4 Core Life Insurance Tips

In my experience, it was very overwhelming that to buy life insurance. I was so frustrated and confused. You will have to read many policies and terms. It was such as hassle. I read the paper where the terms, the policies and other things are printed and I really can’t understand what is written there. But well, finally a good news is here. These terms are now are now not very difficult to figure out once you do your little research. These tips of mine are based from my own experience. It is designed to help you create an organized approach towards investigating life insurance so that you can find the policy that you will be needing without the hassle.

Know Why You Need Life Insurance

Life insurance is a serious investment that shouldn’t be made on the spur of the moment. Don’t buy a policy just because someone says you should. Many people hear ads about life insurance so many times that they begin to feel an instinctive concern about needing life insurance. The truth is, however, not everyone needs life insurance. The purpose of life insurance is to provide financial support for your dependents if you are no longer around to do it yourself. If you don’t have any dependents, you probably don’t need to spend money on life insurance. If you are contributing significantly to the financial well-being of someone in your life, you think about protect from any financial gaps that might occur if you no longer able to provide the same support. The key is to understand why you need life insurance before you begin shopping for a policy.


Understand the Type of Policy You Need

There are two basic types of life insurance policies: life and whole life. Before, I thought that both of these are just the same, but it turns out that I don’t. Term life insurance policies last for a specified period of time. Term life is less expensive than whole life because it usually expires before the benefits are used. Whole life insurance lasts from the day you the policy until the day you die, no matter. A whole life policy is more expensive because the coverage could last a few years or several decades. Whole life policies can be borrowed against at a high interest rate, while term life policies.


Know When to Choose Term

If you are in a situation your dependents will not rely on you financially forever, your best bet is probably a term life policy. For me, as I am a parent, like all the others, I choose term life policies that are in effect until all of my children move out and become financially independent. Once my kids are out, there is no reason for me to continue paying for life insurance. My beneficiaries will rely on my contributions.


Know How Much to Buy

Understanding the potential needs of my beneficiaries can also help me decide on how much insurance I should have. I do not follow any “rule of thumb” guidelines that I may have read. My needs are specific to mine only. My decision will depend on the math. How much money do your dependents need each year and for how long? Because your children are likely different ages, that number is different for each beneficiary. Calculate the needs of each dependent annually, multiple times the number of years support is needed and then add those numbers together so all dependents have what they need.


With these core Life Insurance Tips, surely you will be able to handle and know how to calculate the Life Insurance that is best suited to your needs.

3 Tips for Buying Life Insurance for the First Time

Ever wonder what to do when buying a Life Insurance for the first time? Well, after all, buying life insurance can be very scary and especially if you don’t have anything else to do. You’ll going to see endless options when you will be able to see the insurance guide. It was such a dizzying experience especially the first time that I saw them. It was as confused as to which one I should be using.

  1. Find the right type of policy.

Many first-time buyers think that all life insurance policies are the same. I was the same, at first, I don’t really care which insurance should I avail. I just randomly choose which one I can use. Nothing could be further from the truth. The two main types of the policies are whole and term. I have also come across less common options, including universal and variable life insurance. It was so hard to decide but to be able to come up with the best option, I needed to consider them all, not just randomly.

Whole life insurance covers me until the day I die. When pass on, my beneficiary will receive my death benefit. With the term life insurance, I am only covered for a specified period of time. If I outlive a term life insurance policy, it expires and nobody will be able to receive my death benefit. At this point, I thought, I will either purchase another term policy or do without.

Before I will be able to make my decision, I needed to be able to check out their comparison of term versus whole life insurance.


  1. How much coverage do you need?

I need to consider how much coverage I needed along with the type of policy. Some experts suggest that my death benefit must be at least six to eight times my annual salary. So, if I earn $100k per year, I should have a life insurance policy worth at least $600k. While this sounds multiple of annual salary sounds good in theory, it can be difficult to stick with this formula. I needed to think through it. Do I really need this much coverage? Do I need more than this? Does it fit in with my budget?

Nobody really knows for sure how much life insurance coverage they need. Although I can use a standard multiplier as a starting point, I should discuss this with your family and financial advisor to determine the proper amount. This aspect can vary a lot based on the person’s unique situation.


  1. Which company are you going to buy from?

This is a detail that is constantly overlooked. Some consumers think that all life insurance companies are created equal. This is not the case now, and never will be in the future. Simply put, a life insurance policy is only as good as the company that you buy from. There are several agencies that rate insurance companies based on quality of investments, financial standing, and other related details. The four major rating services include: A.M. Best, Fitch, Moody’s, and Standard and Poor’s. Among other things, you will want to make sure you are not paying too much for your insurance.


With these tips, I hope that it will help you when you are buying life insurance. It was really a great help to me especially when I was buying life insurance when I was still a first timer.

What Does Your Life Insurance Cover?

There are many necessities as we live like food, water and shelter, among others. Having them, especially abundantly, can make living easier and more comfortable. Another essential is life insurance. This can work for both single and married but this is very useful for those with dependents. Being insured can benefit you and your family even after unfortunate events happens like your death.

There are two types: a whole of life policy and a term one. The difference is that term insurance only covers you when you pass away within say a 20 year term. If you die beyond that, whether it is by the 21st year or so on, your dependents will not get paid out. On the other hand, the whole of life kind will cover you any time.

In any case, you should be wary and careful in choosing the right insurance policy and company. Some have more exclusion and small prints are in policy documents. With this, it is important to really read and discuss with the insurance folks on what you want covered.

