieve an affordable plan and avail peace of mind then policy buyer needs to follow all these aspects from above given guidelines for providing financial protection to their family, in case of insured person’s death But, keep in mind, the primary step towards availing this aim of a protected financial future risk for the loved ones or family is beginning with getting current life coverage policy quotes.