life

May 23 2014

Why You Should Not Put Off Life Insurance

life_insuranceWhen is the best time to get life insurance? The answer: yesterday. Seriously, you shouldn’t wait until you’re pushing 40 to apply for insurance, because when it comes to getting insured, younger is better. Why? The older you are, the higher the rate that will be assigned to you, which means you will end up paying more. Compare life insurance deals using Compare the Market to check your options.

The peak of your youth is the best time to compare life insurance providers, because insurance companies look favourably upon those who are young and at the best of health. It may sound brutal, but that’s reality: the older you are, the closer you are to the end of your lifespan.

Apart from lower insurance rates, here are the benefits of getting life insurance ASAP:

  • Income protection – you can rely on your life insurance to have your back in case you lose your job unexpectedly and are having a difficult time getting a new one. For couples, life insurance can be used to augment the family income should one of the spouses die, so that the family will be able to maintain the same standard of living as before.
  • Mortgage protection – life insurance can be used as mortgage protection; with this, your family or those living under the same roof will be able to continue living in the same house even after your death. If you have an outstanding mortgage balance, a term life insurance can be used to pay it off.
  • College education – you may think that your children are still too young (or not even conceived yet) for you to be worrying about their life in university, but with the high cost of higher education today (and definitely in the future), you’ll do well to start investing now.
  • Easing the burden of final expenses – death is a burden, and more so if there are expenses to pay, such as medical bills, funeral expenses, and burial costs. It may sound morbid, but planning for these things can alleviate the grief and financial burden of your loved ones when your time comes.
  • Long-term investment – life insurance can also be considered as an investment; if you put in more cash, the extra amount will grow as a tax-deferred account. The money earned from the compound effect can be withdrawn, borrowed out, or used for other insurance purposes, such as paying premiums.

There are different kinds of life insurance policies – covered off in this article by CNN Money – for different needs; what may be enough for you may not be the same for others. There’s an insurance policy for everyone; policies are formed depending on an individual’s situation. Even those who have just started getting a regular wage will be able to afford a simple term insurance.

Think about this: the earlier you take out a life insurance policy, the sooner you’ll be able to secure your family’s finances. Let’s add a little dark humour to this and say that getting life insurance can be your way of telling your family you love them from the grave.

Take your time to research, shop around, and talk to financial planners for advice, but definitely don’t put off getting life insurance any more than you have to. Remember, the earlier you apply for insurance, the easier it will be for you and your loved ones in the long run. It pays to be prepared for life’s emergencies, as detailed in this guidance piece by the Australian Securities & Investments Commission.

By Jonny • Insurance, Life • 0 • Tags: , ,

May 31 2013

Top Myths About Life Insurance

life insurance mythsLife insurance is quite complex as compared to other insurance policies. This policy has numerous elements that require carefully deliberation to be able to choose the right type and coverage duration. However, most people can handle the complexities of life insurance as opposed to deciding why they need the coverage and how much. Here is a brief explanation of popular myths associated with life insurance policies and the twisted reality.

The life insurance policy you have at work is enough

If you are single and living a modest life then the employer paid coverage might be sufficient. However, if you are a family person or you need coverage to cater for your estate taxes after your death then extra coverage is very necessary in case the term policy paid for by your employer fails to meet all your needs. In addition, if you are a real estate owner, you really need builders insurance.

Life insurance cover needs to be double your annual income

The amount of coverage an individual requires is based on his or her current situation. This is dependent on many other factors. Apart from covering your medical expenses and funeral bills, outstanding debts such as mortgages and your family well being must be considered. To establish the real amount of coverage that you need, a cash flow evaluation must be undertaken. Gone are the days when a person’s income formed the basis for computing life insurance.

If you don’t have dependents, insurance coverage is not necessary

Even if you are single you need insurance to cater for your medical bills, personal debts and funeral expenses. If you are not insured, you might leave behind a legacy of accumulated debts to your executor or extended family. Having a life insurance is an ideal way for modest single people to leave a good legacy to charities or another worthy cause.

The cost of premiums is normally deductible

The cost of life policy is not deductible except when the policyholder owns a business and uses the cover as asset protection. Under such circumstances the premiums must be deductible.

Life insurance policy is only necessary for breadwinners

This is totally wrong. It is very costly to replace services previously provided by departed breadwinners. Therefore, it is sensible to insure against the loss of homemakers particularly daycare and cleaning costs.

Investing is much better than getting life coverage

Life coverage is very important regardless of the assets you posses. Depending entirely on the investment you have in your primary years is very risk particularly when you have dependents. In case you die without covering your family, they will hardly survive after your assets are depleted. Investing is not bad, but purchasing life insurance is also as important. On the other hand, you can get builders insurance when construction of your estate is underway.

It is better to buy term life policy

This is not always necessary. There is a big difference between permanent and term life cover. The term life policy might be very expensive in the coming years. Consequently, for those who want to be covered in their demise permanent coverage is the best option.

These are just but a few prevalent misconceptions relating to life insurance. The most important aspect to note is that you should budget for life insurance policy to pay off your debts and expenses after your demise. You can also consult your financial advisor or insurance provider for further clarification.

Kara is a passionate blogger and works as a provider of construction insurance policies.

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By Jonny • Insurance, Life • 0 • Tags: , , , ,

Feb 26 2013

Protect Your Business Assets with Life Insurance

As a young business person, it is likely that you have had to work harder than most people to set up your business.

