Basics of Whole Life Insurance Explained

Getting an insurance policy can be extremely taxing for the brain. There are so many options available and each option has so many clauses and articles that any person can be easily confused. However, one cannot also deny the importance and advantages of having an insurance policy these days. In this article, you would find the basics of the whole life insurance explained in detail.

As the name of the specific insurance suggests, whole life policys are for the whole life of the insured as opposed to term life insurance policies which are a for a specified number of years. In term life policies, if the policy period ends before the demise of the person, then the whole investment goes in vain. To take care of this problem, the concept of whole life insurance was started.

Though the premium amount in whole life annuities is higher than the premium amount of term life policies, the premium in the whole life policies remains constant in general while the amount in term life policies increases consistently.

Another major advantage of whole life insurance contracts is the concept of cash reserve. A savings account is created in the name of the policy owner and a part of the premium amount is diverted to this account so that over time, a big cash reserve is created. The resulting pool of cash can be claimed by either cashing in the policy or by borrowing some amount against it. Traditional whole life insurance annuities are of six types. The names of the different types and the basic difference between them are mentioned below:

1. Non-Participating: In these policies, death benefits, premiums, cash surrender values and other values pertaining to the policy are determined unalterably for the life of the policy at the time of policy issue.

2. Participating: In participating policies, excess profits are shared with the policyholder by the company. The paid refunds are generally not taxable.

3. Indeterminate Premium: Though the premium amount may vary from year to year in these policies, the amount never exceeds the maximum premium mentioned in the policy. They are similar to non-participating policies otherwise.

4. Economic: Economic policies are a combination of term life insurance and participating policies. In these, an additional term insurance is purchased using the dividends.

5. Limited Pay: Annual premiums are paid for a stipulated number of years in these types of policies. They are otherwise similar to participating policies.

6. Single Premium: Instead of the pay period of limited insurance policies, a single large amount, which is lesser than the summation of the premium amount paid for years, has to be paid up front in these policies.

Whole life insurance annuities are literally an investment of a lifetime and therefore one must research well before buying them. However, considering the inconsistent and variable nature of human life, they are really a worthwhile investment.

A whole life insurance definition is not always enough to understand what these type of annuities entail. For whole life insurance explained follow the links.

Article Source:http://EzineArticles.com/?expert

View the Original article

Whole Life Insurance Advice For Young Adults

Young professionals who have no dependents yet, and with a disposable income may well become a whole life insurance policyholder. With some belt-tightening now, many adults believe that life insurance now for younger individuals will do them good rather than bad.

Insurance technicalities are complicated that in general, people need the advice, if not exhaustive discussion, of the coverage. These are delivered by channels such as the agents who represent insurance companies. They are usually licensed by the state to undertake education to their prospective buyers regarding the policies that they sell. This is one step taken by the states to ward off any possibility of fraud or ignorance among the people who purchase life policies. In view of these facts, the old and young alike should take caution by taking some advice before engaging into any undertaking that pertains to life coverage.

The younger individuals all the more need some guidance. It is because the prevailing thought is that it is not necessary at their age. In fact, it may be a far fetched idea at the moment for them. This is because no one is likely to think of dying before the age of 30. Most perceive the need for insurance only after some years when the chances of death are no longer slim.

A sound understanding of insurance for young adults may consist in telling them that the effect of sparing some money monthly to a policy will prevent some destructive effects to the family. Life insurance does not only include death benefits, it may also cover outstanding loans or debts, such as student loans. Although premiums in a whole life insurance are higher, there are better benefits to gain from it than term insurance. You can borrow money against the policy and also, dividends earned may be withdrawn as you approach middle age. They can be spent to some investment but payments will not be required from the insurance holder, but will only be deducted from the death benefits. What more, the earlier you get started with a whole life annuities, the better chances of having them at less expensive cost.

A term insurance plan on the other side is much less expensive and offer renewal options at the end of term. At each term though, the premiums may just get higher and higher. On conclusion, there is a suitable insurance for each individual. That is why a term life or whole life insurance advice for young adults particularly, should be sought for.

Here is an whole life insurance definition and additional whole life insurance advice for those interested in knowing more.

Article Source:http://EzineArticles.com/?expert

View the Original article

Whole Life Insurance

Insurance, unlike any product sold, has become an important commodity and one that is complicated for that matter. Laymen usually do not understand the technical terms that come along with it without the assistance of career life agents or brokers. These individuals either represent one or several different insurance companies. But just the same, they are licensed by the state to take on the job of selling insurance, and at the same time, educating insurance customers.

Because of the complicated nature of this coverage, the role of the agents is no longer limited to being sellers. They are also mandated to impart comprehensive advice and knowledge to their prospective buyers. But in case you are considering of getting life coverage for yourself, and there's no agent on hand, you will need some advice to help you through the process smoothly. Whether it's a whole life insurance advice you need or that for term coverage only, you sure need some trustworthy guidance. It will give you an opportunity to have your doubts clarified and make a clear delineation of your expectations. Needless to say, it will save you time and money.

There are companies that specifically offer this type of service and they are just a mouse-click away in the internet. The most basic knowledge required though is to know the different types of life insurance. There are two kinds of life coverage. One would be the whole life and the other one is the term life. The former covers you as long as you are living and the premium is usually higher. Term life provides coverage for only a certain period of time. As the term expires, the premium increases accordingly so at some point it is even more expensive. The difference lies mainly in the length of the period of the policies. The whole life covers indemnity for the entire life of the insured, while the term life only covers a specific term, so as its name goes.

Good advices on indemnity will direct you to explore both options so that you may know which best suits your needs and your financial capability. Either way, you won't be left to yourself with a blank mind of what actually suits you. You can use this information as your springboard to getting a more detailed and exhaustive whole life insurance advice that you could get from your preferred reliable source. Read more below:

The definition of whole life insurance is easier to understand than you may think. Whole Life insurance advice is something you should not take lightly.

Article Source:http://EzineArticles.com/?expert

View the Original article

Whole Life Insurance Pros and Cons

Before we study the whole life insurance pros and cons, let us discuss what a whole life insurance policy entails. This is the most established sort of permanent policy to be found in the market. The ease of use as well as its stability makes it a popular alternative. Under the whole life insurance policy, you get permanent life insurance coverage throughout your life, generally till the age of 100. This policy does not lapse, provided sufficient premiums are paid each year for keeping it in force.

The premium as well as the death benefit quoted at the start of the policy remains almost same throughout. However, since the insurer invests your premiums, that policy can even accumulate cash reserves. The funds thus accumulated, may be used as premiums, saved or reinvested according to your choice. Apart from being a saving tool allowing you to create cash reserves on a tax-deferred basis, it offers stable insurance protection for a lifetime.

