While many adults have already purchased life insurance because of the incredible benefits that it can provide, many others have not yet explored coverage options or made a purchase.
The reality is that some people simply do not see the need for it, or they may not believe that the regular premium expense is worth the benefits that it can provide. Not everyone needs to or should buy life insurance, but it is a sound investment for many people.
When you understand the many reasons why others buy life insurance, you may be able to determine if this is an investment that you should purchase.
Understand the Types of Coverage Available
Before learning about the benefits of life insurance, you need to understand more about the two primary types of coverage. The first type of life insurance is term coverage, and common term lengths range between 15 and 30 years. At the end of the term length, the coverage ceases.
The second type of coverage is universal or cash value life insurance. This type of insurance offers the same death benefits as term life insurance, and it also can accumulate cash value over time. Typically, universal or cash value life insurance has a higher premium amount than term coverage, and the coverage does not have a fixed term length. Coverage can extend for the insured’s entire life.
Examine the Benefits of Life Insurance
Both of the primary types of life insurance provide beneficiaries with death benefits. Death benefits could help survivors avoid having to take out an emergency loan to pay for funeral expenses and other related end-of-life expenses. In addition, the death benefits can also be used to supplement income that the deceased provided to the family in his or her living years. Death benefits are commonly used to pay off debts, to pay for a surviving child’s college education and more.
A universal or cash value policy offers these same benefits, but it also has the additional benefit of being a true cash asset. You may be able to borrow against the cash value or even to retire the policy when it is no longer needed to access the cash value component.
Determine Your Coverage Needs
Because not every individual may need to buy coverage, it is important to determine what your unique needs are. Consider if you have survivors who may be negatively impacted on a financial level by your death. These may be individuals who are financially dependent on you in various ways. You may also consider if you have debts or if a surviving spouse may have retirement plans thwarted if you pass away.
On the other hand, some people are financially independent. They may have minimal debts, if any. They may also not have dependents. In these situations, life insurance may not be necessary.
If you plan to purchase life insurance, spend time learning more about the differences between these two types of coverage. Then, speak with a life insurance representative to estimate the amount of coverage that you need. Some people will purchase smaller universal and term policies rather than a single large policy to take advantage of the benefits that both insurance types can provide. You also need to determine the term length that is most ideal for your needs if you plan to buy term coverage.
Life Insurance: A Career Defining Decision
It is an important decision to buy life insurance for yourself and your family members. No matter how much you earn, you never know what happens to you in the future. Many people die prematurely due to illness or accident. Now, if he is the bread earner of his family, then the family has to go through some devastating consequences, as they cannot continue to live the same life.
But you can save your family from all these financial troubles and also you can protect the future of your loved ones if you buy a life insurance policy. Being alive also you can experience the benefits of your insurance policy, let’s look into the benefits:-
- Protect the loved ones even after your death:-This is the most vital benefit of buying a life insurance policy which everyone needs to focus on. Even when you will be gone, your importance to your family members won’t reduce, most importantly if you are the bread earner for them. You can save the lives and can make them financially strong who depend on you like- your spouse’s financial security or your child’s education.
- Debt:-Nobody wants to put the burden of any kind of financial liabilities especially during any sort of crisis. If you buy the right insurance policy then it will take care of your debts like- personal loan, auto loan, home loan etc.
- Long-term goals are achieved:-Since an insurance policy keeps you invested for a long time, it helps you to achieve your long cherished goals like buying a house or planning for retirement. Different types of policies offer different opportunities for
- Retirement Goals are supplemented:-with the best life insurance policy in India, you can get relief from the anxiety about your financial status after you retire. With the correct insurance plan, you can have a stream of income on a regular basis every month. After retirement, if you want to enjoy a steady income then put your money in a life insurance product.
- Buy insurance at a cheap rate when you are young: –The coverage costs of the insurance is usually cheaper when you are young and single. Consider how much assets you may own in future and how many dependents can be there in future approximately and choose the insurance accordingly. The sooner you buy it, the cheaper it will be.
- They take care of your business:-If you are wise enough to select the insurance policy then it may take care of your business too. If you are the owner of your business, then your business partner can buy the portion of yours easily. Your partner can enter into an agreement known as buy-sell agreement and the partner’s nominee will get the pay-out. But they won’t be given any stake in the company.
- Tax is saved:-Any type of insurance policy is exempted from tax. The premium that you need to pay for the policy or the money you get at the time of maturity can get you great benefits.
Buying life insurance makes you feel secure and relaxed. Though it cannot take away the uncertainty of life, suitable life insurance does prove to be a good support that helps you to handle different financial challenges if needed. And, it’s never late to buy life insurance; however, if you are young, you are in an advantageous position.
