The Options Surrounding Death Insurance
October 18, 2010 by Michael Cobbs
Filed under life insurance
Whilst you are still young, it is strongly recommended that you purchase a death insurance policy. Not only will you be relieved that your funeral costs and debts are sorted out but you can live out the rest of life knowing that your relatives can spend the extra time thinking about you and not where the money is coming from.
Having an insurance policy that is either known as burial insurance or death insurance is a great asset to making sure that you are sorted before you do pass away. This policy provides funds for your funeral costs and so close relatives are not let digging into their own pocket. There are a few choices when it comes to this kind of insurance and it is worthwhile finding out as much as you can about each one.
Other types of death insurance include the option of getting a lump sum paid to any named beneficiary in the event of your death. The difference between these types of policies and the Pre-Need Insurance is that the funds are not specifically allocated to the costs of a funeral. If you still have money owing to others after you pass on, the funds from these policies can be used to pay these debts off. Items associated with death including medical bills and nursing home fees could be paid off in full. Commonly these policies are called simply Burial Insurance or Final Expense Insurance.
The advantage of these types of policies is that you pick the person who receives the death benefit. It could be a spouse, colleague, your children or a friend. It is recommended that after taking out a policy, you discuss with the beneficiary where you would like the funds to be allocated. You may have specific requests about who should be given a payment from the monies received. It is worth noting that the beneficiary will be given the money to use as they see fit unless you do this. Also, any cash that is left over belongs to the named person themselves.
The benefits of burial or final expense insurance include being able to choose who you wish the beneficiary to be. It could be a close family friend, one of your children or a business associate. Whomever you choose, it is recommended that you talk to them about what you want to happen with the benefit after you have passed away. If you have certain people of companies you wish to receive some money, then this should be pointed out to the beneficiary after the policy is started. These policies allow the beneficiary to spend the money as they see fit if there have been no specific instructions from the deceased. Nominated beneficiaries are also normally able to keep any left over money as their own.
When searching for death insurance policies you will find that there are two main types to choose from. Whole Life Insurance is designed to last from the moment it starts until the time of your death. There is no waiting period to contend with if you choose this option. Term Life Insurance lasts from the time a policy is started until a pre-determined end date; thus it is limited by a set period of time. If you die whilst the policy is still active, then the beneficiary will receive the benefit. If not, then the policy is simply cancelled. You will find that the premiums payable for the latter policy type is normally cheaper than the premiums for the former type.
Death Insurance policies present several options for the buyer. You can opt for a Term Life Insurance policy which will only run for a certain amount of time. If you die during the time that the policy is live then your beneficiary will receive the full death benefit. Should you live past the expiry date of the policy, no funds are released and the policy is void. Whole Life Insurance runs until your death and does not have an expiry date at all. It is common for Term Life Insurance Premiums to be slightly less than Whole Life Insurance premiums due to the fact that they are not indefinite.
Finding out about and buying death insurance is quick and easy. These days you can apply or buy via telephone, internet or in person, if you prefer. Insurers now have their own sites online where it is possible and convenient to fill in a quick application form. Usual circumstances dictate that the insurer will not ask for you to answer questions relating to your medical history or request a medical exam.
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Reasons To Buy Final Expense Life Insurance
October 17, 2010 by Michael Cobbs
Filed under life insurance
It is unfortunate, but death really does come to us all; this is why it is crucial that we invest in a policy such as final expense life insurance. By taking out this option of burial policy, it is possible to leave all the hassle and stress of death, for you and your loved ones, behind.
The final expense life insurance policy was created to help out with the cost of your funeral. One of the kinds of burial policy you can purchase is designed solely for this purpose. A final expense policy differs in that you can use the money for much more than the funeral bills. You could allocate money to be used to pay off sheltered accommodation invoices or medical fees. Anything aside from the costs of the funeral, the money can be used for too.
Unlike other policies you can take out, you are able to name the beneficiary, who will receive the money after you die. It is best to discuss how you would like the money to be used with the beneficiary once the policy has been started. One point to note is that the beneficiary will be allowed to keep any remaining balance after all the funeral costs and other debts specified by you have been paid off.
