Term Life Insurance

A policy is referred to a printed document issued to the policyholder by the insurance company. The document states the terms of the whole insurance contract. The terms stated on the document include features on the premium, death benefit, cash value utilization options & various other benefits.

There are various types of policies available to benefit the consumer today. Term life insurance is such a type of insurance policy that benefits the insured in many ways.

Term insurance is the simplest form of life insurance available for the consumers today. The policy is dedicated towards paying in case death occurs during the term of the policy. The term of the policy is usually from one to 30-years. This policy does not include any other benefit provisions.

Term life Insurance policies are basically of four types:

  1. Renewable term insurance: This policy works towards eradicating your requirements to succumb to a physical examination on renewal of your policy. In this case the company consents on renewing the policy even in case of the insured person’s decline in health. However, one must be thoroughly ready to pay high premiums with each renewable during the purchase of this plan.
  2. Convertible term insurance: This policy offers an access to the buyer to change from term to permanent life insurance with no requirement of failing to a health inspection. The best part is that as soon as your conversion to a permanent plan occurs, it would not increase your premiums even if you opt for the renewal of the term plan.
  3. Level term insurance: This type of a term policy offers a permanent premium for a previously stipulated period of years. The period of time is usually 10 or 20 years and the benefit of death in this case remains the same. This policy will lock you in particular price for the tenure of the policy. One flipside of this plan is that the rate would significantly rise in case you plan to renew with other policies.
  4. Decreasing term insurance: This policy can be bought with as less as $250, 000 worth of coverage to start with. Under this policy, the death benefit would decease throughout the policy. In case you start off your policy with $250, 000 worth coverage, your benefit will be decreased by $10, 000.

Decide on buying the term policy that suits your budget & requirements. This would facilitate you to enjoy the investment you make.

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Which Type Is Right For You?

Buying a life insurance policy? Great & wise decision indeed! However, it is equally important to choose the right kind of life insurance for yourself to avail maximum benefits in future.

Here are some tips for you that would help you determine the type of policy that you must settle for.

Term Life Insurance

We would strongly recommend you to choose a term life insurance if you desire to insure yourself for a stipulated tenure of time. A term life insurance facilitates you to keep up to the length of the term policy as is required.

For instance, you have children & you are looking for a policy that would ensure that funds would be paid out for their higher education; it would be wise on your part to buy life insurance for 20-year term.

In case you desire to pay off a debt via insurance, buy a term policy for the specified time period it needs to given, without giving a second thought.

You may also consider a term life insurance policy, in case you have a limited budget & desire to buy a big amount of life insurance. Generally, this type of insurance gets paid only in case you do not continue to live during the tenure of the policy. Hence the rate per thousand of death benefit is less than required for other permanent types of life insurance. In case you remain alive when the term ends, the coverage automatically discontinues unless you decide on renewing the policy.

Here, you would not be building equity like permanent insurance as cash savings. Try choosing ‘convertible’ term policies in case you think that your financial requirements will change.

Convertible term policies offer you an access to convert permanent insurance without a medical examination in exchange for higher premiums.

Remember, that premiums are lowest when you are young & tend to increase on renewal as your age advances.

Permanent Life Insurance

You require life insurance the period you continue to live. This type of a policy would increase the savings amount for you. These would rise on a tax-deferred policy and could be a source of borrowed funds that you can utilize for many reasons.

There are several types of permanent insurance policies such as whole life insurance, universal life insurance, variable life, and variable or universal life.

The key is to determine your requirements prior to deciding on a type of insurance policy.

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How To Buy Life Insurance

Buying an individual life insurance policy includes the process of choosing a particular company, the plan, the benefits & features suited for your requirements.

You may approach a life insurance agent or a company representative who sells property & liability insurance for your home, business or auto.

Generally, discounts are not offered in a life insurance policy. However, it would be simple & wise to trust a single advisor for all your insurance needs. This can really make your financial life simpler & less complicated.

There are many insurance brokers & agents who sell individual policies. An agent is benefited by an amount of commission that you pay to the agent or broker once you actually buy a policy for yourself. The commission is also known as ‘Load’ that is built in to the premium rate.

The commission work towards as a compensation for the agent or broker who has spent time advising you, on the amount you must invest and the facilities you get on applying for one.

The agent is also available for you for any service, you require in future such as renewal of the policy, premium payments or arranging policy loans & even coordinating your financial plans with your lawyer & accountant.

