Advantages of a Whole Life Insurance Policy And Why You Need It

Whole Life Insurance policies are more expensive than the more popular Term Life Insurance policies but with the extra expense comes additional options that make Whole Life policies more attractive to many consumers when compared to Term Life policies. The most glaring advantage of Whole Life Insurance, besides the lack of expiration date, is the ability of the insured to take out a loan with the cash accrued by the policy, so long as the premiums are kept up to date, the policy and its advantages do not expire until the insured does. The term life policy, however, can expire before the death benefit is paid out, thus leaving the previously insured person in a position of attempting to find a new policy or renew the other policy at an older age that brings with it, higher insurance premiums.

Whole Life Insurance policies carry with them additional features that are hard for some people to resist, as well as beneficial riders that most people deem necessary for extra protection for their loved ones. The most popular riders added to the whole life policies are accident benefits and accrued benefits in the case of disability.

It is true that whole life insurance is more costly that term life insurance, but its premium is the same throughout life, as the policy is guaranteed throughout the insured’s life as well. Term life insurance might be cheaper for the first term, maybe twenty years for a policy, but then the renewal will base the insured’s new premium on their new “older” age and mortality bracket. If at this time the consumer decides upon a whole life policy at this older and wiser age, the premium will be phenomenally more than it would have been for the same dollar value policy twenty years earlier. In the end, the consumer ends up paying thousands of dollars more in the long run, having to purchase a more expensive life insurance policy later in life, and additionally, he or she does not have the extra twenty years of savings and investment income from the whole life policy. So, ageing might bring with it wisdom, but it also brings higher insurance premiums as well. In the case of whole life insurance, it pays to do a bit of research in order to make the better choice the first choice.

Those opposed to whole life policies will use the time honored saying, “Keep Insurance and Investments Separate!” However, as good as this idea may seem, it does not go on to explain that the consumers are expected to use the money they save each month with the cheaper term life premium and use that “extra” cash to invest and make money by investing themselves. First, a person must be committed to take an amount of money that is touted as “extra” and invest it each month in whatever they see fit. Second, in this time of financial hardship, people who are short on “extra” money might not really have the excess to invest, and probably wouldn’t know where to start when it came to investments and stock portfolios and the like. So, it might cost more in the beginning, but the whole life insurance carrier knows how to invest that “extra” money the insured consumers so willingly pay into their future and their families’ future every month. Leave investing to those in the loop and remember it is always easier to do things right the first time!

Life Insurance Policy Rates – Tips and Advice

If you have a family then it is important that you get a good life insurance policy to cover your family in case you die. Although no one wants to think about their own death, it is an unfortunate fact of life that everyone needs to face. Everyone will die one die. Making sure that your family has coverage is very important part of insurance. Finding different life insurance policy rates is essential when you are looking to get insurance coverage.

People who are looking to cover their family with life insurance should consider getting a whole life insurance policy. These policies offer you coverage throughout the duration of your life and allow you to cash out of your option. The whole insurance policies do not expire after a certain period of time which can give you peace in mind that you will be covered. Another benefit is the cost of the insurance doesn’t increase you get older. You pay the same rate throughout the term of the insurance.

Individuals who are looking to get a short term insurance policy that will cover you should get a term insurance policy. Term insurance basically specifies a specific period where you are covered by your term plan. You can renew the plan after it expires but your premiums may increase. This insurance plan is good for people who don’t have a family that they need to look after. Go online and look up the best life insurance policy rates available. You should make sure you find a good insurance plan that has the coverage you need with the price you can afford.

Strategies For Finding Missing Life Insurance Policies

If you have anyone depending on you, life insurance is of paramount importance to ensure their financial safety. Once you have purchased a suitable life insurance policy all the beneficiary needs to do in order to collect the payment, is to give a legitimate copy of the insured person’s death certificate to the insurance company. However, if the policy has been mislaid and cannot be found, how does one go about claiming the money?

How to find a missing policy

As there is no Company nationwide that can assist you in finding the policy, you will have to look yourself. While it may be a cause of some consternation, finding it will ultimately bring about a substantial reward.

