How To Find Affordable Life Insurance Policies

All of us try to make our future secure. More than that we all try to make our family`s future secure. Though we are leading a peaceful and well settled life sometime we get awed by the unseen thought that if some untoward happen to us and our happy and secure family may come on the road. To think negative is not a good habit but so many such incidents happen in front of us every day that we can not avoid thinking about ourselves and get worried. So, to guaranty our and our family’s future we go for life insurance policies. But, here comes the question as which policy is affordable for us.

Before speaking about affordable life insurance policies it is necessary to first categories the section of people for whom the policies are meant for. Normally, there are three sections of people in our society i.e. rich, middle class and poor.

The poor sections are satisfied if they get their daily meal, some clothes and a shelter. They earn on daily basis and buy daily food for the family. They can hardly think about their future security. Further, they are not so aware about life insurance policies. If they are little bit literate then they keep some saved money in the bank.

In a middle class family the main source of income is job, agriculture or small business. The middle class people are the most aware about life insurance policies as they feel not so safe about other investment policies. These days, almost all the grown up members in a middle class family are well educated and earning either taking job or some other fields. So in such cases it is easy to take affordable life insurance policies for them. They should prepare a monthly budget of all the essential expense. Suppose an individual can save Rs 2000/- per month then he can choose Rs 12000/- half yearly premium policy. After deciding the amount of premium as how much you can afford it is to decide as which type of policy you want to go for. In the market there are so many types of policies like critical illness cover, accident cover, education, to protect the assets etc. So we can decide as which one suits us. Normally, only the head of the family worry to go for life insurance policies. But if the children are also working or earning it is better if they can also go for such policies according to their income.

As the rich section of people has big properties vast empire of business they normally have their own consultant for investment. Still, it is better for them to insure their property buy life insurance policies for self and family members to guaranty a secure future, as no one knows what happens tomorrow.

As we know that the amount of premium of life insurance policies is exempted from income tax it is always wise to calculate the income tax before going for the policies. This will do double profit of tax saving and a secure future as well.

5 Factors to Consider When Choosing a Senior Life Insurance Policy

Finding an online senior life insurance policy is not necessarily easy considering the many offers available online. Therefore, it takes effort and time to find a life insurance policy that meets the needs and budget of an insurance shopper. Some of the factors that need to be considered when choosing a senior life insurance term include:

· Do you need the insurance cover?

You will discover that not everyone needs the online senior life insurance policy. In case you are young, single and do not have dependents you may not need the seniors term policy. In such circumstances you are advised to consider other insurance policies such as the 30 year term policy to cater for your days of retirement.

· Type of insurance policy

There are many types of insurance covers available including the simplest annual plan to the whole life insurance policy. To learn more about the product policies you can consider seeking for advice. Depending with your needs you will need to find an appropriate policy. Determine how long you will need the insurance cover. Find out whether you need the term or the specific term insurance policy.

· The cover that you will need

Insurance shoppers are normally encouraged to buy a policy that is about 8-10 times the annual income of the insurance shopper. To choose the right cover you need to determine where and how the insurance benefits will be used. The benefits are normally channeled to the beneficiaries.

In addition, they can be used to pay off any debts or loans, cater for pre-existing medical conditions, cater for the children’s college education, cater for funeral costs and other liabilities. Therefore, it is important to choose a policy that is enough to cover all possible expenses that the dependents may have.

· The company’s background

The background of the company helps to facilitate an informed decision. It is advisable to consider choosing a provider with a good record of handling customers. By reading through the clients’ reviews, referees and recommendations you will get an idea whether the service provider is good or not.

· The company’s premiums

The premiums charged by different service providers vary among different companies. Each of the companies endorses a different format for computing the risks as well as deriving the premiums. Therefore, it is important to find as many quotes as possible to compare. This way, the insurance shopper will avoid paying exorbitant rates for their insurance policy.

Life Insurance Policies: Term vs Permanent

When it comes to purchasing life insurance, deciding which kind of policy to buy can be a challenge. But by learning about the characteristics of available life insurance policies and working together with an experienced life insurance agent, you’ll be able to choose the right policy to protect your loved ones.

Term Life Insurance

As the name suggests, term life insurance provides coverage for a certain period of time, as specified in your policy. This means that a death benefit will only be paid out if you die within your policy’s term. Because of this central characteristic, term life insurance policies tend to be much cheaper than permanent life insurance policies–making it a very appealing option to young adults or families who can’t spend a lot on life insurance.

Though term life insurance comes in two forms–level term (pays the same death benefit no matter when you die during the term) and decreasing term (the death benefit decreases throughout the duration of the policy)–level term policies are by far the most popular.

According to the Insurance Information Institute (I.I.I.) common types of level term policies are:

  • Annual (least popular)
  • 5 year
  • 10 year
  • 15 year
  • 20 year (most popular)
  • 25 year
  • 30 year

Many term life insurance policies are renewable, which means that you may be able to reinstate your policy after the term ends, although reinstatement may be contingent on passing a medical exam and will likely involve an increased premium. Additionally, the I.I.I. reports that most insurers will not renew a policy ending after 80 years of age.

Premiums for term life insurance are typically based on your age and health status at the time the policy is written. Some insurers guarantee your premiums to stay the same throughout the length of the term, but others may not make that guarantee (and increase your premiums throughout the term)–so be sure you’re aware of premium provisions before signing a policy.

Life insurance tip: Buying life insurance when you’re young and healthy will help you secure low premiums. Not a spring chicken? Take care of your health–stop smoking and exercise regularly to get the lowest insurance premium.

Permanent Life Insurance

Unlike term life insurance, permanent life insurance pays a death benefit whether you die they day after you sign the policy or 50 years later. Permanent life insurance policies are also appealing because of their ability to grow tax-deferred over a certain length of time–which can result in a large chunk of change. This cash value can be used in a variety of ways, providing additional benefits to policyholders and their families.

Because of these characteristics, permanent life insurance policies tend to be more expensive than term policies, which may not be conducive for young adults or families with income limitations.

Life insurance tip: Some term life policies can be converted to permanent life insurance policies, so if you’re interested in a permanent policy but can’t afford the premiums, ask your agent about term policies with this feature.

Permanent life insurance policyholders also have a wide array of policy options to choose from. The four common types of permanent life insurance are whole, universal, variable and variable-universal.

Whole life policies are the most common form of permanent life insurance and offer both a death benefit and the additional benefit of a savings account. If you buy a whole life policy, you agree to pay a certain amount for a predetermined death benefit. And, unlike a term life policy, whole life policies have the potential to earn annual dividends–which will earn interest if you let them accrue.

Universal life policies offer more flexibility, allowing you to vary how much you pay and when you make premium payments (with some limitations, of course). You may also be able to obtain a larger death benefit, provided you pass a medical exam, and like whole life policies, your universal policy may earn cash value over time.

Variable life policies incorporate a death benefit with a savings account that you can invest in stocks, bonds or mutual funds. While this may increase the value of your policy, it’s important to remember that if your investments don’t perform well, your death benefit will decrease. To avoid this, the I.I.I. says you can ask about variable policies that guarantee that the death benefit will not fall below a certain amount.

Variable-universal policies combine the features of variable and universal life policies, meaning that you have the investment options of a variable policy and the flexibility of premium payments of a universal policy.

Which Policy is Right for You?

Now that you have some idea of what policy options appeal to you, take the time to speak with a licensed life insurance professional that can answer questions and help you come closer to your life insurance decision. Because when you have all the facts, it makes finding affordable life insurance that much easier!