You can name your partner or spouse, a friend or any children as the beneficiary; there are no limitations. Many insurers recommend that any final expense policies where children are the named party should be held in a form of trust. This is because there can be tax issues surrounding this scenario.
Getting a final expense life insurance policy is a simple and speedy process. It is normally the case that you can apply via the internet and will receive a decision with a couple of days. Generally speaking, you will not be asked to take a medical or to answer any queries about your health.
Some insurers may impose a guaranteed policy when you apply for the insurance. This basically means that there is a strict waiting period that must be adhered to. This form of burial policy means that if you pass on during the waiting period your beneficiary will only receive a refund of the premiums you have paid. If you pass away after the waiting period has ended, then the benefit will be paid out in full.
It is common to be able to take final expense life insurance policies out in joint names. You should be aware that by doing this, the insurer will only make one death benefit payment, and that is for the first death only. If you partner or spouse passes away after you, then the insurer will not pay anything more to the beneficiary. The premiums will be kept at the same amount throughout the life of the policy and the cover will only be stopped if you fail to make any of the payments.
As death is an important part of life, it is best to be prepared as soon as possible. By taking out a final expense life insurance policy, you can ensure that there are no complications in the future and can enjoy the rest of your life to the full.
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Guaranteed Life Insurance: What Is It?
October 16, 2010 by Susie Cusick
Filed under life insurance
If you are getting on in years and have not sorted out your life insurance, you may wish to consider a guaranteed life insurance policy. This is one of the many policies around but it is appealing to those who may not be in the prime of their life.
Insurers can give a guaranteed life insurance policy to anyone of any age. So if you are in your 20′s, 80′s, or 90′s, then this is a suitable option for you. It is common for those who have a serious medical condition and have been unable to get cover elsewhere to opt for a guaranteed life insurance plan. This means that the lump sum will be paid out to the named benefactor, no matter what happens. – it is guaranteed.
A guaranteed life insurance policy is popular because there is no requirement for you to have a physical examination. The insurer will also ask few or no questions about the status of your health when you apply for this type of policy.
Some companies may stipulate that you have a set waiting period before any monies would be paid out. For example, if the waiting period was 2 years and you die within that time, then the benefit is not paid out. If you die after the 2 year period, then the beneficiary receives the benefit in full. The majority of insurers will however, return the premium during the 2 year period if you pass on.
The premiums you pay for this type of policy may be slightly higher than that of a whole or term policy. The difference is that premiums will be returned should you pass away during the stipulated waiting period, so there is some cash returned to the beneficiary.
In conjunction with this kind of policy, your employer may have taken out a key man life insurance policy. This may be of benefit to you as if you are a key person within your company; the key man life insurance policy will pay out upon your death. The beneficiary is always the company you work for, but they may use the funds to ensure your family is taken care of financially. It may be worth enquiring with your employer if they have or would take out a key man life insurance policy for you.
No matter what type of policy you are looking for, it is important to have it all arranged before the inevitable happens. The last thing you want is for your relatives and dependents to be left struggling with finances when you pass away.
More advice and information about all types of insurance and particularly guaranteed life insurance can be found online. You will find that insurance companies and financial advisors are very knowledgeable about these products and can assist you with the easy and speedy applications process.
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The Fundamental Facts About Combined Life Insurance
October 16, 2010 by Susie Cusick
Filed under life insurance
Perhaps you have been reassessing your life insurance and feel that there is inadequate cover; if this is so, you may wish to look into combined life insurance. This kind of policy is becoming increasingly popular and is a surefire way to ensure that your life insurance contains all the necessary cover for what life can throw at you. Having been resident in many businesses for a long time, this insurance product is now making its way onto the private market.
Combined life insurance basically means that you add on extra elements to your existing life insurance cover. It could be that you want to add accidental death cover, if it is not a standard part of the cover that you already have. You may wish to have additional death benefit paid out to the beneficiary when you die, or make sure there is an element of cover should you lose your job. It is a way of ensuring that you have all of the different options that you need rolled up into one neat package.
The majority of the insurance agents will allow you to pick which features you would like to have on the combined life insurance policy. You may find that there are standard packages that are already tailored to suit you and you just need to purchase them. If you require to change any of the features in the future, then this is possible too. In essence, whatever you want to take off or add onto the combined life insurance policy is up to you.
