Insurance Website

Universal Life Insurance Policy - A Different Choice

davidguide — Tue, 30 Sep 2008 04:17:33 +0000

Choosing a life insurance policy isn’t an easy task. There are several policies
to choose from, each with elements that we want and need. The two most popular
kinds of life insurance policies are term life insurance policies and whole life
insurance policies.

If a term life insurance policy and a whole life insurance policy got married
and had a child, the child would be a universal life insurance policy. Universal
life insurance policies are a mix of term life insurance policies and whole life
insurance policies. Just like all children do, universal life insurance policies
have a few positive features and a few negative features of each parent, i.e.,
the term life insurance policy and the whole life insurance policy.

Like a whole life insurance policy, a universal life insurance policy offers an
investment component; however, universal life insurance policies are generally
less expensive than whole life insurance policies. This is a good thing for
those of us who want the cash value accruement of a whole life policy but can
not afford to purchase one. It should be noted, however, that earning a cash
value isn’t guaranteed. Coverage can even end if your account gets low enough.

Like a term life insurance policy, a universal life insurance policy is usually
not as expensive as a whole life insurance policy. However, even though an
accumulation of cash value isn’t guaranteed with a universal life insurance
policy, it is possible; it is not possible with a term life insurance policy. (more…)

Comparing Life & Health Insurance Quotes

davidguide — Sat, 20 Sep 2008 04:14:15 +0000

None of us knows how much time we have left on this planet. The good news is that your chances of living longer have never been better. Most people nowadays are likely to live to around 75 to 80 years of age. The bad news? You can never forecast when you’re going to be hit by a bus or succumb to a mystery virus.

So you should always make sure there is sufficient life insurance and cover against your succumbing to a serious illness or losing your livelihood that you can provide for your family.

So you should always make sure there is sufficient life insurance and cover against your succumbing to a serious illness or losing your livelihood that you can provide for your family. Life insurance won’t replace you, but it will replace your money-earning capacity.

As well as buying life cover, you can purchase critical illness policies that pay out a lump sum if you have a serious illness, such as a heart attack or cancer, and survive for a month. Some policies also pay if you die during the policy period. The same huge range of prices exists, so never, ever go for the first quote you get.

Some policies, known as permanent health insurances or income protection plans, promise to pay a monthly sum until your normal retirement age if you can’t work due to illness or injury. These policies can be expensive, especially for women because insurers think women are ill a lot more often than men.

So how much life insurance should one have?

This will depend upon the factors - your age, the number of dependents you have, your income and your outstanding debts.

People with young families need life insurance more than people in their forties and fifties whose children have left the family home. For a young family, the loss of a parent could mean that the surviving partner must try to maintain the family’s standard of living for 18 years or until the youngest child becomes independent. So a realistic level of life insurance cover is a must. For parents in their forties and fifties protection is still important, although cover does not have to be so extensive. (more…)

Insurance Basics Part V - Child Plan

davidguide — Sat, 20 Sep 2008 04:07:40 +0000

This article explains the basic concept of a child plan, as is available in the market today.

What is a Child Plan?

It has typically two components to it:

* A life insurance on the parent
* An investment vehicle that accumulates your savings on a regular basis and pays it back around the time the child reaches college (typically when he/she turns 18-21)

These two components are thus very different in what they achieve to secure the child’s future, and any analysis must keep this distinction in mind at all times.

The Insurance Component

Life insurance in the child plan ensures that the monies payable to the child for higher education are protected against untimely death of the earning parent. I cannot overplay the importance of this insurance - in fact, my observation has been that most people underinsure their life in these policies.

By mandate, the minimum life cover that you have to opt for in a child plan is

Sum Assured = Term * Annual premium / 2

Thus, if you take an 18-year plan, paying Rs. 50,000 every year, the minimum life cover is Rs. 4.5 lakh. Now, if you have no other life insurance, a little bit of thinking would reveal to you that this life cover is woefully inadequate. After all, if you can afford to save Rs. 50,000 a year towards a single plan, it is likely that your annual income is at least Rs. 5 lakh. Thus, the insurance for the child does not even cover one year of income!