You can also avail the two other ways to buy individual life insurance. You can easily buy a life insurance policy from a savings bank in Connecticut, New York and Massachusetts. You can even by a policy directly from an insurance company or from a fee-only financial advisor. This type of policy is also known as a ‘no load’ or ‘low load’ policy.

This type of policy does not offer any sort of commission to the agent; however, the company will still have changes built in to the premium, so that it covers its marketing expenses, application processing expenses & other subsequent services.

The crux is to find out an insurance company that would sell you a no-load policy. The process is not easy but Internet search engines would make it possible for you.

As per the group policy system, you can buy the life insurance policy automatically from your employer. Most multinational companies offer this facility to their employees.

You may also buy the insurance from a union or trade association or other group you belong to, such as an automobile club or a college alumni association.

There are many credit cards & lending institutions you can approach to buy life insurance.

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Group Term Life Insurance

A group term life insurance policy refers to a type of contract between an organization and the employee working in it. Under this scheme, a life insurance coverage is offered to all the employees of an organization. It can also be obtained by a group of some other category of people who apply for it.

The policy would offer coverage for the unexpected death of an employee. The benefits offered in this case are generally computed, keeping in mind, the income wages lost by the employee.

Generally, a group term life insurance policy is inexpensive when compared to other individual life insurance policies. This type of a life insurance policy costs very less to the insurer. Apart from being affordable, group term life insurance is also very easy to obtain, as one doesn’t have to go through a lot of paperwork. One also does not have to struggle a lot with qualification criteria, when purchasing a group term life insurance policy.

As far as the organizations are concerned, the process of offering this type of a life insurance policy to their employees is lot more to handle for them as well.

A company finds it much more affordable offering group term life insurance to its employees, as compared to other individual life insurance policies for each employee. There are guaranteed multiple accounts from one sale & this is considered as their incentive for offering this type of policy.

It has really become very important to offer competitive benefits and allure the best employees, in order to run the company well. Offering group term life insurance policy would prove to be a great option for both employer as well as the employee.

As an employee of an organization, if you quit the organization, you don’t have to worry about the benefits of life insurance you leave behind.

Most group term life insurance plans offer the flexibility of converting them in to individual policies under the circumstances, where an employee quits the organization.

The insurance premiums are tax-deductible, and this feature makes group term life insurance, an attractive and preferable policy.

The routine individual physical examinations that one must go through for many individual policies are exempted in the case of group term life insurance. This feature is the best one that would attract any proficient & qualified employee to your office.

Buy a group term life insurance today, as it is a great benefit to you as well as your employees.

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Smoker Insurance

A new comer in the field of insurance, the smoker life insurance policy offers a compendious life insurance to smokers.

Addiction to tobacco products can lead to major health hazards. It is also true that most people, who are looking out for an opportunity to abstain from smoking, actually end up being physically weak due to the harmful effects of cigarette they’ve been consuming all the while.

Life insurance companies came up with many opportunities and policies for non-smoker. However, there have been none that could be helpful for the smokers.

Today, with the advent of smoker life insurance policy, there seems to be a silver lining to the dark cloud.

There are many ways to look for smoker term life insurance and one of the best is websites online. Looking online for a smoker life insurance policy is the most convenient & fastest medium. You can be sure of availing the best and most affordable policy that is available under the sun via Internet.

You must make some research prior to settling for a particular policy. Most people generally limit their possibilities of availing the best policy because they look in for just a few term life insurance companies. We would suggest you to choose some websites, having a large database of term life insurance companies and deal with smokers.

Remember that you may be required to go through some nicotine examinations prior to taking a life insurance policy. Once it is confirmed that your system contains considerable amount of nicotine, the insurance company would declare you a smoker & offer you the smoker life insurance policy.

Deciding to purchase a smoker life insurance policy is wise on your part if you are a smoker. However, there are a couple of factors you need to take in to consideration prior to applying for one.

The first important thing is to be honest. Never lie on your insurance application. There are chances that you get caught during medical examinations that determine the nicotine amount in your system.

The insurance company would deny payment for the costs acquired by death as a result of smoking, in case you quit smoking long enough to pass the medical exam & resume later.

Also look for any discount possibilities your insurance company may offer you.

A smoker life insurance policy would definitely prove to be the lifeline for you in case you are a smoker. Purchase it today.

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