Category Archives: Life Insurance
Learn Useful Information About Life Insurance Here (2)
Learn Useful Information About Life Insurance Here
Life insurance is not easy to shop for. There are so many providers and so many options that it is all too easy to get lost. A little research can equip you to find your way. This article will present a few handy tips to keep you on the right track to good life insurance deals.
Riders can be detrimental to your life insurance policy. You can become quickly confused when your broker suggests riders. A good rule of thumb is to immediately discount any rider that you do not fully understand. If you cannot easily figure it out, you will not benefit from having it.
If you are applying for life insurance that will be effective for a certain number of years, look for a return of premium rider feature. This means that you will get everything you paid in premiums back if you do not die during the period of time covered by your insurance.
You may be able to save a significant amount of money on your life insurance by paying your premiums annually instead of monthly. Insurance companies often have extra fees for customers who pay every month instead of just once a year. Ask your insurer if you can switch to an annual payment.
Save money on your life insurance by paying an annual premium rather than monthly installments. Insurance companies charge a fee to allow you to spread the payments out over 12 months. Also, avoid being late on your payments to prevent your policy from being cancelled. As you get older or develop health conditions, a new life insurance policy will become much more expensive.
Compare prices from different companies before you buy a policy. Find out if the rates are compatible for the same benefits. This can help you think about what you really require in a policy, as well as help you save money upfront and over time. Make sure to compare various plans, not just one.
Many life insurance brokers and agents get paid through commission. It is therefore to their benefit to sell you the most expensive package they can with as many riders as possible. Because of this, before agreeing to a specific life insurance policy, you should get a second opinion. Make sure everything included is something that you actually need!
Before making the decision to buy your own life insurance policy, check with your employer to see if they offer a certain discount or coverage on life insurance policies. Some employers will pay for a certain amount of coverage on life insurance, or will provide a discount toward your life insurance policy.
If you have children, you should definitely consider life insurance. Perhaps you can apply for an end term insurance that will cover the first twenty years of your child’s life. If the worst should happen, your child will be able to go through college and get a good start in life thanks to the policy you subscribed to.
There is almost always a better deal out there when it comes to life insurance. It may not be easy to find or take advantage of. Learning is the key to zeroing in on the best deals. Hopefully you are a little better informed after reading this article, and your life insurance hunt will be a little more successful.
What Factors Determine Term Life Insurance Rates
What Factors Determine Term Life Insurance Rates
Term life insurance policies provide a limited coverage period, which is determined by the policy owner. Term life insurance rates are actually the cheapest form of life insurance, but there are different rates for different people. This is because once the term of the policy is up you don’t receive any payout from the policy. If you take out life insurance at a young age, you will get much better term life insurance rates than if you wait until you are older.
The total cost of your term life insurance rates can be tricky. Some term life insurance policies appear to cost more, but may, in fact, be cheaper when you look at the total cost of the term life insurance policy. For example, annual renewable policies increase your premiums every year and thus may appear to be more expensive than level term policies where the premiums never increase (although the initial premiums for a level term policy will be higher). But, in fact, level premium policies may involve higher costs over the policy’s full term, and become particularly expensive when you try to renew your policy at the end of the term. This is why you do have to compare term life insurance quotes.
Some of the factors that influence your term life insurance rates are:
· Whether or not you smoke. Tobacco users are twice as likely to die as nontobacco users while they are insured. Life insurance companies take this into account when they set their premium and cash benefits levels. You can save from 20% to 30% on premiums by quitting smoking.
· Medical Record. If you have a terminal illness, it is unlikely that any life insurance company will issue a policy. In the case of heart disease, you will get a policy but your rates will be high
· Occupation. if you work in a dangerous occupation, such as working on a ship that carries gas, this will put you into a higher bracket when it comes to getting rates for term insurance. You will have to shop around to compare term life insurance quotes if you are in this category.
Term life insurance rates vary a lot, and you can do something about your premiums by taking some decisions to become more healthy, like giving up smoking.
Life Insurance For Smart People
Life Insurance For Smart People
Life Insurance for Smart People
There are more life insurance choices than ever for consumers and here’s how to save time and money getting the best deal on buying your life insurance.
Consumers have become more savvy about buying their life insurance and have turned to the web to make it happen.
Life Insurance Medical May Not Be Necessary
Although you might still need a medical, you can usually handle most of the process on the web and over the phone. If you compare prices and policies, you will see a company’s financial worthiness, along with the security it offers.
But What Type Of Life Insurance Should I Purchase?
To make an informed decision, you need to know what the company will charge and what is its credit rating. You need to know why you are buying the life insurance and how long you need it to last. If you’re reasonably knowledgeable about term and permanent insurance, you know that term insurance is the cheapest form of life insurance and that is the type preferred by most people.
