It has become a general perception that buying a term life insurance policy for Rs 1 crore is adequate. But, is that enough? A term insurance plan is the purest form of life insurance. Getting a high cover at a less premium is possible only if you opt for a pure term insurance plan over any traditional insurance policy such as endowment or money back. But, if you are looking to buy a term insurance plan, keeping the right amount of life cover is equally important. Irrespective of the age and other requirements, many of us typically go with term insurance for Rs 1 crore. Even while calculating the premium using the term insurance premium calculator, the sum assured is generally kept at Rs 1...
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What is Life Insurance Life insurance is a contract between an insurer and a policyholder in which the insurer guarantees payment of a death benefit to named beneficiaries upon the death of the insured. The insurance company promises a death benefit in consideration of the payment of premium by the insured. BREAKING DOWN Life Insurance The purpose of life insurance is to provide financial protection to surviving dependents after the death of an insured. It is essential for applicants to analyze their financial situation and determine the standard of living needed for their surviving dependents before purchasing a life insurance policy. Life insurance agents or brokers are instrumental in...
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In reality, not everybody needs life insurance. However if your loved ones depend on your income for things like paying the mortgage and other living expenses, life insurance should not be something you completely ignore. At The Cheapest Life Insurance we understand more than most that having life insurance can provide comfort and peace of mind for you and your family during what could be difficult times. So in today’s blog we’re going to run through some of the reasons for having life insurance and what it could bring to you. Life insurance is a policy taken out with an insurance company that can pay your family or dependents a lump sum or even payments on a regular basis if...
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With guaranteed income plans, the guaranteed additions accrue over a period of time and are paid at the time of maturity, based on the duration chosen by the policyholder. Life insurance serves the purpose of safeguarding one’s financial needs when one is not around. Hence, you need to understand at what point in life you should opt for a life insurance cover. For instance, if you have dependents such as parents, spouse, and children, you should opt for a life insurance cover. However, if you do not have any dependent on you, generally there is no need to get a life insurance policy. With various types of life insurance policies available in the market, it also becomes difficult to...
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The engagement ring had barely slipped onto my finger before the baby questions started. Do you want kids? When are you planning to have them? I expect grandchildren within the year. That last one was more of a statement than a question, but you get the gist. My husband and I want kids. We love children and see them as a part of our future. But the truth is, we’re not ready for them just yet – emotionally or financially. My husband is in graduate school and for the past five years we’ve been hustling on our savings goals. Down payment? Check. Jumpstart on retirement? Check. Investment portfolio? Check. Putting money aside for our future helps us feel in control and optimistic about the days...
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Life insurance is for making good the loss in income for the family after an earning member’s demise or to cover the financial liabilities of an individual when he is not around. So, you need a life insurance cover only in the earning years. Given your age, you may not have a large financial burden now. Home loan/vehicle loan EMIs would already be over. And, after retirement, you may not have any dependants too; so, why bother about a life insurance policy? However, if you have made up your mind to buy a life insurance cover, you can go ahead. Many insurance companies, including ICICI Prudential, provide life insurance even for those who are 65. But note that the premium would be very high...
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When to Get Life Insurance Just exactly when is the best time to buy life insurance? The short answer is when you need it… and before it’s too late! The last thing you want to do is put off buying life insurance until you get diagnosed with an illness that could make you uninsurable. You would be surprised to know, every day we receive a call from someone who just got a cancer diagnosis and now they want to buy life insurance. There is an old saying that states, “You can’t insure the house when the garage is already on fire!” The same holds true with buying life insurance. There are actually many reasons why people should consider the purchase of life insurance. Most people...
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Purchasing Life Insurance For Someone Else While buying life insurance for someone else is possible and legal, there are restrictions that must be followed. You cannot purchase life insurance for a total stranger, or for someone else without their knowledge. Customers often ask us, "Can you take out life insurance on another person?", "How to get life insurance on a family member?", "Can I buy life insurance for my parents?", "How to take out a life insurance policy on someone else?" - the answer to these common questions can be found below. To purchase life insurance for a family member (i.e. parent ) or child, you must be able to show that your have an "insurable interest." This simply...
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If you’ve followed Dave Ramsey for any amount of time, you know he’s not too big on cash value life insurance. In fact, he hates cash value and never recommends it. When it comes to insurance, Dave Ramsey always chooses term life insurance vs. whole life insurance. But what are some mistakes to avoid when deciding on the types of term life to purchase? Our friends at Zander Insurance recently put together a brief list to help you make that decision. Here are five mistakes people make when buying term life insurance. Buying Too Little to Replace Income Always buy ten to twelve times your income in life insurance coverage. That small policy you’re getting through work, which...
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How to get better life insurance rates after you buy a policy Shannon Lee - Last updated: June 18, 2018 If you already own life insurance, you may think your life insurance rate is set in stone. Think again. You might not realize that your premium can decrease if you meet certain guidelines for reconsideration. Requesting an evaluation of your current life insurance premium is a good idea if your health has significantly improved since the policy went into effect. Improvements that can lead to better life insurance rates include healthy blood pressure readings, improved cholesterol values, improved liver function and sustained weight loss, among others. "If you currently own a life...
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