Top Reasons for Buying Life Insurance

Life Insurance

Life Insurance

When times are tight people often look for ways to save money. Due the the GFC many people have been struggling and opted to cancel insurance policies, despite the risk associated with that course of action. Life Insurance is often one of the policies that people think they can temporarily be without. This article will share some of the top reasons why you should renew your life insurance policy or take one out for the first time!

Life Insurance is protection of the potential loss of income that results from an individual passing away. So if you are the bread winner in the family and you pass away, life insurance will compensate the family for lost earnings. The beneficiary of the life insurance policy will receive the money, ad you can actually nominate multiple beneficiaries in your will.

One of the main reasons for this type of insurance is for peace of mind. What would happen to your family if you suddenly died in a car accident? Would they be able to pay the mortgage or would they be living on the street within 6 months? Life Insurance would replace your lost income so the family can maintain the same standard of living.

Life Insurance is also useful for paying any medical bills associated with your death. What happens if you were in a car accident, then in a coma for 6 months, wracking up $500’000 in costs while in hospital? Could your family afford the bill or would they be forced to sell the family home. Life Insurance provides a financial buffer for the family ad allows them to hopefully keep the family assets secure. You wouldn’t want to be the cause of your family losing their home would you?

Life Insurance is also fantastic for taking care of any other bills associated with your estate. What happens to your car payments, mortgage repayments, credit card bills if you suddenly pass away? Your family inherits all of that debt. A Life Insurance policy will allow your family to take care of those bills and instead of worrying about their financial stability, they can grieve then get on with their lives. If you are carrying a lot of debt, you don’t want to burden your loved ones with it.

This kind of insurance can also provide for your children’s future. You could have enough life insurance to pay off your mortgage as well as leave them a healthy deposit for their college fees. This can make a real difference in the quality of their life.

Life Insurance can also provide some emergency cash for your family. At a timne when your family is in grief over your death, you don’t want them to be struggling financially.

What is Any Driver Car Insurance

Any Driver Car Insurance

Any Driver Car Insurance

In recent years a few new types of car insurance products have launched which are very interesting. One of those relatively new insurance products is “Any driver car insurance”, and it has some interesting features. This kind of insurance is designed so that any driver can drive a vehicle and it is still covered by insurance. It was specifically designed for situations where a group of people, or a family share the same vehicle and any number of people could drive it within a week.

This kind of insurance can be more expensive than traditional car insurance for obvious reasons. Other factors that affect the price of the insurance are the value of the car, where the car is usually driven, the ages of the drivers and how frequently the car is driven. Similar to normal car insurance, the driving records of the parties involved also plays a role.

This kind of insurance usually comes with the very handy roadside assistance coverage. So if your car runs into an issue while on the road, regardless who is driving it help is on the way.

With a traditional car insurance plan, any roadside insurance on offer is only available of the person who bought the insurance is driving the vehicle. If you lend your car to someone else and it breaks down, they won’t receive any assistance.

The rules for exactly who is allowed to drive the car and receive full coverage are a little more complex. With an any driver policy, some companies simply allow coverage for any driver over the age of 25 who has permission to drive the vehicle. Other policies require you to list exactly who will be driving the vehicle and only those people are covered. So while anybody driving the vehicle may receive roadside assistance, sometimes the crash insurance for the vehicle still has limitations.

It’s important to note that even the policies that allow anyone over 25 to be covered also have limitations. Drivers with terrible driving records may not be covered (check the policy), drivers with a suspended license won’t be covered, drivers without a drivers license won’t be covered and anyone under the influence of drugs or alcohol won’t be covered.

Some insurance policies will only cover relatives, others will only cover people who live in your home while others will cover anyone you let drive your car. As mentioned above, in addition to this you may (or may not) have to list the insured persons in your policy.

So while any driver insurance policy is a very handy form of policy at first glance, you really need to pay attention to the fine print. There are numerous differences between policies and you might have to shop around to find the perfect match for your situation!