Here are nine ways of finding a life insurance policy that has been lost:

I: The deceased probably has files that may contain bank account records, documents, or receipts that are proof of a transaction with the insurance company.
II: Contact people who had business dealings with the insured, perhaps they had a business partner whom they trusted implicitly, or a lawyer who handled all their affairs. These people could provide you with the valuable information you need.
III: The insured may have been prudent enough to buy more than one type of life insurance policy, and could have been content enough with an insurance company to continue doing business with them. Finding any such records will simplify the recovery of the policy.
IV: A company’s HR department would have records of any group policy bought by the deceased, so find and contact their past employers.
V: Some life insurance policies pay expenses, and allow interest income to be earned, so have a look for previous income tax forms.
VI: For twelve months after death, the insurance company will issue premium notices or else a yearly statement regarding policy status will be posted to them. With this in mind, take a special interest in the deceased person’s mail for clues.
VII: Each state has a department of insurance, which is often used by companies trying to find beneficiaries of a life insurance policy. This is because the state department may have the requisite information to find the name of the insurance company used by an individual. Contact this department, and they may help you find what you are looking for.
VIII: In the event of a beneficiary not being found within three to five years, an insurance company may decide to give the state the proceeds for safety. If this is the case, a call to the unclaimed property office of the state could prove fruitful.
IX: When the deceased initially applied for life insurance, they would have to have undergone medical testing. The Medical Information Bureau (MIB) may have information on their database pertaining to the insurance company the deceased was insured with.

Time and Payments

There is no time limit when it comes to claiming on life insurance, yet astonishingly, it is claimed that one-quarter of all policies go unclaimed.Yes, even if a policy is discovered thirty years after the policy holder’s death, it can still be claimed, as long as there are no suspicious circumstances surrounding their death, and all premiums were paid.

If the policy holder dies suddenly, and results in the insurance policy being rendered null and void because the premiums were not paid, the company will always try to contact them to find out the reason. At this stage, the beneficiary can make it known that the policy holder is in fact, deceased. Upon producing a valid death certificate, the beneficiary is legally entitled to every cent due by the terms of the policy.

If the policy holder passes away with no one to claim the money however, the insurance company can either turn it over to the state for safekeeping as already outlined, or hold on to the money until the beneficiary becomes aware of the situation and claims it. No matter what, that money stays available until it is found.

The end result

It is often difficult to locate a missing life insurance policy, especially if it has been gone for a long time. It will take time and effort, but, invariably, putting in the hard yards and finding it will justify every second you spent in pursuit.

How To Find Affordable Life Insurance Policies

All of us try to make our future secure. More than that we all try to make our family`s future secure. Though we are leading a peaceful and well settled life sometime we get awed by the unseen thought that if some untoward happen to us and our happy and secure family may come on the road. To think negative is not a good habit but so many such incidents happen in front of us every day that we can not avoid thinking about ourselves and get worried. So, to guaranty our and our family’s future we go for life insurance policies. But, here comes the question as which policy is affordable for us.

Before speaking about affordable life insurance policies it is necessary to first categories the section of people for whom the policies are meant for. Normally, there are three sections of people in our society i.e. rich, middle class and poor.

The poor sections are satisfied if they get their daily meal, some clothes and a shelter. They earn on daily basis and buy daily food for the family. They can hardly think about their future security. Further, they are not so aware about life insurance policies. If they are little bit literate then they keep some saved money in the bank.

In a middle class family the main source of income is job, agriculture or small business. The middle class people are the most aware about life insurance policies as they feel not so safe about other investment policies. These days, almost all the grown up members in a middle class family are well educated and earning either taking job or some other fields. So in such cases it is easy to take affordable life insurance policies for them. They should prepare a monthly budget of all the essential expense. Suppose an individual can save Rs 2000/- per month then he can choose Rs 12000/- half yearly premium policy. After deciding the amount of premium as how much you can afford it is to decide as which type of policy you want to go for. In the market there are so many types of policies like critical illness cover, accident cover, education, to protect the assets etc. So we can decide as which one suits us. Normally, only the head of the family worry to go for life insurance policies. But if the children are also working or earning it is better if they can also go for such policies according to their income.

As the rich section of people has big properties vast empire of business they normally have their own consultant for investment. Still, it is better for them to insure their property buy life insurance policies for self and family members to guaranty a secure future, as no one knows what happens tomorrow.

As we know that the amount of premium of life insurance policies is exempted from income tax it is always wise to calculate the income tax before going for the policies. This will do double profit of tax saving and a secure future as well.