How to save money by investing on life insurance
With a little bit of precision and proper market survey the best deal will invariably land in your lap. This new consumerist economy forced the life insurance corporations to emerge in its new avatar. Form being just life insurance corporations it has now become to money saving forums catering to the needs of its aggressive consumers.
Ways to save money when investing on life insurance-
-Always go for financially sound companies when investing on life insurance-Almost all companies these days sell life insurance. So, it is better to narrow down your search by going for only companies having good reputation in the market. Do not get lured by companies offering low premium rates. They may turn out to be a bad choice in the long run.
-Determine the right rate class-Once you have decided which companies you want to go for determine the rate class that suits you best. Most of the life insurance companies sell different price classes.
-Do a small market survey research to decide the standard premium rate- A small market research is crucial in determining the standard premium rates charged by life insurance corporations.
-Look into group insurance-Employer sponsored life insurance are perhaps the safest bet. It is advisable to go for it even it require you to shell out a few bucks from your own pocket. Employers of reputed corporations generally provide a subsidy on group insurance costs making it less expensive than individual life insurance. Make a comparison on group and individual rates while taking into account certain factors like health status, age etc.
-Paying premiums at small intervals is not a good money-saving tactic-Paying your premiums at small intervals may cost you much more than paying once every year or once every half-year.
-Get a good rate for yourself-Finding yourself a good rate may be a daunting task for you as many companies essentially offer different rates for the same policy.
-It's advisable to look for renewal guarantees-Always go for renewal guarantees. So, that after the current renewal ends you are able to start a new term and in the process save money.
Getting the right kind of deal and saving money by buying a life insurance may turn out to be a messy affair if you do not take proper precautions before venturing out to find the deal that suits you best. It is a good idea to get some handy tips from an industry insider so that you do not fall in a financial trap.
Saving money is all about making then right moves at the right time. So, throw all your financial worries at bay and invest on life insurance only to gift yourself and your family a life worth living.
Article Source: http://www.articlesnatch.com
About the Author:
Martin Lukac represents RateEmpire Auto Insurance marketplace which connects consumers with multiple insurance companies that compete for their business. RateEmpire is a destination site of Insurance quotes, personal finance, investing, taxes and mortgage rates. For more information please visit How to save money by investing on life insurance
Is Income or Lump Sum Life Insurance Best?
by Christopher Johns
Most people with life insurance choose a policy that pays out a lump sum in the event of their death or terminal illness where included. However, there is another payment option available whichs pays out periodic or monthly payments rather than receiving all the money at once.Unlike some other insurance considerations (such as how much insurance you can afford), deciding between a lump sum and a series of regular payments often means thinking about what's best for your beneficiaries, rather than yourself. It may not be much fun talking about what will happen if you die, but if the objective of insurance is providing for your loved ones if it does happen, then it makes sense to get these details sorted out.
It's important to note, first of all, that an income policy could potentially pay out more or less than a lump sum policy depending upon when a claim is made. With a level lump sum policy the cover will always be the same whether you claim at day one or the day before it terminates. However, an income policy will only pay out for the remaining term which restricts the number of payments your beneficiaries can receive. So if you choose a monthly benefit of £1,000 and claim a month before the policy ends, your beneficiaries will only ever receive £1,000. It's for this reason that an income paying policy is the cheapest form of life cover, like for like.
If your beneficiary is an adult (for example your spouse) then there's usually no problem with providing the insurance payment as a lump sum. It may even be a good idea to talk to your beneficiaries and find out what they would prefer. The payment option you choose will be very much dependent on your family circumstances, and on which option will most benefit them. If, for example, the insurance is intended to pay off the mortgage, then a lump sum is typically the best option. On the other hand, your family may benefit more from a regular income rather than a large sum of cash if the mortgage has already been fully paid or is taken care of with additional mortgage life insurance.
In some situations, your beneficiaries may be young children, teenagers, or other people who you might feel uncomfortable leaving a lump sum to. In such cases, you may want to ensure that your dependants have a regular income, or you may simply want to restrict their access to a large lump sum as they may be too young to manage it effectively.
Most of the time, this is a pretty simple choice to make as it usually comes down to the specific needs of your beneficiaries. In most cases, a lump sum works well, and is the simplest choice for providing the most financial flexibility for the beneficiary. As a general rule, if your beneficiary is a minor or other financially inexperienced dependant, an income can be a better option. An adult beneficiary may prefer the flexibility of a lump sum which can be used or invested as they desire, while for a family, either option might be appropriate depending on the specific circumstances.
About the Author
Why pay more for life insurance when you could save up to 40% by using a discount life insurance broker such as Life Saver. Get instant online quotes comparing 20 major UK insurers at discount rates from Life Saver at www.life-saver.co.uk.
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