Monday, December 18, 2006

Get A Life Insurance Quote Online

The technical definition of life insurance is a system that provides compensation in case of the individual’s demise. In other words it means having a back up in case you or the person insured dies. This is in terms of a sum of money that is then payable to the surviving nominee by the life insurance companies who provide these policies.

There are a number of people who mistakenly believe that buying a life insurance policy means inviting death and bad luck. In fact it is just the opposite. By buying a life insurance policy you actually secure your surviving nominees in event of your death. Life insurance policy is therefore a good thing to have.

This process usually begins by the life insurance quotes, many of which are obtained online. An applicant simply has to log on to the websites of the many life insurance companies and fill in the relevant details. You are also required to answer some specific questions that pertain to your health and medical history as well. However the first thing you need to do is actually decide which type of life insurance you need and what is the amount you require to insure yourself with.

There are basically two types of life insurance policies- Term life insurance policies and Cash back life insurance policies. Term life insurance policies are active as long as you pay the premiums. Cash back life insurance policies are those where you are assured of a sum on policy maturity.

Your life insurance policy sum is actually an amount that your family will receive and that will take the place of the loss of income that will result due to your death. This would mean that this sum would have to take care of some urgent and other important needs. The urgent needs would probably be the funeral expenses, final medical expenses, repayments of any loans and outstandings due to the insured name, any mortgages that need to paid off and such others. The important needs which may not be urgent but which would still be required would be the educational expenses of the children, the medical expenses of the surviving family members and the like.

If you are a single parent then it is all the more important to get a life insurance online quote at the earliest and buy the best and most suitable life insurance policy thereafter, Your life insurance amount is also decided by your economic and family situations. Your earnings and capacity to pay premiums will be taken into consideration along with the number of dependants you have and their ages.

Remember all Life insurance companies that offer you a life insurance online quote require very specific information regarding your medical history. Smokers are generally considered a high risk proposition for insurance companies and this increases the premium you would pay. Your age is also another very important factor. The higher the age, the more the premium payable as the quality of your life and your health generally deteriorates with age.

Once you decide on the two basic choices you can get your life insurance quote online. Run a search for the life insurance companies that operate in and around where you live. When you log onto the relevant websites you are asked some general questions like your name, age, gender, height, weight, usage of tobacco or nicotine, the amount of insurance you are seeking, mode of payment of premium etc, Click on the submit button. You will receive the life insurance online quote specific to your requirement.

If you are not happy to receive one quote at a time, there are many websites that provide you with multiple life insurance online quotes as well. This is a great way to get many online quotes from different life insurance companies and gives you a good choice. If you get your life insurance online quotes and find that they are too expensive you must review them. There are some ways to reduce your life insurance costs.

You can choose to buy one large life insurance policy instead of several. You can be a part of group life insurance policies which come cheaper. When you are searching for life insurance online quotes, enter your premium payment options as annual. You can save a lot here. Lastly make sure you shop online across several websites to obtain the best life insurance online quote there is.

Scott is a consultant at Life Insurance Quote Online, a directory listing site with all your life insurance and finance needs. If you have any other insurance questions please visit http://www.lespillets.com/Life_Insurance_Quote_Online.html.
By Scott Walker

