What is Whole Life Insurance All About?

August 25 [Sun], 2013, 10:01
If you are one of the many people who wonder what is whole life insurance all about, well it is a program and a security whose main purpose is to provide your loved ones financial security in the form of replacing part or entire income of the policyholder at the time of their unexpected death.
whole of life insurance definition. It is the kind of insurance contract wherein the insured person is given insurance coverage for the entirety of his life. Similar to all the other kinds of insurance programs, it usually a whole life insurances comes with appointed beneficiaries too. When the insured person dies a natural form of death, his designated beneficiaries will be paid of your death benefits as indicated in the insurance contract. In addition to all these, a whole life insurance policy features a savings component. With this your account is able to accumulate cash value and this grows over time.
Let me share with you now some of the best practices you can follow when looking for a whole life insurance policy, and know what they should include:

Check the Amount of the Policy
The amount that you are going to have in your whole life insurance policy may be determined by several factors, and as an insurance applicant that you are this would include your other sources of income. Part of the things that needed to be taken into account are your outstanding debt (if there is any), total number of people financially depending on you and your lifestyle.
Rule of thumb to follow here, make it a point to apply for an insurance coverage that is between 5 and 10 times of your annual salary.

Checking the Cost of the Policy
Depending on the insurance company you are trying to deal with, you may come across a number of different costs for the same kind of insurance program and this is just normal and they would really have varying costs for the same product. Thus it would be wise and practical to shop around for the best deals first before you ink up a contract with any of these insurance companies. This way you don’t end up making a mistake, in terms of cost, when choosing an insurance program to take. Aside from this, the cost of the policy is going to depend greatly on the coverage that you would want to have for yourself. Most of the time the underlying premiums that you are going to have are based upon actuarial tables which is made to depict the life expectancy of each insurance applicant. You should know that insurance companies have this so called high risk applicants and they are the people who are considered to be overweight, those who an unhealthy kind of lifestyle, smokers and people who have a dangerous kind of job or hobby. Naturally these high risk insurance applicants are given higher premium rates.


Why Need a Whole Life Insurance Policy?
What is whole life insurance? The level of need that you will have for it will depend on your personal situation. People who have raised or are raising a family are advised to get this kind of insurance policy; since they can give to their immediate family members that they’d still be well off in case that he suddenly died. Most especially if you are the family breadwinner, you should not take getting a whole life insurance policy lightly since what is involved here is your family’s future and well being. If your monthly income plays substantial role in addressing recurring expenses in your household such as utility bills, grocery shopping, education for your children, etc., then the more and better reason that you have to take this kind of insurance program. It will definitely go a long way if what you are most concerned about is keeping up with settling the financial obligations to make for family in case that you die prematurely.
プロフィール
  • プロフィール画像
  • アイコン画像 ニックネーム:longroterhand
読者になる
2013年08月
« 前の月  |  次の月 »
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
最新コメント
ヤプミー!一覧
読者になる
P R
カテゴリアーカイブ
月別アーカイブ
http://yaplog.jp/longroterhand/index1_0.rdf