If you have a large estate, you life insurance policy may be part of an estate plan. These plans may include a last-to-die insurance policy to reduce your taxes. However most people are trying to protect their families and for that the best product is term life insurance. You should buy the amount of life insurance you need for that particular time. And as your needs increase or decrease, you should increase or decrease your purchase of life insurance.
One thing most people don’t do, and indeed, avoid doing, is realizing that they need to compare prices. If you are buying a baby stroller or TV set, do you compare prices? Of course you do; how else will you know how to compare value? But to avoid conflict with a spouse or to avoid a long drawn out process, you take the first offer that comes along.
Well that’s not the way to do it. You need to find a broker, online is best, who does the comparing of premiums for you. Then all you need to do is to take the offer from the best and cheapest company. That way, you’ll know for sure that you have the best deal on your life insurance.
Life insurance as an investment
Life insurance as an investment
Term insurance provides coverage for a pre-specified period. For example, term insurance is designed to protect a mortgage or provide income for your family in case of your death. You pay the term insurance premium each month and as long as you pay the premium your policy will stay in force. Once the contract reaches maturity (usually in 10 years) you need to renew your policy at a higher price. If you die while you’re paying the premium your estate gets a large sum of money.
In contrast, permanent or whole life insurance remains in force until you die. You pay the premium on a monthly basis for a pre-specified term, which can range between 10 to 20 years. A portion of your monthly payment pays the insurance and the life insurance company that provided the insurance invests the remainder. Eventually you don’t pay any premiums but your estate still receives a large payment upon death.
Whole life polices have been criticized because their investment returns are low. Thus you were often advised to buy life insurance protection with a term policy and invest the difference between term and whole life payments in a separate investment vehicle, such as mutual funds, stocks, or bonds. Once you have built up a large pool of assets you don’t need the insurance because the assets will provide security and stability in the event of an unexpected death.
However, there is a new, more flexible product called universal life insurance. While the life insurance company controls the savings in a whole life policy, the savings in a universal life plan are owned and controlled by the policyholder. Insurance companies offer a large variety of investment options for this savings component, including mutual funds. Thus, you have the ability to meet your life insurance needs and increase your return on investment.
The major advantage of a universal life policy is tax-advantaged growth. When you pay the policy premium, a portion of the premium pays for the insurance and a portion is invested. However, when you are ready to withdraw the money from your investment, your cost basis ( the portion not subject to tax) is higher with a universal life policy. The cost base for a universal policy is equal to the sum of all your premiums – the amount of money you have invested plus the money you have used to buy life insurance. This is very useful because increasing your cost base will ensure you pay less tax once you sell your investments within the universal life policy.
Universal life insurance provides a powerful combination of life insurance and tax-advantaged investment opportunities. Investors should realize that universal life insurance premiums work twice as hard as other premiums. They should also know that choosing the right product is an important element in the overall success of this strategy. Finally, the benefits of this strategy are magnified if you are in a higher tax bracket.
The Cheapest Online Life Insurance Quotes Can Be Found With A Specialist
The Cheapest Online Life Insurance Quotes Can Be Found With A Specialist
Taking out life insurance can bring relief to you due to knowing that if you should die then at least your loved ones wouldn’t have to worry about their immediate financial situation. However life insurance can be an expensive addition to an already over stretched budget but it is something which should be given some serious consideration. The good news is that you can get the cover much cheaper than you think by getting online life insurance quotes from an expert in life insurance – the specialist life insurance quote broker.
When considering life insurance you first have to decide what type of cover you are going to get your quotes for and how much protection you will need to take to give your loved ones and yourself peace of mind. When it comes to deciding how much cover to take then there are several factors in your life that can help you make the decision. The first is your dependant children and here you have to take into account college and education fees or the need for child care. Secondly, your mortgage and essential outgoings. The easiest way to get a rough figure with which to work from is to take your annual income and multiply this by 10, you then have a base on which to work. Do remember to take inflation into consideration.
When it comes to choosing which type of life insurance then you have term life insurance, whole life insurance and decreasing term insurance which are three of the most popular choices to choose from when getting online quotes. There are many more types of life cover available too.
Decreasing term life assurance will usually run alongside a mortgage and decrease in value as does the mortgage. Whole life insurance will pay out a guaranteed sum of money for as long as you pay the insurance premiums. And the cheapest is term life insurance for which you decide how much you wish to be covered for and the length of time you wish to take the insurance. With the latter, if you should die within this time then your family get a lump sum payout. However if you are still alive when the policy ends, then there is no payout.
Online life insurance quotes are the cheapest way of securing life insurance without it costing the earth and is valuable when it comes to giving you peace of mind for your family and the cheapest quotes can be found by letting a specialist shop around for the best deals on your behalf.