Instead, one would recommend a life cover of at least 7-10 times your annual take home pay, if not more. This provides adequate security and cover for your spouse and child to financially sustain in the event of your untimely demise. (more…)

Where To Find Cheap Life Insurance

davidguide — Tue, 29 Jul 2008 05:10:10 +0000

Life is unpredictable. There are so many things that are out of our control and try as we might we can never decide the outcome. Therefore the best thing in life that we can do is to prepare ourselves for any eventuality that may occur. The most common and uncontrollable event in life is death. No one knows where and when it can happen and that is why perhaps a lot of people dread the moment. There are those however who know that death is an eventuality and not only prepare all their lives for this but do so in a structured manner. One of the most common ways one can prepare for death is by buying a life insurance policy for your self or your loved ones.
If you are the earning member of the family and if they are dependent on your earnings taking a life insurance policy will offer them the financial benefit that they would so require.

Buying a life insurance policy today is a very easy task. What is difficult is choosing the right life insurance that best suits your need and pocket.

There are several insurance agencies that offer a wide variety of insurance policies. There is life insurance that basically covers you for death. There are term life insurance policies that usually last for a specified period which is usually 10 to 25 years. This period is determined by the length time you actually pay the premium. After that the policy lapses and no insurance can be claimed for any eventuality that occurs thereafter.

You also have life insurance policies that are tied to medical insurance policies and accident policies.
The actual life insurance policies are determined and specific to the individual. (more…)

Alternatives to a Traditional Life Insurance Policy

davidguide — Tue, 29 Jul 2008 04:52:45 +0000

When it comes to buying life insurance, you can be confronted with a massive choice of plans and providers which can prove confusing if you are unsure about what is best for your needs.

First of all, you should understand how important life insurance is, the risk it protects and what it can do for your dependants. Whether or not you use the traditional lump sum life insurance, or whether you opt for an alternative, the aim is to protect your family or dependants if you are not around to do so. The proceeds from a life insurance policy can be used to protect your financial dependants from the costs of final arrangements, bills or other types of debts that you might have such as a mortgage or loan. Your individual circumstances and needs should dictate what type and level of cover is best for you and should be considered carefully. If in any doubt take advice.

The first question to ask yourself is do you need life insurance at all? If you don’t have anyone who is financially dependant upon you chances are there is no need for you to take out a policy. A common scenario that illustrates this is where the sole owner of a property has a mortgage but no financial dependants and is offered life cover to protect the mortgage loan. However, the mortgage would be settled from the sale proceeds of the property on the owners death. So, if you have no financial dependants there may be no need for life insurance protection. As always, take professional, independent advice if you are unsure. (more…)

Life Insurance Basics: Getting Started

davidguide — Mon, 28 Jul 2008 22:18:59 +0000

Let’s be honest. The topic of life insurance isn’t exciting or glamorous, but it is important. In fact, many experts consider life insurance to be the cornerstone of good financial planning.

But how do you know if you need life insurance? How much is enough? What kind of life insurance policy is best for you?

Answering these basic questions about life insurance will help to simplify the shopping process and ultimately allow you to select the best policy to secure your family’s future for years to come.

Establishing Your Needs

To clear up any misconceptions, life insurance is designed to protect your loved ones from financial loss in the event of your death. Knowing this, it’s important to establish whether you need life insurance and how much you should purchase.

According to MetLife you generally need life insurance if:

You have a spouse
You have dependent children
Relatives or elderly parents depend on your income
Your retirement funds are not enough to provide for your spouse’s future
You own a business
You have a large estate (more…)

The Different Types of Life Insurance

davidguide — Mon, 28 Jul 2008 21:57:46 +0000

Getting life insurance is essential if you want to be sure your loved ones and financial interests are covered. Although many young people do not need life insurance, the urgency of maintaining your own policy inevitably rises as you age. It’s not unusual for people to amass considerable assets heading into their 50s and 60s, and that means you simply need to account for such moneys in the event of your untimely passing. The good news is that the insurance industry has devised several ways to cover the bases with a reasonable policy, giving you many options to choose from.

