Life Insurance
Understanding Life Insurance
Life insurance is basically a contract between an insurer and an insurance provider, in which the insurer pledges to pay out a designated amount of cash to an insured party, on the demise of that insured individual, for a specified period of time. The premium paid by the insured amounts to a lump sum, known as the face value of the policy. This sum of money is held by the insurer, and in case of the insured's death, the insurer then repays the amount owed to the policy holder through monthly premiums. The amount that is due depends on several factors, such as the age of the person insured, the policy amount, the premium paid by the insured, and the policy holder's health at the time of death. Most commonly, term life insurance policies last for the lifetime of the insured only, but there are special life insurance contracts with additional provisions for variable life insurance policies. For more tips on helping your dollars, click here.
Variable life insurance contracts allow the premium payments to vary with the fluctuations in the values of financial markets. The term of the life insurance contract usually extends until the person who insured has reached the age of ninety-five years old, or until death. In some cases, however, the life insurance company may elect to end the contract early, before the insured gets to this age. The premiums paid by the insured will then be refunded to the beneficiaries upon death or within a specified period of time after death, depending on the contract. The beneficiaries will then use the lump sum obtained from the premiums to buy life insurance of their own.
Some people purchase additional insurance coverage for their families in the event of their deaths. This helps cover the funeral expenses and allows the family to pay for the mortgage on the house, provide for the education of the children, pay for the home maintenance and other expenses, etc. It is very important that you carefully review the needs of your family, prior to purchasing life insurance coverage. Also take into account your personal situation, and your ability to make large deposits into an insurance trust, should you die. This will help cover your loved ones' funeral expenses, as well as other unforeseen bills that are not considered to be part of the basic policy. To know when is the time to rebound, visit this website.
Some life insurance contracts also allow the beneficiary to choose between term and whole life insurance. Term insurance lasts only for a pre-specified amount of time, while whole life insurance covers the insured's entire life, and is usually sponsored by employers and secured by stock certificates. If an insured dies during the term of the policy, his/her dependents receive the death benefits before the maturity of the term. If the insured had insured his whole life, his survivors would receive the full death benefits.
A life insurance policy could help cover many problems and solve many problems. For example, if your spouse had several credit cards, and you were able to prove that they each had less than the fair market value balance, then you might be able to divorce and get half of the money you owe them. Or, if your spouse was currently paying off outstanding student loans, then you could use the cash payment to pay those loans. Or if your spouse were supporting you through your college years and you had considered paying off your first house on a line of equity that gradually increased, then a life insurance policy could help you out.
But don't think that just because you've lived this long you don't have any children, or that you don't need to worry about any potential problems. If you're planning ahead, you'll be better prepared to deal with unexpected problems, and to help your family deal with them when they arise. Life insurance isn't just something that old people sell for charity. It is one of the most effective financial tools available and should never be ignored.
Read more at http://www.huffpost.com/entry/life-insurance-facts-need-know_l_5d2c00c5e4b0060b11eebd78.
Variable life insurance contracts allow the premium payments to vary with the fluctuations in the values of financial markets. The term of the life insurance contract usually extends until the person who insured has reached the age of ninety-five years old, or until death. In some cases, however, the life insurance company may elect to end the contract early, before the insured gets to this age. The premiums paid by the insured will then be refunded to the beneficiaries upon death or within a specified period of time after death, depending on the contract. The beneficiaries will then use the lump sum obtained from the premiums to buy life insurance of their own.
Some people purchase additional insurance coverage for their families in the event of their deaths. This helps cover the funeral expenses and allows the family to pay for the mortgage on the house, provide for the education of the children, pay for the home maintenance and other expenses, etc. It is very important that you carefully review the needs of your family, prior to purchasing life insurance coverage. Also take into account your personal situation, and your ability to make large deposits into an insurance trust, should you die. This will help cover your loved ones' funeral expenses, as well as other unforeseen bills that are not considered to be part of the basic policy. To know when is the time to rebound, visit this website.
Some life insurance contracts also allow the beneficiary to choose between term and whole life insurance. Term insurance lasts only for a pre-specified amount of time, while whole life insurance covers the insured's entire life, and is usually sponsored by employers and secured by stock certificates. If an insured dies during the term of the policy, his/her dependents receive the death benefits before the maturity of the term. If the insured had insured his whole life, his survivors would receive the full death benefits.
A life insurance policy could help cover many problems and solve many problems. For example, if your spouse had several credit cards, and you were able to prove that they each had less than the fair market value balance, then you might be able to divorce and get half of the money you owe them. Or, if your spouse was currently paying off outstanding student loans, then you could use the cash payment to pay those loans. Or if your spouse were supporting you through your college years and you had considered paying off your first house on a line of equity that gradually increased, then a life insurance policy could help you out.
But don't think that just because you've lived this long you don't have any children, or that you don't need to worry about any potential problems. If you're planning ahead, you'll be better prepared to deal with unexpected problems, and to help your family deal with them when they arise. Life insurance isn't just something that old people sell for charity. It is one of the most effective financial tools available and should never be ignored.
