Why Do People Buy Children's Life Insurance?

Children's life insurance is a kind of stable or whole life coverage. This means, the insurance policy will accrue cash value within a specific period or determined time. Kids are not permitted (not mention able to) buy it, so parents or guardians can buy this type of insurance on behalf of their kids.

In respect to this life policy, it is better to buy it for your kids in their infancy stage and when they are in good physical condition. Parents or guardians prefer buying kid's life insurance policy, since it insures and protects their child, even if their physical condition changes. However, at the same time, kid's life insurance policies accumulate a cash value that parents or guardians can use for college expense of their kids.

Several insurance companies guarantee extra insurance policy, when the kid reaches certain age. They offer this added policy without undergoing medical assessment. The main benefit is, if the kid faces health problems and that makes insurance pricey or unavailable, he would still have the insurance coverage made available to him.

Some of the features of kid's life insurance policy include:

    It accrues Cash Value.
    Premium Stay Level
    Offers Permanent Protection
    Useful for college expenses in the future


Why Do Individuals Buy Children's Life?

Mostly, individuals purchase life policies to ensure that, the future of their dependents is secured after their death. Then, what is Children's life insurance policy? This is for the child to ensure protection against future expenses. This is very much similar to a company's provision for unforeseen events, where certain amounts are set aside for future expenditures.

It is strongly advisable on the part of life providers to obtain children's life policy for a child. This kind of life insurance policy is cheap and very helpful, if bought when the kid is in adolescent state. Remember, the kids will obtain the advantages of accrued cash value depending on the insurance policy that individuals opt for.

If individuals choose kid's life policy, they can assure that their kids are widely covered under any generative diseases, which may have serious effect on them later. It is also better to consider other reasons for purchasing policies for the kids. Individuals can use this life insurance amount for their higher studies, college expenses or overseas education.

Conclusion:

Children's life insurance policies involve considerable amounts of money. Hence, individuals have to be very cautious. A good and reliable insurance agent offers essential facts, so that individuals can select the desired policy. With kid's life insurance policy, time is surely on the individuals' side. They have ample years and decades to make a solid financial basis for their kids.

Children's Whole life insurance policy is an ideal tool to make such strong financial foundation, because it is easy and sensibly priced. In case, individuals wish to buy affordable life plans, then consider the kid's term life insurance policy, as this is much cheaper than whole life policies for children.

Insurance Policies For Students and Teenagers

When a teenager gets a license, it’s probably the first time he or she focuses on insurance. And as young people graduate from high school and head off to college or enter the working world, there are lots of insurance matters for young people out on their own for the first time to think about.

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Teenage drivers represent the highest risk segment of the population and are involved in more serious and fatal accidents than anyone else. From the insurance company’s standpoint, high risk requires a higher insurance premium. Teenage drivers can add anywhere from 50 and 100 percent to the cost of a family’s auto coverage. Generally, it is cheaper to put a teenage driver on the family policy. Driver education and good student discounts can take the sting out of that to some extent. Many states have graduated driver licensing programs which phase in driving privileges and give teens driving experience under controlled conditions allowing young drivers to demonstrate good driving habits and gain experience. Pick a safe car to drive – the model chosen greatly affects the cost of insurance. If a college student does not have a car during the school year (many schools restrict cars on campus for the first couple of years) and attends a school at least 100 miles from home, tell the insurance company. Rates may be lowered significantly for the period the student is not at home.

HOME

There aren’t many “student homeowners.” But they have “stuff” that needs protection, which usually comes through homeowner or renter insurance. If a student lives at home, or in a college dorm, their personal possessions, including a computer, stereo, television, clothing and such items are covered by the family’s policy. If they have any items of exceptional value, it’s a good idea to have a separate endorsement on the policy. If a college student lives off campus, the family policy will probably not cover them. They should consider purchasing separate renter insurance.

LIFE

Life insurance protects a family’s way of life. As students approach college, not only are families focused on how to pay for it, they should also be thinking of how to keep things on track if tragedy strikes. Life insurance, whether whole life or term, is one way to ensure that resources will be there for your student to finish college if something happens to one of the family breadwinners. At a minimum, families should think about a limited policy that would cover burial expenses if a child is killed in an accident.

HEALTH

In most cases, a full-time student will be covered in the family’s health plan until he or she graduates from college, or remains a full-time student up to 23 years of age. However, if the parents belong to a closed-network HMO that doesn’t provide non-emergency coverage in the school’s area, a separate policy for the student should be considered. Most colleges have a clinic on campus and may offer supplemental insurance as well. If a child gets sick and has to temporarily drop out, parents might want to consider having tuition insurance. Otherwise, even though the child has left school, the family may be on the hook for the tuition.

DISABILITY

Disability coverage provides for lost wages in the event you are injured and unable to work. Most part-time jobs do not include such benefits, so disability insurance is unlikely to be provided by employers to students who work while going to school. For parents who are paying for their children’s college education, disability insurance would ensure that resources are there should the primary wage earner become disabled and be unable to work.

LONG-TERM CARE

The younger and healthier one is, the less paid for insurance. But long-term care insurance is generally not an insurance priority for a young student unless there are extenuating circumstances.

FINANCIAL PLANNING

Helping your student establish a solid financial foundation -- managing student loans, credit cards and day-to-day finances -- will help them in many ways, including getting insurance at the best possible rate. In many states, insurers use information from credit reports, along with other underwriting factors, to help determine who qualifies for insurance and what they pay. As a result, it’s important to avoid graduating from college and burdened by consumer debt in addition to student loans. Establishing a budget is a good first step. Parents may want to set up a debit card account for their student. Cash can be added conveniently to the account when needed, and expenses can be reasonably monitored.

Getting Old? Here Are Insurance Policies For Senior Citizens

By the time you retire, your accumulated wealth is probably at its height. The challenge now is to manage your assets so that they last as long as you do. Insurance still plays an important role at this stage of your life.

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Mature drivers are some of the safest on the road. They have fewer accidents and tend to drive safer cars. Some insurance companies give discounts to drivers between the ages of 50-70. As drivers age, however, their abilities change. Older drivers, those 70 and older, have higher rates of fatal crashes, based on miles driven, than any other group except very young drivers. These older drivers should expect to see their rates begin to rise. Many states mandate discounts for seniors who have successfully completed driver refresher training.

Seniors are the most experienced drivers on the road. And mobility is vitally important to this group, particularly where public transportation is not readily accessible. Yet, as a group, older drivers, particularly after the age of 70, are involved in more serious accidents. Because of their age, they are increasingly vulnerable to serious injury. In most cases, seniors themselves, sensing that their physical skills are not what they once were, begin to restrict their driving – limiting themselves to daylight hours and familiar roads, for example. And while many states require more frequent vision and, if necessary, driving tests later in life, it appropriately should be an individual and family decision when it is no longer safe to get behind the wheel.

HOME

Unlike auto insurance, where the state sets minimum coverage limits, the bank that holds your mortgage usually requires you to have homeowners insurance. Once you pay off your mortgage, it’s still important to have protection in case of fire, burglary, and natural disasters. Many insurance companies provide discounts for retirees, because they spend more time at home; take the time to properly maintain their property; and are more likely to act promptly to correct small problems before they become big problems.

Some retirees stay active by working part-time. If you work at home, you may need a supplemental liability policy that covers your work-related activity. Consider also an umbrella policy to protect your accumulated assets. Real estate, securities, and savings could be wiped out by one lawsuit. Umbrella coverage adds another layer of protection above what is provided in your standard homeowners and auto policies. Generally, it is relatively inexpensive, and provides an additional million dollars or more in liability insurance.

LIFE

Life insurance is cheaper the earlier in life it is purchased. Retirees can still get life insurance, but should be prepared to pay much more for it. For those who already have coverage, premiums will generally move higher as existing term insurance reaches the end of a set policy period and is up for renewal. Cash value coverage tends to have a set premium that was locked in years earlier. In order to preserve the benefit for a surviving spouse, it is necessary to continue to pay the premium.

HEALTH

Most people under 65 get group health insurance through their or their spouse’s job. Group health insurance costs less than individual health insurance. Most people who are 65 and older get insurance from the government. Hospital Insurance helps pay hospital bills; and Medical Insurance helps pay for doctor bills.

Individuals who are still working and not covered by a employer-provided group health plan, need these insurance policies. It’s best to keep the coverage for as long as possible. Some employers may not continue health care coverage for long-time employees when they retire.

LONG-TERM CARE

Long-term care insurance is purchased from private insurers. It is designed to pay for the many services needed by people who suffer from chronic long-lasting illnesses and need regular care, usually in a nursing home, but in some cases in-home care. For those who have this coverage, at least two activities of daily living, such as bathing, eating, dressing, continence and mobility, and/or cognition must be lost in order for the coverage to take effect. While this primarily affects the elderly, a substantial number of cases involve people under the age of 60.

FINANCIAL PLANNING

Married retirees need to review their financial situation and determine how much income a surviving spouse would lose. Such income losses frequently result from reductions in Social Security payments. For example, a husband may receive $1,500 a month in benefits while his wife gets $1,000 a month, for a total of $2,500 a month. If the husband dies, his widow would get his $1,500 payment but she would lose her $1,000 payment. That could be a 40% reduction in family income. A substantial loss of income also can result from reduction in pension or annuity payments. The investment strategy for seniors should emphasize income-producing and liquid instruments that can supplement retirement income.

