Definition of Whole Life Insurance

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Would you benefit from buying a whole life assurance policy? If you think that you may need life cover for when you are 70 years and older, you may consider this type of life cover policy. We can now take a quick look at some of the basic features of a whole life insurance cover policy.

A Definition Of Whole Life insurance

Whole life cover offers death protection for the whole lifetime of the insured person. A whole life assurance policy has two parts. The mortality charge is the first part of your premium that pays for the insurance coverage. The second part or rest of the premium goes toward an investment component that earns interest. When the contract holder dies, the insurance payout is made to the contract's beneficiaries.

The Whole Life Insurance Premium

The policyholder typically pays a level premium for a whole life cover policy. This is a premium which does not go up as the person ages.

The Whole Life Insurance Investment

A whole life policy incorporates an investment component. This gathers a cash value that the policyholder can withdraw or borrow against. Life assurance companies traditionally invest insurance premiums in stocks, bonds and real estate in order to create boosts in cash value for policyholders. The policy's returns may rise and fall with the markets. It will typically gather less returns than those available from other investments such as equity mutual funds.

Whole Life Insurance Dividend Paying

Insurance Companies may credit the investment part with an annual dividend in addition to interest. This will depend upon the insurer's loss experience and investment performance.

The Cost Of Whole Life Insurance Whole life cover can be really expensive. You may not be able to afford all the insurance coverage you need if you are on a tight budget.

Other Whole Life Insurance

There are several types of whole life assurance policies. Here are 7 traditional forms:

Non-participating: The death benefits, cash surrender values and premiums of the policy are determined for the life of the contract when the policy is issued. It cannot be adjusted afterward.

Participating: With this policy the insurance company shares any surplus profits with the policyholder. These are the dividends the company may add to the policy investment.

Limited pay: Premiums are only owed for a certain number of years instead of paying annual premiums for life.

Single premium: The premiums are limited to a single large payment at the beginning of the life cover policy.

Indeterminate premium: The premium may differ from year to year, but it can never exceed the maximum premium guaranteed in the policy contract.

Economic: This is a combination of participating and term life cover. A part of the dividends is used to pay for additional term life cover.

Interest sensitive: The interest on the cash value of the policy fluctuates with current market conditions.

The Whole Life Insurance Guarantee

A life cover company will normally guarantee that the cash value of the policy will increase in spite of the performance of the company or the amount of death claims it receives. We have now finished taking a quick look at the definition of whole life insurance as well as some of the general aspects of whole life cover.

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Whole Life Insurance - Whole vs Term Life Insurance

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What type of insurance might fit you the best? Whole life insurance or term life insurance? Let us do a life insurance comparison between the two according to a few general criteria.

What is the difference between whole and term life coverage?

Whole life cover consists of life cover plus an investment on which you can earn interest. Term insurance covers the policyholder for the length of the policy and has no investment attached to it. Both will pay out a certain amount of money in the event of your death to your family members.

How much can you pay?

You should look at your financial budget, calculate how much you are able or willing to pay for a policy and then do a life insurance comparison. A whole life policy is much more expensive than term life coverage. This is because it combines a term cover with an investment component. You therefore pay part of your premium for coverage and the other part for the investment that earns interest. Term life cover costs less than whole life assurance since the premium you pay is for life assurance only. You are able to choose between two types of term cover premiums which can influence the initial costs: annual renewable or level term. A Level term premium stays the same for the duration of the policy. Annual renewable premiums might increase every year for the policy's duration.

What is your age?

Your age is might influence your policy choices. A person older than 50 will generally have to pay greater premiums for a term life policy. Also, if you are 65 and older, you may struggle to find an insurance company that is willing to sell you term assurance. Therefore, you may have no alternative but to buy whole life assurance. If you live longer than the duration of the term assurance policy, no money will be paid out to you. If this happens with your whole life insurance policy, you will still have the investment portion left. You may then borrow money against the investment or take the cash value amount.

How long do you want to keep the policy?

The cash value of a policy is the amount of money you could be paid should you decide to cancel your policy. If you think that you may have to cancel your policy sometime in the future before it's duration is completed, this might have an effect on the type of assurance you could buy. You could consider a whole life insurance policy if you are determined to pay the premiums for at least 20 to 30 years. This will usually ensure that you receive a worthwhile return. A Term life cover policy may be a better option if you are going to keep it for shorter than 20 years. The answer to your life cover needs is a personal and financial one that should be considered carefully before making a decision. That concludes this short life insurance comparison.

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Whole Life Insurance - Whole vs Term Life Insurance

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What type of insurance might fit you the best? Whole life insurance or term life insurance? Let us do a life insurance comparison between the two according to a few general criteria.

What is the difference between whole and term life coverage?

Whole life cover consists of life cover plus an investment on which you can earn interest. Term insurance covers the policyholder for the length of the policy and has no investment attached to it. Both will pay out a certain amount of money in the event of your death to your family members.

How much can you pay?

You should look at your financial budget, calculate how much you are able or willing to pay for a policy and then do a life insurance comparison. A whole life policy is much more expensive than term life coverage. This is because it combines a term cover with an investment component. You therefore pay part of your premium for coverage and the other part for the investment that earns interest. Term life cover costs less than whole life assurance since the premium you pay is for life assurance only. You are able to choose between two types of term cover premiums which can influence the initial costs: annual renewable or level term. A Level term premium stays the same for the duration of the policy. Annual renewable premiums might increase every year for the policy's duration.

What is your age?

Your age is might influence your policy choices. A person older than 50 will generally have to pay greater premiums for a term life policy. Also, if you are 65 and older, you may struggle to find an insurance company that is willing to sell you term assurance. Therefore, you may have no alternative but to buy whole life assurance. If you live longer than the duration of the term assurance policy, no money will be paid out to you. If this happens with your whole life insurance policy, you will still have the investment portion left. You may then borrow money against the investment or take the cash value amount.

How long do you want to keep the policy?

The cash value of a policy is the amount of money you could be paid should you decide to cancel your policy. If you think that you may have to cancel your policy sometime in the future before it's duration is completed, this might have an effect on the type of assurance you could buy. You could consider a whole life insurance policy if you are determined to pay the premiums for at least 20 to 30 years. This will usually ensure that you receive a worthwhile return. A Term life cover policy may be a better option if you are going to keep it for shorter than 20 years. The answer to your life cover needs is a personal and financial one that should be considered carefully before making a decision. That concludes this short life insurance comparison.

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Definition of Whole Life Insurance

Image : http://www.flickr.com

Would you benefit from buying a whole life assurance policy? If you think that you may need life cover for when you are 70 years and older, you may consider this type of life cover policy. We can now take a quick look at some of the basic features of a whole life insurance cover policy.