If you have cheap whole life insurance already, you may wish to make it more effective for your needs. The combined policies are a variation of whole life and term life insurance policies; but it is not always easy to change your existing cheap whole life insurance policy into a combined one.
You need to find a combined life insurance option that has all of the best parts of a cheap whole life insurance policy and a term life insurance policy. Many people turn to variable universal life insurance products to achieve this. This options lets you change or stop your monthly premium and add new features onto the existing cover.
It is likely that you will pay more per month for this type of insurance policy; this is partly due to the fact that some of the payments you make can be used towards other investment choices. There is a bit of a risk if you opt to do this and so it is essential that you understand the implications fully before opting for this plan. Interest rates are linked to the cash value of the policy you have; this means as long as rates continue to increase, then the cash value of your policy will do so too.
Both of these options present the opportunity to make your life insurance work best for you. It is just a case of getting to know exactly what you need and what you are likely to need in the future. Insurers are keen for customers to get the best deal and the appropriate cover for their individual circumstances.
If you want to find out more about combined life insurance or variable universal insurance plans, then you can speak to an insurance expert or any insurance organization. Plenty of knowledge is available on the internet to help you get more details on these kinds of insurance products too. Before taking out a plan, it is important to make sure that you have all of the facts and are happy with what you are being offered.
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The Unique Feature Of Endowment Life Insurance
October 10, 2010 by Susie Cusick
Filed under life insurance
There are many choices when it comes to taking out life insurance; one option you may want to investigate is endowment life insurance. This type of plan is slightly special in what it offers. Whereas normal life insurance plans only offer death benefit, this plan will pay money out whether you pass away or not.
In one way, an endowment life insurance policy can be compared to a term life insurance policy. Both products have a set period of cover that can range from 10 to 30 years. The exception of the endowment insurance policy is that it will pay out a lump sum of cash whether you perish during this period or not. You can basically put money aside which will be available whether or not you outlive the length of the policy. Term life insurance differs in the fact that there is no payout when the policy expires; payments are only made should you die during the years of the policy being active.
Another advantage of an endowment life insurance plan is that you can decide to cash it in before the policy expires. This commonly means that you will receive less money than you would have done if you let it mature, but you can receive the money back at a time that you most need to use it. For instance, if you cash in a policy after 15 years and it is due to run for another five, then you are likely to receive approximately half of the total that would have been paid out at the end of the policy. The exact amount of money you receive if you cash in will depend on the arrangements you have made with the insurer.
The major drawback of this type of insurance is that you are likely to have to pay a high premium than you would with any other kind. It is possible to get around this by getting a low cost endowment policy. This does mean lower premiums; however, the amount that will be paid out will decrease over time.
As another viable option, you could opt for a return of premium insurance plan. This is a relatively new concept on the market but delivers a win-win situation for you. The plan is also for a specified amount of time and the premiums will be monthly like the other products. Should you pass away during the policy period, your named beneficiary will receive the death benefit like all the other plans.
The main difference with this policy type is that you will also receive your premiums back in full if you are still living one the policy ends. The premiums are free of income tax and so the amount you get paid will be the same amount as you paid in over the course of the plan. Return of premium policies can also be cancelled early. This will result in you getting back a partial amount of what you paid in but not all of it. The main benefit of this policy is that you are covered if you do die and covered if you don’t.
If you are looking to get lower premium quotations, then you need to know that there are a few factors that determine how much you pay. Age is a huge part when taking out in insurance. The younger you are, the more likely the premium will be minimal. This is one reason to arrange life insurance before you reach your prime. Insurers will also look at issue such as smoking. Non-smokers are generally paying 50% less on their premiums than those who choose to smoke.
Information regarding endowment life insurance and return of premium insurance can be obtained from insurance companies of a financial expert. They will be able to give you all the facts you need to find the right type of life insurance for you. Once you are ready to take out life insurance, many providers have simple and fast forms that you can fill out over the internet.
