You know that a responsible economic plan includes life insurance if you have dependents, depending on your income. Life insurance is important if you want to preserve the financial situation of your family if you die. But before you commit to a policy, consider these 5 pitfalls of life insurance:
1. Getting the Wrong Type of Life Insurance
One of the most important things to understand is that life insurance is divided into two main types: term life and whole life. Term life is that for a moment before the policy expires and you are covered for longer. lifetime (in its various incarnations) is intended to cover all his life. As you continue paying premiums, your life is covered.
Every life is useful in several situations, and in some cases, the combination may be useful. However, before choosing one or the other, to keep your situation and needs of your family. Then, select the type of life insurance that is best suited to your individual situation.
2. Choosing the Wrong Coverage Amount
When you select a life insurance policy, you must decide how much coverage to get. You may end up with a cover too little - or too much life insurance cover. Think about how long the coverage is necessary and what is necessary to the family along, if you are no longer able to offer them, because of your death. Also take into account other sources of income in the family may also have passive income or part-time jobs held by spouse.
3. Terms of Coverage
Make sure you understand the terms of your insurance coverage. Some types of death can not be covered, depending on circumstances. Many insurance will not pay death benefits if the insured takes his own life. Other policies that do not cover suicide in the early years of the policy. Make sure you understand what's covered - and when.
4. Missed Premium Payments
To ensure that you can make life insurance premiums when you sign up. In fact, it's usually a good idea to leave scope for an increase in premiums. This is because if you do not charge a premium, the coverage may be suspended or revoked. If you are behind on the premiums, when you pass, your family can not get the benefit of death. Trying to get insurance can once again become its own challenges, which can cause problems - and can lead to a higher rent than that of the original policy.
5. Variable Life Premium Increases
While it is possible to see increases in insurance premiums on the life of others, is likely to see a change in life insurance. Those that have a duration of insurance premium increases can be seen when the market goes bad, and the insurance company needs more to fulfill their obligations. For those with variable life insurance policies, in a down market, this can be a double whammy, because the political value of the results of small market suffers. Even if the variable life insurance will fit well in a financial plan, you should consider a variable life policy, and decide if it's something a little less hazardous, may be in place.
2010年10月13日星期三
Before You Buy A Life Insurance Policy - Some Thoughts
You can have all kinds of life insurance policies. Some life as a term is valid for a temporary period and others, like the various categories of permanent life are valid for the lifetime of the insured. Not only that, while life is a pure protection policy expression devoid of any investment opportunity, the different types of permanent policies are purchased mainly for both investment and tax advantages they offer. Moreover, while the sub-term life, you get the death benefit at great cost very reasonable, permanent policies are not necessarily more expensive because they have to bear the cost of many additional benefits.
Of course, each of these policies to their own uses and they are all designed to meet a particular need. It is therefore important that you identify your needs first and then look for life insurance. In short, quotes, when you buy a policy just to satisfy your insurance needs, compare life insurance cheap term only. These policies have many shortcomings, but no other policy is best suited to meet the insurance needs of a person at cheap prices.
As I said, the term life insurance provides for life cover only a temporary no cash value. The premium you pay buys you nothing but death. Policy is very clear in its terms, you pay a premium for a fixed amount and adjust, if you die within that period, the designated beneficiary receives a death benefit. Otherwise, the typical duration may be shorter than one year or the level at year 5, 10, 15, 20, 25 or 30.
If, however, do not die within that period, you have absolutely nothing about it. If desired, you can now live without insurance. However, if you feel you need extra coverage, you must purchase the policy rate at a higher rate because the purchase price depends on the age of the insured at the time of purchase. permanent policies, on the other hand have a different set of applications. Although the main functions of any life insurance policy, either term or permanent, is to provide life insurance coverage, which are sold for more investment options than the insurance benefits offered.
In fact, all previous policies were term life. It later emerged that since not many people actually die in the term and therefore, his popularity began to decline, because no body played with the idea of having to pay for such a long period, so nothing out of it. To encourage the purchase of coverage, companies have begun to float permanent policies are not only valid for the lifetime of the insured, but also worked on the principles of investment funds to give a good yield premiums paid.
As I said, no one policy is better than another. They have their own separate use of:
Permanent policies are appropriate for individuals who not only want life insurance to protect your family, but are irregular and save money. With a permanent policy to protect your family if you die also protects you in the days of heavy financial difficulties. You can redeem your investment at any time after the stipulated years by surrendering the policy or borrowing against it.
risk of life insurance does not offer this option. And 'well if you are disciplined enough to take care of all regular cash needs while saving his life.
Buying life insurance is easy, especially if it is online. Instant life insurance quotes may be available by visiting the website of a life insurance broker and fill out the quote form, usually available on the home page only. Once that is done and click the button, you will find quotes from different carriers include one by one. You will find that while the policy is the same, the price structure is not. This varies from company to company.
This is because each company has different underwriting guidelines and rating different and goodwill. Therefore, before choosing a policy, conduct research in the issuing company. Make sure you have sufficient financial strength to withstand any market disruption. Otherwise, neither the death benefit of cheaper prices and adequate, or the promise of good results can help in any way.
Of course, each of these policies to their own uses and they are all designed to meet a particular need. It is therefore important that you identify your needs first and then look for life insurance. In short, quotes, when you buy a policy just to satisfy your insurance needs, compare life insurance cheap term only. These policies have many shortcomings, but no other policy is best suited to meet the insurance needs of a person at cheap prices.
As I said, the term life insurance provides for life cover only a temporary no cash value. The premium you pay buys you nothing but death. Policy is very clear in its terms, you pay a premium for a fixed amount and adjust, if you die within that period, the designated beneficiary receives a death benefit. Otherwise, the typical duration may be shorter than one year or the level at year 5, 10, 15, 20, 25 or 30.
If, however, do not die within that period, you have absolutely nothing about it. If desired, you can now live without insurance. However, if you feel you need extra coverage, you must purchase the policy rate at a higher rate because the purchase price depends on the age of the insured at the time of purchase. permanent policies, on the other hand have a different set of applications. Although the main functions of any life insurance policy, either term or permanent, is to provide life insurance coverage, which are sold for more investment options than the insurance benefits offered.
In fact, all previous policies were term life. It later emerged that since not many people actually die in the term and therefore, his popularity began to decline, because no body played with the idea of having to pay for such a long period, so nothing out of it. To encourage the purchase of coverage, companies have begun to float permanent policies are not only valid for the lifetime of the insured, but also worked on the principles of investment funds to give a good yield premiums paid.
As I said, no one policy is better than another. They have their own separate use of:
Permanent policies are appropriate for individuals who not only want life insurance to protect your family, but are irregular and save money. With a permanent policy to protect your family if you die also protects you in the days of heavy financial difficulties. You can redeem your investment at any time after the stipulated years by surrendering the policy or borrowing against it.
risk of life insurance does not offer this option. And 'well if you are disciplined enough to take care of all regular cash needs while saving his life.
Buying life insurance is easy, especially if it is online. Instant life insurance quotes may be available by visiting the website of a life insurance broker and fill out the quote form, usually available on the home page only. Once that is done and click the button, you will find quotes from different carriers include one by one. You will find that while the policy is the same, the price structure is not. This varies from company to company.
This is because each company has different underwriting guidelines and rating different and goodwill. Therefore, before choosing a policy, conduct research in the issuing company. Make sure you have sufficient financial strength to withstand any market disruption. Otherwise, neither the death benefit of cheaper prices and adequate, or the promise of good results can help in any way.
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