Raising Children? Here Are Your Insurance Policies

Children are the future. We need to plan for their future and we need to protect it. As the saying goes, it will be here before we know it. A family’s insurance and financial needs will grow and change over time as we take steps to manage our finances; and protect our property and lifestyle against significant changes in our life or health.

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As the children grow up, families spend more time in the car – or so it seems – dropping kids off at school, driving to basketball or soccer games and other youth activities. But, as parents, we tend to become more careful behind the wheel and generally enjoy lower insurance rates. The family car is not likely to be a Ferrari, but a mini-van, which is less costly to insure. It’s important to pay attention to the children’s safety. Infants should ride in car seats that are properly installed. Youngsters should sit in the back and wear seatbelts. Parents should set a good example, even if the police don’t write tickets for non-use of seatbelts as a primary offense. The insurance industry supports the presence of side and smart air bags, which are less likely to cause injury if deployed and more likely to save lives in the event of a serious accident.

HOME

With children, we acquire more “stuff,” particularly electronic equipment. Between homework research on the Internet and after-school relaxation, we now tend to have multiple televisions, computers and stereos in the house (with the volume too high). Make sure your homeowner’s insurance keeps pace with a growing family. The larger the home, the more it will cost to insure it, because the insurance company is assuming more risk. Consider inflation protection so that the homeowners insurance automatically rises with property values in your region. Safety features such as alarm systems, smoke detectors, strong doors and deadbolts not only keep the family safe, they save money because they reduce the likelihood of insurance claims. If you plan to add a family dog, check with your insurer before bringing home an aggressive breed. If you have a backyard pool, trampoline or swing set, consider increasing your liability coverage through an umbrella policy in case someone is injured while playing on your property.

LIFE

Couples should take a close look at life insurance once children arrive. This is when it hits home that others are depending on you and your income. You want to be sure the family has the resources to maintain the home and have all the opportunities you want them to if you are not there. If you don’t have a strong savings program, a small life insurance policy on your children may make sense.

HEALTH

Most people get their health insurance through an employer. These plans include family members. Medical inflation is rising dramatically today and employers are increasing the amount they expect workers to pay as they cope with health care costs. Families with two working spouses should compare coverage, co-pays and costs and choose the best mix that offers the best coverage for the least amount of money.

DISABILITY

When you are a relatively younger, you are four times more likely to be disabled than to die. Thankfully, neither one is likely, but it is something to strongly consider, particularly if your lifestyle would be threatened if you are physically unable to work. Most large companies offer group disability coverage. Small companies may or may not have similar coverage.

LONG-TERM CARE

Middle age is the best time to consider whether to buy long-term care insurance. This is when you will most likely to be eligible and when the premiums will be the lowest. A healthy 65 year-old person can expect to pay between $2,000 and $3000 a year for a policy that covers nursing home and home care.

FINANCIAL PLANNING

If kids were born with a price tag on how much they cost through age 21, we’d undoubtedly have a moment of sticker shock. But once children come into our lives, it’s time to really get serious about a savings program. A major issue for families with children is how to best prepare to send the kids to college. The cost of tuition and room and board for four years now approaches $40,000 for public universities and exceeds $73,000 for private schools. In general, most students qualify for some kind of financial aid. But the current budget squeeze is requiring schools to raise tuition to close budget gaps, so costs are increasing in double-digits in many cases.

There are a variety of plans available that are geared towards educational expenses. Depending on qualifying levels of income, contributions to these accounts may be tax deductible. In both cases, money grows tax-deferred. In both cases, proceeds are not taxed if used for qualifying educational expenses. Parents serve as custodians during the early years, but when your kids reach the age of 18, the money is theirs and they can spend it any way they want.

Insurance Policies For Married Couples

The joining together of two lives is joyous. It’s also nerve-wracking. There are a number of adjustments couples have to make when thinking and planning for two. They may need financial protection they haven’t worried about before, because spouses now depend on each other for support. In merging two households and perhaps two careers, there are choices that couples may need to make as to which spouse has the best existing insurance coverage.

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Young single people tend to pay higher rates for insurance. Good news, when two people get married, they probably qualify for a discount. Couples may well bring two cars into the relationship and two insurance companies. Review existing coverage and see which company offers the best combination of price and service.

Your driving ability may not be all you have to worry about. At some point, couples may need to participate in a family decision in helping parents or in-laws decide when they should stop driving. Driving ability is not strictly a matter of age. There are middle-aged drivers who are terrible and there are older drivers who are highly skilled and perfectly safe. Yet, as a group, older drivers, particularly after the age of 70, are involved in more serious accidents. Because of their age, they are increasingly vulnerable to serious injury. Many seniors themselves decide as they get older to limit their driving to daylight and roads they are familiar with. And while many states require more frequent vision and, if necessary, driving tests later in life, it often falls to the children to help parents decide when it is no longer safe to get behind the wheel.

HOME

When buying a home, the insured value of the house will be less than the market value. Don’t be alarmed, because there is no need to insure the land the house rests on. The insured value needs to be sufficient to repair or replace the home if there is a major disaster. Over time, be sure that the coverage keeps pace with additions or major improvements that increase the value of the home – and the cost of repairing it. Set the deductible on the policy – the amount the homeowner is responsible for before insurance is triggered – as high as your financial circumstances allow. The higher the deductible, the less the coverage will cost. A higher deductible can also mean fewer claims, another important factor in the cost of coverage.

Ironically, homeowners or renters insurance questions frequently begin when couples buy engagement and wedding rings – things of actual as well as symbolic value – or accumulate expensive household items. A standard homeowner policy includes a limit (usually a fixed percentage of the broader coverage) on personal possessions, so an endorsement or floater may be needed to cover high value items. Merging two households presents a good opportunity to do a home inventory. This helps couples understand what their insurance coverage needs are – and provides have a record of what to claim if a real disaster strikes.

When arranging homeowners insurance, one important decision involves replacement cost versus actual cash value coverage. Replacement cost is what it suggests. It pays the dollar amount needed to replace a damaged item with one of similar kind and quality. Actual cash value covers the amount needed to replace the item, minus depreciation.

LIFE INSURANCE

Becoming a couple means sharing responsibility with and for someone else. Both spouses may work, building a lifestyle that depends on two incomes. There will be loans and other debts to pay off. At this stage, it makes sense to protect what you have. Life insurance is a traditional way of ensuring that the surviving spouse is taken care of in the event of a tragedy.

The primary purpose for life insurance is to provide a spouse, children or other beneficiary with resources in the event of the premature death of the other spouse. There are two basic types of life insurance:

Term insurance provides a simple death benefit for a fixed period of time. There are several different types of term insurance – renewable, convertible, level, decreasing and increasing term coverage. The premium may stay the same for many years. However, when the stated term expires, the premium can go up; and Cash value insurance, as the name implies, provides permanent protection as long as you pay the premium. The premium does not increase over time. The younger a person is when buying the policy, the lower the premium will be for the life of the policy. But because premiums remain level, cash value coverage tends to be more expensive than term insurance. There are different types of cash value or permanent insurance as well – whole life, universal life, variable life and variable universal life insurance.

HEALTH

Most people who work full-time get health insurance through their employer. Along with bringing two lives together, if both spouses work, the marriage also brings two health insurance plans. These health plans frequently include dependents.

Medical inflation is rising dramatically today and employers are increasing the amount they expect workers to pay as they cope with health care costs. In certain cases, they may not cover a family member who has another health care plan. If you have a choice, families with two working spouses should compare coverage, co-pays and costs and choose the best mix that offers the best coverage for the least amount of money.

DISABILITY

Should a sickness or illness prevent one spouse from earning an income in his or her occupation, couples can face severe economic impact. Many employers offer an option of disability coverage. Typically, disability insurance is designed to replace anywhere from 45-60% of gross income. If the employee pays for disability coverage, insurance proceeds are tax-free. However, if the company pays for the coverage, this is viewed as a benefit and it is taxable.

LONG-TERM CARE

Each year, the elderly population continues to grow. Due to advances in modern medicine and life-style changes, the number of people over the age of 65 is projected to double by the year 2050. Unfortunately, as people age, they are more likely to suffer from chronic illnesses such as strokes or Alzheimer’s or the aftermath of strokes. Statistically, people over the age of 65 face a 40% risk of entering a nursing home for long-term care services. Long-term care safeguards couples from losing their most important asset -- the home -- if either one gets sick and must be cared for. Middle age is the best time to consider whether to buy this insurance. Premiums will increase as individuals reach their ‘60s and ‘70s. This coverage must be purchased before the age of 80. A healthy 65 year-old person can expect to pay between $2,000 and $3,000 a year for a policy that covers nursing home and home care.

FINANCIAL PLANNING

 At this stage, financial goals may include both saving for retirement and saving for a specific purpose. Some investments can be long-term. Others perhaps need to be more liquid. For example, newly married couples may want to save aggressively for a home. If both work, one strategy might be to live off of one salary and save the other.

