Should You Consider Life Insurance

Life insurance is one of those things that few people could fail to benefit from. It offers peace of mind to the policy holder and financial support to its beneficiaries. If you need a list of reasons to get life insurance, here are a few to get you started.

Most obviously, life insurance can provide for your family in the event of your death. It essentially works like this: in return for your monthly premiums, the insurance company agrees to pay a lump sum to your beneficiaries (the person or people you designate to receive the death benefit).

Your beneficiaries are not restricted in how they use this money. That means that even if you die, your family can pay off debt, keep their home, go to college – in essence, your family will be able to maintain its lifestyle without your assistance. Of course, all this depends on which type and how much life cover you choose to buy.

In some instances, the benefit may be used to pay off money you owe. Some people may choose to link their largest debts to a decreasing term insurance policy due to the magnitude of their debts. For instance, a decreasing term policy covering a home debt will charge lower premiums as the the home loan is paid off. The insurance company will pay the remaining amount to the bank should death occurs before the loan has been fully paid.

If you wish to your death benefit to cover more than outstanding debt, consider whole life insurance. With this type of cover, you make premium payments over the course of your life. You may choose to pay level payments or arrange to pay higher premiums at the beginning of the policy which will allow you to stop making the payments at 60, 65 or 85 and retain your coverage. In return for your payments, the insurance company will pay a death benefit in the amount you choose to your beneficiaries upon your death, regardless of how long you held the policy.

If you are HIV-positive, South Africa is one of only two countries that offer life insurance cover for people with HIV/AIDS. Your premiums may be somewhat higher, and your insurance provider will require you to maintain antiretroviral treatment.

Make sure that you deal with reputable and dependable companies that are known to honor their payout agreements. Most experts recommend checking with more than four companies to find out about the different options and plans in the market.

Bear in mind that a life insurance policy may be the only protection your family has from financial hardship in the event if an unexpected death. The peace of mind coming from the knowledge that your family will be provided for more than offsets any inconvenience you may experience now.

Tom Martens is the syndication coordinator at lifeinsurance-southafrica.co.za. South Arica’s leading Life Insurance portal

Critical Illness Cover Explained

The Association of British Insurers (or ABI) recently proposed a document known as the “Statement of Best Practice for Critical Illness Cover.” The document says that a critical illness cover plan will pay out a lump sum figure if you should meet the definitions of the following illnesses: stroke, cancer, and heart attack.

If you meet the definitions of these illnesses and acquire one of them during the term of the policy then your insurer will be required to pay out a lump sum at that time.

Cancer, heart attack, and stroke aren’t the only illnesses with these types of policies; however, the list may vary between each insurance provider. This is why it’s important to seek the knowledgeable advice of an insurance adviser.

The British Insurers Association has put together an exhaustive list with definitions of all the possible critical illnesses but each insurance company will choose which policies they want to cover. Currently, there are 23 definitions under the ABI’s Statement of Best Practice for Critical Illness Insurance.

These definitions will include things like blindness, Alzheimer’s, HIV infection (contracted under specific circumstances), aorta graft surgery, deafness, and coma. Many of these illnesses will have very specific definitions that include or exclude certain elements. A perfect example is kidney failure, as you will need to be on dialysis to qualify for this critical illness. Another one is MS because it will only be considered a critical illness if the symptoms persist for a specific amount of time.

By using the life insurance provider’s Key Features document you can review specific sections of your policy. This will help you compare the polices of a number of different life insurance companies and allow you to find the best deal on the illnesses that you want covered.

A lot of UK residents choose to purchase critical illness cover for their children, which would pay out at around 25% of the policies sum assured. These children’s policies are usually capped at a certain amount though.

Another benefit that is usually included is a ‘waiver of premium’, which can cover payments when you fall ill and can’t work. Adding this onto your policy will often increase the costs though.

All of the policies will have certain exclusions that will void your policy so make sure you are aware of these. This could include things like unreasonable failure to follow medical advice, war, drug abuse, and flying among other things.
Different insurers will have different definitions of their exclusions so if you partake in something like a hazardous sport or pastime you’ll want to understand the risks of your policy.

