Guide to Life Insurance
Here is a useful guide to life insurance. Simply put, a life insurance policy provides a lump sum payment upon death of the policy holder.
In exchange for regular premiums, a life insurance company will insure your life so that when you die, the policy should pay out to protect your dependants from the extra pain of financial hardship.
This is particularly important when buying a house, or when you or your family takes on a large, long-term financial commitment. In the event of death, for example, the payment from a life insurance policy can be used to pay off a mortgage.
Policies can be arranged on either a single or joint life basis. Depending on the type of policy you choose, your insurer will pay either a lump sum or a regular income which you could use towards meeting any outstanding debts and trying to ensure your family is able to maintain its standard of living.
How much they receive depends upon the 'guaranteed sum assured', the amount for which your life is insured.
Many people first come across life insurance when they take out a mortgage, as lenders often insist on it to make sure the loan is repaid if you should die still owing them money.
However in some circumstances, only having enough life insurance to repay the mortgage is insufficient to fully protect dependants. If you have a partner who would suffer financially if you were to die or if you have young children who depend on you, then life insurance is very important.
Life insurance can be used in many ways, not just to protect a young family or repay a mortgage. It can be used to pay Inheritance Tax or protect business against the loss of a key individual.
You can increase or decrease your cover at any time, add another life onto the policy and add other elements to the plan such as critical illness cover, income protection or mortgage protection.
If your circumstances change you can increase your cover to make sure your family is protected.
Life insurance creates an estate for your heirs. After your debts and expenses are paid, there may not be much left over for your family but life insurance can automatically provide assets for them after your death.
There are several kinds of policies that may be available to you, if you are healthy enough.
Smoking is detrimental to health and is a leading cause of life threatening illnesses. As a result smokers pay higher premiums than non-smokers as the risk of them dying early is greater. I f you smoke and do not declare the fact, you run the risk of invalidating your policy if you have to make a claim.
It is a known fact that women tend to live longer than men. A female who insures herself using a 'level-term' policy is likely to have lower premiums than a male. This is based on the fact that females live longer and are less likely to claim during the period insured.
Age is a factor in the successful application for a life policy. Most insurers have an age bracket of seventy-five for the provision of insurance. If you are over the age of seventy-five it is unlikely you will be able to find cover.
Finally, the older you are the greater the risk to the insurance provider so the higher your premium will be.
You may freely reprint this article provided the author's biography remains intact:
About The Author
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.
Latest News
Deal-Seeking Travelers Should Not Overlook Need for Travel Insurance MarketWatch - Although travelers are seeking deals and jumping on last-minute travel offers, Travel Guard reminds consumers that travel insurance remains essential no ... From Homeowner to Renter: What You Need to Know About Renter's ... |
![]() WWL | 21st Century Holding Company's Subsidiary Federated National ... MarketWatch - an insurance holding company, today announced that it received approval from the Florida Office of Insurance Regulation (OIR) to take out (assume) up to ... La. grand jury indicts former head of state-run insurance concern Ex-CEO of Citizens Property Insurance indicted Former chief of Citizens Insurance indicted |
Insurers propose universal, centralized healthcare Los Angeles Times, CA - Several consumer groups criticize the early bid by America's Health Insurance Plans, a trade group that fought an overhaul in the 1990s, to take an active ... Medicine for the Job Market Health Insurance Trade Group Proposal Praised By Sen Kennedy Nurses Reject AHIP Proposal as a 'Marshall Plan for Health Insurers' |
Electric Insurance Appoints Sweet & Sons, Inc. MarketWatch - "When looking for a new relationship with an agency, Electric Insurance seeks agencies that have track records of delighting customers," said Michael J. ... |
White & Case Recruits Top Bank, Insurance Regulatory Lawyer MarketWatch - NEW YORK, Dec 04, 2008 /PRNewswire via COMTEX/ -- Global law firm White & Case LLP is expanding its firmwide Bank and Insurance Regulatory Practice with the ... |
American Family Insurance Selected as Recipient of 2008 E-Fusion Award MarketWatch - OLDWICK, NJ, Dec 04, 2008 (BUSINESS WIRE) -- American Family Insurance's Teen Safe Driver Program, which uses a mobile video and online notification system ... |
AARP’s Stealth Fees Often Sting Seniors With Costlier Insurance Bloomberg - He signed up for an auto insurance policy endorsed by AARP, believing the advertising that said he would save money. He didn’t. ... Health Insurance, Business Lobbyists Join Discussions About ... |
CSC Announces Social Networking Community for Property and ... MarketWatch - today announced the latest innovation in the evolution of its property and casualty (P&C) insurance client community: the introduction of WikonnecT, ... |
![]() BBC News | Bernanke says home price insurance would be costly Reuters - WASHINGTON, Dec 4 (Reuters) - An idea floated by some economists to encourage home buyers to purchase home price insurance would be costly in the current ... Bernanke calls for measures to stem foreclosures US Fed demands foreclosures push Bernanke Says US Must Step Up Foreclosure Efforts (Update1) |
IBC Insurance buys up InsCorp Bizjournals.com, NC - The purchase of the company expands IBC Insurance’s presence in Laredo and increases the growth that it is seeing in all markets and business segments. ... |
Resources
-
The Secret Information Site
"
-
Pet Insurance
Discover the secrets that pet Insurance companies don't want you to know.
-
Safety Employment Safety Jobs
Jobs in occupational safety, Insurance loss control, health/environmental, etc.
-
Free Prescription Medicine at Medicine For Free - Home
Free Prescription Medicine is Available to those who qualify. Millions of Americans daily choose between buying food or medicine. This choice is often a life or death matter faced by those with no Insurance to cover medicine or governmental prescription a
-
Welcome to PMI Savings :: Save On or Get Rid of Hidden Mortgage Insurance
How to Cancel Pmi with Official Form.
-
Real French Life ebook
Real French Life eBook guide to schooling, Insurance, day to day life and more in France.
-
Sales Lead Generation. Health Insurance, Real Estate, Life Insurance, Mortgage Leads and MLM Leads
Sales Lead Generation for Pennies. Learn How We Generate Business Sales Leads using our Affordable,Proven Sales Lead Generation System.
-
Annuity Online Quote Annuities Fixed Variable Immediate Equity Indexed Annuity Retirement Planning I
Annuity annuities online quote comparison variable fixed annuity indexed retirement planning tax deferred immediate annuity investment retirement annuity planning Fixed Annuity Life Insurance Company Annuity Rate Comparison Variable Life Annuities Definit
-
Insurance Leads Generation
Insurance Leads Generation
-
Used Cars For Sale By Owner, Used Car Dealers, Sell Your Used Car Free, Auto Insurance, Financing -
Used cars for sale by private owners, sellers, sell used cars free, dealerships, used car finder service, used cars quotes, used car financing, and more.

