Life Insurance
One of the most important things you can do as parents is to ensure the financial welfare of your children in the event of your death. Life insurance is the best way to be rest assured that your children will be taken care of if you die. Although we never like to think of that kind of thing happening, but it does.
What is Life Insurance
Life insurance is a policy that you can enter with your insurance company, which promises a certain amount to your beneficiary(ies) in the event of your death. Usually, a spouse will name the other spouse as well as their children as beneficiaries of the policy. As part of the agreement with life insurance, your insurance policy will be a monetary value, that you will in return, pay a monthly premium for. Premiums usually depend on your age, gender, occupation, medical history and other factors.
There are other types of life insurance that may provide benefits for you and for your family while you are still living. These policies can accrue a cash value on a tax-deferred basis and can be used for future needs such as retirement or your childs education.
Do I Need Life Insurance
Earning an income allows you and your family to do many things. It pays for your mortgage, buys cars, food, clothing, vacations and many other luxuries that you and your family enjoy. However, certain situations can cause you to lose your income, and those who depend on you also depend on your income. If any of the following statements about you and your family are true, then it is probably a good idea for you to consider life insurance.
- You are married and have a spouse.
- You have children who are dependent on you.
- You have a parent or relative who is aging, or disable and depends on you.
- You have a loved one in your life that you wish to provide for.
- Your 401K retirement plan, pension and savings arent enough to insure your loved ones future.
What Are My Life Insurance Options
There are four basic types of life insurance that can meet you and your familys needs:
Term Life Insurance
This is the least expensive type of life insurance coverage, and at least at the beginning, the simplest. Term life insurance policies do not accrue cash value, and are fixed over an extended period of time - usually one to 0 years, and they can be renewed. This life insurance policy pays the beneficiary of your policy a fixed amount in the even that you die in the period of time that your policy includes. The premiums of term life insurance are lowest when you are young and increase as you get older
Whole Life Insurance
This type of life insurance is similar to term life insurance, as well as provides cash value. Over time, whole life insurance generally builds up a cash value on a tax-deferred basis, and some even pay its policy holders a dividend. This type of life insurance is popular, doe to the cash value that is accessible to you or your beneficiaries before you die. Used to supplement retirement funds, or to pay for your childs education, whole life insurance should be used for protection, rather than for accumulation.
Universal Life Insurance
This type of life insurance is a flexible kind of plan. These policies accrue interest and allow the owner to adjust the death benefits and premiums to their current life situation. You decide the amount of premium for universal life insurance, and of you skip a payment, this will be deducted from your death benefit. Universal life insurance stays in effect as long as your cash value can cover the costs of the policy. These rates are subject to change, but they can never fall below the minimum rate that is guaranteed when you sign up for universal life insurance.
Variable Life Insurance
This type of life insurance is designed for people who want to tie the performance of their life insurance policy to that of the financial market. The policy holder gets to decide how the money should be invested, and your cash value has the opportunity to grow more rapidly. However, if the market is poor, your life insurance policys death benefit will be poor. As with whole life insurance and universal life insurance, you may withdraw against the cash value. Be reminded that withdrawals of this life insurance policy will be deducted from the cash value.
How Can I Save Money With Life Insurance
Below you will find some suggestions on ways to save money while purchasing the life insurance policy that is right for you.
- If you dont need life insurance, dont buy it. Dont buy more insurance that you actually need in order to provide financial security for your family.
- Shop around for competitively-priced life insurance policies while you are healthy. Dont smoke, or do anything that might increase your rates. Take care of yourself by exercising regularly and maintaining a moderate and healthy weight.
- If you purchase a term life insurance policy, look for guaranteed and renewable policies. That way you wont have to periodically continue to shop around for those life insurance policies.
- You should only buy optional forms of coverage such as riders only if necessary.
- Shop around and compare life insurance policy rates and coverage. There are thousands of life insurance companies to choose from. It is advised that you get at least three separate quotations of life insurance, and then decide which is the best for you.
Brian M. Gardner is the Founder of Financial-Articles.com - An Online Money Making Resource. Learn how to make money and acquire wealth by investing in stocks and mutual funds, as well as how to be successful in sales, marketing and advertising.
Health Insurance
A good health insurance plan is one of the most important things you need to have for yourself and for your family. But what should a good health insurance plan consist of?
It can be a bit of a challenge today to find the right insurance plan for yourself and your family because of the diverse options available. However, when you are choosing a good health insurance plan, dont simply base your decision on the cost of the monthly premium.
Know the details of the health insurance plan - what it covers and what it doesnt cover. Also find out the health insurance plans in-network as opposed to out-of-network coverage and expenses. What are its co-payment amounts, deductible amount per family member if applicable, and the coverage caps?
Understand what your needs and your familys needs are when you are deciding on what health insurance to get. Should the health insurance plan cover just you or should it cover you and your spouse? Should it cover you and one child or do you need a health insurance plan that will cover your entire family?