Joint income could put a household into a higher tax bracket, which places greater emphasis on means of deferring taxes on this income. There are a number of Retirement Account options. In 2003, both spouses can each put $3,000 into an account. Depending on a household’s adjusted gross income, these contributions may be tax deductible. The earnings grow tax-deferred until proceeds are drawn out later in life. The level of contributions will increase by $1,000 each in 2005 and 2008. However, with the exception of an account to fund a child’s college education, there is a hefty penalty for withdrawals before age 59.

Still Single? Here Are Your Insurance Policies

You are part of the work force and out on your own. Establishing a solid financial foundation should be a priority, including insurance in the mix. It’s important to understand what affects the cost and availability of insurance. If you have accidents, insurance will increase in cost. Financial instability, getting smothered by credit card debt, is frequently a predictor of future insurance losses. As a result, an insurance company may see additional risk, making it more difficult to get coverage at the best possible price. Conversely, if we take care of ourselves and protect what we own, insurers will see good insurance risks and are more likely to compete for your business.

AUTO

What you pay for auto insurance depends on several factors: prior claims; driving record, including speeding and other traffic citations in recent years; and the kind of car, how many miles and where you drive. For example, people who generally drive to and from work in or near a major city will tend to pay more for auto insurance than drivers who live in rural areas, have short commutes and primarily use their cars on weekends for pleasure travel. A car that is popular with thieves or has expensive repair costs will cost more to insure. You can lower your insurance premium by raising the deductible, installing anti-theft devices, and dropping collision coverage if it’s an older car.

HOME

People who rent their home often make the mistake of thinking that the landlord’s insurance covers their possessions in case of a fire or other catastrophe. Not true, you need your own insurance. Relatively inexpensive, renters insurance protects the things that you own. It provides liability coverage, protection from lawsuits resulting from harm that you, your pets or your family cause to other persons or damage to their property. Renters insurance also helps you establish a good insurance track record, or loss history. If you show that you are a responsible insurance risk, you’ll have no trouble getting insurance when you eventually buy your own place.

If you are living in a condo or coop, you depend on two insurance polices for protection: your own coverage and the insurance purchased by the condominium or co-op board for the common areas of the property that you share with the other owners, like the roof, basement, elevator, boiler and sidewalks. The condo or co-op association may be responsible only for insuring a unit up to its bare walls, floor and ceiling. The owner may have to insure kitchen cabinets, built-in-appliances, plumbing, wiring, bathroom fixtures and so on. Read the association’s bylaws and/or proprietary lease to better understand where the association’s responsibility ends and yours begin.

If you’re buying a home, and have a mortgage, in most cases you will need to purchase homeowners insurance. The cost will vary according to the size and construction of the home; where it is (proximity to the coast or other natural hazards, e.g. fault line, wildfire zone); fire safety features; anti-theft devices; and the property’s loss history. Insure your home for the cost of rebuilding it, not the market price. And make certain that the value of your insurance policy is keeping up with increases in local building costs.

LIFE

Your parents probably have life insurance which will be part of their estate. But now that you are on your own, you have to think about your own insurance needs. When you are young, your life expectancy is high, which means the cost of life insurance is low. Life insurance becomes increasingly important if you have others who depend on you, including aging parents.

HEALTH

Once you are out of school or older than 23, your parents’ health plan won’t cover you. As you sort through job prospects, it’s tempting to go for the opportunity that puts the most dollars in your pocket. Health coverage is perhaps the most important job-related benefit you can get. Many companies have coverage through a managed-care plan, which means that many decisions, including which physicians are included in the network, are made by the healthcare provider. Others have more flexible plans that allow their employees to choose their physicians. In both cases, the employee is responsible for some co-payments which help keep costs under control.

DISABILITY

When we are young, we feel indestructible. In fact, at this stage, we are four times more likely to be disabled than die. Many employers offer an option of disability coverage, which provides for lost income if you are injured as a result of non-work activities and unable to work. Most large businesses offer disability coverage. Smaller businesses may not. If the injury is work-related, then workers compensation coverage applies.

LONG-TERM CARE

The good news is we are living longer. The challenge is how we as a society will meet the expanded need for care for an aging population. In many cases, the immediate question is how to best care for aging parents. Increasingly, late in life, children serve as guardians for their parents. There are many options for custodial care, ranging from in-house care to nursing homes. As a general rule, for everyone in your family, the earlier you consider buying long-term care coverage, the cheaper it will be.

FINANCIAL PLANNING

You may not be making a lot of money, but it’s probably more than you’ve had before. You have an apartment to furnish, a wardrobe to build and perhaps student loans to pay off. It’s also important to save money. Most financial experts emphasize that, even if you start small, becoming a saver or investor earlier in life and keeping it up during your peak earning years is very important. Put some money away regularly, even if it is only a small amount. Treat it as a bill and pay yourself along with your other obligations. This can be a rainy day fund or be for a specific purpose, such as a down payment on a home or car.

At this point, it’s also important to know what not to do. We live in a “credit-card society” and are bombarded with advertising that suggests we can have it all right now – the clothes, the car and the fast lane. It sounds old-fashioned, but living within your means is important. Maintaining a good credit rating will help you get the best rate when you apply for a home or car loan. It can help you get a better job or apartment. It can even save you money on your insurance.

Should I Buy Life Insurance On My Child’s Life?

The main reason for buying life insurance on anyone’s life is to replace income “lost” or pay for expenses caused by the death of the insured person. If your child dies, there’s no lost income, but there will be funeral, burial and related expenses that could run to thousands of dollars, which might cause a financial hardship to the parents of the deceased child.

Another reason for buying life insurance on a child’s life is to guard against the possibility that, when the child is older, he or she might not be able to buy life insurance because of intervening illness or other circumstance.

Still another reason for buying life insurance on a child’s life is part of a program to teach the child financial responsibility. Typically the insurance is whole life insurance, ownership of which is transferred to the child when he or she turns 21.

Most insurance advisors recommend that families spend their insurance budget to buy life and disability income insurance on the parents first, before considering insurance on children’s lives. Death of a parent, particularly an income-earner, could have financial consequences that are devastating compared to the financial effects from a child’s death.

How Do I File A Life Insurance Claim?

To begin the claims process:

Get several copies of the death certificate.

Call your insurance agent. He or she can help you fill out the necessary forms and act as an intermediary with the insurance company. Don’t keep life insurance policies in your safe deposit box. In most cases, safe deposit boxes are sealed temporarily upon the death of the owner, which can delay the settlement. If you don’t have an insurance agent, or don’t know who the deceased's agent was, contact the company directly.

Submit a certified copy of the death certificate from the funeral director with the policy claim. Once the claim is submitted, a settlement should be issued to you shortly. Once a life insurance claim is submitted, you must determine how the proceeds will be distributed. These are some of the options available:

Lump sum -- You receive the entire death benefit in a single amount.
Specific income provision -- The company pays you both principal and interest on a predetermined schedule.
Life income option -- You receive a guaranteed income for life. The amount of income depends on the death benefit, your gender and your age at the time of the insured's death.
Interest income option -- The company holds the proceeds and pays you interest on them. The death benefit remains intact and goes to a secondary beneficiary upon your death.

What Are The Different Types of Term Life Insurance Policies?

Term insurance comes in two basic varieties—level term and decreasing term. These days, almost everyone buys level term insurance. The terms “level” and “decreasing” refer to the death benefit amount during the term of the policy. A level term policy pays the same benefit amount if death occurs at any point during the term.

Common types of level term are:

Yearly (or annually) renewable term
5-year renewable term
10-year term
15-year term
20-year term
25-year term
30-year term
Term to a specified age (usually 65)

Yearly renewable term, once popular, is no longer a top seller. The most popular type is now 20-year term. Most companies will not sell term insurance to an applicant for a term that ends past his or her 80th birthday.

If a policy is “renewable,” that means it continues in force for an additional term or terms, up to a specified age, even if the health of the insured (or other factors) would cause him or her to be rejected if he or she applied for a new life insurance policy.

Generally, the premium for the policy is based on the insured person’s age and health at the policy’s start, and the premium remains the same (level) for the length of the term. So, premiums for 5-year renewable term can be level for 5 years, then to a new rate reflecting the new age of the insured, and so on every five years. Some longer term policies will guarantee that the premium will not increase during the term; others don’t make that guarantee, enabling the insurance company to raise the rate during the policy’s term.

Some term policies are convertible. This means that the policy’s owner has the right to change it into a permanent type of life insurance without additional evidence of insurability.

“Return of Premium”

In most types of term insurance, including homeowners and auto insurance, if you haven’t had a claim under the policy by the time it expires, you get no refund of the premium. Your premium bought the protection that you had but didn’t need, and you’ve received fair value. Some term life insurance consumers have been unhappy at this outcome, so some insurers have created term life with a “return of premium” feature. The premiums for the insurance with this feature are often significantly higher than for policies without it, and they generally require that you keep the policy in force to its term or else you forfeit the return of premium benefit. Some policies will return the base premium but not the extra premium (for the return benefit), and others will return both.

Why Should I Purchase Permanent Insurance?

