Finding the right life insurance policy can be a complicated and confusing process. You have to know the ins and outs of the different types of life insurance, and thats after you’ve figured out whether or not you even qualify, or if you even need insurance. Thats where we come in?we can make the policy-shopping experience a smooth and easy one so that, when your time comes, your loved ones will be provided for.
There are many types of life insurance, which is wonderful when you?re looking for a policy that fits your specific needs, but can also be frustrating. There’s term life insurance, whole life insurance, universal, variable universal and no-load insurance. There’s also mortgage life insurance, which will immediately pay off your home mortgage in the event of your death, so that your family won’t have to worry about house payments. All these options, unfortunately, can overwhelm just about anybody, so that many shoppers will ultimately decide to never buy a policy at all. We want to help you escape the chaos of these selections and make an educated choice.
* Term Life Insurance: With this option, you would decide on specific length of time for which the company would cover you, and pay a fixed premium over that span. In the event of death within that period of time, the insurance company would pay out the amount of money you decided on. However, if your death were to occur outside of that time frame, you will not be covered. Buying a new policy after the expiration of the previous one is always an option, but the rates will tend to be much higher.
-Whole Life Insurance: This type of insurance differs from term life in that it covers you for your entire life, and you still pay a monthly premium. In addition, you can decide to cash in your policy for a lump sum if it no longer needed. Whole life insurance has two values. Its face value is when the policy matures, or in other terms when you die. The cash value is the amount you will receive if you cash it in, or if your policy matures.
* Universal Life Insurance: This policy will invest your premiums into bonds, mortgages, and money market funds. This makes universal life insurance a bit more flexible, as you can adjust the details of the policy to fit your means. This fund created by your invested money pays for the pre-decided amount when you die. There is a minimum amount that is guaranteed to you if your money doesn’t do well in the market.
-Variable Universal Life: This insurance type depends heavily on the outcome of your investments. If your investments are doing well, then your death benefit will be greater.
? No-Load Life Insurance: Low-load or no-load life insurance generally includes less expenses than most conventional life insurance policies. More of the money you pay in is put toward earning more money for you, instead of going toward other expenses like commissions. Financial advisors will usually sell no-load or low-load life insurance policies for flat fees rather than commission. One of the first questions you need to ask yourself when making decisions about life insurance is how much of it you will need. We urge you to discuss these matters with your financial advisor and your accountant. They will be able to help you determine the right amount according to your budget, you?re your family?s unique needs and standards.
Susan Reynolds is the webmaster for a leading South African Life Insurance provider. For more information visit: http://life.insurance123.co.za/
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