2020-03-30

Spend Less On Your Home Insurance Policy

Property is a prized possession, and to safeguard it from unexpected damages in the event of fire, flood, earthquake, etc. getting a home insurance is always necessary. However, if your existing health policy is exhausting your monthly income, listed below are a few sure shot ways with which you can control your home insurance costs:

Shop around: The decision of buying a home insurance policy should not be taken in haste. Instead, you must explore and make a list of insurance policies that are being offered by various insurance providers. You may also get insurance quotes online to estimate the costs of different policies. Choose a reliable company from which you can buy the comprehensive home insurance plan that suits your needs, and of course, your budget.

Increase your deductibles: Deductibles is the fraction of the claim that you have to pay before your insurer pays the claim as per the terms of the policy. The higher the deductibles you set, the lower premiums you will have to pay every month. However, you must set the deductibles as high you can afford.

Locate intelligently: Purchase the property in a strategic location but make sure that it is based away from the damage-prone areas. Reason being, if you live in a disaster-prone areas where flood, storm or earthquakes are a common occurrence, there are chances that your home insurance policy may have a separate deductible for such kind of damages.

Avoid making small claims: This is the most common mistake that many people make. You exhaust your policy in small claims thus leaving no room for bigger loss protection. Rather it is advised to deal with smaller issues on your own and keep this policy to protect your home from bigger catastrophic losses.

Improve home security: To avoid getting your home damaged from little mishaps, it is suggested to increase the security in your home by installing devices like smoke detectors, burglar alarm, etc.

Merge Policies with one Insurer: Just like you pool your internet, phone, and TV package, you can also merge your insurance policies with one insurer. Buy your health insurance, homeowners, life, and auto insurance plan from one insurance company and come out cheaper by bundling these insurance products together. You may also buy policies in a package that is less expensive as compared to single policies. It also liberates you from the trouble of policy renewal.

Eliminate Unnecessary Coverage: Don't buy the coverage you don't need. Like earthquake coverage is often unnecessary in most zones, don't include jewelry if it is at a catchpenny price etc. Also exclude a land value from your policy. Covering land on which your house is constructed is simply of no use as it is unlikely that your land will be stolen or burnt is fire. So to save big, insure the value of your home only.

There are many insurance providers who offer age and profession discounts as well. Some times there certain discounts for retirees and people with good credit rating. Never eliminate the coverage that is important just to save your money as spending extra on important services will benefit you in the long run.

2020-03-30

How And Where To Buy Life Insurance

The life insurance premiums may start off from a couple of pence per day based on the level of coverage you need. Aside from this, it also depends upon what may happen to you down the road. If you have been looking for a good life insurance policy, we suggest that you don't go for the first offer that some company sends to you. It's always a great idea to shop around. Read on to know more about it.

As said earlier, the cost of life insurance is based on the level of coverage you need. In other words, it depends upon the amount that you want to get paid on your death. The amount you will pay will also be dependent upon the likelihood of your death. Given below are a few factors that will increase or decrease the insurance premiums you will pay each month:

While the majority of the individuals will invest in a life insurance coverage typically to offer death benefit proceeds, but life insurance policies of late have introduced some alternate concepts pertaining to how insureds are capable of using the policies funds when they are alive. This is known as the living benefits of the policy. Life insurance policies are no longer used only after the demise of a person, but now the policy benefits has been more customized for various other needs which is helping people to use their policies for their different needs and goals.

The living benefits also called as the accelerated death benefits may be included in the life insurance policy as a rider during the purchase or afterwards. Such advantages will enable terminally ill people in accessing a part of the proceeds of their insurance death benefit before their demise.

Following the increasing health care expenditure, the majority of the people is faced with terrible financial hardship during their difficult times. As a person has to face the difficulty both emotionally and physically, the financial assistance which funds from the living benefits of the policy can offer will serve as a welcome relief. Such funds, along with relieving the stress on a person will also relieve the stress of the loved ones.

The benefits from a life insurance policy typically can be accessed through a policy loan or a policy surrender. Living benefits in essence serve as a form of lien against life insurance policies. It will cut down the death benefits which are actually payable to beneficiaries as well as cut down the sum which is accessible for loans along with the policy's cash value. In fact the lien will be equivalent to the payment amount of the living benefits which the policyholder will get along with accrued interest. With life insurance policies continuing to evolve, the advantages which are provided through such plans is likely to persist to offer for the changing and unique requirements of the policy holders and on a broader scale.