<

View the Original article

Buying Whole Life Insurance Policies

Before buying whole life insurance the pros and cons should be considered carefully. You should gather as much information on different types of insurance policies when making your decision. This way you make a well informed decision; the right decision for you and your family.

Here are some of the pros of buying whole life insurance policies. These policies have a cash value that is accumulated within a tax-deferred basis. This means that at the time the policy begins to accumulate the cash value it is essentially tax free. While adding up its cash value whole life insurance policies allow for the insured to borrow against the cash value of the policy. The coverage for this policy is extended throughout the policy holder's entire life.

Irregardless to how old you are when you pass away or how much time has passed from the time of taking out the policy the insurance company is required to pay the death benefit. As long as you continue to pay the premiums for the policy within the grace period provided your loved ones are entitled to this death benefit. A whole life insurance policy also accumulates dividends. The rate of pay out will increase as the policy matures. These policies have a included inflation protection added so that the death benefits will not decrease due to inflation over the years.

One of the cons of buying a whole life annuity is that in the event the policy must be renewed the premium rates will not remain the same. There is an increase to this premium based on the rates available at the time the policy is renewed. The return on these policies is as little as 6% of the overall cash value. You can only purchase these policies from mutual life styled insurance companies. If the company were to fail or file bankruptcy you will lose coverage as well as the money you invested. Premium payments are required for no less than 15 years, and even then you may not be able to borrow off the full cash value.

The policies cash value is also based on the individual insurance company's yearly performance. So you may want to take it under consideration to do your homework on the many different insurance companies in your area. A company cannot predict their failure, however, it is better to go with a company that has a proven track record than one that is new to the game.

There are whole life insurance pros and cons if you wish to know more about life insurance read this whole life insurance definition.

Article Source:http://EzineArticles.com/?expert

View the Original article

Cheap High Risk Life Insurance

What is high risk life insurance? It's insurance which covers people who work in dangerous professions such as being a pilot, a motor car racer or a deep sea diver. As well it refers to people who have possibly fatal health conditions, such as people with heart disease, diabetes or cancer.

How hard is it to get?

It's not impossible to get a high risk life policy but insurers always take into account the level of risk involved. If a person has a serious health condition or is a sky diving instructor, then the type of policy issued is one called an 'impaired risk' policy as opposed to a 'standard risk' policy. Such policies normally carry higher premiums than other policies.

Companies which offer high risk life policies have become more sophisticated in their offerings in order to take into account the advances in treatment of various health conditions. The mortality tables used by some insurers are based on data collected in the 1970's. More up to date insurers use what is called 'clinical medical underwriting' to more accurately assess the nature of the risk they are insuring.

The concept of 'clinical medical underwriting' used by insurance companies that offer high risk life policies, is an attempt by them to more adequately reflect the current state of modern medical treatment. This doesn't just reflect the use of better technology or the development of improved operating procedure. It also takes into account the wide take up in the community of specific lifestyle regimes which help people to live a longer life.

What kind of benefits can you get?

While high risk life policies can be bought it is not available as readily as other types of insurance or with the expectation of as high a payout to beneficiaries. Often the payout will be limited to the amount of the premiums which have been paid, especially if the policy owner's death relates to the health condition which makes this policy owner a high risk in the first place. A policy may specify a period of up to 5 years during which premiums only will be paid as a death benefit.

If you already have a life policy and you then contract a disease which can shorten your life you may be in a better position in relation to high risk insurance than someone who carries no life policy at all. Check your life policy for a 'guaranteed insurability rider'. If this is part of your policy you have the right to increase the coverage of your policy at the current rate of your premiums.

If you are after a high risk life policy then make sure you get advice from an insurance company familiar with this type of insurance. This is a specialized form of insurance so do not assume every insurance company will be familiar with the ins and outs of what is on offer.

It's important to maximize the benefit to you when you buy a high risk life policy. It might be a good idea for you to consider getting quotes from more than one insurance company. It is unlikely both will offer exactly the same deal so you will be able to choose the policy that suits you best.

Article Source:http://EzineArticles.com/?expert

View the Original article

Guaranteed Acceptance Life Insurance - Is it a scam?

Guaranteed acceptance life insurance is a very attractive policy for people in a specific age group and situation. Those people are between 50 and 80- 85, perhaps with some type of serious or semi serious health condition. It is very attractive because by it's nature, you can buy this type of policy without a physical and it as it's name says, it is a guaranteed issue' policy.

While a guaranteed acceptance life policy might seem a good option if you are older, you might to might want to look at exactly why you want to buy it. Do you want to make sure your estate can cover your burial expenses? There are a number of ways of meeting that need and your job is to assess whether this type of policy is the best way to go about it.

Here's the catch, it costs more

A guaranteed acceptance life policy sounds so very attractive because when companies trumpet its benefits on TV, it sounds like you pay only very low premiums. The supposed advantages of this type of policy don't stop there as it has no medical exam or health questions. What is not disclosed is if you pay very low premiums, your policy has a very low face value perhaps no more than approximately $1,700 and that only if you are a relatively spry 50 year old woman.

It's true that no business is going to give it's products away for free because it couldn't survive as a business if it did. With a guaranteed acceptance life policy if you pay a low premium you get a very low benefit. If you want a higher benefit, perhaps in order to cover burial expenses of $7-10,000, then you will have to pay a much higher premium.

Insurers have to protect themselves against those people who, knowing they are dying, buy up life insurance. The way insurers do that with guaranteed acceptance life insurance is to limit the financial risk they are taking. They charge high premiums and limit the death benefit within the first 2 years of the policy.

How much will your heirs receive as a benefit?

Most people are familiar with how life insurance works. You pay a premium and at the time of your death your heirs receive a death benefit, usually at least equaling the value of the premiums you have paid and often for a higher amount. With a guaranteed acceptance life policy this is still true to some extent but there may not be a direct equation between the premiums you pay and the cash value of the policy when you die. This is especially true if you die during the first 2 years of this type of policy when only a specified limited benefit will normally apply.

In effect with a guaranteed acceptance life policy you pay a price for not having to have a medical exam. The price can be very high if you hold the policy over a fairly long period say10-15 years. Not only are you paying a high premium to compensate the insurance company for the riskier nature of this policy but your heirs may not receive the full value of those premiums. This is very much the type of policy where it is useful to check all the fine print in the contract and to ensure you receive a face to face confirmation from the insurer on the exact size of the death benefit your heirs will receive.

Financial advisers are not fans of guaranteed acceptance life policies. They point out that there is a small window during which policy owners of about 70 years and up will actually receive back the full value of the premiums they have paid. That window will be about 6 years...