Read more at http://www.huffpost.com/entry/life-insurance-facts-need-know_l_5d2c00c5e4b0060b11eebd78.
What Is Cash Value Life Insurance?
There are some people who are unfamiliar with the term cash value life insurance. It is easy to obtain coverage through this type of policy. You can purchase permanent life policies over the mail and from several different companies. You do not have to have a co-signer to purchase this type of policy. Cash value life policies, also called permanent life insurance, actually does two things for you. Read more about your policy's death benefit at this link.
First, it protects the policyholder by paying out the death benefit even if the policyholder is no longer alive. This way, the policyholder has extra money to make mortgage payments, pay college tuition, and take care of other loved ones. By paying cash value life insurance premiums each month, the policyholder receives the death benefit and can use the money in one of several ways. The policyholder can take the cash value of the policy and either pay off existing debts or purchase more permanent insurance that will cover their dependents in the event of the policyholder's death.
One of the most popular ways that cash value life insurance providers use the death benefit is to pay beneficiaries out to various investment accounts. In order to determine how much to pay out each month, the insurance provider will take the monthly premiums and apply it to the investment account. If the investments return a high rate of interest, the insurance provider can make money. If the investments return a low rate of interest, the insurance provider can absorb the loss and pay out less monthly premiums. Most policies allow you to select one of several investment accounts that you can place your money into. These accounts generally have minimum deposits, but the policyholder can choose the account they want to be deposited in. Click here to get a free consultation.
Another way that cash value life insurance providers use the death benefit to pay out benefits is by making the payments out to the named beneficiaries. Under this system, if you die and no beneficiaries are listed, the insurance company makes the payments to your named beneficiary. Usually you have up to nine people that you can select from to receive these payments. Once you pass away, the insurance company takes possession of the cash value life insurance policy and issues a withdrawal notice to your named beneficiaries.
You should not think that cash value life insurance means that you will never have to pay premiums. Insurance providers base the amount they pay out on the assumption of a set rate of return for the policy. As with other forms of life coverage, the amount of your monthly premium will depend on what the risk of death is and the amount of your investments. Policyholders can select from several investment options and make contributions to their chosen investment accounts. Most policies also allow the policyholder to convert the policy into an annuity, which allows the policy to be protected against a lack of interest. However, most insurance companies only allow policies to be converted if the cash value is adequate to cover the investment costs.
If you decide that a cash value life insurance policy is the best type of coverage for you, there are several things you should consider before purchasing such a policy. First, you should look at how much the premiums would cost on a monthly basis. Second, you should make sure that you are getting enough coverage by comparing the death benefit with the monthly premiums. Lastly, it is important that you take the time to compare different companies' rates and premiums to ensure that you get enough coverage to meet your needs.
Find out more at http://www.youtube.com/watch?v=QeDkVQP-PGU.
First, it protects the policyholder by paying out the death benefit even if the policyholder is no longer alive. This way, the policyholder has extra money to make mortgage payments, pay college tuition, and take care of other loved ones. By paying cash value life insurance premiums each month, the policyholder receives the death benefit and can use the money in one of several ways. The policyholder can take the cash value of the policy and either pay off existing debts or purchase more permanent insurance that will cover their dependents in the event of the policyholder's death.
One of the most popular ways that cash value life insurance providers use the death benefit is to pay beneficiaries out to various investment accounts. In order to determine how much to pay out each month, the insurance provider will take the monthly premiums and apply it to the investment account. If the investments return a high rate of interest, the insurance provider can make money. If the investments return a low rate of interest, the insurance provider can absorb the loss and pay out less monthly premiums. Most policies allow you to select one of several investment accounts that you can place your money into. These accounts generally have minimum deposits, but the policyholder can choose the account they want to be deposited in. Click here to get a free consultation.
Another way that cash value life insurance providers use the death benefit to pay out benefits is by making the payments out to the named beneficiaries. Under this system, if you die and no beneficiaries are listed, the insurance company makes the payments to your named beneficiary. Usually you have up to nine people that you can select from to receive these payments. Once you pass away, the insurance company takes possession of the cash value life insurance policy and issues a withdrawal notice to your named beneficiaries.
You should not think that cash value life insurance means that you will never have to pay premiums. Insurance providers base the amount they pay out on the assumption of a set rate of return for the policy. As with other forms of life coverage, the amount of your monthly premium will depend on what the risk of death is and the amount of your investments. Policyholders can select from several investment options and make contributions to their chosen investment accounts. Most policies also allow the policyholder to convert the policy into an annuity, which allows the policy to be protected against a lack of interest. However, most insurance companies only allow policies to be converted if the cash value is adequate to cover the investment costs.
If you decide that a cash value life insurance policy is the best type of coverage for you, there are several things you should consider before purchasing such a policy. First, you should look at how much the premiums would cost on a monthly basis. Second, you should make sure that you are getting enough coverage by comparing the death benefit with the monthly premiums. Lastly, it is important that you take the time to compare different companies' rates and premiums to ensure that you get enough coverage to meet your needs.
Find out more at http://www.youtube.com/watch?v=QeDkVQP-PGU.
