Term Life Insurance
Published January 4, 2012 | 
Term life insurance was the original life insurance.
Says Investopedia, it is “a policy with a set duration limit on the coverage period. Once the policy is expired, it is up to the policy owner to decide whether to renew the term life insurance policy or to let the coverage end. This type of insurance policy contrasts with permanent life insurance, in which duration extends until the policy owner reaches 100 years of age (i.e. death). These types of policies provide a stated benefit upon the death of the policy owner, provided that the death occurs within a specific time period. However, the policy does not provide any returns beyond the stated benefit, unlike permanent life insurance policies, which have a savings component that can be used for wealth accumulation.”
If you talk to an insurance professional, especially one who is trying to sell you permanent life insurance such as whole life, he will describe term life to you in terms of renting or owning a house. Term life is like renting a house instead of owning it. Depending on your policy, your premiums (your rent) may rise over time, but your face value (your dwelling) will never increase (and it might decrease) and when you move out (when coverage ends) you have nothing to show for it except lost money (the premiums you paid get you nothing because you outlived or canceled the policy). On the other hand, with permanent life insurance (home ownership) you have to pay more and you have more maintenance concerns (premiums are higher), but you also build up equity (policy cash value) that you can use in your living years and you may very well live in that house (keep the policy) until you die. And most people who can afford it would rather own a home instead of just rent a place.
However, proponents of term life, and they include many non-insurance agents who are financial advisors and writers as well as insurance brokers, will point out that life insurance is really not supposed to be a permanent fixture of someone’s financial life except in highly specialized cases (estate planning for instance). Life insurance, they will tell you, is supposed to be like a temporary bridge between one’s earlier wealth-accumulation phase and one’s high net worth phase, when one has enough net worth that if one died tomorrow one’s family and final expense would be taken care of out of one’s estate. They call the later phase being “self-insured”.
Proponents of term life say that the best way to go financially is to buy term life insurance and also have a disciplined investment plan to bring in wealth accumulation that is far greater than what a permanent life insurance policy, with its much higher premiums, can bring.
As people are growing generally more sophisticated about financial matters thanks to the Internet and the efforts of financial institutions (many of which now sell life insurance, too), term life insurance, once heavily disparaged, is coming back into vogue, and “buy term and invest the difference” has a great appeal to people, especially young people who are not afraid of the stock market and who don’t like the idea of paying higher insurance premiums than they have to.
Term life policies exist that last for differing lengths of time (one year, five years, 20 years, etc), after which they must be renewed or the person loses coverage. There are also some special term life plans such as decreasing term life, which is usually used to cover a mortgage and has a length pegged to the length of the mortgage note.
Term Life Insurance
Published January 4, 2012 |
Term life insurance is an important genre of insurance policies. It is more cost-effective than other types of life insurances. It helps you to provide financial help to your loved ones in case you pass away. Since one never knows when he may die, it is important to secure the future of your dependents who do not earn. By getting a term life insurance you will be able to provide them with a source of income so that they can lead a decent like even when you are not there to take care of their financial needs.
This kind of insurance allows you to look after the expenses of the funeral that follow after one passes away. Also, if you have any financial liabilities to pay, your family can return that with the help of a term life insurance. If you have kids who are studying their schools fees can be paid with this type of insurance as well.
It is important for every person to have a term insurance. No matter how young or old you are having a life insurance of this type has scores of benefits. Since accidents are always foreseen it is best to get term life insurance so that your loved ones do not have to suffer in case of your demise.
To be able to get the best term insurance, it is important to compare the prices of different policies. You can use the internet to get quotes and compare them. It is always good to get the cover that you actually need. This will allow you to remain safe from paying high premiums. So only get the cover that you require according to the need of your family. You can get various quotes from the online companies and thus choose a term life insurance in a convenient manner.
Since insurance is something that deserves a lot of attention you should select one after seeing to all the details such as the cost, the cover etc. This will help you to make the best of your money and secure the future of your dear ones in the best possible manner. So get online and get term insurance before it is too late. Remember that though it may seem to be a financial burden to you at this stage but it can certainly pay you back in a great way if you are not there for your dependents.
Three tips when picking small business insurance
Published December 27, 2011 | There are three key things you need to look out for when settling on your small business insurance. From the easiest of elements to the hardest, it’s important to ensure that you’re paying attention to the things that you need, and ensure that you’ve got the right insurance for you.
1) What does the insurance cover? First and foremost, you’ve got to make sure that the insurance you eventually choose covers everything you need it to. If it doesn’t, you need to find out why and what you can do to fix that. If you’re unsure of whether the insurance you’ve chosen covers what you need it to, ask your sales person, or look online. Small business insurance needs to cover different things in many cases than housing and other insurances, so be sure you’re choosing the right one for the job.
2) What are the premiums? Cost prohibitive insurance can stop you from renewing it, but at the same time, it might save you money should the worst happen. So, weigh up the cost against its benefits and ensure you’re getting a good deal.
3) Is there a better deal on the market? Once you’ve looked at the first two criteria, you’re often in a better position to compare other deals on the market. Ensure that you’re looking at a strong deal by buying the best deal for your needs.