View the Original article

Key Man Life Insurance

Key man life insurance will really help you keep your business going if you are faced with the death of a crucial employee central to the running of your company. Most employees can be replaced but often not quickly. When you have this type of insurance you have the funds to hire part time replacement staff or to add to the package you are offering to entice a comparable person into joining your business team.

Why is it needed?

Think of this scenario: your company builds custom designed yachts. You are lucky enough to have snagged one of the top half dozen yacht designers in America as your chief designer. Then he has a completely unexpected heart attack and dies. Your company is suddenly without its biggest drawcard. If you hold a key man life policy on this employee there are a range of ways in which those funds can be used to help you look after your business interests.

One of the major consequences of losing a key employee may be a buyout by an existing partner or the need to close a business down. Having funds readily available to spend on transitioning your business from how it has operated prior to the death to what is now required, is very useful. This is a major argument in favour of key man life policies.

If a company is large, investors need to have their interests protected in the event of a key employee dying. A key man life policy is a simple and straightforward way to safeguard those interests. It works by making sure the ongoing effective operation of the business is ensured if the policy adequately covers the impact of replacing and training a replacement employee.

What are the choices about what type key man insurance you take out?

There are different types of key man life policies available. One type is the standard whole life policy in which the value of the premiums paid accrues over time. Another type is a term life policy which has cheaper premiums and covers a key employee for a specific period of time but the value of those premiums does not accrue.

Whole life key man life policies do have specific advantages. As they have an accumulating cash value they give the business a handy line of credit or an asset against which a loan can be drawn. They can also be cashed out or the value of the policy sold to the insured person when they retire.

A term key man life policy is definitely cheaper than a whole life key man life policy. This makes them perfect for smaller businesses who want coverage without a high premium. They will get necessary funds if a key man dies but if that does not occur they are not paying too high a price to cover the risk of losing a key employee.

key man life insurance is held by the business that takes it out. The business pays the premium on the policy and the business is the beneficiary of the policy. This is because it is the business which is in need of funds if it has to cope with the death of a key employee. That key employee may have held a life policy in his own right, but that is an entirely separate matter. As with all insurance, make sure you get a quote from a reputable insurance company before proceeding.

Article Source:http://EzineArticles.com/?expert

View the Original article

Survivorship Life Insurance

Survivorship life insurance is set up in a very special way. It will provide cover for both a husband and wife or say two business partners. The policy does not however, pay out until both the people covered in the policy have died.

All life policies meets needs. Those needs can vary from peace of mind to providing income for a surviving spouse or meeting financial obligations such as burial costs or mortgage payments. Survivorship life policies are surely unique however in the specificity of its purpose. It is not normally taken out except as a vehicle for safeguarding an inheritance from estate taxes, for providing for special needs children after their parent's death or more rarely as an ongoing contribution of some kind to a charity.

Using survivorship life insurance as part of your estate planning process.

If you're very wealthy, your death can result not just in your heirs getting a large inheritance but also in them having to pay high estate duties. Fortunately survivorship life policies can be set up in a way which enables your inheritance to be kept largely intact. However these estate planning measures need to be made with care and skill so this form of life policy needs your tax expert, legal representatives and your insurance agent to work together to get the best possible outcome.

The measures put in place to ensure the proceeds of a survivorship life policy are used to offset estate duties can take different forms. One measure can be placing the policy in the ownership of a third party such as a family trust or an irrevocable life insurance trust so the proceeds of the policy are excluded from your estate proper. Another measure can be gifting which is the transfer of part of the death benefit to your heirs up to the exclusionary amount defined for a specific tax year.

It is very, very important to have good tax advice in setting up a survivorship life policy. The use of third party ownership of this type of policy aims to take advantage of various tax laws. If the ownership of the policy is set up carefully the proceeds may finish up being both free of income tax and exempt from estate taxes.

Using this type of policy to meet the needs of a dependent child

The reason for taking out a survivorship life policy may not be the most usual reason, which is to limit estate taxes. The reason may be to meet the needs of a dependent child. This would normally occur when a child has some form of disability or a serious health condition. The policy ensures the care and wellbeing of the child after both parents have died.

It's a difficult and challenging situation for parents to find themselves in, having to provide for a special needs child after their death. With the proceeds of a survivorship life policy providing a guaranteed income for a trust, parents know their care and devotion can reach beyond the grave. The trustees of such a trust then have the duty of acting on the parent's behalf in caring for their child.

The cost of these policies

Because a survivorship life policy covers two people the cost of such a policy may be cheaper than the cost of insuring the two people separately.

Underwriters may treat such a policy more liberally because the policy isn't paid out until the second person dies. They may also allow inclusion of the second person on such a policy when that person would be excluded from a single policy for health reasons. Once you have a quote from a reputable insurance company you will be able to look at the usefulness of this type of policy in meeting your needs.

Article Source:http://EzineArticles.com/?expert

View the Original article

Spouse Life Insurance

If your spouse or partner dies you would have lots of issues to deal with including the financial impact of your loss. If you have spouse life insurance you know that in such difficult circumstances you will have a financial cushion to help you respond to such a big change in your life. How important is that kind of peace of mind to you?

Will you need additional funds if your spouse dies?

When thinking about whether you need a spouse life policy consider the following scenarios. Scenario 1,John is married with 3 children under 15 with a stay at home wife. Scenario 2, Cheryl is a stay at home mum who looks after the children and keeps the home running smoothly so Sam her husband can concentrate on his business. What will be the impact on these families if John or Cheryl dies?

The point of life insurance is to make a death benefit available if the policy owner dies. If the beneficiary of a policy is in their late 80's that death benefit is of course useful for a number of reasons. If however a young breadwinner dies the needs of his or her surviving family are immediate and dire.

If a breadwinner dies and he leaves a wife and children a spouse life policy payout can cover funeral costs, provide money to substitute for his income and to cover educational expenses. If a wife dies her husband then has the responsibility of earning a living and also looking after children. In those circumstances a spouse life policy may cover child minding and housekeeping expenses.

Will term or whole life spouse life insurance work best for you?

What type of spouse life policy you take out can vary depending on your need and circumstances. If you need to keep premiums as low as possible then a term spouse life insurance policy would be best. Term polices are normally for a specific period of time and the costs are lower than whole life insurance. In this case it would be during the time of maximum financial vulnerability for the family if a husband or a wife dies. With a term policy, if a spouse dies then the remaining spouse only receives a death benefit and not the value of the premiums that have been paid.

Whole life spouse life insurance is an alternative to a term spouse life policy. Whole life policies are more expensive but the value of the premiums accrues. This means that if a policy owner dies the beneficiary gets not only the death benefit but also the value of the premiums less insurance costs.

