February 21, 2018

 

Instant Term Life Insurance Is The Security That You Deserve

For so many years people seek of alternatives or options to provide additional financial support for our beloved family, a highly recommended solution is the instant term life insurance. This type of life insurance will surely aid the family should the insurer dies within the term. A certain amount in monetary fund will awarded to the beneficiary if she can provide a proof of death of the insurer. If the beneficiary is encountering problems with the proof, she can coordinate with the company to solve this discrepancy
Cheaper life insurance rates are the main reason why people get hold of an instant term life insurance. The rates do not change until the end of the term. Unlike in other types, there will be changes throughout the term. It may either go lower or higher depending on the market changes
In the event of an unfortunate death of the insurance policy holder during the term; instant term life insurance policy nominee gets the sum assured amount; If the insurer survives during the term; one cannot claim the insurance benefits as these instant term life insurance purely offer death benefits for the said period. On successful completion of the term; insurance company offers the insurer to renew his life insurance. One can take it for granted that the offer provided by the insurance is the best. On choosing the offer; policy holder will not be asked to undergo medical examination. If one declines the offer, he has the option to choose other life insurance policies
Please refer the below criteria’s that needs to be met to apply for an instant term life insurance:
-One of the primary criteria is life insurance applicants age, since issuance of policy to older applicants may prove risky to the insurance.
-Applicants should be hale and healthy to obtain affordable life insurance policy.
-Applicant’s life style is taken into consideration since people addicted to alcohol and smoking, are prone to more risks
-Applicant’s driving records are verified to confirm that they are not reckless drivers.
-Applicant’s work environment is verified to confirm that the applicant is not working in a hazardous condition as they are prone to risks
Terms and condtions of any term life insurance policy indicates that the insurants will be subjected to medical examination. Insurant has to substantiate that he is hale and healthy to seek for a life insurance in the form of a medical certificate. If the insurant is unable to produce a medical certificate or fails the medical examination conducted by the insurance company, he will not be eligible for instant term life insurance. However on such occasions, life insurance company will offer the life insurance applicant an exclusive different plan; namely life insurance no exam. Applicants, who did not qualify the medical requirements laid out in the life insurance company policies, can avail the life insurance no exam policy. Thus in order to complete the transaction, all that one needs to do is the submission of the required documents if any and initial charges
Insurers who have been granted a life insurance no exam shall be responsible to pay its monthly charges. This type of life insurance is a bit higher than the term life, so the insurer should have plenty of resources to compensate the charges. If, for some unavoidable circumstances, the insurer fails to pay the monthly charges, he will be penalized. The penalty is normally very minimal and can be afforded; but this is an unnecessary expense. This should be avoided
Insurers are encouraged to pay on the specified date of payment to prevent them from paying any penalty. If they continue do this, the chosen insurance which was based on his monthly income will no longer be known as affordable. Being responsible also makes the life insurance cheaper
A lot of working people don’t have time to apply for a life insurance even though they wanted to. They will never know exactly what are the good benefits it can do for themselves and for their families. A good advice for these people is to get the professional services of a life insurance agent. This individual can handle any kind of situation that he may encounter during the processing. The good thing about a professional agent is that he will find ways to get the application its approval
Think of the benefits of the life insurance no exam and instant term life insurance. This will greatly appreciated if you get to hold one. There is nothing more important than preparing for the future of our dear family should the inevitable time occurs.