With this in mind, it would make sense to not let this hard work go to waste in the event of your untimely death or critical illness.

Here are a couple of business-related insurance policies available from the likes of lifeinsurance.org.uk that you might want to consider purchasing to provide financial protection to your business partners or yourself in the event of theirs:

Business life insurance

Even as a responsible young person, it is unlikely that you have considered what will happen to your business partners in the event of your untimely death.

Protect Your BusinessWould the beneficiaries need to sell their inheritance in order to pay death duties and taxes? Would there still be a business loan to pay off? Would the business have to hire someone to your job in the event of your unfortunate absence?

Business life insurance is a great way of answering these questions before they are even asked – should the absolute worst occur, your business associates or partners will have fewer financial problems and will be able to keep the business afloat.

It is highly advisable that after to obtain your key life insurance quotes you write you obtain your business life insurance as a policy holder rather the family of those being insured. That way those left running the business upon your demise will be able to use the funds as they wish.

Key man insurance/key man life insurance

Key man life insurance is very similar to normal individual life insurance except that upon the death of the policy holder (you), the recipient will actually be your business rather than your family.

Those left running your business will then be able to source, employ and pay a replacement, to buy or sell shares or to provide extra income for your family.

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By Jonny • Insurance, Life • 1 • Tags: , , ,

Sep 10 2011

Protecting your family with life insurance


Life is very precious. You cannot replace it with any value. A family is even more important. It’s one of the biggest asset that one can have.Sad to say, life also has its own expectancy. We know very well that life has its beginning and its ending. The only thing we do not know is when, and this is one of the hardest questions to bear and to answer. Much as we want, we cannot continue to hold on life as long as want. There are so many ways when life could end, from the predictable to the unimaginable.One of the most difficult things to cope with is when the bread winner meets an untimely death. That would mean a permanent cut from the regular monthly income that he is taking home for the family. Worse, there might be existing mortgage that are still not fully settled. The family would be left with such a burden that is as painful as the departure of their loved one.

Death is one dreadful thing, but how about a sudden terminal sickness? Or how about a freak accident that leaves the breadwinner permanently disabled? The family savings could easily go down the drain as they need to spend on medicines, doctor’s fee, hospital bills, ongoing medications, and others. It could also lead to long term debt settlements. This would be likewise would be quite unbearable for the entire family.

The only reasonable thing that can be done at this point is to prepare…

Getting life insurance is the best thing that can be done to protect your family. Most people tend to shy away or hide from insurance, thinking it is additional expense. They would think that if the insurer does not get sick or die, then the insurance would have been a total waste. Plus, with so many other insurance out there like car insurance, travel insurance, property insurance, and many more, it is becoming an impractical idea to get one in the first place.

Truth is, life insurance is not as expensive as most people think, especially if one would consider the long term benefits. In fact, many people who have availed of life insurance would attest to the many cost saving experience that they have experienced because of it. It’s your guarantee that you have money to spend at the most unexpected moments. When you get hospitalized, you won’t need to shell out money from your own pocket, because, depending on the amount of coverage, your insurance will pay for it.

More importantly, when you die, you won’t leave your family in vain. Your life insurance will help ensure that life goes on for them, that there would be money to pay for their daily living. It would give you a peace of mind knowing that you will depart from this world without leaving your family helpless and despair. Life insurance is a way of preparing for the future of your family when you won’t be around anymore.

The author helps people to get affordable life insurance and educate them on different insurance policies so they can make the best decisions.

By Jonny • Health, Insurance, Life • 3 • Tags: , ,

Aug 13 2011

Critical illness insurance deals

Few people would dispute that times are tough and may remain so, so that makes a search for critical illness insurance deals all the more urgent.

Yet a slight pause may be advisable.

Critical illness insurance UK cover, may provide financial assistance at a time when you and your family are at your most vulnerable.

That is shortly after you have been diagnosed as suffering from a critical illness and are trying to cope with what that means. What it may mean for your overall health and prognosis is a matter for you, your family and your medical experts, however, it may also mean a great deal to your financial situation.

One of the sometimes unforeseen side-effects of such a diagnosis is that costs suddenly start to pile up. You may have medical expenses, additional travelling costs, specialised equipment in the home and the need for additional home assistance or child-minding etc.

None of these may be met by the state and if these costs happen to coincide with a reduction in your income (or even worse, its elimination) then you may find yourself to be struggling both in terms of your health and finances – a very dangerous combination.

That is where a substantial lump-sum critical insurance payment may come in very handy indeed.

So, searching for critical illness insurance deals may be fine – but not if it is at the expense of the quality of cover provided.

The fact is that critical illness insurance UK cover, may vary significantly between policies. It may be difficult to think of describing any of these as better or worse than others – that may depend very much upon your view of the risks you face and the cover you would find acceptable.

However, in the hopefully unlikely event you ever need to make a claim, you will presumably want the minimum of confusion and potential delays in receiving the lump-sum payment such insurance may make in order for you to concentrate on getting better, rather than worrying how you’re going to cope in a financial sense. That’s why it may be very important to be clear what your money is buying you, when you initially select your policy.

Critical illness insurance deals may one day prove to be very important to you and your closest family. It is not something that you’ll want to get wrong, so shopping around to find suitable cover may be a smart idea.

By Jonny • Health, Insurance, Life • 0 • Tags: , , , ,

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