Depending on the circumstances of the family it may be prudent to consider carrying spouse life insurance on both a husband and wife. In a marriage a husband and wife operate as a partnership in maintaining the family unit. Either will be missed if one dies but what will be the financial impact of the death of one rather than the other?

As with all insurance you need to get a quote from a reputable insurance firm so you can make up your mind if this type of policy will meet your needs. Gather as much information as you can and ask questions of the insurance company you get your quote from. They will be as eager to meet your needs as you will be to make sure you get a good deal.

Article Source:http://EzineArticles.com/?expert

View the Original article

Buying a Whole Life Insurance

The most obvious option is to buy life insurance. There is always the dilemma of whether to get a whole or a permanent policy. There are many personal factors to consider before making such an important decision, but the former option has a number of essential benefits that you should definitely take into account. It is worth asking: why should I buy whole life insurance vs term life insurance?

The main reason why you should buy whole insurance is that it provides permanent protection for your family. You do not have to worry about the policy becoming expired. You can be certain that if the worst happens, your beneficiaries will automatically receive the funds they are entitled to.

This option is convenient as well. You can choose a whole life insurance policy that suits your budget and stick with it for the rest of your life. You do not have to shop around every time it expires. You do not have to deal with comparing quotes, reviewing agreements and consulting insurance brokers. This is certainly beneficial to all busy modern day individuals.

Why should I buy whole life insurance when the term policies have lower premiums? The answer is really simple. The former type of policy provides for the building of equity. When you pay higher premiums a part of each sum is invested in different types of financial assets. These are usually bonds and funds which provide relatively stable returns at low risk. Thus, by having a whole life insurance you build cash value. This sum can be withdrawn depending on the conditions of the policy. You can use it for anything you want - for financing your children's education, for investing in a property or for increasing your income after retirement. It is also possible for you to borrow against the equity built over the years.

It turns out that the whole term insurance policy is more cost effective in the long run than the term one. You can expect to get higher returns that the investment you have made by paying premiums. In the case of the term life insurance you will only get what you have paid for. Furthermore, if the policy expires and you are still alive, you will not get absolutely anything. There is not such risk with the whole policies.

Why should I buy whole term insurance given that there is always a risk involved in investment? Your money will be invested in low risk financial assets, but it is true that this percentage is never zero. However, you can always choose the level of risk you want to take. There are different types of whole life insurance that you can select from depending on your tolerance for risk. In this way you can guarantee your beneficiaries a set sum irrespective of the circumstances.

Whether you're buying Whole Life Insurance or buying Term Life Insurance you want to make sure you do as much research and due diligence before following through with a purchase to ensure you're happy with the end result. With so many options floating around, it can be difficult to make the right choice, but if you do enough looking around, then you're bound to make the right one!

Article Source:http://EzineArticles.com/?expert

View the Original article

How to Choose Life Insurance

If you've never worked as an insurance agent, you probably have no idea what half of those complicated "insurance words" mean. That can make the decision of buying a particular type of life insurance very confusing. Here's a few things that will help you along your way to making an educated decision.

Well, let's take a look at some basic types of policies. The two most common types of policies that people purchase are whole life and term life.

Whole life insurance is a permanent policy that you keep until you die (your whole life). The rates are designed to stay the same (your monthly premium payment) and the benefits (death benefit amount that is payed out and the cash value) is guaranteed. This type of policy accumulates what is known as "cash value" which is roughly 2% of the amount that you pay in premiums each month that accumulates over time. This accumulates as a cash amount that can be borrowed as a loan. The life insurance policy can be used as collateral for a cash loan, although not exactly a wise idea as it will be deducted from the death benefit when the policy is paid out.

Term life insurance is a temporary policy that is only for a specific "term" or "period of time". This is the most common type of policy that you see advertised on TV with very low rates. There's quite a bit of fine print in some of those TV commercials so proceed with caution if you feel tempted to call in. Term policies do not accumulate cash value and when your policy renews at the 3, 5, 10, 15, 20, 25 or 30 year mark, your premiums will go up based on your age (and health condition) at the time of policy renewal.

Yours truly was a life insurance agent (me, the author) and I would make a recommendation if you're trying to decide which type of life insurance is right for you. If you are young, buy a whole life policy and lock in that low rate. At least get enough whole life that it will cover your burial expenses. If you want a large amount of coverage while you're younger to handle things if the unexpected occurs, buy a more inexpensive, large term policy to last you through those critical years.

Your next question is probably "where". You can save quite a bit of money by comparing what different companies can offer you, and this can be done without having to apply for insurance (which is a good thing). http://www.LifeInsurance4All.com/ is a free tool that you can use to compare insurance rates and policy differences side by side, without having to apply for insurance. Best of luck in all your endeavors, Christy Love.

Christy Love is a retired life insurance agent with over 30 years of experience in helping people protect what matters most... their family.

Article Source:http://EzineArticles.com/?expert

View the Original article

Life Insurance When You Are Not As Fit As You Should Be

If you are not in the best of health and want to get life insurance but think you are unable because of your health record, well think again. Being unhealthy does not necessarily mean you can go without life insurance. The following are just a few steps to help you on your way to getting insured. How to get life insurance.

Step 1. Now before you apply you need to get a few things together. First get a record of all the health care providers you have visited in the last 10 year, this includes hospitals, clinics, agencies and medical professional. You will need to get their full names, addresses and contact details.

Step 2. Next you need to get a record of any prescription medications or medications that you are currently taking, this includes the full name and the dosages.

Step 3. You need to write down any major health concerns that have affected your adult life, make sure that you write the earliest first and try to write down around the dates they happened.

Step 4. Next you need to write a record of some positive things about your health condition, this may include things like, I jogged 3 times a week, to, I quit smoking such and such a date, and so forth.

Step 5. This step is easy all you have to do is collect all the above information into a folder so it is easily accessible. Make sure you also do a double copy of your records in case you happen to lose your folder or you need to give it to someone.

Now we look at applying for coverage.

Step 1. First you need to find an insurance professional who has had experience in placing impaired risk causes, this may be your current insurance professional.

Step 2. This step requires you to make 2 formal applications to 2 different companies for insurance that are already known to be more aggressive underwriters.

Step 3. Apply for the amount that your beneficiaries actually need with what you have worked out and from the advice which your financial professional may have given you.

Step 4. After you have finished filling out any application forms, the insurance company may ask for you to do some medical exams and tests. This should be paid by the company. The sooner you get this done the better it looks.

Now we will look at considering any offers.

Step 1. First if any coverage offers come from your application you need to ask your agent for a written document of these.

Step 2. If a company declines or rates you, ask for a written letter of explanation as to why you were declined.

Step 3. Whatever offers come to you, look at them all mindfully. Choose an offer that gives you more policy guarantees and insurance coverage for the least amount of cost.

