Insurance For Life

Mortgage Life Insurance

2006-10-16T20:06:00.000-07:00

Mortgage Life Insurance
By: Ivon T. Hughes

Owning a home is a dream for most of us, although it is an expensive one. The monthly payments usually take up a big slice of our monthly income, and the sudden loss in the event of you or your spouse's early death may leave your survivors unable to make payments. To make your family is protected from financial hardship, consider Pick-a-Term Mortgage Protection insurance.

Pick-a-Term Mortgage Protection has a descreasing death benefit to match your mortgage balance at the beginning of each year. And because the death benefit decreases along with your mortgage balance, the cost of Pick-a-Term is less expensive when compared to non decreasing term life insurance.

Life Insurance: Decreasing Or Not?

If you go to your local bank, along with the mortgage they will try and sell you what they call "mortgage insurance". This is not "mortgage insurance" but "life insurance" where they protect themselves by having you buy their policy. You need to be clear how this operates; you are paying for an expensive policy which they own and in which they are the beneficary. Further, the amount of the policy decreases though the premium remains the same. If they decreased the premium along the coverage, it may not be too bad, but they don't. The way it is now the policy decreases, you pay for it, they own it, control it and will benefit from it.

So if you want to control your own financial life, get your own life insurance policy. Then you can control the level of coverage that suits you.

About the Author:

Ivon T. Hughes, The Hughes Trustco Group Ltd. Online Insurance Broker - Get a FREE Quote TODAY! Tel: (514) 842-9001 Email: info@trustco.ca Web: http://www.hughestrustco.com

Read more articles by: Ivon T. Hughes

Article Source: www.iSnare.com

Types Of Life Insurance

2006-10-16T20:05:00.000-07:00

Types Of Life Insurance
By: John Mussi

There are different types of life insurance policies available. Shop around and compare policies to ensure that you receive the best deal possible. This sounds obvious, however, there are dozens of different types of life cover plans available and it is important that you select the right one for your circumstances.

Life Insurance is insurance that provides protection against the economic loss caused by the death of the person insured. There are several types of Life Insurance, each having different characteristics. Some of the key types of Life Insurance are: Term Life, Whole Life, Burial Insurance, Survivorship Life, Universal Life, and Variable Life Insurance.

Outlined below is a useful description of each type:

Term Life Insurance

Term Life Insurance is the lowest cost and simplest product available. Term insurance is a life insurance contract that provides protection for a limited number of years. The death benefit is only payable if death occurs during the agreed-upon term. There are various types of Term Insurance Life Policies:

Level Term Life Insurance

means that your premiums are set at a level at the beginning of the contract and do not move up or down. The sum assured will remain the same throughout the term.

Increasing term insurance

This is a fixed term policy where the sum assured will increase, either by a set percentage or by the Retail price index (RPI) throughout the policy term. Your premiums remain level throughout the term if the sum assured rises by a set percentage, or will rise according to the RPI if the sum assured does the same.

Renewable term insurance

This is policy lasting for a smaller period, usually five years, which can be renewed, although the sum assured cannot be increased, whilst the premiums will increase with age.

Renewable increasable term insurance

is the same as above but provides for an increasing sum assured.

Convertible term insurance

provides the option to convert parts of the sum assured to whole of life, endowment or further term assurance without further medical evidence.

Decreasing term insurance

is where the sum assured decreases over time; hence, the premiums are set lower. This is commonly used to cover a mortgage.

Whole Life Insurance

Life insurance that remains in force during the insured's entire lifetime, provided premiums are paid as specified in the policy. Whole life insurance also builds a savings element (called the cash value) as a result of the level premium approach to funding the death benefit.

Burial Insurance

Burial Insurance, or Final Expense Life Insurance, is essentially a whole life product with small face values. The application process is simple and does not have the associated medical requirements of other policy types. This type of life insurance is also referred to as a simplified issue or guaranteed issue policy.

Survivorship Life Insurance

A type of whole life insurance which insures two people and pays benefits only after the second person dies. It is generally designed to provide funds to pay estate taxes.

Universal Life Insurance

An unbundled whole life insurance product in which the mortality, investment, and expense factors used to calculate premium rates and cash values are expressed separately in the policy. In a universal life insurance policy, any applicable expense charges are deducted from the premium and the remainder of the premium is then credited to the policy's cash value. Each month the insurer deducts the mortality costs from the cash value and credits the remainder of the cash value with interest.

Variable Life Insurance

A form of whole life insurance under which the death benefit and the cash value of the policy fluctuate according to the investment performance of a separate account fund. Most variable life insurance policies guarantee that the death benefit will not fall below a specified minimum. A minimum cash value is seldom guaranteed.

About the Author:

John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the www.directonlineloans.co.uk website.

Read more articles by: John Mussi

Article Source: www.iSnare.com

Guide To Life Insurance Terms

2006-10-16T20:04:00.001-07:00

Guide To Life Insurance Terms
By: John Mussi

Listed below is a useful guide to life insurance terms. It is a list of definitions of life insurance terms that may or may not be familiar to you.

Accelerated Benefit Provision
A provision in many new policies which will allow the policy owner to receive a portion of the death benefit early if the insured person is diagnosed with a terminal illness or permanently confined to a nursing home.

Accidental Death Benefit
A provision added to a policy that provides an additional benefit if the insured dies from accidental causes.

Certificate
A document provided to a person insured under a group insurance policy that provides evidence that the coverage exists.

Convertible Term Insurance
These policies allow conversion, without further medical evidence, to a different type of policy from an insurance company's range.

Decreasing Term Insurance
The sum assured decreases each year throughout the term of the policy.

