Money-Back Life Insurances

Apart from typical life insurances, that only pay out in the form of death benefit, some life policies offer a distinctive approach by having an added investment element. The investment element (also called cash value) means that the policyholder is allowed to increase the price of the premiums paid to the insurance company. This supplementary portion added to the premium, called surplus, is ultimately invested in other businesses, together with other policyholders' added portions. Money-back life insurances belong to this broad category of insurances. They are permanent life policies with cash value. If you want to weld life insurance and investment into one piece, this is an option worth looking at.

 

In the case of money-back life insurances, the profit that comes out of the investments is issued in the account of the policyholder as a bonus and it is added to the assured sum of money. Considering the fact that sometimes not even specialists can guarantee the success of an investment, for they cannot foresee economic evolution, this type of insurance does not mean you are granted instant profit. This is why money-back insurances are especially advantageous in the long term and they are not a safe option for short periods of time. Despite this, they are more flexible and favourable options than other cash value insurances. For example, compared to endowment policies, that only allow access to the savings account after the completion of the term (after the policyholder's death), Money Back Policy give the option of withdrawing money during the tenure for personal purchases (regarding, for example, home improvements or trips). The policyholder may even sign up to receive the bonuses periodically, thus ensuring a supplementary source of income if there is profit. Furthermore, what makes money-back insurances even more appealing is the fact that the profit is not subject to taxes.

 

Still, some experts say that there are other more reliable and efficient methods of investing, stating that the cash value component should not be mixed with insurance. This stirs real confusion among potential clients, as they do not know whether it might be better to opt for a normal life insurance and invest the money in other activities. However, if you sign up for money-back life insurance and your policy happens to have some shortfall that you are not able to pay, you can sell the policy with the help of an adviser. Though this is little likely to happen in the long term, keep in mind that selling the policy might entail a complicated and burdensome process.

 

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Whole Life Insurance - Premium Payment Options

 

When deciding whether to purchase term life or whole life insurance, Florida residents have many factors to consider. How long do they want the policy to last? Do they want any extra perks, like the investment tools forced savings present? What kind of premiums do they want to pay

In today's economic times, the last concern - the one about premiums - might be key in determining whether it's term life or whole life insurance Florida residents purchase.

 

When Paying Their Premiums for Whole Life Insurance, Florida Residents Have Options

 

Life insurance that provides whole coverage is generally more expensive than a policy of term coverage; however, with whole coverage also comes various different kinds of policies and with those different kinds of policies come different methods of premium payment options.

 

For example, a traditional level premium policy generally requires you to pay a fixed premium over the duration of your life, while a limited insurance premium payment only requires you to make premium payments for a certain amount of time. Premiums for a limited payment policy are higher than those for a traditional level premium policy because you're making fewer payments for the same length of protection.

Then, there are single premium policies that - you guessed it - require you to pay only one premium to have coverage for your entire life. You probably also guessed that this premium is the most expensive.

In the end, before they decide to purchase whole life insurance, Florida residents should discuss with their agents the different kinds of policies and the various payment methods those policies offer.

 

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Do Children and Teenagers Need Life Insurance?

 

Most people associate life insurance with adulthood or even seniority. Why? Because the main purpose of life insurance is to contribute to the well-being of your family in your stead, in case you became unable to do so. However, insurance policies come in a multitude of forms and variations, coverage being offered to all age group, from toddlers to elderly citizens. This article focuses on insurance policies designed for children and teens. How do they differ from standard policies and, more important, are they useful or a complete waste of money?

Life insurance in its simplest form is meant to protect against financial loss and difficulty. Child Education Plan and teenagers don't really financially contribute to their families, do they? Nor do they do too many chores around the house so that you could say help would be needed in case, God forbid, one of them were to pass away. So, if we are to judge the book by its cover, life insurance for teens and children isn't really a compulsory investment. In addition to not being very practical, the numerous articles around the web which explain the importance and usefulness of life insurance for children force parents to face the macabre thought of their children dying. Unless we're dealing with severe hypochondriacs (I'm one of you.

 

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Why online term plans are the best insurance policies?

