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- Published on Thursday, 24 July 2014 15:27
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Is Permanent Life Insurance Right for You?
For many people, Permanent life insurance is the right solution. However, it's not the best coverage for all situations. To determine if this type of coverage is suitable, you must consider the particular situation, the kind of expenses you want to be paid for, and how well family members will be able to maintain financial stability, if something should happen to you. Appropriate and affordable life cover should be based on need and affordability. There are many options to get life insurance cheap, that will offer some protection for various expenses. Read on to learn more about which cover may be best for your particular situation.
Whole life insurance is a form of Permanent life cover that provides a single death benefit at the end of the policy. The payments and the payout amount are fixed. It is a suitable type of cover for those who want to leave their families with a substantial lump sum, for living expenses and other costs.
Universal insurance is another form of Permanent cover. It contributes the portion of premiums above the current cost of insurance, to the value of the policy. It also allows the policy holder to use the interest to make premium payments. It is slightly more costly than term life, but less expensive than whole life cover if you want to know more about these insurance policy's then go here simplefs.co.uk
Another permanent type of cover is life assurance. Unlike a whole life policy, this option combines insurance with investment. It guarantees a minimum payout, but can pay more, when investments ear a profit. This type of policy can increase in value over time.
Term policies are renewable and temporary. They only provide a death benefit for the length of the term, which can be 2 years, 3 years, or 5 years. The policy has no value and premiums may increase upon renewal, particularly when the insured individual reaches various age milestones. Term policies are some of the least costly types of cover available, regardless of age.
Over 50 Insurance Options
There are options in cover for people over age 50. The main consideration is in choosing the amount necessary to provide for a spouse or to leave the children. Most adult children of those over 50 take care of themselves, so financial support may not be a motivator.
In many instances, a person over 50 will be required to take a physical exam, though this is not the case in all instances. Having health problems or being a smoker will greatly increase the premiums of such a policy. Most older adults choose term life cover, as it is the most affordable life cover.
Life Insurance Calculator
A helpful tool for determine the level of cover needed is the life insurance calculator. This tool is readily available on the internet and lets you input figures for income, number of family members going to college, mortgage, and number of years you want to provide for the family. The calculator is simple to use and provides recommendations, based on inputs. It is important to think about the number of years the spouse will be able to work and the ages of children remaining at home.
Compare Life Insurance
The life insurance calculator can help you compare life insurance types, as well as the advantages and disadvantages of each. To compare actual policy offerings, you must measure the same types of cover, such as term life or whole life, for example.
Critical Illness and Mortgage Protection
Critical illness insurance is designed to help cover living expenses, should you become ill and require treatment lasting more than a couple weeks. It typically covers illnesses such as heart attack and cancer. Most policies pay one lump sum, though some may pay a monthly sum. This option can be used to take care of mortgage payments and is relatively inexpensive.
If the only expense you're concerned about is the mortgage, another solution is mortgage protection insurance. Some lending companies require people taking out home loans to purchase this type of cover. It typically pays off the mortgage and is often paid directly to the lender. This option can cost more than term life, but may be more suitable if the mortgage is still high. It tends to decrease in value over time.