Life Insurance Policies - Get the Quick and Dirty Crash Course to Life Insurance
What is a life insurance policy?
A life insurance policy is a contract between an insurance company and a policy holder (insured) to pay out an agreed amount to the insured’s beneficiaries (usually family) upon the death of the policy holder. The policy holder agrees to pay premiums as calculated by the insurance company.
Life insurance policies are purchased to protect the surviving family members from the loss of income that would occur as a result of the death of a family member.
There are two types of life insurance policies, permanent and term.
Permanent Insurance Policy:
Permanent policies are more expensive and complicated than the term policy. Permanent insurance remains in effect for the policy holder’s lifetime (as long as the premiums are paid as agreed by the policy terms and conditions). In addition to paying out death benefits, it provides investment opportunities. A permanent policy’s value increases over time and the insured may borrow against the accrued value of the policy. This increase in cash value is tax deferred until the money is drawn.
There are three types of Permanent life insurance policies.
Whole: Whole life policies are traditional permanent insurance that accrues cash value over time. Most whole life insurance policies pay dividends to the policy holder.
Universal: Universal life insurance polices are more flexible than the other permanent policies. It allows the policy holder to change the amount of insurance and premiums as financial needs change (subject to insurance company underwriting terms and conditions).
Variable: With variable life Insurance policies, the death benefit and the value of the policy are based upon the performance of a separate investment fund. Most policies guarantee that the death payout will not fall below a certain minimum, however the cash value of the policy is not usually guaranteed. There is more risk involved with Variable policies.
Term Insurance Policy:
Term is the most basic and least expensive form of life insurance policy. The term policy remains in effect for a designated period of time. The term can be anywhere from 1 to 30 years. There is a set premium and a set death benefit pay out amount. If the policy expires prior to the death of the insured, the insured may either renew the policy for a specified term or let it expire.
With term policies there is the option to convert to a permanent policy. Sometimes an insured may not be able to afford the more expensive permanent life policy initially. As they become more established and their career and their financial situation improve, they may opt to upgrade their term to a permanent life insurance policy . The upgrade does not require the policy holder to undergo an additional physical examination.
The underwriting guidelines for the various insurance companies differ, so shop around and do your homework before purchasing a life insurance policy.
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Insurance is the concept of paying a certain amount every month in anticipation of a future difficulty like illness, personal injury, accident or death. Insurance has become an absolute necessity these days. With so many insurance companies providing so many different kinds of Insurance Policies and plans, policies are becoming more affordable for all kinds of people. Some kinds of insurance are mandatory, while others are optional.
Insurance can be meant for anything: life insurance, automobile insurance, health insurance, home insurance, property insurance, disability insurance, travel insurance, pet insurance, cycle insurance, recreational vehicle insurance, sports insurance and so on. There can be special policies like flood insurance, ski insurance, student’s content insurance, long-term care insurance, flight, kidnap, extended warranty and others.
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August 7th, 2008
Tips For Saving Money On Car Insurance
Car insurance is required by all licensed drivers but many of them don�t know how to find the best rates available. Being complacent and purchasing car insurance without carefully investigating your options or maintaining the same car insurance for the remainder of your life could mean that you are paying too much for your car insurance. Comparison shopping, ensuring that you are receiving all the discounts you qualify for and maintaining a clean driving record are just a few of the money saving tips that can save you a fortune on car insurance.
Comparison shopping for car insurance, even after you are already insured, cannot be underestimated. It is critical that you investigate all of your options before choosing an insurance provider to ensure that you are getting the best possible rate on your car insurance. There are so many factors considered in car insurance policies such as where you live, your driving record, your age and the type of car you drive just to name a few. With all of these factors to consider, it is very possible that you will find that there is a car insurance provider who will offer you a considerably lower rate than other providers.
Even after you have secured insurance for your car, it is wise to periodically check the rates that other providers will offer you. Car insurance as well as your circumstances are perpetually changing and you may find that the provider who is willing to offer you the best car insurance rate varies periodically. Many car insurance providers offer a host of discounts to their clients who qualify for these discounts. These discounts can relate to your driving record, safety features of your car, your age or other factors.
These discounts can result in a tremendous cost savings on your car insurance policy but while many insurance providers offer these discounts, they don�t always advertise them. This means that you may have to do research to determine what type of discounts you may qualify to receive. Carefully, review your car insurance policy to determine which discounts you are already receiving and then contact your car insurance provider to inquire about other discounts that may be available. For example if your driving record is devoid of accidents or tickets, you may qualify for a good driver discount.
Also, if your car has certain safety features such as daytime running lights, you may also qualify for car insurance discounts. Your age can also qualify you for certain car insurance discounts. Some insurance providers also offer discounts to those who insure their house with the same company as they insure their car. Taking advantage of this type of discount can save you money on both your car and home insurance. Being aware of the discounts that are available and ensuring that you are receiving these discounts, can save you a great deal of money on your car insurance.
Finally, maintaining a clean driving record is very important to receiving the best available car insurance rate. While it is true that each car insurance provider is unique in the factors that contribute to lower rates, the one factor that is consistent among all providers of car insurance is that a clean driving record is critical to your rate. Although accidents are sometimes unavoidable, it is imperative that you adhere to all traffic regulations and that you drive safely at all times. This will reduce the number of traffic violations that you incur as well as the number of accidents that you cause. Following these tips will help you to maintain a clean driving record that will keep the cost of your car insurance low.
Many drivers lament paying their monthly car insurance bill because they feel as though the insurance isn�t necessary. Although car insurance is a financial burden that seems superfluous, it does pay off if you are ever in a serious car accident that has significant financial ramifications. For this reason, you should never consider allowing your car insurance to lapse and it is recommended that you search diligently to find the best available rate on your car insurance.
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Insurance is the concept of paying a certain amount every month in anticipation of a future difficulty like illness, personal injury, accident or death. Insurance has become an absolute necessity these days. With so many insurance companies providing so many different kinds of Insurance Policies and plans, policies are becoming more affordable for all kinds of people. Some kinds of insurance are mandatory, while others are optional.
Insurance can be meant for anything: life insurance, automobile insurance, health insurance, home insurance, property insurance, disability insurance, travel insurance, pet insurance, cycle insurance, recreational vehicle insurance, sports insurance and so on. There can be special policies like flood insurance, ski insurance, student’s content insurance, long-term care insurance, flight, kidnap, extended warranty and others.
Tags: quick quotes, home insurance, insurance rates, health insurance, car incurance, quotes, rates
August 7th, 2008