Different Types of Insurance Available

Types of InsuranceInsurance is a financial product in which companies that offer it will take on some form of monetary risk in return for the payment of premiums. There are many types of insurance that you may want to consider purchasing to protect yourself and your family.

An individual will typically invest in it to guard against having to pay out a large sum of money for common problems that may occur. Being insured gives peace of mind that should disaster strike, the financial implications of this can be dealt with and some of the common insurance products available include the following.

Life Insurance

No one wants to think about dying although all adults need to consider the problems this can leave for family members. This is especially true for those that are breadwinners, and life insurance is designed to pay out a sum of money in the event of the insured person dying.

This is most commonly paid to a family member and is a way for someone to ensure their loved ones are provided for in the event of their death. Contacting a company that offers this is a way to get life insurance quotes that will show how much money can be obtained for different premiums.

Property Insurance

Anyone buying a home or business premises will usually have to get property insurance as part of the deal for receiving a mortgage. This type of business insurance can have a few elements to it, with the two most common being building and contents.

The building part covers for the cost of damage to the property caused by fire, flood, and other disasters. The contents part covers for the loss of the property owner’s belongings due to theft, vandalism, or damage.

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Are You Feeling Peer Pressure To Buy Whole Life Insurance?

Pressure To Buy Whole Life Insurance

When To Buy InsuranceA friend of mine recently complained about an old college roommate who was trying to pressure him to buy whole life insurance. He was having trouble figuring out how to tell him no, because they’d been so close back then.

This is an all-too-common occurrence for young professionals in their late 20s and 30s. This is the time when friends and family are test-driving new professions — like sales gigs, for example.

Many insurance brokers push whole-life policies because they provide them with the juiciest of commissions.

Several governmental surveys suggest that the average American will change jobs more than 11 times in his life. For many of us, it’s only a matter of time before we take a sales job that pays on commission.

Why They Peer Pressure You to Buy Whole Life Insurance?

For many people starting off in the financial services industry, the mantra is “you eat what you kill.” They have to sell their product, insurance policies, investments, brokerage services, etc., because the lion’s share of their paycheck comes from commissions on the sales they bring in.

But when people take that first sales job, they’re not likely to have a big, established client base to sell to. So they turn to the contacts they do have — friends, family, and coworkers — whom they bombard with pitches to buy products that might not always be the best fit for them.

Why Whole Life Insurance Gets a Bad Rap

Most Americans are just fine with a term life insurance policy — a relatively low-cost safety net to protect the people who depend on your income and other contributions should you die prematurely.

How much you need depends on the expenses you expect it to cover — if you’re responsible for mortgage payments, or expect your income to fund your children’s college tuition, you’ll need more. But when those needs are in the past, you often don’t need much life insurance.

A whole life policy is with you for your entire life as long as you make the insurance premiums. But what do you need that money for if your kids are grown and your mortgage is paid?

A 20- or 30-year term life insurance may be a better option for many families. And it’s a whole lot cheaper. A $100,000 whole life policy for a healthy 20- or 30-something may cost about $150 per month. But the same person can often get a 30-year term life insurance policy that pays out $500,000 upon death for as little as $20 a month.

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Should You Buy No Exam Life Insurance

This is a guest post by Jeff Rose who is a certified financial planner and blogs at GoodFinancialCents. If you would like to write an article for Money Q&A, please visit our Guest Posting Guidelines page. If you have ever considered buying life insurance online, you may have come across advertisements that claim, “Life insurance with no exam”, or “How to get your life insurance fast by avoiding a medical exam”. We get quite a few people that contact our office inquiring about these life insurance products. If you’ve ever consider going the no exam life insurance route, it’s important you weigh these considerations before you do so. Who Needs No Exam Life Insurance? If you are in good health, have no time … Read more

