An Intro To Life Insurance
There are many options available for life insurance, and for most people these options can be somewhat confusing. Below is a brief review of each type and some advantages and disadvantages of each. When choosing a policy it is important to look at the larger picture so that you make a wise choice in terms of cost, coverage and benefits.
Term life insurance
These plans provide monetary benefits only if death occurs within the time period that the insurance is set for. Term insurance is generally most affordable and offers additional savings for younger policy holders.
Permanent life insurance
This policy is a more long lasting option for insurance. The premiums are higher, but there is not a term on the length of time that the policy will pay out. Another benefit to these types of policies is that some companies take the profit and reinvest it and pay dividends to the policy holders. There are no taxes on these dividends unless the holder accesses the cash value.
Whole life insurance
Another type of policy with a cash value is the whole life insurance policy. These types of policies have a set premium for the length of the policy. At policy inception and in the early life of the policy rates are rather high compared to the risk of death, but over time as the risk for death increases the policy remains low and can be more affordable than other types of policies.Universal life insuranceA universal life policy combines the benefits of a term and whole life policy. The policy provides for accumulation of cash reserves, which can be borrowed against at a later time. Premium payments and coverage amounts can be varied year to year
Variable life insurance
Variable life insurance is a policy that has some similarities to an investment plan. The profits that the company makes are reinvested into stocks and bonds, and these investments affect the cash value that the policy carries. This can provide a greater cash return on your policy, but it can also offer less as the money is tied to market performance.Single premium policy
The single premium policy is a unique type of insurance. This policy has one premium up front for the amount of the life insurance coverage. This amount, while large, does have some security behind it. It allows someone to give the policy as a gift, or add it to an estate plan. There is no risk that the policy will be canceled due to non payment, and this allows security if it is bought for someone as a gift or as protection for the family for the future.
A new type of policy that has been offered recently is a survivorship policy. This is a policy that covers two separate people under one policy. After the first person dies, the remaining person receives no benefits. There is no payout until both parties covered under the policy have passed away. This type of policy might not make much sense to people, until they consider that this policy is a great thing for estate planning for children and other family members.
Now, how to decide what you need and want out of a policy? The best thing is to take a look at your goals. For example, Do you want a policy that remains unchanged, or one that can be adjusted from time to time depending on your current life situation? Do you view insurance as something that you get leave alone, or something that can help you now as well as your survivors in the future?
Talking with a reputable insurance agent can be helpful in terms of narrowing options and addressing the complex array of needs a potential plan might fill. Many times, an agent can do a profile on you and give you exactly what you need without the unnecessary and often expensive extras.
Nicole Soltau is the President and Founder of http://CreditUnionRate.comThe Leading Credit Union DirectorySearch, Find, Join.
Reducing Soaring Insurance Claim Costs
With the soaring rise in claims to insurers from their customers, millions of pounds are being lost on a day to day basis throughout the industry in regards to personal property insurance. A new system in the UK provides insurance companies with an easy and effective method ...(related: Insurance)
Discount Insurance - Get Affordable Coverage For All Your Insurance Needs
Insurance is an important part of our lives. If you are shopping for health, auto, life or home insurance you may be shocked by the dramatically rising costs of insurance coverage. No one can afford to be without insurance coverage on his or her vehicles, home, life, or health. Discount insurance carriers are the perfect way for you to obtain the insurance coverage you require at affordable prices.Discount insurance will not ...(related: Insurance)
An Annuities Primer
Though popular among today's aging Baby Boomers and members of the Mature or "Senior" markets, annuities can be traced back to ancient Greece. The term "annuity" comes from the Greek word "annus"-or "year"-and refers to annua...(related: Insurance)
Filing Auto Insurance Claims: The Basic Steps To Take
An automobile accident can be a terrifying event for anyone, even when there are no injuries sustained. However, it is stil...(related: Insurance)
Msa Or Hsa: Can I Keep My Msa Or Do I Need To Convert It Into An Hsa?
The Medical Savings Account (MSA) is an older form of the Health Savings Account (HSA).You cannot open a new MSA. You cannot contribute additional money into your MSA.However, you can keep your MSA as long as you like. When you retire, it will automatically turn into an Individual Retirement Account (IRA) and you can withdraw money from it then for any reason (not just medical).Or, if you don't want to keep y...(related: Insurance)
Terrorism: Acts Of Terrorism: When Will Insurance Respond?
