Understanding Universal Life Insurance made Simple:

There's always a first time for everything, and getting to understand universal life insurance is not exceptional. The question in today's ReiVRE: Money Talk- life Insurance is – "Why do you need to understand universal life insurance?"

Understanding Universal Life Insurance made Simple:

Understanding the benefits of your universal life policy is very important. With all of the options available it can be difficult to choose the right type of life insurance. This article will explain what you need to know about universal life insurance.

When planning for your family's future and financial well-being you may consider taking out a life insurance policy. A life insurance policy can do more than cut a check to your family upon the event of your untimely death. Life insurance policies can also be used as investment vehicles that can carry significant tax benefits. This article is going to discuss Universal life insurance. What it is, how it works, and its use as an investment.

So, what is Universal life insurance? Universal life insurance offers some benefits and flexibility not allowed by other types of life insurance policies. Universal life insurance is a type of permanent life insurance, meaning that you will be covered until the death benefit has been paid, or you opt out of the policy for whatever reason.
A major benefit of a universal life insurance policy is the flexibility that it offers. You may increase or decrease the amount of coverage that you receive. You may also control the amount and the frequency of your payments. You may choose to increase or decrease the premium and you are also allowed to make lump-sum contributions.

Another benefit of universal life insurance is that at accrues cash value. The money you pay in premiums to the insurance company is invested in stocks, mutual funds, and other various investment vehicles intended to increase the value of the policy. The money earned in your life insurance policy will also be tax-deferred meaning that as long as the money is invested it is tax-free; you would pay tax on it once a payment has been distributed. However, if you need some cash you may also borrow against the cash value of your insurance policy. Since borrowing money is not considered income you would not pay tax on that money and any interest you pay on a loan may be able to be written off on your income tax return.

The investment possibilities and flexibility of universal life insurance make it a good option for a lot of people. However, you should always consult a competent professional on these types of financial matters.

Credit to our contributor: Stan Jenkins - To learn more about universal life insurance or life insurance in general please visit life insurance uk

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Types of Life Insurance and How to Shop Around

There's always a first time for everything, and getting Life Insurance is not exceptional. The question in today's ReiVRE: Money Talk-Life Insurance is – "How do you understand about types of Life Insurance?"

Life insurance includes 'investment-type' and 'term' insurance. Investment-type insurance includes policies that pay out on a certain date or when you die. Term insurance pays a lump sum if you die before a set date.

With investment-type life insurance you normally contribute monthly to a policy. Some policies only pay out when you die. Others pay out a cash amount on a specified date or on death. The amount paid out by investment-type policies depends on how well the investments in the insurance fund have performed.

Policies that pay out if you die, and if you don't

1. endowment policies
2. maximum investment plans
3. with-profits bonds
4. unit-linked bonds
5. income and growth bonds
6. other life insurance which builds up a value that you can cash in

Policies that only pay out if you die

1. whole of life insurance

Investment type life insurance can be expensive compared with traditional investments. Find out more on the Financial Services Authority (FSA) website.

Term insurance

Term insurance is usually a cheaper way of providing protection for your dependants should you die, with the monthly payments generally being a lot lower.

The policy guarantees to pay out a set amount if you die within a stated period of time, but doesn't pay out anything if you survive the term. The term could be, for example, the number of years left on your mortgage or the number of years until your children are financially independent.

Term insurance is sometimes called 'protection only' insurance.

How to shop around for life insurance

Whether you're buying investment-type life insurance or term insurance it's worth shopping around. Key points to consider include:

1. suitability for your needs
2. charges
3. return (investment-type insurance)
4. risk (investment-type insurance)
5. flexibility (what happens if you miss a payment or wish to cancel or switch?)
6. terms (conditions or restrictions)

There may also be other factors to take into account, depending on the type of insurance you're buying.

'Keyfacts' documents to help you shop around

Insurance companies or brokers selling life insurance are regulated by the FSA. Under FSA rules they must provide you with standard format ‘Key facts’ and ‘key features’ documents to help you shop around.

These documents help you compare:

1. the service they offer (advice or information only, whose products they choose from in the market and how they charge)
2. the key features of any insurance policy they recommend or provide information on

The difference between information and advice

You can buy insurance after getting advice, or based on information only after shopping around from life insurance companies.

The difference between advice and information

When you get insurance advice, the broker or adviser looks at your individual circumstances and needs and recommends a policy to meet them. This often involves a face-to-face meeting, but you can get advice in other ways, for example by telephone, email, or through the post. Under FSA rules, if the advice turns out to be unsuitable you have the right to complain and, in some circumstances, may be able to claim compensation.

Buying without advice

UK firms that sell insurance without advice still have to follow FSA rules, for example by providing you with certain information about their service and products. But if you buy this way it's for you to decide whether or not you think the policy is suitable for you. If things go wrong it may be harder to complain.

