Basic Life Insurance

Before signing a certain contract, the company already discusses the possible consequences if you can’t pay your life insurance premium. It depends on the type of policy you have.If unexpected expenses come up and you can’t pay your life insurance premium, you should know the possible consequences. The effect depends on the type of policy and coverage you have and the policy terms and conditions. If you choose “term” from the time you stop paying your coverage lapses. While when you choose “permanent” you have 3 choices. The first one is the cash out policy where in you can stop paying the premium and collect all the available cash savings but no longer covered by life insurance. The other one is non-forfeiture which means you can completely stop paying premiums in return for a reduced death benefit and no cash saving. Last is policy will lapse. If this happened, see if policy can be reinstated.

A beneficiary is the person listed in the policy to receive the benefits when the insurer dies. You can either name a person, two or more people, a charity, or your estate. There are two levels of beneficiaries. Primary beneficiaries gets the benefits if they are present or are found after the death. If not, Contingent beneficiaries will get the benefits. If both beneficiaries are not found the said benefits will be turn over to the state of the insurer. So always remember that in listing the name of your beneficiaries, you should identify and write them as clearly as possible to make it easier for the life insurance company to find them. Choosing your beneficiaries is not that easy so take time to decide.

When buying life insurance always remembers that there are ways to save money. As much as possible, try to look for policy that meets your need. If you think that buying low premium is a saving for you, think twice because it is just a waste not a saving.
As your top priority, look for a policy that meets your needs. Here are some reminders to maximize your life insurance.
1. Almost everywhere you can find companies selling life insurance so you need to focus on financially sound companies.
2. Give enough time to shop around to get a sense of the premium you’re likely to pay.
3. Look into group insurance so it can be less expensive than individual life insurance because employers often subsidize their group insurance costs.
4. Most importantly is to take good care of your health. Maintain a healthy life to qualify for a more favorable rate class.

If you can afford it: Yes! Listed below are just some of the reasons why you should get one:

Although you may not think about it, your ability to earn income is a significant asset and life insurance helps replace lost income in the event of your premature death. Here are some reasons people buy life insurance.
The death benefit may be used:
• To replace income the family would need to maintain their standard of living after the death of a wage earner.
• To pay off a mortgage loan and other personal and business debts or to create a rent fund.
• To create a fund for children’s education.
• To pay final expenses, such as funeral costs and taxes.
• To create a family emergency fund or a fund for a family member with special

Source

Whole Life Insurance is lifetime insurance. It protects your life from the time you purchase the policy till you die. You can also prepare for the financial needs of your family when you die. This type of insurance provides you not only basic insurance protection but also mortgage protection, estate preservation, retirement funding, charitable giving and business needs. After the first year, the policy starts to accumulate cash value. It can earn dividends which can fluctuate from year to year. When the insurer dies, the insurance company will pay the beneficiaries the death benefit. It is free from federal income tax.

Term Life Insurance is the opposite of a permanent life insurance. It is purely for protection purposes only and builds absolutely no cash value.

Term Life Insurance keeps you covered only for a limited period of time. For example, if a singer goes on a world tour, he is insured by the producer only for the period of the tour. After the term life insurance contract, the insured has the option not to renew the policy or still continue with benefits. However, if the person insured dies during the term, the benefit will go to his signed beneficiary. Term insurance is the cheapest purchase of substantial death benefit on a cooperage with a per premium payment.

An insurance that remains only until the policy pays out is called a Permanent Life Insurance. This type of life insurance builds cash value that reduces the amount at risk in the insurance company and the insurance is expense over time. To explain further, the policy that has a million dollars value can be affordable to an ageing 76 year old woman because the real amount of insurance that he bought is less than a million dollars. When you have one, you can access your money by borrowing the cash value, withdrawing your money or simply by just surrendering the policy and receiving the surrendered value.

If you want to be an effective insurance agent, you have to make your prospective clients realize the need of purchasing a life insurance. You have to make them realize that he/she should think about her retirement. Old age is something that we can never avoid in the later years. You have to be financially ready for your future expenses without a daily job as a source of money.

Having your house built on your own is something that a person can be proud of. Renting out a condo unit or an apartment is ok, but how fulfilling it is if you stay in a house that you can confidently call your own?