Which Life Insurance Plan is the Best Fit?

If you’re wondering whether or not you should buy life insurance, ask yourself this one question: “Would my death leave anyone in a financial bind?” If you answer “yes”, it may be time to get serious about shopping for life insurance. It can offer peace of mind, ensuring that your debts or loved ones will be taken care of in the event of your death. But before you buy it, you need to ask yourself if you’ll qualify, and whether you should purchase term or permanent life insurance.

Term life insurance is pure insurance protection that pays a predetermined sum if the insured dies during a specified period of time. On the death of the insured, term insurance pays the face value of the policy to the named beneficiary. All premiums paid are used to cover the cost of insurance protection. Permanent life insurance provides lifetime protection (does not expire), but the premiums must be paid on time. Most permanent policies offer a savings or investment component combined with the insurance coverage.

Is term or permanent insurance your best buy? It depends. A Focus may be inexpensive, but it doesn’t mean it is the model that’s right for you. And term life insurance may be inexpensive, but not necessarily your best buy. Why? Because a slight savings in price isn’t everything when making a long-term decision; value is often the bigger consideration.

If you just need life insurance protection for a limited period of time, such as covering a 10-year loan for a business, term life may be perfect. But buying life insurance to protect your loved ones, spouse and children, doesn’t usually end when the kids leave home. Your spouse may be in trouble if you died without adequate life insurance after the kids are gone and you’re still years away from retirement. Or during retirement, many older couples worry about the effect of their pension and Social Security amounts reducing when one of them dies and the healthy survivor has years left to live – but now with less income and fewer assets. Try explaining to a spouse that at retirement your group life insurance immediately reduces 50%, and at age 70 another 50%, a typical provision in many group contracts. You’ll just buy more? It may be cost prohibitive due to your older age, or due to a few so-called minor health issues that you’ve developed over the years. Realistic? Yes. It happens every day – health issues or age making the purchase of additional life insurance cost prohibitive.

Yes, the effects of some decisions aren’t nearly as apparent until years later, when it’s too late to correct a bad decision. Don ‘t live with regrets. Permanent insurance isn’t nearly as expensive today, as it use to be. Some permanent type insurance policies may actually be less expensive than older term policies. When’s the last time you compared? You might be pleasantly surprised at the new choices available. The facts make it easy to evaluate your decision.

Features of the Term Life Insurance Plan

Buying life insurance is an important financial decision that every person, and particularly the breadwinner, should make. The right policy helps to provide financial support to loved ones in the event of the untimely death of the breadwinner. It ensures lost income is covered, supporting the family financially until they get other sources of income. Therefore, an insurance cover ensures the lifestyle of loved ones is maintained. Many people fail to purchase insurance because they consider it an expensive undertaking. However, with the term policy, insurance has been made affordable. The features of the term policy include:

· Renewability

The term policy caters for a period often ranging from one to thirty years. When the term expires, you are at liberty to renew the policy. If you choose not to renew the policy, you will be able to access the benefits once the term matures. However, if you die before the term comes to an end the named beneficiaries can access the benefits.

· Accelerated death benefits

The term policy allows the policyholder to obtain cash benefits if they are diagnosed with terminal illness. This gives the policyholder the opportunity to use the money to cater for treatment among other expenses. This helps to cushion loved ones from using their savings to pay high medical costs. Therefore, term policy is recommended for people who have a short time to live.

· Spouse/child term riders

A policy with this feature gives you the opportunity to buy an insurance cover for your spouse or any of your dependent children. If you divorce your spouse or your spouse dies, the policy allows you to institute the necessary changes to the policy. Similarly, once your child becomes independent you can change the policy. This option offers an affordable way of purchasing insurance particularly if you cannot afford separate policies.

· Mortgage protection

This is an important feature, found on the term policies. If you have a mortgage of 30 years, you can consider purchasing a 30-year term policy. This will ensure once the policy matures, the benefits can be used to pay off the mortgage. This is particularly important if you die – the beneficiaries will be able to access the benefits to pay off the mortgage. Therefore, the policy ensures loved ones do not lose their home, leaving them homeless.

· Survivor support services

The term policy can also offer support services that seek to provide objective legal and financial assistance to the beneficiaries.

Compare Life Insurance Plans to Get the Best Coverage For Yourself

The picture of loan and insurance market seems to be very puzzling for most of the people even in this competitive age. In spite of this fact, developments in both the domains are taking place at regular intervals. In the fast and steady lifestyle of today, it would not be a decision of a fool to hold a life insurance policy.

Our life usually gets patched with various colours and its quite impossible for everybody to expect nothing and live frugally on surprises. Though, it is quite evident that surprises may be in the form of certain accidents or sudden financial crisis. Moreover, such surprises are not welcomed by us. In order to make yourself secure and want to live a healthy and wealthy life then getting insured would not be a bad decision.

Now, if you are thinking of getting yourself insured then first and foremost you should do life insurance comparison. This would positively help you to get the best policy and that too at very affordable rates. Viewing the popularity of the insurance policies among the masses, one can find numerous insurance policies available in the market. Moreover, these policies are offered to you at very considerable rates. Depending on your requirement and income, you should select a suitable insurance policy.

For this, you should gather sufficient information regarding the various types of insurance policies available in the market in the present times. In this context, it needs to be mentioned that in these policies, not only your money or your life gets secured but also the life of your spouse and children gets secured. Moreover, various top notch companies such as LIC, Aviva Life Insurance Company, ICICI Prudential, MetLife India and TATA AIG offer various types of insurance policies to their valued customers.

As multiple options are open to you, it becomes even more important for you to do a life insurance comparison. While comparing, your mind should be very clear regarding which type of policy you actually want. At this point of time, you would come various types of insurance policies such as term life insurance, short/long term insurance, joint term, permanent life insurance, universal life insurance and whole life insurance etc. As such, first make up your mind and then jump into any profitable conclusion.

All these policies differ from one another in some aspects. For instance, the short/long term insurance basically insures you for a certain period of time. However, you can renew the short term policies for several years and at the same time, also pay the same premium rates. The USP of these type of policies is that one can even convert his/her policy into a permanent insurance policy. The long term insurance policies are popularly known as cash value life insurance. These policies offer death benefits and at the same time, they even accumulate cash value. Now in the case of the permanent life insurance policies, there is a twist in the tale. This policy actually comes with a cash value. In this type of policy, the premium rate remains fixed and offers the concerned person death protection as long as he/she lives.

As such, you might find it a Herculean task to select a suitable life insurance policy after doing a life insurance comparison. However, one should try to act smart and invest wisely because no one knows what would happen tomorrow. It is always a safe option to invest money wisely so that you can get in return a handsome amount. Due to these justifications these policies have started gaining momentum among the masses. You can even seek the support of the World Wide Web to get a better insight regarding the best insurance plans in India. By logging on to the concerned websites, you can get a perfect picture of the insurance market and even find the pros and cons of various insurance policies.

However, it must be borne in mind that while comparing the different policies, you must make a comparison of the monthly premium rates that you are obliged to pay. Moreover, apart from all this, if you have a reliable insurance agent to guide you then half of your work is done. As such, just chalk out your tensions, get yourself insured and enjoy a secured, prosperous life.