Step 4. Lastly, regardless of any offer put forward to you, get the insurance company to send all your test and examinations back to your health care provider for your current file.

How to get life insurance may be easier than you think. All in all this may help you get on your way to getting insured if you are not as healthy as you should be.

Al Smitty is a writer who loves to discuss many topics ranging from how to get insurance to American football. Thanks for reading!

Article Source:http://EzineArticles.com/?expert

View the Original article

High Risk Occupations That Require Life Cover

Think you've got a tough life working from the safety of your desk behind a computer screen? Well think again! Although a desk job can - at times - feel boring and restrictive, there's plenty of people who put their lives on the line everyday as part of their career. For individuals in high risk jobs, hazard occupation life insurance is essential especially if you have a family or bills to pay. So what kind of professions require high risk life insurance?

Anyone working in the construction industry is at particular risk from injury at work. In particular, individuals working within scaffolding or roofing should invest in an appropriate level of life cover since working at heights, on ladders or anything involving heavy lifting has plenty of risks attached to it.

Farming is another outdoor occupation that requires life cover. Risks associated when working with livestock, operating heavy and complicated machinery as well as mixing and distributing chemicals make farming a dangerous occupation. Farmers are encouraged to take out life insurance as a means to protecting their families should they die or become critically injured at work.

Working underwater naturally carries with it more risks than land-based work so professional divers and submariners should seriously consider investing in life cover if they haven't done so already. Since divers rely on an oxygen supply when carrying out technical or observational work below the surface of the water, it's not uncommon for individuals to experience breathing problems or suffocation. Life insurance for divers is priced accordingly to the risks they face.

Finally, anyone working in the emergency services should also consider taking out life cover for hazardous professions. Whether you're a fire fighter, paramedic or police officer, people working in the emergency services aren't afraid to risk their safety to protect someone else. Anyone who goes to compare life cover between someone in a hazardous profession and a less risky role will see a difference in price; although when you're comparing rescuing people from a burning building to an admin job you can see why!

Amber is an expert in life insurance and careers.

Article Source:http://EzineArticles.com/?expert

View the Original article

How to Choose the Best Life Settlement Brokers

When considering the sale of your life insurance policy, a life settlement broker is an invaluable resource. Using a professional broker can have a profound impact on one's ability to maximize the value during the sale of their insurance policy. They have access to multiple funding sources, many of which don't deal directly with the public. In addition, good brokers can speed up the transaction by efficiently navigating the long and sometimes confusing process.

The life settlement industry is still in its infancy. As a result, many new companies and brokers have emerged to fill the growing demand. Although, the quality of brokers across the industry is somewhat inconsistent. Some are extremely professional, while others are inexperienced and lack the expertise to maximize policy values in secondary market transactions.

Brokers should concentrate on just life settlements and not sell other products or services. As a full time professional, they effectively remove possible conflicts of interest that make occur if they sell other services and products. Furthermore, dedicated brokers are free to focus on becoming masters of their craft and industry best practices.

It is essential that a broker work with a number of institutional buyers. By creating a competitive pricing environment for a policy, the seller is more likely to get the maximum value the market will bear. Unfortunately, some settlement brokers only work with one or two buyers and as a result fail to deliver the best sales price available to their clients.

Now all but a handful of states regulate and license life settlement brokers. It is imperative to work with only licensed brokers. By selecting a licensed broker you can be confident your representative is legally held to high standards of education, training and compliance.

Deciding to sell your life insurance policy is an important decision. Selecting a good settlement broker is a huge aspect of that decision. They are obligated as fiduciaries and you must believe that your chosen representative can represent your best interests.

Looking to find the best life settlement broker, then visit http://www.amritafinancial.com to find the best information on working with life settlement companies.

Article Source:http://EzineArticles.com/?expert

View the Original article

Does a Senior Need Life Insurance ?

Getting any type of insurance is very beneficial to a person. This is particularly very important for the people in their prime years so that they can be able to live a peaceful life and are secure in case anything happens. For one to get seniors life insurance you have to be over the age of forty. This type of insurance has more expensive rates as the people in this age bracket suffer from the most risks. Senior term insurance is a type of insurance that helps to give your family an alternative form of income when you are gone so that their lives are not distrusted much when you are not there. Life insurance for seniors is offered by many insurance companies and thus you are required to choose one that is most efficient and will not bring you problems later. You also need to choose a senior life insurance policy that will work for you.

Insurance for seniors needs to be taken very seriously by the elderly so that they can have a fall back plan in case anything happens in their lives. This helps to keep them secure in the future. There are some policies such as the senior term life insurance which provide the family with a safe way out in case the person they were depending on dies. Seniors insurance can also provide safety for other assets which belong to the family such as business where you can use the policies to cover it. To make sure that you and your family are safe you need to get a good Senior Life Insurance that will be able to cover all your needs. You can consult with financial advisors or the web to find out the covers you should take and how much money you should spend on them so that they can be fruitful in the end and you can end up reaping huge benefits from the insurance.

I never thought I will ever be interested in any kind of long term insurance. But since friend of mine introduced me Senior Life insurance, I started to see things differently. It's all about taking care of your family even after I pass away.

Senior Life Insurance take care of more then just better pension. The best one even take care of your mortgage, funeral costs and your family.

Article Source:http://EzineArticles.com/?expert

View the Original article

Creative Ways to Access Money For Senior Citizens

Senior Citizens are looking to life settlements during this uncertain economy. This little known transaction is becoming increasingly popular for seniors looking for sources of cash. They can provide an immediate lump sum for unwanted life insurance policies.

Life insurance offers great financial security for when someone dies. Although, most believe that their unwanted policy has little value outside of its original purpose. Most believe there only two things that can be done with an unwanted life policy. Either surrender the policy to the insurance carrier or let the insurance policy lapse. If the policy lapses the owner gets nothing. If the policy is surrendered to the insurance carrier, the policy holder usually gets very little.

Senior settlements offer a third and more attractive option. These occur when someone sells their existing life policy for an immediate lump sum payment. The seller benefits by getting instant money which is often 200%-500% more than the cash surrender value offered by the insurance carrier. While the buyer, often a financial institution such as a bank or investment fund, pays the ongoing premiums and receives the death benefit when the policy matures.

Unfortunately, many seniors don't realize that life policies can be bought and sold by their owner, like any other asset. The right to sell an insurance policy has even been upheld by the U.S. Supreme Court. In fact, life insurance policies have been sold in the USA dating back to the 1800's.

Contacting a settlement broker is usually the first step of the life settlement process. The life settlement broker can provide a free estimate and negotiate offers with potential financial institutions interested in buying life insurance policies. The life settlement brokers usually require an application and then they will collect the other medical records and insurance documentation on their own to get the process started.

