Life Assurance Offers Many Wonderful Money Saving Plan Options
Posted by David Livingston on Saturday, September 10, 2011
Under: life insurance
Did you know that a carefully chosen life assurance policy can protect your family from all kinds of perils? Indeed, these, being insurance policies, provide death benefit on the death of the insured provided the policy has been kept valid by regular payment of premiums. On the other hand, most of these policies also include a saving plan and so if you need money in your lifetime, you can either cash out the policy or take loan from it. Earlier, all these plans were rather rigid, but today they have been made more customer-friendly by introducing degree of flexibility in them.
Moreover, the distinction between assurance and insurance policies have become blurred and so although the term life policies do not provide anything other than death benefit, many people do not hesitate to include them under the group. Anyway, the point is, there are quite a few types of assurance policies and whatever policy you choose, always endeavor to make an informed choice. Study of different types of life insurance quote can tell you a lot; at the same time, you should try to learn about different policies from other sources too. Here are some popular ones:
Whole life
Universal life
Term life
Endowment policies
These policies too can have different sub categories. As such, whole life policies are valid for the life of the insured. These policies offer a "cash value", which builds up against the face value of the policy. The policyholder has the liberty to cash out the policy after specified years, but upon the death of the insured, the "cash value" is surrendered to the insurer and the beneficiary receives only the face value as death benefit. However, if you default on premium payment, you will lose the coverage.
The universal life insurance policies too are cash value policies valid for the life of the insured. Just as whole life, such policies too divert a part of the paid premium into a separate account for build up of the cash value. Since such policies require complicated accounting, the administrative cost is also on the higher side. Because they provide dual benefits, the rates for both whole and universal life are high. However, unlike a whole life policy, the universal life insurance policies offer greater flexibility in premium payment mode and hence they are more popular.
The next type of life assurance policy is term life insurance that has a fixed period starting from 1 year to 30 years. A person can make a choice as to what time frame to choose depending on future requirements. For example, if your child goes to college in 10 years and you need the money for tuition fees, then you can take a term life policy for 10 years and if you die in within that period, your beneficiaries [in this case your child] will receive that amount and can use it for his or her college tuition. If on the other hand, you outlive the policy, your family will not get anything.
Since this will result in a loss to the insured person, insurance companies have introduced options like renewing the policy or converting it to whole life upon the original term expiring. The last type of life assurance policy is the endowment policy that works as a savings plan. This can be taken for different periods 10 to 25 years and during this time, you pay fixed amounts at regular intervals. Once the term is over, you receive a lump sum amount. Endowment policies are linked to a death cover - if you die within the policy term, you can still receive some of the coverage amount.
Although people generally buy endowment policies for building up their assets, these too are linked with death benefit. However, how much return you are going to receive depends upon the market condition at the time of endowment. In addition, you should know that all cash value policies are of two basic types participating and non-participating. The return in the first category depends entirely on the company's performance in the market while in the later some return is always assured. It is up to you to decide, which one you are going to buy.
Before I conclude, let me add a few lines about no medical exam life insurance. These are term life policies, but with a difference. Unlike other traditional insurance plans, these policies do not subject you to any medical examination. If you want a hassle free purchase procedure, you should opt for these. You only need to fill up an online form submit it with a click of the mouse; if you qualify, you will start getting the coverage from the next day only. However, for such a privilege, you will have to pay at a higher rate. Now, it is upto you to choose the policy you think will be most suitable for you.
Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on life insurance term life and universal life insurance, visit his site today.
Moreover, the distinction between assurance and insurance policies have become blurred and so although the term life policies do not provide anything other than death benefit, many people do not hesitate to include them under the group. Anyway, the point is, there are quite a few types of assurance policies and whatever policy you choose, always endeavor to make an informed choice. Study of different types of life insurance quote can tell you a lot; at the same time, you should try to learn about different policies from other sources too. Here are some popular ones:
Whole life
Universal life
Term life
Endowment policies
These policies too can have different sub categories. As such, whole life policies are valid for the life of the insured. These policies offer a "cash value", which builds up against the face value of the policy. The policyholder has the liberty to cash out the policy after specified years, but upon the death of the insured, the "cash value" is surrendered to the insurer and the beneficiary receives only the face value as death benefit. However, if you default on premium payment, you will lose the coverage.
The universal life insurance policies too are cash value policies valid for the life of the insured. Just as whole life, such policies too divert a part of the paid premium into a separate account for build up of the cash value. Since such policies require complicated accounting, the administrative cost is also on the higher side. Because they provide dual benefits, the rates for both whole and universal life are high. However, unlike a whole life policy, the universal life insurance policies offer greater flexibility in premium payment mode and hence they are more popular.
The next type of life assurance policy is term life insurance that has a fixed period starting from 1 year to 30 years. A person can make a choice as to what time frame to choose depending on future requirements. For example, if your child goes to college in 10 years and you need the money for tuition fees, then you can take a term life policy for 10 years and if you die in within that period, your beneficiaries [in this case your child] will receive that amount and can use it for his or her college tuition. If on the other hand, you outlive the policy, your family will not get anything.
Since this will result in a loss to the insured person, insurance companies have introduced options like renewing the policy or converting it to whole life upon the original term expiring. The last type of life assurance policy is the endowment policy that works as a savings plan. This can be taken for different periods 10 to 25 years and during this time, you pay fixed amounts at regular intervals. Once the term is over, you receive a lump sum amount. Endowment policies are linked to a death cover - if you die within the policy term, you can still receive some of the coverage amount.
Although people generally buy endowment policies for building up their assets, these too are linked with death benefit. However, how much return you are going to receive depends upon the market condition at the time of endowment. In addition, you should know that all cash value policies are of two basic types participating and non-participating. The return in the first category depends entirely on the company's performance in the market while in the later some return is always assured. It is up to you to decide, which one you are going to buy.
Before I conclude, let me add a few lines about no medical exam life insurance. These are term life policies, but with a difference. Unlike other traditional insurance plans, these policies do not subject you to any medical examination. If you want a hassle free purchase procedure, you should opt for these. You only need to fill up an online form submit it with a click of the mouse; if you qualify, you will start getting the coverage from the next day only. However, for such a privilege, you will have to pay at a higher rate. Now, it is upto you to choose the policy you think will be most suitable for you.
Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on life insurance term life and universal life insurance, visit his site today.
In : life insurance