Posts Tagged life
Who Should Buy Term Life Insurance?
There are a wide range of life insurance products that are floating in the market. Choosing the right life insurance policy involves assessing your particular situation and evaluating the right policy for you. It is imperative to choose the right life insurance that fits your bill or which can be customized to suit your particular needs.
Unlike whole life insurance, term life insurance is purchased to cover a limited term period. Term life pays the insured sum only when the insured dies within the time span of the policy. Term life policies do not accrue any cash value. So if you live past the length of the policy, you won’t receive any money. It is also important to understand that premiums for term life policies may not be fixed, and may increase from time to time. To avoid this, be sure to look for a guaranteed level premium term life insurance policy. These policies guarantee a level premium throughout the term period.
Different Types of Life Insurance: Which One is Right For You?
Life insurance is a great way to protect your family financially should anything ever happen to you. You may want to consider getting a life insurance policy if you are married, have children, or other people depend on your income for support.
There are a number of different types of life insurance policies available, and finding which one is the best for you and your family can be a challenge. Here are some of the different types of life insurance policies out there.
Term Life Insurance
Stepped or Level Premiums for Life Insurance?
Stepped or Level Premiums for Life Insurance?
When looking for the right Life Insurance policy within Australia, it is important to consider which premium structure you would like to choose. Stepped premiums are great in the short term, though will end up costing you a lot more in the longer term.
“When discussing with clients, I always ask for how long they see themselves needing life insurances and income protection.” says Peter Kaleta Principal Adviser from Life Shield. ”If the answer is ‘long term’ (greater than 5-10 years), then it is worth considering a level premium structure for their new policy.”
Normally you are only told about stepped premiums as these are the cheaper option, at least initially and therefore is easier for the broker to ’make the sale’. Stepped premiums are re-rated each year at renewal as per the client’s age and therefore the cost goes up. The older you get, the higher the increase is. The problem here is, that once you are in your fifties and even sixties, the cost of your insurance becomes so high that often clients are forced to either reduce their benefit or cancel the cover all together. This potentially leaves the client without the required cover at a time when they need it most.