Category Archives: Life Insurance
Life Insurance Rates
Life Insurance Rates
Life insurance at the present time is very affordable. Competition in the life insurance market together with the cost savings that life companies are making by operating on the Internet has depressed insurance rates, bringing them down to historic low levels. For a healthy non-smoker in their 20s, life insurance rates can in fact be as cheap as £5 per month!
However, there are many factors that influence the final outcome of the life insurance rates for any one individual. Everything from hereditary diseases to diet will figure and, depending upon the answers that we give to the insurance company, will see our life insurance rates climb higher or drop lower than the average rates for our age.
So, just what factors will affect the insurance rates that a life company will quote for life insurance? Here is a summary of the most important elements to consider: –
Age – The younger you are the lower your life insurance rates; the older you are the higher your insurance rates. Young people are seen overall as less of a risk to the life insurance company than older people. This is because the life company simply anticipates that young people with live longer than older people over a finite time from the current date forward. As a result, young people will contribute a higher number of monthly insurance payments before they die than will older people over the same timescale.
If you’re in your 40s or 50s and lead a very active and healthy lifestyle this age-bias may seem a little unfair. However, given that a 25 year-old may clock up more than fifty years of monthly repayments to reach the age of 75, you on the other hand would only complete twenty-five to thirty-five years worth of repayments to reach the same age. When factored in with the increasing likelihood of death the further we get to our life expectancy limit – so heightening the risk that life companies take on paying out – it is quite easy to see why life insurance rates are bumped up to compensate as we get older.
Smoking – Non-smokers have lower life insurance policy rates than do smokers. In fact, should a smoker quit and then take out life insurance they could save as much as 50% on their insurance rates. If you are thinking of quitting though it is important to check your life insurance policy, as some insurers will not reduce the rates if you quit during the life of the policy, forcing you to change insurance company if you want to benefit from non-smoker rates.
Pre-existing Health Conditions – Hereditary diseases, especially those that run through both sides of the family, may have a significant impact on rates quoted for life insurance. Also, if you are required to attend a medical and are found to be less healthy than the ‘average’ for your age, then insurance rates are likely to be more expensive.
Term Life Insurance Vs Permanent
Term Life Insurance Vs Permanent
Ever since the idea of term life insurance came to the mind of man term life insurance vs permanent has been the center of active and thought provoking debate. Term insurance is without question cheaper than permanent life insurance but when compared with the value built into the latter people have varying ideas as to which is best. What about the cash values and dividends you get from permanent policies? Do you just ignore these? How can cash values and dividends be used to offset cost? Questions worth answering aren’t they?
The ever constant innovation of life insurance policies make it more and more difficult to come to a consensus. Term life insurance vs permanent will continue to provoke the thoughts of anyone considering a life insurance purchase. Because term is simplest I will discuss that one first then I will get to the complexities of permanent life insurance and it’s varying alternatives.
The Advantages Of Term Life Insurance
What life insurance companies have attempted to do with term life insurance, and have been fairly successful at doing it, is to strip the life insurance policy of as much of the front end load as possible. They have been more successful in doing this with some policies than with others. Let us take the increasing premium term policy for example. The lower premiums in the younger years result from the fact that the applicant is less likely to die within a given period, the term period, than an older person. Term life insurance is life insurance in it’s simplest form taking into consideration mortality based on actual experience.
If we were to examine a decreasing term life insurance policy the decreasing annual premium reflects the decrease in the death benefit each year, also bearing in mind the fact that the insured is getting older each year. People like the way this is done because they believe that at no time they are paying more than for the term life insurance they actually want.
Advantages Of Whole Life Insurance
Comparing term life insurance vs permanent we notice that the whole life insurance premium is loaded up front. The life insurance company take most of the cost to issue a whole life policy in the first few years. There are clerical costs, medical costs if the policy is large enough or if they are dealing with an impaired risk, and of course agents commissions etc. If the costs are less than anticipated, and they usually are, they return that portion of unused premium. This is called a cash value. This cash value earn dividends which, if left with the company, accumulate interest. There are alternate dividend options that you may elect.
If you were to deduct the cash value of a life insurance policy plus the dividend after 20 years from the amount you paid in premiums you would see that the policy cost nothing over that period. But, hold on. We have to consider what those dollars, over and above the cost of term life insurance, would have been doing had they not been in the whole life policy. What rate of interest would be available.
The advocates of buying term when examining term life insurance vs permanent contend that the money would be earning the maximum over that 20 year period. On the other hand, the advocates for permanent life insurance assume that the extra premium would not be saved or invested. There is truth in both arguments but, because each person is different, we cannot come to a definite conclusion as to which is best. If you can afford to buy any policy you choose , do your comparisons for yourself and go with your gut.
How To Get Cheap Whole Life Insurance Quotes
How To Get Cheap Whole Life Insurance Quotes
Whole life insurance quotes the most expensive kind of policies that are on the market due the fact of cash value over time. Whole life insurance is permanent life insurance coverage that lasts as long as you live and continue to make ontime premium payments. The reason that whole life insurance quotes are so much more expensive is due to the fact that the policy will have to pay out a death benefit when you die.
