Monthly Archives: July 2017

Employers and Family Life Insurance

When we have a family, life insurance can be very important to have. One problem for young families is that life insurance can also be expensive. A nice this is that many employers do offer life insurance policies that their employees can purchase.

Most of the time, these policies can get major discounts, which allow the employee to pay a fraction of the cost that they would normally pay to get the same coverage on their own.

Many employers provide universal family life insurance as a group to their employees. Since the employer can get more people to sign up, the insurance company will typically cut them a deal and allow the policies to be held at a small part of the cost that they normally would be purchased at. This is ideal for young and new families as well as for families and individuals who have previously diagnosed health issues. Should the employee quit his or her job though, the policy will remain the same, but the coverage for the individual will likely become very expensive.

Another nice thing about employer held policies is that the premiums will come out of the policyholder’s paycheck either monthly or even bi-weekly. The group preferred policies are tax-deferred, which helps the employee to save up for retirement, especially if the employer also offers a 401k. These policies typically do not call for a medical examination, which can be highly beneficial.

Many companies use their offerings of universal family life insurance to help lure qualified and talented employees into their company if and when they need them. These life insurance policies are most beneficial if the employee remains with that company for a long time, which helps the business to reduce its turnover rate and hold on to valuable employees. Also, the policies often can include the employee’s dependents. This only serves to make the offer even more enticing.

Many times, the companies will also provide ancillary programs with the policies such as legal help with preparing a personal will. Sometimes they will offer help with estate planning too. The benefits that are added help the policyholder to save large sums of money over time, which is very helpful, especially with younger families. Those who have the same coverage or even the exact same policies and benefits will be spending heaping amounts of cash compared to what the employees would be paying. Thus, if an employee finds that their employee is offering such benefits to them, they should not think twice prior to signing up for the offer and taking advantage of it.

Employers benefit from these policies as well. They can take out key employee life insurances that pay out to the company in case that key employee should suddenly pass on. This is important because these employees are considered “key” because of their high levels of knowledge as well as skill. Also, when the company owns the policies, it can utilize the tax-free funds that have accumulated over time to protect against future liabilities.

Choosing The Best Life Insurance Cover

Life insurance is important both to you and to your family. It comes with benefits which includes taking the burden off your family when you are no longer around. It offers some financial security and gives you assurance that they will do just fine even in your absence. This makes it very important to choose a policy that offers you the right coverage for the benefits to be enjoyed by everyone in your circle. With so many options today as far as types of policies are concerned, you will need to consider several factors, so you are left with the best policy in the end.

Research and Make Comparisons

It is probably the most helpful thing you can do when in need of a good solution. The life insurance policies are so many and you will only manage to make the right decision when you understand the facts surrounding each. For instance, there are whole life policies which have higher premiums but build cash value in that you can borrow and pay back with interest. Universal policies, on the other hand do build the value, but the cost goes up with every year that passes. Term policies have low premiums but they do not build any cash value. When you take the time to compare your options and what’s on offer from some of the most reputable companies, you will be able to make a good decision for you and your family.

Estimate Costs and Number of People

When going for life insurance policies, it is important to consider your family as well. You are better off including the rest of your family into the coverage as well. There is a need however to ensure that you go for the right family policy and one that you can keep up with in terms of costs. The options are very wide and you won’t miss a cover that will be good enough for your entire family.

Consider the Long Term Benefits

Going for a policy offering long term benefits is most relevant any given day. This means you will need to take the time in weighing the cons and the pros of the different policies. You can involve your family in the discussion so that you can evaluate the long term benefits, hence making it easier to select the policy that best covers the needs you have.

Match It Up With Your Finances

Investing in a life insurance policy is important, but you also should make sure that you don’t end up paying too much into the policies you choose. A financial adviser can help you make the right decision so that you strike a balance with your finances and at the same time enjoy value from what you select. The choice you make will determine the possibilities of growing your money so take all the time to make a good decision you can afford and get value from even when you are still around.

Choosing and Buying Life Insurance For Your Family's Future

Have you ever thought of what might possibly happen if one day you die and all of your loved ones suddenly have no one they can depend on? Or maybe you end up in a crucial financial situation, buried in so much debt which would inevitably be passed on to your family in the event of your death. Or you might just want to secure the future of your children, ensuring that their college tuition is paid for even if something unexpected happens to you.

There are plenty of good reasons to consider buying insurance for yourself and your family’s sake. At the very least, this will allay many of your financial worries. It adds security to your plans for the future, and will definitely reduce the “what ifs” in your life.

There are several types of life insurance you can be eligible for, depending on your condition and age. You have the freedom to choose the kind of policy that suits your current needs.

Which Life Insurance Do You Prefer?

  • Term insurance. If you just want to acquire a limited plan for a specific price over a preset amount time, this simplest form of life insurance might be appropriate for you. In here, there is no investment part. If you die during this time, the one who receives your benefits may claim the value of the policy.
  • Whole life insurance. In this case, you will be investing in a policy that covers your “whole life”, unlike in term which is lasts for a set period. The amount of payment remains level throughout the validity of the policy, and so the company will invest at least a part from your premiums.
  • Universal life insurance. This is where the insurer credits the premium payments above the cost of insurance with respect to the cash value of the policy. This cash value will be credited each month with a certain interest and the policy is recorded as a debit each month by a charge even if there is no payment made within that month.

