Archive for the ‘Life Insurance’ Category
Life insurance is a critical consideration everyone should take in there life, simply because of the fact that we are all going to end up dying one day. No matter what you do, there is not enough technology, nor enough medicine to keep anyone alive for eternity. Nor there will never be in the near coming future, as humans are meant to evolve and with out death there is no way this will occur.
So life insurance should be taken very seriously, and by this statement I mean you should be very careful on the type of insurance policy you choose, or would like to take out for yourself. Below is a simple checklist of all of the items that should be taken into consideration before purchasing a policy.
Firstly you must be sure what you want your life insurance to actually do. What I actually mean by this is that. Do you want it pay your outstanding debts when you have gone? So that your family do not have to suffer, or do you just what it to pay for your funeral preparations as this can be quite costly in itself. Basically if you do not know what sort of life insurance you want you will probably end up paying quite a bit more for your policy due to the fact that you will probably be getting a lot of unwanted additional options.
A few more facts that you will need to take into consideration are as follows. Will you just be insuring yourself or your whole family? Most insurance companies allow you to get a joint life policy, whereas if your spouse or partner unfortunately passes away before you do, the life insurance benefit will go to the remaining policy holder. Secondly although this may sound quite ridiculous, you should decide on how long you would like your cover to be for. Ok an obvious fact is that no one knows when they are going to die, but what you should consider is if you have paid off your home and have no debts whatsoever in your name you should be able to get a cheaper life insurance policy over a certain period of time.
All in all you should remember that life insurance is very important, if you want to look after and care for your family both emotionally and financially once you are gone, then it is essential that you go and find the best deal to suit your needs.
Term Life Insurance
The term life insurance forms the foundation of all life insurance policy. In this type of life insurance policy, the policyholder needs to pays a constant or fixed premium over a particular amount of time. Suppose if the policyholder dies within the specified period then the insurance company will pay the guaranteed money to his family members. When the policyholder didn’t die within the specified period, then the coverage will get vanished.
The person who can apply for term life insurance
Since the life insurance policies are associated with dead, which makes many of the people to get scare. Some of them refused to take the insurance policy because they thought that if they are alive then they can be worth for more dead. It is not mean that if they take the insurance policy they will die soon. Life insurance policy is mainly to provide financial security to his family members when the person is no more. Suppose if you think that there are no other person to financially support your family members after your death then you can buy a life insurance policy.
If you are a single person and if you didn’t have any child or any other dependencies then you can simply avoid term life insurance Otherwise it is advisable for you to buy the term life insurance.
Merits of Term Life Insurance UK
There are several advantages of term life insurance. Some of them are listed below
• It provides a financial support to your family members when they need it after your death.
• Depending upon the policy, it can either be convertible or renewable.
• It gradually increases annual premium as you get older.
Demerits of Term Life Insurance
There are some of the disadvantages in term life insurance. They are listed below
• It doesn’t provide you permanent life insurance protection.
Different types of Term Life Insurance Policy
There are different types of term insurance policies are widely available. Some of them are listed below.
• Level premium term insurance
• Decreasing term insurance
• Renewable term insurance
• Convertible term insurance
• Annual renewable term insurance
Term Life Insurance Quote
Term life insurance is inexpensive and most financially efficient form of life insurance for most young and middle-aged people. The premiums on term life insurance policies are relatively very small when compared to other life insurance policies and the probabilities that the young and middle-aged people will die is also very small .Term life insurance policy provides a coverage for specified amount of time usually it ranges between 10 and 30 years.Term life insurance policy is suitable for many of the people because they can select a term that will cover them during their time of the greatest financial need.
Example quotes
This example is taken from the resource
http://uk.virginmoney.com/virgin/life-insurance/examples.jsp
How much cover you get for your monthly premium depends on your age and health at the time of application etc. To give you an idea, here are some examples.
Examples are based on £100,000 of level cover and assume you’re in good health.
Male
Age* Smoker? Cover amount Term Monthly premium
30 No £100,000 20 years £7.50
35 No £100,000 20 years £8.70
40 No £100,000 20 years £11.90
30 Yes £100,000 20 years £11.80
35 Yes £100,000 20 years £15.60
40 Yes £100,000 20 years £23.90
Female
Age* Smoker? Cover amount Term Monthly premium
30 No £100,000 20 years £6.50
35 No £100,000 20 years £7.40
40 No £100,000 20 years £9.60
30 Yes £100,000 20 years £10.00
35 Yes £100,000 20 years £12.70
40 Yes £100,000 20 years £19.00
*Age next birthday.
Rates correct as of 22nd October 2008
Term Life Insurance
Life insurance is a subject that brings on many different opinions. While some believe it is a waste of money or even considered gambling, most people understand that life insurance is primarily used to ensure that your family or beneficiary is well taken care of upon your death. Life insurance also ensures that your family will be able to take care of your burial and funeral expenses.
While there are many different types of policies as far as life insurance is concerned, term life insurance is considered to be “pure insurance” because it builds no cash value like other policies. While some life insurance policies are used as a type of savings or retirement account, term policies are in place for a specific amount of time and only paid out in the event of death. Term life is the most practical and unselfish way to ensure no one has to worry about how to take care of you in the event of your death.
History of Life Insurance
As with most things ancient, Rome recorded one of the first life insurance policies in existence. Roman groups called Fratres (or burial clubs) came together to establish this form of security for their workers. These policies were set up by the poor to pay for the funerals of fellow club members and to help the surviving family financially.
The first insurance company in the United States was started in 1735. This South Carolina based company, called the Friendly Society, lasted until 1740. In 1759, the first life insurance company was established in Philadelphia by the Synod of the Presbyterian Church. It was started for the benefit of Presbyterian ministers’ families. As with the Romans, the basic financial needs of surviving family members would be taken care of.
As far as ancient times, society has known that those who are left behind need some sort of financial security upon a loved one’s death. Undoubtedly, it seems that even in ancient times, burial and funeral expenses alone were enough to wipe away a family’s savings. In the case of a family being impoverished, a proper burial might even be out of the question.
While no one likes to think of death and dying, term life insurance is something that is very much needed. The trauma of losing a loved one is obviously emotionally and mentally draining and at least a life insurance policy allows the added financial burden to be eliminated. Choosing the right policy to accommodate your needs is the key to planning a secure future for your family.
Most Practical Choice
If you are looking for a simple way to look after your family after your passing, term life insurance seems to be the most practical way to go. With even a minimal policy, you can ensure that your family will be able to pay for burial and funeral expenses. If you have children, hopefully your policy will enable them to attend college or perhaps your family’s house can be paid off.
With the advent of the Internet, it is easy to study the various types of term life insurance available online as well as the requirements that each carrier might have. You can obtain fast quotes online as well. Some term life insurance companies even offer “no medical exam” policies or “cheap” policies that are affordable. Terms usually run in 10-year periods – 10, 20 or 30-year policies are the norm.