Life Insurance References

People often think that having insurance is enough to ensure you’re future and that you and your loved ones are protected from all that life has to offer, wrong. The notion that all insurance policies are created equal ant true are very wrong and everybody should take note that every single one of us has to get evaluated according to their individual needs.

Somebody out of college might not have much need for insurance for they are just beginning to fill their coffers with their dreams, not unless there are existing dependents. Single, working class people who have parents that are unable to earn a living that relies on their income as well as siblings who are still unable to fend for themselves can be named dependents as well as their own family if that particular person happens to be already married upon entry level to the workforce.

by: Christine Zafra

Having an idea of what a life insurance is is not enough, a person who is interested of having one should also have an idea of the basic kinds of life insurances namely term life insurance and permanent life insurance. The term life insurance covers 10, 20, or 30 years while the permanent life insurance (which can be derived from the title itself) is a lifetime insurance. Comparing the two kinds, Permanent life insurance can be said to be more beneficial. It has more advantages compared to term life insurance like the growth of your money if you invest it in permanent life insurance. If you are planning to get an insurance, think of the long term effects and settle for something that can give you more.

Photo taken from http://classroom.springisd.org

by: Christine Zafra

With the developments in technology, life insurance companies now can do their quotations online. There is no need to go to the office to inquire. Now, websites of respective life insurance are already available in the public. People can read about the performance, services, and history of life insurance companies easily. People can even compare one company from another and discover which is more beneficial/advantageous to his/her part. With the existence of Internet, Life insurance companies can expand locally and internationally. This does not only benefit the companies but the clients as well. Choices and diversity are being provided with just a click.

Photo taken from http://www.cviog.uga.edu

Sick people have a hard time in getting insurance plans. The types of illness that these plans look out for include high blood pressure, heart disease and diabetes. Being overweight could cause some problems too, the heavier you are, the higher your insurance premium will be. Insurers use a table that lists down weight and the corresponding height to compute the possible risk factor. Based on statistics it is believed that overweight people is at a greater risk because the probability of having health problems is higher. The ideal customer for an insurer is somebody who is expected to live a long life.

In cases where a beneficiary doest not collect death benefits and the insurance company can’t locate them after a number of years, the money is returned back to the state from where the insurance policy was purchased. The full amount is turned over to the star comptroller department and deposited as unclaimed property. If the insurance company is not aware that the insured person had died they are not mandated to turn over the money to the state and if the state does not have a law pertaining to death benefits, then the money stays with the insurance company. Most of the companies have their own ways to look for the beneficiaries.

Medical expenses claims for repayment are not immediately reimbursed when some provisions are not met. The main provision requires that the plan’s annual deductible is paid before the company will start settling claims for medical expenses. There are three kinds of settlement plans. The first type allows full refund of actual medical cost. The second will reimburse only a specific portion of medical costs. The last type, referred to as true indemnity, sets that the company pays a definite amount per day for in-hospital care for a limited number of days during medical treatment. You are allowed to see a doctor of your choice.

The life insurance industry has an important role to play in the lives of clients especially when it comes to  providing the financial advice and protection in order to achieve their goals and handle unforeseen circumstances. It is an eye-catching option for savings, which many are not aware of its advantages as an investment option. By buying life insurance, you buy peace of mind and are prepared to face any financial demand that would hit the family in case of an untimely demise. In providing such protection, insurance firms collect contributions from many people who face the same risk. A loss claim is paid out of the total premium collected by the insurance companies, who act as trustees to the monies.

by: Christine Zafra

Life insurance can also serve as a reflection of how much you earn. It can manifest a person’s financial status or worth. Perfect illustration of this is the latest news about football star David Beckham insuring his body. The bigger your salary the bigger the amount of your insurance will be. Life insurance does not only say something about a person but it can also identify the ones who can afford it or not – class division. It is said that life insurance target customers are the middle market for it is constituted by a large number of individuals. So, if you do not have life insurance or low life insurance and you do not look rich, then it you might be categorized under the lower class of the society.

Photo taken from http://www.kjbeckett.com

Here’s an interesting cover of life insurance by Wikipedia:

Life insurance or life assurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a sum of money upon the occurrence of the insured individual’s or individuals’ death. In return, the policy owner (or policy payer) agrees to pay a stipulated amount called a premium at regular intervals or in lump sums( so-called “paid up” insurance). There may be designs in some countries where: (Assets, Bills, and death expenses plus catering for after funeral expenses should be included in Policy Premium. Anyone whose assets equal more than the value of their primary residence should not be compensated beyond that value in case they cannot sell their house. In the case of those whose lost their spouse should be compensated also for one full year the wages of their spouse which would or should be included to avoid lawsuits.) However in the United States, the predominant form simply specifies a lump sum to be paid on the insured’s demise.

As with most insurance polices, life insurance is a contract between the insurer and the policy owner (policyholder) whereby a benefit is paid to the designated Beneficiary (or Beneficiaries) if an insured event occurs which is covered by the policy. To be a life policy the insured event must be based upon life (or lives) of the people named in the policy.

Insured events that may be covered include:

• death
• accidental death
• Sickness

Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often written into the contract to limit the liability of the insurer; for example claims relating to suicide (after 2 years suicide has to be paid in full)(in India after one year Suicide is covered), fraud, war, riot and civil commotion.

Life based contracts tend to fall into two major categories:

• Protection policies – designed to provide a benefit in the event of specified event, typically a lump sum payment. A common form of this design is term insurance.
• Investment policies – where the main objective is to facilitate the growth of capital by regular or single premiums. Common forms (in the US anyway) are whole life, universal life and variable life policies.