Posts Tagged ‘Basic’

Know About The Basic Difference Between Permanent Life Insurance And Term Life Insurance Policy.

Article by David Livingston









Both of them provide death benefit on the death of the insured, yet there is a basic difference between whole or universal life insurance and term life insurance policy. Let us examine that:

The whole or universal life insurance policies are valid for the life of the insured. However, term life realizes that nobody needs lifelong insurance coverage and so it is sold for a fixed term only.

The premium you pay in a term life does not buy you anything other than death benefit; but in a permanent life insurance policy, a part of the premium is diverted to a separate account to develop the cash value.

Consequently, the term life cannot offer you any investment opportunity, but since the whole amount is utilized to develop the face amount, you can have a large death benefit at a low rate. Contrarily, the permanent life insurance policies provide financial benefits in your lifetime only; but the death benefit they offer is comparatively much less.

Choosing the right kind of policy becomes easier if we have a clear idea about such differences. Being aware about the working of each policy is also important. It is sad that in these days of consumer awareness, a life insurance policy is bought rather blindly. Indeed, people generally buy whatever their agent or broker recommends and they recommend what suits them most. Consequently, you are often laden with least suitable policy.

If you actually care for your family, you should put a little more effort in selecting the right kind of life insurance policy. Many online articles provide detailed information about different life insurance policies; read them. Quotes too can provide quite a lot of information, if you care to study them carefully. Of course, the process of policy purchase always starts with receiving quotes. Always receive life insurance quote on line; that is the easiest way to do that.

Along with choosing the right kind of policy, choosing the right insurer is important too. Make sure that the carrier is financially healthy and its claim payment record is impeccable too. You can check all these through credit rating companies. Do not neglect it or if you die premature, your family will have to run from pillar to post to get what is their due. Apart from, you too must do your part well. Negligence on your part may also result in non-payment or at least delayed payment of claims.

Now, let us go back to where we started. Choosing the right kind of policy is essential. You may find it surprising; experts today recommend only term life for insurance purposes. They say that the whole or universal life is suitable for only those, who do not have any kind of financial discipline. You see, a term life is far cheaper than these permanent policies; if you only put in the difference in their rates in suitable investment fund, you will get a much better return.

What is more, should you indeed die while a term life is still in force, your beneficiary will get both the death benefit and the investment amount. In case of whole or universal life policy, the insurers will pay only the death benefit. Indeed, with death or endowment, the insurance companies always keep cash value built up using your money. That is why, if insurance is your main aim, go online to receive cheap term life insurance quotes and start the process of purchase.

However, how cheap the term life insurance quotes will be, partially depends on you too. If you are already on the wrong side of fifty, you can never get the coverage at cheap rate. To receive cheap term life insurance quotes you have to be young and healthy with the right body mass index. Moreover, you must not use tobacco in any form; your and your family’s medical history should also be all right; most of all, you must apply for a traditional term life insurance policy. No medical term life insurance may be convenient, but it is also rather expensive.

You must realize the policy prices depend mainly on the insurability of the person and the insurability depends on lot of factors such as your age, gender, tobacco use, whether or not you are suffering from certain diseases as well as hereditary factors. Although the insurers can have a partial picture about your insurability through medical banks and other agency reports, without the medical exam, they cannot come to any definite conclusion. That is why such partially underwritten policies are rather expensive. Yes, they provide instant coverage and there is not much hassle involved in the policy purchase. However, if rates are an issue, you must avoid them at any cost.



About the Author

Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on term life insurance

The Basic Facts About Universal Life Insurance Policy

Article by Elissa Joyce









Known for its flexibility and cash value, a universal life insurance policy has been introduced in the life insurance market sometime in the 1980s. It is also referred as adjustable insurance policy and quite different from whole insurance policy. A universal insurance is the best investment you can give yourself and your family.

The Benefits of Universal Life Insurance:

Aside from its flexibility, a insurance has a savings feature that is tax-deferred. The company that provides you with a universal insurance invests a part of the premiums you paid in mortgages, money market funds or bonds. The tax-deferred income generated from this investment is credited to your insurance policy.

