| |
| |
|
Insurance Information |
|
|
|
Life Insurance Basics
One of the most important things you can do as parents is to ensure the financial welfare of your children in the event of your death. Life insurance is the best way to be rest assured that your children will be taken care of if you die. Although we never like to think of that kind of thing happening, but it does. What is Life Insurance Life insurance is a policy that you can enter with your insurance company, which promises a certain amount to your beneficiary(ies) in the event of your death. Usually, a spouse will name the other spouse as well as their children as beneficiaries of the policy. As part of the agreement with life insurance, your insurance policy will be a monetary value, that you will in return, pay a monthly premium for. Premiums usually depend on your age, gender, occupation, medical history and other factors. There are other types of life insurance that may provide benefits for you and for your family while you are still living. These policies can accrue a cash value on a tax-deferred basis and can be used for future needs such as retirement or your child's education. Do I Need Life Insurance Earning an income allows you and your family to do many things. It pays for your mortgage, buys cars, food, clothing, vacations and many other luxuries that you and your family enjoy. However, certain situations can cause you to lose your income, and those who depend on you also depend on your income. If any of the following statements about you and your family are true, then it is probably a good idea for you to consider life insurance. 1) You are married and have a spouse. 2) You have children who are dependent on you. 3) You have a parent or relative who is aging, or disable and depends on you. 4) You have a loved one in your life that you wish to provide for. 5) Your 401K retirement plan, pension and savings aren't enough to insure your loved one's future. What Are My Life Insurance Options There are four basic types of life insurance that can meet you and your family's needs: Term Life Insurance This is the least expensive type of life insurance coverage, and at least at the beginning, the simplest. Term life insurance policies do not accrue cash value, and are fixed over an extended period of time - usually one to 0 years, and they can be renewed. This life insurance policy pays the beneficiary of your policy a fixed amount in the even that you die in the period of time that your policy includes. The premiums of term life insurance are lowest when you are young and increase as you get older Whole Life Insurance This type of life insurance is similar to term life insurance, as well as provides cash value. Over time, whole life insurance generally builds up a cash value on a tax-deferred basis, and some even pay it's policy holders a dividend. This type of life insurance is popular, doe to the cash value that is accessible to you or your beneficiaries before you die. Used to supplement retirement funds, or to pay for your child's education, whole life insurance should be used for protection, rather than for accumulation. Universal Life Insurance This type of life insurance is a flexible kind of plan. These policies accrue interest and allow the owner to adjust the death benefits and premiums to their current life situation. You decide the amount of premium for universal life insurance, and of you skip a payment, this will be deducted from your death benefit. Universal life insurance stays in effect as long as your cash value can cover the costs of the policy. These rates are subject to change, but they can never fall below the minimum rate that is guaranteed when you sign up for universal life insurance. Variable Life Insurance This type of life insurance is designed for people who want to tie the performance of their life insurance policy to that of the financial market. The policy holder gets to decide how the money should be invested, and your cash value has the opportunity to grow more rapidly. However, if the market is poor, your life insurance policy's death benefit will be poor. As with whole life insurance and universal life insurance, you may withdraw against the cash value. Be reminded that withdrawals of this life insurance policy will be deducted from the cash value. How Can I Save Money With Life Insurance Below you will find some suggestions on ways to save money while purchasing the life insurance policy that is right for you. 1) If you don't need life insurance, don't buy it. Don't buy more insurance that you actually need in order to provide financial security for your family. 2) Shop around for competitively-priced life insurance policies while you are healthy. Don't smoke, or do anything that might increase your rates. Take care of yourself by exercising regularly and maintaining a moderate and healthy weight. 3) If you purchase a term life insurance policy, look for guaranteed and renewable policies. That way you won't have to periodically continue to shop around for those life insurance policies. 4) You should only buy optional forms of coverage such as riders only if necessary. 5) Shop around and compare life insurance policy rates and coverage. There are thousands of life insurance companies to choose from. It is advised that you get at least three separate quotations of life insurance, and then decide which is the best for you. Brian M. Gardner is the Founder of Financial-Articles.com - An Online Money Making Resource. Learn how to make money and acquire wealth by investing in stocks and mutual funds, as well as how to be successful in sales, marketing and advertising. Visit Brian's website at http://www.financial-articles.com.