A permanent life policy provides lifelong insurance protection. The policy pays a death benefit if you die tomorrow or if you live to be a hundred. There is also a savings element that will grow on a tax-deferred basis and may become substantial over time. Because of the savings element, premiums are generally higher for permanent than for term insurance. However, the premium in a permanent policy remains the same, while term can go up substantially every time you renew it.

There are a number of different types of permanent insurance policies, such as whole (ordinary) life, universal life, variable life, and variable/universal life. In a permanent policy, the cash value is different from its face value amount. The face amount is the money that will be paid at death. Cash value is the amount of money available to you. There are a number of ways that you can use this cash savings. For instance, you can take a loan against it or you can surrender the policy before you die to collect the accumulated savings.

There are unique features to a permanent policy such as:

You can lock in premiums when you purchase the policy. By purchasing a permanent policy, the premium will not increase as you age or if your health status changes.

The policy will accumulate cash savings.

Depending on the policy, you may be able to withdraw some of the money. You also may have these options:

Use the cash value to pay premiums. If unexpected expenses occur, you can stop or reduce your premiums. The cash value in the policy can be used toward the premium payment to continue your current insurance protection – providing there is enough money accumulated.

Borrow from the insurance company using the cash value in your life insurance as collateral. Like all loans, you will ultimately need to repay the insurer with interest. Otherwise, the policy may lapse or your beneficiaries will receive a reduced death benefit. However, unlike loans from most financial institutions, the loan is not dependent on credit checks or other restrictions.

How To Choose The Right Type of Life Insurance

Choosing the right type of life insurance can be confusing, but it’s also an important decision. Here are some guidelines that can help you narrow down your best life insurance options.

You should consider term life insurance if:

You need life insurance for a specific period of time. Term life insurance enables you to match the length of the term policy to the length of the need. For example, if you have young children and want to ensure that there will be funds to pay for their college education, you might buy 20-year term life insurance. Or if you want the insurance to repay a debt that will be paid off in a specified time period, buy a term policy for that period.

You need a large amount of life insurance, but have a limited budget. In general, this type of insurance pays only if you die during the term of the policy, so the rate per thousand of death benefit is lower than for permanent forms of life insurance. If you are still alive at the end of the term, coverage stops unless the policy is renewed or a new one bought. Unlike permanent insurance, you will not typically build equity in the form of cash savings.

If you think your financial needs may change, you may also want to look into “convertible” term policies. These allow you to convert to permanent insurance without a medical examination in exchange for higher premiums.

Keep in mind that premiums are lowest when you are young and increase upon renewal as you age. Some term insurance policies can be renewed when the policy ends, but the premium will generally increase. Some policies require a medical examination at renewal to qualify for the lowest rates.

You should consider permanent life insurance if:

You need life insurance for as long as you live. A permanent policy pays a death benefit whether you die tomorrow or live to be over 100.

You want to accumulate a savings element that will grow on a tax-deferred basis and could be a source of borrowed funds for a variety of purposes. The savings element can be used to pay premiums to keep the life insurance in force if you can’t pay them otherwise, or it can be used for any other purpose you choose. You can borrow these funds even if your credit is shaky. The death benefit is collateral for the loan, and if you die before it’s repaid, the insurance company collects what is due the company before determining what’s goes to your beneficiary.

Keep in mind that premiums for permanent policies are generally higher than for term insurance. However, the premium in a permanent policy remains the same no matter how old you are, while term can go up substantially every time you renew it.

There are a number of different types of permanent insurance policies, such as whole (ordinary) life, universal life, variable life, and variable/universal life. For more details, see our articles on the specific types of policies.

How Do I Choose A Life Insurance Company?

There are hundreds life insurance companies sell life insurance in Indonesia, but many are members of groups of companies and so aren’t really competitors with each other. Having separate companies enables a group to offer its products through separate distribution channels, to more efficiently meet the regulatory requirements of particular states, or to achieve other organizational goals. There are an estimated three hundred company groups.

Moreover, not every group has a company licensed to operate in each state. As a general rule, you should buy from a company licensed in your state, because then can you rely on your state insurance department to help if there’s a problem. And if the insurance company becomes insolvent, your state’s life insurance guaranty fund will help only policyholders of companies it has licensed. To find out which companies are licensed in any state, contact that state’s state insurance department.

There are several other points to keep in mind when selecting a life insurance company:

Product – most, but not all, companies offer a broad range of policies and features, so choose a company that offers the product and features that meet your needs.

Identity – life insurance company names can be confusing, and different companies can have similar names. Life insurance company names often use words that suggest financial strength (such as Guaranty, Reserve, or Security), financial sophistication (such as Bankers, Financial, or Investors), maturity (such as First, Pioneer, or Old), dependability (such as Assurance, Reliable, Trust), fairness (such as Beneficial, Equitable, or Peoples), breadth of operations (such as Continental, National, or International), government, or well-known and respected people. Be sure you know the full name, home office location, and affiliation (if any) of any company you are considering.

Financial Solidity – life insurance is a long-term arrangement. There is no guarantee for life insurance policyholders similar to that provided for bank accounts by the central bank. Select a company that is likely to be financially sound for many years, by using ratings from independent rating agencies.

Market ethics – some life insurance companies subscribe to the principles and codes of conduct of the Insurance Marketplace Standards Association, a nonprofit organization that promotes ethical conduct in life insurance marketing.

Advice and service – for many people, life insurance is a strange, complex product, so that it helps to deal with a representative with whom you can communicate and who is attentive to your needs. This might be connected to the selection of a life insurance company because some agents represent only one or a very few life insurance companies. See How do I select a life insurance agent?

Claims – you may want to check a national claims database to see what complaint information it has on a company. Also, your state insurance department will be able to tell you if the insurance company you are considering doing business with had many consumer complaints about its service relative to the number of policies it sold.

Premium and cost – The premium is the amount you pay the company for the life insurance contract with all of its benefits. Even for a given death benefit and type of insurance (e.g., term life), the premium can vary widely among companies, either because some companies’ policies have features that others don’t, or because some charge more than others for the same coverage. So the first step in comparing policies is to make sure you compare similar insurance plans, based on your age, the type of policy and policy features, and the amount of insurance you are purchasing

The premium for the policy isn’t the same as the cost of the protection portion of the policy. One policy might have a higher premium but also offer more benefits (for example, it might pay policy dividends) than another. Or both might promise dividends, but in different amounts at different points in time. In each case, the higher-premium policy might have a lower cost of protection. How can you tell what a policy’s cost is? Companies should tell you a policy’s Net Payment Cost Index and its Surrender Cost Index. Use the Surrender Cost Index if you’re thinking of keeping the insurance only for a specific period of time; use the Net Payment Cost Index if you expect to keep the policy indefinitely. Generally, the lower the cost index, the better.

How Should I Choose A Life Insurance Agent?

When you’re considering buying life insurance, it’s important to choose an agent or broker who can help you. Buying life insurance can be complicated or confusing. The key to buying the right amount and the right type of policy at a good rate is a good agent or broker. You should choose one who:

Understands your financial situation, including your attitudes about risk, your income and estate tax “brackets,” and your other financial assets and obligations, as well as your personal situation (that is, your age, marital status, dependents, etc.)

Explains, in terms you can easily understand, issues, options and planned use of life insurance in your financial program

Provides you with a personalized written document that records the facts of your current financial and personal situation and describes the features of the life insurance and how it fits into your situation

Doesn't pressure you into a decision, but works with you until you’re ready and convinced that you are doing what is best for you

Is prepared to review with you periodically—perhaps every three years or so—whether the product continues to be suitable for your needs and circumstances

Licensed by your insurance department

If you don’t have an agent or broker who fits this description, ask your accountant, friends, relatives and business associates for the names of insurance agents or brokers with an excellent reputation. An agent or broker who has one or more professional financial services designations has demonstrated a commitment to specialized education in the field.

The Compensation Issue

Like everyone else, agents and brokers get paid for their services, which are enriched by their education and experience. Most agents and brokers are paid by commission, but some work on a fee basis. Typically, the largest part of the compensation is paid at the time you purchase the annuity, since most of the agent’s or broker’s work occurs at that time or just before it. As with any professional service, you should understand how your agent or broker will be compensated and how that might affect the purchase recommendation.

The bottom line? The best way to protect yourself is to make sure you understand what you’re buying and the nature of the product’s limitations, penalties or fees if you want to drop the policy.

How Is Life Insurance Sold?

You can buy life insurance either as an “individual” or as part of a “group” plan.

Individual Policy

When you buy an individual policy, you choose the company, the plan, and the benefits and features that are right for you and your family. You might be able to buy the policy from the same agent or company representative who sells you property and liability insurance for your home, auto or business. And although you won’t qualify for any discounts by buying your life insurance and other insurance from the same representative, working with a single advisor for all your insurance needs can make your financial life simpler.

Individual policies are typically sold through insurance agents or brokers. If you buy a policy through an agent or broker, you will pay a commission, also called a “load,” that is built into the premium rate. The commission compensates the agent or broker for the time spent advising you on how much and what type of life insurance to buy, for facilitating the application process, and for any further service that’s needed in future years to keep the policy up-to-date (such as changing beneficiary designations, arranging policy loans or coordinating your financial plans with your lawyer and accountant).