Buy a Low Cost Term Life Insurance Right Away

Common public are always on the search for term life insurances which can be completed easily. It is because of this reason; low cost term life insurance is so popular. This term life insurance offers so many short term period plans; in addition to the other benefits offered. One of the other benefits, is that the insurant will be able to renew the policy once he completes the term period. On renewal, he is offered an option, with far more benefits; however the life insurance rates will be slightly higher
A certain applicant cannot easily acquire a life insurance of his preference. He must pass the most important requirement of all term life insurances. This is the medical checkup. It is required for all applicants because it is used to determine their proof of insurability. A healthy applicant is qualified to acquire his preferred term life insurance because of his present healthy conditions. The company is confident that this healthy applicant can survive the whole term of the life insurance
An insurant who has survived the term period or who has completed the term period successfully, will be offered to renew his policy for another term of the same policy or choose a different policy. However if he dies during the term period; insurance nominee will be able to claim the policy sum assured plus insurance bonus if any. In order for the nominee to receive the funds, nominee must furnish the insurant death certificate. Nominee may also seek the assistance of the life insurance staff if he or she has difficulties in obtaining the same
The insurer is just planning for the future of his family should he cease to exist. The life insurance that he acquired assures him that whatever happens to him during the term, his family can have the assistance that they need upon his permanent absence. This will provide a new beginning for his family without him. It is very sad but they have to accept the truth that we will experience the inevitable. We just don’t know when.
It was mentioned that an applicant can get a life insurance if he passes the medical requirement. What happens if he fails the medical examination? Here, the applicant if presented with a different type of life insurance, an exclusive one. It is called the life insurance no exam. Disqualified term life insurance applicants are normally offered with a life insurance no exam. This is a higher paying type of life insurance. The insurer must be responsible to pay for the premium rates until he finishes the term
Remember that this is a long time obligation and failure to abide by the rules of the life insurance company will lead to unfavorable consequences like paying for penalties. These penalties can be avoided if the insurer is responsible enough in paying for the charges regularly
Eligibility criteria’s for Life insurance no exam are as follows: –
-One who did not qualify the basic medical requirement
-Active smokers and persons addicted to alcohol drinking.
-One who is employed in riskier environment or involved in dangerous activities such as bike racing, dirt bike, flying glidder
-One who is a reckless or irresponsible driver or who has caused several road accidents in the recent past
The applicants who cannot get a life insurance but can offer to pay any type of insurance, can can avail themselves of another type of policy called life insurance no exam. This type of insurance is available to these kinds of people. Of the various life insurance policies, this type is the best choice. The insurance company has come up, with this idea generously to help this kind of people. This provides the opportunity for people to avail themselves of an insurance who are deprived of the life insurance coverage earlier
Second most criteria that a life insurance company verifies is the applicant’s capability to pay the monthly or quarterly or half-yearly premium rates. It is very significant when an applicant buys the insurance coverage at his young age. Look out for opportunities to obtain a low cost term life insurance. It is always advisable to be better prepared for the future. Thus when you know that the life insurance company is going to take care of financial security, then why not secure your beloved family ‘s financial future. Do remember that your spouse will not be able to handle all tasks all by herself. Thus obtaining either the low cost term life insurance or a life insurance no exam, will make their life a better one, even in your permanent absence.

An Instant Term Life Insurance Is A Great Alternative For Future Finances

Many capable insurants do not know as to how to apply for an instant term life insurance. It is not that much difficulty as one thinks. In case the applicant, get the details from a close friend or relative, the job is made easy. If the applicant easily understands about insurance he can confidently go for this type of insurance
The applicant has a first step understand that he is physically fit to have a life insurance of his choice. This enables to opt for low cost insurance policy of his choice. The company is confident enough to issue a lower rate to these applicants. The company knows that these insurants would definitely finish the term of the policy
When an applicant fails the basic medical examination criteria; he can still buy a life insurance coverage. Life insurance company offers an exclusive plan namely life insurance no medical exam to these individuals. Life insurance no medical exam premium rates are always higher than any other term life insurances. These policies are exclusively offered to the applicants who are suffering from chronic ailments. Life insurance no medical exam policy is definitely one of the amazing concept of the life insurance company as these plan’s offers life insurance coverage to those individuals who have deprived of life insurance coverage earlier. Thus life insurance company lives up to the motto of serving all section of the community with its services
Where life insurance no medical exam policy is issued, the insurer should be careful in the payment of monthly premiums definitely. It is a costly fee to the insurant. Therefore the insured person should pay the fee on the due date without fail as fixed by the company. For any reason, the insurer fails to pay the premium, then he is compelled to pay the penalty for this. The penal fine amount is worked out on percentage basis and varies from one company to another. Therefore to avoid penalty, the insurant should see that the fee is duly paid on fixed dates
The instant term life insurance is very popular all over the globe. It involves low cost rates. The rates are fixed and don’t vary till the end of the policy period. If one dies in the course of the policy period, his family will get the money assured. This amount would be useful to support family financial matters. It is obvious that the benefit got can be equated to what the insurant would give, if he is alive
Criteria’s that needs to be met for acquiring low cost life insurance are as follows:
-A young applicant will be able to acquire instant term life insurance
-Physically fit and healthy applicants have better chance of surviving the term period; thus qualifying for a low cost life insurance.
-One who prefers a long term; will actually pay a low insurance rates
Acquiring a low cost life insurance has always been an issue among many prospective insurers. Once they have not passed for the medical requirement, they are deprived of obtaining a lower costing life insurance. It is the right of every company to have certain limitations. If not, these companies will be candidates for foreclosure. There are solutions that the companies have developed for every individual to acquire a life insurance. They just have to abide by their rules and regulations
One can easily find the low cost life insurance using the internet. This can be leisurely done by simply sitting at home. One can search for the right life insurance which will be accommodated by his income. One can also obtain free life insurance quotes from many websites. To obtain the quotes, all that one needs to do, is simply up the quotes application online and submit it. On receipt of the quotes, do a comparison on the rates and the benefits that you will obtain from the corresponding the life insurance plan. Life insurance enrollment process will be quicker with the help of quotes
Working class people in particular are ignorant about the various benefits of the life insurance that can offer to themselves and to their family. It is advised that such section of people should approach an insurance agent for obtaining life insurance policy. Insurance agent will be able to help the individual’s; right from the application processing to the issuance of the policy. He will ensure that the applicants obtain the desired life insurance policies at any cost.