Insurance policies provide financial protection in a broad range of circumstances but each type of product specifies certain situations where the policy will not respond. These vary from one type of product to another, and can vary in detail between one insurer and another. It is important to check the details of your individual policy. However the questions and answers below seek to set out the usual approach for each of the main types of insurance.If you have specific queries on your policy you should approach your insurer or broker.Property coverWill my home be covered if it is damaged or destroyed in a terrorist attack?Yes. Household, buil...(related: Insurance)
Health Insurance, What Does It Mean?
Your health insurance policy is an agreement between you and your insurance company. The policy lists a package of medical benefits such as tests, drugs and treatment services. The insurance company agrees to cover the cost of certain benefits listed in your policy. These are called "covered services."Your health insurance policy also lists the kinds of services that are not covered by your insurance company. You have to pay for any uncovered medical care health insurance that you receive. Keep in mind that in case of health insurance a medical necessity is not the same as a medical benefit. A medical necessity is something that your doctor has decided is necessary. A medical benefit is ...(related: Insurance)
Long Term Care Insurance
Long Term Care Insurance is needed in the event that a person becomes physically disabled, terminally or chronically ill. Healthcare will pay for doctor bills, hospital bills and some prescriptions, but healthcare will not pay for nursing home care or in-home nursing care. That is where long term care insurance is a necessity.Long term care insurance is a very costly investment, but in the long run may save you and your family money and assets. The price of long term care insurance varies depending on geographical location due to local and state r...(related: Insurance)
Why Boat Insurance Is A Necessity
Boat insurance is necessary for all boat owners who live on or really value their boats. If it is something that you feel you must replace then you need to insure it. If you live on your boat it is absolutely necessary that it be insured. Who would want to lose their home?Also most boats are financed in the beginning. The lending company will insist on insurance in those cases just as they would with a house or a car. This is not unreasonable; they have as much to lose in the financial sense as you do if anything happens to the boat.Some areas are more dangerous than others for boaters. While some of those areas are famous or infamous 'the Bermuda T...(related: Insurance)
Car Insurance Quotes Online ? Why You Should Use The Internet To Find A New Insurance Company
Before the internet, you picked a neighborhood car insurance agent, and you stayed with the insurance company for years. Now car and truck drivers are finding reasons to shop online for their car insurance company. Saving hundreds off their premiums from the convenience of their home are just a couple of reasons.Lower Premium QuotesSaving money is the biggest reason drivers are turning online to find car insurance quotes. By comparing the same service from several different insurance companies on one website, drivers can quickly find low cost quotes. The internet i...(related: Insurance)
High Risk Auto Insurance - How To Lower Rates
How is your driving record lately? Do you have a large amount of speeding tickets or maybe a few car accidents on your driving record? High risk auto insurance generally means one thing for sure, higher car insurance rates. Even though high risk auto insurance rates are typically higher, there are a few things that you can do to reduce your costs now.There are other factors here as well. Insurance companies will continually deem men a greater risk than ...(related: Insurance)
Home Insurance: Premium Protection In Case Mishap Takes A Rain Check
My whinstone house my castle is, I have my own four walls.This is truth for every home owner. Your home, your castle, your prized possession, your territory - which is certainly more than four walls. You would do anything to protect it against damage and injury. Damage and injury? Is that too dark a statement? Perhaps. But it is also very probable. Mis-happenings and accidents are things that don't have an allotted time slot. Nobody can calculate their coming and neither be prepared for it. You cannot be equipped to tackle them head on but you can certainly equip your self for the repercussions. Home insurance are practically formulated for the said purpose, something that is unlikely you have not heard about. It is also unlikely that you have...(related: Insurance)
Medical Insurance Overseas
Thousands of people have work related commitments and in order to fulfill those commitments they have to travel abroad. Have you ever realized that most of the insurance company's provide only domestic medical coverage? So, whenever you are leaving your home country, do check up with your current Insurance Company whether they have Medical Insurance Overseas.The purpose of taking medical insurance is that you should be covered under all circumstances and to get the medical cover where it is required. So, "Do not postpone for tomorrow; there maybe law against it" and try to get the Medical Insurance Overseas benefits as soon as possible.Things like medicines, fees charged by the doctors, evacuation if required and all other hospitalization fees are incl...(related: Insurance)