A Definition Of Whole Life insurance

Whole life cover offers death protection for the whole lifetime of the insured person. A whole life assurance policy has two parts. The mortality charge is the first part of your premium that pays for the insurance coverage. The second part or rest of the premium goes toward an investment component that earns interest. When the contract holder dies, the insurance payout is made to the contract's beneficiaries.

The Whole Life Insurance Premium

The policyholder typically pays a level premium for a whole life cover policy. This is a premium which does not go up as the person ages.

The Whole Life Insurance Investment

A whole life policy incorporates an investment component. This gathers a cash value that the policyholder can withdraw or borrow against. Life assurance companies traditionally invest insurance premiums in stocks, bonds and real estate in order to create boosts in cash value for policyholders. The policy's returns may rise and fall with the markets. It will typically gather less returns than those available from other investments such as equity mutual funds.

Whole Life Insurance Dividend Paying

Insurance Companies may credit the investment part with an annual dividend in addition to interest. This will depend upon the insurer's loss experience and investment performance.

The Cost Of Whole Life Insurance Whole life cover can be really expensive. You may not be able to afford all the insurance coverage you need if you are on a tight budget.

Other Whole Life Insurance

There are several types of whole life assurance policies. Here are 7 traditional forms:

Non-participating: The death benefits, cash surrender values and premiums of the policy are determined for the life of the contract when the policy is issued. It cannot be adjusted afterward.

Participating: With this policy the insurance company shares any surplus profits with the policyholder. These are the dividends the company may add to the policy investment.

Limited pay: Premiums are only owed for a certain number of years instead of paying annual premiums for life.

Single premium: The premiums are limited to a single large payment at the beginning of the life cover policy.

Indeterminate premium: The premium may differ from year to year, but it can never exceed the maximum premium guaranteed in the policy contract.

Economic: This is a combination of participating and term life cover. A part of the dividends is used to pay for additional term life cover.

Interest sensitive: The interest on the cash value of the policy fluctuates with current market conditions.

The Whole Life Insurance Guarantee

A life cover company will normally guarantee that the cash value of the policy will increase in spite of the performance of the company or the amount of death claims it receives. We have now finished taking a quick look at the definition of whole life insurance as well as some of the general aspects of whole life cover.

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The Growing Life Assurance Protection Gap

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Life assurance industry experts always bang on about the 'Protection Gap'. This is the difference between the levels of life assurance cover that we have taken out against the amount of cover that the industry believes we need. However, if the latest figure that has been produced by the UK life insurance experts is correct then, as a country we are massively underinsured as the gap stands at a whopping £2.5 trillion, and is growing every year.

We are mainly very good at ensuring that we have the mortgage covered by life insurance should the very worst happen, but it appears that we have totally forgotten all the other costs such as other debts, supporting children and even the mundane, such as living expenses. Of course, those with no dependents have no need of life assurance, but those who do should consider it very carefully.

Unlike most things today, the price of life insurance premiums has actually fallen. In fact, if you compare life insurance premiums to costs ten years ago, they are actually 50% cheaper, meaning that if price was a barrier for most people a few years ago then that situation has changed.

At this point, you may be jumping up and down saying that you are actually ten years older than you were and therefore even though premiums have dropped, because of your age it will still be more expensive. That is a common misconception. Because people are now living longer they pose less of a risk to life assurance companies, and that has helped drive premiums down. Plus, there is more competition meaning that those pressures also force down prices.

Re-visiting the level of your life assurance may also allow you to investigate additional benefit options such as critical life illness cover. Prices will also vary depending upon whether you opt for level term or decreasing term assurance. Level term, as its name suggests offers the same benefits in the case of death over a fixed period, whereas decreasing term reduces the benefits over the period, usually in tandem with your mortgage. As that is repaid, then the amount you would require in cover also reduces.

Recent research produced by the Daily Telegraph highlighted that almost one in three adults in the UK were found to have no life assurance at all. Even though statistically the vast majority thankfully will not require it, if the worst should happen then think of the financial impact on those left behind. Are you happy to live with your own Life Assurance Protection Gap?

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Life Insurance - Planning for the Future

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Life insurance policies pay some kind of benefit if your health suffers or if you are unable to work as a result. Life insurance premiums are calculated using information based on your age, health, lifestyle and occupation.

There are a wide range of similar policies now available through a wider variety of channels - from leaflets in the supermarket to insurance brokers and financial advisers - which mean that you can concentrate on searching for a policy, based on price rather than complicated added extras.

There are three types of life insurance available for purchase:

Level term assurance - a policy which is taken out over a period of time - known as the term - the length of the cover is set by the customer and the lump sum amount that is paid out remains the same throughout the term of the policy.
Decreasing term assurance - a policy in which the payment amount falls over time. These policies can be taken out in connection with a repayment mortgage, which allows for the amount paid out upon death gradually decreasing in line with the debt.
Whole-of-life insurance - this policy has no specified term, and pays a guaranteed amount upon death, however the premiums for such a policy can change.

When searching for a life insurance quote it is important to decide on what you'd like the payout to go towards - whether it is to pay off debts or a mortgage in order to provide your immediate family with a good standard of living or to cover funeral expenses.

Be sure to take into account any other insurance policies or employee benefits before taking out a policy, but there are other steps you can consider in order to improve the value you can get from life cover.

There are joint life insurance policies available for couples. If both parties are suitable for the same level of cover they are usually offered a policy which pays an equal sum if either partner dies. The price of joint policies is often slightly cheaper than taking out two separate policies.

Another step to consider when choosing a life insurance policy is to ensure that it is written 'in trust' - which ensures that the proceeds would fall outside an individuals' estate when they die, which would not affect any inheritance tax calculations.

It is advisable to seek consultation from a financial adviser before taking out a policy, they can offer an explanation as to the processes involved in your policy and can aid in a decision which can be daunting but not necessarily complicated.

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The Growing Life Assurance Protection Gap

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Life assurance industry experts always bang on about the 'Protection Gap'. This is the difference between the levels of life assurance cover that we have taken out against the amount of cover that the industry believes we need. However, if the latest figure that has been produced by the UK life insurance experts is correct then, as a country we are massively underinsured as the gap stands at a whopping £2.5 trillion, and is growing every year.

We are mainly very good at ensuring that we have the mortgage covered by life insurance should the very worst happen, but it appears that we have totally forgotten all the other costs such as other debts, supporting children and even the mundane, such as living expenses. Of course, those with no dependents have no need of life assurance, but those who do should consider it very carefully.