Know More About Life Insurance And Its Benefits

It is the duty of an individual to prepare for the necessities of his family. A good recommendation is obtaining a life insurance that lasts for specific period of time. A short term life insurance is very popular among lots of people in every country. Having a short term allows every insurer to finish it the soonest possible time and then reapply for another term. He can renew his life insurance without any changes or take the offer of a better one like a whole life insurance
Life insurance applicants needs to qualify some of the basic terms and conditions of the life insurance. Submission of medical certificate or qualifying the medical examination is considered as the primary condition of the life insurance company. This is to ensure that the applicant is insurability
To get a life insurance policy of one’s choice by rule, every applicant has to pass a medical test. Once this is done, his capability to pay the premium for the life insurance for quarterly or monthly installment is worked out. The company is very particular about the periodical payments as this aspect has reference to the contractual obligation. Failure in this regard would make one to pay a fine
Penalties are already pre-computed because delayed payments are more likely to occur to any individual. Penalties are just waste of money. This can be avoided if we are just responsible in paying on the right date. If the insurants does not qualify in the medical test, he can still avail of one. An exclusive type of life insurance is presented to these kinds of individuals. This is known as the life insurance no medical exam
As said above, life insurance no exam is offered to individuals who are physically or mentally unfit. Insurants who have been granted a life insurance no exam shall be responsible to pay its monthly charges. This type of life insurance is a bit higher than the term life, so the insurer should have plenty of resources to compensate the charges. If, for some unavoidable circumstances, the insurer fails to pay the monthly charges, he will be penalized
Life insurances can be selected according to their rates. An insurer has to qualify for the requirements to acquire the preferred package or a cheaper type of life insurance. There are basis to get hold of a cheap type of life insurance. Here are some of them:
-An applicant has to be healthy to acquire a lower costing life insurance.
-Applying at young age qualifies him for a low cost life insurance.
-People who have unfavorable driving experiences or records can not have the typical life insurance. He may qualify for a higher rate of life insurance. (life insurance no medical exam)
-Individuals who have a very dangerous work are most likely to pay higher premium rates because of the high risk of death.
-A regular cigar smoker can not acquire a cheaper one because he might acquire a deadly illness like cancer of the lungs. Even if he submitted instant term life insurance quotes, he cannot qualify for it
Talking about cheaper life insurances, an instant term life insurance is a candidate. This type of insurance assures the insurer that his family, the beneficiary, will claim a specific amount of cash if he dies during the term. This cash will partly help support the family in any expenses that the deceased breadwinner fails to provide. It can be used to pay the basic household expenses. It can help pay some of the children’s school necessities. It can also be possible to pay for home mortgage loans. The most significant part is that it can help provide a decent funeral for the deceased member of the family who is also the insurer
One can recall statements such “Past is history, future has no guarantee and present is a gift”‘ thus there is no better day than today to buy a life insurance policy. Visit the nearest the life insurance company and finish the formalities such as submission of details to acquire life insurance quotes. On receipt of the quotes, make a conscious decision such that your monthly salary will be able to fit the life insurance premium bills on a monthly basis. Issuance of policy and selection of policy becomes so easy with the help of quotes

