Determine your need for life insurance. The amount of life insurance sufficient for a person is determined by the circumstances pertaining to every individual. Married people with dependents have lot many things to take care of even after they die. Remember that on your death, your family will not only loose the emotional support that they had from you but also the financial support that you were giving them. So there must be something to compensate for that loss of income.
There are various forms of life insurance plans available. The insurance market is flooded with countless insurance products that are available for different needs. Whole Life and Term are the two most common types of life insurance available .
Whole life insurance provides coverage to a person for his or her entire life rather than an assigned period of time. This insurance is one means of accumulating wealth as there is a saving component in the insurance known as loan or cash value, which builds over a period of time. It is one of the basic type of insurance coverage. The applicant has considerable liberty in deciding the terms and features of the policy. The premium paid by the person is divided into two components; one provides the insurance whereas the other accrues in the savings account. The policy carries a fixed benefit that is given on the death of the person along with the amount that has added up in the savings account.
The premium associated with the policy remains fixed throughout the term of the policy but there can be some variation between the savings and insurance over a period of time. A small portion of the premium goes towards fees of the management. The insurance company invests our money mainly in fixed-income securities, which means savings is affected by the inflation risk and interest rate.
Seniors will find it easy to understand term life insurance. A prospective applicant has the option to purchase term life insurance for a period of ten to twenty years, or can opt for a period that can last till the age of seventy of later. There is also an option for annual renewable term wherein the premium for the insurance every year or can choose a fixed premium policy.
Majority of the insurance coverage have the feature of payment schedule at the current rate and a maximum rate that is given every year. In some cases the insurance company reserves the right to increase the premium in case there is an increase in the cost to the company. In order to avail lower premiums the insured person is required to give a proof of his or her good health at the time of re-entry. There is also an option to convert long term insurance to permanent ones and the person is not required to give evidence of his or her health.
Compare the various life insurance companies. There are many companies selling life insurance for different prices. The life insurance policy that is most "cheap" on term life insurance is usually the best on term life insurance. Let us shop for you. We represent hundreds of Medicare companies that want your business. Let the life insurance company offer you a really good price.
A financially sound company with high ratings are a dime a dozen in life insurance. But pay attention to rules and regulations that will affect the premiums at the time of renewal or with age.