Unlike most things today, the price of life insurance premiums has actually fallen. In fact, if you compare life insurance premiums to costs ten years ago, they are actually 50% cheaper, meaning that if price was a barrier for most people a few years ago then that situation has changed.

At this point, you may be jumping up and down saying that you are actually ten years older than you were and therefore even though premiums have dropped, because of your age it will still be more expensive. That is a common misconception. Because people are now living longer they pose less of a risk to life assurance companies, and that has helped drive premiums down. Plus, there is more competition meaning that those pressures also force down prices.

Re-visiting the level of your life assurance may also allow you to investigate additional benefit options such as critical life illness cover. Prices will also vary depending upon whether you opt for level term or decreasing term assurance. Level term, as its name suggests offers the same benefits in the case of death over a fixed period, whereas decreasing term reduces the benefits over the period, usually in tandem with your mortgage. As that is repaid, then the amount you would require in cover also reduces.

Recent research produced by the Daily Telegraph highlighted that almost one in three adults in the UK were found to have no life assurance at all. Even though statistically the vast majority thankfully will not require it, if the worst should happen then think of the financial impact on those left behind. Are you happy to live with your own Life Assurance Protection Gap?

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How to Choose Life Insurance Like an Expert

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At some point in everyone's life there will be a time when you will consider purchasing a life insurance policy to ensure that your loved ones are catered for in the event of your death. It can be an extremely confusing transaction because of the amount of jargon that is involved. Cheapest isn't always best though. In reality it could often be the case that a life insurance policy is cheap because there is small print that the provider hopes you don't notice. Instead please use these rules to identify value. Here I will show you the key points you should consider when setting up a policy:

Set the sum assured at the same level as your mortgage. If your mortgage is for £100000 then get £100000 worth of cover; if your mortgage is for £80000, then get £80000 worth of cover. There is no need to get any more than this.

Set the length of term until the age of 65 no matter how quickly you plan to plan to pay off your mortgage. The reason you should do this is that you may still require life insurance in later life. Having to go for a new life insurance policy after the age of 40 can be extremely expensive. The main factor in the cost of life insurance is age so a £100,000 policy at 25 is going to be a lot cheaper than the same policy at age 45.

Don't take the waiver. An insurance waiver is a clause that allows you to miss payments without the policy defaulting, should you ever be out of work. We already have emergency funds factored into our plan that mean this extra is unnecessary.

Always select level term. With level term the sum assured remains constant throughout the term (although obviously affected by inflation). The opposite of level term is decreasing term. Decreasing term life insurance goes down every year leading to the ridiculous situation where you are paying the same amount year on year for less and less return. Level term assurance will only be pennies more than decreasing term so don't scrimp on this one!

Couples should have separate policies. Insurance companies will never tell you this but it is possible to get double the amount of life insurance for only a small increase in price. Having a joint policy would mean that there would only be one payout should any of the two of you die but the slightly more expensive separate policy option would lead to twice the payout. No wonder insurance companies don't tell you this - it would double their liabilities.

Write your policy in trust. Writing the policy in trust means that the beneficiaries of your life insurance policy will not have to pay inheritance tax on the gain. Writing a policy in trust is a relatively simple process. A real expert will be able to set up a policy in trust free of charge.

If we take the example of an average young couple (and assume they are non-smokers) this is how much their policy will cost:

Mortgage Chantelle Preston
£80,000 £5.58 £6.92
£90,000 £6.07 £7.51
£100,000 £6.32 £8.10
£110,000 £6.80 £8.71
£120,000 £7.29 £9.32
I'm sure you'll agree with me that this is very cheap indeed - but more importantly, it serves the needs of the people involved.

In summary, use these rules to make sure that you get the best value for money life insurance available.

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Given The Choice, Term Insurance Or Whole Of Life - What's Better?

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Trying to find the right life insurance policy for you can be very difficult. This is due mainly to the fact that you have to consider your personal circumstances and how they affect the choice of plan you ultimately go for. One person might need cover for the whole of their lives and someone else may only need cover for a set term. In this article I intend to point out the main differences between whole life assurance and term insurance and consequently which one might suit your particular circumstances.

The primary difference between term and whole life insurance is simple: term insurance offers only life coverage. A term policy does not build a cash value over time. When the person (or persons) covered by the term policy pass away, the death benefit of the policy is paid to a beneficiary.

As for whole of life cover, this works differently. Whole of life insurance is designed to provide a death benefit in the same way as term insurance. However whole of life insurance does this for the whole of the life of the person insured on the plan. It is for this reason it is known as whole of life and not term. Also, this type of plan will also build up a cash amount known as the fund. Making the choice as to which one is more suitable for your particular needs does need a lot more investigation, such as balancing what each plan offers against a persons own requirements.

It should be noted that whole of life insurance is generally more expensive that standard term, insurance. Owing to the fact that it will run for the life assured's whole life and the fact that the plan carries an investment element. In contrast term assurance which runs for a specified term and also has no investment element is proportionately cheaper.

Many people prefer term insurance because of the low premiums. They only need a simple policy that pays a death benefit if they pass away. Further, many believe that investing the amount of money saved through lower premiums, they can outperform any investment vehicle offered by a whole life policy.

Even though a lot of financial advisors would still rather recommend the whole of life insurance plans, they do appreciate that building up a fund value within the plan and the resulting higher premiums that task creates is not necessarily beneficial to all clients. This is due in no small part to the fact that most people have differing insurance requirements to that of others.

If a wealthy person is creating a complicated estate plan to shield various assets, there may be a need for a whole life policy that builds a cash value over time. Often, people who own and operate businesses need additional coverage to protect their families, their assets and themselves.

However if a parent just wants to protect their family in case they die level term insurance can be hard to beat with low premiums. When you factor the lower premiums versus those of the whole life insurance it does make it much more affordable. As has been said before in this article you can always invest any excess savings into an additional savings plan to produce a return.

Ultimately, the type of insurance policy to buy will depend upon your needs. While whole life is a better solution for some people, term insurance is better for others. Making a decision requires a deep consideration of your finances and your family's needs in the event that you pass away.

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Life Insurance 101

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All types of Life insurance fall into one of the four groups explained below, which type you use depends on the type of risk you wish to protect and the funds you have available.

Term Assurance

Cash lump sum paid out in the event of death

Straight term assurance is still a very cost-effective way of providing financial protection for the family or business. A lump sum is normally provided when a claim is made which is paid into the estate of the policyholder.

In order to avoid complications with delays in probate or inheritance tax, an appropriate trust can be used so that any payment is made direct to the beneficiaries.