There are two other ways to buy individual life insurance. In Indonesia, you can buy it from a savings bank. Or you can buy a policy directly from an insurance company or from a fee-only financial advisor—what’s known as a “no load” or “low load” policy. Although there is no sales commission on these policies, the company will still have charges built into the premium to cover its marketing expenses, application processing expenses and subsequent services. Finding an insurance company that will sell you a no-load policy isn’t easy; typing in “no load life insurance” on Internet search engines will in many cases lead you to an agent or broker.

Group Policy

You might have life insurance automatically from your employer; many large companies do this. Your employer also might offer you the chance to buy additional life insurance under a group policy. And you might be eligible to buy life insurance under a group policy from a union or trade association or other group you belong to (such as a college alumni association or an automobile club).

Compared to buying an individual life insurance policy, there are several advantages to buying life insurance under a group policy:

Group purchase can sometimes offer you a lower rate for a given death benefit either because the employer or other group sponsor subsidizes the premium or because the rates are averages weighted by people younger than you. There are virtually no health qualifications for getting the group coverage.

Premium payment is usually by payroll deduction (for employer-based group coverage) or linked with other payments (e.g., credit card bills), lowering the chance of missing a payment.

Most employer group plans are term insurance, but if you leave that employer your state may require that you be allowed to convert the policy to a form of whole life insurance with the same insurance company that provides the group life insurance. You would then pay premiums directly to the company and keep the insurance in force. This can be an advantage if you are older, or have experienced deteriorating health, as it gives you the opportunity to qualify for whole life insurance without having a medical exam.

Credit Life Insurance

Credit cards and lending institutions may offer life insurance to pay off your outstanding loans in the event of your death. This is generally made available in two ways

As part of the loan at no extra charge. In this case the cost of the life insurance is borne by the lender and is included in its interest rate or other finance charges. If you have this type of credit life insurance, you don’t need separate life insurance to pay off that loan if you die.

As an option at an extra charge. In this case, you should usually reject the optional coverage, provided that you have some other life insurance (group or individual) that can be designated to pay off the loan if you die. If you’re under age 50 and you don’t have other insurance that could pay off this loan, consider buying individual life insurance for this purpose as the rates will probably be better. At 50 or over (or younger with health issues), if you have no other life insurance for this purpose, the optional credit life insurance is likely to be cheaper than individual life insurance.

Why Should I Buy Life Insurance?

Many financial experts consider life insurance to be the cornerstone of sound financial planning. It can be an important tool in the following situations:

Replace income for dependents

If people depend on your income, life insurance can replace that income for them if you die. The most commonly recognized case of this is parents with young children. However, it can also apply to couples in which the survivor would be financially stricken by the income lost through the death of a partner, and to dependent adults, such as parents, siblings or adult children who continue to rely on you financially. Insurance to replace your income can be especially useful if the government- or employer-sponsored benefits of your surviving spouse or domestic partner will be reduced after your death.

Pay final expenses

Life insurance can pay your funeral and burial costs, probate and other estate administration costs, debts and medical expenses not covered by health insurance.

Create an inheritance for your heirs

Even if you have no other assets to pass to your heirs, you can create an inheritance by buying a life insurance policy and naming them as beneficiaries.

Pay federal “death” taxes and state “death” taxes

Life insurance benefits can pay estate taxes so that your heirs will not have to liquidate other assets or take a smaller inheritance. Changes in the federal “death” tax rules between now and January 1, 2011 will likely lessen the impact of this tax on some people, but some states are offsetting those federal decreases with increases in their state-level “death” taxes.

Make significant charitable contributions

By making a charity the beneficiary of your life insurance, you can make a much larger contribution than if you donated the cash equivalent of the policy’s premiums.

Create a source of savings

Some types of life insurance create a cash value that, if not paid out as a death benefit, can be borrowed or withdrawn on the owner’s request. Since most people make paying their life insurance policy premiums a high priority, buying a cash-value type policy can create a kind of “forced” savings plan. Furthermore, the interest credited is tax deferred (and tax exempt if the money is paid as a death claim).

Top 10 Life Insurance Myths

Life insurance is not a simple product. Even term life policies have many elements that must be considered carefully in order to arrive at the proper type and amount of coverage. But the technical aspects of life insurance are far less difficult for most people to deal with than trying to get a handle on how much coverage they need and why. This article will briefly examine the top 10 misconceptions surrounding life insurance and the realities that they distort.

Myth #1: I'm Single and Don't Have Dependents, so I Don't Need Coverage

Even single persons need at least enough life insurance to cover the costs of personal debts, medical and funeral bills. If you are uninsured, you may leave a legacy of unpaid expenses for your family or executor to deal with. Plus, this can be a good way for low-income singles to leave a legacy to a favorite charity or other cause.

Myth #2: My Life Insurance Coverage Needs Only Be Twice My Annual Salary

The amount of life insurance each person needs depends on each person's specific situation. There are many factors to consider. In addition to medical and funeral bills, you may need to pay off debts such as your mortgage and provide for your family for several years. A cash flow analysis is usually necessary in order to determine the true amount of insurance that must be purchased - the days of computing life coverage based only on one's income-earning ability are long gone.

Myth #3: My Term Life Insurance Coverage at Work Is Sufficient

Maybe, maybe not. For a single person of modest means, employer-paid or provided term coverage may actually be enough. But if you have a spouse or other dependents, or know that you will need coverage upon your death to pay estate taxes, then additional coverage may be necessary if the term policy does not meet the needs of the policyholder.

Myth #4: The Cost of My Premiums Will Be Deductible

Afraid not, at least in most cases. The cost of personal life insurance is never deductible unless the policyholder is self-employed and the coverage is used as asset protection for the business owner. Then the premiums are deductible on the Schedule C of the Form 1040.

Myth #5: I Absolutely MUST Have Life Insurance at Any Cost

In many cases, this is probably true. However, people with sizable assets and no debt or dependents may be better off self-insuring. If you have medical and funeral costs covered, then life insurance coverage may be optional.

Myth #6: I Should ALWAYS Buy Term and Invest the Difference

Not necessarily. There are distinct differences between term and permanent life insurance, and the cost of term life coverage can become prohibitively high in later years. Therefore, those who know for certain that they must be covered at death should consider permanent coverage. The total premium outlay for a more expensive permanent policy may be less than the ongoing premiums that could last for years longer with a less expensive term policy.

There is also the risk of non-insurability to consider, which could be disastrous for those who may have estate tax issues and need life insurance to pay them. But this risk can be avoided with permanent coverage, which becomes paid up after a certain amount of premium has been paid and then remains in force until death.

Myth #7: Variable Universal Life Policies Are Always Superior to Straight Universal Life Policies Over the Long Run

Many universal policies pay competitive interest rates, and variable universal life (VUL) policies contain several layers of fees relating to both the insurance and securities elements present in the policy. Therefore, if the variable subaccounts within the policy do not perform well, then the variable policyholder may well see a lower cash value than someone with a straight universal life policy.

Poor market performance can even generate substantial cash calls inside variable policies that require additional premiums to be paid in order to keep the policy in force.

Myth #8: Only Breadwinners Need Life Insurance Coverage

Nonsense. The cost of replacing the services formerly provided by a deceased homemaker can be higher than you think, and insuring against the loss of a homemaker may make more sense than one might think, especially when it comes to cleaning and daycare costs.

Myth #9: I Should Always Purchase the Return-of-Premium (ROP) Rider on Any Term Policy

There are usually different levels of ROP riders available for policies that offer this feature. Many financial planners will tell you that this rider is not cost-effective and should be avoided. Whether you include this rider will depend on your risk tolerance and other possible investment objectives.

A cash flow analysis will reveal whether you could come out ahead by investing the additional amount of the rider elsewhere versus including it in the policy.

Myth #10: I'm Better off Investing My Money Than Buying Life Insurance of Any Kind

Hogwash. Until you reach the breakeven point of asset accumulation, you need life coverage of some sort (barring the exception discussed in Myth No.5.) Once you amass $1 million of liquid assets, you can consider whether to discontinue (or at least reduce) your million-dollar policy. But you take a big chance when you depend solely on your investments in the early years of your life, especially if you have dependents. If you die without coverage for them, there may be no other means of provision after the depletion of your current assets.

The Bottom Line

These are just some of the more prevalent misunderstandings concerning life insurance that the public faces today. Therefore, there are many life insurance questions you should ask yourself. The key concept to understand is that you shouldn't leave life insurance out of your budget unless you have enough assets to cover expenses after you're gone. For more information, consult your life insurance agent or financial advisor.

Apa Artinya Asuransi Jiwa?

Banyak dari kita membeli asuransi jiwa karena kami ingin memastikan bahwa orang yang kita kasihi, khususnya tanggungan, tetap aman secara finansial setelah kita mati. Pengganti penghasilan adalah No 1 alasan orang membeli asuransi jiwa.

Non-produktif pengasuh juga memiliki penting - nilai ekonomi yang harus ditanggung oleh asuransi jiwa - dan sering diabaikan.

Asuransi jiwa juga dibeli oleh mereka yang tertarik dalam mencapai bisnis yang spesifik atau real-transfer tujuan.

