What is a Universal Life Insurance Policy?
Just what is a universal life insurance policy? It is a class of permanent insurance that is based on a cash value. When you purchase a universal policy, it’s almost like making an investment. But is it right for you? Read and find out!
Investing 101
When you invest in anything, you pay into it, usually at a fixed percentage. Why fixed? Because it is the easiest way to establish your prospective out come over the course of your investment period. However, every so often you might change it up, and put a bit more, or a bit less. These additions and subtractions produce a different out come at the end of your investment period.
This above example is a lot like how universal life insurance operates; you pay a fixed amount with your premiums, like in any other policy. However, in a universal policy, if you decide to over pay, this will actually increase the cash value of your policy, which increases your benefit payout in the long run.
Now, on the flip side of things. If for some reason you miss out on a payment, or underpay, It’s automatically taken off any over payments that may have been made. It’s almost as if you created a buffer zone for your payments. Who knows, you might struggle one month, and it’s a good way to make ends meet, while still keeping your policy intact.
Sounds pretty good doesn’t it?
What a Universal Insurance Policy Is
Basically, it is just a different technique of investing, and creating a bigger portfolio of investments. It’s just that this one doesn’t pay until you’re dead.
It is definitely not your run-of-the-mill insurance policy, to be sure, but it does have its benefits, where you can augment your policy size, and give a better investment payout in the end.
That is the main benefit for having universal insurance, the fact that you can increase the eventual payout as much as you want. It’s an easy way of increasing your insurance without any fuss.
Don’t forget that the cash value additionally gets interest for the entire length of the policy. This gives you an even greater return on investment when it is finally cashed in.
Assess: Is a Universal Policy Right for You?
A universal life policy has a lot going for it, but is it the best for you? It just might be, if you thought you would take advantage of the over-payment clause.
If not, then perhaps you should stay with a standard term or whole life policy instead, as either one could be more of a benefit for you.
Why bother buying a policy with special options like that if you aren’t going to use them? Instead, use that investment to buy the life insurance that meets your needs.
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Don’t get confused — get answers! If the universal plan isn’t for you, here’s FREE whole life insurance information.
Read More...What Does It Mean To Buy Term, Invest The Difference
You have probably heard of the saying “Buy term, invest the difference” when getting insurance and putting your money in investments. But do we really comprehend what it actually means? What could be the reason why majority of financial planners strongly recommend that you should “buy term and invest the difference” ? On the other hand why is your insurance agent forcing you to buy his or her recommended product?
Most financial planners would tell us to stay away from whole life insurance products as they are considered rip offs. These kinds of products are not so popular anymore in the United States. In order to fully understand “whole life” versus “term” they are differentiated as follows: Term insurance refers to life coverage only while “whole life” refers to term policy with an investment scheme. Insurance agents usually present whole life insurance as something that will help you save for your retirement. Forcing you to save is probably something that is good for you, however the bad thing about this is that the returns for the investment in whole life insurance is very low. It is a pity that these type of products are still sold in the Philippines. Sadly, people still buy them because of inadequacy of financial knowledge.
In order to fully understand this, let me give you an illustration. My mother asked me if she should continue paying an insurance product that she bought for my sister. The insurance product was worth about P 400,000.00 (Philippine Peso) She already paid half of it so the balance left is P 200,000.00.
According to her, the benefits of the insurance product are as follows; After 20 years, my sister who is still 18 years old will receive P 40,000.00 per annum until she reaches 65 years of age; At the age of 65 she can either choose to receive P400,000.00 lump sum or continue receiving P 40,000.00 until she dies, plus she is also insured for two million pesos for as long as she lives.
To evaluate whether or not she should continue paying the P200,000.00 we will evaluate the benefits of the insurance product versus the “Buy term, invest the difference” option.
The total money that my sister will be receiving under the insurance scheme is around P3,520,000.00. This is derived from the P 40,000.00 she will receive per month until she reaches 65. Add to this the P 400,000.00 she will receive lump sum during that age. We should also take into consideration that she is insured for P2,000,000.00 hence giving us total benefits of around P 3,520,000.00
On the other hand, if we follow the buy term invest the difference scheme, if her insurance company will allow her, she will convert what she has already paid into “term insurance” which usually runs for only 20 years and then invest the P 200,000.00. If she will invest the P 200,000.00 at a vehicle of investment that gives about 10 % return per annum and also re-invest the returns of the investment taking full advantage of compounded interest at age 65 she will get a whooping P 17,639,497.05.
