People, generally, look for ways and means to guarantee financial protection for their families, in the unfortunate event of their death. Life insurance is one investment that would provide the family with a lump sum amount in case of your death. Now that you are ready to invest in life insurance, you first need to define your aim. What do you want from the life insurance? Understanding your need and evaluating the policy based on this is critical. Calculate the amount that your family would need to cover their expense of day-to-day living, education for the children, mortgage loans and even your burial expenses should you, unfortunately, pass away. This would give you a fair indication of the amount that you should insure for. Quote Supermarket can give you some life insurances quotes after entering some basic information about your wishes.
Various life insurance policies
There are many types of insurance policies. You need to carefully evaluate them to find your exact fit. Talk to an insurance agent who may be able to guide you satisfactorily. The question is how to find the right agent? For starters look for those who are accredited or licensed. Check out the company he or she works for and see if you can get some references about them. Once you get this information, it would be easier to make your own value judgment about the agent you will deal with.
Term insurance
Term insurance is a fairly inexpensive basic policy for a specific term. It could range from one month to twenty years or more and the amount of premium would depend on your age and health condition. The term insurance will be live as long as you pay the premiums regularly. Should death occur during the period of the term, the full sum assured will be paid to the beneficiaries nominated in the policy, if the policy does not have any restrictions or exclusions?
Whole life insurance is the most basic permanent life insurance policy you can buy. It is called permanent because it covers your whole life, till death. It has two components, insurance and investment. The insurance component pays the death benefit amount stated in the policy while the investment component regularly accumulates a cash value that can be borrowed as a loan or totally withdrawn. There are many variations of whole life insurance for you to choose from. Often life insurances are taken for a 30 year term.
Some other insurance policies are ‘family income benefit’, ‘critical illness cover’ or ‘income protection’.
Family income benefit insurance
Family income benefit insurance, as the name suggests, is to provide an income to the family that is agreed at the outset, should the policy holder die during the life of the policy. If the policy holder lives through the period of the policy no benefit will be payable.
Have you ever thought of the financial problems that could befall your dependants should you come down with a critical and life-threatening illness like cancer, renal failure, partial or total physical disability?. With Critical Illness Cover your family would be paid a lump sum on diagnosis of a life-threatening illness, if you survive for a minimum of 14 days.
Income Protection Cover is what you require if you are unable to work for any reason. It helps you pay mortgages and bills when you are out of work, especially if you are self-employed. It provides a regular tax-free monthly income during the period you are unable to work but on certain terms. The maximum amount you would be entitled to is 50% – 65% of your pre-tax earnings after all permitted deductions.
You must remember that only you would know what your needs are and as such a policy that is good for another person may not be good for you. Your choice of the policy would be based correct computation of you financial data, both present and future. Quote Supermarket can help you with this.