It is also possible to have the cover indexed according to inflation, so that the level of cover remains the same in real terms. Since there is no element of saving, the plans do not acquire a surrender value. If you wish to include this option, you could opt for convertible

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Life Insurance 101

Image : http://www.flickr.com

All types of Life insurance fall into one of the four groups explained below, which type you use depends on the type of risk you wish to protect and the funds you have available.

Term Assurance

Cash lump sum paid out in the event of death

Straight term assurance is still a very cost-effective way of providing financial protection for the family or business. A lump sum is normally provided when a claim is made which is paid into the estate of the policyholder.

In order to avoid complications with delays in probate or inheritance tax, an appropriate trust can be used so that any payment is made direct to the beneficiaries.

It is also possible to have the cover indexed according to inflation, so that the level of cover remains the same in real terms. Since there is no element of saving, the plans do not acquire a surrender value. If you wish to include this option, you could opt for convertible term assurance.

Family Income Benefit

A regular income paid following death during the term of the plan

This type of plan provides for a regular income to be paid out in the event of the death of the life assured during the term of the policy. With each month that passes, the liability which the insurance companies is taking on decreases by a set amount. This enables the costs to be kept down to a minimum and is often the least expensive plan available.

The benefits can be written in trust to avoid legal delays and any possible
liability to inheritance tax.

Mortgage Protection.

This type of plan is also a term policy which covers the declining balance of a repayment mortgage. This enables the cost to be kept to a minimum but make sure that the interest rate figure is high enough for any possible increases in the mortgage rate.

Whole of Life Cover

Provides cover for the rest of your life

The main disadvantage of term cover is that at the end of the term, cover ceases and any new policy has to be underwritten according to the age and health of the policyholder at that time. When a whole of life policy is taken out, the policyholder has guaranteed insurability for the rest of their lives, regardless of any change in their health.

This means that initial premiums are likely to be higher than term assurance cover, but the plan has far more flexibility. It therefore depends on your personal circumstances as to which plan is likely to best suit your requirements.

Critical Illness Cover

Cash lump sum for those who die or have a critical illness

In recent years, the need for protection for those who actually survive serious illness or accident has become more apparent. It has been described as 'life cover for the living'.

Most plans cover the common conditions such as heart attack, stroke and most forms of cancer, but there is variation on more rare conditions. In addition to specific illnesses, it is quite common to have permanent disability cover. If you become permanently disabled and unable to return to work, the plan pays out. There is however, a wide variation in the definition of 'return to work. Some plans would only cover you if you were totally unable to work. Others have an own occupation? clause so that if you were unable to return to your normal occupation, a claim could be made. This is an extremely important fact to bear in mind when selecting your insurer.

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Getting A Term Life Insurance Quote

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At some point or another in our lives, we often find that there is the need for life insurance. Deciding which company to approach to find the best policy can be quite intimidating. To locate the appropriate insurance quote that best meets your needs is a daunting task. That is when using a specialist website that gives easy access to the marketplace that will help you find the best deal, is such a relief.

For those who have not encountered the life cover market before, the phrase 'term life insurance' maybe unfamiliar. This is simply the cheapest and most basic form of insurance. It provides you with cover for a fixed period of your choice (known as the 'term') and pays a one-off lump sum should you die during that term. Premiums are normally paid monthly although some policies allow annual payments. It is important to be aware that you are only covered for as long as you pay the monthly premiums. If you stop paying the premiums, the policy stops. In addition, as there is no investment element with this form of it, there is no maturity value payable at the end of the term.

Generally, there are two types of term life insurance available: level term assurance and decreasing it. Level term assurance pays a one-off lump sum upon your death if it occurs within the duration of the insurance term and the value of this sum remains constant throughout the period of the policy. Decreasing it also has the payment of a lump sum upon the event of your death but the value of the lump sum decreases during the period of the term. It decreases by a fixed amount, reaching a nil value by the end of the insured period. This insurance is usually used for mortgages or other loans where the amount owed decreases during its lifetime. You need to consider which type of cover you require when requesting your term life insurance quote.

There is a third type of cover called 'family income benefit', which gives your loved ones a regular income rather than a lump sum upon your death. However, the income is only paid during the lifetime of the policy. Therefore, if you die closer to its end, the fewer years it pays out. Some term policies allow you to increase the level of cover by including additional options, for example critical illness cover. This means the plan will make a one-off payment upon the diagnosis of a qualifying critical illness or if you die during the term of the policy.

Using this specialist website allows you to find the best quote quickly and easily. Having only to enter your details the once, it instantly provides information which can be organised in a format that best suits your needs. It can be saved and retrieved later at your convenience allowing effortless comparison the policy contents. This saves you both time and money and reduces the stress of finding the best life insurance quote.

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Fixed Term Life Insurance Explained

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The importance of having adequate life cover should never be underestimated - and the solution may be in taking out fixed term life insurance cover.

But first of all, why is life insurance so important? Sadly, many people see it as an unnecessary expense, thinking that once they die, why will they need the money? However, life insurance provides financial protection for the loved ones you leave behind.

For example, if you died tomorrow, would your partner be able to meet the monthly mortgage repayment and day to day bills on one salary alone? Would they be able to live the same lifestyle without your salary? Or would they need to sell up and downsize, possibly uprooting your children in the process?

It is unlikely that they would be able to cope financially on just one salary alone - and nor would you want them to be put under financial stress while coping with their grief.

The positive news is that the life insurance doesn't have to be expensive - and fixed term life insurance can be fairly cheap.

Fixed term life cover is insurance that pays out a lump sum should the life insured (ie. the policyholder) die during the term of the policy. It is a simple and probably the most inexpensive form of life insurance cover available.

This is because if the policyholder (or policyholders in the case of a joint life policy) survives the term of the policy, it expires and no payment is made. As the lump sum payment is only made on the death of the policyholder, this makes the life assurance premiums less expensive than some other life insurance plans.

Fixed term life insurance can also have additional benefits such as payment of the lump sum upon diagnosis of a terminal illness (such as cancer) during the term of the policy.

The term will normally fixed to match your personal financial circumstances - for example, if you have twenty years to go on your mortgage, then you need life insurance to cover at the least the period until your mortgage is paid off. Or you may want it to run up until you plan to retire.

As with all insurances, do shop around to find the right deal for you - you'll be surprised how much prices can vary from insurer to insurer even though they are offering the same level of cover and benefits.

Finally, if you are unsure about any aspect of your chosen cover, then speak to your life insurance provider or seek independent financial advice.

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Life Insurance 101

Image : http://www.flickr.com

All types of Life insurance fall into one of the four groups explained below, which type you use depends on the type of risk you wish to protect and the funds you have available.

Term Assurance

Cash lump sum paid out in the event of death

Straight term assurance is still a very cost-effective way of providing financial protection for the family or business. A lump sum is normally provided when a claim is made which is paid into the estate of the policyholder.

