With life insurance policy, you get what you pay for. What you pay for is the life insurance policy's face amount, the amount the life insurance policy company will pay when you die.
Since the face amount of the life insurance policy is payable upon the death of the insured person, the element of risk to the insurance company is much different than it is for an automobile policy. When an insurance company issues an auto policy, it hopes you will be a safe driver and will never have an accident, so you will never file a claim. When an insurance company issues a life insurance policy, it knows it will be called upon to pay a claim someday, because every human being dies, for the insurance company, the only unknown is whether the claim will be made in one year or in 50.
Not surprisingly, life insurance policy costs vary based on your age, health and the amount of insurance you buy. The term ordinary insurance is sometimes used to describe individual life insurance. There are three road types of individual or ordinary life insurance policy - whole life, term life and endowment.
Death benefits are the one thing that all types of life insurance have in common. If it doesn't pay a death benefit, it is not a life insurance. The death benefit is the pure life insurance protection. You could argue that anyone who knew for certain that he or she would live to an old age would be foolish to spend money on life insurance policy. The premiums could be put to better use over the course of a long life and it would be necessary to set aside a small sum for the eventual funeral.
But none of us can be certain that we will live for a long time even if our ancestors are long-lived. There is always the possibility that a disease or accident will result in a premature death. Anyone can become a victim of a natural disaster or an act of violence.
The need to cover expenses and replace lost family income if a person dies young is the main reason people purchase life insurance policy but it is not the only reason. Today, many forms of life insurance policy include other types of benefits, in addition to a death benefit, and people also buy life insurance to protect against the risk of not dying prematurely, to protect against the risk of living for a long time.
By Sky Joe
Saturday, January 6, 2007
Getting Cheap Term Life Insurance
Many people considering life cover will look for cheap term life insurance, because it is probably the simplest and least expensive way to protect their partner’s and family’s financial future in the unfortunate event of their death.
If you have dependants or a mortgage, then it makes sense to take out life insurance. A life insurance policy will help repay the mortgage on your home after your death, ensuring that your partner and/or family will not be left with financial difficulty to add to their grief.
As an example, your term life insurance policy can match the repayment term on your mortgage so that if you die before the end of the mortgage repayment term the life insurance lump sum will clear your mortgage debt.
While there are plenty of life insurance policies out there such as index-linked or joint life, it can be confusing knowing which policy is right for you. Also, the more convoluted insurance you buy, the higher the premium you will pay and that is why cheap term life insurance is an option favoured by many people.
Term life insurance is the cheapest form of life cover, paying out a lump sum if you die within a specified period. If you are still alive at the end of the term, then no payment is made – hence why premiums are so cheap as the insurer cannot justify charging a huge amount for your premiums as there is no investment element to a term life insurance policy.
No one wants to pay more than they have to for their life insurance, so how do you go about getting cheap term life insurance?
First of all, life insurance premiums are now up to 40% cheaper than they were a few years ago due to advances in medicine helping us all to live longer, so now may be a good time to either check your existing arrangements or take out a policy.
It is always a good idea to get several life insurance quotes before applying for a policy. This is because premiums - even for the ‘cheaper’ type of policies - can vary from provider to provider, so by getting a life insurance quote first, you can shop around for the most competitively priced life insurance policy.
You can get a life insurance quote from a number of places, such as your bank or other financial organisation, but probably the quickest and easiest, no-hassle way to get a quote is to do it online. There are websites that will give you an immediate online quote so that you can get a feel for how much your premiums will be.
Remember, however, that quotes are a guide only and they could change once you have completed a full application. However, if this does happen and you are not happy with the premium, you are not under any obligation to proceed with the policy.
Remember that when applying for life insurance, you should always tell the truth on your application form – no matter how negative you feel it might be. For example, if you are a heavy drinker or smoker or you don’t disclose your full medical history, you will get cover that may not be valid. This means that should you die and it turns out you lied on your application form, the insurers legally don’t have to pay out your claim.
Finally, don’t forget to check out the terms and conditions offered by the different insurers so that you can compare quotes on a like-for-like basis and get the cover that best suits your circumstances.
