Insight on Term Insurance Plans

In today’s age, people always want to secure the financial future of the family, so they can lead a decent lifestyle even after their unfortunate demise. Term plan is the answer to secure your family against financial hardship, when you are not around. Buying a term insurance policy provides a sum insured to the nominee/beneficiary, in the event of death of the life insured.

Benefits/Advantages of buying a term plan

Death Cover: Term plans provide pure life cover and it becomes a must buy, if you are the only wage earning member in the family. In case of your untimely death, it pays an amount equivalent to the sum insured to the family, so their finances are not affected.

Fulfill Financial Objectives: In case of untimely death of the life insured, a one time lump sum payout equal to the sum assured helps accomplish major financial goals like child education and marriage. The payout from a term insurance plan also helps pay off debts such as home loan or car loan.

Ensures Regular Income: Some term plans are available with lump sum payout plus monthly income to the family, when you are not around. These types of term plans help your family meet the regular expenses with ease.

Attains Maturity Amount: Typically, term plans do not offer any maturity benefit, but TROP plans offer the maturity benefit, and thus, returns the paid premiums at the maturity of the policy, provided the insured survives through the policy term.

Opt for Additional Coverage: You also have the option to choose riders with a term plan. Riders such as Accidental Death Benefit, Disability rider, Critical Illness, and Income benefit Rider help enhance protection to your base policy.

Major factors to consider before buying a term plan Want to buy a right term plan that can ensure the financial well-being of the family? Following are the key aspects you should consider prior buying the plan.

Adequate Cover: Choosing a right cover amount ensures that your family gets the payout that can cover day-to-day and other major expenses like children’s education/marriage, paying off debts, etc. Buying a plan with an inadequate cover is of no importance.

Policy Tenure: It is advisable to choose a policy tenure, so you can pay off all major financial liabilities. Avoid choosing a shorter policy that may end up when cover is required the most. It’s best to opt for a policy that offers flexible tenure options, so you can choose tenure depending on your protection needs.

Consider Inflation: When looking to buy a term plan, it is advisable to make an estimate about the inflation and then get a life cover that can easily cover your family’s financial expenses at a time say 20 years from now. You may consider the inflation rate while picking the sum assured for the policy.

Claim Settlement Ratio: Claim Settlement Ratio gives you an idea for the number of claims settled by an insurer. Higher ratio signifies that the insurer is reliable, when it comes to settlement of claims. It is thus advisable to choose an insurer that has the highest claim settlement ratio.

Choose Riders: When it comes ensuring financial protection for the family, you never want to compromise it in any manner. Choosing right riders with the term plan always boost protection. Riders help enhance protection, provided you have opted for the most appropriate rider/s. Riders are available on payment of additional premium, so choose it wisely.

Read Policy Terms: It is advisable to go through the policy benefits & inclusions and term & conditions, so you can assess the suitability of the plan for your family. Choosing the right term insurance plan would help build a secure financial future of your family.

Compare Plans Online: Prior buying a term plan, it is essential to compare plans from several insurers. Comparing plans online provide you an option to explore various term plans & its benefits. It helps you figure out a plan that would be the best fit. Insurance comparison portals such as http://www.comparepolicy.com helps you make an easy comparison. You can also buy it from there with huge discounts.

Assess your protection needs, choose a term plan and invest with the right insurer is the key. Insure your life and ensure your family’s protection.

Over 50’s Life Insurance Plans Good Value?

One of the most popular life insurance plans currently advertised in the press and on televisions are the over 50’s plans or you might sometimes hear them called funeral plans and advertised with the aim of covering the funeral costs on death.

Typically these policies offer a free welcome gift like shopping vouchers when you sign up as a way of encouraging the potential customer to apply and have no requirement for any medicals or medical questionnaires and if you die after one or 2 years depending on the insurer you will get paid on your death the amount your policy is for.

But there is a cost for this, as using the figures for one of the UK’s leading life insurers a 55 year old non smoker taking out an over 50’s life insurance policy paying £6 per month would receive life cover of £1131 life cover. This is where it gets interesting as the same company offers a non over 50’s life plan and the same 55 year old non smoker taking out a life plan over 30 years and paying the same £6 per month would receive £6436 life cover or almost 570% more cover for the same monthly payment!

So if you are in good health it is possible for the same monthly payment your loved ones could receive an extra £5,005 on your death.($8088)

Before jumping to the conclusion that they are not good value for money though a few of things need to be considered.

