Term Life Insurance Facts
March 30, 2009 by · Leave a Comment
In general Term Life insurance is the most inexpensive type of life insurance coverage available and usually offers the largest coverage amount for the premium cost. It is designed to provide coverage for a specific period of time and usually has a coverage period of 5-30 years. Guaranteed level term life insurance, which is the most common type of coverage, provides a guaranteed level death benefit along with a guaranteed level premium cost.
An individual’s need for coverage usually dictates the period of coverage chosen. The death benefit chosen is usually determined by financial obligations like a home mortgage or need for future funds in the event of death. Examples of future needs would be replacement of future income or college education needs. In the event of the death of the insured individual the beneficiary would receive the death benefit (insurance coverage amount). In addition, most term life insurance plans have many optional benefits available like money back riders (Return of Premium), spouse and child riders, and accelerated death benefit riders.
Perhaps one of the greatest values in life insurance today is the Return of Premium rider will provide a guaranteed refund all of the premiums you have paid on your term policy plus any optional riders, minus any benefits that may have been paid during the policy period. If no benefits have been paid during the policy period, you will receive a full refund of all premiums you have paid at the end of the policy term, Guaranteed. If the policy is canceled before the initial term period the refund will be prorated based on the length of time the policy has been in force. Generally a detailed prorated schedule is included in all policies.
Most Financial Advisers recommend at least 10 times your annual income for your life insurance coverage. In addition, if you have financial or business obligations, dependents, or anticipated future needs the amount may be as high 20 times your annual income
Choosing a level term period is an individual choice, although depending on somebody’s age, some level term periods may or may not be available. The factors involved in choosing a term period are as follows: how long is the coverage needed? Is there a possibility that the coverage will be needed longer than you think today? Many people feel that currently coverage is needed for a certain amount of time. However, future needs are often hard to foresee.
We recommend choosing a level term period that makes sense now, but in the future. If you are unsure if your needs will change, we may suggest a longer-term period. In addition, a longer level term period may have a minimal increased cost, making the longer period more attractive for a fractional difference in cost. An example might be, you think you may only need a 20-year level term, but a 30-year term is only a few dollars more per month.
Compare Car Insurance But How Much Is Enough
March 8, 2009 by · Leave a Comment
It is smart to look for an online car insurance quote. The more you compare car insurance rates from one company to another, the better. Once you find one online car insurance quote don’t stop looking- keep looking for more. Aim for at least three to five quotes before you start narrowing down your list.
If you take the time to carefully compare Florida car insurance rates for example , you will quickly discover that rates are high due to such things as lower returns on investments and an increase in the risks to insurance companies. This is as true in the United States as it is in neighboring Canada.
Your premiums will go up if you have had an accident but sadly they will probably still go up even if you have not. This is why searching for online car insurance quotes are essential to finding good rates.
While comparing car insurance is important, it is also essential that you consider the terms of each online car insurance quote, as well as the details of the coverage. There might be savings that await you if you look close enough.
One of the biggest mistakes that many consumers make when they shop for car insurance is to buy too much and over protect themselves. This means that they are spending money needlessly on aspects of an insurance policy that they do not (or probably will never) need.
Bear in mind the purpose behind insurance. It is a tool that is meant to be there to protect you against major losses as opposed to minor losses. Think about it carefully as you compare car insurance policies. There are losses of $300 to $400 and then there are losses of $2,000 to $3,000 or more. Which is major and which is minor?
If your claim history is excellent (in other words you have had few if any claims over the years that you have been a licensed driver) and you choose to put your money toward every potential loss no matter how large or small, then you are most likely paying money out for no good reason.
As you search for an online car insurance quote bear these things in mind. Do not throw your money away. Consider your deductibles as you compare car policies. What is yours- $100? $200 $300? Ask an insurance agent who works for a company you are considering how much the premium would be if the deductible was $500. You might discover that there is savings in raising your deductible.
Always look for affordable car insurance that is appropriate for your needs. For example, if you do not drive your car to work then this will bring down your rates. Make sure this is noted in the insurance contract. Another excellent idea is to buy a car alarm system. Buying a car alarm system that is of good quality will not only help protect your vehicle from getting broken into but it should also help lower the amount of insurance dollars you pay.
