The two main categories of traditional whole Life Insurance are a) Ordinary whole life insurance policies & b) Limited pay whole life policies. Ordinary whole life insurance policies require the policy holder to pay a fixed sum of money up to an old age. This is done to ensure that when the policy matures that the insured gets money whose value equals death benefit. But in practical cases the insured fails to keep the premium carrying on as they either die during the payment tenure or surrender the policy to get the maximum value. For Limited pay whole life policies the insured is required to pay premiums at a uniform rate. Here the period for which the policy is taken is less compared to ordinary whole life insurance policies; hence the insured is required to pay a higher amount of premium. Limited pay whole policies are further categorized into A) Interest Sensitive Whole Life Policies - This policy does not pay returns to the insured. However the amount earned by investing the insured's investment is accounted and paid to the insured, B) Universal Whole Life Insurance Policies – A very flexible type of insurance policy, which allows for a change in death benefits every year & C) Variable Life Insurance Policies – Here the insured will be able to earn a higher amount when compared with the other policies. At the same time the insured will not be able to claim other insurance benefits like loan.
Major benefit of this kind of policy is the availability of loans. The amount of such loans will be decided on the basis of his policy amount and premiums. But in such cases the amount or refund that they will receive after the expiry of policy will be less. Whole Life Policies are for people guarantees returns on investments; hence it is best suited for people who are looking for something more then protection. If the investment (premium), that you make is invested in stocks then expected returns aren’t assured, but if they are invested in other financial instruments like banks or trading sectors then the returns are ensured.
Decide on the level of car insurance cover
- The cheapest car insurance cover is third party. This protects you from liability if you injure someone and pays to replace or repair their car, but does not cover damage to your car.
- A slightly more expensive option is third party, fire and theft. In addition to third party cover, it pays for repair or replacement of your car if it's stolen or damaged, or destroyed by fire.
- The most expensive car insurance is comprehensive. These policies also cover damage to your car if you are involved in an accident.
Things to look out for in car insurance cover
- Check that you're covered if personal belongings are stolen from your car.
- Check for upper limits, i.e. what the policy will pay out on individual items—for example, expensive in-car audio equipment.
- Check for legal protection cover, which is essential if you're involved in a legal action as a result of a car insurance claim.
- Ask about any excess, i.e. the amount you have to pay on each claim.
How to cut the cost of car insurance cover
- Shop around—buying online can be up to 10 per cent cheaper than a phone quote.
- Check to see if you're entitled to any no-claims discount. These vary widely between insurers, but if you've driven without making a claim on your car insurance for a year, typically you can save 30 per cent on your car insurance premium and up to 70 per cent after four years without a claim.
- Are you a woman driver? If so, you could be in line for cheaper car insurance. Some insurers look more favourably on female drivers as, statistically, women's claims are for relatively minor accidents.
- Keep your mileage low—if you do fewer than 12,000 miles a year, you could save money on your car insurance.
- Fit extra security. Installing an alarm or immobiliser can cut car insurance premiums, as can off-street parking or keeping your car in a garage.
If you're under 25
Statistically, young drivers are more likely to have an accident and claim on their car insurance, so premiums can be very high. To help reduce these:
- Buy a car deemed by insurers to be in a low-risk group.
- Enrol in the Driving Standards Agency Pass Plus scheme.
- Shop around for a specialist policy aimed at young drivers.
If a young person occasionally uses their parents' car, they can be added to their parents' car insurance policy as a named driver. Don't do this if the child is the main driver, however—it's illegal and car insurance companies are clamping down on the practice.
With the value of cars rising, motor insurers are choosing to repair cars as appose to writing them off. This has resulted in the majority of disputes between consumers and insurers being based on bad quality repairs and valuations.
Repair costs for cars that are worth £30,000 to £40,000 can easily be in the region of £15,000. Because of this, many insurance companies prefer to have the repairs conducted at one of their garages, whereas the consumer may prefer their vehicle be repaired at a specialist garage.
Consumers that find themselves in this situation do not have to accept repairs at the garage their insurer offers. They can choose exactly where they would like their vehicle to be repaired.
Moreover, the vehicle should leave the garage in perfect condition. Any dissatisfaction regarding the quality of repairs and the insurer should commission a report from an independent engineer report.