By Jason Hulott
If you have dependants or a mortgage, then it makes sense to take out life insurance. A life insurance policy will help repay the mortgage on your home after your death, ensuring that your partner and/or family will not be left with financial difficulty to add to their grief.
As an example, your term life insurance policy can match the repayment term on your mortgage so that if you die before the end of the mortgage repayment term the life insurance lump sum will clear your mortgage debt.
While there are plenty of life insurance policies out there such as index-linked or joint life, it can be confusing knowing which policy is right for you. Also, the more convoluted insurance you buy, the higher the premium you will pay and that is why cheap term life insurance is an option favoured by many people.
Term life insurance is the cheapest form of life cover, paying out a lump sum if you die within a specified period. If you are still alive at the end of the term, then no payment is made – hence why premiums are so cheap as the insurer cannot justify charging a huge amount for your premiums as there is no investment element to a term life insurance policy.
No one wants to pay more than they have to for their life insurance, so how do you go about getting cheap term life insurance?
First of all, life insurance premiums are now up to 40% cheaper than they were a few years ago due to advances in medicine helping us all to live longer, so now may be a good time to either check your existing arrangements or take out a policy.
It is always a good idea to get several life insurance quotes before applying for a policy. This is because premiums - even for the ‘cheaper’ type of policies - can vary from provider to provider, so by getting a life insurance quote first, you can shop around for the most competitively priced life insurance policy.
You can get a life insurance quote from a number of places, such as your bank or other financial organisation, but probably the quickest and easiest, no-hassle way to get a quote is to do it online. There are websites that will give you an immediate online quote so that you can get a feel for how much your premiums will be.
Remember, however, that quotes are a guide only and they could change once you have completed a full application. However, if this does happen and you are not happy with the premium, you are not under any obligation to proceed with the policy.
Remember that when applying for life insurance, you should always tell the truth on your application form – no matter how negative you feel it might be. For example, if you are a heavy drinker or smoker or you don’t disclose your full medical history, you will get cover that may not be valid. This means that should you die and it turns out you lied on your application form, the insurers legally don’t have to pay out your claim.
Finally, don’t forget to check out the terms and conditions offered by the different insurers so that you can compare quotes on a like-for-like basis and get the cover that best suits your circumstances.
By Jason Hulott
Life Savings Insurance Discounts - What’s This All About
Life savings insurance discounts can be acquired through a credit union, and are a level term life insurance. The credit union’s that offer this type of insurance plan do so in an attempt to encourage the saving of money and to have the participants keep it in the credit union.
While each credit union offers slight variations on the theme life savings insurance discounts can be availed of if you belong to a credit union that offers such a plan and if you are under the age of 70.
There are some other generally accepted standards that seem to be common to most of these discount plans although when seeking quotes it’s always a good idea to look into everything and make sure that you’re comparing apples to apples.
There is a set limit for which a participant can be insured. The amounts that I’ve seen varies from $4,000.00 to $5,000.00. In other words you can save as much as you want and get your account built up to whatever amount you choose but if the limit insured amount is set at $5,000.00 no matter how much your account exceeds that amount you will not be insured for the excess.
In other words, the amount of insurance paid out the time a claim is made is proportional to the amount of money in the savings account-up to the limit of the plan-and the age of the member who passed.
For those who are able to fulfill the requirements a credit union has set forth in order to join them this is a great way to acquire some life insurance. Credit unions offer competitive interest rates and as long as the criteria specific to the credit union are met, and by that I’m referring to the medical and working qualifications, it’s a fairly easy and reliable way to get some life insurance.
By Dean Iggo
While each credit union offers slight variations on the theme life savings insurance discounts can be availed of if you belong to a credit union that offers such a plan and if you are under the age of 70.
There are some other generally accepted standards that seem to be common to most of these discount plans although when seeking quotes it’s always a good idea to look into everything and make sure that you’re comparing apples to apples.
There is a set limit for which a participant can be insured. The amounts that I’ve seen varies from $4,000.00 to $5,000.00. In other words you can save as much as you want and get your account built up to whatever amount you choose but if the limit insured amount is set at $5,000.00 no matter how much your account exceeds that amount you will not be insured for the excess.
