Posted by admin on November 11, 2012
There are different rates offered for the different types of life insurance present. The different insurance includes term insurance, whole insurance and return on premium. Term insurance covers you for a shorter period of time after which it expires and has to be renewed. Whole life policy on the other hand is permanent; it covers you year in and year out and never expires. Return on premium covers you for a longer period as compared to term insurance and it’s significantly more affordable as compared to whole insurance.
Getting minimum rates to purchase such insurance policies is not easy, thus a number of factors have to be considered. The age and gender plays a critical role in determining the amount of rate payable for an insurance cover. The youth and women have an upper hand when it comes to getting good life insurance rates. This is because both the women and youth have a higher expectancy rates thus the insurance company has more years to collect premiums from them before they are paid back. Those who smoke incur more cost on life insurance as opposed to the non smokers. Some companies might require a smoker to quit smoking for three to five years before they can land on a good rate for their insurance.
Driving record is also a determinant factor in finding the best life insurance policy, if you constantly break traffic laws you are likely to be involved in a serious life threatening situation, such situation makes you more risky to any insurer. Most insurance companies would demand to know whether you had any form of moving violation in the past ten years before they offer the life insurance cover. Lastly getting the best insurance cover requires you to have to have good health and fully disclose your medical history. This is essential before the company can offer any rates. Disclosure also enables you to explain your health conditions as well as other situations. The job you undertake also contributes to the rate of insurance paid; those in more risky jobs are not likely to get the best rates as compared to the individuals in the less risky ones.
Posted by admin on October 21, 2012
There are some people who think that life insurance cover is not necessary. Death, can come at any time and at any age, and if you value your family and loved ones, then having a life insurance policy in place is essential. Here, are some situations where having life insurance cover is a good idea.
If you die before repaying the mortgage on your home, the insurance policy will pay off the debt. Without an insurance policy, your dependents, would be left with the problem.
For someone who is young and healthy, it is a good idea to take out a policy because it is cheaper the younger and fitter that you are.
For married couples with children, it is irresponsible not to have joint life insurance cover in place should one or both die. There are a lot of policies that can be taken out specifically to suit your situation, and it is well worth taking a look at the benefits.
For an individual or family with limited earnings, life insurance is cheaper to buy than health insurance and will pay out in the form of a lump sum on confirmation of a terminal illness. You can take advantage of this by making sure your dependants will not suffer financially, or fulfilling a dream you had not been able to afford before.
These are just a few of the reasons for taking out life insurance cover. If people understand the need to insure your car and your home, why do so many not see the need for insurance? The answer is remarkably straightforward. You never think that it will happen to you, but death is an inevitability and will happen sooner or later. When you are older and are suffering from medical conditions associated with old age, it is the most expensive time to buy life insurance. It is always best to take out some cover when you are young, but in today’s consumer society, it is unfortunate that life insurance cover is not even a top twenty priority.
Posted by admin on September 16, 2012
Although there is no definitive legal definition of the term, key man insurance can be thought of as an insurance policy that can be taken out for any key member in your business. In most companies, if a leading figure (or key person) suddenly becomes critically ill or even dies, the business will cease to function as well and, in some cases, may cease to function at all. By taking out key man insurance you ensure that if a pivotal figure in your business does become severely ill or dies that you will receive monetary compensation for the loss of that person, will which help keep the business running as it tries to replace that key person. Importantly, businesses are free to use the funds they receive from a key man insurance policy as they see fit, but the funds are usually used to cover employee replacement costs and to help minimise the risk that any outstanding business loans may pose.
The key person can be whoever you want it to be in your company, and it can even be a contractor if the job that they are carrying out is vital to the organisation. Essentially, a key person is someone who the company would struggle to be without, who is an invaluable asset to a company. In general, there are two main types of key person insurance that can be taken out. The first is a life only key man insurance policy. This functions like a term based life insurance policy in that the key person is insured for a set amount during a set term, and if they should die during that term then the company will receive a payout.
There is also critical illness key man insurance. This can be added to a life only policy, or can be taken out as a separate policy in itself. This insures the key person against a variety of illnesses, and should a key person become critically ill then a premium will be paid out.
It is important to bear in mind that policies can vary wildly from insurance company to insurance company, so it’s always best to do your research and shop around for the best policy for you.