Want to find out more about a life settlement, then visit Kelly Ramirez's site on how to choose the best life settlement broker for your needs.

Article Source:http://EzineArticles.com/?expert

View the Original article

Types of Life Insurance

You're looking out the window watching your kids play in the backyard, and with that a scary thought comes to mind "What if I go now? Who will take care of them?"; what a scary thought indeed. In reality, no rich heir will willingly adopt your kids and your wife soon after, if you were to pass away because let us be realistic here, this isn't a movie. So how do you overcome this little problem? Simple, the answer is Life Insurance. For many of us, the word insurance is like sweet poison, a contradictory statement within itself. In other words, having to pay for something extra every month is as painful to your ears as losing your right leg, but maybe the main problem is because we're not familiar with life insurance and the many types of life insurance.

The first one would be Single Premium insurance requires you to only pay a one time premium to enjoy its full insurance coverage. The insurance company would usually charge an annual fee to cover administrative charges and mortality risks. The interest rate will usually fluctuate for this type of insurance, but even then, it's pretty minimal. Furthermore, loans are allowed to be taken for insurances of this type, plus, most insurance companies try to alter these policies to strictly meet federal tax law requirements so income tax would not be applied to a beneficiary's death benefits.

The next one would be term life insurance, which provides a specific amount of life safety coverage for a certain period of time. This type of insurance usually lasts for as long as 15 years. Unfortunately, there's a certain "risk" To this type of insurance. If the person dies within the policy time frame, the insurance company would payout the face value of the insurance, but IF the insured does not die within the time, he would be given nothing. Although this may seem like a cheap bet, many do buy term life insurance mainly because it's the least costly and acts as temporary security. There are also convertible term life policies in which the insured may change his insurance type to another more permanent.

Whole life insurance is a type of insurance which will cover you throughout your life without considering the time the insurance was bought. Premiums may be paid throughout his life or within a smaller portion his life, depending on his paying capabilities. The investment portion of the whole life policy is made up of stocks, bonds and mutual funds. It is usually tax free until a sum is withdrawn.

So what will it be? With the many downsides and benefits of life insurance, will you decide to pay an amount to be insured or would you prefer to live a care-free one without worrying about what will happen tomorrow? That decision is up to you and no article can help you with that one!

Stuart is writing for many websites, He enjoys writing on wide range of topics such as churchill life insurance and cheapest life insurance. You may visit for more details.

Article Source:http://EzineArticles.com/?expert

View the Original article

Life Insurance is Important

Having a life insurance quote in order to take out a life insurance policy is possibly one of the most important decisions we are ever likely to make and yet for a lot of us it is a decision we never make until it is too late. How many wives and children have lost everything whilst trying to come to terms with the death of their loved one, no money to pay the mortgage so they lose their house, no money to pay for food or bills, this can result in a financial nightmare for them. Many of us do not hesitate to have insurance for our cars or our possessions but do not even consider having a life insurance quote.

These days people are becoming more aware of the need to have a life assurance quote in order for them to be covered when they die, they are also becoming more aware that Insurance companies are only trying to help their customers by providing their loved ones with financial security in the unfortunate situation of you dying and not just trying to cash in on everyone and make a profit. That is why it is necessary for you to first obtain a life insurance quote in order for the insurance company to see exactly how much money your dependants will need in the event of your death or accident.

To take out an insurance policy the insurance company must first of all give you a life insurance quote in order for them to determine the amount you must pay in the monthly premiums that will enable them to guarantee you the cover you will need, then once the amount is agreed between yourselves and the insurance company and you have read the policy agreement and are happy with the contents then you must both sign to prove that you both agree the terms and conditions.

When you are looking for a company to provide you with a life insurance quote it is always advisable to approach an insurance company that has been recommended and has a very good reputation. The last thing you need when taking out life insurance is the possibility of it being a scam and not paying out when you need it to. So choose very carefully, read and find out about the company first before you make a decision and when you do, make sure the company understands and is able to fulfill all your requirements.

So you are better off making the decision today to make sure you are covered on your life policy as you do not want your family to have to go into debt if something were to happen to you, you need for them to be covered by insurance so they can be rest assured that all of their finances will be sorted and they will not have any worries at all on how they are going to cope financially. This is very important for the future welfare of your family.

For more information about life insurance quotes and life insurance quote.

Article Source:http://EzineArticles.com/?expert

View the Original article

Why Getting Life Insurance is Important

Getting life insurance is not something that many people think of as being that important, but it is a very important step in your life and one that could end up saving your family a headache of affording everything later. If you are going to be able to get this while you are young you could end up saving money, but here are some reasons why you need to get this coverage in life.

One of the first reasons that you are going to need this coverage is that you are going to need to pay for the funeral. Even if you do not realize it at the time everyone at some point is going to pass on. Being able to pass on without leaving the worry about the cost of a funeral for your family members to cover will be nice for them.

You are also going to be able to leave money behind so that your family can have something to remember you by. Being able to have this could help them out in multiple ways including helping them pay off bills, purchase a house, or even do other things that they never thought possible in a million years.

The policy depending on its type could end up giving you one that you can borrow against. Being able to borrow against the policy can lead to you having the best of both worlds. Since you are already paying for the coverage you are going to have that coverage, but then you are also going to be able to use it as a means to get a loan as well depending on how much you have as a payout.

If you are able to do this at a young age you are going to know that you will have this coverage at a lower rate than what you might be expecting to pay. Having the lower rate will be nice because if you lock that in for at long period you can find that it will stay the same even if your older friends are getting a rate that is extremely higher than what you paying.

The bonus is you are going to be able to provide for your family even after you have left this world. Being able to provide for them is something that you might think that other people will take care of, but if you are the one that is the main provider for the family you have to remember that they are going to be losing your income so they are going to need something to help them out.

If you have a policy in place you are going to have a piece of mind. Having this peace of mind will be because you are not going to have to worry about your families needs being met after something happens to you unexpectedly. You can find that this could be a great way to relax and know that you are not going to have this worry bugging you for any extended period of time.

Getting life insurance is a wonderful thing to have for many reasons. One of those main reasons though is you are not going to have to leave the worry behind of your family having to pay for funeral expenses which are always going up.

Al Smitty is a writer who loves to discuss many topics ranging from getting insurance to American football. Thanks for reading!

Article Source:http://EzineArticles.com/?expert

View the Original article

Life Settlement Appraisals

As life settlements become a more popular tool for retirement income and financial planning, the question always boils down to how much is my life insurance worth? A life settlement appraisal is the first step in understanding if selling an existing life policy makes sense. There are several factors that contribute to a life insurance policy's value as a life settlement.

