Term Insurance Plan Analysis
You may heard about Term Insurance plan but, do you know how to evaluate a suitable plan for you? This article intend to discuss important points to consider prior to subscribe a term insurance plan. At the end of reading this article, I am sure, you will get all necessary information to evaluate any term plan and its suitability to you. If you are on the queue to subscribe a term plan for life, this is a must read for you.
A little about term plan; Term Insurance Plan generally have low premium with huge insurance cover. Unlike any other policy, term insurance plan never give the paid premium back, if the subscriber survives the term years. A subscriber required to pay the same premium till the end of duration and there will not be any timely increase or decrease in it.
Here are 4 major points required your attention when evaluating a term plan to subscribe:
Age of a Subscriber:
Joining age is very important for a term insurance plan. Premium amount of the term insurance policy highly depends on the age of a subscriber. As your age increases, your premium for the term insurance policy also increases. It tells that, age at the time of term insurance can decide increase or decrease in premium amount. To simplify this point, here is an example: If you start a term insurance policy at the age of 20, you will have to pay considerable low premium amount than a person subscribing the same plan at his age of 35 or 40.
Policy Term:
It is a commonsense factor. Always select maximum available term while subscribing a term insurance plan. Here our first point above, is a visible reason for the same. Never commit a mistake of selecting less term considering reductions in premium. Remember, less term required to pay less premium because company doesn't have a risk from a person getting aged. As said above, age of a subscriber has important role in term insurance plan premium. In the similar way, policy duration also have role in the increase of decrease of premium.
Insurance Cover:
I have read a lot and heard a general doubt on term insurance plan is, deciding the insurance cover. To crack this doubt, one can opt an insured sum of 6 to 7 times of his annual salary. If you are subscribing a term insurance plan now then, never do the mistake of selecting 6 or 7 times of your 'present annual salary' but, consider your possible future salary and designation hike for next five years from today.
For example, if your present annual salary is $50000, you can select $50000x6 = $300,000 as your Term Insurance cover. Wait a minute. Just think your possible salary for next 5 or 10 years. It may be $200000 per annual. So which will be better? So you should consider this future and select $1200000 as your insurance cover. At the end of 10 years, you will be happy by seeing you have selected the right insurance cover to meet the life standard of your family in case of your untimely death. How do you feel about this insurance coverage idea? Can you tell me whether you have heard this or not from anywhere other than this article?
Rider Benefits:
There are various riders available with term insurance plan depends on your country and regulations. Accidental Death Benefit, Critical Illness Cover and Permanent Disability Cover are some of them available in my place, can be selected by paying additional premium. Select your required riders wisely. If you have separate critical illness cover, you may not need to select that rider with your term insurance plan. If you don't have your own vehicle and you are not traveling lot, you can even avoid accidental death benefit too. Remember, accidental death not happening only from vehicles but even a death by falling in a pit can also be considered as accidental death. In my opinion, select accidental death benefit considering its very low premium.
Selection of additional riders depends on individual to individual. Depends on your status, have option to select or not select riders. You can even consider the increase and decrease of premium when selecting each riders. For me, a well planned term plan without any additional riders would be sufficient.
You have option to clear your doubts directly from me. If you have any doubt, just post here as a comment or contact me using above contact form. You can even visit this article to know the guidelines to select worthy insurance policies.
Insurance: A Guide
"Remember kids, I have life insurance" - Adam Savage
This is a guest article from Tatyana Levin
These days one must be financially savvy. Money is not easy to come by and should be managed carefully. With the availability of tools that make it easy to keep track of current events, the stock market, and even your own money, it would be almost a crime to not utilize these tools to make the best and most informed financial decisions. Unfortunately, the more there is, the more there is to keep track of. This applies both to tracking tools and money (the small curse within the comfort of having money to keep track of).
The savvier ones of us dabble in investments, and the savviest make their living that way. The key is that they know what to invest in. Not magically, of course; investors do a significant amount of research to learn how to optimize their portfolios, but they have the understanding.
A grossly overlooked investment is insurance. This may be because is not typically referred to as an investment with the exception of whole life insurance that has a specific investment component within it. Webster’s defines the word “invest” as a commitment of money for a return and “insurance” as a guarantee. This makes insurance the safest type of investment, because your returns are guaranteed. But returns are not always financial in the case of insurance. They can be, if there is an unforeseen accident, but the most certain return is the feeling of security.
Now there are many different types of insurance, and what you need depends on your current situation. Obviously you only need auto insurance, found using auto insurance leads if you have a car, and you only need renter’s insurance if you rent and have possessions that you would need insured. Insurance is for those who have something to lose. With an attachment to something, either emotional of physical (or dependence, not like physically being glued to your car), comes the fear that it will be damaged or ruined in some way. For example, if your house caught on fire, you would be devastated. What would add insult to injury is not having a way to recover from this horrible disaster.
These types of examples are not unique to this article. That is the way that insurance is sold. As they say that clichés are clichés for a reason, insurance is promoted this way for a reason. The foundation of the concept of insurance is uncertainty, and it is the same uncertainty that is conjured up when investing.
The main difference between insurance and investment is that not having insurance creates a feeling of uncertainty while investments by nature are uncertain. Therefore, investing in insurance creates security and is the only secure investment that exists (and is legal). Getting insurance should be one of the easier financial tasks if you apply all the resources available with technological advances like smart phones.