2020-03-30

4 Life Insurance Tips

If you are going to purchase life insurance for the first time, you may be a bit confused and overwhelmed, which is normal. During this process, you may hear terms that may be Greek to you. However, the good news is that you can understand all the relevant terms with a bit of research. If you want to investigate the insurance, you can follow the tips given below for making an organized approach. This will help you choose the policy that will suit your needs.

Know Why You Need the Insurance

First of all, you should keep in mind that life insurance is a very important investment decision and it should be made after a lot of thinking. Buying a policy on someone's recommendation alone is not a good idea. In the same way, don't just buy an insurance policy based on the ads you have seen on TV or Internet. Keep in mind that not everyone is in need of this type of insurance.

What is the benefit of life insurance? Actually, the policy gives financial support to your family if you are not there to provide for them. So, if you don't have a family, you don't need to buy a policy. If you have a family to take care of, you may want to think about the steps that you can take in order to meet the financial needs of your family in case you pass away. The thing is that you should understand this tip before you go ahead and buy life insurance.

Type of Policy That You Need

As far as insurance goes, you have two options: whole life and life. Actually, Term life is an insurance policy that provides coverage for a certain period of time. Therefore, this policy is not as expensive as the whole life insurance. Usually, it expires before you have enjoyed the benefits.

The great thing about whole life insurance is that it lasts until the day you pass away. This type of policy costs more money since the coverage may last many decades. You can borrow this type of policy against a higher rate of interest.

Should you go for a term life policy?

You may want to opt for a term life policy if you know that your family won't depend on you for their financial needs for good. For instance, many owners go for term life policies that give financial support to their kids until they move out and stand up on their feet. As soon as the kids become financially independent, you won't need to pay for the insurance policy and the beneficiaries will be dependent upon your contributions.

Know How Much to Buy

Knowing the needs of your family may help you determine what type of insurance policy you need. We suggest that you don't follow "rule of thumb" guides that you may come across online. You know your needs. So, your decision will depend on your specific circumstances.

Whole life and endowment participating policies in life insurance policies bundle together a savings and investment aspect along with insurance protection. Hence, for the same amount of insurance coverage, the premiums will cost you more than purchasing a pure insurance product like term insurance.

The upside of these bundled products is that they tend to build up cash over time and they are eventually paid out once the policy matures. Thus, if your death benefit is coupled with cash values, the latter is paid out once the insured dies. With term insurance however, no cash value build up can be had.

2020-03-30

Life Insurance: Back to Basics

The modern insurance contracts that we have today such as life insurance, originated from the practice of merchants in the 14th century. It has also been acknowledged that different strains of security arrangements have already been in place since time immemorial and somehow, they are akin to insurance contracts in its embryonic form.

The phenomenal growth of life insurance from almost nothing a hundred years ago to its present gigantic proportion is not of the outstanding marvels of present-day business life. Essentially, life insurance became one of the felt necessities of human kind due to the unrelenting demand for economic security, the growing need for social stability, and the clamor for protection against the hazards of cruel-crippling calamities and sudden economic shocks. Insurance is no longer a rich man's monopoly. Gone are the days when only the social elite are afforded its protection because in this modern era, insurance contracts are riddled with the assured hopes of many families of modest means. It is woven, as it were, into the very nook and cranny of national economy. It touches upon the holiest and most sacred ties in the life of man. The love of parents. The love of wives. The love of children. And even the love of business.

A life insurance policy pays out an agreed amount generally referred to as the sum assured under certain circumstances. The sum assured in a life insurance policy is intended to answer for your financial needs as well as your dependents in the event of your death or disability. Hence, life insurance offers financial coverage or protection against these risks.

Insurance is a risk-spreading device. Basically, the insurer or the insurance company pools the premiums paid by all of its clients. Theoretically speaking, the pool of premiums answers for the losses of each insured.

Life insurance is a contract whereby one party insures a person against loss by the death of another. An insurance on life is a contract by which the insurer (the insurance company) for a stipulated sum, engages to pay a certain amount of money if another dies within the time limited by the policy. The payment of the insurance money hinges upon the loss of life and in its broader sense, life insurance includes accident insurance, since life is insured under either contract.

