November 20th, 2009 | 
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I am considering buying some life insurance what do I need to know ?
In the past life insurance was something that you sorted through your broker when he or she came to visit at home and they sat and discussed it with you for a couple of hours and answered any questions you had. As with everything else and as socitey has changed so has how we now buy our life insurance. With the advent of the Internet and with technology transforming the insurance industry the days of the visting broker are numbered. Car Insurance led the way with instant online quotes and applications on the Internet, however this is not as hard to understand as life insurance as apart from what make is it and whats it say on the numberplate what else do you need to know ?
With life insurance there are a number of key factors you need to understand before you make the purchase.
Level or Decreasing ?
Where level life insurance is selected the amount of cover will stay the same throughout the length of the insurance. Your payments will stay the same except if you change cover. This is also known as Term Life Insurance or family protection and is ideal to cover interest only mortgages or leave income for a family should you be no longer with us.
Where decreasing life insurance is selected the amount of cover will reduce each year on the anniversary of the start date of your life insurance. The amount of Insurance is calculated to match the maximum outstanding on a loan in the next 12 months. This is the basis for the decreasing life insurance regardless of the purpose of cover for example if not taken out to cover a loan or mortgage. The payments will remain the same throughout the length of the cover.
Decreasing is often cheaper than level life insurance as the sum assured is coming down over the term of the policy.
Can the payments change ?
This is purely dependant on the type of basis you choose, this can either be guaranteed or reviewable ?
Guranteed – If you choose to guarantee your payments they will not change during the term of the cover unless you make any changes.
Reviewable – If you choose to make your payments reviewable they may change during the length of the cover, these are offered to make the payment more affordable at the start of the contract, more often than not the review occurs after 5 years and then every 5 years during the term of the contract. The review of the life insurance could recommend the policy premium is reduced – very unlikely, stay the same – likely, go up in premium – likely. The review is not based on your medical history or because you are older but normally on industry claims experiance.
It says i have terminal illness included with my life insurance whats this ?
Terminal illness is normally included as standard to any good life inusrance contract, this pays the guaranteed sum immediately rather than upon death if you are diagnosed as being termninally ill with a life expectancy of less than 12 months. This does not apply during the last 18 months of the period of cover. Please dont confuse this with critical illness cover as this is far more expensive option and wont be included standard.
Should I place my life insurance policy in trust ?
In a word yes, this will enable in the event of a claim the sum assured of the life insurance policy to go directly to the person or people you decide. This also avoids the possibility of your estate having to pay inheriatance tax on the proceeds of the policy. This is normally offered as part of the service with any reputable life insurance broker.
Mike Armstrong
http://www.articlesbase.com/insurance-articles/buying-life-insurance-online-93263.html
Posted in Life Insurance
Is it wise to buy life insurance online?
no
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Well this is the way i look at it: Why should i pay money every week out of my wages so that when i die i will get a large lump sum payment of money that i cannot use because i’m dead? If you’re married with a family to support it may be wise if you’re the primary income earner. Ask yourself this, If you die, could everyone who depends on you financially survive without your income?
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Sure. It’s the best way to-go but read the fine print before you agree.
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Short answer: no
Online quotes are always based on the best rates the company can possibly give you (Super Preffered health status), so they look like they are cheapest company to deal with
It is far easier to deal with an insurance broker who can cut to the chase and tell you exactly what it will cost rather than getting a cheap quote then finding out when it’s approved it will cost you a pile more becuase you aren’t in impecible/abnormally good health.
There may also be a unique situation, that the online application would not look at. For example, if you are a smoker, some companies have ’stop smoking’ incentives where they refund premiums. The initial quote will be more expensive than the others, but when you quit smoking it ends up being FAR cheaper. Every company underwrites a little different so a broker can assess your situation and find the best company to suit your situation.
Plus cheaper isn’t always better. You might have an opportunity to pay an extra $1 to be with a company that has been around for 100 years, rather than the cheapest who might be a fly by night company that ends up bankrupt in a few years. A broker will know the good companies from the bad.
Try this site to find the best life insurance
http://best-life-insurance-usa.blogspot.com/
Here you can get quotes from different life insurance companies in your area, its the best way to find an affordable life insurance with a reliable company.
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