A significant component to establishing the life settlement value of a policy is the insured's life expectancy. This is probably the most important factor aside from the policy's face value itself in determining a secondary market value. The insured's age, health, medical conditions, family history and gender are all evaluated to determine a probably longevity by buyers and outside medical appraisers. A policy insuring someone with a short life expectancy (LE) is more valuable than one insuring someone with a longer LE.

The settlement value of a life policy is also affected by the type of policy. Non convertible term policies are not appealing on the market, but Universal, Whole Life and convertible term policies are sought after. Universal policies are often the most attractive to buyers as they provide a great deal of flexibility in premium payments and often have cash value that can be accessed by the buyer.

The policy owner is also an important aspect of valuing an insurance policy. If the owner of the policy has recently filed bankruptcy, creditors may try to claim the policy. In addition, the state of residence or domiciliary state affects the value of an insurance policy. Senior settlements are regulated on a state by state basis. If the policy seller is from a state that has prohibitive regulations or very few licensed buyers the settlements offers will be affected accordingly.

The life settlement market itself has an impact on the value of an insurance policy. The buyers of policies are typically large financial institutions such as retail banks, hedge funds and investment funds. When these institutions have capital to deploy, the settlement market becomes more competitive and policies carry a premium. However, the financial institutions don't have as much money to invest in policies, the settlement market may see discounting of policies.

Policy owners that understand the factors contributing the value of their insurance policy are more apt to maximize their asset's value. By recognizing what makes a policy attractive and valuable they can better plan if and when to sell their insurance policy.

Learn more about a life settlement. Stop by Kelly Ramirez's site where you can find out the value of your life insurance policy with a life settlement appraisal.

Article Source:http://EzineArticles.com/?expert

View the Original article

Does A Child Need Life Insurance?

If you are one of the people who think talking about child life insurance brings bad luck, you should rethink. The insurance is something that can tide you and your family in bad times. It is not akin to a will or a testament to be written by the aged and terminally ill people. In fact the majority of insurance policy holders are people aged 25 to 45 years, who are engaged in a variety to professions ranging from risky ones such as defense to safer ones such as civil engineering. It is not always that a person has to be under imminent threat to take a insurance policy.

By a similar logic, you need a children life insurance for your beloved child because accidents are inevitable. There are several benefits of going for children life insurance policy. Some of them are:

1)Most of the insurance policies give you can option of payment of the insurance money in event of death of the child or at expiry of a certain period. It is like a mutual fund that will mature around the time your child is ready to go to a college and reduce your burden of financing his/her college education to a large extent.

2)Children life insurance policy also helps the parents in tiding over the loss of business or other opportunities in wake of the tragic incident. You might end up losing job or a trade consignment in mourning and you might end up in a financial distress you need to deal with.

3)Child life insurance policies can also help you with managing for a better education and better life for your other children. The loss of loved ones can never be compensated with money but if it helps in building up lives of other loved ones, it should be taken into account.

4)Another good reason for taking a insurance policy for a child is that you have to pay minimal premiums over a long period of time. You can also continue it till your child starts earning and gets it converted to an adult life insurance policy.

Your child is your treasure and you would want to give him/her a perfect life and the best education possible. An insurance policy is one of the methods to ensure that you have more resources at your disposal when needed.

The children future is important. Try This Children Life Insurance Today!

Article Source:http://EzineArticles.com/?expert

View the Original article

Joint Term Life Insurance

The life insurance industry is littered with many different types of policies. They have been developed to provide more flexible options for prospective policy owners but which is the right one for you? If you are considering buying a joint life insurance policy remember these policies have a dual identity. There are in effect two types of joint life policies. One is the joint term life policy. The other is a joint whole life policy. Term life policies as a general type of insurance refers to a policy taken out for a specific term, with a defined premium and agreed face value or death benefit if the policy owner dies.

A whole life insurance policy is the basic type of permanent life insurance taken out to cover the whole life of the policy owner which in addition to the death benefit has an accrued cash value. If you add the word 'joint' in front of both these types of policies you can see what the dual identity is of each these types of policies.

Why have one of these policies?

Joint life policies of either the term or whole life variety, are normally taken out by a husband and wife or a common law couple. The intent of the policy is to provide a cash benefit to the partner who survives to help them pay for the expenses of rearing children, to cover a mortgage or to meet other financial liabilities. If the policy is a whole life one, the survivor gets both a death benefit and the value of the premiums paid. If the policy is a term one, the premiums will be much cheaper but there is only a death benefit paid.

If you want a joint term life insurance policy then it's usually a policy for a term of 10 years with a defined premium to cover the years when the cost of child rearing or other responsibilities is particularly heavy. Many of these policies do have the option to renew at the end of the initial term if the policy owners choose to do that, however most choose only to have the policy for a specific period. The usual joint term policy is to provide peace of mind to the couple concerned if the worst occurs and one person is left to carry responsibilities that previously were shared.

The cost of covering a mortgage can be considerable. Joint term life insurance is often taken out by a couple to insure against one partner having to meet that cost on their own. For this reason joint term policies are often also called mortgage insurance.

Who takes out these types of policies?

Joint term life policies are not just taken out by couples with a young family or a mortgage. Couples in their retirement can take out these policies. This is usually done when the retirement lifestyle the couple has set up will be compromised if one partner dies.

The term of a joint term life policy can be annual, 10 years or 20 years. Couples with young children often opt for a 10 year policy. but if a couple is also concerned about covering heavy college expenses or their own retirement expenses then they may opt for a 20 year term policy. Your first step could be to get a quote from a reputable company and discuss with your spouse or partner how premiums will be covered within the family budget.

For Which Life Insurance, information that's clear and useful and for FREE QUOTES on all Life Insurance, click here www.bestlifeinsuranceavailable.com. If you have a big need for straightforward, non technical descriptions of different types of Life Insurance before getting a quote, I've collected all the information you need. Here's what I found out about Joint Term Life Insurance. Lorraine Benham

Article Source:http://EzineArticles.com/?expert

View the Original article

Buying Life Insurance Online

Anyone with a spouse or children should have life insurance to help take care of their loved ones should anything unforeseen happen. But what is really surprising in this day and age, when most people are well-informed about their financial options, is just how many people, married adults with and without children, who don't have enough life insurance to ensure that their families will be able to make it through the difficult period after the death of a primary bread-winner. Many people are put off from getting more insurance because they think it will be too difficult to get the right policy, or might be too expensive. Regarding that last thought, nothing could be further from the truth. Getting life insurance online is one of the best investments that any parent or spouse can make. Not only does it guarantee that a spouse or family of children will be provided for, it also gives the purchaser peace of mind about the future. And really, when you think about it, there's no price you can put on that kind of peace of mind.

