Life Insurance - Who Needs It
by: Neil Mercer
Why Do You need Life Insurance Cover?
Who needs it?
Life Insurance cover provides either a lump sum or an income on the untimely death of an individual. Therefore, anyone who's death would create a financial loss to another has a need for life insurance cover. This could/should include the following: -
Parties to a Mortgage or indeed a loan (mortgage life insurance cover)
Anyone with dependents (whilst a parent may not work, surely there would be a financial loss if anything were to happen whilst there are young children to be cared for)
Key Individuals. Where a business would suffer financial loss on the death of an essential employee.
In essence any situation where monetary loss would be incurred could possibly have a need for life insurance cover.
630,000 people in the UK will die this year* *source:National Statistics, Winter 2002
Types of Cover
Term Life Insurance
Term life insurance is as it suggests taken out for a specified number of years at outset. With this type of policy you are merely paying for the cover provided based on your age, health and the term. Therefore, it is important to obtain the most competitive term life insurance quote for the cover provided. It is possible to take out term life insurance that will pay level lump sums, decreasing lump sums (mortgage life insurance cover) or regular payments (income).
Whole of Life
As the name suggests, potentially, this type of policy will provide cover through an individuals life time. However, when obtaining a whole of life insurance quote, as well as level of premium there are other aspects to be considered, such as investment performance, effect of charges, financial strength of the company.
Which one?
There are good arguments for both type of policy. We would suggest that the following could make up the main considerations: -
Cost - Whole of Life insurance, as a rule of thumb is usually the more expensive type of product.
Period that cover is required - If cover is required for a specific period i.e. a Mortgage then Term cover could be more appropriate
Future Plans - If, for instance a family is planned, then whole of life can offer the flexibility to increase cover for this or other like events.
Note
Critical Illness(CI) now provides an equally important benefit and we would strongly recommend that you view the CI Factsheet.
Conclusion
This factsheet is meant merely as a rough guide to the needs and options surrounding Life Assurance. It is by no means a comprehensive outline to anyones particular requirements. It would be, therefore, wise to use this as a guide and seek more comprehensive advice, via a professional Independent Financial Adviser. All advisers are Regulated and Authorised by the Financial Services Authority (FSA) and are now required to explain their status to you (either independent and fee charging, independent but paid by commission only, or tied)
About The Author
Neil Mercer is a Consultant with STE Associates Ltd and is Regulated and Authorised by the Financial Services Authority.
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Term Life And Whole Life Insurance
Term Life And Whole Life Insurance
by: Ivon T. Hughes
Which type of policy is best for you, term or whole life? The answer depends on several factors, including:
Your Needs. If you need coverage only until your children graduate from college, for example, you might be better off with a term life policy.
Cash-value insurance is better suited for long term needs, such as planning estate taxes and providing lifetime security for your spouse. Some term policies cannot be renewed past age 70 or 80 and can become costly to renew as you approach that age.
The Cost. If term life insurance is more suited to your budget and you want life time coverage, consider a term life policy which can be converted into a whole life policy. Then you can convert the policy whenever your cash flow or needs dictate. You can also purchase a combination of term life and whole life insurance and gradually shift into whole life insurance over time.
Your...
Term Life And Whole Life Insurance
Term life insurance > Term Life And Whole Life Insurance
Life Insurance - Make Sure Your Family Is Cared For
Life Insurance - Make Sure Your Family Is Cared For
by: Jakob Jelling
No matter who you are or what you do for a living, you should make sure that you have some sort of life insurance policy.
However, this is even more the case if you are one of the only sources of income for your family.
In this case, you should keep in mind that your family will lose your income should you die prematurely - but with life insurance, they will still be taken care of afterward.
These are not situations that anybody likes to think about, of course.
However, it is always best to be prepared for the future.
There are two types of life insurance that can apply to most people.
The two policies are both term life insurance and permanent life insurance.
While ideally, everybody would be able to get permanent life insurance, that might not be the best choice for you due to the price of insurance.
Term life...
Term life insurance > Life Insurance - Make Sure Your Family Is Cared For
Critical Illness Insurance And Life Insurance Cover For Better And For Worse.
