Life Insurance Policies - Top Tips From The Industry ExpertsDocument Transcript
Life Insurance Policies - Top Tips From The Industry Experts
Probably all the insurance specialists will tell that getting a life insurancepolicy is the proof that the person is creating a solid financial plan. Why isthat? In the following article we will begin by offering few reasons related tothe importance of a life insurance policy.If you are not at all familiar with this domain, it is very important that youget proper advice from a person that is ready to work on your benefit,without having any hidden secondary purposes. What I mean is that youshould contact a life insurance broker who will work on your side, searchingthe market, giving you the answers to all your questions and assisting youin any important life insurance related decision.You can find a reliable life insurance broker if you ask your friends, familymembers or if you simply read about other people’s experiences. People usediscussion forums to write and explain their past experiences and youshould learn from them. To begin with, check out the leading Romanian lifeinsurance broker at the asigurare de viata website; the web page includesprecious advice and free information.First of all a life insurance policy replaces income for dependents. In manyfamilies members depend financially on the income that a certainindividual is earning. If that person dies, insurance will replace thatincome. I am talking here about parents that have younger kids who arecompletely dependable on their mother and father income. But the policycan be of great help for couples when of the partners dies and theremaining one is severely affected by the loss of income.Then, life insurance can pay for the costs associated to your funeral andburial and can also cover administration costs, debts or medical expenses incase they are not addressed by the health insurance policy.
When you have signed a life insurance policy, it can become an inheritancewhen you name certain persons to be the beneficiaries. So, you can chooseto pay the regular premium related to a life insurance policy and thusassure that your kids or anyone else that you mention as beneficiaries, getthe money remaining after your death.It is very possible that the beneficiary might be a charity institution and inthis case you can make a more substantial payment compared to thesituation in which you simply donate the cash equivalent of the premiums.In some cases, the cash gathered through a life insurance policy may beborrowed by the owner. In this case, we are talking about a source ofsavings.One of the types of life insurance policies existing on the insurance marketis the permanent life insurance policy. This type of policy offers lifelonginsurance protection. In case you die today, the insurer will pay a deathbenefit, in the same way you live longer than that. This policy allows you tosave money and this will make premiums to be larger compared to theother life insurance policy type, the term life insurance.Permanent life insurance means paying regularly a premium that remainsalmost the same over time; this is not true when we are talking about theamount of money that needs to be paid as a premium of a term lifeinsurance policy. Every time you renew the term policy, it is very possiblethe amount gets larger.Permanent life insurance policies are different and you can choose betweenfew types like: whole life, universal life, variable life and variable/universallife. It is important to realize the difference between the cash value and the
face value. The cash value is the sum of money that is available to you whilethe face amount is the sum that will be paid when you die.We are going to talk now about some of the benefits of buying a permanentpolicy. First of all, the premium is going to remain the same, no matter yourage or your health status. In the very same time, as stated before, thepermanent life insurance policy is a mean of saving money. You may evenuse the cash value to pay the premium.If something unplanned happens, you are permitted to stop or reduce thepremium. If you choose to borrow money from the insurer you will need topay the money back. You will be required to pay as well an interest, as inany other loan situation.If you are in the situation of filing an insurance claim, you first need to haveseveral copies of the death certificate. Then, call the life insurance broker ashe is the most entitled person to help you with it. He will help when itcomes to filling the papers and forms required by the life insurer. If you donot have a life insurance broker, then you need to contact the insurerdirectly. After you submit a legal copy of the death certificate, you willreceive a settlement.After that you should decide if you want to be given all the money at once,or you want the money divided in smaller portions, at specified dates in thecalendar. There is also the possibility that the company keeps the moneyand pays you an interest on a regular basis. This way the death benefitremains in their charge and will be passed unto another beneficiary at yourdeath.
There are some circumstances when the life insurance policy needs to bereviewed. In fact, specialists advise that every person should be doing thisat least once a year. If you have passed through a major life change, then itis time to call your life insurance broker and perform the necessary changesin the papers.You should consider a major event: your marriage or divorce, the birth of achild, you decide to adopt a child, you become seriously ill, you take on thefinancial responsibility of an aging parent, you buy yourself a new home,you refinance your house, you receive an inheritance.