NB: For more valuable information and guideline visit: Life Insurance

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How to understand Life Insurance vocabulary !

There's always a first time for everything, and getting Life Insurance is not exceptional. The question in today's ReiVRE: Money Talk-Life Insurance is – "How do you understand Life Insurance Guide and Glossary?"

Life insurance has a vocabulary all its own. Some insurance terms might sound familiar, but have a different meaning when used in the life insurance world.

The following glossary provides insurance terms and life insurance definitions to help you speak the "language of life."

There are basically two types of life insurance, Universal Life and Term Life.

Term Life
This is the simplest form of life and the most popular. It is intended to provide large amount insurance for a fixed period of time, but for those on a budget. Payments are fixed for the term of the policy which can last, 5, 10, 20, or 30 years.

Universal Life Insurance lasts for the duration of your life and has a cash value. The premium payments are above the cost of the insurance and the extra payment amount is credited towards the cash value in addition to interest paid.

The amount of interest credit by the insurer is often tied to a financial index, so it is possible to see gains or losses of the overall cash value depending on how the indexes perform. The potential benefit of Universal Life is as a stable investment vehicle.

Beneficiary
The beneficiary of your insurance policy is the person designated by you to receive the policy benefits upon your death. You may designate that the benefits from your policy be allocated to multiple beneficiaries. And you may change your beneficiary designations at any time.

Coverage Amount / Face Amount
The initial value of the policy to be paid to the insured's beneficiary or beneficiaries in the event of the death of the insured while the policy is in force.

This value does not include adjustments for outstanding policy loans, withdrawals, dividends, paid-up additions or late/outstanding premium payments.

Health & Lifestyle Profile
The premiums that insurance companies charge for life insurance are also based in large part on the overall health and lifestyle profile of the proposed insured.

Typically, individuals in good health who do not use any kind of tobacco products or engage in any hazardous activities will be able to obtain less expensive coverage than individuals who are in poor health or who use tobacco or who engage in hazardous activities.

Different insurance companies use different criteria in determining the health status and lifestyle of the proposed insured.

Date of Birth
The premiums that insurance companies charge for life insurance are based in large part on the age of the proposed insured. Some companies use the attained age of the insured in this calculation, while other companies use the nearest age of the insured.

Insured
An individual who is currently covered under an existing life insurance policy.

Length of Coverage
Different term life insurance policies have different durations.

10, 15, 20, and 30-year term life insurance policies are very common. A 10-year level term policy will have an initial 10-year period in which premiums are level.

Premium
This is a payment to a life insurance company in exchange for a life insurance policy. The payment typically does not change on term life for the length of the policy.

Premium Mode
The frequency in which premiums are paid. Typically, the total annual premium is slightly higher when payments are spread out over the course of the year as opposed to being paid all at once.

Sex
The gender (male or female) of the insured or proposed insured.

Underwriting Guidelines
Underwriting guidelines are the health and lifestyle criteria for the proposed insured that insurance companies use to determine the appropriate underwriting classification upon which to base the premiums for the coverage.

These criteria typically include age, gender, tobacco use, height/weight build, and family history of heart disease or cancer, cholesterol levels, blood pressure levels, specific health conditions, driving record, hazardous occupation or activities.

Also, military service, aviation, foreign travel or residency, U.S. citizenship and felony criminal activity. It is important that all of these underwriting guidelines are taken into consideration when evaluating any premiums quoted for life insurance coverage.

State of Residence
The state in which the insured or proposed insured resides. It is not unusual for a given insurance company to be licensed to conduct business in some states and not in others depending on their licensing.

If an insurance company is not licensed to do business in a particular state, the company may not offer any of its products in that state.

If an insurance company is licensed to do business in a particular state, each of the company's products must be individually approved for sale in that state. It is not unusual for a given insurance company to have products that are approved for sale in one state and not approved for sale in others.

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Credit to Visit Equotegrabber.com

NB: For more valuable information and guideline visit: Life Insurance

"You are welcome to give your comment! Do you have anything you'd like to add or challenge about this hot issue? Any bad or good experience lets share. Your contribution will educate and benefit many readers".

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The Best Way to Undestand Life Insurance

There's always a first time for everything, and getting life insurance is not exceptional. The question in today's ReiVRE: Money Talk-Life Insurance is – "Why is important to understand life insurance?"

Globe life insurance is an important part of any family especially if you have many financial obligations. Some people might not like to think about life insurance for the obvious reasons, but please remember that with the right coverage you can insure that your family will be taken care of if anything should ever happen to you.

Thousands of people around the world neglect to purchase life insurance creating a very strenuous situation for their loved ones. One of the most important aspects of Life insurance is that in case of your death, your family will receive a steady stream of income so that they will be able to maintain their current standard of living. Losing a loved one is hard enough so there is no reason why they should also struggle financially. The good news is that you have the power to prevent this from ever happening.

