Choosing The Right Life Insurance Policy
Life insurance is an agreement that is made between the insured and the insurance company
. The insurer is usually the policy owner, but not necessarily so in all cases. The insured, however, can be someone else. For example, a spouse can take out life insurance for another spouse or a mother can take out life insurance for a daughter. The daughter in the latter case would be the insured policy owner, but the mother would pay the premiums. The insurer or policy owner must come to the decision to pay the insurance agency a monthly fee to be able to benefit from cash proceedings upon the maturity of the policy or in the case of death, the family will benefit. This policy is considered by law as being a legal document and the terms and conditions have to be respected by both the insured and the insurer. The monthly premium for the insurance policy is set at the beginning and some people will even choose to pay their premium on a quarterly and annual basis. The person who pays the premium is the person who maintains the policy so that it is up to date.If the insured individual and the policy owner are different, the insurance agency limits the amount of insurance that can be purchased. This prevents people from unfairly receiving benefits from the policy especially when they took out the insurance with the hope that they will receive cash when that person dies. In the initial purchase of the insurance, the insurance company will specifically indicate the limitations for the benefits upon death of that person.
There are certain cases where the limitations take precedence such as when a suicide takes place, a suspicious death, during war, terrorism, and fraudulent occurrences. An investigation will always be done by the insurance agency when things such as fraud and suspicious death take place. These are not considered a liability by the insurance agency. A beneficiary can put in a claim for receiving benefits if someone dies due to terminal illnesses and death caused by old age.
People commonly buy insurance for protection and for investment. A term insurance is generally used for protection and a ULIP is used for investment reasons. An insurance policy offers protection to an individual in the form of financial security when someone is removed from a household due to death and was either one of the prime breadwinner or assisted with the living expenses of the family.
When you pay the premiums on your life insurance, you can claim it on your tax returns as a benefit for a refund. So it offers the individual a chance to save on their earnings. There are various life insurance products that you can choose from. Some are universal life insurance, whole life insurance, limited and accidental death insurance as well as endowments. It may take some discussion with your family members so it is obvious that you have to take your time in making the right decision. Forget about getting some cheap quotes on the Internet. Use a reputable insurance company that will provide an agent to guide you through the decision making process.
If you are looking for supplemental life insurance, temporary life insurance or permanent life insurance coverage, you have to choose from multitude of products.
If you are looking for flexibility, then the universal life insurance coverage would be ideal for you. You will be able to pick a premium that is flexible to pay. Whole life insurance, on the other hand, has been the most preferable of all of the products listed here. It has a premium that is fixed and assured with cash values and death benefits connected to it. The universal life insurance does have flexible premiums, but the whole life insurance is guaranteed.
Cash values built into the insurance policy is what endowments are. These are generally more costly and are disbursed after a specific time period whether the person dies or is still alive.
The limited pay life insurance is one that is extended until the person is 65 years of age and is more permanent. The accidental death life insurance is primarily for when someone dies. The rates are much cheaper in comparison to other types of life insurance policies.
If you were to choose, you could consider selecting one that is guaranteed and at the same time have a reasonable premium and a good possibility for an increased cash value. Whichever life insurance you choose, make sure you do what is right for you and your family. For more information please Visit: www.lifeinsure.com
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