Life Insurance: What It is ?? And How It Works ?
Thursday, February 15, 2007
Life insurance guarantees the financial security of your family and near & dear ones, no matter what happens. Life insurance helps in:
* Paying off any final expenses or personal debts (credit cards, car loans or a mortgage) * Compensating the loss of your earnings for your dependents.
* Contributing to the future education of your children * Protecting your estate by helping to pay the taxes due on an estate upon death * Leaving a legacy to your preferred charitable trust.
Who needs Life Insurance? The association of life insurance has always been with major life events like marriage, purchasing a house, or having kids. However, if these aren't associated with you, then try answering these questions. If YES is the answer to any of them, you'll want to consider life insurance:
* Is anyone financially dependent on you? Whether it's your other half, kids, grandchild, parents or dependent adult, life insurance will help them in protecting their financial well being in case any mishap. * Do you have a mortgage, or are you on any other debts? If yes, a life insurance policy can help you take care of these outstanding bills along with any other expenses, like legal fees and taxes, and medical expenses. * Are you the owner of any business? o For sole proprietors, you're liable for the debts your business owes. Not having enough life insurance to cover these debts, may cost your personal assets to be liquidated to pay them off, possibly leaving little or nothing left for your dependents. o If you're in a partnership, and the other partner is the beneficiary of the life insurance policy then the surviving owner has the cash easily available to buy out your portion of the partnership from the estate. * Do you want to leave a legacy? Life insurance policies can be used to leave money to your favorite charitable trust.
What's the cost of life insurance? There's nothing like a standard cost for the insurance policy. Insurance professionals closely review various factors like your age, gender, whether you're a smoker, and your past and current health record and family history before they come up with a final insurance rate. Then all these are balanced with the amount and type of policy that you're applying for.
Do you know the different types of life insurance available ?
There are two main categories of life insurance:
Level life insurance or term life insurance &
Decreasing life insurance or mortgage life insurance.
Level life insurance, as the name itself says, is a level cover that stays constant during the full term of the insurance and a level lump sum pay out would occur after death. The sum assured is decided from the beginning of the policy.
Decreasing life insurance is used most often to cover a mortgage and works exactly the same as level life insurance, however the sum assured decreases over the term of the policy. This is ideal to cover a mortgage or decrease any debts that maybe paid off over a period of time.
In this era of Internet, life insurance is more accessible than ever. The instant online insurance quotes offered by the best online brokerages avoid any hard sell tactics the industry was associated with in the past.
To Know more about Insurance, Visit www.6FigureVenture.com
posted by sham @ 11:46 AM,