The next step is to find out the health needs of everyone whom you want to include in your health insurance plan. This step can be quite complicated. Are you and the others in good health overall? Does anyone have any pre-existing conditions? Would you at any time feel the need to approach certain medical specialists or institutions? Once you answer these questions, you will be ready to start choosing a good health insurance plan.
You will need to gather all possible health insurance options available for you and your needs. If your employer is offering group insurance, your options may be limited. If you are self-employed, you will have to choose from the different private health insurance plans. Whatever your case is, you need to understand the difference between the two basic types of health insurance plans offered today: the Indemnity Plan and the Managed Care Plan.
With an Indemnity Plan, you are free to choose when and where you want to get medical assistance. This type of health insurance plan has a higher out-of-pocket cost, but for many people, the added price is fair when they consider the freedom they are getting.
With a Managed Care Plan, you are required to only use the services of medical professionals and institutions that are part of the plans "network". In general, you would need pre-approval for medical services beyond basic preventive care. In terms of costs, the costs of Managed Care Plan are lower.
A Managed Care Plan is a good choice if you (or your dependents) dont have major health problems, are not concerned about who provides you medical services, or have to keep tabs on your medical costs.
Of course, this was just a very basic overview of the two types of health insurance plans. You can research these two plans and study them more deeply.
After deciding if you want a Managed Care Plan or Indemnity Plan, the next step you need to take is choosing the right health insurance company to provide you the health coverage you need. There are many health insurance companies today - from the famous corporate giants to the small, single-owned business.
You need to thoroughly research these companies before you make a decision. You can use the Internet to research companies, ask others for recommendations, and read literature so you can understand each insurance companys claims filing procedures. Armed with the necessary information, youll be able to choose the right health insurance company for you and your family.
General Insurance
Choosing the right general insurance policy where you will invest your money on can be very tiring and stressful with all the amazing options that are available in the market. Fortunately, there is one thing that you may do in order to make your search easier and more productive.
To eliminate your need to look through every single policy that is available to you, you may simply start your search by finding the best general insurance company in your area. Without a doubt, the best insurance companies offer the best policies that will allow you extensive coverage for just the right price. Now the question arises, how can you find the best insurance companies that you may trust and work with? Read on and find out.
The better way to kick start your search for the best general insurance company is by getting the opinion of the people whom you trust. If you know anybody who has already invested on a comprehensive insurance policy and if you know for a fact that he is not experiencing any problem with his insurance provider then it will be a good idea for you to look through the offers that your friends insurance company has. There is no doubt that by this, you will be able to find a general insurance policy that will fit your needs and your budget. Even more importantly, you can expect high quality service from the company since it is highly recommended by someone whose opinion you value.
If you are having a hard time in getting the opinion of your family and friends, you may turn to people who can give you the information that you need to gauge the reputation of the general insurance companies that you are choosing from. For example, you may go online and join online groups and forums that hold discussions about the best and the most comprehensive general insurance policies in your area
You may also use the Internet to check out the professional websites of the companies that you are choosing from, so as to get an idea of the variety of their offers. There are different resources that you may use in order to gauge which companies have the best reputation and which ones will give you the best insurance coverage.
Finally, try to get general insurance quotations from the companies that you are considering. If you have specific needs and terms in mind, find out how much you will have to shell out for them to be included in your policy. Generally, policies that offer better coverage and terms also have higher monthly premiums, but there may be some discounts that you may avail in order to minimize your payments.
Do a thorough comparison of the policies offered by the most reputable general insurance companies in your area and pick out the one that will fit your needs and your budget best. As long as you do so, you should be able to find a good and trustworthy company that will give you your moneys worth.
What are the Benefits of General Insurance?
The aim of any insurance policy is twofold: reimburse you financially for any loss, and to give you peace of mind in case of a loss. For instance, the cost of any medical treatment can be prohibitively high. If you have a medical insurance policy, the company providing you with the policy has a liability to reimburse you partially for the cost of the treatment. This can often be more than 80% of the entire cost - a huge saving.
In some instances, insurance is mandatory. For example, you cant drive a car in the US without owning an auto insurance policy.
What are the Common Types of General Insurance?
The most common type would be auto insurance, especially in the United States, where, as mentioned above, it is a necessity
Health insurance is also very common across much of the developed world. In the United States, there is a big debate about extending it to all sections of the society - a practice that is prevalent throughout the Western world. This kind of insurance is especially beneficial as the cost of healthcare in developed countries is usually very high.
Home insurance is also very common and most homeowners have some sort of policy to cover their house in case of any damage. When you consider that the average cost of a house can run into several hundred thousand dollars, it becomes somewhat necessary to protect it against any kind of loss. Home insurance provides the perfect antidote, giving home owners peace of mind, as well as financial reimbursement in case of any damage covered under the policy.