I recently did an investigation on the development of the 30 year term insurance plan over the years. For many years the process of purchasing a term life insurance plan meant meeting with an insurance sales agent and choosing from available policies. One of the most popular life insurance policies is the 20 year term…
There are many types of life insurance policies. Before you venture out for one, learn about them and see which one is applicable to your needs best. The following are the most common ones:
1. Term life insurance: This type of insurance is the most basic of all. Its one and only function is to cover your life with an amount of cash which on even of your death will be given to your nominee. Here the death benefit is equal to the policy limit. This is a good way to have mental peace in the conviction that you will provide for your family even in the event of death. This is good thing to have as a stand by any day.
2. Whole life insurance: This type of policy besides providing a fixed amount to your nominee on your death, it also gives you a financial gain over time as an investment would. The benefits you get out of this type of insurance is:
a. pays a fixed policy amount in event of death
b. gives you an investment amount that is free of tax
c. protects you from rising prices ? the premium is fixed for the life despite market fluctuations
d. pays dividends as any good investment plan
e. offers you freedom to sell the policy back at any given time you choose
3. Variable life insurance: This type of insurance is much more flexible than the whole life insurance. The best benefit here is the fact that it allows the policy owner to borrow against the policy maturity amount. In this way not only you are insured but you also have a very decent source of borrowing at a lower rate than the market price interest rates. The variable life insurance too offers the benefit of tax-free ash accumulation that is a great incentive for investing in insurance the world over. There is another benefit that accrues from this type of insurance, i.e. the amount that is to be paid as a benefit to the nominee of the policyholder can be varied according to the need of the beneficiary (in relation to the funds available in the account).
4. Universal life insurance: This insurance one of the most flexible of all types of insurances. It not only covers the death, but also allows you a host of other benefits:
a. As all insurance policies, it pays the beneficiary a pre-arranged amount of cash in the event of your death
b. It provides a tax-free cash investment ? which can accrue interest at market value
c. It allows complete flexibility on the premium making it easy for you to keep up with your payments even in lean times
d. At the same time this type of insurance allows amount flexibility
5. Universal variable life insurance: This is the ultimate among all the insurance policies. It allows you complete freedom on the way you invest and recover your investment. You have full control upon your cash at all times:
a. it pays the beneficiary a pre-arranged amount of cash in the event of your death
b. It provides a tax-free cash investment ? which can accrue interest at market value
c. It give you total premium flexibility
d. It allows to withdraw cash from your policy at any given time throughout your life time
e. It allows you to borrow against the maturity amount at subsidized rates of interest
f. It allows you to terminate the policy at any time, however, in that event your maturity amount will be reduced according to the time in question
Life insurance first and foremost role is to protect the near and dear ones in even of one?s death by providing an alternative source of income. Today, however there are a number of benefits added to the main role. Check out the latest developments and choose well. Get value for your money.
As there have been cases where payment protection insurance (PPI) is grossly misused, it is better to avoid it under any circumstances. While you are going for loans, make sure that you avoid any kind of PPI unless and until you are really interested to go for the same. That must be kept in mind at the outset.
What Compels One To Make PPI Claims
As payment protection insurance is meant to protect the borrower in case he meets with an accident, become jobless, or fall sick, usually it has been seen that payment protection insurance was delivered to the borrower even without his knowledge. In some extreme cases, the borrower was not aware even that he has PPI with him along with its exorbitant cost he is paying for years. Now that is where one feels cheated as far as PPI is concerned. And, it is unfortunate but true that in majority of cases the payment protection insurance was mis-sold.
Citizens Advice Bureau
It is a plain fact that PPI claims constituted the biggest financial rip-off the last decade,. According to CAB, payment protection insurance is largely serving the purposes of the other source, the lender instead of the borrower for which it was actually meant. So, it means that the theory behind PPI is right, however, the problem is primarily related to the exorbitant pricing, which is unnecessarily levied on to the borrower.
One of the best solutions to strike the best deal as far as payment protection insurance is concerned, it is getting the flexibility at the outset. It is really important to understand the significance of flexibility factor when it comes to payment protection insurance.
By the term flexibility, one must note that it is basically taking into account ones financial position that might change with the passage of time. If one is clear on this front, he reduces the payment protection insurance risk factor to a considerable amount.
Beware of Long Term Policy
As there are banks that might put an individual in a difficult position, one must be aware of the long term policy delivered by them without proper information. As there are banks that are delivering expensive PPI policies and harming the customer as a result, there is a possibility where one might get harm due to that. In some extreme cases, it has been found that it becomes very difficult to cancel the PPI policy and that is where one enters into a deep trouble.
However, most standalone PPI policy are delivered on a short term monthly basis. This pertains to the insurance cover, which is delivered as per your wish in terms of time.
Making PPI Claims
If you follow above mentioned guidelines and even then become a victim of PPI mis-selling, it is better to go for a? PPI claims in time. Going for a PPI claim will make you secure as you will not only get your hard earned money back, but will be in a position to stop paying the installments at least the moment you initiate a PPI claim case.
You finally found the right place to rent! Now you need to get a moving truck, decide how to arrange all your furniture, update friends and family with your new address; call the electric company, the phone company and your local insurance agent. Whether you rent a house an apartment or a condo you will need to purchase renters insurance. Here?s why?
If you don?t have renters insurance and another of your fellow renters lights a cigarette, falls asleep and a fire ensues destroying your clothing, furniture, electronics and other personal effects it won?t matter how you arranged the furniture. However, you will be thankful you purchased insurance. Your landlord is only responsible for the dwelling itself not your personal property within. So, while his insurance will cover the building you will not have coverage for all of your belongings without a renter?s policy.
Aside from providing protection for your personal property, renters insurance would assist you in finding alternative housing while your apartment is being repaired as well as provide coverage for additional living expenses.
Renters insurance also provides protection for theft and vandalism. Be cautious and take a close look at your policy. Most policies have limitations for jewelry, collectibles, fine arts and antiques which are attractive to burglars and you may need to purchase a Personal Articles Policy to ensure you have adequate coverage.
Liability protection is also provided through renters insurance. If someone trips and falls in your apartment and decides to sue you this coverage will help protect your assets. The medical portion of the policy will also cover for their injuries.
When you?re searching for a policy make sure it?s an HO-4. Here is a list of covered perils.
?Fire or lightning
?Windstorm or hail?Explosion
?Riot or civil commotion
?Vandalism or malicious mischief
?Damage by glass or safety-glazing material that is part of a building
?Weight of ice, snow, or sleet
?Water-related damage from home utilities
?Electrical surge damage
Now that you?re aware of why you need the coverage let?s talk about price?How much is all that coverage going to cost? Believe it or not the cost of a renter?s policy could be as little as $10 per month! That?s looking like a bargain considering the alternative. The price will ultimately depend on the amount of coverage you need and where you live. Talk with your agent and they can provide you with an inventory checklist to get started. Be sure to purchase enough personal property protection. You can always offset the price by taking a higher deductible.