Want to get the most for your money when buying a life insurance policy, then you need to know the basics of what the different types of life insurance policies mean and do.
Term Life Insurance
Just by thinking about the name of this type of insurance you may have a pretty good idea of what it means. Term life insurance is literally an insurance policy that lasts for a particular set term of time. From 10, 20, 30 years or more, these policies are in effect offering a specific dollar amount of coverage for those who are insured, if they were to die during the term that has been specified.
For the most part, term insurance costs substantially less than other options. There is a simple reason for this. You will not necessarily die within the term of the insurance policy. Therefore, the insurance company is taking a gamble that you will live until the term is out and that you will have paid your premiums while not dying, so they don’t have to make a payout and get to keep all the money you put in.
If you do have a term life insurance policy, and it runs out, most insurance companies will offer you the chance to renew it, but it will be at a cost. You will pay more each time you renew, since the company will be taking a bigger gamble, as the odds you will die go up the older you are.
Whole Life Insurance
At the other end of the spectrum is whole life insurance. This is a policy that you purchase one time and it will follow you for the rest of your life. Once you sign up for a whole life insurance policy, you will be covered from that day until the day you die with no rate hikes or renewals necessary.
However, it will cost more. Since it is a given that you are eventually going to die, and therefore the policy will be cashed in, these policies are often more expensive than term life insurance policies
In addition to knowing that there will be a payout, there is another reason many people like whole life insurance policies. They can set up a payment plan so the policy is paid off in 20 or 25 years. For those who buy these policies young, that means you can have your whole life insurance policy paid off before you get into your retirement years, where your income may be dramatically reduced.
The selection of a life insurance plan will differ by your needs, your wants and your budget the key is to know what's out there and then to make an intelligent decision as to what would be best for you.
by Stephen Sikes
www.InsuredItAll.com
Monday, October 6, 2008
Types of Life Insurance Policies by Stephen Sikes
Sunday, October 5, 2008
Fleet Insurance - What Is The difference?
Fleet insurance is formulated to provide mandatory road risk coverage to a wide array of vehicles ranging from cars, buses, taxis to coaches, lorries, transit vans and agricultural vehicles. A fleet insurance policy enables an individual or a company to insure a number of vehicles of any categories under one single policy.
A fleet insurance policy generally only provides road risk insurance. This policy can be of two types, namely, Third Party Fire And Theft and Comprehensive Coverage. Breakdown insurance is generally the only optional extra available in case of a fleet insurance policy.
Car Fleet Insurance
The premium of a car fleet insurance policy will depend on
a) The number of cars being insured b) The types of the cars c) The accident records of the cars.
Insurance companies vary in their definition of a "fleet of cars", i.e. some companies will issue a fleet insurance policy only if there are two or more cars while others may require five or more cars to be able to issue a fleet insurance policy. Thus they vary on the minimum number of cars that can be termed as a "fleet". But, presently, most insurance providers classify a group of five or more cars as a car fleet.
Insurance companies generally offer complimentary and additional products when a car fleet insurance is taken. These products can be free of cost or can have some minor expenses attached.
Though, a car fleet insurance can be taken by an individual who owns a number of cars, generally it is taken by companies who own and use a host of cars for business purposes.
Why should one go for a car fleet insurance?
A car fleet insurance comes with a huge volume of discount if the accident record of each of the vehicles in the fleet is appreciable. This discount is quite big compared to what is possible in case of standard individual car insurance. People going for car fleet insurance can save as much as sixty-seven percent on their insurance expenditure.
Disadvantage of car fleet insurance
The greatest disadvantage of car fleet insurance is that in case of an accident of one of the vehicles, the premium of all the vehicles covered under the policy gets affected.
How to overcome this disadvantage
Often some vehicles are found to be highly susceptible to accidents. If one car in the fleet is found to be an accident-prone one, it is better to insure it under an individual car insurance policy and insure the remaining the cars under a car fleet insurance policy. This ensures that any future claim for the accident-prone vehicle does not increase the premium of the fleet policy.
The present-day insurance providers who specialise in fleet insurance perceive that dealing with fleet insurance is not only about quoting premiums. They also try to provide assistance with a host of fleet insurance services that actually lower the expenses and risks attached with the maintenance of a fleet of vehicles.
One, who is planning to go for a fleet insurance policy for his vehicles, needs to do a thorough research of the natures of coverage available, additional services offered, and premiums quoted, by different insurers, before finally signing up.
Flight Insurance
Going on holiday is always a lot of fun and exciting as well, especially if you are travelling to a far-off land that is very different from the area where you live. Of course, if you want to get there in a timely manner, you are going to have to fly a commercial flight to your destination. No one expects to have any kind of trouble while they are in the air, but we can never predict the future. If we could, more than likely no one would ever step foot onto a jet airplane. It's the same as driving your car. If you sat down and thought about all of the automobile accidents that happen in a day's time in your area, then you wouldn't want to drive or even ride in a car.
We take chances every day of our lives, and flying is one of those chances. These days, flying could be said to be more dangerous than ever, what with the threat of terrorists taking over the plane. Many people wonder why in the world they would need flight insurance, if they have travel insurance already. If you are one of those people who are a little bit leery about flying, then you definitely understand why someone would want a separate and special insurance for their flight.
It's a good idea to purchase air travel insurance as an addition to your regular travel insurance. It will give you peace of mind as you glide across the clouds while airborne. While you are looking out and admiring the scenery, you'll also known that whoever you named as a beneficiary on your flight insurance will be well taken care of if something should happen before you land.
Normally, flight insurance is an Accidental Death and Dismemberment insurance policy, sometimes also called AD&D. This insurance protects you for the time you are flying on a commercial airline, and is usually extremely affordable. Usually, you can get flight insurance even for a one-way trip, and be covered no matter what airline you fly on, as long as the flight is one that is scheduled.
Many of the best travel insurance companies also offer flight insurance, but in some cases, you must buy it as a separate add-on. Look for the type of policy that will cover you from the moment you leave your home on the way to the airport until you return to your home. You also want a policy that will cover each and every flight that you will be taking on your trip.
It is much easier for you to purchase your flight insurance online that it would be to purchase it at the airport or from your tour operator. Even if you want to wait and purchase flight insurance on the same day you leave home, you can still find a policy online that allows you to get a policy right before your flight. This is one form of life insurance that you do not have to worry about getting turned down for because of your health. Purchasing flight insurance shows that you are intelligent enough to know that anything can happen in the air, and loving enough to want to leave something behind for your family.