If you are in doubt and don't know how much insurance to purchase do not worry because we can help. The primary idea is to provide your family with what they will need to help them overcome any financial obligation presented by your death. To achieve this goal the common guideline is five to ten times an annual salary, but this is nothing more than very general numbers. What you should be aiming for is income replacement. Even if you already have family life insurance it never hurts to make sure that your current plan provides sufficient coverage especially if your family has grown over the years. You might even find it sensible to purchase additional life insurance to provide more income to your family.

All you have to do is choose the level of coverage you require and if something might happen to you there will be a lump sum available to help your family when they need it most. With the right life insurance plan you can guarantee that your family won't have to worry about unpaid bills, taxes, funeral costs and other financial obligations after you have parted.

Life insurance will provide you with a reassurance that in case of any unfortunate occurrence, finances will be one less thing your family will have to worry about. So don't wait any longer, give your family and loved ones a gift that makes a difference. Act now and rest assured that if anything should ever happen your loved ones will be taken care of.

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Credit to Safe Haven

NB: For more valuable information and guideline visit: Life Insurance

"You are welcome to give your comment! Do you have anything you'd like to add or challenge about this hot issue? Any bad or good experience lets share. Your contribution will educate and benefit many readers".

Thank you for reading and comments if any: - ranci endo

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Reasons to Buy Life Insurance

There's always a first time for everything, and getting Life Insurance is not exceptional. The question in today's ReiVRE: Money Talk-Life Insurance is – "Why do you buy Life Insurance?"

Many people think insurance is a waste of money, while others believe in over insuring themselves. This brings up the question, "Why buy insurance?" Most people actually hate the idea of paying for insurance, since the odds of actually needed it are pretty low.

You pay monthly to something in the event that you might need it one day. Insurance itself comes in many forms such as auto insurance, homeowners insurance, life insurance, health insurance, renters insurance and many, many more varieties.

The purpose of having insurance is to protect you and your loved ones against any unforeseen tragedy. There are two ways you can go about buying insurance, should you decide you need it. There are agents who will guide you in the right direction and then you can also purchase it on your own. Be careful to do the research and learn about the different policies available. Then compare them against each other and make the best decision.

There is a definite advantage of using an agent to purchase your insurance policy. Make sure you find a reputable one that is with a solid company. They are able to offer you advice and any suggestions that can help you in your situation. The obvious advantage of doing it yourself is that you will pay less for your insurance.

When looking to buy insurance, ask yourself if you need that specific type. Make sure you understand exactly what it covers before purchasing. If you think that type of insurance is right for you, next figure out how much of it you need. Policies are different and can vary in what they cover.

Look at the dollar amount or if they are going off a percentage (of your loss). There might be just a deductible you are responsible for. Make sure you know exactly what is included and excluded.
If you have decided to purchase it on your own, the internet is a great tool for researching insurance. If you have gone with an agent make sure you are happy with the company that he is selling with, or go with an independent agent who has access to multiple companies. Make sure that the company is able to pay on your claims, if you ever have to file one. Look up ratings online for certain companies but also ask the agent.

Check with your state's insurance commission for any complaints or refusals to pay specific claims. Consider paying annually or even semi-annually, this can save you money. If you purchase more than one type of insurance from the company that also can help save you some money.

If you are a college graduate, check out what your alumni association has to offer. Colleges usually partner up with reputable insurance companies and offer discounts. The same applies to professional and religious associations. Network within your own resources when looking for insurance, try to avoid specials advertised on television the cover very little.

Think of insurance as small savings account that will protect you against catastrophic loss. Most people do not have enough in savings to protect their assets and livelihood in case something horrible and unexpected happens. These events may include totaling your car, a serious illness, your house burning down, grand theft of your property and more.

Most people cannot afford a $250,000 medical bill or come up with the money out of their savings to replace their home and personal property in the event of a fire. Insurance is a "savings account" in case the worst happens so you do not have to come out of pocket in these scenarios.

Insurance will protect you and your family from possible bankruptcy, can replace your property, your vehicle and provides a lifeline for your family if you unexpectedly die. Insurance is one of the most sound investments you can make to protect yourself and your property, so buy the best possible policy you can afford.

Then you can rest easy knowing you are covered, although make sure you understand and research the coverage you are buying to understand the exclusions and what is actually covered by the policy.

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Credit to Christina Costa, Visit Equotegrabber.com

NB: For more valuable information and guideline visit: Life Insurance

"You are welcome to give your comment! Do you have anything you'd like to add or challenge about this hot issue? Any bad or good experience lets share. Your contribution will educate and benefit many readers".

Thank you for reading and comments if any: - ranci endo

If you liked this post, please don't forget to stumble or digg it so even more people can read it and benefit!"