Buy Now
Look at your situation at this point in time. You might have doubts considering this topic, especially if you don’t think that you need this. But if you give it some real thought you will realize that it is better to be ready as early as now. Although life insurance is optional, but what everybody needs at this point in time is assurance that tomorrow will be free of possible sufferings. After realizing its importance and value, don’t hesitate in buying life insurance.

5 Steps to Protect Your Family With Term Life Insurance

With the dramatic decline in stock prices over the past two years, coupled with the implosion of the real estate market, most people are seeking the most cost-effective way to protect their families. In times like these, the virtues of term life insurance shine brightly.

But, if you ask around, many people have no idea how incredibly inexpensive it is to buy term life. Dollar for dollar, there is no other financial product in the world that does what it does at such a low cost. Here are 5 steps you can use to make smart decisions regarding buying life insurance protection for your family.

Step 1. Know what you are buying.

At its most basic level, term life insurance is pure and simple protection with long term guarantees to pay a large sum of money to your beneficiaries if you die. While the financial services industry offers a myriad of other types of insurance contracts that offer many types of important additional benefits, only term policies avoid the costs that these other plans charge.

Step 2. Decide on the amount of insurance you need.

Nearly half of the workers in our country have no life insurance other than what is provided to them through their employer. Typically this is just a token sum of maybe 1 x their annual income.

Finding the right amount of coverage you will need is easy to do using any number of online calculators. Some calculators will simply take your annual income and multiply it by the number of years you desire coverage for to come up with the recommended amount of insurance coverage. Other, more advanced calculators ask more specific questions such as what is your target date for paying off your mortgage or, when do you think your kids will start college, etc. Using these types of variables the calculator can give you a fairly accurate recommended amount of coverage.

Remember, when you die, there is no second chance to buy the right amount of life insurance! Pay attention to this step and your family will be in good shape.

Step 3. Decide on how long you’ll need coverage for.

Ideally, your coverage should not expire before your need does. If, for example, the purpose of the life insurance is to provide coverage for a specific period of your life, such as until your kids finish college, and your youngest child is 5 years old, then the life insurance policy last for at least 20 years.

Keep in mind that you’ll never be as young or as healthy as you are today. It’s always a good idea to lock in the lowest rate for the longest period.

Step 4. Shop around.

We all have a friend or a relative in the insurance business. Often times these well meaning relations work for a single company and can only present a quote from the one company they work for. That my have worked well in a previous time but, the days of buying insurance from your cousin Johnny, or your coworkers’ spouse are long gone. With the internet, you now have the power to compare multiple quotes side by side and select the life insurance coverage that best fits your needs. Let’s face it, you will own this policy for a long time, you’ll want to make sure you are making the wisest use of your money.

Step 5. Understand the key differences of term life insurance policies.

As commonplace as term life insurance policies are, there ARE differences beyond price that should be considered before making your buying decision. By comparing different insurance policies, you can often find a policy with better features, more options, and/or from a company with a stronger financial profile.

Some policy differences to consider are the length of the guarantee period, whether the policy is convertible into a permanent form of coverage like a ‘whole life’ policy, are there options to add coverage for a child or spouse, is there a waiver of the premium in the event of disability, or is there a rider that will return your premium? Understanding these differences is important to choosing the right term life insurance policy.

We’ve all been affected by the economy and one important question to consider is, “If you were to die today, would your family be better off or worse off financially than they were 2 years ago?” Planning to take care of their future needs is more important today than ever before. Properly using term life insurance is one affordable way that you can bring peace of mind back to your family’s financial picture.

Advantages of Family Life Insurance

As life is unpredictable, one needs to plan for the future and to take care of the financial security of one’s family by purchasing a suitable life insurance policy. Professionals accentuate that life insurance gives financial security to a family. The other terms used for life insurance are life cover and life assurance.

The following article provides various facts gathered from insurance specialists and indispensable information regarding the advantages attached with an appropriate insurance policy.

Numerous resources are present to provide in depth knowledge on different kinds of policies. Many a times, new customers get puzzled due to presence of infinite amount of insurance companies providing a variety of policies with different features. Prospective buyers of insurance may seek the help of online research if they feel confused about deciding the most appropriate policy for them.

The majority of insurance providers grant all the information relating to their products, by their websites which are easy to access and simple to understand. Furthermore, one may also seek the help of financial experts hired by insurance providers to offer free guidance to prospective buyers with regards to the kinds of policies, their details, advantages and concessions available for the customers.

The topic of insurance does not interest many a people. However it is crucial to purchase an insurance policy to provide necessary financial protection to the loved ones of the policy holder in case he expires unexpectedly. A latest survey reports that people of America do not have the essential information regarding the significance attached with insurance, irrespective of the fact that almost all the insurance providers spend a lot of money on advertising. The report suggests that in America, nearly 33% of the total households having a newborn; do not remember to renew their insurance policy.

The basic reason for purchasing life insurance is to plan for death. However there are a number of other motives also, with which the insurance is purchased. For instance, one may buy an extra insurance policy for his family while one already has an individual insurance policy sponsored by the company which employs him.

Insurance customers have numerous options available to them as a number of new companies have entered the insurance sector. Procuring an apposite insurance plan grants essential financial security to the dependents of the policy holder with tranquility of the mind of the purchaser.

One more crucial aspect is the plunging cost of premiums. The insurance information institute reports that premium rates have crashed down by 50% with regards to regular term insurance policies ever since 1999. It is forecast that the premium rates will fall further by 4% in the existing year. As it is true that the life is unpredictable, so it is also true that purchasing life insurance is indispensable for almost every individual.