What is Life Insurance?
Life Insurance is an insurance policy that provides an agreed amount of cover over an agreed term, so that should you die during the policy term, a lump sum is paid out. Life insurance is considered as the cornerstone of financial planning. It is a cost effective way to provide for your family after you are gone. Many of us will at some stage in our lives have the need for life insurance. Life insurance is an agreement between you and an insurer and under the terms of a life insurance contract, the insurer promises to pay a certain sum to a designated beneficiary when you die, in exchange for your premium payments.
This may give you peace of mind that, should you die during the policy term, your family would have some financial security.The most common reason for buying life insurance is to replace the income lost when you die. For example, say that you work, and that your income is used to support yourself and your family. When you die and your income stops the life insurance proceeds can be used to continue to support the family members you've left behind. If you have dependants or your income is needed to maintain your family's standard of living you may need life insurance. If you died your family could use the money to pay off some outstanding bills or perhaps towards a mortgage.
There may also be extra costs to deal with that were not there before; such as the cost of extra childcare. To decide if you need life insurance you will need to consider whether your family could cope financially without you and for how long.Some people choose to take out a joint policy with their partner. This means the policy covers both people and is paid out when either person dies (but not both). There are several kinds of policies that may be available to you, if you are healthy enough:Term Term Insurance is the basic life insurance. It provides financial protection bound by a specific time, usually between one to thirty years.
They are comparatively inexpensive and are well suited for specific purposes, like insurance protection for paying off a mortgage or paying the tuition fee for college education. Purchasing term insurance is like renting a car, a short-term solution. Monthly costs are lower, but you will not be building any equity.Permanent Permanent insurance provides long-term financial protection. These policies include both a death benefit and, in some cases, cash savings. Purchasing permanent insurance is like buying a car instead of renting.
You are taking care of long-term needs with a long-term solution. Your monthly costs may be higher than if you rent, but your payments will build equity over time. The cost of life insurance varies depending on such factors as the insured's age, health, and occupation. You may freely reprint this article provided the author's biography remains intact:.
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the www.directonlineloans.co.uk website.Life Insurance Explained
Copyright 2006 Stacey Zimmerman
Most people generally understand that life insurance is necessary.
Your life insurance policy is a method of protecting your family after your death.
However, many may not understand the various types of life insurance that are available today.
Whole Life Insurance is an insurance protection policy that will remain in effect, as long as you continue to make the premium payments.
One of the major benefits of Whole Life Insurance is that you will be able to build cash value on your policy and it will be on a tax-deferred basis.
This works by having a percentage of the premiums that you pay put into a savings that the insurance policy invests.
Any interest earned is added to this savings and it will build cash value.
If this cash value gets build up enough, you may to have to continue to pay premiums after you reach a certain age or you may be able to borrow against the cash value.
Term life insurance > Life Insurance Explained
term4sale.com, the Most Unbiased Term Life Insurance Comparison on the Web
Nicholasville, KY (ContentDesk) March 24, 2006 -- In 1998 Compulife Software, Inc. launched a web based term insurance comparison service called Term4Sale. The web site is the most objective source of rate comparisons for term life insurance.
www.term4sale.com allows comparisons of over 125 life insurance companies. Compulife is committed to including every term policy available in the market, regardless of how it is sold.
Term4Sale's website is very fast and easy to use.
The service is free to consumers who do not have to disclose who they are in order to compare insurance premiums.
For more than 23 years Compulife has provided term life insurance comparison software to insurance agents/brokers.
Agents pay Compulife an annual fee to obtain Compulife's more powerful agent software together with regular term rate updates.
The Term4Sale website uses the very same term data that...
Term life insurance > term4sale.com, the Most Unbiased Term Life Insurance Comparison on the Web
(Long Term Care Insurance) ?LTCI? You May Not Even Know What it is? But There?s a 50% Chance That You?re Going to Need it.
(ContentDesk) November 25, 2004 -- Although it's been around for more than 35 years, LTCI is perhaps the least understood product in the insurance family. Only 6% of Americans have it. Yet a full 50% of us will need long term care at some point over age 50.What exactly is long term care? It's the assistance you may need if you become unable to care for yourself because of prolonged illness or disability. LTCI provides coverage for such care, whether received in a nursing home?or in your own home. And as the American population ages, the need becomes more real.
Today, there are an estimated 35 million Americans age 65 or over. By 2030, there will be 18 million Americans over the age of 80. Baby boomers are just beginning to understand the importance of long term care.One of the myths of long term care is that Medicare will foot the bill. But Medicare pays just a very small percentage of nursing home care. And eligibility is very restrictive.Like health insurance, LTCI offers tax...