In this digital era, everything has moved online, right from ordering pizza to purchasing equity stocks and other investment avenues.Everything can be handled at the touch of the button on your smartphones or laptops. And life insurance is no different. Of the various plans being available online, term plans are simple and straightforward policies. You buy policies for specific tenure and the insurer will offer you financial cover in case you meet any unfortunate death. These policies come at affordable interest rates and offer higher cover. Experts say along with the usual benefits like 24 X 7 availability, convenience and speed, online policy purchase makes a lot of sense.

Online term insurance policies will help you save up to 30 to 40% on the premium costs compared to offline counterparts. One of the key factors that will influence the premium costs would be the absence of insurance advisor that will help you save on the distribution costs and commission. Besides, companies also save on documentation, logistics, stationery, etc. All these benefits are given to end users. Insurance companies understand that online buyers are educated, well informed and responsible individual. Hence, they are more trustworthy that these people will compare policies well and buy a suitable one based on their financial needs. Therefore, they are willing to offer insurance at low costs.

All reputed and major life insurance companies offer online term insurance policies. As a buyer, you can access many articles and blogs, calculators, case studies, infographics, customer reviews to have a better understanding of the product features and benefits. This way after comparing policies you can take an informed decision.

When you pay premium online, you can choose many fast and secure payment options like net banking, UPI app payments, credit/debit cards and more. All these payments modes are instantly processed through a secure gateway and ensure peace of mind. You will receive an online receipt which can be stored on your email address. Thus, online policy purchase refrain you from hassle-free documentation process

 

Some benefits of buying term insurance plans are:

Longer tenure, affordable premium costs, best claim settlement ratio, save up to Rs 30,000 and high insurance cover.

The best way of online policies is that if at any point of time policyholder is not satisfied with the “term and condition” of the policy, it can be returned within a span of 25-30 days from the date of receipt of the policy bond stating the reason for policy cancellation.

The premiums and the coverage amount of the online term insurance are not the same across all the companies. It may differ based on your health conditions, income source and the documents you submit while buying the policy.

In the end the decision to buy which plan is totally at your discretion. You need to choose an online term insurance plan based on your specific needs and family’s financial requirements. Ensure that you choose an amount that will suffice all your family needs well. It should cover your spouse survival needs, children education, clear off the debts in hand and lastly beat inflation costs for a better lifestyle in the near future. 

Retirement Plans Help Secure Your Future in Advance

Early planning can prove to be highly beneficial when the right time arrives, this is true in every sense especially finances. When it comes to money matters most of us believe in following a set plan of expenditure and savings, how about having a saving plan for post retirement? Yes advance and systematically taken steps can help you reap maximum benefits after your retirement, leaving you with ample financial security and peace of mind.

What are retirement plans?

Retirement is a truth that every person has to face at some point of time. Some people fear it as they feel post retirement the finances need to be controlled and expenditure needs to be as minimal as possible. However some see retirement as a period where one has ample time to enjoy life with his/her loved ones. By investing in a reliable retirement policy you will be assured of a financially independent life post your retirement without having to compromise on the luxuries of life that you always enjoyed.

 

A retirement plan basically is a method by which you are prepared to face your retirement way before it arrives. At the age of 30 when you may have the extra income to save, you can start investing some amount for your retirement too. When you compare the returns a pension plan will give you with other plans, you will surely find the benefits of the former to be more. The earlier you start putting your money in such a plan, the higher returns you will be eligible for. The maturity of such plans is generally after the policy holder reaches the age of 60 years, until then the plan doubles up as a life insurance cover for him.

How will a retirement plan benefit me?

Retirement plans come with multiple benefits, some of them are mentioned below.

Assured returns: When you invest in a life insurance retirement policy, you will have dual assurance. The first one is the life coverage and the second the surety of getting the promised lump sum amount of return. So instead of just buying a life insurance plan a retirement plan would even prove more beneficial to you as it will take care of your present as well as post retirement financial plans.

 

No claims bonus: Some Retirement Plans entitle the policy holders for a no claims bonus if they do not apply for claims until particular time duration. These bonuses keep accumulating and are given back to the pension policy holders during the maturity period.

Allocating some amount of your savings towards a fruitful retirement policy at an early age will help you enjoy your retirement with financial independence. If you haven't invested in a pension plan yet, it is never too late to begin.

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