We all have different needs and wants in our lives, but one thing that most of us need is some type of life insurance policy. We all want to believe we are invincible and nothing will ever happen to us. And I hope nothing bad ever does, but according to Guinness World Records, (this is straight from their site) “the greatest fully authenticated age to which any human has ever lived is 122 years 164 days by Jeanne Louise Calment (France). Born on 21 February 1875 to Nicolas (1837 – 1931) and Marguerite (neé Gilles 1838 – 1924), Jeanne died at a nursing home in Arles, southern France on 4 August 1997.” This just illustrates that we are not invincible and we only get to enjoy this lifetime for a relatively short period of time so we might as well be prepared.
There are generally 3 types of life insurance: Term, Whole Life and Universal. I’m going to talk a little about term today. It’s what my wife and I personally have (as well as some whole life) and it’s what I believe the most
People want to know; what is return premium life insurance? Does term life insurance return premium? Is it the same as ROP life insurance? The short answer is return premium term life insurance is an option. It’s what it says it is. Does that make return premium term insurance one of the best life insurance plans?
Would you rather have something that allows access as it becomes available or would you rather have to wait for a specified period of time, such as 10, 20, or 30 years?
As they say, the devil is in the details. The return of premium option works only if you keep the policy until the end. For instance, if the term is 30 years and you cancel the policy in 29 years, you will not receive a return of premium.
The way it works is you pay more for the policy, possibly double.
Insurance companies make most of their money from term insurance. They are designed for people to outlive them. Very few ever pay a death benefit.
The normal cost is kept by the company. The extra cost is invested so
It is quite common knowledge that you have a life insurance paying out when the insured person passes away. While there are different kinds of life insurance policies, a whole life insurance policy has stark differences as compared to a term or a universal policy. So, how does it work and what are the big advantages?
A whole life policy does not have a predefined term that is defined during the insurance policy. While it does provide a death benefit and a strong protection over the entire life period of the person that is insured, the policy is deemed valid only as long as the premiums are paid in full. Hence, this kind of policy serves as both an investment package as well as an insurance package. The idea of utilising such a policy comes to good effect when you accumulate a strong cash value towards the policy and this can be used as collateral to borrow or even withdraw during the insurance period.
Quite obviously, there would be a lower return rate as compared to other popular insurance policies. The obvious benefits that comes with
It’s no secret that the majority of Canadians today don’t really understand the life insurance policies they own or the subject matter altogether. Life insurance is such a vital financial tool and important part to your financial planning that it is incumbent upon you to have a basic level of understanding.
Here are 3 quick pitfalls that are important to be aware of.
Incomplete Details In The Application
All life insurance contracts have a two-year contestability clause which means the insurer can contest a submitted claim within two years of the application date if material information was not disclosed during the application process. If you have forgotten to note a relevant fact in your application pertinent to the claim it is possible that your claim could be denied. Fraudulent acts such as lying in the application would not only have a claim denied but possibly also have your policy rescinded entirely. It goes without saying that one should always be truthful when completing a life insurance contract or any insurance contract for that matter. A copy of the original application often makes a part of the policy
Having taken out an appropriate cover, a person can attain peace of mind knowing that his family will be taken care of even after his death.
Advantages of Life Insurance
Life insurance has certain other advantages too.
It helps in achieving long term goals. Not only does insurance act as a safeguard for an individual’s future life but also protects the assets of a family.
It is a kind of savings that can be used in dire circumstances.
Before deciding to buy a life insurance policy, it is generally recommended that one obtains quotes from various life insurance companies. This will give us an idea as to which insurance policy meets our needs in the best possible way.
One can also compare insurance policies and get quotes and select the one that is affordable and suits individual needs.
Online Insurance and its merit
These days, life insurance policies are also available online. It has become very easy to compare quotes using the online medium. Premiums as well as various other features can be compared easily and as a result, it becomes easier to choose the best insurance policy. There is no dearth
Secret #1: Don’t spend too much time on a life insurance quote.
Do not be fooled by the low price quotes you get online – they don’t apply to you unless you are extremely healthy. Statistically only 10% of people who apply actually get the lowest priced policy. The premium you end up paying has nothing to do with the initial quote you get online or from an agent. It is amazing to me how often I see people getting duped by an agent who quotes company X at a lower price than another agent.