Understanding Your Options When Buying Life Insurance For Someone You Love
Life insurance, also known as life assurance, is simply a contract between a policyholder and an insurance company or insurer, in which the insurer promises to pay out a designated beneficiary an amount of cash upon the death of that insured individual. There are several types of life insurance policies, each having its own benefits and drawbacks. A life insurance policy can either be an individual life insurance policy, family life insurance policy, or group life insurance policy. The main types of life insurance policies are named life policy, term life policy, a variable life policy, universal life policy, and whole life policy. A term life policy, also called pure insurance, is one that does not provide any type of cash value. Instead, it offers certain level benefits to the insured for a predetermined period of time. Click here to get a free consultation.
Variable life insurance, also called universal insurance, gives the insured a lump sum of cash upon death. A variable life policy is very different from the rest because it does not have any kind of death benefit. Instead, the cash value of this type of insurance pays out depending on the performance of the investments made by the policyholder. Some policies pay out the whole death benefit while others pay out a specified percentage of the whole death benefit.
Family permanent life insurance is like a trust that has a number of specified beneficiaries. These beneficiaries are entitled to receive payments from the estate of the insured upon death of the insured. A few kinds of life insurance policies include single and joint permanent life insurance policies. A joint permanent life insurance provides coverage to two people; while a single permanent life insurance policy provides coverage only to one person, regardless of his or her beneficiaries. If there are no specified beneficiaries, then the remaining assets will be distributed according to a random lottery. Find a policy to offer protection here!
The term life insurance policy type offers a number of options. It can provide coverage for up to ten or fifteen years. Furthermore, it allows the premium to be varied annually. For the policyholders who wish to invest the money received as premiums, term life insurance provides that opportunity. The amount of the premiums, however, is based on the age and the number of years for which they are insured. For example, an individual who was twenty at the time of his application and who has insured his life for fifteen years is eligible to buy a term life insurance policy type that would provide him with coverage until he reaches the age of sixty-five at the end of the policy.
The whole life insurance sold is a product that is sold to cover all the risks and expenses that a person may encounter in his lifetime. This insurance type is generally more expensive than any other type of insurance product. However, it does offer the insured a greater degree of flexibility when it comes to investing. Some people prefer this insurance type because of its investment possibilities. Some policies allow the premium to be invested either by the insurance provider or by the client himself.
Regardless of the reasons why you need life insurance for your loved ones or whether you have bought one through an agent or directly, it is always important that you understand the terms and conditions of the contract. Do not forget to ask about renewal premiums. Also, read the fine print so you know what you are getting into. Asking questions is not a sign of weakness but of concern for your loved ones or yourself. Remember, when buying life insurance for someone you love, you never want to be surprised by what is in the contract.
To know more, check out http://www.huffpost.com/entry/time-to-check-your-life-insurance-policy_b_59c1d4a4e4b0f96732cbca49.
Variable life insurance, also called universal insurance, gives the insured a lump sum of cash upon death. A variable life policy is very different from the rest because it does not have any kind of death benefit. Instead, the cash value of this type of insurance pays out depending on the performance of the investments made by the policyholder. Some policies pay out the whole death benefit while others pay out a specified percentage of the whole death benefit.
Family permanent life insurance is like a trust that has a number of specified beneficiaries. These beneficiaries are entitled to receive payments from the estate of the insured upon death of the insured. A few kinds of life insurance policies include single and joint permanent life insurance policies. A joint permanent life insurance provides coverage to two people; while a single permanent life insurance policy provides coverage only to one person, regardless of his or her beneficiaries. If there are no specified beneficiaries, then the remaining assets will be distributed according to a random lottery. Find a policy to offer protection here!
The term life insurance policy type offers a number of options. It can provide coverage for up to ten or fifteen years. Furthermore, it allows the premium to be varied annually. For the policyholders who wish to invest the money received as premiums, term life insurance provides that opportunity. The amount of the premiums, however, is based on the age and the number of years for which they are insured. For example, an individual who was twenty at the time of his application and who has insured his life for fifteen years is eligible to buy a term life insurance policy type that would provide him with coverage until he reaches the age of sixty-five at the end of the policy.
The whole life insurance sold is a product that is sold to cover all the risks and expenses that a person may encounter in his lifetime. This insurance type is generally more expensive than any other type of insurance product. However, it does offer the insured a greater degree of flexibility when it comes to investing. Some people prefer this insurance type because of its investment possibilities. Some policies allow the premium to be invested either by the insurance provider or by the client himself.
Regardless of the reasons why you need life insurance for your loved ones or whether you have bought one through an agent or directly, it is always important that you understand the terms and conditions of the contract. Do not forget to ask about renewal premiums. Also, read the fine print so you know what you are getting into. Asking questions is not a sign of weakness but of concern for your loved ones or yourself. Remember, when buying life insurance for someone you love, you never want to be surprised by what is in the contract.
To know more, check out http://www.huffpost.com/entry/time-to-check-your-life-insurance-policy_b_59c1d4a4e4b0f96732cbca49.