In other words, the amount of insurance paid out the time a claim is made is proportional to the amount of money in the savings account-up to the limit of the plan-and the age of the member who passed.
For those who are able to fulfill the requirements a credit union has set forth in order to join them this is a great way to acquire some life insurance. Credit unions offer competitive interest rates and as long as the criteria specific to the credit union are met, and by that I’m referring to the medical and working qualifications, it’s a fairly easy and reliable way to get some life insurance.
By Dean Iggo
Choosing the Best Life Insurance Option for You
Life insurance in the UK is becoming more and more popular with many people now realizing the importance and the benefits of a good life insurance policy. There are two main types of popular life insurance, both of which offer a range of invaluable benefits to UK consumers.
Level Term Life Insurance
Level term life insurance is the most popular type of life insurance policy with UK consumers, and this may be because it is also the cheapest form of insurance. With level term insurance, you and your family can enjoy peace of mind at an affordable price. If you die during the term of this insurance policy, your family will receive a lump sum payment, which can help to cover a number of costs as well as provide some degree of financial security at what will inevitably be a difficult time. The money could assist with costs such as:
Mortgage repayments
Funeral costs
Education costs for the children
Day-to-day living
One of the reasons that level term life insurance is a fair bit cheaper than other life insurance is because the insurer only has to make a payment if the insured party passes away, and even then the insured party has to die during the term of the policy for the next of kin (or the named beneficiary) to be eligible for a payout. One of the great things about levels term insurance is that you can benefit from cover for just a few pounds each week, and because the payments remain the same throughout the term of the policy, you’ll never have to worry about rising payments.
The reason why a level term insurance policy is so called is because the repayment remain level throughout the term of the policy, so you will never have to worry about the cost of your policy rising. The policy is also taken over a fixed term, which is where the ‘term’ part of the policy comes in. This means that you can enjoy easy budgeting and low cost repayments, and you’ll know exactly how long you will be making payment for. On the downside, once the policy expires you will not be able to reclaim any money and the policy will be cancelled, so you will then need to look at taking out alternative life insurance cover.
The average term of a level term life insurance policy – unless otherwise specified – is fifteen years. There are a variety of factors that contribute to the cost of the policy such as whether you go for the most basic package or whether you include a bolt-on such as critical illness cover, whether you are a smoker, your general health, and the term over which you take the policy out.
Whole Life Insurance
Unlike level term life insurance, whole life cover offers a guaranteed payout, which to many people makes it better value for money in the long run. Although the repayments on this type of cover are more expensive than level term insurance, the insurer will make pay out whenever the insured party passes away, so the higher monthly payments will guarantee a payout at some point.
There are a number of different types of whole life insurance policies, and consumers can select the one that best fits their needs and their budget. As with other insurance policies, you can tailor-make your whole life insurance cover to include additional cover such as critical illness insurance. The variations on whole life insurance cover include:
Non-profit UK whole life insurance policies: This is the simplest form of whole life cover, and enables you to enjoy the convenience of level payments through the term of the policy until you die. Upon death, your family received a payout and the policy becomes null and void. If you want to pay a little extra, you can take out a policy that is fixed over a specified term, which means that you will only be making payments for a certain amount of time, but your family will still receive a payout when you die.
With-profit UK whole life insurance: This is a cover and investment type scheme, where your monthly payments are split between your cover premiums and the investment side of your policy. You will enjoy a guaranteed assured sum, and you may find that your insurer adds discretionary bonuses.
Low cost UK whole life insurance: One of the cheapest forms of whole life cover, this type of policy features a decreasing term plan, and the policy is combined with a profits fund. As bonuses are added to the profit side of the policy, the policy term decreases. This provides a cost effective solution for those that want to enjoy the benefits of whole life insurance cover without having to make high monthly payments.
Unitised UK whole life insurance policy: When you purchase this type of whole life cover, you will also be investing in with-profit units. This means that when the insurer makes a payout, the sum awarded will be dependant upon the value of the units in comparison to the value of the death benefit (the payout will be based upon whichever is the highest in value). Each month units are cancelled in order to increase levels of death benefit cover, with reviews carried out from time to time to ensure adequate levels of death benefit cover.