Life insurance policies are the same price no matter who you buy from! One agent or website quoting a lower premium means nothing. Prices for any given policy is based on your age and health. There are a few exceptions to this but that is beyond the breadth of this article.
Most life insurance companies have 10-20 different health/price ratings and no agent or website can assure you the quote they give you is accurate. You have to apply, do a health check, and then go through underwriting (meaning you complete a
Annuity Definition and How They Work
Life annuities are confusing for most people. There are many different types and all are basically the same thing: a product where an insurer makes payments to the insured for the term of their life. The seller is also known as the issuer. These payments to the buyer (also known as the annuitant) are for the immediate payment of a single payment annuity (lump sum cash) or regular payment annuities which come in a series of regular payments to the issuer.
A good example of life annuities is when a person receives a large settlement from a lawsuit. A company may buy the lump sum and then make payments to the recipient of the settlement for the term of their life.
Most life annuities have an indefinite period as there is no way of knowing how long someone may or may not live.
To annuitize means that the contract owner (annuitant) is ready to begin removing or receiving funds from the annuity. The more premiums that have been paid into the annuity, the longer the payments will continue.
Most people choose to pay
Every month Billions of dollars in life insurance death benefits lapse due to declining interest rates on interest sensitive life insurance products. The product I am talking about goes by a few different names: 1. Universal Life 2. Flexible Premium Life 3. Adjustable Premium Life.
One would think, that as long as I pay the premium, the policy will stay in-force. Unfortunately, that is not how it works for these type of policies. The premium due, is calculated and based on the credited interest rate. If the interest rate credited to your policy is lower than the interest rate illustrated when you bought the policy, the premium should be increased.
Universal Life is a combination of traditional whole life and term life. Best of both worlds. You have the ability for the policy to build cash value and not have to pay the high premium costs of whole life.
Universal Life is different from Traditional Whole Life. Instead of crediting a dividend to the policy, universal life credits an interest rate to the policy. If interest rates were at 8% when you bought your life insurance policy
There is an eerie legend about Lakewood, NJ’s Lake Carasaljo that its quiet appearance does not tell. It is a bizarre tale that goes back to the 1880’s or perhaps even to an earlier date.
As the legend has it, Mr. Joseph Brick, wealthy Lakewood iron and land business entrepreneur of the time, had three daughters named Caroline, Sally and Josephine who tragically lost their lives while swimming in the lake. In his grief, Mr. Brick named the lake after the loved ones he lost to it – Cara (Caroline) Sal (Sally) Jo (Josephine).
All of those details surrounding the drowning of the three girls except for the naming of the lake in their tribute, I am told, are purely fictional. It is a story that has absolutely no basis. The three daughters of Joseph Brick, in reality, were a health bunch, grew up, married, built families and led ordinary lives.
Yet, the cloak of serenity veiling the beautiful Lake Carasaljo hides something powerful. Nestled deep within its rejuvenating force of life-giving freshness and loveliness, Lake Carasaljo has the dreadful power to strangle and kill…
It happened about
Life Lessons to Excel at in Your 30s
While you might have been carefree, and even a risk taker in your twenties, by the time you hit the thirties, it is time to take stock. Life would have already begun throwing responsibilities at you and if you don’t start planning for the present and future now, it might just be too late.
Things you Must Do in your 30s
If you haven’t started to put your life in place, you must do it in your thirties. It is time to get your finances in order to avoid feeling the pinch later in life. You can start by purchasing a life insurance policy. Take help from a life insurance calculator to determine the most appropriate premium and cover amount.
1. Start Planning For Your Retirement – If you are one of those who thinks that your meagre savings every month would be enough for the retirement, then you must think again. Although it is true that expenses come down post retirement, but only nominally. A fairly large amount of money is needed to maintain a certain standard of living.
She responded to Beverly’s greeting with shy warmth. Coming straight from Morocco to Teaneck, NJ, she looked every bit out of place as Beverly knew she felt.
Sarit was Beverly’s new neighbor. She spoke not a word of English and Beverly’s French ‘bonjour’, ‘mademoiselle’, ‘bien’ and ‘merci’, coupled with the nothing that she knew from Arabic, did practically zilch for their interaction skills. They used their hands a great deal, smiled a lot and for the most part could not understand each other at all. The children, though – they were another matter entirely. Toys, games, running and jumping – those were the means of their communiqué and they mastered it without too much problem. As time progressed, the children became the tools of communication towards a friendship that forged into a relationship as close as sister to sister.