Critical Illness Life Insurance

Critical Illness Insurance

Critical Illness Insurance

Your future is always uncertain and you never know what might await you tomorrow or next week.  That’s one of the reasons that people purchase insurance in the first place – to provide some financial certainty in the case of an unexpected and unfortunate event popping up.  This is especially true of health insurance and critical illness life insurance in particular – the financial certainty could be the difference between life and death!

Critical illness insurance is designed to help with your finances in the event of a critical illness like a heart attack or lung cancer.  There are about 30 to 40 illnesses covered by these kinds of policies, everything from major organ failure to cancer, to heart bypasses.  Once you find yourself afflicted with one of these major illnesses you will receive a lump sum cash payment from the critical illness insurance policy.  You can use that money however you please, with most people using it to pay for their medical bills, but you can also use it to pay off debt so your family is in good shape should events turn for the worse and you pass away.

To obtain this insurance you need to be between the ages of 17 and 70.  It’s a useful type of policy because coverage is usually cheaper than standard health insurance as it covers a specific set of illnesses, but the money can be used for anything you want.
Choosing the right policy is usually straight forward, but you should compare insurance premiums and the number of illnesses covered by the policy.  It is best to find a policy that has all of the common illnesses covered – heart disease, cancer, stroke and so on.  Some policies will also settle earlier than others, with many policies not paying out in the early stages of the disease.  A number of policies will pay a set amount in the early stages of the disease, so if you have just been diagnosed with lung cancer, you receive 10% of the payment and if the cancer progresses you receive the other 90%.

The cheaper plans tend to have more restrictions on when payouts occur but many are still worth obtaining because they will pay out when it’s needed most.  It is crucial to get into the fine detail of the policy and determine the payout conditions and percentages as well as the actual illnesses covered.

This kind of insurance is becoming more popular because the payout can be used for anything, with some people using it to pay simple living expenses when they are ill and using their health care policy to cover the actual medical costs.  It’s a fantastic supplemental policy because if there are any issues with the health insurance policy you have, you can depend on the critical illness plan to cover you.

It’s one of those policies that is fairly cheap and easy to obtain but the benefit is significant if you fall ill to one of these common illnesses.

Accident & Sickness Unemployment Insurance

Accident Unemployment Insurance

Accident Unemployment Insurance

Accident and Sickness Unemployment insurance is about providing financial assurance in the case that you become unemployed via redundancy or illness.  It’s a safeguard for people who would like financial protection if the case they lose their job for whatever reason.  The insurance will then provide a monthly payment until either you recover from the accident/illness or you find another job.  However there are limits to how long the payments will continue and policies do vary greatly.

With some policies, the ASU insurance policy will cover hospital bills as well as other major expenses while you are sick.  That means credit card bills, loan repayments and more.  If you have a lot of outstanding debt, that kind of coverage may be a good idea and it leaves your family well protected while you recuperate.  Other ASU coverage might only cover hospital bills until you can resume work and some forms of this insurance might have time limits or total expenditure limits.

Like most forms of insurance you can find online insurance comparison tools which deal specifically with Accident and Sickness Unemployment Insurance.   Also you can use an insurance agent to help you find the best insurance for your requirements.  The insurance agent will take a small commission for the service, but sometimes it’s worth it if you want to be absolutely certain that you are covered.  In many cases you can find professionals who won’t even charge you because they receive a commission from the insurance companies.The insurance brokers will be familiar with all of the ins and outs of the insurance providers so can also save you a lot of time by finding the right provider quickly.So if you want to have peace of mind in your families financial circumstances this form of insurance is one of the best moves you can make!