Summary
Both level term insurance policies and whole life policies offer valuable peace of mind to policyholders. The cost of this type of life cover is a small price to pay for the peace of mind that comes with being protected, and you can increase this peace of mind by adding extras such as critical illness to your policy for just a small extra fee.
As a nation, we like to insure just about everything we can…our cars, our homes, our belongings, our pets, and even our credit repayments. It therefore makes sense that we should insure the most important thing of all – our lives.
By Claire Bowes
Level Term Life Insurance
Level term life insurance is the most popular type of life insurance policy with UK consumers, and this may be because it is also the cheapest form of insurance. With level term insurance, you and your family can enjoy peace of mind at an affordable price. If you die during the term of this insurance policy, your family will receive a lump sum payment, which can help to cover a number of costs as well as provide some degree of financial security at what will inevitably be a difficult time. The money could assist with costs such as:
Mortgage repayments
Funeral costs
Education costs for the children
Day-to-day living
One of the reasons that level term life insurance is a fair bit cheaper than other life insurance is because the insurer only has to make a payment if the insured party passes away, and even then the insured party has to die during the term of the policy for the next of kin (or the named beneficiary) to be eligible for a payout. One of the great things about levels term insurance is that you can benefit from cover for just a few pounds each week, and because the payments remain the same throughout the term of the policy, you’ll never have to worry about rising payments.
The reason why a level term insurance policy is so called is because the repayment remain level throughout the term of the policy, so you will never have to worry about the cost of your policy rising. The policy is also taken over a fixed term, which is where the ‘term’ part of the policy comes in. This means that you can enjoy easy budgeting and low cost repayments, and you’ll know exactly how long you will be making payment for. On the downside, once the policy expires you will not be able to reclaim any money and the policy will be cancelled, so you will then need to look at taking out alternative life insurance cover.
The average term of a level term life insurance policy – unless otherwise specified – is fifteen years. There are a variety of factors that contribute to the cost of the policy such as whether you go for the most basic package or whether you include a bolt-on such as critical illness cover, whether you are a smoker, your general health, and the term over which you take the policy out.
Whole Life Insurance
Unlike level term life insurance, whole life cover offers a guaranteed payout, which to many people makes it better value for money in the long run. Although the repayments on this type of cover are more expensive than level term insurance, the insurer will make pay out whenever the insured party passes away, so the higher monthly payments will guarantee a payout at some point.
There are a number of different types of whole life insurance policies, and consumers can select the one that best fits their needs and their budget. As with other insurance policies, you can tailor-make your whole life insurance cover to include additional cover such as critical illness insurance. The variations on whole life insurance cover include:
Non-profit UK whole life insurance policies: This is the simplest form of whole life cover, and enables you to enjoy the convenience of level payments through the term of the policy until you die. Upon death, your family received a payout and the policy becomes null and void. If you want to pay a little extra, you can take out a policy that is fixed over a specified term, which means that you will only be making payments for a certain amount of time, but your family will still receive a payout when you die.
With-profit UK whole life insurance: This is a cover and investment type scheme, where your monthly payments are split between your cover premiums and the investment side of your policy. You will enjoy a guaranteed assured sum, and you may find that your insurer adds discretionary bonuses.
Low cost UK whole life insurance: One of the cheapest forms of whole life cover, this type of policy features a decreasing term plan, and the policy is combined with a profits fund. As bonuses are added to the profit side of the policy, the policy term decreases. This provides a cost effective solution for those that want to enjoy the benefits of whole life insurance cover without having to make high monthly payments.
Unitised UK whole life insurance policy: When you purchase this type of whole life cover, you will also be investing in with-profit units. This means that when the insurer makes a payout, the sum awarded will be dependant upon the value of the units in comparison to the value of the death benefit (the payout will be based upon whichever is the highest in value). Each month units are cancelled in order to increase levels of death benefit cover, with reviews carried out from time to time to ensure adequate levels of death benefit cover.