Tuesday, December 12, 2006

Life Insurance - The Two Types Of Whole Life Insurance Explained

Life insurance is a topic that's incredibly confusing for many people. There are many terms and provisions to learn and understand before purchasing a policy and most people aren't certain what type of policy or how much insurance coverage they actually need. Another worry is that many people are also aware that the person selling them their policy is also a commissioned salesperson. Although most insurance agents have a squeaky clean record of dealing with the public in a professional and ethical manner, there's really no way for you, the consumer to know this at first contact or introduction.
When purchasing anything, it's best to get familiar with that item before you spend your hard earned money, whether you need it or not. Think about it, if you were buying a new car, and were considering a make or model that you'd never owned before, wouldn't you want to find out everything that you could about that vehicle before you went to see a (gulp) salesperson?
You'd want to see how spacious and comfortable it is, check the colors available, see how many miles per gallon it got and more before you made a buying decision.
Purchasing life insurance is no different than buying a vehicle or any other item. You want to find out all that you can about it before you open your wallet or purse. Here are descriptions of the two most common types of Whole life insurance designed for consumers.
Whole Life Insurance - Whole life is also known as "Straight Life" and is designed to do exactly what it says, that is, cover you for your "whole life" or up until you reach the age of 100 years old. Whole Life policies pay what is known as the "Face Value" either upon the death of the insured or when the insured person reaches 100 years. Face Value is the amount that the policy is for, example, a $100,000.00 policy has a Face Value of $100,000.00.
There are two different types of Whole Life Insurance that are most common. Those are called Limited Payment Plans and Continuous Premium Whole Life.
Limited Payment Whole Life means that you would want to pay off the policy early. For example, you could set up a policy called "20-Pay Life" where you would pay off the policy over a twenty year period. In the end, you'll pay the same amount of premium as with the Continuous Payment Whole Life, but your policy will accrue a "Cash Value" much faster. This Cash Value will be smaller than the policy Face Value after you've initially finished the payments, but it will grow rapidly afterword. You can take loans against this Cash Value if you wish, but they must be repaid.
As with other types of Whole Life insurance, part of your premiums paid will go to purchase insurance and the remainder will go toward Cash Value.
The other most common type of Whole Life insurance is called Continuous Premium Whole Life. With a Continuous Premium Whole Life policy, you pay out the premiums over your Whole Life or until age 100, as explained above.
Cash Value builds slower in this insurance policy, compared to the Twenty Pay Life plan, however, the premiums are much lower and you may still take out a loan, if needed, against your Cash Value accrued.
Whole Life insurance is considered to be "permanent" insurance because the policy covers the insured for their "whole life". by Joe Stewart

Life Insurance - How Much Is Enough? Here Are A Few Things To Consider

Many people don't care to talk about the topic of life insurance, because to them, it's to "morbid". Well, it is morbid. It's never pleasant thinking about how life would be for you if you lost a loved one, however, these things do happen every day and the statistics don't lie. It's simply a fact of life. At some point in our lives this is something that most of us will have to go through. Doesn't it make sense to be prepared for it rather than be placed in an overwhelming situation by waiting until it happens?
One thing that makes buying life insurance so complicated for many people, is the question of "how much do I need"? Now, to much is never a bad thing as there are always going to be unexpected expenses that will pop up, but the amount that you'll need to purchase is going to depend on several different factors. These will vary depending upon certain factors and also whether the person being insured has a family or not. Below are a few things to consider before purchasing life insurance.
Are You Married Or Single? - Obviously, there's going to be a different level of resonsibility (in most cases) between a married person and a single person. Single people would need coverage for their final expenses, such as paying for their funeral. This alone can run up into the $7,000-$10,000.00 range these days, with most of that cost being for a casket. You can purchase a burial policy by itself if you have no other expenses to consider. This can be a huge burden for a family member that ends up with the remaining bill of an uninsured person, be it parent, child or sibling. They not only have to go through the grief of a lost loved one, but also the added financial burden that was unexpectedly placed on them.
Personal Debt - You'll also want to have enough coverage in order to repay any outstanding personal debt that you may have. This is especially important if you've had someone co-sign on a loan for you as they would be fully responsible for repayment in the event of your death.
There are many different variables to consider for married couples. Do you have children? If so, how many? Do you want them to be able to attend college? What are their ages? Are you the breadwinner (primary source of income) in your household or do you and your significant other share expenses? Do you currently have a mortgage or do you rent? Do you have outstanding debt? If so, how much? What is it for? Is it secured or unsecured?
There are many more questions to be answered here, but let's just assume that you are the breadwinner and your wife works part time and is a homemaker the rest of the time. Let's also assume that you have two children. You have a mortgage, car payment, some credit card debt and have financed some household furniture.
I want to keep this as simple as possible just because each person's situation is going to be different, but in this case, you would need enough coverage to support your wife and children at least until the kids turn age eighteen. You'll also need enough to repay any personal debt that you currently have. You could purchase a seperate decreasing Term Life policy called "Mortgage Life" and other specific policies such as "Credit Life". These would pay off any outstanding debt that you may have.
You would also want to sit down and figure out your basic household expenses. These include utilities, food, misc household items (toiletries, cleaning supplies, ect.), insurance premiums (car, life for wife and kids, homeowners, dental, medical ect.), savings, gasoline, clothing, school expenses, emergency fund (car repair, ect.) and anything else that may not be listed here.
If you've read this far and don't have any insurance, you may have just received a slap back into reality. It takes a lot of money to pay for our most basic daily, weekly and monthly expenses. Do you have the coverage that you would need to have in the event of an unexpected tragedy? Something to think about. By Joe Stewart