Today’s financial pressures have many people looking for ways to reduce expenses and create an emergency fund. In pursuit of that goal, life insurance premiums seem like an easy tap to shut off now and turn back on later. But before you consider cancelling your life insurance policy, consider what’s at stake for you, your family and your practice. Below, we offer some options that let you avoid cancelling your coverage while still securing your financial future. What’s at stake Cancelling your life insurance policy has obvious and not-so-obvious consequences. Here are three risks that should make this a financial last resort: 1. You give up financial protection If you cancel your life...
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An insurance cover provides a safety net to our unpredictable lives. Most of us need an assurance that our family members will be taken care of in the event something were to happen to us. As a parent, nothing could be more important to you than your child's safety. Similarly, you would want to ensure family do not struggle in your absence, or because you suffered a permanent disability. This makes buying life insurance cover one of the most wise financial decisions we ever make. An insurance cover is more than just a source of income; it's an assurance that you cared. But how do we decide how much amount would be a good policy cover? Many people struggle with this question and often end up...
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Life Insurance: Par or non-par policies —what’s better for you? In life insurance, par or participative products are those which participate in the distribution of profits, better known as valuation surplus. Non-par or non-participative products are those which do not participate in profits. The profits are distributed in the form of bonuses and are payable only when the policy results in some form of claims, maturity or death. The par policies are costlier as there is bonus loading on premiums. If one has just started earning and has little financial resources to look after the dependents in case of very early demise, he should look at a non-par plan like term insurance. Here, a large risk...
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Life insurance is a financial product sold through insurance companies. In exchange for paying regular premiums, designated beneficiaries receive a death benefit upon the death of the covered individual. While many financial professionals agree that life insurance is an integral part of financial planning, the average person might not be clear on how life insurance can benefit them or whether they even need it. Let’s take a closer look at what you need to know about life insurance and how it might fit into your financial plans. What Is Life Insurance? At its core, life insurance is a contract drawn up between an insurance company and a policyholder. The contract stipulates that the...
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What’s Life Insurance and Why You May Need It By Stash Team Purchasing life insurance may seem like a no-brainer–it can protect your family and loved ones in the event that you unexpectedly pass away. But there are so many different plans and kinds of coverage to consider. It can all seem really confusing and expensive. Still, life insurance can be an important building block for your financial plan. And It can help you and your family achieve financial stability, while giving you some peace of mind. Also it may not be as expensive as you might think. Life insurance could be for anyone who: Has a spouse or partner, dependents, or aging parents who depend on them financially. Has a...
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Life Insurance pays a lump sum to your family or loved ones if you become terminally ill or pass away. Income Protection Insurance pays you a monthly benefit if you’re unable to work due to injury or illness. Depending on your circumstances, you may find that having one or the other, or a combination of both, could be beneficial for you. What is Life Insurance? Life Insurance offers a financial safety net for your family if you pass away or are diagnosed with a terminal illness. Once you take out your cover you’ll pay a regular premium to maintain it, and if you or your family need to make a claim, a lump sum will be paid out. If you’re the sole income provider for your family, you may find...
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Article content If you’re buying a home, it’s almost guaranteed that your lender will try to sell you mortgage insurance. This type of insurance would eliminate the outstanding balance of your mortgage if you were to pass away. The last thing you’d want is for your loved ones to be responsible for a massive mortgage if you’re no longer around. Article content While the concept of mortgage insurance is clearly beneficial, personal life insurance performs a similar function. The main difference is that life insurance isn’t tied to your mortgage, so it offers much greater flexibility. Understanding the difference between two products can help you select a policy that’s right for you. How life...
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Life insurance companies sometimes get a bad rap. I mean, who loves paying an extra bill each month, even if it’s for a good reason? However, when it comes to making good on their guarantee of financial protection for loved ones, they do almost always make good on their word. In 2016 alone, a staggering $670 billion dollars in life insurance benefits were paid out to beneficiaries, according to the Insurance Information Institute and fewer than 1% of claims were denied. That should make most breathe a sigh of relief and instill confidence that those monthly premiums are actually going towards the promise of your family’s financial security. But what about those claims every year that are...
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What is life insurance? A smart planning tool for your life Life insurance can feel complicated and overwhelming, but at its core, it's a pretty simple way to plan for the financial future of the people you love. Learning what life insurance is now can help you make informed decisions about the right ways to keep your family protected. agents know from experience how much life insurance can help people when they need it most, and they work with customers every day to help them understand what life insurance is, and what a difference it can make. Several State Farm agents have contributed their knowledge and experience to this article. Ken Quach, State Farm agent in Houston, Texas, explains...
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If the coronavirus pandemic has done anything, it has shown us that we never know what’s around the corner. So, while taking out life insurance might not be at the top of many people’s ‘to do’ list, it is arguably one of the most important financial products anybody can purchase. Over the past few months, thousands of people have lost loved ones tragically and unexpectedly, pushing them into financial hardship at an already difficult time. What is life insurance? Life insurance is designed to pay out a lump sum to your family in the event of your death, enabling them to keep up mortgage payments, bills, childcare costs and whatever else is required to maintain the lifestyle they’re...
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