1. Life Insurance pays a tax free lump sum to you or your family if you fall terminally ill or die. This can ensure that your family is financially well provided for.
2. Mortgages, car loans, medical bills, and credit card debts are often left unpaid when someone dies, and these obligations must be paid from the assets you leave behind. This could seriously reduce the financial resources left for your family. Your family could then face considerable financial loss if your assets have to be sold cheaply in order to meet the financial obligations on time. With Life Insurance the proceeds are available almost immediately upon your death and will avoid any difficult situations for your family.
3. If you are keen to leave an estate for your heirs, you can achieve this with Life Insurance - automatically providing money for your family after your death.
4. Life Insurance is a great way to give to charity when you die. You may have always wanted to give to charity but lacked the finances - Life Insurance can do that for you.
Sunday, 18 September 2011
Wednesday, 3 August 2011
Accident, sickness and unemployment insurance
- Disability insurance policies provide financial support in the event of the policyholder becoming unable to work because of disabling illness or injury. It provides monthly support to help pay such obligations as mortgage loans and credit cards. Short-term and long-term disability policies are available to individuals, but considering the expense, long-term policies are generally obtained only by those with at least six-figure incomes, such as doctors, lawyers, etc. Short-term disability insurance covers a person for a period typically up to six months, paying a stipend each month to cover medical bills and other necessities.
- Long-term disability insurance covers an individual's expenses for the long term, up until such time as they are considered permanently disabled and thereafter. Insurance companies will often try to encourage the person back into employment in preference to and before declaring them unable to work at all and therefore totally disabled.
- Disability overhead insurance allows business owners to cover the overhead expenses of their business while they are unable to work.
- Total permanent disability insurance provides benefits when a person is permanently disabled and can no longer work in their profession, often taken as an adjunct to life insurance.
- Workers' compensation insurance replaces all or part of a worker's wages lost and accompanying medical expenses incurred because of a job-related injury.
Monday, 25 July 2011
Should you have a “Guaranteed” or a “Reviewable” policy?
With a Reviewable policy your monthly premium will rise when your insurance company reviews your premium (normally every 2 to 5 years but this interval does vary between insurance companies). In our experience, Reviewable policies tend to experience price increases slightly in excess of inflation.
As you would expect, at the outset the premium for a Guaranteed policy is higher than a Reviewable policy - but Reviewable premiums can soon catch up. In the longer term a Reviewable policy generally works out more expensive.
Just a quick point. Some insurance companies have stopped offering Guaranteed rates for combined Mortgage Life Insurance with Critical Illness cover. However, if you ask for a quote on a Guaranteed Life Insurance and Critical Illness policy - and ClickLife, our Product Partner, can source one for you - you should seriously consider it.
As you would expect, at the outset the premium for a Guaranteed policy is higher than a Reviewable policy - but Reviewable premiums can soon catch up. In the longer term a Reviewable policy generally works out more expensive.
Just a quick point. Some insurance companies have stopped offering Guaranteed rates for combined Mortgage Life Insurance with Critical Illness cover. However, if you ask for a quote on a Guaranteed Life Insurance and Critical Illness policy - and ClickLife, our Product Partner, can source one for you - you should seriously consider it.
what for?
Life Insurance is a commonly and established way of providing a tax-free capital sum if a policyholder were to die whilst the policy was in force.
It is important to remember that Life Insurance Policies do not have any investment value. If the policy finishes without a claim, there is no payout.
Perhaps the first thing you’ll need to decide how much to insure for. If you are insuring to provide security for the family, then there are a number of aspects to consider. This can be a bit complicated so we have devoted a special FAQ to it – see below.
If you are insuring your mortgage then sum insured should match the sum you owe your mortgage provider.
The other key point to decide is how long you will be covered for. Most Insurance Companies regard 2 years as the minimum, but 20 – 25 years is the most common length of time. Most Insurance Companies will not offer insurance past the age of 70. A few will insure beyond 70, but that becomes very expensive. For that reason the online quotations we provide do not go beyond a 70th birthday.
Think about whether you need cover for Joint or Single lives. This will depend on your circumstances, so see the related question below or more details.
Similarly, you’ll need to choose between a Guaranteed or Reviewable policies. The rule of thumb is that Guaranteed policies have higher premiums to start with, but over the longer period they are the better deal. Again, you can read more in the related question.
Don’t worry about whether you need to include Terminal Illness cover. We automatically include Terminal Insurance cover in your policy at no extra cost. So, if you develop an illness and your doctor confirms that you are expected to die within 12 months of diagnosis, the policy would pay out straight away, rather than delaying
It is important to remember that Life Insurance Policies do not have any investment value. If the policy finishes without a claim, there is no payout.
Perhaps the first thing you’ll need to decide how much to insure for. If you are insuring to provide security for the family, then there are a number of aspects to consider. This can be a bit complicated so we have devoted a special FAQ to it – see below.
If you are insuring your mortgage then sum insured should match the sum you owe your mortgage provider.
The other key point to decide is how long you will be covered for. Most Insurance Companies regard 2 years as the minimum, but 20 – 25 years is the most common length of time. Most Insurance Companies will not offer insurance past the age of 70. A few will insure beyond 70, but that becomes very expensive. For that reason the online quotations we provide do not go beyond a 70th birthday.
Think about whether you need cover for Joint or Single lives. This will depend on your circumstances, so see the related question below or more details.
Similarly, you’ll need to choose between a Guaranteed or Reviewable policies. The rule of thumb is that Guaranteed policies have higher premiums to start with, but over the longer period they are the better deal. Again, you can read more in the related question.
Don’t worry about whether you need to include Terminal Illness cover. We automatically include Terminal Insurance cover in your policy at no extra cost. So, if you develop an illness and your doctor confirms that you are expected to die within 12 months of diagnosis, the policy would pay out straight away, rather than delaying
What is Life Insurance? Life Insurance is also known as Term Insurance.
Life Insurance pays a tax-free lump sum if you die whilst the policy is in force.
Life Insurance is an extremely useful and affordable form of insurance, which you can apply for at any time as long as you are under the age of 68. (Most insurers will not insure you over the age of 70.) It provides a level of security for your family if the worst was to happen.If the Life Insurance is not related to a mortgage, you decide how much you want to insure for and the term- and the premium will be calculated accordingly.
If you are insuring to protect an Interest Only Mortgage the amount of insurance cover you’ll need will equal the value of your mortgage. You’ll also need the term of the insurance to match the length of the mortgage.
If you are insuring to protect a Repayment Mortgage you should take out Mortgage Life Insurance.
Most Life Insurance policies include Terminal Illness cover at no extra cost. This means that if you are diagnosed with an illness from which your Doctor expects you to die within a year, the insured sum will be paid out immediately.
Subscribe to:
Posts (Atom)