Summary
Both level term insurance policies and whole life policies offer valuable peace of mind to policyholders. The cost of this type of life cover is a small price to pay for the peace of mind that comes with being protected, and you can increase this peace of mind by adding extras such as critical illness to your policy for just a small extra fee.
As a nation, we like to insure just about everything we can…our cars, our homes, our belongings, our pets, and even our credit repayments. It therefore makes sense that we should insure the most important thing of all – our lives.
By Claire Bowes
Get the Best Insurance Policies Using Online Term Life Insurance Quote
Did you know that you could apply for an insurance policy sitting at home from your own computer? Well the good news is, yes you can do it from home now on your own personal computer. You do not have to look for a pen and paper when your policy has to be renewed or spend time inquiring about the features, prices and the benefits of each and every policy available. You neither have to wait in telephone queues to get information from operators about the policies nor do you have to wait for fifteen to twenty minutes following computerized instructions over the phone and when the line gets cut off accidentally, you find you have to start again from the beginning!
The Internet is the best way to get quotes. It is fast and the technology is accurate and it facilitates multiple quotes on a single site. If you are clear about what you are looking for, with the information available on the Internet, the time required to find the company you want to choose is not much.
Do not opt for a policy that is cheap and remember to check on the company’s status for handling claims and the strength of the company in the market. To check insurers’ monetary positions online, check below Standards and Poor’s and look for any previous complaints against them under Better Business Bureau. It is very important to check that the company you insure with will still operate when your policy will have to be claimed later on.
Make a list of reputed companies that you would like to consider and visit their websites. Do not just look at the prices - the other things you need to take into consideration are the terms, conditions and the benefits that companies offer.
Term life insurance is a policy in which death is covered for a fixed period of time, from five until thirty years. If one outlives the policy term, there is no sum paid to the insurer. Money could be only claimed if death occurs during the time frame when the policy is in force or is present.
If you get a policy when you are young it will work out cheaper as they become expensive when bought in your middle age and ten times the original amount when you are sixty or above. The premium is not very high when you start a life insurance policy when you are young.
When you are not satisfied with your term life insurance and you have received a reminder from the company and are perhaps thinking of not continuing with it, you could check online for insurance quotes. You could choose from them as each company has something different to offer.
During your first cover, if your cholesterol was high and you smoked and were overweight, all these things meant a low premium. Now if you want to renew or get a fresh policy get your physical examination done to see if your health has improved. Get standard policies because most often, these policies are cheaper than the customized ones. Try saving money by paying the premiums automatically from your account to avoid getting bills.
Before you decide which policy you want to buy make sure you go through at least four to five insurance quotes and before you sign up or pay for them, be 100% sure about the company you are getting your insurance from.
Using the Internet is not very difficult and it is fast. You must use insurance quotes available online. This could help you save a lot of money annually and make you confident about the insurance company you have chosen. The last most important thing is always take time to go through the conditions and terms and other fine print that is related to the policy you want to take.
By Jill Kane
The Internet is the best way to get quotes. It is fast and the technology is accurate and it facilitates multiple quotes on a single site. If you are clear about what you are looking for, with the information available on the Internet, the time required to find the company you want to choose is not much.
Do not opt for a policy that is cheap and remember to check on the company’s status for handling claims and the strength of the company in the market. To check insurers’ monetary positions online, check below Standards and Poor’s and look for any previous complaints against them under Better Business Bureau. It is very important to check that the company you insure with will still operate when your policy will have to be claimed later on.
Make a list of reputed companies that you would like to consider and visit their websites. Do not just look at the prices - the other things you need to take into consideration are the terms, conditions and the benefits that companies offer.
Term life insurance is a policy in which death is covered for a fixed period of time, from five until thirty years. If one outlives the policy term, there is no sum paid to the insurer. Money could be only claimed if death occurs during the time frame when the policy is in force or is present.
If you get a policy when you are young it will work out cheaper as they become expensive when bought in your middle age and ten times the original amount when you are sixty or above. The premium is not very high when you start a life insurance policy when you are young.
