posted by Life Insurance25th, 2007
What Factors Determine Term Life Insurance Rates
By Peter Crump, Fri Dec 9th
Term life insurance policies provide a limited coverage period,which is determined by the policy owner. Term life insurancerates are actually the cheapest form of life insurance, butthere are different rates for different people. This is becauseonce the term of the policy is up you don’t receive any payoutfrom the policy. If you take out life insurance at a young age,you will get much better term life insurance rates than if youwait until you are older.
The total cost of your term life insurance rates can be tricky.Some term life insurance policies appear to cost more, but may,in fact, be cheaper when you look at the total cost of the termlife insurance policy. For example, annual renewable policiesincrease your premiums every year and thus may appear to be moreexpensive than level term policies where the premiums neverincrease (although the initial premiums for a level term policywill be higher). But, in fact, level premium policies mayinvolve higher costs over the policy’s full term, and becomeparticularly expensive when you try to renew your policy at theend of the term. This is why you do have to compare term lifeinsurance quotes.
Some of the factors that influence your term life insurancerates are: ·Whether or not you smoke. Tobacco users
are twiceas likely to die as nonï·“tobacco users while they areinsured. Life insurance companies take this into account whenthey set their premium and cash benefits levels. You can savefrom 20% to 30% on premiums by quitting smoking.
·Medical Record. If you have a terminal illness, it is unlikelythat any life insurance company will issue a policy. In the caseof heart disease, you will get a policy but your rates will behigh
·Occupation. if you work in a dangerous occupation, such asworking on a ship that carries gas, this will put you into ahigher bracket when it comes to getting rates for terminsurance. You will have to shop around to compare term lifeinsurance quotes if you are in this category.
Term life insurance rates vary a lot, and you can do somethingabout your premiums by taking some decisions to become morehealthy, like giving up smoking.
posted by Life Insurance8th, 2007
Critical Illness Insurance And Life Insurance Cover For Better And For Worse.
By Rachel Lane .
There are three main types of insurance cover you can buy to protect yourself and your family: life insurance, private medical insurance and critical illness insurance. If you want your financial health to be completely bionic then you could choose all three types of insurance, but if your family finances are more restricted, it might be better to insure yourself with critical illness insurance and life insurance. Critical illness insurance should not be confused with private medical insurance or even income protection insurance and it’s important that you do a full evaluation of your needs before you pursue the different insurance options.
The purpose of critical illness cover (CIC) is to fill a gap that is left by traditional life insurance policies, which will only provide a pay-out on the death of the policy holder. CIC provides a tax free lump sum following the diagnosis of one of a number of life-threatening illnesses or certain types of surgery. The sorts of situations usually covered include the diagnosis of cancer, a stroke, a heart attack, the loss of a limb and many other serious disabilities.
Critical illness insurance policies are typically sold to cover mortgage repayments and are often sold alongside a life insurance package to ensure the borrower can repay the loan in all circumstances. It is worth noting that if a combined life insurance and critical illness cover package is taken out, then it would not be unusual for an insurer to pay out for only one of the events. Therefore if the policy holder suffers a critical illness and then dies at a later date, there will only be one pay-out – for the initial illness. It is essential whenever you take out a policy that you make sure it covers all of your needs and those of your family. Don’t estimate how much cover you may actually need. You will additionally need to consider the period
for which you want critical illness cover, such as a set number of years to cover the mortgage or no fixed period at all, so you can maintain the policy as long as you need it.
The critical illness insurance market has come under increasing pressure in recent years, as the number of claims has soared, survival rates increased and medical science has made it far easier to detect serious conditions much earlier. These factors have prompted some serious questions about the viability of critical illness cover, particularly guaranteed products.
For the majority of people, the most important benefit of critical illness insurance is to protect their mortgage and most mortgage protection policies allow you to include life insurance and critical illness cover. If you already have life insurance in place, you can buy an additional, separate critical illness insurance policy.
Resources:
http://www.abi.org.uk/ The Association of British Insurers
http://www.moneynet.co.uk/insurance/index.shtml Consumer Insurance Comparison Research
http://www.moneynet.co.uk/home-car-travel-insurance-guide/index.shtml Insurance Guide
Disclaimer:
I am not a financial expert. Read my article, but do your own research. No lawsuits here please.About The Author: Rachel writes for the personal finance blog Cashzilla – personalfinanosaurus – licensed to roar. Rachel spends her not-so-free time researching and writing personal finance articles, but she gets through it with Smarties and Fruit Pastilles. To read more about Rachel and Cashzilla visit http://www.cashzilla.co.uk
We strive to provide only quality articles, so if there is a specific topic related to life insurance that you would like us to cover, please contact us at any time.
And again, thank you to those contributing daily to our term life insurance website.
