LEARN INSURANCE

At the most basic level, a life insurance policy is an agreement that involves the life insurance company, the person whose life is insured, and the beneficiary or beneficiaries. This agreement makes the life insurance company to pay the agreed amount upon the death of the individual, who has the insurance, to the beneficiaries. This lessen the chances of monetary hindrance in the family of the dead.
Term life insurance is insurance for a specified period of time for a specified amount. This means that if the insured person, or policy holder, dies when the policy is in force, a specific amount is paid to the beneficiary. Such policies can be converted to permanent insurance quite easily without undergoing any medical examination.


Term life insurance quotes are typically a factor of your age and your health. Most term insurers are bound to ask if you have heart or coronary artery disease, stroke, cancer, diabetes, hepatitis, cirrhosis, emphysema or chronic lung or pulmonary disease (COLD or COPD), alcohol or drug abuse problems. They also ask if you use tobacco in any form. It is best to be honest and upfront about these as your beneficiary's claim can be rejected if it is found that you had been dishonest when purchasing the policy.
Insurance quotes and term life insurance rates are two different things. While the life insurance quote is an estimate of how much premium you will have to pay the insurance company to get a policy, the actual term life insurance rates will vary depending on what the medical examiner says about your health.
The premium can be paid in one shot or at regular intervals - monthly, quarterly, half-yearly, or annual. Please remember that the policy lapses, that is, it is no longer valid, if you forget to pay your premiums in time. The onus is on you to maintain the schedule. Most companies give a grace period in which you can revive your policy. However, there is a time interval in which you are not insured.
The premiums can also be yearly renewable or level term. The yearly renewable premiums increase with each year as you grow older. The level term premiums remain the same. The second option usually works out to be cheaper in the long term.
The sum assured is typically needed for funeral expenses, to pay off debts, to pay off mortgages, for income replacement, and taxes. Companies too can take a key man policy to insure the life of key personnel. This is typically used for business continuation, business loans, and as an employee benefit.
The sum you need to insure yourself for should take into account the cost of the final expenses, cost of repaying mortgages and debts, adjustment costs, educational expenses, supplemental income, and retirement income. These vary from person to person, though it is higher when a person starts a family or career and reduces after retirement.
Also keep in mind your family needs. Most of the insurers calculate and tell you as to how much amount should you invest in insurance. Keep assessing your family needs each year so as to ensure that your family is fully protected.
You can also know your term life insurance quotes by the online calculators. Compare and go for the least expensive.
Reputation of the insurance company is also important. Make sure that the company is reputed and trustworthy as term insurance will require a long term investment.
Its better that you do not go for an inexpensive company if you think that it might not last for long.
Term life insurance is suitable for those with a temporary need for insurance or for those who cannot afford permanent life insurance, where the premiums are higher. Insurance companies also offer many settlement options. Choose one depending on the needs of your loved ones.