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| > Life Assurance Coverage
» Life Insurance Explanation
Life insurance or life assurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a sum of money upon the occurrence of the insured individual's or individuals' death. According to the same contract the buyer of the policy has to pay a certain sum called a premium either at once or at regular intervals. As with most insurance policies, life insurance is a contract between the insurer and the policy owner (policyholder) whereby a benefit is paid to the designated Beneficiary (or Beneficiaries) if an insured event occurs which is covered by the policy. The life insurance cover the following events:
Death.
Accidental death.
Insured’s sickness.
It is a legal contract, which describe the limitations of the insured events. Specific exclusions are often written into the contract to limit the liability of the insurer; for example claims relating to suicide (after 2 years suicide has to be paid in full)(in India after one year Suicide is covered), fraud, war, riot and civil commotion. Life based policies can be divided into 2 types:
Protection policies. This type of life insurance provides a payout in the case of a certain event. The buyer of this policy pays a certain some of money in regular periods of time. In fact in most cases it is a term life insurance. In investment policies regular or single premiums facilitate the sum of the benefit.
» Choosing The Best Insurance Company
It is natural that after deciding to buy a life insurance you want to find an insurance company that offers the best terms and conditions. In the modern market the choice is so wide that it is very difficult to choose an insurance company that really suits you. There are more than 2,000 companies only on the territory of the USA. You can buy a life insurance directly from an insurance company or through agents. Before purchasing a policy, check the company's financial condition. Of course the agent can answer all your questions, but it will be safer to go to the state’s insurance department and to ask them. It is also important to make sure that this insurance company is licensed in your state.
» Variable Insurance
Variable universal life insurance policy offers a choice of death benefit guarantees and investment opportunities. Variable universal life supposes a payout to the beneficiary and to you during your life. Variable universal Life Insurance is for those who have a need for a life insurance, who have longer time frames to weather the market, who want to control over where their net premium dollars are located and who are interested in the potential for higher, tax-deferred cash value returns and who are ready to accept greater risk.
Advantages:
Variable universal life insurances allow you to change the process of paying premiums if your needs and goals change. They can be increased, decreased or not paid at all. Your cash value will be accumulated more rapidly.
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| » Useful Insurance Tips |
Tips for the life insurance buyers.
1. Understand why you need it. While most people may need life insurance at some point in their life, don't buy a policy just because you heard it was a good idea. Life insurance is designed to provide families with financial security in the event of the death of a spouse or parent. Life insurance protection can help pay for mortgages, a college education, help to fund retirement, provide charitable bequests and of course is a key element in estate planning. In short, if others depend on your income for support, you should strongly consider life insurance.
2. Determine the amount of coverage you need. The amount of money your family or heirs will receive after your death is called a death benefit.
3. Find the right type of policy. Once you've got an estimate of how much insurance you'll need, it's time to think about the type of policy that best fits your needs. Today life insurance comes in many varieties, but there are four basic types term, whole life, universal life, and variable life.
4. Look at the quality of the company. An insurance policy is only as good as the company that backs it. You want to know for certain that the company that issues your policy will be around to service it and eventually pay the death claim.
5. Consult an agent. First, an agent can help you factor in the other "human' elements into your insurance equations to help you determine the right amount of insurance. Your relationship with the agent has no time limitation. With the help of the agent your coverage will be updated when your needs change. They can help you guide you through a lifetime of financial decisions, giving you one less thing to worry about.
6. Make sure you understand and know the meaning of all words that are used in this sphere. You can come across such words as cash value, premium, dividends, death benefit. If you don’t know such terms you will hardly understand anything in what the agent tells you.
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