Many insurance companies will use similar specifications and will have their own exclusions so make sure you know what you’re getting into. One of the exclusions that are very commonplace is non-disclosure of medical information, as it might affect your critical cover policy. If you lie to the insurance broker and they find out later you or your family may get nothing and the insurance company usually takes these matters very seriously. It is always better to just tell the truth.

You can usually bundle your insurance products together to save money. So a normal package would include life insurance cover, Permanent Health Insurance, and Critical illness cover. All of these things might not be necessary for your specific needs but a lot of people would rather be safe than sorry.

Learn more about critical illness cover. Stop by Vern Eaton’s site where you can find out all about how to compare critical illness cover prices in the UK.

Examples of Why People Choose to Get Their Lives Insured

When the majority of the population begin their adult lives, one plan for the future is to gain some sort of life insurance. A person doesn’t know when their life can be taken from them, and this style of insurance is excellent for taking care of one’s final expenses.

Married couples often choose this type of insurance allowing the significant other to become the beneficiary. This means all funeral costs, and any other expenses incurred to cause a death will be paid at once.

Most times, the amount of an insurance quote depends on how old and individual is. The older person will be required to pay a higher cost.

If you are a senior citizen, still working as a steel fabricator on high rise buildings, that smokes cigarettes, and drink alcohol constantly. You will probably not be able to afford life insurance. This is when the described person comes to a crossroad. Either change the lifestyle or choose another alternative to take care of those that will be left behind.

After an insurance agent gathers all required information to perform an a quote. The applicant will be asked to visit a family doctor for a full physical. This is done, to ensure the person is in good health at the time of purchase. This increases the results for an accurate quote.

How you live your life, is your business. However, when you decide to engage in things that are considered likely to cause death, you are put into the high risk bracket. High risk takers will pay a greater monthly sum.

The questions that will be asked on an application, pertaining to habits, are cigarettes and alcohol consumption. These are the most popular, but there are other bad habits that are used to determine the level of death risk.

Maintaining healthy habits, makes it more affordable when selecting a life insurance policy.

While planning for the future, take all these examples into consideration. The price of a life insurance policy will lever on this information.

Graham McKenzie is the content Syndication Manager at insurance123.co.zaSouth Africa’s leading Life Insurance information portal

Your Life Insurance: How Does It Work?

Life insurance is exactly what the name suggests an insurance policy on your life. You buy a policy from an authorized agent, paying the company a monthly, quarterly, or annual premium. In return, the insurance company agrees to pay a set amount of money after your death. The proceeds of a life insurance policy go to your designated beneficiaries, usually in a single lump sum payment. If the policy does not designate beneficiaries, then the payment is made to your estate.

There are two types of life insurance policies: Protection policies: these are commonly called term life insurance. These policies are temporary and provide coverage for a specific number of years for a specific premium.

Term life does not build up cash value. You are just buying protection in the event of your death, and nothing else.

Whole life, also sometimes called permanent life insurance. The objective of whole life insurance is to accumulate money through the payment of regular or lump-sum premiums on which interest is paid, while also providing coverage in the event of death. Whole life coverage is sometimes also called permanent life insurance. The premiums you pay for whole life do not change, and there is a fixed, guaranteed cash value for the policy. The funds accumulated from the payment of premiums each year can be paid to you whether or nor you die, for emergencies, vacations, retirement, or other expenses. If you take these funds for other purposes, of course, they are not paid when you die.

In addition to whole life insurance, other permanent policies include universal life insurance, which offers flexibility in that the insured can change the payment schedule or coverage amount; variable universal life insurance, which allows the potential for earning market returns; and single payment whole life insurance, where the insured buys the policy with one lump sum payment.

Life insurance policies typically pay on death, although they may also cover dismemberment or certain serious illness, such as heart attack or cancer, and provide additional benefits in the event of accidental death. It all depends on the particular policy you buy. Proof of death, injury, or illness is always required before the insurance company makes payment, regardless of the type of policy. Remember, before you are covered, you first have to get a physical exam from a company-approved doctor, so the company has an accurate picture of your medical history. Even after you pass your physical and your application is approved, your coverage does not start until your premiums are paid. Once your application is approved and your premiums are paid, only then is your policy is activated.