Term life insurance is one of the most common, and with good reason. Unlike the broad suite of permanent life insurance types, term insurance allows you to maintain far more flexibility in your finances. If you have ever wondered what the difference is, the name says it all: term life insurance is designed to last for only a set period of time. There are a number of advantages associated with this approach, principal among them that it tends to be cheaper than its longer-lasting counterpart. You may also believe your worth or debts will change after a given period of time - again, term life insurance allows you to cap that financial relationship wherever you see fit. (more…)

How To Recognize The Best Life Insurance Quote Online?

davidguide — Mon, 28 Jul 2008 21:44:17 +0000

You can easily obtain the entire life insurance quote online plus all the added information you would need to know about the insurance company. Just search the various portals and the websites on the internet and you would come up with information about just any insurance company you want to check out. Remember to check on the payback rates of the different companies before buying an insurance policy.

Also, just the policy rate cannot determine the value of the policy. There are many other factors that need to be looked into while searching for a good insurance company. Low rate would ultimately be of no use to you if it is not able to pay you when you make a claim. Life insurance is all about providing cover for the family of the deceased and if the company from which you have taken the policy is no longer around, then what good is a discounted policy?

Life Insurance Quotes Online - Some Tips

Check the company for any history of complaints before buying you policy from them. The database of the insurance company can be accessed to search for any complaint records. By doing this you would be able to clear your mind of any scare regarding fraud. Check for the different rates and the complaint ratios with the state owned insurance departments. These reports would make it easier for you to analyze the quote being offered.

Compare the discount life insurance rates of different companies and find the best values in terms of term insurance. Combine the instant term life insurance quotes with the personal service of professionals who are nor biased towards any company. This way, you would definitely be able to find an affordable insurance policy and also save up to 50%.

The American life insurance company would provide you with all the insurance quotes of both the whole and term life insurance policies. Their financial ratings and their payment terms are also self-explanatory on the net. Their policies remain in force for a longer duration if you pay the premiums for a longer time. This is also the reason why, whole life insurance policies have a higher premium rate than the term policies. The insurance company guarantees that the benefits of the policy would be paid off to the beneficiary in case of the death of the policy holder. (more…)

Top 5 Life Insurance Myths

davidguide — Sun, 27 Jul 2008 02:36:54 +0000

Myth 1: Life Insurance Is For Everybody

There are many who believe that everyone needs life insurance. It’s just not true. Life insurance was created to help take care of the financial needs of your dependents in the event of your death. If you don’t have any dependents, there really isn’t a need to have life insurance. You can put children and retired individuals in this category. They have no one depending on their income. A small amount of life insurance can be helpful for final expenses, but it may not always be necessary.

Myth 2: A Spouse Does Not Need Life Insurance

This is most certainly not true. If you have a spouse at home and also have children, then you need life insurance protection for them. Why is that? Well, take a minute and think of the expenses you would take on in the event of your spouses death. You will have childcare expenses, housekeeping, transportation and a whole host of other expenses that you may not have even considered before now. Your spouse is really working a full-time job at home with trying to take care of everything. There death would impose a great financial hardship, and for this reason alone, they need life insurance protection. (more…)

Over Fifties Life Insurance

davidguide — Sun, 27 Jul 2008 02:16:00 +0000

Many people in the US, Canada and the UK are living longer than ever, thus planning for the future has never been more important. And if you are over 50 years old and over, a life insurance called over 50s life insurance may be what you are looking for. There are some insurance companies that offer and specialize in giving better rates for over 50s life insurance. So if you are over the age of 50 and are reasonably healthy, then getting a life insurance will not be a problem. It usually comes in the form of a term life insurance.

There are many senior citizens who may find themselves without a life insurance that would take care of their own funeral cost and protection for their love ones. It is very probable that during their younger years they do insured themselves but through work. Now that they are retired or have been laid off, they are not insured for life. It is a sad predicament especially at that age or your life.

It is a sad story of our lives but sometimes because of meagre earnings or income we are force to take a term life insurance or insuring through work. But this type of insuring yourself is not the best way to go since after you retire or got laid off your insurance ceases. Most seniors and simply those 50 years old and over know that funerals can cost thousands of dollars. You also understand that the worst thing you go do is leave these expenses to your spouse or children. (more…)