Every insurance policy has guaranteed minimum interest rates applied to it, usually about 4 percent. This means your insurance company guarantees a minimum return on your premium that it invested even if the investment did not perform well. If the investment performed well, the return in the form of interest rate on the accumulated cash values will increase. There are permanent life insurance quotes available online that you can use to compare different insurance products.

Meanwhile, there are two death benefit options that you can choose from. One option allows the payment of death benefit from the cash value of the policy which make this the cheapest among the two options. The second option provides payment of the amount stated in your policy, in addition to accumulated cash value.

Many insurance companies are offering a no-lapse life insurance guarantee provided that the minimum designated premium is paid. This gives you a policy that is in force and valid up to age 100. However, do not expect to accumulate significant cash values if you are only paying the guaranteed minimum premium.

An Overview of Universal Life Insurance Premiums:

Do not confused insurance with whole life. These are two types of permanent life insurance with one having different features from the other. The good thing is, you can access permanent life insurance quotes for these two policies.

With whole life insurance, you are required to pay billed premiums on or before the end of the stated grace period. Failure to do so would put you at risk of a policy lapse. Meanwhile, policy holders of universal insurance can pay the billed premiums, more or less than the billed premiums or no premium. They also have the option to pay the premium at any other time and the flexibility on the amount to be paid.

The universal insurance is a flexible and adjustable version of the whole insurance. Gone are the days when an insurance policy is inflexible when it comes to cash value, death benefit and premiums. However, despite its flexibility, there are still rules covering the premium payments for universal insurance. Although you may choose the no premium scheme, any payment that you will make should be no less than the minimum amount in order for the insurer to manage the expenses of premium processing and collection.

Normally, the premiums for a universal life insurance are minimum, target and maximum. If you opt for the minimum premium, payments are made annually and in the amount that is enough to keep the insurance policy in force and valid for another year, but without any cash value accumulation.

The target premium is the amount needed to keep the insurance policy in force and valid all throughout the life of the insured. Meanwhile, a maximum premium allows the insurance policy to retain its insurance character.



About the Author

If you need more information and help in choosing the best type of universal life insurance policy to buy, click on lifeinsurancegroup.com










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Affordable Property Insurance – A Basic Guide

Article by Luna Mohanty







Insurance has become a part and parcel of our day to day life. It is intricately and inextricably connected with us, to fulfill protection needs of everything including property, in the present day world. A world without insurance is not only hard to imagine but is uncertain aswell.

There are different types of insurance covers devised to protect ones life and personal belongings. Insuring ones property is on everyone’s agenda these days. But before you actually go and buy it, here is a little background knowledge for you.

Property insurance offers financial backup and security for your property if it suffers loss due to fire or lightening, theft or damage from accidents, vandalism, natural calamity or other mishaps. It provides coverage for the insured property and compensates for associated loss. Property insurance also covers loss of personal belongings as part of policy. For instance, if you have jewelry, furniture, or artwork, etc. at home, the insurance policy covers for loss of some or all of it. The insurance policy lets you cover your property under two categories:

Open Perils:

This type of property insurance covers all the losses, even if they are not mentioned specifically in the policy documents. Coverage is provided for damages such as the ones caused due to flood, earthquake, war/terrorism, as well as nuclear incidents. All in all it compensates for any kind of damage to your property.

Named Perils:

This type of property insurance provides coverage for damage-causing events that are specifically mentioned in the policy document. This effectively means that damages occurring from events not covered (stated) in the policy document will not be compensated for.

How to choose an affordable property insurance?

A cheap property insurance policy may not always be the right choice but you can easily have the appropriate insurance policy that is both affordable and meets your needs. The selection procedure should begin with the identification of your needs and should be backed by extensive research to explore all options. With a plethora of options available, the selection process might not be an easy one but is worth the effort. Selecting the wrong insurance policy can seriously jeopardise your interest in safeguarding your property against all ill.



About the Author

Direct Insurance is one of Leading commercial insurance brokers in UK offers, Commercial Property Insurance, fleet insurance and Employers Liability Insurance. Visit http://www.direct-ins.co.uk or mail us at info(AT)direct-ins.co.uk for more insurance related information.

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