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.
The different types of life insurance include whole life insurance, term life insurance, universal or variable universal life insurance, no-load life insurance, and mortgage life insurance. Mortgage life insurance lets you have your mortgage immediately paid off upon your death, so that your family can live without a mortgage as long they own the house. We will explain these different types of insurance, so that the choices won?t seem so overwhelming.
* 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: Whole life insurance is just that you will be covered all the way until your death. Whole life insurance is measured two ways, it has a face value, which is the amount that would be paid out in the event of death or at policy maturity, and it has a cash value, which would be the worth of the policy if you were to cash it out and receive a lump sum before your death or before 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 Insurance: This is very similar to universal life insurance, except that it depends far more on how your money fairs once it’s been invested, so that the more successful the investments are, the more money you’ll receive.
? 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 website. For more information visit: http://life.insurance123.co.za/
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