Now do you see the difference? What is P 1,500,000.00 vs. P 17,000,000.00+. Even if you add the insurance coverage that is only a mere P 3,500,000.00, it still cannot compare to the P 17,000,000.00.
But what if her investments will incur losses ? That is no problem at all. She can just buy term insurance and renew it every time it expires anyway, term insurance is very cheap and affordable.
The next thing you could probably ask, what investment vehicle would give me 10 % return per annum? Well there is and there are lots of them. You can put it in mutual funds. It does not guarantee a rate of return but historically most mutual fund companies give you more than 10 % return per annum especially if they are invested in equities. Now that the stock market is very bullish returns ranges from 40 % to more than 70 % per annum. You can even directly invest in the stock market. Even the most conservative investors in the stock market earn more than 10 % per annum.
Buy term invest the difference? It certainly does make sense!!!
Want to know more about investment strategies ? Visit the blog of Zigfred Diaz where he writes about several interesting topics such as investments, money management, business, making money online and Stock market investing
Read More...What Factors Determine Life Insurance Rates
Term life insurance policies provide a limited coverage period, which is determined by the policy owner. Term life insurance rates are actually the cheapest form of life insurance, but there are different rates for different people. This is because once the term of the policy is up you don’t receive any payout from the policy. If you take out life insurance at a young age, you will get a much better rate than if you wait until you are older.
The total cost of your term life insurance can be tricky. Some policies appear to cost more, but may, in fact, be cheaper when you look at the total cost of the policy. For example, annual renewable policies increase your premiums every year and thus may appear to be more expensive than level term policies where the premiums never increase (although the initial premiums for a level term policy will be higher). But, in fact, level premium policies may involve higher costs over the policy’s full term, and become particularly expensive when you try to renew your policy at the end of the term. This is why you do have to carefully compare term life insurance quotes.
Some of the factors that influence your term life insurance rates are:
Whether or not you smoke. Tobacco users are twice as likely to die as non tobacco users while they are insured. Life insurance companies take this into account when they set their premium and cash benefits levels. You can save from 20% to 30% on premiums by quitting smoking.
Medical Record. If you have a terminal illness, it is unlikely that any life insurance company will issue a policy. In the case of heart disease, you will get a policy but your rates will be high
Occupation. if you work in a dangerous occupation, such as working on a ship that carries gas, this will put you into a higher bracket when it comes to getting rates for term insurance. You will have to shop around to compare term life insurance quotes if you are in this category.
Term life insurance rates vary a lot, and you can do something about your premiums by taking some decisions to become more healthy, like giving up smoking.
Term life insurance in South Carolina provide quotes, which are updated and online daily
Read More...Time-Saving And Creative Life Insurance Buying Tips
Most people don’t like to think about life insurance, especially when they’re fairly young and healthy. This type of insurance pays for your funeral or other expenses in the event of your death. It is difficult to approach this uncomfortable subject because life insurance policies can often be confusing. Buying life insurance tips often involves what type of policy to purchase and how much to insure yourself for.
If you have a spouse and/or children, you need to think about life insurance right away. Premiums are much cheaper when you purchase a policy as a healthy, young person. Those who are older or in worse health are more likely to pass away, so insurance companies take on more of a risk when insuring them. You owe it to your family to purchase a policy if you can possibly afford to do so.
That being said, you should shop around for the best deal rather than buying life insurance through the agency that works with your company or an agent that you know personally. In the Internet age, you can easily compare policies to make sure you are getting the best coverage for your money and decide which policy is right for your family.
If you purchase your policy online, you won’t be able to speak with a live agent. This is important because you are going to need to ask him or her questions about your policy. Before purchasing life insurance, you should understand exactly what the policy entails and what your beneficiaries will receive in the event of your death.
It’s important that you understand exactly what the policy will do for your family in the event of your death. If the agent is unwilling or unable to answer your questions, you should find a different agent or company. Never buy life insurance without a complete understanding of what the policy means.
When asking questions, make sure to explore with the agent whether you truly need life insurance at this point in your life. If you do not have a family or any tangible property, life insurance may not be necessary.
You can purchase varying levels of coverage. In general, you should purchase 2-6 times the amount of money you are making each year to ensure that your funeral costs are paid for, as well as bills that may be left behind.
Nobody wants to think about dying, but when buying life insurance, tips like these can help your family make it through if something happens to you.