Life Insurance for Children

When mentioning life insurance on a child, a parent may completely shut down. Yet, getting a life insurance on a child could be one of the greatest gift you could give that child. You see, when it comes to life insurance on children, early death is not the only factor. As a matter of fact, considering the statistics on child death today, worrying that your child will pass away at a young age is very unlikely.
Five Main Reasons to Give Your Child Life Insurance
* Insurability – Probably the number one reason parents get a life insurance policy on their child is to protect their insurability. What this means is, at a young age most children have very good health. That allows children to qualify for the best possible rates and usually guarantee the approval rating for life (select or preferred…). For the purpose guaranteeing insurability, we recommend that you get the highest amount of insurance available at a price you can afford. You will find that a $100,000 policy is not much more expensive than a $50,000 policy. We also recommend that you utilize a 30 year term life insurance plan with rates guaranteed for the full 30 years. make sure that the term life policy is convertible and and ask about which plans you can convert to (this is often overlooked and yet very important). The main advantage of term life insurance is that it is provides the lowest rates on life insurance. If you are able to afford it, a universal life with rates guaranteed for life is an even better option. Select option B or 2 when applying. This will allow your child to selectively increase premiums later (to a limit) and at the same time increase coverage without having to requalify.
* Low Rate Cost Saved – When you buy a life insurance policy on your child, you have essentially locked in the low cost for a number of years (with term life) or for life with whole life and universal life. We have yet to find an upset adult who’s parents bought him/her life insurance as a child. The fact is, cost of life insurance increases dramatically as we get over age 25. Rates can get even much worse if the applicant has health issues (even minor ones)
* Easy to get – Most children’s life insurance policies do not require an exam even at higher amounts of coverage – such as $300,000. Although it would be difficult to justify a $300,000 policy on a child, a parent should have no problem getting a $100,000 policy.
* Genetics – I think that you may guess where this one is going. According to some research, if a parent is prone to certain health problems, the child of that parent is much more likely to develop these same health issues. As of today, insurance companies do not rate people for their genetic predispositions. They may not do it, but you can. In other words, if diabetes or certain cancers or other medical issues tend to be prevalent in your family tree, it would seem even more important to secure a life insurance on your child before he or she develops any indication that they have the same medical issues – Certainly before your child gets diagnosed as such. Even for some diseases which are not likely to appear until much later in life (young adults) by securing the insurance early, very low rates can be guaranteed for life.
* Saving for future expenses – That is probably the most controversial reason to get your child life insurance. And for good reasons! I will keep this simple with a question. Do you save for your child’s college education? No! Well, you are like most people. Yes, it would probably be best to put money into mutual funds to build a college fund for your child, but, as with most people, if you are not going to do it, then a whole life or universal life is best. Besides, a child, who has reached the age of majority, is more likely to empty out a mutual fund account than a life insurance cash value account. The simple reason is that a child does not readily think of the cash value aspect of life insurance. This one is your choice. Make a wise financial as well as logical decision.
Term Life, Whole Life or Universal Life
We have written other articles on the benefits of whole life as opposed to term. For children, though, it is simpler. Get whole life or universal life at ages 0 to 16 or get term life above that age. Please go to our other articles for more details.
Reasons not to Get Life Insurance on Your Child
If there are reasons to get something then there are always reasons not to get it. In this case, the reasons are as follows
* Investment Value – Whole life and universal life are not the greatest asset builder. So if you are well organized and have the time for a master financial plan, then do not get whole life or universal life. You may want to consider term life for reasons we mentioned above.
* Health History & Health Habits – So not only do you have amazing genetics, but you also take care of your health and teach your kids to do the same. Yes, statistically there is a very high probability that your child will live many years before he/she develops any health issues. Which makes all reasons to get life insurance for a child valueless (aka: No Good).
Points to Remember
* You cannot get insurance on a child who is not a minor without their consent.
* Do not lie on your child’s life insurance application. If there are health issues or other problems, make sure to tell the insurance company. If the fraud is discovered, then you may not only damage your records but your child’s records too.
* Get life insurance on your self first. If you die, while the children depend on you, then whatever you got for them will be meaningless.
* Insure your spouse before your children
* save for retirement before you save for your children
* Take care to make sure that your other insurance policies are adequate before buying your child or grandchild a life insurance policy
* Beware of accident only insurance policies. That is not what you want!!!

