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]

5 Life Insurance Types to Know

The main life insurance types to know are whole, universal, variable, variable universal and term.

Whether you need life insurance or not is generally a relatively simple decision to make. But there are many life insurance types, and deciding which one will serve you best can be more complicated. Here's a handy introduction to the five main types of life insurance: term, whole, universal, variable, and variable universal.

Why life insurance?
Let's start, though, with a quick review of why you might need life insurance in the first place. Obviously, you might need it if you have young kids and a spouse and want to provide for them in case you die and aren't around to do so yourself. But life insurance is also valuable if you have any other people who depend on you financially -- or might in the future -- such as parents or nieces or nephews or a disabled loved one. For that reason, single or childless people shouldn't quickly assume that they don't need life insurance.

You might also get life insurance that can pay off a mortgage should you die, or that can keep your business running for a while once you're gone or that can pay any estate taxes or funeral expenses that materialize upon your death. (Of course, for some of these reasons, you might just accumulate money in a separate fund, bypassing insurance.)

It's worth noting that come tax time, the payout ("death benefit") is received tax-free by the beneficiary, as death benefits in general are, for all types of life insurance. An exception would be if you owned a life insurance policy on yourself, with proceeds becoming part of your estate. If so, then they might be subject to an estate tax.

With that out of the way, it's time to jump into the types of insurance. Note that each of them is sometimes referred to by a different name, so focus on the description of each. Whole life insurance, for example, may be called ordinary life insurance, and universal life insurance might be called adjustable life insurance.

Term life insurance                                              
Term life policies are often chosen by insurance consumers because they can make the most sense. As its name suggests, a term life insurance policy remains in force for a specified term -- often 10 to 30 years. Thus, it won't necessarily cover your entire life -- but by age 60 or 80, you may not really need it anymore, with your children grown and your retirement nest egg established.

Term life insurance also tends to be simpler and significantly less expensive than other life insurance types. In part, that's because it offers a death benefit should you die during the policy's lifetime, and little else. Term life policies generally offer the most insurance coverage for your buck, because the policies aren't offering you many other features.

Premiums for term life policies are often fixed at first, for a certain period, and then they start rising. There are many variations of term policies, though. For example, you might be able to opt for fixed premiums, in exchange for a death benefit that decreases as you age. Many policies let you renew for additional years, usually at a higher cost, and some let you convert the policy into a whole life insurance policy.

Considering that the Society of Actuaries has estimated that 39% of whole-life policies are terminated within the first 10 years, getting a term policy is an even more appealing option.

Whole life insurance
Another widely used kind of life insurance is the whole life policy. It's designed to last for your entire life and usually features a lot of certainty: You'll have fixed premiums and a specified death benefit. And along with that, you'll accumulate a cash value account that serves as an "investment" component to the policy. The longer the policy is in force, the more money accumulates in the cash account -- on a tax-deferred basis and according to a schedule. If you stop paying premiums before you die (or before age 95 or 100, when many policies let you stop paying), you'll lose out on the death benefit, but you can claim the cash value.

In addition, many whole life policies will pay you dividends that will effectively reduce the cost of your premiums. Some policies will let you use the cash that has accumulated in your account to pay your premiums, too.

The next three life insurance types are variations of whole life insurance.

Universal life insurance
Universal life insurance also involves a cash-value account growing over time, but it does so in a different way, based on prevailing interest rates (and typically guaranteed to not fall below a particular point). It's also very flexible, permitting the policy holder to adjust, over time, the premiums, cash accumulation, or term of the policy. If you find you need or want more coverage later in life, for example, you can get it. Or if you want to pay less for less coverage, you can opt for that, too.

Variable life insurance
With variable life insurance, the policy has two parts -- one is a general account intended to cover the insurer's obligations and the other an investment account, where the policy holder gets more choices regarding how money in the account is invested -- for example, perhaps being able to invest through one or more stock mutual funds, bond mutual funds, or money market funds, or a combination of them. This increases the upside of the account, but also adds more variability to the cash account and also the death benefit. 

Variable universal life insurance
Variable universal life insurance is a combination of universal life and variable life, permitting adjustments in the premiums, death benefit, and investment options. The death benefit may fluctuate in value depending on the performance of the underlying investments -- though insurers will typically have a floor below which it can't fall. These policy holders bear more risk, in return for a chance at higher returns.

It's worth noting that with the insurance policies that have investment components, you might consider passing that component up and simply investing your own money in funds or other investments you choose yourself. That can be a less expensive way to invest, giving you ultimate control and flexibility, and it can permit the dollars you do allocate to insurance to buy you more insurance.

Whichever of the life insurance types that you select, be sure to choose a strong, highly rated insurer. If you're quoted a great price by a company you've never heard of that ends up going out of business in a decade, you'll be wishing you'd gone with a top-rated outfit instead.

