Article by David Livingston
Life insurance plays a vital part in your long term financial planning. It acts not only as a back up in case of contingency but also protects the family in case the primary bread winner of the family passes away. Life insurance can replace that person’s salary. One can also plan the expenses for their burial with the help of life insurance. A partner’s interest or shares in a business can be bought out. Life insurance can provide for children’s college education and take care of the home mortgage, utility and hospital bills. In a nutshell, life insurance is the buffer when a family faces financial crisis. This crisis can unexpectedly and suddenly strike any family in the form of the passing away of the main earner or his or her getting disabled and unable to work.
There are two types of life insurance one is term life insurance and another is permanent life insurance. Short term insurance is valid only for shorter period of time but can be renewed later or can be changed in to permanent policy if you opt to. There are two types of permanent life insurance on is universal and the other is whole life. These policies keep the sum assured and also give bonus and so this can be considered as a money investment. Term life policies can only serve the purpose when the insurer passes away within the given time and apart from this it does not give an give any monetary benefit.
Affordable term life insurance is the ideal plan for families with limited incomes. Term life insurance is a type of temporary insurance in which the insurance is offered for a limited number of years or a predetermined term which can go up to a maximum of thirty years. In this type of policy, the insurance amount is settled with the beneficiaries of the insured person in case the latter passes away within that term. If the insured person lives for longer and outlives the term of the policy, then no settlements are made.
It is best to buy an insurance policy when you are young, because you can then get low premium rates. The insurance company’s monetary responsibility is less when insurance is got by a younger person. Medical examination is required to ascertain the insurability of a person. This gives a clear health picture of the person. If the insurer has a sound health with no health complication then the insurer can avail low premium rates.
The health check up done to the insurer is done at the own cost of the company by doctors and it takes many hours or a full one day. Blood, urine samples are collected along with various other tests like x-ray, ECG. Then these samples are reviewed and results are given. The outcome of the results determines whether your application for the insurance will be accepted or rejected. If accepted the premium rates to be offered is determined. This whole procedure takes at least few weeks to get over.
A lot of potential insurance buyers want to purchase insurance quickly without undergoing a medical examination. Some people do not like to be examined physically and some detest being poked with needles. A lot of people also can not find the time in their extremely busy schedules to take a physical examination. They can opt for instant term life insurance. When this policy is applied for, the individual is only asked a few questions related to the age, health, whether smoker/non smoker, history of family illness and lifestyle to determine the insurability and within a couple of hours the rates are determined and a policy is sold to the individual.
These policies can be assessed from time to time when sometime major happens in your life your marriage or divorce, the birth of your baby, or when investing in real estate or a business, or even when switching jobs and so on. If you have the capacity to afford large premiums the you can go in for term life insurance policy when is the apt one for you.
About the Author
Article by David Livingston of EQuote.com, a website with the best low cost term life insurance and affordable life insurance information in the country.
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