Another big problem the ombudsman found is that there has been an increase in the number of consumers that have been denied payouts when their car has been stolen.
“The typical scenario is you get up one morning and your car has gone. The insurer somehow blames you for it, and refuses to pay up on the grounds that it can’t be stolen,” Robert Short, lead motor insurance ombudsman.
Insurance companies justify this move by saying that many of today’s cars are fitted with sophisticated security systems, and that the only way the car could have been stolen is down to consumer carelessness.
Some of the major reasons people buy life insurance are as follows:
- Replacement of income needed in case of the death of a wage earning family member.
- Payment of a mortgage loan or any other major debts.
- To get the necessary fund for the child’s higher education in universities.
- Payment for expenses like taxes and others like funeral costs.
- Creation of a fund for a member family who may be in need of a big sum of money in the future.
Life insurance policies can be categorised in 2 types: Protection and investment. For the protection policy, payment is normally done in a lump sum in case of any specific event. However, the investment policy is designed to protect and the capital grows over a certain period via a single premium or regular payments.
To build huge amount of wealth can take a long time, but one can lose everything in a short period of time. Illness like cancer, heart attack or stroke can occur at any time and prove dangerous. Thus it’s of utmost importance to protect the family. Below are some life insurance tips one should be aware.
- Buy enough cover so large debts like paying a mortgage or the child’s education can be paid.
- On life plans, do check the terminal illness benefit as this pays the assured amount if one is diagnosed with less than twelve months to stay alive.
- As compared to income protection, critical illness protection just covers the conditions that are listed under the plan. You should understand and verify well what is covered and what is not covered.
- Do ensure that at certain stages in your life, you can upgrade your policy, in circumstances like buying a new home, marriage or birth of a child.
- Be aware of the coverage you presently have to avoid over insuring. In your employee benefit package, life insurance, income protection and even critical illness insurance may be provided.
As much information should be given to the insurer. Non-disclosure of habits of smoking or regular pains can result in your policy not paying out. Thus it is clear to disclose even minor heath issues to be on the safe side. It’s also wise to check the cost of premiums from time to time. Also it is good to shop around to see if there better deals among the different life insurance companies.
By trying the online services you will surely be able to get a good deal. There is every possibility for you to be lucky with a good deal just because the online sites provide wide facilities. You will be provided with a variety and a bevy of online insurance agencies. So, by going through their offers and quotes you can compare all of them. Such comparison will bring the best deal out.
The most important thing to be looked in the quotes is that the premium rate should not be high. If you have to pay a high amount as premium then that will be problematic for you. Next you should see that it have to cover all kind of damages occurred to you. The physical illness and the medical costs have to be covered by it. Otherwise there is no use of getting such insurance. Some policies use to provide a very less amount as help and that you have to avoid.
You will also be able to avail the cheap life insurance quote when you go for a whole family insurance policy. Such policies use to be cheap and are quite affordable.
These days with the recession and the uncertainty which is prevailing in the money market it is important that you always a second option which is quite reliable. The life settlements can act as a valuable option that provides you with the feature of the declaration of selling the third party or to a life settlement company. They provide you with the best feature of selling the unwanted policy at the apt price. The transaction involved in the life settlement policies includes the feature wherein the third party would get the maturity amount of the insurance policy and you will be provided with an immediate aid. The purchaser of the insurance policy would be responsible for the subsequent payments of the insurance premium and interest.
The insights of the life settlement policies help the prospective purchaser to have a better judgement on the issue whether an insurance policy is profitable enough to retain it or sell. Incase you are finding that the premiums of policing are quite burdensome, and then it is good to understand that the policy can be disposed. Other than this there are many other considerations which are to be taken into account before you think of selling your policy, but the insights of life settlement can make your decisions beneficial. The biggest benefit that life settlement has provided that has increased the demand of these insurance policies is that it has provided for a secondary market for the sale of the insurance policy. Obviously the secondary market is for the people who are interested in purchasing the transferred policies.
As far as the benefits on the part of the investors are to be considered, the insights on life settlement enables him to ascertain the intrinsic worth of the deal. He would be rid of purchasing the policies which do not provide any benefit to him. Incase you are intending to be the owner of the life settlement policy and you do not possess the adequate knowledge about the benefits that it will yield to you, then you can always go in for professional help.