When you are not satisfied with your term life insurance and you have received a reminder from the company and are perhaps thinking of not continuing with it, you could check online for insurance quotes. You could choose from them as each company has something different to offer.
During your first cover, if your cholesterol was high and you smoked and were overweight, all these things meant a low premium. Now if you want to renew or get a fresh policy get your physical examination done to see if your health has improved. Get standard policies because most often, these policies are cheaper than the customized ones. Try saving money by paying the premiums automatically from your account to avoid getting bills.
Before you decide which policy you want to buy make sure you go through at least four to five insurance quotes and before you sign up or pay for them, be 100% sure about the company you are getting your insurance from.
Using the Internet is not very difficult and it is fast. You must use insurance quotes available online. This could help you save a lot of money annually and make you confident about the insurance company you have chosen. The last most important thing is always take time to go through the conditions and terms and other fine print that is related to the policy you want to take.
By Jill Kane
What Is A Cheap Life Insurance Quote
The following suggestions should be able to allow you a thorough insight on how to go about acquiring a cheap life insurance.
1. Cheap life insurance policies are of a permanent nature and incorporate your desired coverage till the time the insurance elapses. Therefore, it is suggested that you plan well and select a suitable cheap life insurance that benefits your nominees and you. All you require is a cheap quote which entails more benefits. An experienced insurance agent should help guide you in choosing the right quote and the right cheap life insurance.
2. Opt for a life insurance that covers long term benefits of your loved ones and you.
3. Evaluate in depth the various cheap life insurance quotes you have received. Shopping for them would be time consuming, but useful. You could also obtain the information you need from the insurance companies websites. You could also ask the opinion of friends, relatives, or office colleagues on how best to seek a cheap life insurance quote and how to go about buying a suitable policy.
4. You should compare the quotes received, However, do not be carried away by insurance companies offering low premiums or too many benefits (these could be fraudulent companies out to make a fast buck at your expense). You should specifically note that higher life insurance premiums would have to be paid in case you are a smoker and have a history of using tobacco or if you are suffering from a chronic illness. The insurance company would obtain a copy of your past and current medical history as well. They would like you to furnish them with your personal information too. This personal information would be secured and no third party can have access to it. With ever increasing traffic, the internet has been flooded by conmen and cheats, who pose as life insurance providers and swindle your valuable money and misuse your name and credentials.
5. You could effect payment of premiums and the necessary insurance company’s fee through a secure internet channel without any difficulty. However, you would be required to use your credit card for this purpose. And, within a very short period of time your insurance policy is either delivered to you online or dispatched to your address.
By Sagi Venkata Ramana
1. Cheap life insurance policies are of a permanent nature and incorporate your desired coverage till the time the insurance elapses. Therefore, it is suggested that you plan well and select a suitable cheap life insurance that benefits your nominees and you. All you require is a cheap quote which entails more benefits. An experienced insurance agent should help guide you in choosing the right quote and the right cheap life insurance.
2. Opt for a life insurance that covers long term benefits of your loved ones and you.
3. Evaluate in depth the various cheap life insurance quotes you have received. Shopping for them would be time consuming, but useful. You could also obtain the information you need from the insurance companies websites. You could also ask the opinion of friends, relatives, or office colleagues on how best to seek a cheap life insurance quote and how to go about buying a suitable policy.
4. You should compare the quotes received, However, do not be carried away by insurance companies offering low premiums or too many benefits (these could be fraudulent companies out to make a fast buck at your expense). You should specifically note that higher life insurance premiums would have to be paid in case you are a smoker and have a history of using tobacco or if you are suffering from a chronic illness. The insurance company would obtain a copy of your past and current medical history as well. They would like you to furnish them with your personal information too. This personal information would be secured and no third party can have access to it. With ever increasing traffic, the internet has been flooded by conmen and cheats, who pose as life insurance providers and swindle your valuable money and misuse your name and credentials.
5. You could effect payment of premiums and the necessary insurance company’s fee through a secure internet channel without any difficulty. However, you would be required to use your credit card for this purpose. And, within a very short period of time your insurance policy is either delivered to you online or dispatched to your address.
By Sagi Venkata Ramana
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