Term Life Insurance Coverage Options

Often in life, people will have to select an insurance plan that will work best for them and their families, and many may consider working with term life insurance. This type of life insurance works with a fixed rate of pay over an agreed upon period of time.

This duration is often agreed upon in advance by the provider and the one purchasing the desired insurance. After the duration, under which the insurance applies, has passed the one responsible for purchasing the insurance will have the choices of reinstating the insurance, and the rates that may have applied in the initial transaction may not be available again for the renewal transaction. More often than not, this type of insurance is purchased for loved ones who are expected to pass away within a certain amount of time.

As one can expect, there are many different types of insurance that are available for purchase to the general public, each of which are meant to apply for certain personal situations over others.

  • One type of such insurance is known as level term insurance. This type of life insurance ensures that the death benefit protection will remain the same throughout the entirety of the purchased insurance’s duration. The premiums paid for such an indemnity is subject to change depending on the provider, and may be level over a certain period of time, over the entire duration, or may increase over time.
  • Another type of insurance is known as decreasing term insurance. With such a service, the amount of death protection is expected to gradually decrease over the purchased period of time; usually the premiums are expected to remain the same throughout the select duration. Additionally, one has the option of selecting annual renewable insurance, which guarantees that the amount of death benefit will stay the same for the entire duration, though the premium costs will increase every year.
  • Mortgage term life insurance will provide gradually decreasing coverage for the cost of your home’s mortgage, which for most people is the biggest investment they will make in their lifetimes.

By carefully analyzing your present and future financial situation and consulting with the loved one for whom you are purchasing this service, as well as comparing competitive term life insurance quotes, you will no doubt be able to reach and educated decision concerning your future insurance plan. Consult a good life insurance basics guide for further information.

Dental Insurance Plans to Help Senior Citizens

Senior citizens or those who have retired from their jobs due to age are provided with options when it comes to insurance plans for their dental requirements. There are several dental insurance plan options available for them.

One large association that carries this insurance for senior citizens is known as American Association of Retired Persons. This association helps seniors who belong to the group obtain discounts for every travel destination and discounts on health insurance. Continue reading “Dental Insurance Plans to Help Senior Citizens”

Burial Life Insurance For Final Expenses

The final expenses that a person is required to pay at their passing can seem somewhat ridiculous. Not only does the taxman want a share of your money when you pass, but there are a number of other people scrambling to get their share before you are completely cold. Now while final expenses are somewhat difficult for the family to swallow, they are often justifiable. It is not unreasonable for there to be costs associated with the death of a family member. Not only does it cost money to arrange the funeral, but it also costs money to bury a person. Sometimes a person’s general insurance contracts are not going to be sufficient or timely enough to help pay for the additional costs at their passing.

To help cover the cost of final expenses, an insurance product called burial life insurance was created. This is a specialty life insurance policy that’s sole intention is to help cover the funeral and burial expenses at death. While it can be offered directly from an insurance agent, it is often purchased through the funeral home in which you plan to make arrangements with.

Upon passing, the burial insurance policy is redeemable and often paid directly to the funeral home. This allows the funeral director to make all of the arrangements, and assists the family by keeping them out of the financial stresses of the funeral. The family has enough on their mind and must deal with their emotional stress without the burden of financial stress as well. The insurance policy covers the cost of the casket, funeral services, funeral director fees, burial plot, burial costs, and other final expenses associated with the passing of your loved one. At the time of the policy, you will be able to discuss the details of the coverage, and make sure that you sufficiently understand what is included in the policy.

Life Insurance Glossary of Basic Terms

Life insurance concepts and terms can be confusing! Before you decide to purchase a life insurance policy, you need to understand the definitions of a few basic terms.  Below is a short list of the most basic (and most important) life insurance terms you need to be familiar if you are planning on having any sort of conversation with a life insurance agent.

What is the Beneficiary?

The beneficiary is the person who will receive money if the insured dies.  For example, if you started a life insurance policy today, you would have to specify who you’d like the money to go to if you pass on.  If you are married, you’d most likely choose your spouse to be the beneficiary.  The beneficiary of your life insurance policy, however, doesn’t have to be your spouse.  It can be a relative or close friend.  The important thing is that you as the insured choose the beneficiary.

What is the Death Benefit?

As described in most life insurance policies, the death benefit is the money that your beneficiary will receive if you pass on.  When you started your life insurance policy, you were required to attached an amount of money to the policy.  This money is termed the death benefit.  The death benefit can range from as low as $50,000 all the way up to $5,000,000 and even more!  The most common amounts for the death benefit range between $250,000 and $2,000,000.

What is the Term?

The term is the length of time the insurance company is required to honor the policy (as long as you stay current with your payments).  Terms can range anywhere from 5 years all the way up to 20 years and longer.  The longer the term, the more expensive the insurance will be.  Also, the older the insured, the more expensive the insurance will be.  Most life insurance policies don’t have a term; term life insurance policies are the only type of life insurance that have an expiration date.

What is Cash Value?

Most life insurance policies have a cash value associated with them.  This means if, for whatever reason, an insured needs to cancel the insurance, or possibly allow it to lapse, he or she will receive some money.  The reason for this is because whole and universal life insurance policies couple as investment and savings vehicles.  They provide a lot more benefit then just insurance against death.  Payments for whole and universal policies are much larger than payments for a term life insurance policy, but with whole and universal life insurance, a portion of that money is being invested and saved for you.

What is a Rider?

A rider is a provision or addition added to the policy.  Adding children to a life insurance policy is considered a rider.  If your children die, you can receive a small amount of money if you added your children as riders onto your policy.  Riders don’t have to be children.  It is any provision that you choose to add to the policy outlining restrictions or limitations.

Important Facts about Term Life Insurance

It is very important that you have a full understanding on how term life insurance will work and it is also advised that you only acquire one when you have fully weighed out your options and you have figured out that the acquisition of this type of insurance will be the best solution available.

With coverage provided at a limited amount of time and with a fixed rate of payment for the duration of the insurance, a term life insurance might sound like a great choice especially if you want to avail a type of insurance that has pure death benefits. Additionally, it is still important that you gain additional knowledge of other important facts about this kind of insurance.

Additional important facts:

Most of the times, this type of insurance is a lot cheaper compared to permanent lifetime insurance. However, it can also become a lot more expensive in rare occasions where the insured acquires this type of insurance through annual renewable terms or ART for a long period of time.

Proof of insurability is required with the annual renewable term option. It is important that you show enough proof for insurability (i.e. no health problems, financial capabilities) so that your insurance gets renewed. Some insurance policies might offer guaranteed reinsurability. Although this makes your insurance more costly, you can use this feature to ensure that you get reinsured even if you have inadequate insurability proof.

This type of insurance is a lot cheaper than permanent insurance available nowadays. This is because it is much less likely for an insurer who has enough proof of insurability to die within a short period of time unless unlikely incidents happen.

There still are a lot of factors involved in this type of insurance and how it can affect your insurance picking decisions. In addition, being knowledgeable about these indicated facts and other life insurance basics will help you a lot in having a better understanding on how a term life insurance will benefit you.