Benefits Of Life Insurance
You can’t plan for every eventuality in life, but you can definitely try! Our financial state isn’t something we have to worry about in life – it’s also a concern in death.
In order to protect our families and loved ones from damage, a life insurance policy is all but a requirement. If you’re still on the fence, here are several reasons why taking the plunge would be a good idea.
#1 You can make a charitable donation
If you have continually supported a particular charity throughout your life, that doesn’t have to stop upon your death. In fact, it can carry on as before! Life insurance allows you to donate a chunk of your savings to any given charity.
#2 It’s generally a cheap monthly payment
Life insurance isn’t really that cheap, either. There are a ton of places to get quotes, such as Gocompare.com, and you’ll be surprised at the cost. Plus, unlike some savings accounts, there are no additional fees for saving.
#3 Protects anyone who relies on you financially
Whether you’re a single parent or a nuclear family, there is bound to be someone who depends on you financially. Life insurance helps them stay on their feet if you pass away suddenly, and lets them carry on their lives in as normal a fashion as possible.
#4 Pay off the mortgage
Mortgages aren’t cheap – that goes without saying. If you still have an unpaid mortgage at the time of your death, your life insurance policy prevents your family from having to deal with it alone. They will be stress free, and your policy will have paid off.
#5 Covers funeral costs
Funerals aren’t cheap! Far from it. Your family may want to give you a proper, hearty send-off, but financial limitations can hold this back. Luckily, you invested in a life insurance policy, and the hefty sum that it takes to produce a decent funeral can be covered.
#6 Tax free benefits
Your personal life insurance policy provides a tax free sum to your chosen beneficiaries upon your death. This is unlike other savings methods that may charge a certain amount of tax.
#7 Shields you from rising healthcare costs
The costs of healthcare, around the globe, are on the rise. If you become ill and you aren’t covered, you may struggle to get help financially. However, if you have a life insurance policy in place, you don’t have to fret; you’ll be covered!
#8 Retirement planning
The worst thing about retirement is how quickly it halts your income. It can be tough to go from a full salary to a small savings pot, but life insurance can give you that boost you may need. There’s plenty of information on how to plan for a good retirement, such as content.time.com, and every source agrees on this one thing, life insurance helps.
#9 Your family won’t have to sell the home if you die
If you die without life insurance, your family and loved ones may have to sell the family home to make ends meet. They might even have to sell other valuable items, such as family heirlooms. Life insurance protects your family from having to part with things they’d rather keep.
#10 Clear your debts
Whether it’s credit card debt or loan, your loved ones won’t have to worry about paying them themselves. Your policy will more than make up for any debts that you may have incurred.
Is Life Insurance Without A Medical Exam Right For You?
There are a number of reasons why many people do not want to go through a medical examination when purchasing life insurance. Many people can find the examination too invasive and others may not be able to find the time to go to a doctor’s office due to a very busy schedule. As well, a lot of people get anxious about needles for blood collection. If you are one of the many Canadians who do not want to get a medical exam for life insurance, there is a great life insurance option available – no medical life insurance, or life insurance without a medical exam.
No Medical Life Insurance Definition
Insurance without a medical exam is the simplest life insurance on the insurance market to cover final expenses and other needs. No medical life insurance is life insurance that you buy which does not require a medical exam or blood test. This type of insurance is designed for people who have a hard time obtaining life insurance due to such factors as age and health condition, as well as for people who, for whatever reason, do not want to get a medical exam.
Health History
Although no medical life insurance policies do not require a medical exam, your health history will still be relevant to your insurance application process There will often be some questions to answer such as: age, location, history, past health, occupation, gender, etc. Applying online involves a filling out a simple and brief form.
While there are insurance providers that price males and females and smokers and non-smokers at the same rate, there are insurance providers that distinguish between male and female rates and between smoker and non-smoker rates. If you are a non-smoker, it is important to inform the insurance company to make sure you do not pay higher premiums.
No Exam Life Insurance Benefits
One important benefit of getting no exam life insurance is how fast you can get approved for a policy. This is because you avoid the delays resulting from scheduling medical exam and for the medical documents to be submitted. Sometimes, it can be as little as 10 minutes for approval or just a couple of days. As well, you can pay your premiums electronically. And in case of accidental death, benefits can often increase in a range of 2 times to 5 times.
What Type Of Policy Is Best For You?
With no medical life insurance, you will receive continuous coverage for life. You just have to maintain your premium payments. You can chose from various types of no exam policies with different levels of coverage. Guaranteed acceptance life insurance is designed for people up to the age of 80 years. Coverage amounts can vary from – $3,500, $5,000, $10,000, $15,000, $20,000 and $25,000.