With time, Sarit’s children adopted the English language proficiently and were placed in the neighborhood schools. They became content with their lot and reveled in the street play. Yet, standing among the others anyone could place where they came from. With their outdated, oftentimes ill-matched outfits, it
You’ve made the move mentally. You are ready to do something selfless and get some life insurance to provide security for your family in the event of your early exit. Congratulations, as you are one of too few that are addressing this critical need.
Since you are making this effort, why not do it right? As you go through the process of deciding what type of insurance and how to fill out the application, please keep these things in mind.
1) Make sure you pick the type of insurance that meets the need as you see it for the foreseeable future. For example, if you have a 2 year old that you want to make sure gets college educated, make sure you don’t buy 10 year term as it will expire or become expensive when your child is 12, well before college.
2) Make sure you have the correct amount. Kids cost a lot of money before they leave the house and come off your payroll. Inflation, despite how low it has been recently, happens. Make sure to factor that in. You also need to factor in
The amount of life insurance cover you go for is a very important decision you will make. Inadequate life insurance defeats the purpose of going for it. When you are calculating your insurance needs keep in mind the liabilities you have. Ideally it should be enough to payout all your loans and payable still keeping enough for your family to maintain themselves without compromising on the standard of living.
People buy term loans with an objective of generating a reliable asset that would help fulfill their pending responsibilities if they die untimely. Generally, if a sole bread winner of a family dies the surviving family gets into a deep financial trouble. The situation is worse if the person dies with pending loans. Your term policy should be strong enough to leave enough money with your dependents to survive after paying your loans. Also, one should take account of inflation when deciding the sum assured. An insurance cover of INR 60 lacs would be the same value of INR 30 lacs of today 10 years down, considering the modest level of inflation.
For example: Mr. Mahatre a
Many of us feel that investing in a life insurance cover is a big burden. This info is especially for them. Statistics suggest that one in four breadwinners in the UK does not have a life insurance. This is an alarming ratio as the families would be left to live a financially unstable life in the event of the breadwinner’s death. That means almost one fourth of British families live under the risk of facing an economic crisis. As a solution, the support from NHS or other government schemes could be taken. However, all government support may not be enough for the education of kids, rentals, medication for critical illness or other basic facilities.
Find here some of the myths associated with buying a life insurance policy:
Life insurance is for the man!
A survey suggests that 45% of British men and 38% women are insured for a life cover. Again, both the percentages are quite low. Moreover, its general psyche that women who do not earn do not feel the pressing need of an insurance. It was observed by Cancer Research that more than 130 women
Ratings on Companies
Many people wonder how to go about choosing a life insurance company. In truth, there are several factors that can determine one’s decisions to pick one company over another. More often than not, the deciding factor comes down to the price of the monthly premium.
The premium needs to be affordable enough for one to pay it off each month without it making a huge dent in their finances. A good life insurance company does not want to bankrupt their clients with each premium – quite the contrary in fact.
Insurance companies want to keep their clients as happy paying customers so that they actually have a business to run. If there is no one paying the premiums, then there is nobody to insure.
Thus, life insurance companies will do everything they can to convince a prospective customer that they are the best possible choice.
Be Wary of Life Insurance Scams
However, keep in mind that companies that bend over backwards and offers great premiums may not actually looking out for one’s best interest. In order to avoid scams, read the fine print of their policies. Will
Deciding to invest in life insurance can be an intricate process not only in any particular country, but in most countries in general. Among the many kinds available in the market, you have to make an informed and intelligent comparison between the likes of health insurance and life insurance-these two being the most popular among the general public. Furthermore, it gets even more complex if you are trying to invest in this industry at a young age.
I know what you’ll say. As a single, independent and free-spirited 25-year old like myself, what are the chances of dying from a debilitating illness or getting hit by a bus in a two-way street? Chances are, getting my life insured at this ripe point in my life is as bleak as Donald Trump’s chances at winning the 2016 US Presidential elections! However, let me ask you this. If you don’t have a spouse, a daughter or a son to stress on, I’m pretty sure you have loved ones in your nuclear family. An aging mother perhaps? A father? A brother or a sister?–whose future you want to