Many people talk about life insurance and why it's important, but there are still many misunderstandings regarding life insurance policies. Many people aren't sure if they need life insurance, and if they do- how much insurance is necessary? What kind of insurance?
Who Needs Life Insurance?
First of all, most people believe life insurance is taken out to pay for the burial expenses of the policyholder. And while this may be part of the reason people obtain life insurance, this is not what the insurance coverage is intended for! Life insurance is meant to replace the income that is lost by the policyholder's death, and to be used to pay for the needs of the deceased policyholder when you are no longer earning money to do so. If you have children or relatives who depend on your income, then you should have life insurance.
For young, single individuals with no dependents, there is really no need for life insurance. If you are an older individual with retirement savings or pension, it may not be necessary to have life insurance on top of the money that would become available to your spouse from your savings and pension.
Stay at home parents might think they don't need life insurance policies as they're not earning wages, but this is not the case. Consider how much it would cost to hire people to do all of the daily tasks you do- from day care, to housekeeping to financial management to grocery shopping, errand running and cooking. If you have a special needs family member, what would it cost to have special care arranged if you were not able to do it? Life insurance for a stay at home parent would allow the family to hire people in the event of your death to continue on doing the things you were routinely doing for the family.
As the wage earner of a family, your life insurance should replace your salary, plus pay off the mortgage, college tuitions for kids, or maybe career training for a spouse who might have to re-enter the workforce upon your untimely death.
Once you've determined you should have life insurance, your next step is to figure out how much life insurance you need. Having an estimated figure in mind will make it easier to select the appropriate life insurance policy.
Life Insurance Agents
Buying life insurance is similar to buying car insurance. You work with insurance agents who will help you weigh the options and make a decision as to the type of policy you should have. When searching for life insurance agents, you will want to talk to at least three different agents in order to make sure you get a good understanding of the options available. Shopping around is important.
If at any point while talking to a life insurance agent about the different policy options you feel like they are rushing you or pressuring you to buy a larger policy than you need, or they simply aren't taking the time to explain things to you, it is in your best interest to walk away. Life insurance agents are supposed to explain the options and help you understand your own needs and how life insurance can help- then back off to let you make your own decisions pertaining to the type and amount of insurance policy you wish to carry. These are important considerations because many life insurance agents are paid on commission, so it is in their tendency to push higher priced policies on consumers.
Wednesday, March 17, 2010
Sunday, March 14, 2010
The cancer insurance bottle
When shopping for cancer insurance, there are many things that can be confusing. For example, a lot of companies quote you based on units. This quoting system is effective if you know what a unit is. But if you don't then you could find yourself confused by the process. So, what is a unit? A unit basically is how much money that can get paid out to you. When you are shopping for insurance instead of looking for units, try looking for something easier to understand, such as plans that are named, like: Basic, Enhanced, and Premier. Then, do a side-by-side comparison of the different plans to see how much each plan pays out and how much they cost. That will make it easier to know what your options are, so you can make a more informed and better decision.
Another thing to look for when you are shopping for insurance is a company that can offer you both accident insurance AND cancer insurance on ONE policy, rather than having to have two separate policies. This can be a real money-saver.
Also,be sure to look for policies that include rich wellness benefits. For example, some policies will pay for three annual tests, while others will only pay for one. What are wellness benefits you may ask...supplemental health plans usually pay you for getting your annual pap, mammogram and in some cases one more test like a chest X-Ray or an EKG. This feature, in itself, can sometimes pay for the plan by putting money back into your pocket, but not all plans are equal! Look for a cancer insurance policy that pays for more than one wellness test - you might as well go with the policy that pays for more tests, so that you can be getting the most for your money.
Next, you should look for insurance companies that have names you recognize. Some companies have been around a very long time, so their names are easily recognizable. Chances are, those companies can offer you better policies and will support their customers long after the paperwork is signed. Companies with less-known names have not been around as long and might not be able to provide you with the customer support that you may need in the future.
That brings us to our last thing to look for when purchasing or shopping for insurance. Look for a company whose agents will be with you down the road. Ask if the agent who signs you up will be the agent you will deal with in the future. If they aren't you might want to keep shopping.
Main Points:
* Less confusion when a plan is named and not explained in units
* Look for a plan that has accident coverage and critical illness - all in one policy!
* There are companies that offer more than one wellness test, in fact some offer up to three a year!
* Go with a company name you recognize
* Find an agent that will be with you after they've sold the policy!
So, when you are next shopping for supplemental cancer insurance, keep these tips in mind. They will help you to find the policy that will give you the most for your money, as well an agent that will be there for you when you need them. That is what having insurance is all about - taking the stress out of difficult times - and having a person there for you to help when you need it the most.
