Info About Insurance

Finding the right life insurance plan

Life insurance provides security to family members upon the loss of your loved ones. It is a contract between you and an insurance company in which the company provides your beneficiary with a certain amount of money upon your death. In return, you make periodic payment; known as premiums, generally depends on factors such as age, gender, occupation and medical history. (Premiums are periodic payments that the policy holder pays to the insurance company to buy and keep the policy in working.) If you are going for a cheap health plan which doesn’t pay for your benefits, then you are not getting good value for your health insurance. As both the amount you buy and the length of the coverage are important, make sure your current policy doesn’t lapse until your new coverage is securely in place.

Usual forms of life insurance include: Whole Life, Variable Life, Term Life and Universal Life Insurance

Term Life Insurance

It is the simplest form of life insurance; coverage is for a fixed amount of time. It’s a good choice for individuals who are looking for temporary coverage. It offers more protection against immediate expenses which may include family’s education, mortgage payment and more. Although monthly payments are generally less, they may increase as they approach the term-end. As all term life insurance providers are not the same, it is always suggested to compare the rates and packages provided by term life insurance providers before making a decision.

Whole Life Insurance

Whole life insurance provides both a death benefit and a dividend. Premium amount is charged over the length of the contract. These policies provide a dividend to the policy holders which help them in their retirement.

Variable Life Insurance

Variable life insurance is designed for growth, which allows you to invest cash value of the policy into different investment plans. This policy enables a higher return; they also increase risk as down markets occur. Means if your market performance is poor, your death benefit decreases and you need to pay higher premiums to keep the policy in force.

Universal Life Insurance

Universal Life Insurance is the most flexible plan which offers wide range of choices regarding premium payments. One of the benefits of this policy is you can skip payments if the need arises. You can pay premiums at any time subjected to specified minimums.

Tips to decrease the amount you spend on life insurance.

• As agents try to sell you more insurance than you need, as their income is generally commission based; buy only the amount of insurance that you need to protect your loved ones.
• Try to get more quotes by shopping around and discuss all additional details before agreeing with your agent.
• As brokers represent several life insurance companies, they make a better deal than a life insurance agent; as a life insurance agent represents only to the company they work.
•  As it is a long term commitment, Decide –
  - How much insurance you need?
  - How much you can afford to pay for your policy?
  - Which plan suits you the best as per your requirements
• Choose an insurance company that is financially secured.