GARYANDLANA

Life insurance at the present time is very affordable. Competition in the life insurance market together with the cost savings that life companies are making by operating on the Internet has depressed insurance rates, bringing them down to historic low levels. For a healthy non-smoker in their 20s, life insurance rates can in fact be as cheap as £5 per month!

However, there are many factors that influence the final outcome of the life insurance rates for any one individual. Everything from hereditary diseases to diet will figure and, depending upon the answers that we give to the insurance company, will see our life insurance rates climb higher or drop lower than the average rates for our age.

So, just what factors will affect the insurance rates that a life company will quote for life insurance? Here is a summary of the most important elements to consider: –

Age – The younger you are the lower your life insurance rates; the older you are the higher your insurance rates. Young people are seen overall as less of a risk to the life insurance company than older people. This is because the life company simply anticipates that young people with live longer than older people over a finite time from the current date forward. As a result, young people will contribute a higher number of monthly insurance payments before they die than will older people over the same timescale.

If you’re in your 40s or 50s and lead a very active and healthy lifestyle this age-bias may seem a little unfair. However, given that a 25 year-old may clock up more than fifty years of monthly repayments to reach the age of 75, you on the other hand would only complete twenty-five to thirty-five years worth of repayments to reach the same age. When factored in with the increasing likelihood of death the further we get to our life expectancy limit – so heightening the risk that life companies take on paying out – it is quite easy to see why life insurance rates are bumped up to compensate as we get older.
(more…)

Most individuals have some form of insurance, whether it is for their vehicle, home or health. But it is important, however, not to overlook the benefits of life insurance, which pays money to beneficiaries when the insured dies.

HOW LIFE INSURANCE WORKS

Typically, the insured person makes payments into the plan – called premiums – in exchange for a “death benefit,” the money that is paid at the time of death. If you are considering purchasing life insurance there are a few potential problems you need to be aware of.

DIFFERENT TYPES OF LIFE INSURANCE POLICIES

There are numerous types of policies you can choose, but life insurance policies generally fall into three categories – protection, long-term savings and estate conservation.

Many people purchase life insurance for the purpose of providing for their dependents in the event of their death, thus protecting your existing stream of income. If you are in the protection category you may want to consider term life insurance, which offers only a death benefit for a specified period of time such as until you retire.
(more…)

There are a lot of myths and misconceptions when it comes to life insurance.

You need to know the truth when it comes to what you are purchasing, don’t just assume based on rumors you’ve heard. Mistakes made when buying life insurance have long-lasting consequences. If your family isn’t provided for as they need to be, you won’t be here to fix it.

You need to choose the life insurance that is right for you. You can do so by avoiding these seven common myths:

Myth #1: You should buy seven times your annual earnings.

The rule of thumb that says you should have so many times your annual income isn’t necessarily true. The average American has a policy three times his or her annual income. Your dependents should be able to withdraw 5% each year from your insurance policy money without having to touch the principal. If you are making $60,000 annually and you purchase three times your annual income, you have an $180,000 policy. This means your heirs will only be able to withdraw $9,000 each year.

Most people have less coverage than they need. To calculate the amount you actually need, estimate how much your heirs will need to maintain their lifestyle without you. Include the costs of child care, education and emergencies. Add up all other sources of income and subtract it from the expenses. This will show how much of a policy you need to have.

Myth #2: Agents don’t give you the best deals, the internet does.

The internet is a great place to shop and research life insurance. But don’t assume that you’ve gotten the lowest price just because it’s the internet. Good agents will find a competitive rate that’s comparable to your online quotes.

Often, the premiums posted on internet sites are misleading. They are usually quoting you are rate that only those in the healthiest of conditions receive. They may give you an initial rate that will increase significantly in a year.
(more…)