(Source: http://www.fool.com/investing/general/2015/05/22/5-life-insurance-types-to-know.aspx)

An opportunity for advisor to seal the insurance deal

With technology at its par and playing a giant role in various sectors globally such as economic, political, social etc. you should be aware of several significant changes in store for the life insurance industry as well.  Many of these changes are proving a boon for both agents and their customers, though there are some pitfalls that can be avoided at times. Technology has played a big part in many of the new trends, and the industry has been adapting and moving quicker to meet the needs of consumers as new technologies become mainstays in the insurance sector. However, many clients still stay little reluctant with the adoption of policies due to complications and perceived drawn-out process associated with it.

The article will guide through some great opportunities for you to offer your clients along with easier, less expensive and quicker life insurance options.

As insurance advisors, we see that most of the clients are reluctant and feel unsettled towards a medical examination process. Different people have different reasons while some have difficulties due to tight working schedules, some have a fear of needles and others simply don’t want to go through the hassling process. However, with the introduction of a simple online medical test and then buying of insurance policy has proven to be an extremely successful product for insurance companies. Consumers have overwhelmingly opted for online medical exam options when given the choice thus proving that tech efficiency plays a vital role in the mindsets of people as well.

Secondly, competition among insurance companies has been increasing every year. With so many websites offering price comparison engines listing all the available life insurance companies in order by premium cost, discounts, and customized policies, companies are now competing neck to neck on cost and benefits. This indicates that the insurance advisor should be well versed with the needs and requirements of the clients to surely bank their insurance account and generate business for the company.  Direct competition is only one factor in this trend. Other elements are lower administrative costs due to new technology that are being passed on to consumers, and the facts that people are simply living longer. 

Many life insurance policies offer unique riders that allow the insured to use the death benefit while they are still living. We’ve already seen the growing death benefit rider that offers access to a policy's death benefit when the insured is terminally ill. Now, we have options to add chronic care and critical illness riders to policies that aim to aid in long term care and medical expenses from sudden illnesses. The critical illness rider also allows the insured to use the death benefit of their policy in the case of critical health conditions such as cancer, heart attack, stroke, a major organ transplant, end-stage renal failure, blindness or paralysis of two or more limbs. These are just few beneficiary rider options. With the growing popularity of these policies; we can surely expect to see more. From an agent’s perspective, this is a great span of long term care benefits that can be provided to clients without having to sell a separate policy. Additionally, clients will also like to take the advantage of their life policies while they are still living.

Conclusion

2015 aims to be the year for lesser paper and more work for selling out policies. Many of the top insurance companies have adopted online medical examination making things simpler and even easier for clients and advisor which is great success for out of track insurance industry. Agents can now provide clients policies online and almost completely avoid traditional snail-mail. All this convenience means faster policy procurement to your customers. To take advantage of all these new changes, it’s a great idea to brush up on your computer and technical skills. Most of the changes are aimed at making the purchase of life insurance a less cumbersome process.

[Source:https://storify.com/Mihir2014/an-opportunity-for-advisor-to-seal-the-insurance-d#publicize]

Your Guide to Get the Most Affordable Life Insurance Quotes

In order to get the best life insurance quotes, some lifestyle changes may need to happen, and although not everybody is willing to, say, change their jobs or become vegans in order to get the best policy at the best price, small changes can go a long way. Things like losing a bit of extra weight or giving up smoking can make a big difference.

How are premiums calculated?

Life insurance providers base their insurance premium calculations on a number of factors such as your health, your lifestyle, your age and your occupation. For instance, a professional stunt man who smokes like a chimney will, not surprisingly, pay higher life insurance premiums than a vegan who gets paid to watch the grass grow. To be classified as a non-smoker, you have to have smoked your last cigarette at least one year ago, but the actual effort of smoking cessation will definitely go a long way to reduced premiums.

Life insurance plans are affordable investment solutions:

If you are willing to make some changes, life insurance plan can really be much more affordable than you may think. All it takes is a bit of preparation and planning. With these tips you will maximise your chances at getting the best possible life insurance quotes

Priority number one: stop smoking

As mentioned earlier in this article, if you are a smoker or if you use any other forms of tobacco, you should quit as soon as possible. For your health's sake as well as for the sake of getting better quotes for life insurance.

The fitter the better

While buying a life insurance plan, you will, more often than not, require medical examinations - as a healthier client will mean less risk to the insurer. Losing excess weight, eating healthily and exercising regularly all contribute to a healthier lifestyle and cheaper life insurance quotes. Even the smallest changes to your lifestyle habits can yield great results, especially in terms of glucose levels and blood pressure.

Honesty is the best policy

Honesty is appreciated in all aspects of life, and this is no less true when it comes to taking out life insurance plan. Make sure that you leave no room for 'surprises' when you fill in your application documentation especially while getting child plans. Medical and lifestyle information will be thoroughly verified and researched by the insurance company before they make a decision on your application. Make sure you leave nothing out.

