What Everyone Must Know About Life Insurance

What you'll discover in this report:

·         How to make sure your family is really protected!

·         Cut through the confusing "insurance jargon" and know what a life insurance policy really says!

·         The different kinds of  life insurance policies...what they're good for, when to use which one

·         Why smart consumers use life insurance...and the mistakes that other people make too often

·         ...and much more!

How to protect your family if you die...

·         Life insurance is a simple concept -- you buy a policy that pays to your beneficiary or beneficiaries when you die -- but the decisions of what kind life insurance to purchase, how much of a death benefit and how much you pay are extremely complex.

·         * Note. There are more than 2,000 companies selling life insurance in this country. Some are very good, financially solid companies; others are not so sound. A company's financial strength is vitally important to you because, hopefully, no one is going to collect on your life insurance for a long time.

·         You want to make sure your life insurer will be around for the long haul. How do you do this? You can consult a seasoned insurance professional, which is probably your best bet, or you can look at how various independent organizations "rate" the life insurers you are considering. Ratings are like school grades, A+, A, A-, B+, etc. In general, it's wise to stick with companies that are rated A or better by most rating organizations.

Many Purposes for Life Insurance

·         Life insurance is far more than just a decision of how much to buy. Depending on your financial situation, life insurance can be used for a variety of purposes, such as:

·         estate planning

·         accumulating cash

·         transferring wealth

·         achieving estate tax liquidity.

·         Life insurance is like auto insurance in that you can buy a lot of it or not very much of it. Life insurance differs from auto insurance in that, depending on the type of policy you buy, you can pay a lot or a little for basically the same death benefit. Keep in mind, though, that the younger and healthier you are, the less you will pay for coverage. Life insurers like to have their policyholders around for a long, long time.

·         * Tip. So how much life insurance do you need? It depends. One common benchmark says your death benefit should be about six to eight times your annual earnings, but there are a variety of factors to consider:

·         Other income sources.

·         The size of your family. Whether your spouse works and his or her earning capacity now and in the future. The number of people who are financially dependent on you and for how long. The death benefits your family will receive from Social Security and any life insurance plan through your employer. And any special needs such as mortgages, college education funds and estate planning.

[Source: https://bloglifeinsurance.wordpress.com/2015/07/30/what-everyone-must-know-about-life-insurance/]

Guide to Have the Best Life Insurance Coverage

The first step to purchase online life insurance policy is by knowing the need for it. Term plans always offer sufficient financial support to the policyholder’s family in insured’s absence, fund child’s education and marriage or help during policyholder’s post-retirement life. It is advisable to take guidance from a financial planner to find out the suitable coverage. 

Do detailed analysis as well as risk profiling.Generally, life insurance India is available in various forms such as traditional endowment plans, retirement plans, unit linked insurance etc. Term insurance covers the risk of insured’s demise. Usually, it is affordable than other insurance products.

If the insured survives, he or she may or may not return the premium. An endowment policy is a non-market linked plan which provides protection and savings both. It pays a certain amount of lump sum money on maturity or in case of policyholder’s demise.

Unit linked insurance plans are market-linked long-term savings-cum-protection policies. But, these products differ in their payout structure and equity-debt ratio of investment. Pension plans could be on either ULIPs or traditional platform and has compulsory annuity policy on maturity of accumulation phase.

It is necessary to select a policy based on your risk appetite. Riders help in customizing life insurance plans. It is beneficial to know some common insurance related terms such as maturity amount, equity-debt ratio, claim amount, cash value and premium because it makes sure that you understand the policy clearly.

When customers know how much and which coverage type they need, it is easy to search different life insurance policies. Remember to check insurance company’s financial stability, claim-settlement ratio, riders and customer feedback etc.

• Explore Several Modes of Purchasing

Customers can buy a policy through different channels or modes. Insurance experts suggest buyers to own a plan from the insurance broker and clear any insurance related queries on the claim process, free look period, policy charges etc.

Some insurance products offer extra advantages to elderly people and children. There are many riders which you can add at the beginning of the plan.

[Source: http://blog.policyboss.com/life-insurance/guide-best-life-insurance-coverage/]

What Life Insurance Policy is Right For You

Most of us know we need life insurance but not knowing the best way to go about it can deter us from making a decision. It is a great way for us to protect those close to us but only if we are properly protected. With so many choices available to you we created this blog so that you would have a guide for finding the right policy. 

Questions to ask yourself

There is a reason why there are so many different life insurance options and this is because many people use it differently. So before jumping into which policy does what, it is important to ask yourself a couple questions so you know what you're looking for. 

1) What will your policy be used for? Is it for part of your family's retirement planning, to protect your family/spouse from financial ruin if you pass away, as part of your investment plan, or to pay for the costs of a funeral if you pass?

2) How long do you need protected? Do you just need insurance until the kids are grown up and on their own or do you intend on having a policy for ever?

3) How much can you afford? This is a pretty obvious question but it is important to see it as how much you can afford not how much you want to spend. Different types of policies will cost more than others but with something as important as life insurance you do not want to short yourself for the sake of saving a buck.

These questions will not tell you everything but they will allow you to start picture the type of insurance you actually need.

 Types of Policies

Once you have an idea of how you want to use your life insurance, finding a policy or two that fits the bill can be pretty easy. While there are many different plans, they all stem from two foundational policies:

1) Term life - inexpensive and lasting for a set amount of years, this policy will get a family through the younger and often more debt filled years. This is ideal for people who temporarily need a large amount of insurance but have limited cash. The downside to this is that once the term is up your policy expires but since you will be older the rates to purchase another term policy after yours has expired will likely be much higher.

2) Whole life - long lasting with the ability to build cash value over the years, this policy will stick with you for your family's protection and as a financial investment for you. This is ideal for people who intend on having life insurance forever and who want the ability to borrow or withdraw from their policy. Your rates will stay stable throughout the life of the policy and the cash value you build up with be tax deferred. The downside to having this type of plan is that the premiums will be initially more costly than a term policy.

Keep in mind that these are not the only two types of life insurance. Many variations have been created to provide families with a more custom fit plan. Some other options are final expense insurance, which pays for costs associated with the funeral expenses and universal life which combines flexible product features with the protection of permanent whole life insurance. More options have been created depending on where the focus of your needs lies.

 Knowing what is right for you and your family

Lifeinsurance should not be picked based off of what's cheapest or the most convenient. For some, the most inexpensive policy might be best, but for others they may need something more flexible to fit their needs. Remember that this is not something which is purchased because you have to have it legally, but is something you purchase because you want to financially protect those close to you.

There are a lot of choices and a lot of different companies to choose from. The best way to ensure you are getting the best life insurance plan is to speak with an independent insurance agent. They will be able to assess your needs and find the best solution from multiple companies. 

[Source: http://www.divinsurance.com/personal-insurance-blog/what-life-insurance-policy-is-right-for-you]