SimplyFinance - Life Insurance

Shopping for Life Insurance

2007-08-02T23:00:00Z

After considering what type of life insurance and how much you want to buy, you must begin shopping. You need to shop around, letting licensed companies vie for your business, while also considering the history of the companies with which you are dealing. A company’s record is important because you are buying a product that you may not use until far into the future. It is also important to reconsider your policy after any life changing event, such as a marriage, the birth or graduation of a child, your divorce, or a beneficiary’s death.

The price and parameters of life insurance policies vary greatly between companies, which makes it extremely important to choose from a significant pool of possible insurers. Make sure to research the proposed policies, asking every question that occurs to you. Do not buy a policy that you don’t understand. If the company cannot explain any aspect of the policy, shop elsewhere.

Once you have made a decision, do not wait. The purpose of a life insurance policy is to give you peace of mind, knowing that your loved ones will be taken care of financially in the event of your death. No one benefits unless you own the policy. Waiting also increases the likelihood that you will develop an illness, which could cause your premiums to rise or cause your application’s rejection by the insurer.

Before finalising your purchase, however, make sure that you receive a buyer’s guide and policy summary. If the company does not offer them to you, ask. Also, keep all literature given to you by the company. Make sure you understand the guarantees and surrender policies, in the event that you drop the policy. Often, these prices are hidden.

In short, decide what type of life insurance policy will best serve you now and how much you want to buy, let companies compete for your business, make sure that you understand exactly what you are buying, and then make the purchase. Your loved ones’ well-being and your peace of mind can begin by filling out our short form. It's quick and easy, and you're under no obligation to accept the quotes our insurance advisors propose to you.

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The Importance of Life Insurance

2007-08-01T23:00:00Z

Your most valuable worldly asset is your money-making potential. Your household cannot run without your income, and therefore you must protect it with life insurance.

Life insurance is important for a number of reasons. In general, it allows you to plan for your life through retirement while you are still alive and to protect your family and/or loved ones once you have passed. With life insurance, you are able to make plans to take care of your family after you have passed, assuring that they will still receive income, and you're able to give your survivors possibilities for their future.

Most people already with life insurance still do not have sufficient funds. The average life insurance need is about ₤225,000; but the average amount of insurance owned is around ₤61,000, which leaves a deficit of more than ₤147,000. According to a LIMRA International study, 45 percent of widows and 37 percent of widowers say their spouse was not adequately insured. One to two years after the death, 50 percent of the widows and only 33 percent of the widowers were just getting by financially. As well, on average, widows (who receive life insurance proceeds) receive about three times the household income from all life insurance proceeds, while widowers receive one year of household income. In addition, private life insurance is important because many rely on group insurance, which leaves them vulnerable if they lose their job.

With your life insurance, you may be able to set aside enough money to pay off your final expenses so that you don’t burden your loved ones with these costs. According to a trade commission finding, a traditional funeral, including a casket and vault, costs about ₤3,000, although flowers, obituary notices, acknowledgment cards and limousines can add thousands of pounds to the bottom line.

Your life insurance may provide an income so that your family may continue in its standard of living, by covering everyday expenses. And if you own a home, your life insurance may also pay off the mortgage so that your family may remain there, instead of having to sell it. According to the aforementioned LIMRA study of households affected by premature death, income declines by 15 percent during the year of death. Assets also decline to cover medical, burial, and other expenses.

Finding the best life insurance quote is extremely important, considering what is at stake for you and your family. Take the time to fill out our short form so that you can begin shopping for the best prices to protect you and your loved ones. One of our SimplyFinance representatives will contact you shortly.

Life Insurance Explained

2007-08-02T23:00:00Z

Life insurance is a contract between the policy owner (you) and the insurer, in which the insurer agrees to pay an amount of money in the event of the owner’s death. The owner pays premiums, at agreed upon intervals, in exchange for this insurance. The policy owner assigns a beneficiary to the policy, who is the person to receive the benefits upon the owner’s death. There are different types of life insurance, including: permanent, term, and variable policies. These are each designed with different needs in mind. You may be interested in estate planning, temporary protection, cash accumulation, or just peace of mind.

Permanent life insurance is for the life of the insured. It accrues cash over the length of your life, as long as you continue paying the premiums. These premiums are higher than for term insurance, because they must pay out. These products accumulate a cash value against which the policyholder can borrow, and accumulated cash will be paid to the beneficiary upon the owner’s death. It is possible for this insurance to be paid out early in the event of a critical illness, as long as the contract is not broken. Another advantage to permanent life insurance, rather than beginning with term insurance and switching over later in life to a permanent policy, is that you will not have to consider being rejected if you develop a serious illness before the change in policies, which could affect your acceptance.

Term insurance gives you coverage for a set amount of time (usually in multiples of 5 years), but the value of the policy is only paid out if death occurs during the time specified. In addition, the policy’s value does not increase. Because term life insurance policies are a pure death benefit, they are generally 8 to 10 times less expensive than a permanent life policy for the same coverage.

Variable universal life insurance, usually between the price of permanent and term, combines a term life insurance policy with variable investment options. The policy owner decides in which accounts to invest, which is an attractive feature. There is more financial risk with this type of policy due to its involvement in markets; however, there is the potential for greater returns at the end of the term. This type of policy also requires more attention to planning.

A great way to begin researching how variable universal life insurance, term, or permanent life insurance can serve you is by filling out our short form. One of our SimplyFinance representatives will contact you quickly to discuss your involvement in such a plan. It's easy, it's free, and you're under no obligation to us.