The author enjoys writing about sports, marketing, and health subjects. Pay a visit to his newest web site where he discusses country kitchen cabinets and European kitchen cabinets and more.
Read More...Cancer Survivor Impaired Risk Term Life Insurance
Battling cancer on its own is an extremely trying event in anyone’s life and the lives of their families. If you had already owned a term life insurance policy before you developed cancer, you might have had the opportunity to use the accelerated death benefit to help offset the cost of your cancer treatments as well as other medical bills.
However, now that you have been given a clean bill of health as a cancer survivor, perhaps your term life insurance company chose not to renew your policy or decided to drastically raise your term life insurance premiums. All of a sudden it is a struggle to find affordable coverage since you are now considered an “impaired risk.” Impaired risks are not only people with pre-existing medical conditions or chronic health problems such as diabetes or high blood pressure, but also those who develop cancer, those addicted to drugs or alcohol and even those who have been convicted of a felony. Those who are considered impaired risks often are not able to obtain coverage. If an insurance company is willing to underwrite a policy for those with impaired risks, the premiums are much more expensive than a basic policy.
In recent years, however, insurance companies have begun to find ways to work with people that have health problems, or “impaired risks” – even cancer survivors. It is important to seek out term life insurance companies who specialize in impaired risk coverage rather than “generalists.” Getting cancer survivor or impaired risk insurance has never been easier or more affordable.
How to Obtain Your Coverage
There is good news about term life insurance companies who specialize in cancer survivor and impaired risk term life insurance: they do not operate with a generalized health check list or have blanket requirements to obtain a policy. Each case is evaluated individually. So, as a cancer survivor you would be subject to a thorough health evaluation. You may even be required to submit medical forms signed by your physician stating your current health status. If you are in remission and otherwise lead a healthy lifestyle, basic coverage should no longer be a problem.
Additionally, up-to-date insurance companies now employ a method called “clinical medical underwriting.” Whereas prior to this new system, insurance companies would use a standard mortality table based on 30 year old data, this process takes into consideration all the current medical advances and lifestyle choices that allow people with medical/disability problems to live long and productive lives. Insurance companies now base their cancer survivor impaired risk term life insurance rates on being more informed on individual cases. This means that you will hopefully be able to obtain the best coverage for the least amount of money.
If for some reason you are unable to obtain a term life insurance policy for impaired risk, do not worry. You are always eligible for a guaranteed issue policy. This type of coverage is expensive but they do not require a medical exam and there are no health questions on the application.
Compare Texas TX term life insurance quotes from top US life insurers online
Read More...How You Can Get The Very Best Insurance Offer
Insurance is a fairly unusual commodity, as things go. It’s something we quite willing pay for, month after month, there’s pretty much no physical evidence that we even own anything, and we do all this with the hope that we will never actually need the theoretical product we bought!
This is an overly simplistic view however. What we are actually buying is peace of mind. The security of knowing that if the worst does actually happen, we’ll be ok. Financially, a least anyway. Things don’t actually need to be physical to be capable opf being bought and sold either. Our whole financial securites trading system is based on the ability to trade in notional or theoretical commodities.
So we’re in the position of needing to buy some insurance, either soley for our own reassurance or because the government has required it. I’m thinking of such things as motor insurance here. How do we go about making sure we get the policy that’s right for our needs at the best price?
It is possible to get a policy that will cover absolutely any eventuality, these days. From a professional musician insuring his hand lest he get them trapped in a car door, to covering the costs of a major cultural festival against unexpected cancellation.
Whatever your needs, then there has never been a better time to be in the market place. There is an almost infinite range of information available to us via the phone or the Internet and you are sure to find something that fits your requirements, however obscure they may be. There will always be an insurer eager for your money!
You may assume that the first job is to get on the Internet and try to get in as many quotes as possible. Almost, but not quite. Before you embark on this, you should first try to figure out exactly the level of cover you require.
If your in the market for car insurance then you will have to decide if you want to pay for such thing as cover for aftermarket accessories and expensive stereo systems.
If home contents cover is what your looking for then make an honest assessment of how much it will actually cost to replace a lifetimes worth of accumulated music and books. Clothes, as well, will prove to be surprisingly costly to replace. You would be amazed at how many people sell themselves short in these respects.
As is often the case, the way to get exactly the right deal for your needs is to be prepared and do the research. Know exactly what you want and know where you can be a bit flexible.