Life Insurance – a protection against life’s uncertainties

Nothing in life is more scary than facing the only non-negotiable thing of our life & that is death. To date, death is a certainty. Along with this mortality comes an unpredictable existence and a fear of the unknown. It is unnerving for people to think about the thought of their own death or the death of someone they love. Thus you must be prepared at all times. In today’s life, which is filled with unpredictable & uncertain events, where we are having so many responsibilities to be fulfilled in one life and there are people who are dependent on us for their happiness and comfort, protection of one’s life becomes inevitable because there is nothing more important than your family’s security. We cannot ensure that we will be with them in their time of need, but what we can ensure is that we put together a means for them in times of worry and need.
It is a natural human tendency that beginning with the dawn of time, we use to protect our belongings. This natural instinct gave rise to the need for protection against most losses, which is how life insurance came about. Life insurance is the only answer to all such erratic & unpredictable events in humans life. Remember, it is not just your life you are insuring, but the lives of your loved ones as well. When we can ensure our homes, cars etc. then why don’t we feel the need to ensure the most important thing and that is Life. In this fast paced, fragile life style with less life span which we have today, insuring life itself has become a necessity especially if you are the sole breadwinner of your family. It is not mandatory; but you cannot afford not to have it ! Insurance helps us in getting protection against the unseen. Thus it may be wise to purchase life insurance so that if something happens, your insurance policy could serve as a protective shield to those you leave behind. An old adage, “The grace of GOD is like insurance. It will help you in your time of need without any limit” is not just a clich? and is rightly said.
What is Life Insurance?
It is a contract between the policy owner and the insurer, where the insurer agrees to pay a designated beneficiary a sum of money upon the occurrence of the insured individual’s death or other event, such as terminal illness or critical illness. In return, the policy owner agrees to pay a stipulated amount at regular intervals or in lump sums. Simply putting, it is a way to replace the loss of income that occurs when someone dies. It ensures that your family will receive financial support in your absence. It can be a great way to get protection for now and to plan for the future. After all, we want to make sure that our loved ones are taken care of if we die.
Insurance has turned out to be a very common term in the recent times. You can come across this word wherever you go and which ever magazine or newspaper you read. In fact whenever you hear about insurance, some means of protection & security comes into your mind. It is essentially the means to financially compensate for losses that life throws at people.
Why you need Life Insurance?
Life insurance is one thing that everybody needs to believe about. Parents think about it for their kids, and once you are a grownup, it is some thing that you simply get taught about. It is no longer for the privileged or only the elderly. It isn’t just for any one type of person. It is a universal protection for everyone. What insurance does is provides protection for your loved ones in case of your death. If you have a insurance policy in location and you pass away, that coverage may grant the cash to the beneficiary with the policy.
Life insurance isn’t for the benefit of the person who is insured, but it is for the insured’s loved ones because your family needs the guarantee of a comfortable financial future in the event that something should happen to you.
The primary purpose of life insurance is to enable your family to continue their current lifestyle when and if you’re no longer around. It is also designed to help meet specific needs that your family will have in the future.

If you have a life insurance policy in place, it could:-
1. Provide a financial security to your family
You would want the surviving members of your family to live in a safe and financially stable environment. Life insurance could allow them to do that so that your family continues to live a comfortable lifestyle as before. It will replace your lost income in the event that it goes away in the future. In other words, it creates a safety net of relief for the family that would be left behind without any other means of income.
2. Help in paying your debts
Life insurance could pay for remaining medical bills, funeral expenses, and credit card debts, and enable the surviving spouse to have some time to find a job or to retire comfortably. Just imagine if you are suddenly out of the picture, you wouldn’t want to leave your family to drown in a sea of debt. There comes the life insurance coverage that will help your loved ones to maintain their standard of living.
3. Provide finances to your loved ones to achieve life’s goals in your absence
An adequate life insurance policy will fund your unfulfilled goals like a quality education for your children, daughter’s wedding, for buying a piece of land, or just for a rainy day.
Thus it is not an insurance for you but its for your family’s peace of mind. Their future standard of living may well depend on the life insurance decisions that you make today.
Types of Life Insurance policies:-
Life insurance comes in many shapes and sizes, but the different types of policies can be broadly classified into two categories:
1.Term insurance and
2.Permanent insurance
Term insurance is the insurance policy under which the death benefit is payable only if the insured dies during a specified period & this policy does not have any investment component. It is the most affordable type of life insurance available. It is designed to meet temporary insurance needs; providing protection for a specified period of time, the term. This type of insurance makes sense if you have financial needs that will diminish over time, such as a home mortgage or a child’s tuition.
Each year, a premium is paid to cover the risk of death during that year. Term life insurance has no cash value. The only way to collect anything is to die before the term life insurance expires. If death occurs, the life insurance beneficiary generally collects the death benefit of the insurance policy, free of income tax.
Permanent insurance is the insurance policy that provides coverage throughout the insured’s lifetime and may include an element that builds cash value. This type of policy provides lifelong protection. It also provides a savings element that accumulates a cash value over a long period of time. In other words, this type of policy, combine life coverage with an investment fund. Here, you’re buying a policy that pays a stated, fixed amount on your death, and part of your premium goes toward building cash value from investments made by the insurance company.
No one type of life insurance is better than another because the type of insurance that suits your situation best depends on your personal and financial circumstances.
Final takeaway:-
You might have heard of the saying, “There are worse things in life than death. Have you ever spent an evening with an insurance salesman?”. If we go by the saying, if you haven’t yet met an insurance salesman, then speak with him today to get your & your family’s life financially stable & secured. Do not leave your family to drown in a sea of financial difficulties because we know that risks and uncertainties are part of everyone’s life & they are all waiting to happen.

Permanent or term life insurance?

Now that you are ready to purchase life insurance, the choice before you is what type of life insurance would best suit your purpose. Life insurance is not a one-size-fits-all product and each one must assess his or her own personal situation to come up with the right coverage and the number of years you would need that coverage. The two broad categories of insurance open to you are permanent or term insurance. Let’s take a look at each one.

