How Life Insurance Raises Premiums and What to Do about It

How Life Insurance Raises Premiums and What to Do about It

Annual Premium

Sometimes there can be cases where life insurance companies are losing their net worth, their business or facing insolvency issues, where they are facing a pile of debt. Such companies may not want to file for bankruptcy and instead want to cut down costs and slash money from different liabilities, basically getting rid of some of their policies. The company would need some policy holders to cancel their insurance, but instead they would find a loop hole and raise life insurance premiums on some customer’s universal life insurance policies.

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How to check security of your life insurance company

How to check security of your life insurance company

life insurance
life insurance

Choosing your life insurance is a very important decision because it is a big factor when considering the inheritance your dependents receive or the fate they have in the end. There are several factors to consider before choosing the right insurance company to lay out and put your life insurance plan in action such as ratings of the company, financial plans offered and effectivity of the plan.

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Why You Do Not Need Life Insurance after You Retire

Why You Do Not Need Life Insurance after You Retire

Life insurance is not always mandatory. Obtaining a life insurance policy significantly depends on your financial condition. The purpose of life insurance is to provide for needs when there is loss of income due to these factors . Life insurance helps protect your spouse and children from poverty in the case of your untimely death. However, once your children become independent enough and you and your spouse accumulate sufficient assets, the requirement of paying the premiums for life insurance becomes much lesser. There are some questions you need to ask yourself when considering whether or not life insurance.

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Types of Life Insurance

Types of Life Insurance

Building wealth is an activity which everyone is keen on partaking in. But in order to build wealth, it is important to have a personal discipline, having an understanding of current events so you have an idea of what to do and finally, it is important to have the right type of life insurance. There are two types of life insurance, term and single premium. Term insurance is “renting” life insurance coverage. The insurance coverage is calculated based on a person’s mortality rate and the calculations made by the actuaries of the insurance company and therefore, provides a rough estimate of the sum of money a person’s heirs will receive. Generally speaking, as a person lives through each year they are closer to death. Because of this the premium on the insurance would increase every year. So instead of having to pay more and more sums of money to insurance companies each year, the companies offer something known as “level term policies” and the insurance premium is guaranteed not to rise over a specified period of time, although you would have to pay a little bit more than usual in the first year. For example, an insurance company would offer you a steady premium payment of over 10-30 years. But the problem arises when the level term policy reaches its end and the premium rises again in price.

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What is Life Insurance?

What is Life Insurance?

life insurance
life insurance

Life insurance could be one of the most important financial decisions an individual could take in their life. After some one dies, it is entirely possible that someone could suffer financially. This includes spouses, children, aging parents or even business partners and employees. So to put it simply, life insurance is an agreement and a contract between a person and their insurer (who helps them process the life insurance) where the insurer will pay a sum of money to a specific person upon the death of the individual. Experts have a rule of thumb, where they recommend an individual buys life insurance from 5 times to as high as 20 times their annual income. However, life insurance is an extremely important asset to have, so people should not follow the rule of thumb blindly.

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