Dependent protection
Where the protection is required on a permanent basis rather than just for a specified term.

Evidence of Insurability

Medical and other information about a person applying for insurance that the life insurance company keeps confidential, but uses to decide whether the policy can be issued and what premiums will be charged.

Face Amount
The amount to be paid to the beneficiary when the insured dies.

Free Look
The right of the policy holder to have a period of ten or more days to examine an insurance policy, and if not satisfied, return it to the company for a full refund of all amounts paid.

Grace Period
A period of time after the premium due date when an overdue premium may be paid without penalty. The policy remains in force throughout the period.

Guaranteed Insurability
An option that permits the policyholder to buy additional stated amounts of life insurance at certain times in the future, without having to provide new evidence of insurability.

Illustration
A document used in life insurance sales presentations showing year-by-year numbers indicating how a policy will work.

Increasing Term Insurance
Under this option, the benefit payable on death increases and is particularly useful to avoid the sum assured being eroded by inflation.

Insured
The person whose life is covered by a life insurance policy.

Lapse
The discontinuation of insurance without cash value when the required premium is not paid.

Level Term Life Insurance
In this form a policy will pay out a fixed sum on death during the term.

Loan Value
The amount which can be borrowed by the policy holder from the company using the value of the policy as collateral.

Mode of Premium Payment
The frequency of premium payments during the policy year. Premium payments can usually be made on annual, quarterly, or monthly basis.

Mortality Table
A statistical table showing the death rate for each age.

Nonforfeiture Options
A provision in the policy that allows the policy holder to choose how the cash value of the policy will be used if the policy is surrendered or lapses due to non-payment of premium.

Ownership
All rights, benefits, and privileges under a policy controlled by the insured.

Paid-Up Insurance
A life insurance policy where all premiums have already been paid, with no further premium payment due.

Policy
The printed document issued to the policy holder by the company stating the terms of the insurance contract.

Policy Year
A one-year period starting on the day and the month the policy was issued. The first policy year starts on the date of issue, and ends on the day before the policy's first anniversary date.

Premium
The payment a policy holder is required to make to an insurance company to purchase insurance coverage and to keep the policy in force.

Rated Policy
A policy issued with an additional premium to cover the extra risk involved if an insured has impaired health, a hazardous occupation or hobby.

Reinstatement
The restoring of a lapsed or surrendered policy to full force and effect.

Renewable Increasable Convertible Term Insurance
This contract combines the options of increasing the sum assured, converting the policy and renewing the contract.

Reviewable Term
Level term assurance with an option to renew the contract at the end of the term, without the need for further medical evidence.

Rider
A provision added to a policy that provides additional benefits.

Settlement Option
The manner in which the insured or beneficiary may choose to have the policy proceeds paid.

Suicide Clause
A policy provision which reduces or eliminates the amount to be paid if the insured dies from suicide.

Surrender
To voluntarily terminate or cancel a policy for its cash value.

Term Life Insurance
This type of policy runs for a specified time period.

Underwriting
The process of evaluating applicants for insurance and classifying them fairly, so the appropriate premium rate may be charged

Waiver of Premium
A provision added to a policy that will waive the premium payments required by an insured during the total disability of the insured.

About the Author:

John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the www.directonlineloans.co.uk website.

Read more articles by: John Mussi

Article Source: www.iSnare.com

What Is Life Insurance?

2006-10-16T20:03:00.001-07:00

What Is Life Insurance?
By: John Mussi

Life Insurance is an insurance policy that provides an agreed amount of cover over an agreed term, so that should you die during the policy term, a lump sum is paid out. Life insurance is considered as the cornerstone of financial planning. It is a cost effective way to provide for your family after you are gone.

Many of us will at some stage in our lives have the need for life insurance. Life insurance is an agreement between you and an insurer and under the terms of a life insurance contract, the insurer promises to pay a certain sum to a designated beneficiary when you die, in exchange for your premium payments. This may give you peace of mind that, should you die during the policy term, your family would have some financial security.

The most common reason for buying life insurance is to replace the income lost when you die. For example, say that you work, and that your income is used to support yourself and your family. When you die and your income stops the life insurance proceeds can be used to continue to support the family members you've left behind.

If you have dependants or your income is needed to maintain your family's standard of living you may need life insurance. If you died your family could use the money to pay off some outstanding bills or perhaps towards a mortgage. There may also be extra costs to deal with that were not there before; such as the cost of extra childcare. To decide if you need life insurance you will need to consider whether your family could cope financially without you and for how long.

Some people choose to take out a joint policy with their partner. This means the policy covers both people and is paid out when either person dies (but not both).

There are several kinds of policies that may be available to you, if you are healthy enough:

Term

Term Insurance is the basic life insurance. It provides financial protection bound by a specific time, usually between one to thirty years. They are comparatively inexpensive and are well suited for specific purposes, like insurance protection for paying off a mortgage or paying the tuition fee for college education. Purchasing term insurance is like renting a car, a short-term solution. Monthly costs are lower, but you will not be building any equity.

Permanent

Permanent insurance provides long-term financial protection. These policies include both a death benefit and, in some cases, cash savings. Purchasing permanent insurance is like buying a car instead of renting. You are taking care of long-term needs with a long-term solution. Your monthly costs may be higher than if you rent, but your payments will build equity over time.

The cost of life insurance varies depending on such factors as the insured's age, health, and occupation.

About the Author:

John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the www.directonlineloans.co.uk website.

Read more articles by: John Mussi

Article Source: www.iSnare.com

Insurance For Life in USA

2006-10-16T19:56:00.000-07:00

Good Life by Good Insurance