More Life Insurance Artitcles

Advice For Choosing Your Life Insurance Payments
Although it’s a responsible choice, the choice to purchase a life insurance policy isn’t required. Other than not wanting to think about inevitable death, many people choose not to purchase a life insurance policy because they don’t want to take on...Read More

Life Insurance Settlement- What They Are And How To Use Them
Unneeded or underperforming insurance policy holdings? Ever thought or heard of a financial services valuation tool and strategy called life insurance settlements? Well, if not, the capital markets certainly have heard and taken notice. Life...Read More

Online Life Insurance Protection – How Much Do I Need?
There are a lot of people getting quotes for life insurance online. The quotes requested are usually for standard amounts of 50,000 to 500,000. The amounts requested often indicate that most people have not taken the time to calculate the amount of...Read More

Save money on life insurance
In some states and provinces, people are choosing to live without insurance because the cost of insurance on an ongoing basis is prohibitive, compared to the chance of dealing with high costs when there is a break-in or an accident. Here are some...Read More

What You Need To Know About A Life Insurance Settlement

How To Protect Your Life Insurance Policy While Going Through A Divorce

Life Insurance Careers

Cheap Life Insurance

Life Insurance Money saving Top Topis

So What's Life Insurance All About?

LIFE ASSURANCE
Life insurance (also called Life Assurance) is a way of financially protecting your family should you die.

The most frequent reasons people take out life cover are to pay off debts upon their death - such as a mortgage - or to provide a lump sum payment when they die to their dependents (thus ensuring their dependents are financially secure).

Usually sold as a single or joint life policy, there are many different types of life insurance contracts available.

CRITICAL ILLNESS
Also known as 'Serious Illness Insurance', this contract pays out a tax-free lump sum if you are diagnosed with one of a number of specified 'critical' illnesses during the term of the policy (eg heart attack or stroke - see list below).

The lump sum payment can be used for anything you want but most people use it to provide an income if they become too ill to continue working. Other uses may be to pay off a debt, such as a mortgage, or if necessary, adapt your home.

Most companies offer policies which cover you for death and critical illness, though it should be noted that normally the policy will cease if you claim on the critical illness aspect (ie you will no longer have life cover).

What should I consider when selecting a Life Insurance policy?
The sum insured
Calculate how much money would be needed in the event of your death to pay off all your debts plus how much income your dependents would require to continue the same lifestyle they currently enjoy.

Or, for a more generalised guide then, consider insuring your life for between 5 and 10 times your current net salary after tax.

If you are using life insurance to cover the repayment of a mortgage, the initial sum insured must equal the value currently outstanding on your mortgage.

The Policy Term
Once you have decided on the value of cover you need, the next step is to decide how long you wish to be covered by the insurance.

In other circumstances, the Term is a personal decision but your age should be an important influence. You should note that the minimum Term is usually 5 years and most people select a Term between 10 and 25 years.

Do you want the sum insured to be increased automatically in line with inflation ie an "indexed" policy?
Indexation is an optional extra and your monthly premiums will increase each year in line with the adjustment made by your Insurance Company.

Life policies that provide an increasing sum insured are called 'Increasing Term Insurance'; policies that provide a constant sum insured are known as 'Level Term Insurance'.

Finally, you should always read the Key Features Document for a Life Insurance policy to ensure you understand exactly what you will be insured for and any restrictions that may apply. (eg a common restriction is death caused by being involved in a hazardous pursuit.)

About the Author
Jason is Head of Business Development for Protection Insurance a specialist Insurance Website. To get a FREE no obligation Life Insurance , visit us now.

Written by: Jason Hulott

Term Vs Whole Life Insurance The Debate Continues

Life Insurance Buying Tips

Life Insurance Settlement Options

Life Insurance Policies

How to Pay Less for Life Insurance Without Changing Insurer

Is Life Insurance Right for Me

Group Term Life Insurance

Should I Buy A Life Insurance Policy For My Child?
If your child is the major income earner in the family (Hollywood star), the answer is, yes. However, for families with children that spend more of the household money than they earn, a separate life insurance policy isn't really necessary unless...Read More

Term Life Insurance: 3 Unique Reasons For Coverage
Term life insurance is an insurance policy that will give a lump sum payment to beneficiaries upon the death of the policy holder. While most people cringe at the bare mention of life insurance there are many important reasons why coverage should...Read More

Term Life Insurance Quotes Online
Term life insurance is one of the most commonly purchased types of life insurance nowadays. However, purchasing one should not be taken lightly. So, if you are also planning to purchase a term life insurance, you have to consider a lot of things...Read More

What Is Term Life Insurance?
Life insurance has been around a long time. The original concept was developed by the friends and neighbors of each local community. When a family member would die, a collection was made by the members of that community and donated to the...Read More

What is Universal Life Insurance?
Universal Life Insurance is a type of insurance policy that not only provides protection in the event of the insured's death, but it also serves as an investment option. It may earn money market interest rates. It's flexible and allows you to...Read More

Benefits of Getting Universal Life Insurance Quotes
What is Universal Life Insurance? “Universal” is the term used for life insurance that offers built in flexibility to change your premiums and the amount of life insurance you carry throughout the life of the policy. A universal life...Read More

Mortgage Life Insurance & Mortgage Redemption and Cancellation Life Insurance
Mortgage life insurance is one of the most important life insurance policies a person who owns a home can buy. Since the ownership of this home is probably the largest investment for most people it is imperative that your investment be ...Read More

Mortgage Protection Life Insurance - Understanding The Basics
Your house is a big investment - probably one of the biggest you're every likely to make. It is also the place that you and your loved ones call home; a shelter and haven from the outside world. That's why it is so important to ensure that...Read More

Viatical Life Insurance Settlements
The physical and emotional demands of a terminal illness are traumatic enough - both for the person and for the near and dear ones. Financial strains only serve to compound the trauma. Viatical life insurance settlements, if handled carefully, can...Read More

Affordable Life Insurance

Life Insurance Guide Ensure your Life

The Difference Between Life Insurance amp Health Insurance

Whole Life Insurance Or Term Life Insurance Which Is Right For You

Whole Life Insurance Policy An Explanation of Terms and Premiums

More Life Insurance Artitcles