Understanding the Basics of Life Insurance

Whether you heard it from your insurance agent, an investment specialist or your own mother, you probably know that life insurance is a good thing to have. Despite that being the case, many people still have the question, how does life insurance work? Individuals have a vague understanding that money will be paid if someone dies, but things like whole life insurance policies complicate the matter. Understanding Term Life Insurance Probably the most common type of policy, term life insurance covers a predefined period of time. The policy owner may purchase the insurance outright, paying a certain amount of money up front for years of coverage. More commonly, the owner pays for the insurance policy each month. In this case, the policy expires at the agreed upon … Read more

Top 6 Critical Lifetime Milestones When To Buy Insurance

Top 6 Critical Lifetime Milestones When To Buy Insurance

When To Buy InsuranceOur lives are constantly changing, but far too often our life insurance policies do not keep up with our changing lives. Have you hit a different phase of your life? Have you reached a new milestone? With each new milestone in your life, your life insurance coverage may need to change. So, you must decide when to buy

With each new milestone in your life, your life insurance coverage may need to change. So, you must decide when to buy life insurance, when you have enough, and when you need to add more life insurance coverage to protect your loved ones.

No matter if you are starting to work at a new job or you are retiring, you may need to rethink your life insurance coverage. You may need to adjust your life insurance policies if you are newly single or just got married. Buying a new home or having children can also be a signal was to when to buy insurance. Each milestone in your life and transition to the next phase of your life can trigger a time when to buy insurance. Your unique personal circumstances often

Each milestone in your life and transition to the next phase of your life can trigger a time when to buy insurance. Your unique personal circumstances often warrant a time to reexamine your financial life. The right amount of life insurance that you have will change throughout your life as the circumstances of your life changes over time.

Changes in your life may require changes in your insurance coverages. Here are a few milestones in your life when you should look at buying new life insurance and increasing your coverage.

Life Insurance When You Are Single

If you are single and do not have children, you may not need very much life insurance. Although there are a couple of instances that you may want to consider purchasing life insurance while still being single. One reason that you may want to consider purchasing life insurance is if you have significant debts from cars, homes, or other assets that will need to be repaid by your estate. You may want to consider buying enough life insurance to pay off your home mortgage, any car loans, student loans, credit cards, and any other debt that you may have. 

This is one reason when to buy insurance that you may want to consider. Another reason that you may want to buy life insurance while you are single is to guarantee your insurability later in life. You can purchase riders for insurability later when you may be in poorer health and would have trouble buying life insurance. You should also consider the cost of life insurance. 

When you are young and in your 20s or 30s, life insurance is considerably cheaper than it would be if you had to purchase the same type of life insurance policy later when you are in your 40s or 50s. This is especially true when you buy whole life insurance. You may not see much difference or only a smaller rate increase when you purchase term life insurance.

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Why Your Stay At Home Spouse Needs Life Insurance

Do I Need Life Insurance For My Stay At Home Spouse

Do I Need Life Insurance For A Stay At Home SpouseDo I need life insurance for a stay at home spouse? Too many families forget to purchase life insurance for a spouse that stays at home and takes care of the children.

This can be a tragic mistake should the stay at home spouse die unexpectedly. There are many things that he or she does that would need to be replaced right away such as caring for the children, cleaning the house, and other items.

Not having life insurance for a stay at home spouse could make a dramatic impact on your family’s budget and put you in a financial hurt. This is of course on top of your loss.

Do I Need Life Insurance For A Stay At Home Spouse

Do I need life insurance for a stay at home spouse? Here are a few thing to think about when you are considering purchasing either term life insurance or cash value life insurance for a stay at home spouse.

It’s Tough To Replace A Stay At Home Spouse

If you stop and think about it, a stay at home spouse provides a lot of services to the family. Should your spouse die unexpectedly, then you would need to hire someone to come in and fulfill those roles in your home. For example, think of all the cleaning that your spouse probably does on a daily bases.

Your stay at home spouse also most likely cares for your preschool aged children. If he or she should die, you would need to pay someone to do those things. The same could be true for meal preparation. Not having insurance to cover the cost of these items could leave you in a financial bind.

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