In order to avoid complications with delays in probate or inheritance tax, an appropriate trust can be used so that any payment is made direct to the beneficiaries.

It is also possible to have the cover indexed according to inflation, so that the level of cover remains the same in real terms. Since there is no element of saving, the plans do not acquire a surrender value. If you wish to include this option, you could opt for convertible term assurance.

Family Income Benefit

A regular income paid following death during the term of the plan

This type of plan provides for a regular income to be paid out in the event of the death of the life assured during the term of the policy. With each month that passes, the liability which the insurance companies is taking on decreases by a set amount. This enables the costs to be kept down to a minimum and is often the least expensive plan available.

The benefits can be written in trust to avoid legal delays and any possible
liability to inheritance tax.

Mortgage Protection.

This type of plan is also a term policy which covers the declining balance of a repayment mortgage. This enables the cost to be kept to a minimum but make sure that the interest rate figure is high enough for any possible increases in the mortgage rate.

Whole of Life Cover

Provides cover for the rest of your life

The main disadvantage of term cover is that at the end of the term, cover ceases and any new policy has to be underwritten according to the age and health of the policyholder at that time. When a whole of life policy is taken out, the policyholder has guaranteed insurability for the rest of their lives, regardless of any change in their health.

This means that initial premiums are likely to be higher than term assurance cover, but the plan has far more flexibility. It therefore depends on your personal circumstances as to which plan is likely to best suit your requirements.

Critical Illness Cover

Cash lump sum for those who die or have a critical illness

In recent years, the need for protection for those who actually survive serious illness or accident has become more apparent. It has been described as 'life cover for the living'.

Most plans cover the common conditions such as heart attack, stroke and most forms of cancer, but there is variation on more rare conditions. In addition to specific illnesses, it is quite common to have permanent disability cover. If you become permanently disabled and unable to return to work, the plan pays out. There is however, a wide variation in the definition of 'return to work. Some plans would only cover you if you were totally unable to work. Others have an own occupation? clause so that if you were unable to return to your normal occupation, a claim could be made. This is an extremely important fact to bear in mind when selecting your insurer.

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Getting A Term Life Insurance Quote

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At some point or another in our lives, we often find that there is the need for life insurance. Deciding which company to approach to find the best policy can be quite intimidating. To locate the appropriate insurance quote that best meets your needs is a daunting task. That is when using a specialist website that gives easy access to the marketplace that will help you find the best deal, is such a relief.

For those who have not encountered the life cover market before, the phrase 'term life insurance' maybe unfamiliar. This is simply the cheapest and most basic form of insurance. It provides you with cover for a fixed period of your choice (known as the 'term') and pays a one-off lump sum should you die during that term. Premiums are normally paid monthly although some policies allow annual payments. It is important to be aware that you are only covered for as long as you pay the monthly premiums. If you stop paying the premiums, the policy stops. In addition, as there is no investment element with this form of it, there is no maturity value payable at the end of the term.

Generally, there are two types of term life insurance available: level term assurance and decreasing it. Level term assurance pays a one-off lump sum upon your death if it occurs within the duration of the insurance term and the value of this sum remains constant throughout the period of the policy. Decreasing it also has the payment of a lump sum upon the event of your death but the value of the lump sum decreases during the period of the term. It decreases by a fixed amount, reaching a nil value by the end of the insured period. This insurance is usually used for mortgages or other loans where the amount owed decreases during its lifetime. You need to consider which type of cover you require when requesting your term life insurance quote.

There is a third type of cover called 'family income benefit', which gives your loved ones a regular income rather than a lump sum upon your death. However, the income is only paid during the lifetime of the policy. Therefore, if you die closer to its end, the fewer years it pays out. Some term policies allow you to increase the level of cover by including additional options, for example critical illness cover. This means the plan will make a one-off payment upon the diagnosis of a qualifying critical illness or if you die during the term of the policy.

Using this specialist website allows you to find the best quote quickly and easily. Having only to enter your details the once, it instantly provides information which can be organised in a format that best suits your needs. It can be saved and retrieved later at your convenience allowing effortless comparison the policy contents. This saves you both time and money and reduces the stress of finding the best life insurance quote.

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How to Choose Life Insurance Like an Expert

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At some point in everyone's life there will be a time when you will consider purchasing a life insurance policy to ensure that your loved ones are catered for in the event of your death. It can be an extremely confusing transaction because of the amount of jargon that is involved. Cheapest isn't always best though. In reality it could often be the case that a life insurance policy is cheap because there is small print that the provider hopes you don't notice. Instead please use these rules to identify value. Here I will show you the key points you should consider when setting up a policy:

Set the sum assured at the same level as your mortgage. If your mortgage is for £100000 then get £100000 worth of cover; if your mortgage is for £80000, then get £80000 worth of cover. There is no need to get any more than this.

Set the length of term until the age of 65 no matter how quickly you plan to plan to pay off your mortgage. The reason you should do this is that you may still require life insurance in later life. Having to go for a new life insurance policy after the age of 40 can be extremely expensive. The main factor in the cost of life insurance is age so a £100,000 policy at 25 is going to be a lot cheaper than the same policy at age 45.

Don't take the waiver. An insurance waiver is a clause that allows you to miss payments without the policy defaulting, should you ever be out of work. We already have emergency funds factored into our plan that mean this extra is unnecessary.

Always select level term. With level term the sum assured remains constant throughout the term (although obviously affected by inflation). The opposite of level term is decreasing term. Decreasing term life insurance goes down every year leading to the ridiculous situation where you are paying the same amount year on year for less and less return. Level term assurance will only be pennies more than decreasing term so don't scrimp on this one!

Couples should have separate policies. Insurance companies will never tell you this but it is possible to get double the amount of life insurance for only a small increase in price. Having a joint policy would mean that there would only be one payout should any of the two of you die but the slightly more expensive separate policy option would lead to twice the payout. No wonder insurance companies don't tell you this - it would double their liabilities.

Write your policy in trust. Writing the policy in trust means that the beneficiaries of your life insurance policy will not have to pay inheritance tax on the gain. Writing a policy in trust is a relatively simple process. A real expert will be able to set up a policy in trust free of charge.

If we take the example of an average young couple (and assume they are non-smokers) this is how much their policy will cost:

Mortgage Chantelle Preston
£80,000 £5.58 £6.92
£90,000 £6.07 £7.51
£100,000 £6.32 £8.10
£110,000 £6.80 £8.71
£120,000 £7.29 £9.32
I'm sure you'll agree with me that this is very cheap indeed - but more importantly, it serves the needs of the people involved.