Therefore, the life insurance policy contract is between the policy holder (the assured) and the life insurance company (the insurer). In return for this protection or coverage, the policy holder pays a premium for an agreed period of time, dependent upon the type of policy purchased.

In the same vein, it is important to note that life insurance is a valued policy. This means that it is not a contract of indemnity. The interest of the person insured in hi or another person's life is generally not susceptible of an exact pecuniary measurement. You simply cannot put a price tag on a person's life. Thus, the measure of indemnity is whatever is fixed in the policy. However, the interest of a person insured becomes susceptible of exact pecuniary measurement if it is a case involving a creditor who insures the life of a debtor. In this particular scenario, the interest of the insured creditor is measurable because it is based on the value of the indebtedness.

Generally, life insurance policies are often marketed to cater to retirement planning, savings and investment purposes apart from the ones mentioned above. For instance, an annuity can very well provide an income during your retirement years.

Whole life and endowment participating policies or investment linked plans (ILPs) in life insurance policies bundle together a savings and investment aspect along with insurance protection. Hence, for the same amount of insurance coverage, the premiums will cost you more than purchasing a pure insurance product like term insurance.

The common practice in most countries is the marketing of bundled products as savings products. This is one unique facet of modern insurance practice whereby part of the premiums paid by the assured is invested to build up cash values. The drawback of this practice though is the premiums invested become subjected to investment risks and unlike savings deposits, the guaranteed cash value may be less than the total amount of premiums paid.

Essentially, as a future policy holder, you need to have a thorough assessment of your needs and goals. It is only after this step where you can carefully choose the life insurance product that best suits your needs and goals. If your target is to protect your family's future, ensure that the product you have chosen meets your protection needs first.

It is imperative to make the most out of your money. Splitting your life insurance on multiple policies can save you more money. If you die while your kids are 3 & 5, you will need a lot more life insurance protection than if your kids are 35 & 40. Let's say your kids are 3 & 5 now and if you die, they will need at least $2,000,000 to live, to go to college, etc. Instead of getting $2,000,000 in permanent life insurance, which will be outrageously expensive, just go for term life insurance: $100,000 for permanent life insurance, $1,000,000 for a 10-year term insurance, $500,000 for a 20-year term insurance, and $400,000 of 30 years term. Now this is very practical as it covers all that's necessary. If you die and the kids are 13 & 15 or younger, they will get $2M; if the age is between 13-23, they get $1M; if between 23-33, they get $500,000; if after that, they still get $100,000 for final expenses and funeral costs. This is perfect for insurance needs that changes over time because as the children grow, your financial responsibility also lessens. As the 10, 20, and 30 years term expires, payment of premiums also expires thus you can choose to use that money to invest in stocks and take risks with it.

2020-03-30

Something That You Would Like To Know About Your Life Insurance

Life insurance is meant to make the life of your family members easier in the event you die. When you die, your children, grandchildren, and other members of your family are given a financial payout that helps them move on with life even in your absence.

Types of life insurance There are many types of life insurance policies that you can go for. The most common are: Term policy: This is the simplest type of life insurance. The policy pays you only if you die within the term of the policy which is usually between one and 30 years. Two of the most common term insurance policies are: level and decreasing term. The level term means that the benefits that you are meant to get stay the same throughout the duration of the policy while the decreasing term means that the death benefits drop over the duration of the policy.

Permanent: From its name, this policy will pay you regardless of when you die. Even if you die at 100 years, the policy will pay you. Just like with term insurance policy, the permanent policy comes in different categories such as universal life, traditional whole life, and variable universal life. In the traditional whole life policy, the death benefit and premium remains the same throughout the duration of the policy.

The universal policy is similar to the traditional life insurance policy but here you have the added benefit of higher earnings of your savings. With this insurance, you can change the premiums where you can increase, decrease, or even change them to your liking. You can also change the amount that you are insured for.

Variable insurance provides you with fixed premiums and you have the option of investing your money in stocks, bonds, and other money market-based investment options. Here the cash value and death benefits rise and fall depending on how your investment performs.