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A Comprehensive Guide To Burial Insurance
October 4, 2010 by Michael Cobbs
Filed under life insurance
Thinking about death is not a cheery prospect, but it something that must be thought about; this is why it pays to have burial insurance. This type of policy, which you may see advertized as funeral or preneed insurance, will provide a cash lump sum in the event of your death. This kind of policy should not be confused with a burial protection policy, which covers funeral expenses only.
It may surprise you, but funerals are not cheap; indeed, they are becoming more expensive each year. It is estimated that a funeral and the final expense that is associated with it, can cost as much as $10,000. Not only are there considerations such as purchasing a plot or choosing a casket, there are legal fees and outstanding debts to creditors to be paid for. By taking out burial insurance, you can receive a cash lump sum to help towards the costs of all the final expense involved when a life comes to an end.
In general, burial insurance policies are accepted from applicants who are aged between 50 and 80 years of age. There are two types of burial insurance, namely simplified and guaranteed. The guaranteed option is great for those who already have a health condition as they may not be able to qualify for a simplified policy. The regular payments will be small but there may be a specified period to wait before you can claim the funds. If the case happens that you pass away before the end of this period then the payments you have made will be refunded. If you die after the period, the policy will pay out.
A simplified policy is for those who are in good health and want to start planning for their death before it is too late. Again, you will make regular payments, but they may not be as much as those of a guaranteed policy as you have a predicted longer life span. In any case, whatever happens after the policy is taken, you will receive the funds.
Applying for burial insurance is generally an easy and speedy affair which requires you to fill in a small application form. Some of the insurers may wish to follow up the application with a telephone call but it is unlikely that you will have to answer too many health related questions unless a waiting period is likely to be enforced.
In the unfortunate scenario of you dying, the burial insurance policy will release funds to your spouse or to any children you may have. If you have stipulated that the payment be made to you children, it may be worth considering placing the policy in trust; this is because there may be issues that arise in relation to tax. It is possible to take out a joint burial insurance policy for you and your partner. It should be noted that with this option the policy will only payout once for the first death; no other payment will be made when the second person passes on.
Many burial insurance policies will ask for a set payment which will not alter through the life of the policy. Another advantage is that the benefit will not decrease during the time that you have the policy. It cannot be cancelled unless the insurance company believes there is a case of fraud or payments are being missed.
You can find out more information or set up a burial insurance policy from a financial expert who will lead you through the process. If you prefer, there are many insurers that specialize in this kind of final expense preparation on the internet.
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Joint Life Insurance Information And Tips
July 22, 2010 by Fanny Millar
Filed under life insurance
Picking up a joint life insurance policy has its merits and demerits. First thing to do if you are considering having one as a couple is for you to compare this type of policy with taking single or individual policies vis–vis your peculiar situation. In addition to this, you will equally find out that although different insurance providers offer similar packages there might just be one unique package designed for you by a particular provider.
Like most people you want a joint life insurance so you can have some sort of assurance that your family will have at least some sizable fund at their disposal when you are no longer around due to death. However, just possessing a joint life policy should not be the only thing you have as you can also set up a family trust to achieve this goal.
This type of trust can complement your joint life insurance and help in transferring your wealth to members of your family after you have passed on. Although single life policies are similar to joint life the major benefit, which this type of insurance policy provides to the insured is the fact that it is usually cheaper than two single life insurance policies put together.
Another benefit or advantage, which this type of life insurance has, is that it will provide fund to one partner at the passing on of the other. This money can then be used to carter for the needs of the family members left behind.
Two typical examples of the joint life are term and whole life. If you go for the joint term policy your premium will be less, but it also means that you will only be getting the death benefit. On the other hand, if you go for the whole life option you will get premium value in addition to the death benefit.
Alright as mentioned earlier you can also look into the option of creating a family trust to complement your joint term or whole life insurance. This trust sometimes known as living or inter vivos trust is set up while one is alive as you might have already guessed. It involves bequeathing your property to a trust created by you and held and managed by another chosen by you.
The benefit(s) of family trust include the possibility of saving money on tax payment, avoiding probate proceedings and generally protecting your asset or property from other possible financial liabilities if they were directly under your ownership since ownership as now been transferred to the trust.
Finally the major downside of a joint life insurance is the reality of what happens in case there is divorce. This is why couples may need to take single policies in addition to joint ones.
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