If it's been a while since you looked into obtaining a life insurance policy, you might want to take a fresh look at this kind of financial instrument. It may seem strange to talk about life insurance as a financial instrument, but that's what it is. And in the decades since life insurance became common for regular American families, it's transformed almost beyond recognition, with a dizzying array of services and plans being offered.

For instance, when you look at life insurance online, you'll probably be amazed at all the different kinds of life insurance plans you can get. Aside from a death benefit, which is a pretty standard feature of most insurance plans, you can also get insurance for your children so that the family can be compensated in the awful eventuality that one of your children is killed or seriously injured in an accident, or contracts a dangerous illness such as meningitis, paralysis, or encephalitis. A policy guaranteeing $20,000 to $50,000 if any of these eventualities comes to pass would not alleviate a family's grief, but it would help to pay for medical bills, home health care, expensive treatments, or costly medications.

There are, of course, similar plans intended for adults that are intended to cover the consequences of crippling accidents or serious, life-threatening illnesses. If you have the misfortune to be stricken with cancer, a stroke, a heart attack, or are forced to undergo open-heart surgery, it can make all the difference in the world to know that you are entitled to an insurance payment of $50,000 up to $250,000. These days it's astonishing and not a little scary to contemplate just how quickly medical bills can mount up when you're seriously ill. One of the worst aspects of being stricken with a serious, life-threatening illness is not being able to work and keep up with your bills.

One of the great benefits of living in the Age of the Internet is just how easy it is to research various insurance companies and the plans they offer for accidental death benefits, children's insurance, total or partial disability, or a terminal illness. These days it's even possible to obtain insurance against the prospect that you or a beloved family member will be so ill that long-term home care is required. If you've never been faced with paying for home health care, you'd probably be shocked at just how expensive it can be. You can easily spend $30,000 or more for a year of round-the-clock home care for an elderly parent or permanently disabled relative. So, don't be afraid to look into buying more life insurance online or changing the plan you currently have.

Andy West is a write on many subjects, such as person finance. Making time to actually go see an agent can sometimes be tough, so you can see about getting life insurance online instead.

Article Source:http://EzineArticles.com/?expert

View the Original article

Tips On How to Choose Insurance

If you suffer from an insufficient amount of security due to circumstances of a different nature, such as poor health, unsafe bustling streets of Toronto, risks posed by heavy traffic, unstable job and more, no doubt, getting an insurance protection is the number one issue on your agenda.
In effect, it is not an easy undertaking to purchase, for instance, life insurance in Toronto in a balanced correlation price-value. It is quite a confusing task which keeps you in an uncertainty mode.
No doubt, major number of Toronto residents encountered with the problems of that kind while applying for insurance quotes. Needless to say, in order to put your mind at rest, it is highly advisable to confide your problems to an insurance broker, a person adept at the insurance field.
An efficient broker will take the blindfold of uncertainty off and clear the vision of your situation allowing you to look at it from a fresh perspective. And yet, what indeed do insurance brokers do? At the initial stage they provide a clear-sighted analysis of your case pinpointing what coverage is the best for you, why it is advisable to choose one company versus the other, how things will work out in the end.
Besides this, an insurance broker is responsible for making any alterations to the clients' policies and settle claims with the insurance company if required. On top of that, the insurance broker is obliged to pursue your interests in case of any controversial issues take place with the insurance company.
In other words, protection is high on their list of things to do for the clients. Furthermore, insurance brokers are able to gain access to special rates restricted to the public eye and as a consequence negotiate better deals on the insurance quotes. Then the prospect of getting insurance quotes in Toronto at a low figure will be very high.
Feel assured that having an insurance broker in Toronto to manage your insurance coverage is priceless, especially knowing that your interests will always take priority and your issues will be addressed in the shortest spell of time and in a due course.
Insurance broker in Toronto
Article Source:http://EzineArticles.com/?expert

View the Original article

Premium Life Insurance Evaluation

One important way to evaluate any life insurance policy is to be honest with yourself about what you're getting if you buy. If you want peace of mind above all else then return a premium life policy is a good buy. If you also want to make a good financial investment, one that gives you the highest possible return on your money, then you need to look at a range of financial products as well as this one.
A return of premium life policy is term life insurance as opposed to whole life insurance which covers the whole life of the policy owner. It is purchased for a specific term the usual being 10, 20 or 30 year terms. During the term of the policy if the owner of the policy dies, his or her heirs get a death benefit. At the conclusion of the term but at no point before then, the owner also gets back the exact value of the premiums he or she has paid.
With a normal term life policy if the policy lapses due to failure to pay premiums, the owner gets nothing. At the end of the term of the policy, if the policy owner is alive he or she also gets nothing. It is only with a return of premium life insurance policy that the owner retrieves the money he has put into buying the peace of mind an insurance policy brings.
The big advantages of return of premium life insurance.
There are definite advantages to buying a return of premium life policy. It is cheaper than whole life insurance and you will get a good competitive price if you shop around. And because it is a term life policy as opposed to a whole life policy you can buy it to make sure you are covered during particularly vulnerable periods of your life, such as when your children are young or while you are paying back a mortgage. In other words it's a flexible insurance product you can adjust to meet your needs at different times in your life.
Since a return of premium life policy is term life insurance it also has the specific advantage of this type of insurance. With this type of policy, if you become ill with a debilitating or terminal illness, premiums do not increase. In addition the insurer cannot cancel the policy and if you wish to renew the policy for a further term, the insurer will do that without a medical examination, though the premiums may increase.
The disadvantage of having this type of insurance.
A return of premium life policy definitely gives you peace of mind by knowing your heirs are covered in the event of your death during specific periods of your life. What it does not give you is a good return on the money you pay in premiums. If the term of your policy is 20 years you will get back all the premiums you have paid over that time but the value will have been eroded by inflation.
If you want your life policy to be an investment as well as providing peace of mind then return of premium life insurance is not for you. You will get your money back but its value will have decreased. It's the insurer who benefits by pocketing the interest and dividends from your money.
If you buy a term life policy and then invest the difference between the premiums for a simple term life policy and a return of premium policy you may get more money at the end of the term of the policy. Of course to get your good financial return you need to invest well and share markets can be volatile. And many people forget to factor in the advantageous tax benefits that are part of all life insurance. The way to go is to get a good competitive quote for return of premium life insurance and then work out costs and benefits to you of buying this type of policy versus another kind of financial investment.
For Which Life Insurance, information that's clear and useful and for FREE QUOTES on all Life Insurance, click here www.bestlifeinsuranceavailable.com
If you have a big need for straightforward, non technical descriptions of different types of Life Insurance before getting a quote, I've collected all the information you need.. Here's what I found out about Return Of Premium Life Insurance Lorraine Benham
Article Source:http://EzineArticles.com/?expert

View the Original article