Another thing to look for when you are shopping for insurance is a company that can offer you both accident insurance AND cancer insurance on ONE policy, rather than having to have two separate policies. This can be a real money-saver.
Also,be sure to look for policies that include rich wellness benefits. For example, some policies will pay for three annual tests, while others will only pay for one. What are wellness benefits you may ask...supplemental health plans usually pay you for getting your annual pap, mammogram and in some cases one more test like a chest X-Ray or an EKG. This feature, in itself, can sometimes pay for the plan by putting money back into your pocket, but not all plans are equal! Look for a cancer insurance policy that pays for more than one wellness test - you might as well go with the policy that pays for more tests, so that you can be getting the most for your money.
Next, you should look for insurance companies that have names you recognize. Some companies have been around a very long time, so their names are easily recognizable. Chances are, those companies can offer you better policies and will support their customers long after the paperwork is signed. Companies with less-known names have not been around as long and might not be able to provide you with the customer support that you may need in the future.
That brings us to our last thing to look for when purchasing or shopping for insurance. Look for a company whose agents will be with you down the road. Ask if the agent who signs you up will be the agent you will deal with in the future. If they aren't you might want to keep shopping.
Main Points:
* Less confusion when a plan is named and not explained in units
* Look for a plan that has accident coverage and critical illness - all in one policy!
* There are companies that offer more than one wellness test, in fact some offer up to three a year!
* Go with a company name you recognize
* Find an agent that will be with you after they've sold the policy!
So, when you are next shopping for supplemental cancer insurance, keep these tips in mind. They will help you to find the policy that will give you the most for your money, as well an agent that will be there for you when you need them. That is what having insurance is all about - taking the stress out of difficult times - and having a person there for you to help when you need it the most.
Friday, March 5, 2010
Is Life Insurance enough??
The family "bread winner" is the person who needs to be covered by life insurance to protect his or her family from financial ruin in case they die and leave behind a large amount of debt, including the mortgage on their home. But how much is enough?
Being securely covered with a good solid term life policy will be all that is required to see that the family is financially secure when that main provider dies. Depending on the circumstances, and that will vary from family to family, is to carry enough life insurance to be able to provide at least five years worth of income plus pay off any mortgage left on the family home.
Having a million dollar policy would be nice but would also prove to be extremely expensive when paying those monthly premiums over the course of a life time. Buy what you can afford but do buy life insurance. Ask advice from an insurance counselor or expert in the insurance field regarding which type and how big the benefits should be for your particular situation.
Cost of a good term life insurance policy will be lower the younger you are when first purchasing the policy. Keep in mind that there will be fees involved and they will depend on the type of policy you choose to buy. Look for affordable life insurance through your place of employment, and expect to pay more if you are a "high risk" candidate such as a smoker, over weight, or have an occupation or hobby that falls into the dangerous or high risk category.
With the convenience of the internet you can obtain several quotes for life insurance coverage and compare what the individual providers have to offer. Then ask that counselor or expert for their opinion. It pays to shop around in order to get the most coverage for your hard earned dollars.
Choose all you must but make sure you do get yourself an insurance policy for life. It is your best bet against any unpleasant surprise that may come to your family in case of your untimely death. Consult an expert and he may be able to guide you all the way through, right from what policy to take and also which one's premiums you can realistically and comfortably afford. Research well and choose what suits you. A life insurance policy can prove to be really important.
Being securely covered with a good solid term life policy will be all that is required to see that the family is financially secure when that main provider dies. Depending on the circumstances, and that will vary from family to family, is to carry enough life insurance to be able to provide at least five years worth of income plus pay off any mortgage left on the family home.
Having a million dollar policy would be nice but would also prove to be extremely expensive when paying those monthly premiums over the course of a life time. Buy what you can afford but do buy life insurance. Ask advice from an insurance counselor or expert in the insurance field regarding which type and how big the benefits should be for your particular situation.
Cost of a good term life insurance policy will be lower the younger you are when first purchasing the policy. Keep in mind that there will be fees involved and they will depend on the type of policy you choose to buy. Look for affordable life insurance through your place of employment, and expect to pay more if you are a "high risk" candidate such as a smoker, over weight, or have an occupation or hobby that falls into the dangerous or high risk category.
With the convenience of the internet you can obtain several quotes for life insurance coverage and compare what the individual providers have to offer. Then ask that counselor or expert for their opinion. It pays to shop around in order to get the most coverage for your hard earned dollars.
Choose all you must but make sure you do get yourself an insurance policy for life. It is your best bet against any unpleasant surprise that may come to your family in case of your untimely death. Consult an expert and he may be able to guide you all the way through, right from what policy to take and also which one's premiums you can realistically and comfortably afford. Research well and choose what suits you. A life insurance policy can prove to be really important.
Subscribe to:
Posts (Atom)