It is undeniable that nowadays getting your life insured is already a necessity and not just an option which you can avail or not. With all the things that you have in mind, you know that your loved ones occupy the topmost priority. The hard work that you give and all the expectations that you have in mind all focus on your kids, your spouse, your home and all the things that are needed for you to live comfortably. Well, that is if you have that usual love for them.
But as we all know, nothing is permanent in this world and whether you like it or not you soon have to leave them. To be prepared for these moments, getting life insurance quotes as early as possible is the best move to do. A life insurance does not only provide your family with assurance that they can continue their life in case you meet death in the corner. But life insurance is not as grim as it may sound like. Once you get to the know its basics and the process that are involved, you’ll realize that it’s not as hard as it seems. Simply put, a life insurance is an agreement that you have to make with your insurer (insurance company) by way of written and legal documents.
Apparently, there are three generalized kinds of life insurance namely the term life insurance, whole life insurance and universal insurance. These three have different characteristics as well as advantages. Each type suits different capacities of people to pay too. This article however aims to discuss the preliminaries of what we call a term life insurance.
Term life insurance is considered the simplest and cheapest kind of life insurance. Unlike other life insurance policies, the coverage of term life insurance is fixed. Once the policy expires, then the coverage has ended. But you can renew your policy by simply making arrangements with your insurance company. To make the policy work, you need to pay the premium required. In traditional term life insurance policies, premiums are even fixed and do not change from time the policy is purchased.
The best feature of term life insurances is that when the policy expires, the death benefit or the sum of money acquired from your premiums will be given to you (of course no death happens). This is advantage to your part since the money can be used in different purposes like paying for a loan or mortgage, taxes and other payables that need a larger amount of money. It can alos be used a capital for a buy and sell business. It serves as a preparation for an untimely death and a savings account at the same time.
If however you meet death on that particular period of time covered by the policy, the beneficiaries that you have put in your policy can continue to the standard of living they have when you were still there. The death benefit can also be used to pay for educational expenses and daily subsistence. In other words, you can still extend the love that you have for them even of you are dead. It’s not a creepy thing to imagine, just a practical way of preparing for the uncertainties in life. So the next time you have your salary, think of putting some amount aside for your future, like a term life insurance perhaps?
Wednesday, June 30, 2010
Tuesday, June 29, 2010
What is Whole Life Insurance?
No matter how strong you feel or how healthy you are since you are a baby, things can change in a moment. That old-aged you dream of can sometimes be left unreached. That future you have built in your mind for your child can slip away from your hands without you knowing it. Death, premature or anticipated, is something that no one has the power to predict. Everyone knows that and though it may sound like inviting death itself, it would be better to be prepared than be caught off-guard by it. Especially if you have people whose lives wholly depend on you.
The list of the benefits that life insurance has is quite long. But it can be summarized into one simple sentence- it’s ensuring your dependents’ of a better future. No one knows when a person can die, hence, saving and being prepared for it is the best tool of, let’s say, dying with no doubts. Apparently, there are different types of life insurance policies. Part of getting a life insurance policy is the need to make choice. This article then focuses on the meaning and processes involved in whole life insurance policies.
A whole life insurance policy is a kind of life insurance that is permanent. Whole life insurance is different from the rest because it can build a tax deferred cash value which you can in turn borrow whenever you need it. The whole life insurance premium that you have to pay monthly will usually stay the same for life. For some who are lucky, they can even decrease as time goes by. A part of the premiums that you pay to your insurance company can build up savings. The accumulated savings are then used by the company to invest on profitable businesses or as agreed. The interest rate that will be returned by the investment made is added to the savings of your policy. You may borrow against the policy with the current interest loan only. The borrowed money will be subtracted to the death benefit and cash surrender value that is allotted for your beneficiaries. If you want to surrender your policy already, the cash values that are guaranteed will be given to you.
Availing whole life insurance policies is a good choice. For one, it will enable your savings to increase without you adding any amount of your premium. In just a little span of time, you can even borrow money from it. This is especially very helpful in urgent cases where you have no one to turn to. Plus, if you have saved a lot of the interest made from your premium’s investment, then there is a tendency that you can borrow more money. In case too that you decide to withdraw your policy, you can bring back what you have saved.
But of course, a good life insurance policy will not be carried our smoothly without a reliable insurance company. Above all, you need to be critical in your choosing so that you will not be wasting too much effort and expectations. Still, even if you pick other kinds of life insurance policies, be sure that you can play your part too until the end. If not, getting a life insurance is just a useless action.
The list of the benefits that life insurance has is quite long. But it can be summarized into one simple sentence- it’s ensuring your dependents’ of a better future. No one knows when a person can die, hence, saving and being prepared for it is the best tool of, let’s say, dying with no doubts. Apparently, there are different types of life insurance policies. Part of getting a life insurance policy is the need to make choice. This article then focuses on the meaning and processes involved in whole life insurance policies.
A whole life insurance policy is a kind of life insurance that is permanent. Whole life insurance is different from the rest because it can build a tax deferred cash value which you can in turn borrow whenever you need it. The whole life insurance premium that you have to pay monthly will usually stay the same for life. For some who are lucky, they can even decrease as time goes by. A part of the premiums that you pay to your insurance company can build up savings. The accumulated savings are then used by the company to invest on profitable businesses or as agreed. The interest rate that will be returned by the investment made is added to the savings of your policy. You may borrow against the policy with the current interest loan only. The borrowed money will be subtracted to the death benefit and cash surrender value that is allotted for your beneficiaries. If you want to surrender your policy already, the cash values that are guaranteed will be given to you.
Availing whole life insurance policies is a good choice. For one, it will enable your savings to increase without you adding any amount of your premium. In just a little span of time, you can even borrow money from it. This is especially very helpful in urgent cases where you have no one to turn to. Plus, if you have saved a lot of the interest made from your premium’s investment, then there is a tendency that you can borrow more money. In case too that you decide to withdraw your policy, you can bring back what you have saved.
But of course, a good life insurance policy will not be carried our smoothly without a reliable insurance company. Above all, you need to be critical in your choosing so that you will not be wasting too much effort and expectations. Still, even if you pick other kinds of life insurance policies, be sure that you can play your part too until the end. If not, getting a life insurance is just a useless action.
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