No Medical Whole Life Insurance plans provide coverage for your entire life. Whole life insurance does not expire or change at various points in your life. No Medical Term Life Insurance policies are the least expensive of the no medical coverage’s and lasts for a specified period of time. When comparing no medical exam life insurance policies, you should compare features, premiums, and the required medical questions.
No Medical Life Insurance – Peace Of Mind
If you have been’ turned down before, you are hard to insure, you are overweight, you smoke, or you don’t want to get a medical exam, life insurance without a medical exam may be right for you. At Nomedicallifeinsurance.ca It is a great way to protect your family members and pay for funeral expenses. It does not matter what your current state of health is, or if you have a medical condition, you will not be turned down.
When Should You Buy Life Insurance?
We all want to protect our families in case the worst should happen. When we are young, free, and single, life insurance may not be at the top of our list of priorities, but after certain life events it becomes an important asset. Marriage, having children, and taking out a mortgage are all huge responsibilities that can put financial strain on a person should they find themselves suddenly alone. This is especially important if you are the main breadwinner in the household, and fortunately there are many different types of life insurance to suit every budget. Whether you wish to protect your home for your partner after your death, or ensure that your children will be provided for, life insurance can offer you peace of mind and security that will guarantee they will be taken care of after you’re gone.
Many people get confused as to when is the correct time to purchase life insurance. After you have married, your partner will assume responsibility for you, and this includes making funeral arrangements after your death. The funeral of a close family member can be one of the most expensive times in a person’s life, and it is wise to take steps to ensure that your partner will not be burdened. Whole of life cover is a form of insurance that will protect you for your entire life, and is usually paid out in a lump sum in the event of your death. Term life insurance can be taken out in the form of a policy that runs for a certain number of years. This type of policy is perfect for those who have taken out a mortgage together, as it will provide coverage until your mortgage is fully paid off. Failure to provide your spouse with adequate financial support after you have gone may result in them losing their home, and this becomes even more important if you have children.
Single people, or those without dependants, are not generally considered to need life insurance, but there are some exceptions to the rule. If you have taken out a mortgage with a friend or business partner, it is worthwhile considering life insurance plans for all parties involved. Life can be unpredictable, and it is wise to protect yourself against unforeseen circumstances. Likewise, if you have invested in a business or project with another person where you both share the financial responsibility, some form of life insurance will protect your investment should something happen to you or your business partner.
When choosing the right life insurance policy for yourself, you will need to consider how much support your dependents will require after you have gone. If you opt for term life insurance you can select from level or decreasing term. Level term insurance will pay out a lump sum at any time, and can run for a period of time such as 20 years. This makes an ideal option for those who have taken out an interest-only mortgage or have young children. Decreasing term insurance will pay out a lump sum, but the amount will decrease over time. This is ideal for those with older children, or those who are confident that their partner will be able to support themselves. Whatever policy you choose, you can rest assured that your loved ones will be looked after in the event of your death, and will not struggle with financial problems during an already stressful time.
Jeff Noble has been helping people choose the right insurance policies for years. His articles predominantly appear on life insurance blogs. Find out the most popular months people purchase life insurance and why.
Insuring Life of Newly-Wedded Couple
If you are newly-wed, then planning for honeymoon is what keeps you engaged most of the time. You hardly have time to think about insurance. You are young and so believe that an insurance plan is not the need of the hour. It is not that you do not understand its importance but do not feel going for it at this moment. Truth must be told in no uncertain term – future is always unpredictable. You do not know what is awaiting you at the next turn and so need to be prepared now and always. An insurance plan is what gives you an assurance of security in case anything unfortunate happens to your spouse.
The newly married couples make little of insurance plan because they expect to live longer. But they are wrong. Any time life may be cut short by disease or accident. Have you ever thought what will happen to your spouse when you will be no more? Or what will happen to your property if both of you die? In the first case, the survivor’s life will only get miserable. But in the later case, the state will take over your estate just because you do not have any legal will in place. You have expressed your wish as to what you want to do with your property. But the state will set your wish at naught because there is no written dossier.
So, after coming back from honeymoon trip, make it sure to consult with your life partner regarding the insurance deal. Security is an important issue when you are going to turn a new leaf of your life. Convince him/her why you need to buy an insurance policy without delay. Argue with your spouse and give enough reasons why an insurance plan is no short of necessity. Once you get the green signal, start shopping to get the best deal.
At first, you must decide which kind of insurance plan you need to go for. Do you like to opt for a term life insurance policy? It is a good choice because you will have kids after a few years. Term life insurance is done for a long stretch of time, say 20-30 years. So, an entire family will remain insured for a long time span. By the time policy term will come to an end, your children will have graduated from the college. So, you will be at least relieved that your children will be protected if anything worse happens to you or your spouse or both during the policy term.