Critical Illness Insurance And Life Insurance Cover For Better And For Worse.
by: Rachel Lane
There are three main types of insurance cover you can buy to protect yourself and your family: life insurance, private medical insurance and critical illness insurance. If you want your financial health to be completely bionic then you could choose all three types of insurance, but if your family finances are more restricted, it might be better to insure yourself with critical illness insurance and life insurance. Critical illness insurance should not be confused with private medical insurance or even income protection insurance and it?s important that you do a full evaluation of your needs before you pursue the different insurance options.
The purpose of critical illness cover (CIC) is to fill a gap that is left by traditional life insurance policies, which will only provide a pay-out on the death of the policy holder. CIC provides a tax free lump...
Critical Illness Insurance And Life Insurance Cover For Better And For Worse.
Term life insurance > Critical Illness Insurance And Life Insurance Cover For Better And For Worse.
The Four Chief Types of Life Insurance
The Four Chief Types of Life Insurance
by: Evan Davis
Life insurance, at its core, is a means to protect the financial security of one's survivors. It is generally thought of as a way to provide income replacement for a wage earner's survivors in the event of death.
Life insurance is purchased from an insurer by making regular payments of premiums during the life of the insured.
Upon the death of the insured, designated beneficiaries receive a financial benefit.
Although all life insurance policies maintain those consistent characteristics, there are different means to achieving the same end.
Four distinct types of life insurance have been developed and are in common usage.
*Term Life Insurance
Term life insurance is probably the most basic form of life insurance.
Term insurance is purchased for a specific period of time (the term).
The length of the term can vary considerably.
Term life insurance > The Four Chief Types of Life Insurance
Life Insurance - Who Needs It
Life Insurance - Who Needs It
by: Neil Mercer
Why Do You need Life Insurance Cover?
Who needs it?
Life Insurance cover provides either a lump sum or an income on the untimely death of an individual. Therefore, anyone who's death would create a financial loss to another has a need for life insurance cover. This could/should include the following: -
Parties to a Mortgage or indeed a loan (mortgage life insurance cover)
Anyone with dependents (whilst a parent may not work, surely there would be a financial loss if anything were to happen whilst there are young children to be cared for)
Key Individuals. Where a business would suffer financial loss on the death of an essential employee.
In essence any situation where monetary loss would be incurred could possibly have a need for life insurance cover.
630,000 people in the UK will die this year* *source:National Statistics, Winter 2002
Types of Cover...
Life Insurance - Who Needs It
Term life insurance > Life Insurance - Who Needs It
Online Life Insurance
Online Life Insurance
by: Gary Tallon
Are you considering taking out life insurance? If so, it?s a good idea to review what life insurance companies have to offer by searching for life insurance online.
Over the past few years the online life insurance market has become very buoyant. Most major life insurance companies are now represented online, and they have been joined by smaller life insurance companies as well as life companies who operate exclusively online. As the Internet is akin to a level playing field, small life insurance companies now have just as much chance of selling a life policy online as do larger insurance companies. This has created some intense competition between insurance companies for online customers, many life companies providing discounts and incentives to attract life customers to their policies. Consequently, you can now pick up online life insurance for as little as ?5 per month.
Online life insurance?choices?choices!
The...
Online Life Insurance
Term life insurance > Online Life Insurance
Where To Find Cheap Health Insurance
Where To Find Cheap Health Insurance
by: Bob Hett
Health insurance costs are rising all the time. Many people feel they cannot afford health insurance. Others feel that they don?t need it because they are healthy and have never had any major medical problems. This is definitely faulty thinking on their part. As a matter of fact, you do need health insurance, and there are a lot of ways to get affordable health insurance for yourself or your family. Health insurance is protection against the possible health problems that could happen in the future, and you have absolutely no way of knowing what those might be.
For people who are low income, every state has a Medicaid program that they could possible qualify for. The requirements vary form state to state, but all it takes is a trip to your local Division of Family Services office to get an application. You might be surprised at the number of people who would actually qualify for this service that...
Where To Find Cheap Health Insurance
Term life insurance > Where To Find Cheap Health Insurance