A qualified life insurance agent can answer all your questions. He or she can help you customize coverage to meet the needs of your family.

Tom Martens is the content syndication coordinator at Lifeinsurance-Southafrica.co.za South Arica?s leading Life Insurance and Life Cover portal.

Life Insurance, is it Really For Me?

Getting a life insurance policy should not even be a question. Don’t you want to ensure your loved ones are well taken care of after you pass? Of course you do, so why take the chance they will not make it financially in the event of an unexpected death?

Life insurance is the only true way to protect your family financially after you pass. While it’s common to give the money over to your spouse, other people sometimes reward the money to other beneficiaries, including brothers or sisters, children, or nieces and nephews.

Life insurance can stay relatively cheap packed with great benefits assuming you meet a set of criteria. It’s also important to start young and not open up the policy when you are entering a mid-life crisis. Start young because you never know when you’re going to die.

Again I stress the importance of opening up a policy as soon as possible. You never know when death is going to come knocking at your door. It’s unfortunate to think about, but a cold and harsh reality.

If you have an insurance broker, ask for details and investigate the implications of taking out an insurance policy on your life. Assuming you are in good health and your occupation is not “high risk,” your chances of a cheap premium are high.

You can prove to the insurance provider that your health is outstanding by taking their required medical examinations.

If you take out the plan early, you now have an option of halting payments when you reach retirement age. If you are concerned about still paying the premium when you no longer make as much money as you did when you worked, you can stop paying the premium. The insurance provider understands and will still award the “fixed term” rate when you pass. But you must start early to enjoy this pleasure.

“Who needs life insurance?” Stop asking yourself that question and sign up before it’s too late.

Graham McKenzie is the content Syndication Manager at insurance123.co.zaSouth Africa’s leading Life Insurance information portal

Why is life insurance essential?

Every person no matter how old or healthy you are should ensure that they have life insurance. I would like to tell you the reasons why this is such a necessity to ensure every eventuality is covered and that those you leave behind are all looked after even if you cannot do it yourself.

When you are deciding to get life insurance you should definitely make sure that you look over your options. This is because you do have many options, even if you feel that life insurance is something that you cannot afford. Just think, if as a family you are struggling imagine what it would be like if you are no longer around. For a little a month you will not have this worry.

For those who think they cannot afford their life insurance, they should definitely look into term cover. The reason for this is that it is the cheapest way that you can make sure you plan for the future. The way it works is that you are covered for the amount of time you pay in your premiums. After that you have the option of renewing it so that it can be ongoing, however the renewal will mean that you have to pay more in premiums that you have previously.

If you have a mortgage, or any other debts that you are still paying off this is a great option for you as it will mean that the family left behind are able to cover any debts, funeral costs and anything that is needed in the future with the insurance payout so they are not left poverty stricken because you are no longer there.

The other option is to get a life insurance that will cover you no matter what and is just that a full life insurance, it will mean that you will not have to renew your coverage neither will you have to worry about the premiums going up.

You have two options with this kind, and the one you choose will be dependant on how much you want to leave behind and what you are able to afford. The first kind is where you continue to pay for the rest of your life. The next one is to pay for a set amount of time, but this will mean that if you live a long life you will have saved up as much as you could with the latter.

Another benefit to this kind of insurance is that you have the option of putting some of the money from your premiums into an account, which will mean that you are able to access it if something comes up, and this means that you will not have to dip into the monies you have budgeted for. Neither will you have to take out further loans and have to worry about the high interest.

By having which ever kind of life insurance you can rest assured that no one will have to foot the bill of funerals or any debts you may have. This will mean that you are able to give a gift to those who will need it most and although it will not bring you back to them, it will mean that they will not have to suffer any more than they already are.

The most important thing that you can acquire in your time on this planet is Life Insurance. But you will need to make certain that you get a few Life Insurance quotes before you settle for one policy.

Life Insurance – Do You Need It

There are essentially two kinds of life insurance. Or, as some call it, “death insurance” or “funeral payments”. In any case, both have the same purpose.” to give your family some money to replace what they are losing with your death.