The one point to be absolutely clear on though is to not leave yourself adequately covered. Should you need to make a claim the surrounding events are already likely to taken an emotional toll without having to cover a considerable shortfall between what you have actually lost and what you managed to get out of the insurance company.
When you are looking for Insurance there are so many places to visit. With online Insurance choices you should be able to get the cheapest cost. Go online and find out more today!
Read More...How To Choose A Much Better Policy for Disability Insurance Than You Already Have!
Disability Insurance is a simple insurance cover that makes sure that when you are unable to work due to disability you are not affected by huge financial losses. There are a number of companies offering these insurance cover. It is, thus, pertinent that you do some window shopping and find if you are getting the best deal, which means best coverage for such a small amount as possible.
On a day to day basis, there are two kinds of disabilty insurance- short term and long term. In case of short term disability insurance the benefit does not stretch beyond a term of two year while a long term policy can be extended up to one’s entire lifetime.
Taking a disability insurance policy is a serious responsibility because in the time of hardship it can be a right hand man, but if you chose the wrong one it may indeed add to your miseries. Hence, take every possible care and ensure that when you sign the papers you are very well aware of its implications to last detail. Do not consider just one or two aspects, but the entire package.
Remember, your disability insurance policy can be canceled only by you and not by the insurance provider except when you default on premiums. Not only that, the insurance providers cannot even raise your premium unless you have specifically agreed to it.
How much it costs you is a direct correlation to you the individual including age, employment and hobbies. The premiums vary in accordance with the risk of disability involved. The bigger the risk, then the larger the premium.
What is quite curiously grabbing my attention is that the risks of dying are much lower than the risk of disability, but people still go for life insurance truly instead of the disability insurance without giving much thought to it.
Agreed that the burden of the cost of living when you have a number of insurance premiumsto fill up is not easy, but if you have a family to support it is really worthwhile to contemplate a disability insurance for unforeseeable mishaps. After all, there’s no one that can predict into the future, and if no one has, the best option is to weave a security net around your loved ones so that in case you fall, at least they manage to weather the storm.
Want to find out more about Married Couples Plans, then visit Jonni Cristal’s site on how to choose the best Health Insurance for your needs. You can get a unique content version of this article from the Uber Article Directory.
Read More...Saving Money with the Correct Car Insurance Deductibles
When shopping for car insurance, there are a few deciding factors when choosing a policy. There is the initial cost, type of coverage and the deductible amount. Car insurance deductibles can range anywhere form $250 to $1500 depending on the policy and insurance provider.
The deductible is the amount of money that is paid out of pocket by the policy holder in case of accident or damage. Car insurance deductibles are normally found with collision and comprehensive style policies. The lower the amount of the deductible, the higher the monthly premium is that needs to be paid to the insurance company.
While visiting the insurance providers websites and browsing their policies, each one should have different rates for different deductible amounts listed right there. Choosing a policy with a higher deductible amount may be financially easier at the outset of a policy. However, if the vehicle becomes involved in a major accident, the high deductible may be more than is readily available to the average individual.
Car insurance deductibles can however be tailor made to fit in many standard policies offered by most insurance companies. By selecting an affordable policy with a reasonable deductible, the vehicle and the owner can be well protected and a little less worried about the “what ifs” if an accident happens. The average comp and collision deductible that many providers offer is about $500 on most policies of this type.
By visiting the insurance company’s websites, the deductibles can be figured out by using a deductible calculator (most sites have one available as a tool). This lets the consumer know how much the monthly premium will be along with the amount of deductible should anything happen. This helps them in fitting the proper policy in to their budget.
By using the websites as a tool for shopping for vehicle insurance, an easy comparison can be made between many different providers. A short online search brings all major and minor car insurance providers directly to the consumer. Many of the websites not only provide their own rates, but the rates of others for a side by side look at just which policy is most affordable for the customer.
As with shopping for any type of insurance, car insurance can be a little confusing to the average person. Many websites offer a question and answer section to help alleviate this along with and email address and phone number for more direct contact. More that one website has an online chat feature that allows the consumer to speak directly to a live support person instantly and get many of their questions answered immediately instead of waiting on an email or being on hold on the phone.
The time to do the research is time well spent as it will save money in the long run and let the consumer know exactly what their policy covers and how much it will cost them if an accident should occur with their vehicle. The Internet is one of the greatest tools in assistance of locating the proper and most affordable policy for each individual. With all of the information only a few clicks away, this makes for a pain free insurance shopping experience.