Ada banyak jenis kebijakan asuransi jiwa tergantung pada tujuan Anda, dan ada perbedaan harga yang besar antara perusahaan yang berbeda yang menawarkan cakupan yang identik. Kebijakan yang tersedia dari ratusan perusahaan asuransi jiwa di Amerika Serikat. Kebanyakan perencana keuangan menyarankan bahwa setiap penyedia pendapatan keluarga membawa tidak kurang dari 10 kali pendapatan tahunan mereka dalam asuransi jiwa.

Berikut adalah cara yang teratur untuk pergi tentang belanja untuk asuransi jiwa:

    1) Menilai kehidupan Anda diperlukan jumlah asuransi ..
    2) Tentukan jenis kebijakan yang paling sesuai untuk tujuan Anda.
    3) Pilih perusahaan mungkin dengan menetapkan standar yang tinggi untuk peringkat stabilitas keuangan.
    4) Toko sampai Anda menemukan harga terbaik.
    5) Lihatlah cara untuk mendapatkan tingkat asuransi jiwa terbaik.

Asuransi jiwa adalah proposisi jangka panjang, sehingga Anda harus memberi perhatian khusus, pada saat pembelian dan sepanjang hidup kebijakan, ke peringkat stabilitas keuangan dari perusahaan asuransi hidup Anda. Ratings menunjukkan kemampuan perusahaan untuk membayar klaim.

Menilai asuransi jiwa Anda perlu

Langkah pertama dalam perencanaan asuransi jiwa adalah untuk menganalisis kebutuhan asuransi jiwa Anda - yang berarti kebutuhan ekonomi tanggungan tertinggal. Sebuah cara yang bagus untuk menentukan kebutuhan cakupan Anda adalah dengan menggunakan kalkulator online seperti Asuransi Jiwa.

    Sebelum membeli polis asuransi jiwa, mempertimbangkan situasi keuangan Anda dan standar hidup Anda ingin mempertahankan untuk tanggungan atau selamat. Misalnya, siapa yang akan bertanggung jawab untuk tagihan akhir Anda medis dan biaya pemakaman? Apakah keluarga Anda harus pindah atau mengubah standar hidup mereka setelah kehilangan penghasilan Anda? Asumsi kematian segera diperlukan untuk menentukan kebutuhan asuransi jiwa saat ini untuk keluarga atau individu.


    Tambahkan pada kebutuhan keuangan jangka panjang dari anggota keluarga yang tersisa, seperti: biaya anak-anak, pendapatan bagi pasangan yang masih hidup, hipotek dan utang hadiah lainnya, dana kuliah pendidikan dan dana darurat tambahan.

Karena asuransi jiwa membutuhkan perubahan dari waktu ke waktu, kehidupan jumlah asuransi Anda harus dievaluasi secara berkala. Kami merekomendasikan tinjauan setidaknya sekali setiap lima tahun atau setiap kali Anda mengalami peristiwa besar dalam hidup seperti perubahan pendapatan atau aset, perkawinan, perceraian, kelahiran atau adopsi anak, atau pembelian besar seperti rumah atau bisnis.

Secara teori, Anda harus memiliki menurunnya kebutuhan untuk asuransi jiwa seperti yang Anda usia karena lebih sedikit orang tetap tergantung pada Anda untuk dukungan pendapatan. Pengecualian akan melindungi badan usaha atau membayar pajak atas perkebunan besar untuk ahli waris. Jika tujuan membeli asuransi jiwa adalah untuk membayar pajak tanah, maka Anda akan membutuhkan asuransi jiwa permanen, yang di-force selama Anda hidup dan membayar premi.

Pilihan kebijakan

Polis asuransi jiwa dibagi menjadi dua jenis utama:

    Asuransi jiwa berjangka, yang hanya menyediakan perlindungan kematian tanpa dana sisi atau "nilai tunai" (menawarkan biaya paling mahal per $ 1.000 cakupan kematian dibeli).
    Hidup permanen asuransi, yang memiliki "nilai tunai" rekening di mana komponen return-on-investasi menjadi bagian sering kompleks dan mahal dari kebijakan (biaya paling mahal per $ 1.000 cakupan).


Jangka asuransi jiwa

Yang paling sederhana dari semua asuransi jiwa untuk memahami dan termurah untuk membeli: asuransi jiwa Term memberikan perlindungan kematian manfaat tanpa tabungan, investasi atau "nilai tunai" komponen untuk jangka masa pertanggungan.

Asuransi jiwa yang tersedia untuk periode set waktu seperti tahun 10, 15, 25 atau 30. Dengan "term life tahunan terbarukan," kebijakan Anda secara otomatis memperbaharui setiap tahun dan premi meningkat seiring bertambahnya usia. Pilih "Tingkat istilah asuransi" jika Anda ingin premi Anda untuk tetap sama selama kebijakan. Juga tersedia adalah "penurunan asuransi berjangka," di mana premi tetap tingkat tapi penurunan kematian keuntungan Anda dari waktu ke waktu. Ini bagus jika Anda ingin hanya mencakup utang tertentu yang menurun, seperti hipotek atau pinjaman bisnis.

Selama Anda membayar premi Anda, perusahaan tidak dapat membatalkan Anda.

Asuransi jiwa Term merupakan pilihan populer karena tingkat-jaminan jangka waktu yang lama dan karena kemampuan untuk mendapatkan kehidupan biaya polis asuransi rendah. Namun, jika Anda mendapatkan ke akhir kebijakan jangka Anda dan masih membutuhkan asuransi jiwa, Anda harus berbelanja untuk sebuah kebijakan baru, yang kemudian akan dihargai didasarkan pada usia Anda lebih tua dan status kesehatan.

Memilih periode tingkat-jaminan awal mudah: Cocokkan periode waktu tanggungan Anda membutuhkan penghasilan Anda ke tingkat-jaminan periode yang tersedia. Misalnya, jika anak-anak Anda masih muda dan Anda memiliki puluhan tahun untuk pergi pada hipotek Anda, cobalah 30-tahun jiwa. Jika anak-anak Anda meninggalkan sarang dan rumah Anda lunas atau hampir lunas, 10-tahun panjang mungkin sesuai dengan tagihan.

Ketentuan kebijakan lain yang mendorong popularitas asuransi jiwa jangka dijamin pembaharuan dan konvertibilitas dijamin.

    Dijamin Renewal. Sebelum Anda membeli polis asuransi jiwa berjangka, meminta agen atau perusahaan untuk mengkonfirmasi kepada Anda bahwa kebijakan tersebut mengandung pilihan terbarukan dijamin, yang memberi Anda hak untuk meneruskan liputan di luar periode tingkat-jaminan awal tanpa pemeriksaan medis. Fitur ini, ditemukan di sebagian besar kebijakan term life dijual hari ini, sangat penting harus Anda menjadi sakit dan uninsurable menjelang akhir tingkat-jaminan periode Anda.

Misalnya, katakan bahwa Anda telah membayar $ 800 per tahun pada kebijakan, $ 500,000 20-tahun taraf hidup panjang dan mengembangkan kanker dekat akhir periode 20-tahun, sehingga membuat Anda uninsurable. Dengan asumsi bahwa Anda ingin melanjutkan cakupan, klausul terbarukan dijamin akan memungkinkan Anda untuk melanjutkan cakupan lebih dari 20 tahun secara terbarukan tahunan tanpa ujian, meskipun dengan premi tahunan yang jauh lebih tinggi dari, katakanlah, $ 8.000 dalam tahun 21, $ 11.000 pada 22 tahun, dan seterusnya.

Anda mungkin memiliki stiker shock sekarang tetapi premi tidak terlihat begitu tinggi ketika Anda sangat sakit dan uninsurable tetapi masih membutuhkan cakupan.

    Dijamin Convertible. Fitur lain yang built-in yang paling kebijakan term life adalah hak untuk mengkonversi cakupan Anda untuk setiap kebijakan nilai tunai bahwa perusahaan mungkin menawarkan pada tingkat saat ini tanpa harus mengambil lagi pemeriksaan fisik. Fitur ini mungkin digunakan di masa depan jika Anda memutuskan Anda ingin uang asuransi nilai kehidupan.

Jika Anda ingin istilah asuransi untuk melindungi Anda untuk jangka waktu tertentu tetapi Anda yakin Anda akan hidup lebih lama dari kebijakan, mempertimbangkan "kembalinya premium" (ROP) istilah polis asuransi jiwa. Di bawah ini jenis kebijakan, jika tidak ada manfaat kematian telah dibayarkan pada akhir masa asuransi Anda, Anda menerima semua premi Anda kembali (bebas pajak). Kembali asuransi jiwa berjangka premium umumnya biaya 50 sampai 150 persen lebih dari kebijakan jangka sebanding tetapi menyediakan cara untuk lindung nilai taruhan Anda tidak peduli apa yang terjadi.

Asuransi jiwa yang banyak tersedia di Internet, dari direct-to-consumer perusahaan asuransi jiwa dan dari agen asuransi dan broker.

