Getting an insurance is key in securing your family’s future. It is both for your financial stability and your peace of mind. If you are the breadwinner and the main source of income to pay for the family’s expenses, you need to make sure there is a pre-arranged sum of money that will go to your dependents in the event of your demise. But getting a life insurance policy is easier said than done. That’s why we came up with this step-by-step guideline to help you through the process successfully.
When you apply for a traditional Term Life Insurance Policy, you will be required to pay for a fixed premium every month for a certain period of time. If you die within the term, death benefits will be granted to your beneficiaries. However, if you did not die after the term, you will get nothing. What if you want to secure your family but you do not want to lose everything you have paid for should you still live after the term? You can apply for Return-of-Premium (ROP) Life Insurance.
Term life insurance is simply a death benefit awarded to the beneficiaries of the insured person. When someone in the family dies, the bereaved survivors are left with financial burden to cope with, not to mention the emotional difficulty and the sense of loss that are part of the grieving process. Term Life Insurance seeks to give indemnification of sort to the family of the departed one through financial reward that is sourced out from his term life insurance policy. Of course, no amount of money can completely assuage the pain of losing a beloved but at least the insurance proceeds can help in relieving the beneficiaries from financial troubles.
> Every person has various necessities when it comes to availing of a life insurance. Some need to search for premium offers that will suit their budget; others need to ensure that it won’t prevail over the standard of living of their family; while others just want to invest in a minimal rate while they are still young. To safeguard the appropriate term for the best price, it is significant to apprehend the number of options available.
Since the 1980s, there has been an explosion of investment instruments which have come out on the market. One result of this is that people started investing more with these instruments, and less on life insurance. In addition, people were buying term insurance in order to save money on insurance coverage, at the same time the savings was allocated for investments. At that time the most investment that a person could get from an insurance would be if he bought a pension plan or a hybrid participating insurance with a dedicated portion of premiums invested in a trust fund. These newer type of insurance were more expensive than the regular life insurance on offer and were harder to sell.
Term life insurance is the most commonly availed of insurance plan because it is more affordable and convenient. Moreover it can be considered as an inheritance for beneficiaries of the policyholder. It has in fact become the most convenient way of bestowing a legacy to loved ones in the absence of properties or bank accounts in one’s will. Another attractive feature of term life insurance is its constant premium rates that stay the same throughout its duration. It can also be renewed for another period or converted to whole life insurance as the case may be.
So you’re at the crossroads right now trying to decide which insurance plan is best suited for your needs, eventually. Choosing between whole or term insurance plans can be tricky especially if you are not quite sure on how and why you should invest your money. For your benefit, term life insurance is one of the options you can choose if you do not intend to pay for large premiums especially during this point in time. There are many benefits of getting one and an online term insurance plan is also available if you choose this path to invest your money.
You might be at the point in your life where you feel that it is about time that you get insurance for your parents, if they do not have one yet. With mounting costs and eventual care needs as they grow older, having some form of insurance would be to their benefit. There are plenty of companies which allow you to get life insurance policies for parents and yes, it is something that you are allowed to do. Much like securing one for your spouse or child, parents can also have their own life insurance courtesy of their children.