Naming An Insurance Beneficiary

Insurance Beneficiaries

Insurance Beneficiaries

After all of the work you may have gone through in finding the right insurance policy to suit your circumstances, you might think that most of the work is done.  Well not quite, you are still to face what can be one of the hardest decisions in your life – determining who will be the beneficiaries of your life insurance policies.  The beneficiary is the person named in your life insurance policy as the one to receive the payout after you die.  You can also name multiple beneficiaries and split the proceeds of the life insurance in any way you choose fit.  There are some limitations as yo who you can select to be a beneficiary, so read on to find out!

In the United States, a few states require you to choose someone who is related to you in some way. So you are required to choose a child, spouse or other close relative.  Other states have no such stipulation so you can name any entity you can think of as a recipient of the money.  You can also name your estate as the primary beneficiary of your will, which means that the money goes into your estate and will be divided according to your will.  Just be careful if you owe money though – any money going into the estate will also be available to creditors.  Your children may not see any of the money if you have a lot of debt and don’t put them as key beneficiaries.

Additionally there are also a number of different types of life insurance beneficiaries.  Irrevocable beneficiaries can’t be changed without your consent, while revocable beneficiaries can be.  Changing beneficiaries is as simple as lodging a form with your insurance company, so be careful with who has access to your paperwork in your final days!  There are also different types of beneficiaries – primary are the main beneficiaries, secondary or contingent are the second level of beneficiaries.  So if your primary beneficiary dies before you do, the money will go to the secondary beneficiaries.  There is no limit to the number of beneficiaries you can include, so you can make a complex and detailed list as long as you also note the split of the life insurance each party receives.  Most people use simple percentages to determine which parties receive what amount as the total value of the policy changes over time.

It is crucial that you name beneficiaries specifically because in the past people have run into all sorts of problems with money going into their estate and not being distributed in the way they had intended.  Beneficiaries also receive the money from life insurance almost immediately, which avoids any costs like probate fees, that might be attached to the dividing of assets in your will.  Also remember that if you name a child as your beneficiary, they will need a guardian or a trust to handle the money until they are of suitable age.  If you don’t, the court may appoint a guardian for the child and their decisions may not be as you intended.

You should always keep your beneficiaries up to date because life changes rapidly and you might have more children, get divorced, get remarried or have a falling out with a relative.  Make sure you keep it up to date or your assets may go to some undesirable party!

Age Limits For Life Insurance

Life Insurance Age Limits

Life Insurance Age Limits

Life Insurance is one of the most important purchasing decisions you can make because it affects not only you but your entire family and any other dependents.  A life insurance policy is designed to compensate your loved ones when you pass away.

However there are restrictions on what age you can buy life insurance and this article will give you a general overview on the types of life insurance and the age restrictions for those kinds of policies.

There are two types of life insurance available to purchase in the United States.  The first type is called “Term Life Insurance”.  It is a form of impermanent insurance, which means the insurance policy contract needs to be renewed at specific time periods (usually yearly).  The other form of life insurance is “Permanent Life Insurance” and that covers your entire life on the condition that you continue to pay for the insurance.

Generally life insurance policies have a cut off age of 85.  Once past the age of 85 people are considered ineligible for life insurance.  However, if you bought a permanent life insurance policy previously, you can continue payments past the age of 85, right up until your death.

Statistically speaking, most people don’t live long past the age of 85, many dying well before that age.  The cost of premiums for Term Life Insurance will also rise with age – so if you are 80 years old, your insurance will be more expensive than if you were 20 years old.  It is simply not economical for insurance companies to provide insurance to anyone past the age of 85 because the premiums paid will not cover the insurance payout.

One of the reasons many older people are turning towards funeral benefits policies is that they are no longer eligible for life insurance, but wish to cover some of the costs associated with their passing, such as the funeral.  When the average life expectancy in a country increases, insurance companies might raise the insurable age, but unfortunately in the United States the trend has been in the other direction with people dying earlier.

Permanent Life Insurance is usually the best option if you have a healthy lifestyle, good genes and expect to lie past 85.  You can just continue your policy and know that your loved ones will receive a payment even if you die at the ripe age of 100!