About the Author: This article was written by Tatyana Levin, a copywriter for InsuranceFiles.com
You may heard about Term Insurance plan but, do you know how to evaluate a suitable plan for you? This article intend to discuss important points to consider prior to subscribe a term insurance plan. At the end of reading this article, I am sure, you will get all necessary information to evaluate any term plan and its suitability to you. If you are on the queue to subscribe a term plan for life, this is a must read for you.
A little about term plan; Term Insurance Plan generally have low premium with huge insurance cover. Unlike any other policy, term insurance plan never give the paid premium back, if the subscriber survives the term years. A subscriber required to pay the same premium till the end of duration and there will not be any timely increase or decrease in it.
Here are 4 major points required your attention when evaluating a term plan to subscribe:
Age of a Subscriber:
Joining age is very important for a term insurance plan. Premium amount of the term insurance policy highly depends on the age of a subscriber. As your age increases, your premium for the term insurance policy also increases. It tells that, age at the time of term insurance can decide increase or decrease in premium amount. To simplify this point, here is an example: If you start a term insurance policy at the age of 20, you will have to pay considerable low premium amount than a person subscribing the same plan at his age of 35 or 40.
Policy Term:
It is a commonsense factor. Always select maximum available term while subscribing a term insurance plan. Here our first point above, is a visible reason for the same. Never commit a mistake of selecting less term considering reductions in premium. Remember, less term required to pay less premium because company doesn't have a risk from a person getting aged. As said above, age of a subscriber has important role in term insurance plan premium. In the similar way, policy duration also have role in the increase of decrease of premium.
Insurance Cover:
I have read a lot and heard a general doubt on term insurance plan is, deciding the insurance cover. To crack this doubt, one can opt an insured sum of 6 to 7 times of his annual salary. If you are subscribing a term insurance plan now then, never do the mistake of selecting 6 or 7 times of your 'present annual salary' but, consider your possible future salary and designation hike for next five years from today.
For example, if your present annual salary is $50000, you can select $50000x6 = $300,000 as your Term Insurance cover. Wait a minute. Just think your possible salary for next 5 or 10 years. It may be $200000 per annual. So which will be better? So you should consider this future and select $1200000 as your insurance cover. At the end of 10 years, you will be happy by seeing you have selected the right insurance cover to meet the life standard of your family in case of your untimely death. How do you feel about this insurance coverage idea? Can you tell me whether you have heard this or not from anywhere other than this article?
Rider Benefits:
There are various riders available with term insurance plan depends on your country and regulations. Accidental Death Benefit, Critical Illness Cover and Permanent Disability Cover are some of them available in my place, can be selected by paying additional premium. Select your required riders wisely. If you have separate critical illness cover, you may not need to select that rider with your term insurance plan. If you don't have your own vehicle and you are not traveling lot, you can even avoid accidental death benefit too. Remember, accidental death not happening only from vehicles but even a death by falling in a pit can also be considered as accidental death. In my opinion, select accidental death benefit considering its very low premium.
Selection of additional riders depends on individual to individual. Depends on your status, have option to select or not select riders. You can even consider the increase and decrease of premium when selecting each riders. For me, a well planned term plan without any additional riders would be sufficient.
You have option to clear your doubts directly from me. If you have any doubt, just post here as a comment or contact me using above contact form. You can even visit this article to know the guidelines to select worthy insurance policies.
Insurance: A Guide
"Remember kids, I have life insurance" - Adam Savage
This is a guest article from Tatyana Levin
These days one must be financially savvy. Money is not easy to come by and should be managed carefully. With the availability of tools that make it easy to keep track of current events, the stock market, and even your own money, it would be almost a crime to not utilize these tools to make the best and most informed financial decisions. Unfortunately, the more there is, the more there is to keep track of. This applies both to tracking tools and money (the small curse within the comfort of having money to keep track of).
The savvier ones of us dabble in investments, and the savviest make their living that way. The key is that they know what to invest in. Not magically, of course; investors do a significant amount of research to learn how to optimize their portfolios, but they have the understanding.
A grossly overlooked investment is insurance. This may be because is not typically referred to as an investment with the exception of whole life insurance that has a specific investment component within it. Webster’s defines the word “invest” as a commitment of money for a return and “insurance” as a guarantee. This makes insurance the safest type of investment, because your returns are guaranteed. But returns are not always financial in the case of insurance. They can be, if there is an unforeseen accident, but the most certain return is the feeling of security.
Now there are many different types of insurance, and what you need depends on your current situation. Obviously you only need auto insurance, found using auto insurance leads if you have a car, and you only need renter’s insurance if you rent and have possessions that you would need insured. Insurance is for those who have something to lose. With an attachment to something, either emotional of physical (or dependence, not like physically being glued to your car), comes the fear that it will be damaged or ruined in some way. For example, if your house caught on fire, you would be devastated. What would add insult to injury is not having a way to recover from this horrible disaster.
These types of examples are not unique to this article. That is the way that insurance is sold. As they say that clichés are clichés for a reason, insurance is promoted this way for a reason. The foundation of the concept of insurance is uncertainty, and it is the same uncertainty that is conjured up when investing.
The main difference between insurance and investment is that not having insurance creates a feeling of uncertainty while investments by nature are uncertain. Therefore, investing in insurance creates security and is the only secure investment that exists (and is legal). Getting insurance should be one of the easier financial tasks if you apply all the resources available with technological advances like smart phones.
About the Author: This article was written by Tatyana Levin, a copywriter for InsuranceFiles.com
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