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Life Insurance on 04 28th, 2010 |
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Insurances are designed to protect you from the unknowns and the financial implications following them. There are many types of insurance, and one of the most important ones is life insurance.
Life insurance basically provides financial support for your dependants after your death – Nobody wants to die, but when it happens, your dependants are well taken care of.
Now, how much insurance a person need? The answer is: it depends on various issues, such as lifestyle, spending habits, source of income, the number of dependant, etc. As a rule of thumb, an insurance agent would recommend you to take insurance for the amount of five to ten times your annual income.
Here are some reasons why you need consider taking life insurance:
1. Well-planned life insurance will cover dependants when you leave and serve as a reserve for rainy days.
2. Life insurance secures your estate on death through the provision of tax free cash that can be used to pay estate and death expenses.
3. Some life insurance plans offer savings or pension plans to provide you during your retirement.
4. Some policies have “joint” or “rider” coverage, such as critical illness or term insurance plan for your spouse or children.
5. A valid insurance policy is considered as a financial asset – this can improve your credit rating, which is beneficial when you are considering taking health insurance, home loan, or business loan.
6. If you are experiencing personal bankruptcy, the cash value and death benefits of your life insurance policy is exempt from your creditors.
7. Your insurance can be arranged in such a way that it will include your funeral expenses.
8. Term life insurance is better in some cases – it can protect you and you can get your money back when you are in times of need.
9. Insurance protects your business from any liabilities in case of a business partner’s death.
10. Life insurance helps your dependants to maintain the standard of living.
Posted by Insurance Fundamental on 04 15th, 2010
There are ways to cut your insurance costs while getting the necessary insurance coverage you need. Here are some ideas to help you cut insurance costs and start save some money:
1. Get quotes from many insurance companies
The quotes will help you compare and decide which insurance plan is the most appropriate for your financial situation. As insurance companies are competing for your money, you...
Posted by Insurance Fundamental on 04 5th, 2010
If you are a credit card holder, you might not aware of the insurance offered by your credit card issuer. The insurance offered is called purchase protection insurance (PPI.) Many credit card issuers offer PPI for free, while some others will charge you an additional fee to be covered. PPI’s terms and conditions vary from one credit card company to another.
How purchase protection works?
Whenever...
Posted by Insurance Fundamental on 03 25th, 2010
With the recent earthquakes happening all around the world, it is a wise decision if we prepare well to against any force majeur (e.g. natural disasters.)
Over the years, the insurance industry has expanded to cover almost any thinkable disasters commonly occur in human’s life. In term of disaster insurance, earthquake insurance is one of such policies covering us from losses incurred due to...
Posted by Insurance Fundamental on 03 15th, 2010
Dental care treatment is expensive. Added to that fact, the costs are increasing every year, causing an added pressure on your personal finances. This is a major reason why having dental insurance is important and a smart move on your finances.
What’s more, many companies do offer their employees medical coverage, but not dental insurance. If you are one of them, you might want to start shopping...
Posted by Insurance Fundamental on 03 6th, 2010
Pet insurance is not only important for your pets, but also important for you, the pets owner. Here are a thing or two you need to know on how or why you insure your pets.
What is pet insurance?
Pet insurance basically covers veterinary costs when your pet is in need for care. Some insurance policies are also paying a certain amount of money if you pet stolen, lost or dies.
Insurance companies offering...
Posted by Insurance Fundamental on 01 25th, 2010
Disability is a policy meant for the self-employed, temporary employees. It is income paid weekly or monthly when one cannot work because of sickness or injury. Workers covered under disability insurance policies must prove that they cannot perform the majority of their present duties to qualify for entire disability status. The disability insurance policy states the terms of disability, policy tenure,...
Posted by Insurance Fundamental on 01 18th, 2010
Insurance acts as a defensive measure one can use against future losses. Insurance can be used to guards against conditional losses, to evade the possible risks of the future. It is a legal contract protecting a person from financial losses and provides a mean for individuals and societies to handle some of the risks faced in daily life.
To get secure there are various types of insurances offered by...
Posted by Insurance Fundamental on 01 10th, 2010
In recent times the argument about health care has intensified, died down and is still being argued. The most important things people should be talking about is how the health insurance affects them trickling down to the insurance business. If people are affected negatively it spells doom for the insurance business and vice versa. Here are some of the issues people should look at and how it influences...
Posted by Insurance Fundamental on 01 3rd, 2010
Private mortgage insurance is a type of insurance that new homeowners are expected to buy. This comes into being especially if the initial deposit is twenty percent or less of the value or sale price of the property.
The main purpose behind this mortgage insurance is to protect the lenders or financial institutions in a situation that the homeowners default. Some have given it a bad reputation by...
Posted by Insurance Fundamental on 12 22nd, 2009
Life insurance policy is the most important policy for all. In the recent years, there is an emergence of many life insurance companies with various innovative plans that promote life insurance policies on a rapid pace.
About Life Insurance
Life insurance is a contract between the policy holder and owner for an agreed sum. Â This agreed sum would be paid to the owner of life insurance policy in the...