(Long Term Care Insurance) ?LTCI? You May Not Even Know What it is? But There?s a 50% Chance That You?re Going to Need it.
Term life insurance > (Long Term Care Insurance) ?LTCI? You May Not Even Know What it is? But There?s a 50% Chance That You?re Going to Need it.
Save Money By Getting A Term Life Insurance Quote Online
When deciding or choosing what life insurance is best for you, you can avoid feeling pressured into a policy by searching for a term life insurance quote online. The service is terrific and it can be a fast turnaround because you control how fast or slow the process can be. Getting a term life insurance quote online is as simple as the click of the mouse. With so many life insurance companies now operating on the Internet, all you have to do is log onto the various sites and check out the rates for term life insurance.When you check for a term life insurance quote online, you do not have to pay for the quote. This service is free and you should request quotes from at least three different companies.
This way you can do a comparison of online life insurance quotes. Each of the companies has a form that you fill in and they will respond to you with the quote- usually in less than 24 hours. Some of the required questions you will have to answer to get a term life insurance quote...
Save Money By Getting A Term Life Insurance Quote Online
Term life insurance > Save Money By Getting A Term Life Insurance Quote Online
What Short Term Health Insurance Is All About
What is short term health insurance and is it something that can be beneficial to me in any way? I had certainly heard of short term health insurance, but didn’t know what it was exactly or how it would help anyone. It is actually sort of similar to life insurance policies since it is a health insurance policy that can be adopted for a specific amount of time. A short term health insurance policy generally covers only catastrophic health problems. It also will exclude childbirth and usually all pre-existing medical conditions. They are often very hard to qualify for and usually have very strict qualifying conditions attached to the, and require long and strict procedures in applying.
So who would or should consider short term health insurance.
Obviously, with all of the restrictions, you need to be healthy. However, usually unemployed, part-time employed, students, those leaving home for...
What Short Term Health Insurance Is All About
Term life insurance > What Short Term Health Insurance Is All About
Life Insurance Beneficiaries
Naming a beneficiary for your life insurance policy can be a difficult decision to make, not to mention a tricky procedure. A person needs to research the different types of beneficiaries and the different ways to go.In naming a life insurance beneficiary, a person should always specifically name and individual or organization and state the proceeds go to the beneficiary. Multiple beneficiaries may also be another option to your life insurance policy. There is no limit to the number of beneficiaries on a life insurance policy. But, again, they need to be specifically named and the proceeds that they are to receive are to be indicated on the policy.A contingent beneficiary is the person to whom a person bequeaths their assets to in the event that their primary beneficiary also dies.
It is extremely important to ad a contingent beneficiary to your life insurance policy. If there is not one named and the primary beneficiary does die, allot of unnecessary taxes and fees will be charges...
Life Insurance Beneficiaries
Term life insurance > Life Insurance Beneficiaries
Affordable Term Life Insurance
Depending on your age, you may find that term life insurance works best for your situation. Term life insurance is ideal for younger people with families to support. In fact, term life insurance should be the most affordable option for you until you reach the age of 50, at which time you should strongly consider going with a life insurance policy that has no term limits ? such as a whole life policy.
Affordable term life insurance should replace the income that you would have provided had you lived to retirement age, at the very least. With this type of coverage, you can be sure that you meet your family's financial needs after you have passed away, in the event that you die at a younger age. Nobody likes to think that they may not live to be old ? but this does happen, and the most loving thing you can do for your family is to plan for that event in advance, and then try to prevent it from happening.
Term life insurance will help pay mortgages and other household...
Term life insurance > Affordable Term Life Insurance
term4sale.com, the Most Unbiased Term Life Insurance Comparison on the Web
Nicholasville, KY (ContentDesk) March 24, 2006 -- In 1998 Compulife Software, Inc. launched a web based term insurance comparison service called Term4Sale. The web site is the most objective source of rate comparisons for term life insurance.
www.term4sale.com allows comparisons of over 125 life insurance companies. Compulife is committed to including every term policy available in the market, regardless of how it is sold.
Term4Sale's website is very fast and easy to use.
The service is free to consumers who do not have to disclose who they are in order to compare insurance premiums.
For more than 23 years Compulife has provided term life insurance comparison software to insurance agents/brokers.
Agents pay Compulife an annual fee to obtain Compulife's more powerful agent software together with regular term rate updates.
The Term4Sale website uses the very same term data that...
Term life insurance > term4sale.com, the Most Unbiased Term Life Insurance Comparison on the Web