In summary, use these rules to make sure that you get the best value for money life insurance available.

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Life Insurance - Planning for the Future

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Life insurance policies pay some kind of benefit if your health suffers or if you are unable to work as a result. Life insurance premiums are calculated using information based on your age, health, lifestyle and occupation.

There are a wide range of similar policies now available through a wider variety of channels - from leaflets in the supermarket to insurance brokers and financial advisers - which mean that you can concentrate on searching for a policy, based on price rather than complicated added extras.

There are three types of life insurance available for purchase:

Level term assurance - a policy which is taken out over a period of time - known as the term - the length of the cover is set by the customer and the lump sum amount that is paid out remains the same throughout the term of the policy.
Decreasing term assurance - a policy in which the payment amount falls over time. These policies can be taken out in connection with a repayment mortgage, which allows for the amount paid out upon death gradually decreasing in line with the debt.
Whole-of-life insurance - this policy has no specified term, and pays a guaranteed amount upon death, however the premiums for such a policy can change.

When searching for a life insurance quote it is important to decide on what you'd like the payout to go towards - whether it is to pay off debts or a mortgage in order to provide your immediate family with a good standard of living or to cover funeral expenses.

Be sure to take into account any other insurance policies or employee benefits before taking out a policy, but there are other steps you can consider in order to improve the value you can get from life cover.

There are joint life insurance policies available for couples. If both parties are suitable for the same level of cover they are usually offered a policy which pays an equal sum if either partner dies. The price of joint policies is often slightly cheaper than taking out two separate policies.

Another step to consider when choosing a life insurance policy is to ensure that it is written 'in trust' - which ensures that the proceeds would fall outside an individuals' estate when they die, which would not affect any inheritance tax calculations.

It is advisable to seek consultation from a financial adviser before taking out a policy, they can offer an explanation as to the processes involved in your policy and can aid in a decision which can be daunting but not necessarily complicated.

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Given The Choice, Term Insurance Or Whole Of Life - What's Better?

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Trying to find the right life insurance policy for you can be very difficult. This is due mainly to the fact that you have to consider your personal circumstances and how they affect the choice of plan you ultimately go for. One person might need cover for the whole of their lives and someone else may only need cover for a set term. In this article I intend to point out the main differences between whole life assurance and term insurance and consequently which one might suit your particular circumstances.

The primary difference between term and whole life insurance is simple: term insurance offers only life coverage. A term policy does not build a cash value over time. When the person (or persons) covered by the term policy pass away, the death benefit of the policy is paid to a beneficiary.

As for whole of life cover, this works differently. Whole of life insurance is designed to provide a death benefit in the same way as term insurance. However whole of life insurance does this for the whole of the life of the person insured on the plan. It is for this reason it is known as whole of life and not term. Also, this type of plan will also build up a cash amount known as the fund. Making the choice as to which one is more suitable for your particular needs does need a lot more investigation, such as balancing what each plan offers against a persons own requirements.

It should be noted that whole of life insurance is generally more expensive that standard term, insurance. Owing to the fact that it will run for the life assured's whole life and the fact that the plan carries an investment element. In contrast term assurance which runs for a specified term and also has no investment element is proportionately cheaper.

Many people prefer term insurance because of the low premiums. They only need a simple policy that pays a death benefit if they pass away. Further, many believe that investing the amount of money saved through lower premiums, they can outperform any investment vehicle offered by a whole life policy.

Even though a lot of financial advisors would still rather recommend the whole of life insurance plans, they do appreciate that building up a fund value within the plan and the resulting higher premiums that task creates is not necessarily beneficial to all clients. This is due in no small part to the fact that most people have differing insurance requirements to that of others.

If a wealthy person is creating a complicated estate plan to shield various assets, there may be a need for a whole life policy that builds a cash value over time. Often, people who own and operate businesses need additional coverage to protect their families, their assets and themselves.

However if a parent just wants to protect their family in case they die level term insurance can be hard to beat with low premiums. When you factor the lower premiums versus those of the whole life insurance it does make it much more affordable. As has been said before in this article you can always invest any excess savings into an additional savings plan to produce a return.

Ultimately, the type of insurance policy to buy will depend upon your needs. While whole life is a better solution for some people, term insurance is better for others. Making a decision requires a deep consideration of your finances and your family's needs in the event that you pass away.

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Life Insurance - Do You Really Need It

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These days, it seems there are insurance policies available for just about everything: car insurance, home insurance, travel insurance, pet insurance, life insurance - the list appears to be endless. Some types of insurance, such as car insurance, are required by law if you intend to drive on the public highway, but for most people other forms of insurance are an optional extra.

However, it's important to note that arranging insurance policies for other lifestyle items can provide you with peace of mind should something unfortunate happen. For example, taking out home-contents insurance can help cover the cost of replacing your household goods, while pet insurance can cover the cost of veterinary bills and treatments. But perhaps one of the most important 'optional' insurances you should consider is life insurance.

Whilst no one likes to think about death, life insurance - sometimes known as life assurance or term assurance - is a policy which pays a lump sum in the event of the policyholder's death, helping to protect loved ones and dependents against financial burden. Coming to terms with the loss of a loved one is never an easy thing to do, and the added financial burden can make it increasingly difficult to cope. However, a life insurance policy can help cover such costs as mortgage repayments, salary replacement and childcare costs, paying off debts or even providing for future education for the kids. Moreover it can help ensure your family can maintain the standard of living to which they were accustomed to.

Life insurance comes in various forms, the most common being level term, decreasing term, critical illness and family income benefit policies. Most are available as both single and joint life policies, with most policies including benefits such as paying out on the diagnosis of a terminal illness. If you're considering life insurance now, or in the future, it's important to understand what each type of policy provides.

- Level term insurance is the most common form of life insurance and is designed to pay out a lump sum of money in the event of the policyholder's death. The policy runs for a fixed term, normally a minimum of 10 years, and the sum assured is guaranteed, and remains unchanged throughout the life of the policy.

- Decreasing term life insurance is also known as mortgage protection cover and is regularly used to protect capital and interest payments on a mortgage. The sum assured decreases during the duration of the policy.

- Critical Illness insurance pays a lump sum if you are diagnosed with a specified illness, or suffer loss of limb and can be added to term insurance policies. The sum paid out by this policy can be used for any purpose.

- Family Income Benefit insurance pays a regular tax free income for your dependants throughout the remainder of the policy term. Payouts on this type of life insurance can be structured to correspond with changes in inflation, although benefits usually remain constant.