Whole life insurance quotes are available online from many insurance companies that have an online presence. Online life insurance quotes let you search for the life insurance policy that best suits your needs. When you log onto each site, you can read the information regarding the whole life insurance policies available and request free quotes. You should request at least three quotes so you can compare the different rates.
When you compare the online whole life insurance quotes, the cheapest is not always the best one to choose. They are quite affordable because the payment of premiums stretches out over a longer period of time. When you are comparing the online life insurance quotes you receive, you shouldn’t just think about the amount of the monthly premium but the length of time that you have to pay the premiums.
The death benefit you choose in the whole life insurance policy will never decrease and the premiums will always stay the same. With online life insurance quotes for term insurance, the benefit and the premiums remain the same for the term, but could change dramatically when you renew the policy at an older age.
In order to determine how much of a death benefit you need with whole life insurance, you should sit back and evaluate how much money your family would need to survive without you. You have to look at the fact that the bills still need to be paid and your income will no longer be available. The sum of the death benefit is one of the factors that does determine the price of the whole life insurance quotes you receive. Other factors include your age, occupation and health.
The younger you are when you choose to get whole life insurance, the lower cost it will be to you. In your later years, you won’t have to budget for the premiums, because they will be paid up. You can also borrow against the amount of money you build up in the whole life insurance, but this part of the policy and doesn’t have any effect on the whole life insurance quotes you receive.
When comparing whole life insurance quotes there are quite a few things to think about.
Buy The Best Life Insurance With This Advice (5)
Buy The Best Life Insurance With This Advice
Are you looking to get get life insurance but you do not have enough information? Maybe you already have life insurance but there are things you do not understand about it? Either way, the following article is going to provide you with crucial life insurance information that everyone should be told about.
When purchasing a life insurance policy it is vitally important that you are completely 100% honest when answering questions about past medical history and other items raised such as drug use. An insurance claim can be declined if it is ever determined that the initial information provided was not true.
A great way to save money on life insurance is to get yourself in better shape before you buy a policy. Quitting smoking, losing weight, and lowering your blood pressure can all help to reduce your premiums. Having a physical before you apply for life insurance can make sure that there are no unpleasant surprises waiting for you.
When creating a divorce settlement that requires one parent to maintain life insurance in order to keep custody of children, create the insurance policy before signing the divorce settlement. This speeds up the settlement process and insures that any kinks in the making of the insurance policy are dealt with before the custody issues.
Whenever you are purchasing life insurance, avoid paying high commissions. These days there are several options to choose from making it possible not to pay any commissions at all. Make sure to do your research and buy a policy that does not include high commission rates.
Don’t buy life insurance if you don’t actually need it. If you don’t have dependents, or if you have dependents but also have enough assets to provide for them, you don’t need life insurance. Some agents recommend “cash-value” plans as an investment that you can tap into later, but you can usually get a better return from other investments.
When considering the purchase of life insurance think about how your life insurance needs will change over time. For example, if you do not have children your life insurance would only need to cover the costs of your funeral and maybe a small amount to cover what your partner has lost for a short time.
Even if you do not provide an income to your family, a life insurance policy might be worth considering. If you are a stay at home parent, there would be costs associated with child care and house upkeep in the event of your death. Funeral costs can also be expensive. Talk to an insurance expert to decide how much insurance is right for you.
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.
In conclusion, getting information about life insurance is important. You want to know what you are going to be committing yourself to. The above article provided you with important life insurance advice. Take this advice and use it in order to help you get the best life insurance plan possible.
Free Life Insurance Quote – Important Points To Consider
Free Life Insurance Quote – Important Points To Consider
Taking care of your loved ones with a life insurance policy is a wise decision. Once you have made the decision to purchase a life insurance policy there are other important decisions which must be made as well. Life insurance is not money to be dispensed at the time of your death only. It is also protection for your assets and for the future of your loved ones.
What purpose does life insurance serve?
Obviously life insurance should bridge the gap between the time of grief immediately following your passing and the return to normalcy. Life insurance planning should provide for this short term need. Life insurance must all safeguard the assets you have acquired during your life and pass on as many of those assets as possible to your estate. Make a list of the assets you have and the needs your family will have after your death.
How to accomplish your objectives
Once you have ascertained what it is you want your life insurance to do you must consider how these targets will be achieved. Most of the time making sure that the needs of your loved ones will be met requires more than just a large infusion of cash. A plan should be in place for the proper allocation of the cash received from life insurance policies. There are also tax ramifications which should be analyzed.
Consult a professional
First and foremost the best advice is to get as many quotes as possible and compare. It is free and you will learn more about life insurance faster. There are many laws, particularly laws concerning taxation, which may eat away at the value of your life insurance. Ways to protect your life insurance are available. Using a trust instrument to receive insurance proceeds is just one valuable tool available for protecting your life insurance from taxes. An insurance professional or an attorney can help you with planning your estate to avoid most if not all taxes on your life insurance policies.