Nilai tunai asuransi jiwa

Jika Anda ingin lebih dari manfaat kematian dari polis asuransi jiwa dan Anda menyukai ide tabungan jangka panjang (tidak diasuransikan oleh agen federal) atau investasi pasar saham, Anda mungkin mempertimbangkan kas asuransi nilai kehidupan seperti seumur hidup, universal hidup atau kehidupan variabel. Tapi bersiaplah untuk membayar premi yang lebih tinggi per $ 1.000 dari cakupan justru karena Anda sekarang dana rekening nilai kas dan membayar biaya dan biaya.

Dalam kebijakan nilai tunai banyak, premi tahunan tidak meningkat dari tahun ke tahun. Kebijakan kehidupan universal memungkinkan Anda untuk berfluktuasi atau bahkan melewatkan pembayaran premi, yang pada gilirannya menyesuaikan kematian Anda jumlah manfaat.

Berbeda dengan asuransi jiwa berjangka, yang mudah dibandingkan online, uang asuransi nilai sering dipasarkan oleh agen dan broker dalam pengaturan tatap muka, di mana kebutuhan dan strategi dapat didiskusikan.

Karena kompleksitas dan memusingkan hasil yang mungkin untuk asuransi jiwa permanen, regulator bersikeras bahwa uang asuransi nilai dijual dengan menggunakan pra-disetujui format ilustrasi. Ilustrasi ini dapat dijalankan untuk 15 atau lebih halaman. Kas ilustrasi kehidupan nilai asuransi dibagi menjadi dua bagian utama: nilai-nilai dijamin dan proyeksi atau "ilustrasi, non-dijamin" jumlah. Ilustrasi dapat menjadi kompleks dan sulit untuk membandingkan dengan cara apel-to-apel.

Bayar perhatian khusus pada manfaat kematian yang dijamin dan premium-bagian pembayaran karena kolom berisi janji-janji perusahaan yang sebenarnya. Jika Anda tidak menyukai apa yang Anda lihat di sana, berjalan pergi.

Peringatan lain: kebijakan cash Banyak nilai mengandung hukuman keras untuk menyerahkan kebijakan pada awal tahun. Mengubah pikiran Anda dalam beberapa tahun pertama adalah keputusan mahal.

Seluruh asuransi jiwa

Asuransi jiwa Biasa keseluruhan menawarkan "perlindungan permanen" dengan akun nilai tunai yang tumbuh dari waktu ke waktu. Seluruh hidup memberikan manfaat tingkat kematian dan tingkat premi sepanjang hidup Anda dan selama Anda terus membayar premi. Misalnya, 40 sehat tahun perempuan mungkin membayar $ 4.200 per tahun untuk polis asuransi jiwa $ 500.000 keseluruhan. Premi tingkat tetap pada $ 4.200 per tahun untuk sisa hidupnya dan, dalam hal kematian pada usia berapa pun, kebijakan tersebut akan membayar $ 500.000 untuk penerima nya.

Seluruh hidup juga berisi rekening kas nilai yang dibangun dari waktu ke waktu, perlahan-lahan pada awalnya dan mendapatkan uap setelah beberapa tahun. Anda bisa menarik nilai tunai atau mengambil pinjaman terhadap hal itu, tapi ingat, jika Anda mati sebelum Anda membayar kembali pinjaman, manfaat kematian dibayarkan kepada penerima Anda akan berkurang. Misalnya: Susan memiliki polis asuransi jiwa $ 500.000 keseluruhan yang berlaku dan, selama bertahun-tahun, telah meminjam terus dari nilai tunai. Total kredit nya jumlah dan bunga total $ 300.000. Ketika Susan meninggal, ahli waris nya akan menerima $ 200.000 karena perusahaan asuransi jiwa pertama akan membayar sendiri kembali dari manfaat kematian.

Mengerti apa manfaat Anda akan menerima setelah kematian Anda. Jika Anda memiliki polis asuransi jiwa tradisional keseluruhan, penerima Anda hanya menerima manfaat kematian tidak peduli berapa banyak nilai tunai Anda telah dibangun. Pilihan lain yang tersedia untuk pembayaran premi yang lebih tinggi adalah:

    Kematian manfaat ditambah nilai tunai
    Kematian manfaat ditambah pengembalian premi

Kebijakan seluruh hidup dapat diterbitkan sebagai "berpartisipasi" atau "nonparticipating." Berpartisipasi kebijakan biasanya biaya lebih tetapi dapat kembali dividen tahunan jika perusahaan asuransi memiliki tahun keuangan yang baik. Dividen pernah dijamin. Nonparticipating asuransi seumur hidup tidak menawarkan dividen.

Pembeli asuransi seumur hidup seperti kepastian premi tetap dengan manfaat kematian yang dikenal untuk hidup. Mereka juga menghargai "dipaksa tabungan" komponen dan menonton kas akun nilai mereka membangun.

Universal asuransi jiwa

Kebijakan semacam ini menawarkan fleksibilitas yang lebih besar daripada seluruh hidup atau istilah. Kehidupan universal memiliki banyak bagian yang bergerak untuk memahami sebelum Anda membeli.

Setelah pembayaran premi awal Anda, Anda dapat mengurangi atau menambah jumlah manfaat kematian Anda. Juga, setelah pembayaran awal Anda, Anda dapat membayar premi setiap saat dan dalam jumlah berapa pun, asalkan Anda tidak kehilangan tingkat pembayaran minimum. Dalam beberapa kasus, ada batas untuk berapa banyak tambahan yang Anda dapat membayar di muka. Jika Anda memilih untuk meningkatkan manfaat kematian Anda, Anda mungkin harus memberikan bukti medis bahwa kesehatan Anda belum memburuk.

Anda akan perlu untuk mengelola kebijakan untuk mempertahankan pendanaan yang cukup, terutama karena perusahaan asuransi dapat meningkatkan biaya.

Beberapa kebijakan hidup yang universal baru tampil seperti asuransi term life: Mereka dapat dikonfigurasi pada saat pembelian untuk menyediakan manfaat kematian tingkat dan premi tingkat yang dijamin untuk hidup selama Anda membayar premi dijadwalkan.

Variabel asuransi jiwa

Kehidupan variabel menawarkan manfaat kematian dengan dana sisi yang beroperasi seperti rekening investasi. Ini menggeser ketidakpastian laba dan rugi investasi kepada pemegang polis.

Perusahaan asuransi menginvestasikan premi Anda dan menawarkan Anda pilihan dana di mana uang Anda akan diinvestasikan. Pengembalian tidak dijamin. Jumlah uang yang Anda akan menerima manfaat dan nilai tunai dari kebijakan Anda tergantung pada seberapa baik rekening yang mendasari tampil. Secara teoritis, nilai tunai bisa turun ke nol dan, jika demikian, kebijakan akan berakhir. Beberapa kebijakan hidup variabel akan menjamin manfaat kematian minimum.

Hidup lainnya pertimbangan asuransi permanen

Ketika kas akun nilai Anda tumbuh cukup besar, dapat digunakan oleh perusahaan asuransi untuk membayar premi Anda selama sisa hidup Anda. Hal ini dikenal sebagai yang "dibayar." Anda masih dapat menarik nilai tunai Anda, tetapi Anda harus melanjutkan pembayaran premi untuk menjaga kebijakan yang berlaku atau puas dengan tunjangan yang lebih rendah bahwa nilai tunai yang tersisa dapat mendukung. Ilustrasi kebijakan Anda akan menunjukkan berapa lama mungkin diperlukan untuk kebijakan seluruh hidup Anda akan "disetor."

Jika Anda tidak lagi ingin kebijakan seumur hidup Anda, Anda bisa pasrah untuk menerima nilai penyerahan kas saat ini atau mengubahnya menjadi anuitas, namun perlu diingat bahwa menguangkan kebijakan permanen setelah hanya beberapa tahun adalah cara yang mahal untuk mendapatkan perlindungan asuransi untuk waktu yang singkat.

Penunggang menambahkan manfaat

Anda dapat menambahkan pengendara untuk polis asuransi jiwa Anda bahwa penjaga terhadap sejumlah situasi yang tidak menyenangkan. Asuransi Anda akan memiliki daftar sendiri pengendara yang tersedia, tapi di sini ada beberapa:

    Kematian pengendara manfaat dipercepat (hidup pengendara manfaat alias): Pays manfaat awal jika Anda menjadi sakit parah.
    Kematian pengendara manfaat Accidental: Pays manfaat tambahan jika Anda meninggal akibat kecelakaan.
    Panjang perawatan jangka pengendara: Pays untuk biaya perawatan jangka panjang jika Anda tidak dapat melakukan beberapa "aktivitas hidup sehari-hari," seperti berpakaian atau toilet.
    Waiver pengendara premium: membebaskan pembayaran premi yang harus Anda menjadi benar-benar dinonaktifkan.


Bagaimana asuransi jiwa harga

Kehidupan tingkat asuransi Anda didasarkan pada harapan hidup Anda, jumlah nominal yang Anda minta dan panjang kebijakan, apakah itu durasi hidup Anda (whole life) atau jangka waktu tertentu (term life). Mendapatkan hidup biaya polis asuransi rendah tergantung, sebagian besar, pada kesehatan Anda saat ini dan masa lalu.

