Posts tagged ‘insurance policy’

Good Life Insurance Policy How and Why

Hows and Whys of a Good Life Insurance Policy

Why should I protect myself with an insurance policy?

The first reason why a term or whole life insurance policy is necessary is because many people are not rich but live from paycheck to paycheck. They are usually paid workers who have minimal income or the maximum type from working alone! Insurance provides added protection from financial ruin after a death or a major catastrophe has occurred. Families, as well as, individuals need the equivalent of financial support when the bottom falls out of their world and collapses in their laps! Beginning with what is affordable and makes the purchaser the most relaxed, should be the type of coverage to acquire. Insurance is sold under the agreement to take care of the inescapable issues surrounding circumstances that linger on after the “main bread-winner” has deceased or been accidentally removed from the family or estate. It’s a good idea to get started by looking for coverage quotes that are affordable, especially while being capable of maintaining a healthy lifestyle. Young adults and their children should always consider obtaining valuable protection to weather the storms that come.

Some reasons to buy life insurance…

There are no warning signs of the potential hemorrhaging when bad things happen. If every type of family that exists can have the cushion of insurance in play before floods, earthquakes, hurricanes, tornadoes and financial leakages from loss of a job or paycheck, then living can re-group itself faster! Taking the initial time to search online or choose a professional who understands the market, can be one of the main reasons why a family survives and another falls down, just before recovering again. A life insurance policy is simple to find online, but many don’t plan far enough into the future to think they may need this type of income stimulus package. Insurance is not about “keeping up with the Jones,” it’s about seeing the fork in the road and the potential for unnecessary disaster and collapsing resources! It is a matter of financial loyalty and respect that makes the average person focus on having the best things in living and finding out how to keep them intact for years to come.

Can life insurance build-up financial confidence?

Life insurance is structured around the need to build capital and accumulated wealth. Other types of coverage are mainly sold for “protection” after changes occur. There are two main policies by companies that provide insurance. One term policy sold is “pure coverage” and the other is called “whole life.” The main objective of anyone buying it is getting as much of it as needed. Get what you need when you can; and are able to keep buying it! Insurance policy, term or other, in the right amount is a privilege that comes around every year for every type of person and their estates. Whether a business-owner is involved in the motivation to receive protective policies that will build-up or cover your loved ones in due time, is not a mistake. Avoiding accidents are great reasons to become a better driver, a non-smoker, or an individual who takes their daily vitamins and exercises regularly. Developing life patterns to cushion your fall from the grace of high-life standards, takes some thought, planning, and wealth accumulation practices. Investing in on-going resources that allow you the permission to make the provision for the future will protect every potential member within the family tree.

Purchasing coverage and the associated death benefits help with the basic expenses at low premiums or can pay enough to even exceed the earnings, all medical bills, funeral costs, cover or even paying off loans depending on the level and options you select. You can get a term policy for a fixed period or a permanent policy for as long as you keep paying. You need to decide the rate from plans available from each company you look at. Choose a life insurance policy and term and coverage in the amount you feel you need based on your goals and resources.

Whole Life Insurance Frequently Asked Questions

There are varieties of life insurance products available to meet consumer needs. One type is whole life insurance, which is essentially life insurance for the duration of a person’s life, as long as the policy premiums are kept current. Obtaining accurate quotes for whole life insurance is simple. Unfortunately, however, the application process can be a little time consuming, but well worth the effort.

Why Whole Life Insurance

There are various life insurance policies available to people based upon their personal needs. Whole life insurance is a policy that provides coverage for a person’s entire life. This means that as long as they have the policy they do not have to worry about passing medical exams or re-applying for the plan because it is maintained for life. In addition, whole life insurance accumulates a cash value, which is the amount that would be refunded to the policy owner if the policy were canceled. The cash value is the amount paid beyond the premium that accumulates like a savings account.