Term life insurance

This is the simplest type of life insurance and is often considered to be insurance at its best. You pay a certain amount of premium against a death benefit amount (coverage) that your family would receive in case you die during the tenure of the term insurance policy. Term insurance is temporary. This means you can purchase a policy for a period of term, say, 5, 10, 15, 20 years or even longer. You pay premiums monthly or annually. Annual payments work out to be cheaper than paying premiums every month. There is no savings element involved. If you should outlive the policy, the money you have paid towards premiums is gone. To avoid this, life insurance companies also offer a type of term insurance called return of premium. At the end of the term period, if you are still alive, all the premiums you have paid will be refunded to you, tax free. There are several types of term life policies, such as level term life. Level term assures that your premiums remain level, or the same, during the entire term period. This avoids any unexpected hikes in premiums during your term period that you had not planned for.

Since term life is temporary it is the cheapest insurance you can purchase. For example, a 40-year old male who is in top health, living in California can get term insurance for as little as $160.00.

To summarize, here are the main features of a term insurance policy:
Term life is temporary life insurance and can be purchased for a specific term period. After the term period is over, you would need to renew the policy if you still feel you need to be insured.
Term insurance is the most affordable.
There is no savings element involved.
Term life can be renewable – look for renewable options that do not require you to prove your insurability after the term period is over.
You can purchase term insurance at a cheap rate right now and convert to a permanent life policy at a later date. You would need to look for a term life policy that offers you this conversion option.

Permanent Life Insurance

Permanent insurance (also called whole life insurance) offers lifelong protection. It is more expensive than term insurance because, along with insurance coverage, there is a savings component attached to it. For the first ten years, your permanent life policy will not accrue much interest. Much of the interest will be used to pay off administrative fees. You cash value will only kick off after that.

Another benefit to owning a permanent life policy is that you can borrow from it anytime you need cash. Interest rates are high, but should you need the money, you are able to take a loan against your whole life policy.

To summarize, here are the main features of a permanent life insurance policy:
Permanent life offers life insurance protection for your entire life provided you pay your premiums.
It is more expensive than term insurance, but offers a cash value component not found in term insurance.
You can take out a loan against a permanent life policy.
The premiums remain the same throughout your life.
Permanent or Term Insurance?

Most experts recommend that you purchase a term life policy and invest the difference (between term and permanent) in a separate investment instrument. This is more likely to fetch you more money on interest than a permanent life policy would. Others also suggest that life insurance is not something you need for a life time. Growing families, in particular, who have limited income, prefer term insurance because it is the most affordable and meets their coverage needs most satisfactorily. If you are looking for cheap life insurance from some of the most financially strong life insurance carriers in the industry, request for free insurance quotes online. Comparing multiple term life insurance quotes online is quick and convenient. Some websites also offer professional guidance to help you make an informed decision.

Term Life Insurance ? A Better Option to Mortgage Life Insurance

A mortgage life insurance is a type of insurance policy that is designed to pay off your mortgage in the event of your untimely death. The insurance company will pay off any outstanding balance left on your mortgage leaving your family debt-free. Typically, in this type of insurance, as your mortgage decreases, so does the amount of insurance.

How Mortgage Insurance Works

When mortgage insurance begins, the coverage must equal the outstanding amount on the repayment mortgage. The policy’s termination date must coincide with the date scheduled for the final payment on the repayment mortgage. The insurance company calculates the annual rate at which the insurance cover should decrease in order to reflect the value of the capital outstanding on the repayment mortgage. Some mortgage policies will include provisions for payouts if the policyholder is diagnosed with a terminal illness from which he or she is expected to die within a year of being diagnosed.

Purchasing mortgage insurance is not such a good idea. In fact, it’s hard to find any mortgage life insurance which offers good value. The main reason why purchasing this type of insurance is a bad idea is because currently, traditional mortgage life insurance rates are not as competitive, as say, most term life rates.

