Posts tagged Policies

“Que Sara Sara… Whatever will be, will be… the life not for us to see…” was a song we often heard and appreciated. It gave us the license to be reckless, but then we were young. Now, that we are older, we look at it from a different perspective. Yes, whatever will be, will be, but we need to be prepared for any eventuality. Although life is not for us to see, we can get a glimpse of it through other people’s life and prepare ourselves for every possibility. There is different mechanism in life insurance. We would die because death is certain. But we don’t know about time of our death as it is uncertain. One can die in early age and may survive up to hundred years. But possibility of surviving for such years is a distant dream in urban lifestyle where hectic schedules, unhealthy and polluted living condition are common. People suffer from cardiac problem in early age before crossing forty which was prerogative of older people earlier. Get better life coverage before turning thirty-five. If you buy term policies at this age your term life insurance quotes would be affordable. Making false presumption that you can’t afford life insurance policy is vague idea. Affording term life insurance is easy. It is certain if buying it in young age and enjoying healthy life minus tobacco consuming and maintaining body. Tobacco addiction in any form leads to making term life insurance quotes costlier. Same thing is applicable for obesity hence maintain body weight in proportion to height. Quit smoking; smoking or taking tobacco in any form is not only bad for your health, but is also bad for your pocket. Quit smoking for a year at least before you can expect lower term life insurance quotes. Meanwhile stay covered by annual renewable term and if all these seem Greek to you, let me tell you a little about the different types of life insurance policies. That life insurance is a contract between the insured and insurer whereby the insurer promises to pay the face value of the policy as death benefit on regular payment of premium is something one does not need to elaborate. Most importantly various insurance policies are available nowadays. Few insurance policies come with cheap life insurance rates. They are so cheap that affording them is not big deal for people having too many family members and least source of income. Some policies are expensive which can’t be afforded by most people. Purpose of these expensive policies is to make some investment which come with death benefit features too when policyholder dies once policy remains in force. Your premium is divided into two portions for dual benefit. One portion is invested in investment account and second is fixed for insurance purpose. It is the reason that you are asked to pay higher rate when willing to have same benefit in these policies with additional features. You get insurance cover and other options. Even investment policies have several variations. Few policies like whole life insurance offer cheap life insurance rates but universal or variable life insurance policies have higher rates. Policies with cheapest rates are term life insurance as they are pure life insurance option minus other advantages like investment option. You keep paying premiums which are used for death benefit you buy rather than having anything else. Interestingly you get higher death benefit by paying least premiums. Some people, however, don’t like to buy term life insurance policies. Such policies are valid for certain term period only that too when policyholder dies in that term. Beneficiaries are offered benefits in above mentioned conditions. These policies don’t have cash value hence if one outlives that term no benefit is given. According to experts this weakness of term policies is its strength. How is it justified? Have a look on their arguments below: • There is no denying of fact that term policies are valid for particular term only unlike investment policies which cover whole life. But experts opine that there is no need to get life insurance for whole life as you keep paying for something which you actually don’t require. Buy life overage for thirty years which is sufficient because this much time is enough to settle down liabilities. • The fact is true that there is no cash value in term policies. But when you look for cash value of investment policy you are literally uncovered from life coverage once surrender policies for such purpose. In case your aim is to get insured then definitely buy term policies coming in cheap life insurance rates. Make investment prudently and strengthen capital accordingly. • For time being your decision to buy annual renewable rate may remain cheap. But it is better to have such policies with level term life policy. Take chance and buy policies for so many years you desire under level rate option.