How to Get Quotes for Whole Life Insurance

Obtaining quotes for whole life insurance is as simple as finding a life insurance broker and letting them know that you would like a quote. In addition, consumers can contact life insurance companies and request quotes directly. For the most part, the majority of insurance companies have rates posted on their websites as well. There are a series of questions to ask that help determine the most accurate rates. Consumers will most likely need to provide their zip code, birth date and answer questions relating to tobacco use. Additionally, knowing current height and weight can be beneficial for the most accurate quotes.

What Impacts Whole Life Insurance Rates

Whole life insurance premium rates are impacted by location, or more specifically, where the applicant lives. In addition, age is a factor that affects premiums. There are typically three ratings or categories that applicants are evaluated for: preferred plus, preferred and standard. Preferred plus is very hard to obtain and as a result, has the most advantageous rates. Preferred is the next step away and a little more expensive than preferred plus. Finally, standard is the most costly option. These ratings are based on several factors including height, weight and current health status.

How to Apply for a Whole Life Policy

When a consumer decides to purchase a whole life policy, they must first apply for the plan. In most cases, there is some extensive paperwork involved. Fortunately, life insurance brokers can aid in the completion of the paperwork. Alternatively, if they prefer, consumers can fill out the required paperwork on their own. Once the application is submitted, an underwriter evaluates the information. In some case, a paramedical exam is ordered, depending on the plan. Finally, once the results are recorded, if the underwriter approves the plan, the applicant is notified and policy is placed in force.

Determining the best life insurance product for any consumer requires knowledge about what each product offers. Unfortunately, whole life insurance can be expensive, however, as the name suggests, it provides coverage for an insured person’s entire life. In addition, a cash value is accumulated and returned if the policy is canceled. Further, it can be borrowed and applied to payments on the policy.

Term Life Insurance Policy: Broken Down

A term life insurance policy can seem quite complex to many individuals, but with a little explanation these plans can actually be quite easy to comprehend. It helps to understand the basic principle of a term life insurance policy, which is that it is temporary insurance purchased for a specified length of time. The rates for a term life insurance policy are generally lower than permanent life insurance policies. There are a few provisional options to choose from; renewable, convertible, level and decreasing.

Temporary Life Insurance

Term life insurance policies were designed as temporary life insurance plans to help keep premiums, or monthly payments, lower for those who cannot afford whole life insurance; which is much more expensive. Term life certainly aids those who have a monthly budget and who do not have a lot of extra money to put into a life insurance plan. With this in mind, term life insurance is not for a person’s whole life, you pay the premium for the time frame determined and if you do not pass away during that time, the plan is void.

Termed Life Insurance

Term life insurance is purchased for a selected and predetermined amount of time, not for whole life, and therefore is a cheaper option for individuals to buy life insurance. Term life insurance can be purchased for as little as one year and can be bought for a maximum of up to 30 years. This option allows an individual to evaluate their specific and immediate need for coverage, for example a term life insurance plan may be purchased for a certain amount while the insured is paying their mortgage.

Low Rates and Maximum Rate

Term life insurance plans are known for having much less expensive rates than whole life or permanent insurance plans. The rates for a term life insurance policy can fluctuate so it is important to understand at the time when purchasing a term life insurance policy that a maximum rate is preset to an amount that the insurance company agrees that your rate will never exceed. Make sure that when purchasing a term life policy that the maximum rate established is a rate that would be affordable should the event occur that the rates increase to the maximum amount.

Types of Term Insurance

There are a few options, also called riders that can be added to a term life insurance policy. Renewable term life insurance allows the insured to renew the policy at the end of the term without having to prove good health. Convertible term insurance provides the insured with an option to convert the temporary plan to a permanent plan. Level term life insurance gives the insured peace of mind that the premium, or monthly payment, will never fluctuate. And decreasing term life insurance decreases the death benefit over the course of the term of the insurance.

Term life insurance is simple to understand once the concept is broken down. Basically, term life insurance is a policy that protects an insured for a specified amount of time, always temporary. In addition the coverage is provided when it is needed and for a low rate. Finally, there are options available that can be added to the policy to provide optimal coverage and even more precautionary protection allowing the insured to rest easy concerning the maturity of the policy.