Which life insurance company should you choose? That’s the million dollar question which is answered in this article. We’ll answer your questions one by one and provide you with useful information about the topic. So sit back and enjoy reading this article
Universal life insurance: This type of policy is most popular in United States, Canada and some parts of Europe. Universal life insurance is a financial contract between an insurer and an insurance holder, under which the insurer promises to cover a designated beneficiary an agreed amount of money upon the death of a insured person. Depending on the contract, death benefit coverage can be paid monthly or annually, with regular payments made automatically to the designated beneficiary in case of the insured’s death. Some contracts also allow the insured to borrow against the cash value of the policy, which is returned when the insured dies.
Term life insurance: A term insurance policy gives the insured a fixed premium for a specific time period. Term insurance policies are usually renewable, though not all are. Most Term insurance policies have a death benefit, which is a part of the cash value of the policy. The term may last for five years or more. After the term, the premium gradually decreases.
Inflation coverage: This is another factor which is taken into account while determining the life insurance policy premium. Generally speaking, the more recent the medical conditions, the higher the premium. It is important to understand that if the policyholder becomes very ill during his lifetime, his premiums may go up significantly. Thus, it is best to ensure that the condition is not expected to get worse in the future.
High-risk factors: The health history and lifestyle of the applicant can be analyzed to determine the risk of dying in a certain medical environment. Some of the questions which can be asked include: Have you ever suffered from high blood pressure, diabetes, cancer or obesity? Has your family ever had a history of heart problems, kidney problems, blindness or deafness? Did you ever have a serious accident or injury? How many car accidents did you have in the past five years? Did you take drugs or substances which were known to be addictive?
The answers to these questions will reveal if the applicant is a high-risk candidate and therefore the applicant will pay a higher death benefit. Generally speaking, the longer a person lives, the higher the premiums on his policies. However, if the insured does not die in the given period of time, he will receive the full death benefit. Insurance companies use this rule to reward policyholders with a substantial amount of cash if they remain alive for a long time. Since no life insurance company wants to pay out a large amount of cash to a person who does not pass away, they generally set up a system that rewards policyholders for remaining healthy for a longer period of time.
Term life insurance: In most insurance policies, the insured is guaranteed a death benefit. However, it is possible for people to choose from several different types of coverage which are usually flexible enough for them to change as their lifestyle changes over time. Some of the most common types of coverage are: whole life, universal life, variable life, and term life insurance. Each type of insurance has different features and benefits and it is best to speak with an experienced insurance professional to determine which option best suits an individual.
These types of policies can be purchased from most reputable life insurance companies. Most people prefer to purchase their coverage from reputable companies because they know that they will receive the best coverage and service possible. Although life insurance companies can vary greatly in the services and benefits they provide, there are some which tend to offer more coverage at a more affordable cost. To find the most reputable company that offers the best rates, individuals should speak with their family, friends, and financial advisor to obtain more information about which company offers the policy that best fits their individual needs.