With the cost of life insurance premiums plummeting in recent years due to improved life expectancy and increased competition between policy providers, arranging a life insurance policy needn't mean breaking the bank or compromising on cover. Financial comparison sites can help you to find the best deals on life insurance - from premium prices to levels of cover - and with only a few clicks, you can insure and safeguard your family's future for when you're no longer around.

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Insurance Versus Assurance - What's the Difference?

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Anyone reading about insurance can be forgiven for thinking that the terms 'life insurance' and 'life assurance' are interchangeable, but are there any differences between the two terms and if not, why are there two different words for the same thing?

Put simply "insurance" is provided against an event that might happen whereas "assurance" applies to an event that will happen. So, insurance is a policy taken out against a risk, whereas assurance is one that is taken out against a definite event. The confusion about the seemingly interchangeable use of the two phrases occurs mainly because companies in North America refer to both assurance and insurance simply as insurance, and that habit has crossed the Atlantic.

For example, Whole of Life 'assurance' policies are taken out by people based on the fact that death is certain. They pay premiums to maintain the policy safe in the knowledge that their estate or dependents will receive an assured sum upon their death, whenever this happens. As it is certain (or assured) that the policy will have to pay out at some point, because it provides cover for the whole of someone's life, it is known as life assurance. However, a life 'insurance' policy will only pay out providing all premiums have been maintained and that death occurs within a specified number of years, known as the policy term. As it is quite possible that the insured will not die during the policy term, this is known as life insurance

Another example of 'insurance' as opposed to 'assurance' is critical illness cover. Because the insured is obtaining cover against the possibility of contracting and being diagnosed with a critical illness, it is classed as 'insurance'. Hopefully, when taking out such insurance it will not be required, but should such a situation arise then the insured will be paid a lump sum to help them provide for themselves and their family throughout their illness. Of course it is quite possible that the insured will not suffer a critical illness, and therefore this is known as insurance - something that might happen, as opposed to something that will.

There are many types of life insurance and life assurance policies available in the UK, and depending upon the term required and the age of the insured person some will be better to take out than others. Not everyone is in the same position nor requires the same type of cover and because life insurance and life assurance can be quite complicated anyone thinking of taking out a policy should consider seeking professional advice.

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What is Life Assurance

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Most people who are married or who have any dependents would be horrified by the thought of their untimely death leaving their family with hefty bills to pay, an outstanding mortgage to struggle to meet, or a sudden decline in their standard of living. Life assurance - which guarantees an agreed lump sum benefit in the event of the policy holder's death - is designed to take the sting out of just such worries.

You will probably have noticed this type of insurance variously described as life insurance or life assurance and you might have wondered why. The reason for the distinction - which these days is often blurred - arises from the fact that insurance is about the risk of something happening. Death, on the other hand, is the one certainty that all of us can count on as happening at some time. The description life assurance, therefore, was coined for the contract under which a life assurance company agreed to pay out an assured sum upon the policy holder's death.

To add a little more confusion to the picture, most of this type of product sold today takes the form of term life assurance. With term life, cover is extended for a predetermined number of years and if the policy holder dies within that period, the assured lump sum is indeed paid. If the policy holder survives the agreed term, however, then no benefit at all is paid. It could be argued that this arrangement is indeed life insurance, since the risk is being taken whether or not the policy holder will die within the term of the policy. Purists might argue, therefore, that the label "life assurance" should be reserved for something called whole-of-life assurance which pays a lump sum to the policy holder's beneficiaries at whatever time death occurs.

Suffice it to say that the terms assurance and insurance are, in common usage, practically interchangeable. As noted, whole-of-life assurance will almost always pay out, so its premiums tend to be somewhat higher than standard term life assurance. Whole-of-life cover is also generally packaged with an investment plan, designed to enhance the final payout, and this too increases the price of the premiums.

Standard term life assurance, however, remains remarkably cheap. Indeed, it is one of the few products in any market which has actually come down in price over the past decade. The level of benefits payable under a term life assurance policy are directly proportional to the level of premiums paid, so it is very much a question of choice as to how much protection is bought. It also comes in a number of different types, to suit a variety of personal circumstances.

The most popular variation is level term life assurance. It is called level term because the assured lump sum benefit remains the same throughout the insured term. Decreasing term, on the other hand and just as its name suggests, offers a decreasing death benefit during the course of the term. With a steadily decreasing sum at risk, the life assurance company can charge an even lower premium, making this the ideal choice for someone who wishes to ensure that a standard repayment mortgage (on which the balance is also steadily decreasing) is fully paid off in the event of their death. For those who want to build in some degree of increasing benefit, there is either increasing term life assurance (with the lump sum benefit increasing by predetermined annual increments) or index-linked term life assurance (where the benefit payable increases in line with inflation).

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No Medical Exam Term Life Insurance

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Many different people from all walks of life will be looking for life insurance cover of one sort or another. And life cover will be sorted for various reasons.

The idea behind life assurance and term life cover is to provide the policy holder's chosen beneficiary's (normally loved ones, family or close friends) with financial cover in the unfortunate event of their death meaning if you lose you win so to speak in that your loved ones will be covered financially in the event of your death.

Life insurance cover comes in many different forms some policies will payout a cash component when the policyholder reaches a certain age. Usually retirement and so can be viewed as both life insurance and a long-term savings policy for retirement or pension.

The original form of life cover is known as term assurance and has no cash payout component as with other more expensive forms of life assurance such as universal life cover policies and whole life cover. Term life cover or term assurance is by far the cheapest form of life assurance available and offers the policyholders chosen beneficiaries a substantial cash payout on the death of the policyholder. After all you can still save your money in a high interest account and pay much lower premiums for life cover, this is of course dependent on a number of factors such as the policy premiums having been kept up to date by the policy holder and in many cases the holder will have to have a mandatory medical before expiry of term to ensure they are healthy enough to renew their policy. This is for obvious reasons are to satisfy the term life insurer's risk assessment.

It is however still possible to find no medical exam term life insurance offered by a number of the leading life insurers although in many cases premiums may be a little higher as the insurer will be perceived to be taking on more risk. But as with anything it is well worth the customer's time to shop around. Insurance companies compete heavily for new customers and a term life insurance customer is as the name infers for life, therefore margins will be kept low to entice new custom and this can only benefit you the customer with lower premiums and term insurance deals without a medical exam as mandatory being offered in an effort to gain your custom.

If you are looking to insure for life and would like to keep premiums to minimum then it is well considering a no medical exam term life insurance policy.

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Life Insurance Products - Mortgage Protection

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This type of product gives the borrower peace of mind that the mortgage will be fully repaid in the event of his/her premature death and not leaves his/her near and dear relatives in a state of monetary confusion. As a family person and as perhaps the sole breadwinner, the borrower will be secure in the thought that his loved ones will not need to find the money to pay the mortgage each month. In the light of this knowledge many married couples take out a joint mortgage protection policy so that if either one of them was to die during the term of the mortgage, then this policy will ensure that the mortgage will be fully repaid.