Karena kondisi saat ini dan masa lalu Anda kesehatan mempengaruhi harapan hidup Anda, asuransi ingin tahu sebanyak mungkin tentang kondisi kesehatan Anda. Kondisi umum seperti tekanan darah tinggi, penyakit jantung, obesitas, kanker dan depresi semua dapat meningkatkan tingkat asuransi jiwa Anda atau bahkan menghasilkan sebuah deklinasi.

Berdasarkan riwayat medis Anda, Anda akan dikelompokkan ke dalam kategori seperti "plus disukai," "disukai," "standar" dan "bawah standar." Kategori Anda akhirnya menentukan premi Anda.

Asuransi pembeli dengan kondisi kesehatan yang parah atau kombinasi dari kondisi bisa sulit atau tidak mungkin untuk menemukan asuransi jiwa. Mereka dikenal sebagai "risiko gangguan." Agen lokal mungkin tidak cukup berpengalaman untuk menemukan sebuah perusahaan yang mengkhususkan diri dalam mengasuransikan orang dengan kondisi medis tertentu. Untungnya, gangguan-resiko spesialis memiliki keahlian dalam mengetahui di mana untuk mengarahkan aplikasi untuk orang-orang dengan kondisi medis.

Asuransi jiwa beli proses

Asuransi jiwa proses aplikasi adalah kertas-intensif, dapat mengambil minggu dan sering tampaknya mengganggu bagi orang-orang yang menghargai privasi mereka. Sebuah face-to-face pemeriksaan paramedis umumnya diperlukan untuk kebijakan lebih dari $ 100.000, yang berarti, minimal, pemberian kedua sampel darah dan urin untuk profesional paramedis.

Mengharapkan pertanyaan secara rinci mengenai gaya hidup Anda, dimaksudkan tujuan bepergian ke luar negeri, riwayat kesehatan keluarga dan riwayat kesehatan pribadi Anda. Apakah Anda berniat untuk menyelam? Apakah Anda memiliki orang tua atau saudara kandung dengan penyakit jantung atau kanker sebelum usia 60? Apakah Anda pernah mengambil setiap obat untuk kegelisahan atau depresi? Ini, dan banyak lagi, adalah jenis pertanyaan yang diharapkan.

Kadang-kadang beberapa wawancara yang diperlukan untuk memverifikasi informasi Anda. Pemeriksa paramed biasanya menanyakan pertanyaan-pertanyaan face-to-face dan seringkali perusahaan asuransi akan melakukan tindak lanjut wawancara telepon sehingga Anda dapat memverifikasi set pertama jawaban. Terlepas dari jenis asuransi jiwa yang Anda beli, kebijakan yang paling membutuhkan Anda untuk memenuhi pedoman tertentu mengenai gaya hidup dan riwayat kesehatan.

Jika kedengarannya menggoda untuk jalan pintas proses ini dengan berbuat curang pada informasi jawaban atau pemotongan, jangan lakukan itu. Ini adalah kejahatan di seluruh 50 negara untuk berbohong tentang atau menyembunyikan informasi pada aplikasi asuransi jiwa. Selain itu, kebijakan yang diperoleh melalui penipuan dapat voided saat klaim.

Penanggung kemungkinan akan melaporkan hasil pemeriksaan medis Anda (dilaporkan sebagai kode bernomor) ke Biro Informasi Medis (MIB), yang memelihara sebuah database dari mereka yang telah diterapkan untuk asuransi jiwa dalam tujuh tahun terakhir. Jika Anda telah memberikan jawaban yang berbeda untuk pertanyaan medis di masa lalu, itu akan menaikkan bendera merah dengan MIB. Tujuan dari database MIB adalah untuk mengurangi penipuan.

Semua kebijakan hidup standar asuransi umumnya mencakup kematian oleh sebab setiap saat di mana saja, kecuali untuk kematian oleh bunuh diri dalam dua tahun pertama kebijakan (satu tahun di beberapa negara).

Jika Anda tidak peduli untuk pergi melalui proses underwriting, Anda memiliki dua lainnya, lebih mahal, pilihan:

    Sederhana masalah asuransi jiwa dapat dibeli setelah menjawab pertanyaan medis hanya beberapa. Tidak ada pemeriksaan medis diperlukan. Namun, jika Anda melaporkan masalah kesehatan, Anda mungkin akan ditolak. Juga, jika Anda sehat, atau bahkan jika Anda memiliki beberapa riwayat kesehatan negatif, kebijakan ditanggung masih akan menjadi paling mahal Anda.
    Masalah asuransi jiwa Dijamin dijual kepada siapa saja yang berlaku (hingga batas usia) dan adalah jauh cara yang paling mahal untuk membeli asuransi jiwa. Hal ini harus dipertimbangkan hanya oleh mereka yang menolak untuk segala sesuatu yang lain tetapi masih membutuhkan asuransi jiwa. Kebijakan ini telah dinilai manfaat kematian, berarti penerima Anda tidak akan menerima manfaat kematian penuh sampai beberapa tahun ke kebijakan.

Dalam penamaan penerima manfaat, perlu diingat bahwa perusahaan asuransi jiwa akan ingin melihat nama-nama mereka yang secara finansial tergantung pada Anda. Kenalan, teman atau saudara, absen dari hubungan keuangan, tidak akan melakukannya.

Bekerja dengan agen

Setelah meninjau kebijakan asuransi jiwa yang tersedia, Anda mungkin masih tidak yakin tentang yang paling sesuai dengan kebutuhan Anda. The American Council Penanggung Hidup (ACLI) merekomendasikan konsultasi agen asuransi. ACLI Juru bicara Jack Dolan mengatakan agen dapat merekomendasikan kebijakan yang akan memenuhi kebutuhan Anda. "Lihatlah kebijakan yang disarankan dengan hati-hati untuk memastikan cocok tujuan pribadi Anda," kata Dolan.

Hati-hati mempelajari rekomendasi agen Anda dan meminta penjelasan titik-demi-titik. Pastikan agen menjelaskan item yang Anda tidak mengerti. Karena kebijakan Anda adalah sebuah dokumen hukum, penting bahwa Anda tahu apa yang menyediakan.

Situs ini menawarkan rekomendasi-rekomendasi untuk memutuskan jenis asuransi jiwa untuk membeli:

Jika agen Anda merekomendasikan kebijakan term life, tanyakan:

    Apa Standard & Poor `s, A.M. Terbaik, Fitch, Moody dan peringkat Weiss ini perusahaan asuransi?
    Berapakah periode tingkat-jaminan awal? Apakah ini kebijakan terbarukan melewati masa-tingkat jaminan awal tanpa pemeriksaan fisik? Jika demikian, apa premi?
    Apakah ini kebijakan konversi ke asuransi permanen tanpa pemeriksaan fisik? Jika demikian, untuk apa periode waktu yang aku punya hak untuk mengkonversi?

Jika agen Anda merekomendasikan kebijakan nilai tunai, tanyakan:

    Apa Standard & Poor `s, A.M. Terbaik, Fitch, Moody dan peringkat Weiss ini perusahaan asuransi?
    Dapatkah Anda memberitahu saya, secara tertulis, mengapa Anda merekomendasikan asuransi nilai tunai bagi saya saat ini?
    Mengapa saya harus menggabungkan kebutuhan asuransi jiwa perlindungan saya dengan tujuan investasi saya?
    Bisakah Anda mempersiapkan analisis bagi saya yang menunjukkan biaya sebenarnya dari kebijakan nilai tunai asuransi selama 5, 10, 15, 20, 25 dan 30 tahun vs membeli asuransi jiwa berjangka dan investasi perbedaan dalam obligasi jangka panjang atas orang periode waktu yang sama ?
    Berapa tahun pertama komisi Anda pada kebijakan nilai tunai yang diusulkan vs komisi Anda pada polis asuransi jiwa berjangka yang setara?
    Apakah ini premi tahunan yang diusulkan dalam anggaran saya?
    Mengapa Anda berpikir bahwa saya bisa berkomitmen untuk membayar premi tersebut dalam jangka panjang, mungkin puluhan tahun?
    Berapa banyak yang akan saya terima jika saya menyerahkan kebijakan?

Sumber Tambahan

    Konsumen Federasi "Rate of Return" Asuransi Amerika Layanan
    Informasi Asuransi Institute: Belajar tentang asuransi jiwa
    Departemen negara Anda asuransi juga mungkin memiliki menuntun kehidupan membeli asuransi online
    Untuk kutipan asuransi jiwa gratis atau informasi lebih lanjut tentang jenis-jenis asuransi jiwa yang tersedia, silakan kunjungi halaman utama situs ini.

Budi adalah seorang penulis staf untuk situs kami. Untuk array komprehensif kutipan auto, kehidupan dan kesehatan komparatif, termasuk sebuah perpustakaan besar artikel asuransi awalnya menulis dan pengambilan keputusan alat yang tidak tersedia dari sumber tunggal lainnya. Situs ini didedikasikan untuk menyediakan informasi asuransi memihak kepada konsumen. Pengunjung dapat memperoleh kutipan instan dari perusahaan asuransi terkemuka, mencapai penghematan maksimum dan memiliki kebebasan untuk membeli dari perusahaan yang ditunjukkan.