Instances of death can happen at any unexpected time. You may be driving a super car, going as fast as you can then getting in an accident. Or you may suddenly suffer from a health related sickness such as a heart attack or a stroke. Death is scary; it can come when we least expect it.

To be ready, it is really good to have life insurance. And if you want premium benefits, you will have to get ready to pay more now that you are still alive, of course. This can be quite pricey but in the end, this will be beneficial to those you leave.

Mortgage protection insurance can be covered by the insurance you get. Even as you die, your family members will not have to worry about how to pay this monthly outgoing. This also applies to your other debts like from credit cards. Getting a policy is primarily a security blanket for yourself but if you are someone who is the breadwinner of the family, an insurance that covers that of the household has become a significant safety measure. With that, you can also compensate for your dependents like for their food and utility. Bottom line is, even after your death, your family members will be taken care of.

This much coverage are pretty massive in advantages already and while you are still active and alert, you have to be prepared and capable of paying them out. Regular payment will guarantee you that you and your own folks are insured. You have to seriously check all details as you get insurance such as how much the payout will be in the end and all that. You should truly find a company that can be trusted in handling both your policy and money.

Decease is inevitable and the best you can do is to protect yourself beforehand. Again, even if your departure from this life will be unannounced, it pays to be equipped with life insurance.

7 Tips for Purchasing Life Insurance

From my own experience in the insurance industry, and knowing how representatives are trained, I wouldn’t trust many insurance sales reps either. Here are some steps you can take to ensure you get the right product for the right price:


  1. Understand your needs. No one understands your financial situation better than you. I do avoid letting someone else tell me how much protection I will be needing. I can get a rough estimate of my insurance needs by adding together my debt, estimated funeral costs, and six months to a year of income replacement.


  1. Understand term insurance versus permanent insurance. Today, a term insurance policy should be able to cover most of my debt and financial needs. In turn, I may not need to purchase a whole life policy. I just buy what I needed and make adjustments as changes become necessary. Term insurance is typically renewable and should have a convertibility clause which allows me to make changes in the future. There are certain situations where a whole life policy maybe more advantageous than term; but do not purchase it even if your sales representative told you to do so.


  1. Speak with an independent broker. These brokers will have access to many more products than just one firm can provide. When a friend of mine worked as an independent broker, he was able to offer much more to his clients than just a company product.


  1. Avoid one-meeting recommendations. If my broker makes a recommendation in the first meeting, I know that they have not really analysed my situation enough and looked for best options. So I just politely decline their suggestions and try to research other ones.


  1. Understand how the advisor gets paid. I always try to find out if they are compensated through commission, fee-plus-commission, or fee only. If there is any commission involved with the sale, I usually make sure to look at all alternative products available. With commissions, the advisor may have a conflict of interest. Just because your advisor is commission-based doesn’t mean they are bad — just ask more questions with them. My friend always worked on 100% commission, but he would give his clients several options and disclose if he got paid differently.


  1. Recognize that insurance is for protection not investing. Term insurance provides protection only, without a savings component. Whole life and universal life policies have a savings component and are much more expensive. It is almost always better off just paying for term insurance, and using the cost savings to invest elsewhere.


  1. Ask the tough questions. Don’t be afraid to ask the advisor questions. I personally should know the product inside out before buying it. Is the policy renewable and non-cancellable? How long are premiums guaranteed for? Is there an accidental death rider? What are the exclusions?


I hope these seven steps will help in your insurance planning. The basic idea is to educate yourself by doing your homework so that you can understand what you are buying.


A Short Introduction To Life Insurance

Life insurance is a great way to help protect my family from the financial worries they could face if I was no longer around. It could help with the household bills, child-care costs or covering mortgage payments.


So what is life insurance? Life insurance basically is a contract between me and an insurer. It could pay out a cash sum if I die during the length of the policy.


What type of Life Insurance Are Available?

There are many types of life insurance are available. There are different types available to suit different needs:

  • Level Term Assurance to help protect your family financially
  • Mortgage Term Assurance specifically designed to help pay off the mortgage

There is also an option to add Critical Illness Cover for an extra cost when you take out life insurance. It’s designed to pay out if you’re diagnosed one of our specified critical illnesses during the length of the policy.


I decide what type of life insurance best suits to my needs, how much is it that I want and how long I will be needing it for. For example, if I want my loved ones to be able to pay off the mortgage, I will think about the size of my mortgage and the number of years left to pay.

Please do take not and remember that life insurance is not a savings or investment plan and it has no cash value unless a valid claim is made.


How much does life insurance cost?

Our minimum premium is just £6 a month, so why not get a life insurance quote today. Of course, your own premium will depend on your needs and circumstances.


To put it simply, life insurance protects those who depend on your pay check. If I die prematurely, life insurance provides my dependents with ongoing income to replace mine, until (or unless) they can live comfortably without it. It can also provide a timely emergency fund for medical, legal, and funeral costs, should family savings not be adequate to cover them.


And that is how helpful life insurance is to me. Therefore, I created this site so that I can help people with the experiences that I have gone. I want to give advices and tips to people so that they will be able to choose the best option in their life insurance. I remember I was not that knowledgeable enough about life insurances that I was having a bad time about it. It took me quite a while to be able to notice the mistakes I made. I was not able to choose the best company that could supposedly could help me in my insurance.


It was better that I should have researched more about it and asked my friends for their advices as well as the advices of the professional. I tell you, you shouldn’t engage in getting the insurance on your own. You should have at least have knowledge about what you are going to enter into. The results of that mistake may be hard for you to correct especially concerning with legal papers.