The Basics of Life Insurance and Insurance Quote’s

life-insuranceHave you asked yourself the lethal question about life after death or maybe, death ? Are you prepared to face it? How about your wife or husband? Your children?Yes, the thought of dying can threaten you but there is a way that you can deal with fear in a positive way and that is by checking out lifeinsurancequotes-uk.com to get life assurance coverage!

What is Life Assurance?

Life assurance, also referred to as life insurance, is a protection policy against loss of income. Here, when the insured person dies, his/her beneficiaries or family members will be safeguarded from the financial impact caused by the death. The beneficiaries will receive the total amount of insurance to cover the medical expenses, funeral cost and other family bills (e.g. mortgage, education, etc.).

The target of life assurance is to provide security (financial) to the family members of the insured. When the insured person dies, his/her significant others will be able to continue their life without drowning over their expenses as incurred by death itself. This is true if the insured person is the one bringing food on the table.

 

What are the Types of Life Assurance?

There are four types of life Insurance and these are term life, whole life insurance, endowment life policy and annuity.

Term life insurance is the cheapest form of insurance. It offers a short-term coverage, like 10 years or 20 years the most. Here, when one dies within the insured coverage, the beneficiaries will receive the whole amount of the policy. However, if the insured person outlives the policy or dies after the term of the policy, the beneficiaries do not receive anything. In such circumstance, the policy dies with the insured person.a

Whole life insurance, as compared to term life, covers the entire life span of the insured person or persons. This policy can only be made void through cancellation or lapses in payment. Here, when the insured person dies (anytime), his beneficiaries will receive a fixed amount of cash as stated in the insurance policy.

In endowment life policy, the beneficiaries receive the face amount of the policy on a specified period of time or upon the death of the insured (whichever comes first). This policy is actually very helpful in meeting special needs or expenses like college tuition fees, retirement home purchases, etc.

Last is annuity. This insurance type requires the insured person to pay the policy on specified dates or on fixed intervals. The policy may keep the person or the entire family insured for a specific number of years or for a lifetime. The amount that will be received by the beneficiary for this type of policy is the principal amount + interest (either or both may be exempted from taxation rules).

After knowing the different types of insurance such as key man insurance, it is best to understand their prices or quote. What are quotes? And how do insurance companies compute them?

insuranceUnderstanding Life Assurance Quotes

Life assurance quote, also called life insurance quote, refers to the amount of money that should be paid for the insurance coverage. The payment interval may be on a one-time basis, annually, monthly or quarterly (depending on the insurance company).  It should be noted that the quote varies from state to state and companies to companies so it would be better to check out your state’s policy or better yet shop for quotes first to get the best deal!

When asking for a quote, expect that the insurance company will ask for data about your age, family history, health condition and type of work. These data will help them calculate your quote. Yes, the quote is very much dependent on your current condition. So, expect that if you are still young and healthy, your quote is much lesser than a person who is 30 years older than you.

The principle here is simple. The older the person is, the higher is his/her risk of getting sick or maybe dying. Availing medical services is undeniably expensive so it is just reasonable enough to offer higher quotes for older people or for people who work in high risk environment like chemical plants, construction sites, etc.

Not to forget, the type of insurance policy also affects the quote. The cheapest is term insurance but its price grows higher as you advance in age. While life insurance is quite pricey but the best deal about it is that its premium amount stays constant even in your later years. Endowment insurance, on the other note, is much more expensive than both the term and whole insurance.

Be always ready in facing death. Be insured!

 

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>