Life Insurance Policies - Top Tips From The Industry Experts
Probably all the insurance specialists will tell that getting a life insurance policy is the proof that the person is creating a solid financial plan. Why is that? In the following article we will begin by offering few reasons related to the importance of a life insurance policy.
If you are not at all familiar with this domain, it is very important that you get proper advice from a person that is ready to work on your benefit, without having any hidden secondary purposes. What I mean is that you should contact a life insurance broker who will work on your side, searching the market, giving you the answers to all your questions and assisting you in any important life insurance related decision.
You can find a reliable life insurance broker if you ask your friends, family members or if you simply read about other peopleâ€™s experiences. People use discussion forums to write and explain their past experiences and you should learn from them. To begin with, check out the leading Romanian life insurance broker at the asigurare de viata website; the web page includes precious advice and free information.
First of all a life insurance policy replaces income for dependents. In many families members depend financially on the income that a certain individual is earning. If that person dies, insurance will replace that income. I am talking here about parents that have younger kids who are completely dependable on their mother and father income. But the policy can be of great help for couples when of the partners dies and the remaining one is severely affected by the loss of income.
Then, life insurance can pay for the costs associated to your funeral and burial and can also cover administration costs, debts or medical expenses in case they are not addressed by the health insurance policy.
When you have signed a life insurance policy, it can become an inheritance when you name certain persons to be the beneficiaries. So, you can choose to pay the regular premium related to a life insurance policy and thus assure that your kids or anyone else that you mention as beneficiaries, get the money remaining after your death.
It is very possible that the beneficiary might be a charity institution and in this case you can make a more substantial payment compared to the situation in which you simply donate the cash equivalent of the premiums. In some cases, the cash gathered through a life insurance policy may be borrowed by the owner. In this case, we are talking about a source of savings.
One of the types of life insurance policies existing on the insurance market is the permanent life insurance policy. This type of policy offers lifelong insurance protection. In case you die today, the insurer will pay a death benefit, in the same way you live longer than that. This policy allows you to save money and this will make premiums to be larger compared to the other life insurance policy type, the term life insurance.
Permanent life insurance means paying regularly a premium that remains almost the same over time; this is not true when we are talking about the amount of money that needs to be paid as a premium of a term life insurance policy. Every time you renew the term policy, it is very possible the amount gets larger.
Permanent life insurance policies are different and you can choose between few types like: whole life, universal life, variable life and variable/universal life. It is important to realize the difference between the cash value and the
face value. The cash value is the sum of money that is available to you while the face amount is the sum that will be paid when you die.
We are going to talk now about some of the benefits of buying a permanent policy. First of all, the premium is going to remain the same, no matter your age or your health status. In the very same time, as stated before, the permanent life insurance policy is a mean of saving money. You may even use the cash value to pay the premium.
If something unplanned happens, you are permitted to stop or reduce the premium. If you choose to borrow money from the insurer you will need to pay the money back. You will be required to pay as well an interest, as in any other loan situation.
If you are in the situation of filing an insurance claim, you first need to have several copies of the death certificate. Then, call the life insurance broker as he is the most entitled person to help you with it. He will help when it comes to filling the papers and forms required by the life insurer. If you do not have a life insurance broker, then you need to contact the insurer directly. After you submit a legal copy of the death certificate, you will receive a settlement.
After that you should decide if you want to be given all the money at once, or you want the money divided in smaller portions, at specified dates in the calendar. There is also the possibility that the company keeps the money and pays you an interest on a regular basis. This way the death benefit remains in their charge and will be passed unto another beneficiary at your death.
There are some circumstances when the life insurance policy needs to be reviewed. In fact, specialists advise that every person should be doing this at least once a year. If you have passed through a major life change, then it is time to call your life insurance broker and perform the necessary changes in the papers.
You should consider a major event: your marriage or divorce, the birth of a child, you decide to adopt a child, you become seriously ill, you take on the financial responsibility of an aging parent, you buy yourself a new home, you refinance your house, you receive an inheritance.