Now once you have decided which type to go for, it is high time to search for a good deal. There are some companies which provide the best deals but then these choices come expensive on our wallet.
Things You Need To Know About Dividend-Paying Life Insurance Policies
The only kind of insurance which pays out dividends is whole life insurance. Not all whole-life policies payout dividends either, so make sure you chat to your broker and check the policy’s fine print.
Let’s take a closer look and unpack what dividend-paying life insurance policies are, how they work, and whether they may be suitable for you.
What is a life insurance dividend?
A dividend is the return of a portion of the premiums paid on your policy back to you at the end of the year when it comes to life insurance.
A dividend payment is not necessarily guaranteed as this varies policy by policy. Therefore, it is essential to read the policy carefully.
The amount is not guaranteed either. The amount depends on profits made by the insurance company, investment performance, new policies sold, and the amount of money paid into the policy.
Dividends can be distributed as cash to the policyholder and decrease premiums or buy additional paid-up insurance.
Often, insurance policies that provide a guaranteed annual dividend are more expensive to cover the additional risk to the insurance company.
Sometimes non-guaranteed dividends are cheaper, but there is the risk that no dividend will be paid.
Are these dividends taxable?
Generally, with a few rare exceptions beyond the scope of this article, these dividends are not taxable. The tax authorities see dividends as a return of premiums to the policyholder.
Since they are not taxed, it is common for policyholders to receive cash or a check and reinvest in an investment to earn more income.
How can dividends be used?
The choice of how to use the dividend is up to the policyholder. This choice will affect either the death benefit or the cash flow elements of the policy.
Firstly, the dividend can be taken out as cash or a check from the insurance company. This “cash in pocket” option will pay more in the short term but could earn you less than over the long term from some other options.
Secondly, the policyholder can leave the cash with the insurance company. Thereby allowing it to accrue interest.
Thirdly, the policyholder can use the amount to purchase additional paid-up insurance. Again, this can be an excellentlong-term strategy as the policy size is thereby increased, as is the cash surrender value and, in turn, the death benefit value over time.
Fourthly, the policyholder can use the dividend to reduce the premium due. Finally, any excess can be used for other purposes.
The main takeaway
Consider your financial position and reasons for life insurance carefully before deciding.
Should you decide to go with a dividend option, it’s a good idea to compare life insurance policies that pay dividends to ensure that you get the best bang for your buck. Insurance companies compete for your business, so it’s a good idea to “shop around” before committing to a policy and its premiums!
Are You Too Old To For Life Insurance?
If you are reaching your retirement years, you may be re-evaluating your outgoings. You really don’t want to be spending money on something you don’t need, so what about life insurance? Will you really need life insurance after you have retired, once you no longer have the responsibilities you once had?
On the other hand, maybe you have never had life insurance, and you are wondering if it’s a good idea to look into it now. To help you work out whether you need life insurance as a senior, take a look at the following questions.
Who relies on you?
One of the advantages of life insurance is that it can help to provide for loved ones you leave behind. If you have a partner who relies on you financially, life insurance could help to provide for them financially when you’re gone.
The same applies if you have young children in your care. They may not be your children, but they could be your grandchildren, or other family members you take care of. Or perhaps you have grown children with special needs. Life insurance could help to provide for them financially if something were to happen to you. Find out more about GIO funeral insurance at their official site & find out whats in it for you.
Do you have a mortgage?
Most people aim to have their mortgage paid off by the time they retire, however, these things don’t always go to plan. If you have a mortgage that still needs to be paid off, or perhaps you have a mortgage on an investment property, life insurance could help pay it off.
If you have any large debts, such as large personal loans or car loans, life insurance could help to cover these too.
Do you have your own business?
Even if you have reached retirement age, that doesn’t necessarily mean you are ready to retire. If your family relies on the income from your job, it’s important to think about how they would cope financially if that paycheck was no longer coming in.
If you run your own business, you have a responsibility to your employees and your business partners. Life insurance can also help to cover business-related costs if you choose the right policy.
Do you have money set aside for your funeral?
While it’s not something most people like to think about, funerals are unavoidable, and generally quite expensive. If you don’t have money set aside to pay for your funeral, your loved ones will have to cover the costs.
Life insurance can cover the costs associated with funeral arrangements, or alternatively, you could invest in funeral insurance, which offers specific cover for funerals.
Do you want to leave an inheritance?
Life insurance can offer a way to leave money to friends and family without the same tax implications of leaving them an inheritance in your will. Speak to a professional about this if you want to know more, as taxes vary according to circumstance and location.
If any of these situations apply to you, perhaps life insurance is for you. If you want to invest in life insurance, compare all your options, speak to your provider if you have questions, and read the terms and conditions in full.