What you should know about life insurance Although, life insurance is designed to cushion your family members upon your demise, you don't have to wait until your death for you to benefit from it. With permanent insurance, you can use the amount that you invest for any other purpose that you want. You can use the amount you save to pay for college fees for your children or yourself, fund your wedding, or fund a major home improvement project.

When you are spending the amount, it's good to note that the amount that you remove from the fund is deducted from your savings. This results in a reduction in the benefits that would be transferred to your beneficiaries when you die.

This is what you need to know about life insurance policy. There are many insurance companies where you can get the policy but it's good to note that no two companies are the same. Before you settle on any company take your time to research the company and ensure that it's reputable. You should also carefully consider the payment plans and the benefits that you stand to get.

2020-03-30

Why You Should Get Life Insurance

There are many financial investment plans out there but, life insurance can be seen as one of the most important plans. There is a myth among people that when they get older only then they need to obtain one, but, this is all so wrong. Bank deposits and other saving plans are some other investment options but insurance tops all of that. Apart from being a means to give funding for financial goals of the future, it also provides security to your loved ones in time of need. There are many valuable reasons why you must get a policy right now.

Security- The first and the most important thing it can provide is financial security to your family after your death. None of us can see the future and there have been many cases of premature death every year. It is your responsibility and duty to make sure that your loved ones stay completely secured even in your absence. Insurance plans can give this security in various areas such as expenses for your children, as a substitution for the income which is lost with your absence.

Help in accomplishing future goals- When you plan or decide on a goal you have to calculate how much money may be needed to fulfill that goal. An insurance policy can give the assurance in matters of funding even in the most unfortunate situations.

Retirement Goals- Life Insurance can make sure that in every month a regular flow of income remains. When you invest in a plan regularly, a fixed income even after retirement is assured. Nobody can guarantee that one will have a longer working life surely as there are many threats and issues such as, illness and company's burn-out rate which can happen to anyone. A person's retirement period can possibly become as long as that person's working period and so it is very important to compile a bulk in the working period so that the retirement period can be enjoyed in the right way. Spending on an annuity can help to achieve this.

Tax Benefit- You get a number of tax benefits by purchasing an insurance policy such as the maturity benefits are free from tax under the Section 10(10D), and also the paid premium can be deducted while calculating your tax under the 1961 Income Tax Act.

Thus, you can see that there are so many benefits of buying a life insurance policy in giving security and also for investing and saving purposes. So, it might be a good option to think about getting one at an early age.

Keep in mind that your purpose of getting a life insurance policy is to give protection to your beneficiaries in case of your death. You don't have to have any other purpose in mind. Although permanent policies allow you to earn cash with the passage of time, you can't consider them as a form of investment. This is not a business, so keep this in mind.

You may want to get the most out of your premiums. When you choose a policy, you may want to ask the representatives of the company about the policy riders that they may be offering. What are the riders? Actually, the endorsements or riders are methods that you can use to enhance your policy in order to satisfy your needs based on your budget.

2020-03-30

Buying Life Insurance Made Easy

If you are new to life insurance, choosing life insurance may sound overwhelming. However, the fact of the matter is that you can choose a good policy once you have understood a few tips that we have given below. The insurance policy will secure the future of your kids. Therefore, we highly recommend that you consider this option.

As the term suggests, the trial period allows you to "try" your policy for a few days. During these days, you can review your policy in order to make necessary changes. You can make your desired changes or reject it. To know the length of the period, make sure you get in touch with the representative of your company.

For some reason, if you think the policy is not right for you, you can change your mind and go for a new policy. As a matter, this is a great feature of insurance policies.

While you get quotes from various providers, make sure you compare similar policies. For instance, you can't compare a permanent life insurance policy to a term life insurance. The reason is that the later features lower premiums. So, the price difference between the two can be huge.

Based on your needs, make sure you review all the aspects. Making this decision depending upon the monthly premium alone is not a good idea.

As said earlier, the purpose of getting a life insurance policy is to give financial protection to your family in case you are no longer with them. Therefore, you should choose a company after a lot of careful thinking. You should sit down with your family, friends and relatives to get suggestion. The most important thing is to go with a reputable provider. Reputable providers are usually the most reliable.

So, if you have been reading up on life insurance policies to make the best choice, we suggest that you consider these 5 tips. Hopefully, the tips will guide you and you will end up with the right policy. After all, what matters the most to you is your kids' future.