  1. The over 50’s plan does not require a medical and if you are not in good physical health it is possible you might fail the medical so the over 50’s version might be the only option available to you, and regardless of the state of your health your loved ones will get the money if you outlive the qualifying period.
  2. The over 50’s version continues until the age of 90 and then cover continues for free (If you are lucky enough to live that long it means you have paid out £2,520 premiums but will only receive back £1131)
  3. The under 50’s version stops at 85 so if you die after this date the premiums you have paid will be lost as you will no longer have cover.

So if you are looking for life insurance shop around and consider your options carefully as just because a plan is advertised very heavily on television and in the press does not mean that it is offering good value. The point of all life cover is to provide cash for your loved ones or dependents on your death and the more cover you can get for the same monthly premium the better.

Learning About Life Insurance Plans

For most individuals who opt for a life insurance plan, it is an integral part of making sure they have some financial security in their lives. Insurance is one of the most widely used security tools on the market. The premiums that these individuals have to pay towards these insurance plans are based on a number of factors. They often include the following factors:

1. Gender of the individual
2. Age of the individual
3. Hobbies of the individual
4. Quality of life of the individual
5. Profession of the individual
6. Medical history of the life assured etc.

Hundreds of people all over the world benefit from different insurance plans. Individuals who belong to various age groups and different walks of life will probably buy life insurance at some point during their lives. The various groups that buy insurance fall under these groups:

a) Single parents
b) Couples married or unmarried with a mortgage or other debts
c) Couples married or unmarried with children
d) Single people with a mortgage or debts etc.

Some of the different kinds of insurance are:

1. Variable life – Individuals can select from a wide range of investment products long with stock funds.

2. Term insurance – This insurance policy includes buying coverage for a particular tenure and for a specific amount. If the individual who has bought this plan dies during the insurance tenure, the beneficiary will receive the value of the policy. This type of investment does not include any investment coupon. The term insurance is the simplest form of the different insurance types available to individuals.

3. Universal life – Individuals who opt for this insurance policy get to decide how much the premium should be. The insurance company selects the investment option for the individuals, which might include bonds or mortgages. The amount of investment along with the return on the investment is deposited in a cash value account. The type of universal life insurance where an individual can select his or her own investment tools is known as a universal variable life plan.

4. Whole life insurance – This type of insurance plan is more or less like the term insurance plan. The only difference is that of the tenure. Due to the prolonged tenure, the premiums remain stable throughout the duration of the policy.

There are many benefits for opting for different types of life insurance plans. These advantages include:

a) The insurance policies secure the future of the spouse and children.
b) These plans can be used to pay for estate taxes and other settlement amounts.
c) The cash value policies are tax deferred, which means individuals will not be required to pay tax against this amount until the time they withdraw funds from the policy.

Uninsured? 10 Reasons to Shop & Compare Health Insurance Plans

If you are uninsured, here are 10 great reasons you should shop and compare health insurance plan and get covered today.

1. Affordability

Often health plan premium prices vary, up to 50 percent, between similar health plans. Comparison shop to find the best price on a plan that fits your budget. An affordable plan can save you thousands of dollars in medical expenses in the long run.

2. Helpful Benefits

Get the health insurance plan that has all the benefits you need and none that you don’t. There are plans that will give you the coverage you want and help you save money without the high priced premiums for services that you won’t use.

3. Convenient Access to the Best Doctors

You can easily find health plans that cover office visits to doctors that are in your area. You’ll save money by taking advantage of the lower costs for services within your insurance provider’s network of doctors.

4. Prescription Savings

Many health insurance plans also have prescription benefits, which will save you money on your medications.

5. The Best Access to Medical Care

Uninsured patients pay upfront for medical care. If you don’t have that kind of cash lying around, get insured so you’ll have readily accessible medical services whenever you need them.

6. Preventive Care: Covered

Some insurance plans will cover essential preventative care, so staying healthy and avoiding serious illness is affordable as well as good for you.

7. Financial Security

Having health insurance will protect you against the high cost of an unforeseen illness or injury. With most health plans, you’re only responsible for an annual maximum amount (called a deductible) or a set percentage of your medical expenses; your insurance company picks up the rest of the bill.

8. Less Expensive Care

Most insurance companies negotiate rates with doctors, so you pay less for medical care than you would if you were uninsured. You may also save yourself from the cost of expensive medical procedures by using your plan’s preventative services to stay healthy all yearlong.

9. Consider COBRA Alternatives

You may be able to save money if you choose an individual plan or short-term insurance instead of CORBRA. You can get the same (or better) coverage for less.

10. Peace of Mind

Most importantly, a good insurance plan will ensure that you and your family can get the medical care you need when you need it.