Ontario road assistance is absolutely essential to achieve a peace of mind. By joining a membership, you will experience benefits such as Ontario car insurance. Now you can enjoy your trip with no worries! For more details about Ontario auto insurance, please visit us.
Read More...Why Term Life Insurance Vs Whole?
While shopping, you will see that you have a choice between term life insurance vs whole life. A term life policy is least expensive of the two. It is easy to understand how the policy works and it is a convenient method of carrying insurance. The most common coverage options are 5,10,20 and 30, but your coverage time is up to you
When it’s time to purchase a life insurance policy, you basically have two options. You will choose between term life insurance vs whole life insurance You will have to decide what your current and future needs are and what plan is the most affordable for you now.
Are you still not sure which one is for you? If not here’s why term life insurance is a good idea Term life insurance is ideally bought for the intention of covering debts, business insurance, or check replacements to guarantee that the beneficiaries of the insured will still be secured with financial resources upon the perishing of the insured individual. This is also purchased to protect the needs that will be lost even before the insured’s death.
Term life insurance commonly has only one-year-term coverage. People, however, are not very much prepared to obtain insurance policies that increase prices rapidly. To address this, life insurance companies have created policies that cover longer terms, say 10 or 20 years. 10-year or 20-year term life insurance has initial rates that are stable in the mentioned period.
If you’ve decided on term, what about no exam life insurance? Life insurance is something that almost all people know they really should have-but don’t. Simply stated-people never like thinking about the possibility of their own death. However, many people cay bypass this unwanted thought because of their love for their family and the desire to make sure they are financially secure in the event of some tragic event. What most cannot get past, however, is the medical exam that is typically required by the insurance company prior to issuing whole or term life insurance.
Besides the obvious reasons of convenience, there are a number of reasons why people select to purchase no exam life insurance. Some of these reasons include compensating for future burial expenses, as well as being purchased as a children’s life insurance policy.In order to see if no exam life insurance is right for you, you can obtain a free no exam life insurnce quote online. It only takes about a minute!
Jackson searches and writes about No Medical Exam Term Life insurance services. To learn more about No Exam life Insurance or to get a Life Insurance Rate Quote visit his blog at www.termlifeinsurancevs.net
Read More...Ways To Get Adequate But Low Cost Life Insurance
It’s truly very easy for you to find the right life insurance coverage at a lower price. Following are a few things that will help you reach this goal…
Notwithstanding that this may not be a problem for most people it should be mentioned.
Beside the fact that you’re endangering your life, using banned or unregistered drugs will increase you life insurance premium. And even if the use of certain drugs are not illegal, abusing them will also make you spend more on life insurance rates.
Furthermore, avoid self-medication for both its grave implications and the fact that it will make you pay much higher life insurance rates.
If you decide to pay your premiums monthly, you’ll attract higher life insurance rates. Yes, paying monthly might be convenient but it’s also costly.
There are transaction fees that are attached to processing a check. Over the course of a year, your monthly checks would be processed differently because they are all separate transactions. you will then have to pay the sum of twelve transaction charges..
Besides there are also administrative costs that are incurred due to the monthly payment option. A clear example of such is the cost associated with mailing payment notices..
These and more are then included in your life insurance premium thereby making it more than if you paid yearly.
A low life insurance premium is is desirable but,however, be certain that you don’t get beclouded by making it the only factor. You need to focus on getting a low rate that also offers you much value. You can get very low quotes that give you the quality you are after if you shop extensively. But be willing to pay a little more if required to get the right life insurance coverage for you.
In a number of situations very low rates also come with great value but sometimes they may have a poor quality. In such cases, the cheapest is not the best but the best for you ultimately is the best offer eventually.
It is now commonly understood that smoking causes higher rates. What people might not understand is that the same also applies if you use any other form of tobacco product. Individuals who snuff or chew tobacco will also attract higher rates than those who don’t
Steering off all tobacco products will result in more affordable life insurance.
You can get better rates on life insurance today by visiting at least five insurance quotes sites. Each quotes site will take you around 5 minutes or less to receive quotes. (Some people fill in details that are not quite correct about themselves. That is NOT a smart move as the quotes you’ll get this way won’t do you any good). You’ll have to pick lowest life insurance quote for you from the list of quotes obtained. It’s as simple as that. Nevertheless you could easily save hundreds of dollars.