Reasons why mortgage life insurance is not a good idea
Mortgage life insurance policies are generally expensive to begin with. As time goes on, these policies become even more expensive. The premiums stay level throughout the term period but the amount of death benefit becomes less at the same rate as the debt does. The cost for coverage starts out high and the policy gets worse over time in terms of the amount of death benefit.
Mortgage life insurance will only re-pay your mortgage if you should happen to die with the insured period. This may leave your surviving spouse debt-free, but mortgage insurance will not address any other income needs of your family which may arise due to your sudden demise. Most families have financial needs that go beyond payment of mortgage.
Term Insurance Makes More Sense
The death benefits that come from a term life policy can address any kind of debt and other financial needs your family may face.
You can take out term life policies for a term period of 10, 20, 25 or even 30 years. If you have already finished payments on your mortgage, you may want to review your term life policy to reflect those changes. Or, you may want to use the coverage for other future expenses you may have, such as education fees of your children, or a retirement plan for your spouse. With term insurance, you have the freedom to change the objectives of your insurance policy as your life situation changes. Mortgage life insurance does not allow you this type of freedom.
Underwriting for term life policy is cheaper. If you’re in good health, taking a term life policy could work out beneficially for you. For example, if you saved $100 on annual premiums by taking up a term life policy, rather than mortgage life insurance, this will add up to a savings of $3000 at the end of 30 years. It is always best to get an insurance policy with guaranteed lower rates than a mortgage life insurance policy.
More People Choose Term Insurance over Mortgage Life Insurance

It is more common to see people purchasing term insurance with return of premiums options instead of mortgage insurance. At the end of the term, all the premiums you have paid are refunded to you, tax-free.

Another better option to mortgage life insurance is a level term life policy. A level term life policy will give you the benefit of paying level premiums throughout the term period. And unlike mortgage insurance, your death benefits will not decrease during the full term period.

Finding the Best Deal on Term Insurance

You can get the best term insurance at the most affordable price by using online life insurance providers. Many of these not only offer the best term life insurance quote but also free professional services to help you identify policies that suit your needs the best and make meaningful recommendations. Look for online insurance providers who are BBB-accredited and are affiliated with the best life insurance carriers in the industry. They will provide you with instant insurance quotes which you can use to compare prices and products. This will help you make an informed decision and land you with a policy that best suits your needs at the most affordable price.

Life Insurance 101

Life insurance is basically a contract between two parties: the insurance company and the policy owner. After the demise of the policy owner, the life insurance company agrees to pay a lump sum amount based on premiums paid by the policy owner, to a designated beneficiary. The policy owner must pay the insurance company either a lump sum or a stipulated amount at regular intervals in order to keep the policy in effect. In addition to death, a life insurance policy may also cover terminal illness or critical illness and provide the policy owner with what is known as “accelerated” death benefits to cover cost of treatment.

Types of Life Insurance

Life insurance purely for protection: This type of life insurance is designed to provide death benefits against premiums paid for a specified term period which can be anywhere between 1 to 30 years. Because it is temporary insurance offered for a particular “term”, it is called term life insurance. This type of insurance offers high death benefits at the most affordable premiums. It is most suitable for young families on a low-budget or for individuals who want temporary life insurance protection. There is no investment component in term insurance and should you outlive the policy, you forfeit all premiums paid.

Life insurance with an investment component: This type of insurance is permanent. You pay premiums throughout your life. The reason why it is so attractive is because a portion of the premiums you pay goes into an investment portfolio. Your premiums begin to accrue interest. After a certain time, you can use this interest to pay premiums or you can dip into the cash value of your life insurance policy whenever you need to. Examples of life insurance with an investment component are whole life, universal, variable whole life and many others.

Who Needs Life Insurance?

Anyone who has a dependent needs insurance.
Married couples need life insurance to cover shared expenses. If you’re planning a family, it’s better to get life insurance before you get pregnant as insurance premiums increase with health complications.
If you have a growing family to support, you would need life insurance not only to cover your debts, but also to make sure your children have the money they need to go through college and to compensate for income loss through your death.
Single parents need of insurance to ensure that their children will have the financial stability they need even after they are gone.
Stay-at-home parents provide caretaking, housekeeping, transportation and other services which need to be covered under a life insurance policy.
Small business owners need life policy to cover financial losses that would incur if a partner or key employees died.
Singles may need life insurance to cover student loans or to provide for ailing parents.
Estimating life insurance coverage needs

Calculate all your assets against your liabilities. This will give you a fair idea of where you stand financially. Ask yourself how much money your family would need to maintain the same lifestyle they are accustomed to, pay off debts, and build up an asset for future expenses such as college tuitions or a retirement fund. You could make use of an online insurance needs calculator to help you estimate the coverage you would need.

How premiums are calculated

Life insurance companies use mortality tables calculated by actuaries along with a host of other factors to derive the premium amount you need to pay. The process of investigating and evaluating the risk involved in insuring your life is called underwriting. The underwriting process may differ from company to company but a few common factors play a role such as age, gender, lifestyle, whether you are a smoker, pre-existing health conditions, family health profile, alcohol intake, etc. Premium rates are higher as you grow older simply because growing older is attached to a higher mortality rate.