MORE RESOURCES:
Google News |
|
|
|
RELATED ARTICLES
Health Insurance Options for Entrepreneurs One of the most important benefits employed people enjoy is health insurance coverage. It is also the single most costly expense for self-employed entrepreneurs. Internet Insurance Leads It is a fact that more and more people everyday use the Internet to get insurance coverage. The number of online customers is massive compared to "traditional" business, and it is increasing day after day. Eleven Money-Saving Auto Insurance Tips for Senior Drivers Following a few simple tips and taking these measures will ensure that you are getting the lowest rates possible on your auto insurance policy.1. What is Home Insurance? Home Insurance is designed to provide you with financial protection against any damage and possible risks that your property and possessions within it may face against unforeseen events and circumstances.Home insurance is commonly taken to describe both buildings insurance, which insures the fabric of your property, and contents insurance, which covers your belongings. Family Health Insurance Plans - How to Find The Best Provider Online Family health insurance plans typically need to offer more coverage than plans for an individual. Regular check-ups and occasional emergencies need to be covered, especially if you have children. The Need For Life Insurance A person needs to reexamine their life insurance needs every few years because as our life events change so do our needs.When starting a family, a person needs to consider starting a life insurance policy. Are You Sure That Heirloom Oriental Rug From Your Aunt Hilda Is Really Insured? Gone are the days of the cinder block and wood plank bookcases. You've come along way from that old reliable jut rug and CDs (or in some cases, actual vinyl albums) stored in milk crates. California Catering Truck Insurance Catering truck insuranceNot many agents/brokers write catering truck insurance as they don't have a contract with companies that will write that type of coverage. There's a certain type of knowledge needed to write the risk with catering truck insurance properly. What Is Term Life Insurance? There are two different types of life insurance, term life insurance and permanent life insurance. Term life insurance is the easier of the two plans. Finding a Discount Car Insurance Broker Discount car insurance brokerTimes past finding a discount insurance broker was important and offered you access to many different outlets for your needs. Today that's no longer the case as finding a discount insurance broker doesn't really provide you with any benefits or advantages as it once did. Discount Life Insurance Will Give You The Best Protection You Need There is always a chance that there is a better deal somewhere else, no matter what you are buying. That is why you should research and find discount life insurance. Apply Online for Temporary Health Insurance There are times when you'll find yourself temporarily without health insurance. You may be between jobs, just starting a new job or a student who is no longer covered on your parent's health insurance. Health Insurance Plans and their Differences Health insurance plans have changed dramatically over the past ten years, and American's currently have several different options to choose from- including HMO's, PPO's, fee-for-service plans, MSA's and major medical. There are two main categories of health insurance plans that each of these policies is classified as; managed care plans and indemnity care plans. How Much Renters Insurance Do I Need? When obtaining renter's insurance it is important to put serious consideration into how much insurance you really need to buy. Some things you may want to consider when making this decision include whether or not you can afford to re-purchase everything in your home in the event that disaster strikes. Private Health Insurance: A Sense of Dissatisfaction The three C's, customization, consumerization and customer-satisfaction, seem to be at the core of the business mantra for every service provider. The health insurance provider industry is no exception to this rule. Accident Insurance Claim Personal Injury Insights There's nothing that has a greater impact on evaluating a personal injury insurance claim than the damage done to your body, the medical bills that are a direct result of that injury and the "pain and suffering" you were forced to deal with.Besides botching up your body (and sometimes your love life) what else does the injury mean to you? It means a ton of financial expense's, including repairing your motor vehicle, lost wages, a shock to your life style, a tremendous inconvenience and short or long periods of pain and discomfort - - all of it a direct result of your injuries. Choosing Affordable Health Insurance For Children In most cases, private health insurance comes through a person's employer, who picks up the majority of the cost of premiums. However, today many people, who are either self-employed or who work for a company that doesn't offer health insurance, find it necessary to obtain quality affordable health insurance for children. Understanding How Your Credit History May Affect Your Car Insurance Coverage Many personal auto insurance companies consider your credit information when determining how much premium to charge for your insurance. So if you are calling around for new insurance, keep in mind that many insurers are looking at your credit history. Everything You Need to Know About Life Insurance Life insurance is a type of protection that can be bought and insures the buyer in the event of death. The risk that is assumed by the insurer is the risk of death of the insured. Finding Health Insurance for Self-Employed Individuals: A Guide For the Freelance Newbie With a rise in those looking to venture out on their own in the business world, health insurance for self-employed workers is a priority. At first glance, obtaining health insurance for self-employed individuals may seem difficult and quite overwhelming.
|
| home | site map | contact | Partners |
| © 2006 - insurance-information.cliczoom.com |