Take care when scheduling your medical examinations

The best results for medical examinations are obtained early in the day. Blood pressure and cholesterol levels are typically better at that time of day, as you are generally more relaxed and rested in the morning.

Change is the only constant

After buying a life insurance, we often 'forget about it'. It is however not unimportant to review your policy regularly. Not only to make sure that the contents of the policy are still relevant to your situation, but also to check whether the premium you're paying is actually still the most affordable.  Life insurance plans help to plan out better retirement planning.

Does The Risk Of Not Having Life Insurance Not Haunt You?

How important is life insurance including child plans?

Child life insurance is a form of permanent life insurance that insures the life of a minor. It is usually purchased to protect a family against the sudden and unexpected death or disability of the breadwinner. Child life insurance policies typically offer the owner the option to purchase, or in some cases obtain additional guaranteed insurance when the child reaches maturity.

As we all know, nothing in our lives is guaranteed and in the event you pass away, your loved ones will be severely impacted both emotionally and financially. It is therefore important that you make sure that the financial needs of your loved ones are provided for and to prevent that loans, such as your bond or any other debts, will not become their responsibility.

If you are struggling to afford your current life insurance premiums, remember that there are quite a number of alternatives that are well worth considering, instead of cancelling your policy altogether. They are as follows-

Decrease the value of your life cover policy

If your current life insurance premiums are high and you can no longer afford to pay them, you could perhaps decrease the value of your cover, so that at least your dependants will have some funds available instead of none at all. Most life insurance providers will be able to assist you in lowering your monthly insurance premiums by adjusting the value of your life insurance cover, which is certainly an option worth considering.

Change from permanent to term life cover

If you currently have a permanent life insurance policy, you will be paying higher premiums than if you were to have a term policy. It is advisable to speak to your insurance consultant to enquire about the possibilities of changing your cover. Term life cover is usually cheaper than permanent cover, which may have a big difference in terms of affordability. Should your financial situation improve over time, which is always a possibility, you can change back to permanent life cover.

Shop around for a cheaper life insurance policy

No matter which type of policy you currently have, such as a permanent life insurance policy or a term policy, it is always possible to consider other alternatives. You could go online and do some research into different insurance companies, and compare the cover packages they offer as well as their monthly premiums.

Get Unit Linked Insurance Plan for two-fold benefits-

A Unit Linked Insurance Plan (ULIP) is a product offered by insurance companies that unlike a pure insurance policy gives investors the benefits of both insurance and investment under a single integrated plan.

Getting Best Life Insurance Policy Made Easy

Everyone needs to get life insurance at some point or the other. The purpose of this article is to help citizens get the best life insurance policy. While buying life insurance, most buyers aim for best life insurance policy. By best life insurance policy it means a plan which would suffice one’s requirements at reasonable cost.

Many people want to get the best deal from a company one can trust. However, getting started seems to be the toughest leap for many people. Therefore, I have made this essential checklist to help you get the best life insurance policy.

1.       In order to get best life insurance policy you need to set your priorities right  

This refers asking yourself about things your life insurance policy must cover for you.

For instance, will your plan cover the following things-?

·         Pay your funeral arrangements?

·         Pay your outstanding balance like mortgage or other debts?

·         Offset loss of income? If yes then how long?

·         Contribute to your children’s future education?

·         Combination of all the above or part of them?

Tip- You can take help of online life insurance calculator to estimate how much you require to allocate for achievement of your goals. Simple, it will help you determine the insurance amount of coverage you should consider and the premium you will require to pay.

]2.       Who will be the beneficiaries?

Life insurance companies offer several products suiting different lifestyles as well as family needs. There are individual covers and joint covers which insures both the policyholder and spouse. It’s known as joint life plan.

Usually, joint life plans provide coverage prior to the death of any of the partner thus transferring the insurance benefits to the survivor.

3.       What should be the duration of your life insurance?

This requires you to answer the following questions-
When do your expect your mortgage to be paid off?

The amortization phase of your mortgage loan will help you to determine the duration of your term life insurance plan.

When do you expect your children to complete their education?

One day your children would have completed their education. Therefore, having excess of funds to pay educational expenses may prove to be unnecessary.

4.       When do you plan to retire?

This is crucial as one may be left with less replaceable income at that time.

Knowing the duration you will require the coverage for, will help you select the right product.

Tip-

1.       Take help of certain online tools to figure out the most appropriate policy as per your requirements.

2.       Multiple benefits at lower costs- Life insurance plans are the best investment vehicles for those who can’t afford individual insurance like health insurance or home insurance. It will help one to meet future medical expenses as well as periodic payouts to suffice requirements like daughter's marriage. It will also help in periodic payouts to suffice requirements such as child's further studies.

So I hope that you have got the necessary how much, who as well as how long questions answered to your satisfaction! What is the next step?

You are ready to shop!