Most companies divide the risk of insuring an applicant into four categories:

Preferred Best: This category of people is considered to be a low mortality risk. Typically, those who fall under this category have no adverse medical history, have no pre-existing health conditions, and there is no family history of cancer, diabetes or other common genetic diseases.

Preferred: This category of people is considered to be a slightly higher risk to insure. They may have a family history of illness, but lead healthy lifestyles.

Standard: This is the category which most people fall under. Typically, they may be under medication for an ailment; have a family medical history of illness; or may lead an unhealthy lifestyle and therefore prone to ill health.

Tobacco: If you smoke, you automatically fall under this category.

Conclusion

Because the life insurance industry is so competitive, underwriting criteria may vary. Some companies may have a competitive edge over other companies by favoring certain types of health conditions. For instance, some insurers may look into the details of your smoking, differentiating those who smoke a cigar occasionally from those who smoke a pack of cigarettes every day. In order to find such companies, however, you would need to shop around.

Make use of online life insurance quote providers certified by the Better Business Bureau. Having access to hundreds of reputable insurance carriers, they can run your personal details through their database and instantly send you the best insurance quotes for comparison. And because these are paperless transactions and you are able to shop around for competitive rates, you may be able to save on life insurance expenses by up to 70 percent!

Reasons to Convert Term Life Insurance to Permanent Life Insurance

Term life insurance may make sense now, when funds are low and insurance needs are high. But this may not be the case a few years down the road. That’s why when you purchase term insurance you should make sure there is a convertibility option within your contract. A convertibility option allows you to convert your term life policy into a whole life policy within a stipulated time frame, without having to prove insurability. When your financial position becomes more stable, you may want to opt for whole life insurance that adds a savings component to your policy. Your premiums accrue interest while providing your family with life insurance coverage.

Advantage of Whole Insurance

The first question that comes to mind when considering conversion from a term insurance policy to whole life is: Why would I trade in my inexpensive term life insurance policy for a more expensive whole life policy? You’re not! Whole life has several advantages over term life and there are good reasons why you should consider converting your term life insurance policy to whole or permanent life insurance:
Whole life has a savings component. A portion of the premiums you pay accrues interest which adds to the face value of your coverage.
As you age, life insurance companies consider you to be at higher risk of death. Therefore, premiums go up. If you suffer from any health issues, your premium rates will go up even further. If your term insurance ends when you are say, 50 years of age, and you still feel the need for life insurance (most people do, at least to cover funeral expenses, etc), life insurance at this age may become an expensive proposition.
With whole life insurance, premiums remain steady throughout life. Since you do not have to worry about your policy terminating after a certain term period, you need not worry about worsening health conditions or increasing age affecting your premium rates.
If you’re hard up on cash, you can borrow money from your whole life policy up to a certain amount, without any questions asked.
Whole life insurance offers lifetime coverage. You must pay premiums up to the age of 100, but when your whole life policy reaches a certain maturity level you can use the interest accrued to pay premiums. If you are still alive after the age of 100, you need not pay premiums but your coverage is still in effect.
The interest accrued along with the face value of the insurance policy is tax-deferred.
Term Life Insurance – Advantages of a Convertibility Option

By using your convertibility option you will be able to convert your term insurance policy to whole life without have to prove insurability. This means you do not need to go through a medical examination. However, your premiums may go up based on your age at the time of conversion or, in some cases, premiums may be calculated on the age you were when you originally purchased the policy.

You have the option to convert all or a portion of your coverage to a whole life policy. For instance if you purchased a $250,000 term insurance policy, you could convert $100,00 to a whole life policy and keep your term insurance coverage at $150,000.

Most term life insurance policies with a convertibility option stipulate a time period within which a term life insurance policy can be converted to whole life. It may be a specified time period after the policy has been issued, or before the policy owner turns a certain age. Before you decide to convert your term insurance to whole life, you should take financial stock of your life and assess your probable financial position in years to come. Ask yourself questions such as: Do you expect your insurance needs to diminish as time elapses? Do you expect to pay off all your debts before you reach retirement age? Based on your family health history, do you expect any changes in your health as you age? Will you be able to leave enough money behind to pay off your funeral expenses and estate taxes, if any? Many people like to use a life insurance policy to leave wealth behind to their children or grandchildren. Consider your needs and how converting from term insurance to whole life would benefit you and your family.

What if your term life insurance does not have a convertibility option?

If your term insurance policy does not have a convertibility option, switch to one which does. You’ll find the best rates for term insurance online. Ask for free quotes on reliable site certified by the Better Business Bureau. This will give you opportunity to evaluate prices, look for free riders, and compare company ratings. Since such sites have a huge database of reputed life insurance carriers offering competitive rates, chances are you’ll find a term insurance with a convertibility option that is cheaper than your existing policy!