There are two types of mortgage protection products: Decreasing Term Assurance and Level Term Assurance.

The decreasing term assurance policy is taken out to protect a capital and interest repayment mortgage. (A capital and interest repayment mortgage not only pays off some of the interest on the mortgage but also reduces the capital outstanding.) If the mortgage repayments are up to date, the capital outstanding will reduce each month. If the borrower or one of the borrowers in the case of a joint policy with a joint protection cover was to die during the term of the mortgage, the capital outstanding at the time of death will be fully repaid.

A level term assurance policy is taken out to protect an interest only mortgage. (An interest only mortgage just pays off the interest and does not reduce the capital outstanding. This means the capital outstanding will not change throughout the term of the mortgage.) So just like it is with the decreasing term assurance policy, if the borrower or one of the borrowers in the case of a joint policy with a joint protection cover was to die during the term of mortgage, the level term assurance policy will ensure that the capital outstanding at the time of death, will be fully repaid.

On comparison, the premium of the decreasing term assurance policy is slightly less than the level term assurance policy premium. While in both policies the premiums are set at the very beginning and remain the same throughout their respective terms, many borrower/s take out a level term assurance policy to protect their capital and interest repayment mortgage. This because there is invariably a surplus amount paid out at the time of death. E.g. a borrower/s takes out a capital and interest repayment mortgage of £100,000 with decreasing term assurance cover. At the time of death the capital outstanding on the mortgage is say £70,000. The life insurance policy proceeds will pay out £70,000 to fully repay the mortgage. However if the borrower/s had taken out level term assurance cover instead, the life insurance policy proceeds will pay out £100,000 leaving a £30,000 surplus for the family to benefit from. So for a slightly higher premium (checkout the comparison website) the benefit one could derive from level term assurance will be greater.

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Life Assurance Policies

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Definition: Life assurance can provide you with one of two main benefits: it can either provide your successors with money when you die or it can be used as a money saving plan to provide you with a lump sum (or income) on a fixed date. In recent years, however, both types of scheme have become more flexible and many policies allow you to incorporate features of the other. This can have great advantages but the result is that some of the definitions appear somewhat contradictory. There are three basic types of life assurance: whole life policies, term policies and endowment policies.

Whole life policies are designed to pay out on your death. In its most straightforward form, the scheme works as follows: you pay a premium every year and, when you die, your beneficiaries receive the money. As with an ordinary household policy, the insurance only holds good if you continue the payments. If one year you did not pay and were to die, the policy could be void and your successors would receive nothing.

Term policies involve a definite commitment. As opposed to paying premiums every year, you elect to make a regular payment for an agreed period: for example, until such time as your children have completed their education, say eight years. If you die during this period, your family will be paid the agreed sum in full. If you die after the end of the term (when you have stopped making payments), your family will normally receive nothing.

Endowment policies are essentially savings plans. You sign a contract to pay regular premiums over a number of years and in exchange receive a lump sum on a specific date. Most endowment policies are written for periods varying from 10 to 25 years. Once you have committed yourself, you have to go on paying every year (as with term assurance). There are heavy penalties if, after having paid for a number of years, you decide that you no longer wish to continue.

An important feature of endowment policies is that they are linked in with death cover. If you die before the policy matures, the remaining payments are excused and your successors will be paid a lump sum on your death. The amount of money you stand to receive, however, can vary hugely, depending on the charges and how generous a bonus the insurance company feels it can afford on the policy's maturity. Over the past few years, pay-outs have been considerably lower than their earlier projections might have suggested.

Options. Both whole life policies and endowment policies offer two basic options: with profits or without profits. Very briefly the difference is as follows.

Without profits. This is sometimes known as 'guaranteed sum assured'. What it means is that the insurance company guarantees you a specific fixed sum (provided of course you meet the various terms and conditions). You know the amount in advance and this is the sum you - or your successor - will be paid.

With profits. You are paid a guaranteed fixed sum plus an addition, based on the profits that the insurance company has made by investing your annual or monthly payments. The basic premiums are higher and, by definition, the profits element is not known in advance. If the insurance company has invested your money wisely, a 'with profits' policy provides a useful hedge against inflation. If its investment policy is mediocre, you could have paid higher premiums for very little extra return. The lack of money saving in this scenario could be depressing.

Unit linked. This is a refinement of the 'with profits' policy, in that the investment element of the policy is linked in with a unit trust.

Other basics. Premiums can normally be paid monthly or annually, as you prefer. Size of premium varies enormously, depending on the type of policy you choose and the amount of cover you want. Also, of course, some insurance companies are more competitive than others. As very general guidance, £50-£70 a month would probably be a normal starting figure. Again as a generalisation, higher premiums tend to give better value as relatively less of your contribution is swallowed up in administrative costs.

As a condition of insuring you, some policies require that you have a medical check. This is more likely to apply if very large sums are involved. More usually, all that is required is that you fill in and sign a declaration of health. It is very important that this should be completed honestly: if you make a claim on your policy and it is subsequently discovered that you gave misleading information, your policy could be declared void and the insurance company could refuse to pay.

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Colorado Health Insurance and Life Assurance

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Life insurance, sometimes called Life Assurance is a contract between two parties. This contract is usually between the policy holder and the insurer. In return for the policy holder paying a monthly or annual premium the insurer guarantees a specified monetary payout upon the death of the policy holder.

Each policy has its own terms and these can vary widely from insurer to insurer. A standard among all policies is that the insured cannot commit suicide or the policy will not payout. Also most policies will not accept new members if they have a terminal illness.

Costs involved with Colorado Life insurance vary from provider to provider. These costs are based on things like age, sex and whether the person has ever smoked or has a history of family illness. Most all insurance companies put policy holders in one of four categories. These categories include Preferred Best, Preferred, Standard and Tobacco.

There are many types of life insurance. These types include but are not limited to Temporary or (Term), Whole Life Coverage, Universal Life Coverage, Permanent, Limited-Pay, Accidental Death and Endowments. Each insurance type has it benefits and drawbacks. Be sure to consult a qualified Colorado Insurance Specialist before signing any paperwork for coverage.

Life insurance policies are for the most part are not taxable income. So any payout made to the beneficiary should not be taxed by state or federal government. This may however not be the case if the policy is somehow tied to an estate.

Insurance companies are not required to provide health of life insurance and can deny anyone for any reason they want.

Remember always consult a certified Colorado Insurance Specialist for any questions you have.

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