Article Categories
» Arts & Entertainment
» Automotive
» Business
» Careers & Jobs
» Education & Reference
» Finance
» Food & Drink
» Health & Fitness
» Home & Family
» Internet & Online Businesses
» Miscellaneous
» Self Improvement
» Shopping
» Society & News
» Sports & Recreation
» Technology
» Travel & Leisure
» Writing & Speaking

  Listed Article

  Category: Articles » Finance » Insurance » Article
 

Buying Life Insurance Online




By quote

I am considering buying some life insurance what do I need to know ?

In the past life insurance was something that you sorted through your broker when he or she came to visit at home and they sat and discussed it with you for a couple of hours and answered any questions you had. As with everything else and as socitey has changed so has how we now buy our life insurance. With the advent of the Internet and with technology transforming the insurance industry the days of the visting broker are numbered. Car insurance led the way with instant online quotes and applications on the Internet, however this is not as hard to understand as life insurance as apart from what make is it and whats it say on the numberplate what else do you need to know ?

With life insurance there are a number of key factors you need to understand before you make the purchase.

Level or Decreasing ?
Where level life insurance is selected the amount of cover will stay the same throughout the length of the insurance. Your payments will stay the same except if you change cover. This is also known as term life insurance or family protection and is ideal to cover interest only mortgages or leave income for a family should you be no longer with us.
Where decreasing life insurance is selected the amount of cover will reduce each year on the anniversary of the start date of your life insurance. The amount of insurance is calculated to match the maximum outstanding on a loan in the next 12 months. This is the basis for the decreasing life insurance regardless of the purpose of cover for example if not taken out to cover a loan or mortgage. The payments will remain the same throughout the length of the cover.
Decreasing is often cheaper than level life insurance as the sum assured is coming down over the term of the policy.

Can the payments change ?
This is purely dependant on the type of basis you choose, this can either be guaranteed or reviewable ?

Guranteed - If you choose to guarantee your payments they will not change during the term of the cover unless you make any changes.

Reviewable - If you choose to make your payments reviewable they may change during the length of the cover, these are offered to make the payment more affordable at the start of the contract, more often than not the review occurs after 5 years and then every 5 years during the term of the contract. The review of the life insurance could recommend the policy premium is reduced - very unlikely, stay the same - likely, go up in premium - likely. The review is not based on your medical history or because you are older but normally on industry claims experiance.

It says i have terminal illness included with my life insurance whats this ?
Terminal illness is normally included as standard to any good life inusrance contract, this pays the guaranteed sum immediately rather than upon death if you are diagnosed as being termninally ill with a life expectancy of less than 12 months. This does not apply during the last 18 months of the period of cover. Please dont confuse this with critical illness cover as this is far more expensive option and wont be included standard.

Should I place my life insurance policy in trust ?
In a word yes, this will enable in the event of a claim the sum assured of the life insurance policy to go directly to the person or people you decide. This also avoids the possibility of your estate having to pay inheriatance tax on the proceeds of the policy. This is normally offered as part of the service with any reputable life insurance broker.
 
 
About the Author
For more information feel free to visit http://www.unbeatablelifeandcriticalinsurance.co.uk.

Article Source: http://www.simplysearch4it.com/article/49172.html
 
If you wish to add the above article to your website or newsletters then please include the "Article Source: http://www.simplysearch4it.com/article/49172.html" as shown above and make it hyperlinked.



  Some other articles by quote
What Benefits Are Available On Life Insurance ?
I want life insurance what options should I consider adding ? When taking out a life insurance plan there are a number ...

When Should I Buy Life Insurance ?
Life insurance is the best type of protection you can get for your family should something unfortunate happen to you. The consequences of not having any life insurance or not quite enough ...

Life Insurance: Tell Me About It And How It Works ?
Life insurance offers you an opportunity to ensure the financial security of your family and loved ones, no matter what happens. Life insurance can be used ...

  
  Recent Articles
Get the Best Insurance Policy For Your Home
by Barbara Thorp

Travel Insurance Online: Both Money And Time Saving
by Henry Bell

Travel Insurance UK: Travel Without Worries
by Henry Bell

Who Else Wants Health & Life Insurance Leads that Turn to Clients 80% of the Time
by Ken Wilson

Build a Network of Client You Can Be Proud of from Closing Auto Insurance Leads
by Ken Wilson

Get Rates that Insurance Agents Get on Life Insurance
by David Yuri

Secrets of Low Cost Health Insurance
by Clint Jhonson

Little Known Ways to Save on Life Insurance
by David Yuri

Now You Can Have Home Insurance Leads that Convert to Policies
by Ken Wilson

The Secret of Auto & Home Insurance
by Clint Jhonson

Must Know Insurance Saving Tips and FAQ
by Clint Jhonson

At Last an Insurance Magazine for Both Insurance Consumers & Insurance Agents
by Clint Jhonson

Home Content Insurance: An Additional Safety
by Henry Bell

Car Insurance Quote: Select an Appropriate For You
by Henry Bell

Insurance
by Henry Bell