The first, and most common, is term life insurance. The name was derived from the fact that the policy and your coverage are good for a special term, which is the length of the policy. The terms run between ten and 30 years and usually are chosen in five year increments.

Term costs less because the carrier is assessing their risk as to whether or not you will pass away during the coverage years. For your family to see any money, you need to die during the tenure of the coverage.

They “bet” according to your risk factor and from this they then determine the likelihood of your death or survival. Over 50, heart attacks, cancer survivor, or even high cholesterol will put you into high risk categories and increase your premium.

Universal life is another kind of insurance. Also called cash value, it costs more to be covered for less. Unlike a term policy, cash value will cover you for your entire life, but of course you are paying premiums forever, too.

Whole life also has a savings portion of the policy. The company usually guarantees you a return on your investment, but the company actually keeps most of it; you really only see about 3-4%. Read the first few pages of your policy, that is where it discusses your investment return.

Also when you are reading the fine print, you should look for the section that talks about exactly what funds will be paid out upon your death. Your family doesn’t get the cash value and the death benefit! They get the death benefit – the face value of the policy. The company keeps your cash value.

Last but not least, if your insurance agent tells you that your policy will pay for itself after so many years, ask how this is done. Agents want their customers to believe that after about 20 years no more premiums are due. This isn’t true at all. Premiums are due, but they are taken out of your cash value portion, reducing it significantly. If you ever need a loan, you’ll be in trouble.

When your trying to get Life Insurance quotes picking the best place first can seem daunting. But to get the best costs on Life Insurance, you need to look around and compare. Go online to get the best costs now!

Planning For Happiness With Life Insurance

Life insurance companies have many methods which allow for the supplementation of a family if the breadwinner were to come to an early, unexpected death. We now have the option of choosing a type of life insurance policy that will work for our needs and invest into it accordingly. Unlike others who ignore the necessity of investing into the future or immediate gain, those of us who put the effort towards investments are able to have peace of mind and relax regarding the security of our family?s financial future.

And then, as we all do when we find something wonderful for our own lives, we can spread the good news of investing to our family and friends to guard against possible financial disasters.

I have already witnessed the effect of life insurance and experienced the benefit of being covered by it. Once invested in it, we have the peace of mind that comes with knowing that all our plans are going to fall nicely in place. Even in the event that money is plentiful, it’s always wise to plan ahead and think of the big picture by putting some of it towards the future. This way, we allow ourselves the comfort of knowing that the luxuries of the present will not be missing in the future. We’ve all experienced those days when everyday life obligations are too demanding for much spare time to be had.

Many formerly rich people made that mistake,but pride leads to disaster, and if you don’t compensate for the worst then the worst will surely happen. Recent economic troubles have shown us that no amount of money makes someone safe from disaster. Money is worthless without the wisdom to keep it throughout your life. No matter how good things look right now, it’s always smart to have something to fall back on if things take a turn for the worst tomorrow. With maturity, self-discipline, and an eye on the long-term, you easily get insurance that is both affordable and useful. Once that’s done, you can relax in knowing the insurance company’s got your back.

A few years back, my aunt lost her husband. Thankfully, she didn’t have to worry about any financial concerns because my uncle had invested in life insurance several years before. She was being compensated well by it and therefore had no trouble providing for her children in their educational pursuits. My cousins were not missing out on any opportunity in life they may have had taken from them thanks to our life insurance policy. This helped me to decide that when the right time came, I too would be taking out a life insurance policy so that my family would be safe in a life after me, no matter when that time comes. As soon as I had my affairs in order, I discussed my plans with the professionals and decided to invest in life insurance. It was explained to me the importance of paying premiums on time so that the policy will not be disturbed or interrupted.

My cousins did not miss out on any of the luxuries they had while their father was still alive. Because of my uncle?s example and my aunt?s financial comfort after he was gone, I made up my mind that when the opportunity came, I too, would invest into a life insurance policy for the sake of my family. With the aid of a good life insurance agent, we put together a plan investing into the universal life insurance policy, similar to that of my uncle?s. The agent explained that it is important for me to pay my premiums on time so the policy did not lapse or get disturbed in any way that may cause a problem in an emergency. I agreed to the rules and regulations put forth and found peace in the security of the future for my family.