If you want to make your family financially secured after your death, the only answer is, own a life insurance policy. Moreover these life insurance policies help to keep alive the plans you made for your family and the career of your children even after your death. So now you could see the priority of life insurance policy in one’s life.
Now with the availability of so many life insurance policies you might ponder for the right and cheap life insurance policy a well as that which works best for you. arizona term life insurance Many people consider term life insurance policy to be the cheapest and simplest way to cover their beloved one’s future in the event of their death. For instance, if the term life insurance policy matches the repayment term of your mortgage, the life insurance lump sum can be used to clear your mortgage debt in case you die before the mortgage repayment term cease.
The more you go with convoluted insurance policy the more premium you are required to pay. That’s the reason why many people prefer term life insurance policy.
Since the premium you pay is very less (as there is no investment element), Term life insurance becomes the most affordable and cheapest way to cover your life. You get the payment as lump sum if you die within a specified period.
However, it is seen that life insurance premiums are now up to 40% cheaper than they were before.
It is also advisable to get as many numbers of life insurance quotes before you apply for a policy as it decides how much your premium will be.
Term life insurance quotes can be collected from banks, any financial organization or any reliable consultants. However it is best to get online term life insurance quotes and then make a comparison based on your budget and requirement.insurance agency tempe However check for the authenticity of online companies before investing in any of them.
However, these quotes can change once you complete with the application. If you are unhappy with the premium, you may not carry on with the policy.
Policies generally require a medical clearance test, but if you don’t want to wait for a medical report you can go for term life insurance no exam policy, which is also affordable and cheap.
What is Disability Insurance?
” The Social Security and Supplemental Security Income disability programs are the largest of several Federal programs that provide assistance to people with disabilities.supplemental accident injury insurance While these two programs are different in many ways, both are administered by the Social Security Administration and only individuals who have a disability and meet medical criteria may qualify for benefits under either program.”
- Social Security web site, June 2006
The Social Security office will want to check your medical history to be sure you qualify for disability benefits. The Social Security office is one way to get disability benefits, but in most cases these benefits will not be substantial enough for families.
Disability insurance can be obtained through any number of insurance companies. In the event that you are disabled, this insurance will serve as financial protection.comparison of critical illness insurance policies You will receive a percentage of your gross income from your disability insurance policy, income that will ensure your own financial safety.
You do not have to go through the Social Security Office to take out a disability insurance policy, nor to receive the benefits from that policy. The Social Security disability program is not related to any disability insurance policy that you take out.
” Individual disability insurance is truly a basic concept. It is an insurance product designed to replace anywhere from 45-60% of your gross income on a tax-free basis should a sickness or illness prevent you from earning an income in your occupation. Every disability insurance policy from every insurance company is very different, this is not a product to simply shop for the most competitive rate. To buy the cheapest disability insurance policy on the market is to throw money away. The odds of getting paid a monthly benefit under a cheap contract may be significantly lower than receiving benefits from a quality contract.”
- About Disability Insurance web site, June 2006
Types of Disability Insurance
Most people are familiar with two types of disability insurance: short-term disability, and long-term disability. Short-term disability insurance is included as part of a benefits package with many different employers, and usually provides an income in the early part of disability. Short-term disability insurance generally provides coverage for a period of several weeks, and does not exceed a two-year term.
Long-term disability, however, can last for a period of several years. These types of policies may be included as a part of employment, in a benefits package, but many purchase these disability insurance policies individually.
As far as disability insurance goes, however, there are still more policies to learn about. One type of disability insurance is the Own-Occupation Disability Insurance. The definition of this policy reads:
” The inability to perform the material and substantial duties of your regular occupation, the insurance company will consider your occupation to be the occupation you are engaged in at the time you become disabled, they will pay the claim even if you are working in some other capacity.”
Another kind of disability insurance is the Income Replacement Insurance. This is a very popular type of disability insurance, and most insurance agents are familiar with this policy. The language of this type of disability insurance reads:
” Because of sickness or injury you are unable to perform the material and substantial duties of your occupation, and are not engaged in any other occupation.”
Common in employee benefits packages, Gainful Occupation Coverage is another popular form of disability insurance. The language here is worded very carefully:
” Because of sickness or injury you are unable to perform the material and substantial duties or your occupation, or any occupation for which you are deemed reasonably qualified by education, training, or experience.”
If you’re very sick and distressed, the last thing you want is lots’ of questions and high-handed hassle from your insurer.
There’s undoubtedly a conflict here. If they are to neutralise the bad press, the insurance companies need to work much harder at softening the enquiry process and they must liase much more closely with their claimants. Insurers must present a much softer centre at what is a most distressing time for their claimants.
All this adverse PR has had two effects on the critical illness insurance market. Applicants have apparently been favouring insurers who publish the lowest rejection rates and others have withdrawn from making any application.
In practice, avoiding insurers who publish high refusal rates has little benefit. That’s because the published figures can be misleading. The latest figures show that Scottish Equitable Protect has refused to pay out on 28% of critical illness claims followed closely by Friends Provident at 25%. If you compare these figures with Scottish Provident at 13.7%, many potential policyholders can be forgiven for favouring Scottish Provident. But that’s not necessarily the best decision.
The problem with interpreting these figures is that the figures themselves can be distorted by how long the insurer has been active in the critical illness market. As rejection rates are highest with policies that have only run for a few years, then companies that are new to the critical illness market will automatically have the highest rejection rates. This leaves companies such as Guardian Financial Services looking good with a rejection rate of just 10%. The truth is that the Guardian has been in the market for over 15 years and has a mature book of business.
And it’s a pity that all this negative publicity has undermined confidence in critical illness insurance. In our view, this insurance plays an important part in protecting family finances but people are being deterred from buying it, leaving their family unit exposed if they become seriously ill. After all, if the main income provider is taken seriously ill, the family’s income can plummet.compare cancer insurance plans That means that the tax-free lump sum paid out by these policies can become central to the family’s financial survival.
Our advice is if you think you need critical illness cover press on. But be aware that these policies vary a lot in the cover they offer – so straight price comparisons aren’t really meaningful. Basic plans will cover one or more of the most serious conditions but comprehensive plans cover many more– for example: