Your Life Insurance: How Does It Work?

By Tom Martens

A life insurance policy is exactly what its name suggests'an insurance policy covering the loss of your life. You buy your life insurance policy from an authorized agent, paying the insurance company a set monthly, quarterly, or annual premium. In return, the insurance company agrees to pay out a contracted amount of money after you decease. The proceeds from your life insurance policies go to the beneficiaries you designate, typically in a single lump sum payment. If your do not designate beneficiaries for your policy, then the insurance company makes the lump sum payment to your estate.

There are two types of life insurance policies: Protection policies: these are commonly called term life insurance. These policies are temporary and provide coverage for a specific number of years for a specific premium.

Term life does not build up cash value. You are just buying protection in the event of your death, and nothing else.

Investment policies: these are commonly called permanent life insurance. The objective with permanent life insurance policies is to grow capital with the payment of either regular or single premiums. Permanent life insurance is also known as whole life insurance. This type of life insurance provides life time coverage as long as the policy premiums are paid. The premiums are fixed, and unlike term insurance, there is guaranteed cash value. The insured can access this cash for emergencies, retirement or other expenses.

In addition to whole life insurance, other permanent policies include universal life insurance, which offers flexibility in that the insured can change the payment schedule or coverage amount; variable universal life insurance, which allows the potential for earning market returns; and single payment whole life insurance, where the insured buys the policy with one lump sum payment.

The type of life insurance policy you need will depend on why you are purchasing the insurance and the goals you want the insurance to accomplish. Most people find that a simple term life insurance policy suits their needs, while others want to make sure their bills are paid and their heirs receive a settlement after their deaths. You can discuss your needs with a qualified life insurance provider in order to determine what policy is best for you.

Life insurance usually covers death, dismemberment, accidental death and serious illness, depending on the type of policy purchased. Proof is required in all cases before payment will be made on any life insurance policy, regardless of the policy type. To purchase life insurance, you will need to get a quote from a qualified insurance provider, give an accurate picture of your medical history and receive a physical examination from your doctor. Once you pass your physical exam and your medical history is approved, a premium is required. After the premium is paid, then your life insurance policy is activated. A qualified insurance provider can also answer any specific questions you may have, as well as help design and tailor a life insurance program to help meet the needs of you and your family. - 23211

About the Author:

Tom Martens is the content syndication coordinator at Lifeinsurance-Southafrica.co.za South Arica?s leading Life Insurance and Life Cover portal.

Motorcycle Insurance - A High Risk For Insurance Companies

By Susan Reynolds

Many companies fear to lose a significant amount of money to the insurance policies that they have offered to their customers. They fear about the frequent accidents of the bikes and having to pay the claimed amount. As a result of this fear, most companies make the customers pay a high amount of premiums. This article discusses the reasons for this fear and how you could manage to find a low premium policy for your bike.

Many of your details will be noted by the company, and based on the details your premium is decided. Your age, occupation, bike model etc are the details noted by these companies. Sadly, after all the calculations and assessments are done, the decided premium to be paid is still too high.

It is not a secret that bikes meet up with too many accidents in a year. The accidents are far too many as compared to any other kind of vehicles. There are quite a few reasons to these frequent accidents. To start with, majority of bikers are the younger lot of people. With a young age, they do not carry plenty of riding experience. Even though they are qualified riders and possess a valid license, the inexperience shows in their riding, leading to accidents at times. With more accidents, the company can end up paying too much of money for the damages.

Most youngsters are known to ride at pretty high speeds. They just love giving the accelerator a rip. As obvious, high speeds lead to more accidents. Insurance companies too understand this dynamic and do not trust the young bikers to ride safe.

Most people find it easy to over take with bikes as against with any other vehicle. Bikers therefore tend to over take any vehicle that comes their way. Especially on narrow roads, the bikes are unstoppable. With so much overtaking, accidents are always on the card.

Once the accident has occurred, bikes get damaged a big time. A four wheeler has a front guard and a strong bumper to protect itself against heavy damages. The same is not the case with bikes that hardly have any protection on the front or on the rear. A pair of leg guards is only good enough to protect the biker's legs, and not the bike. Bikes therefore end up damaging some of their expensive parts upon an accident.

Understandably, the insurance companies stock the money for these frequently occurring accidents. You are accordingly made to pay high premiums every month. You, as a customer must look for the best policy possible. The only way you can find a good policy is by collecting information. You will need to research the market and compare prices. The good news is that you need not manually do the research. Rather you can make use of the internet and visit some of the very informative websites that provide optimum information about the insurance policies. They have ready made comparisons on display and you just need to make up your mind for one policy. You need to be careful with the policy you choose. In other words, you must not choose a policy that only has a low monthly premium but does not cover your bike well or the company is not reliable. Be smart in evaluating the worth of the policy. - 23211

About the Author:

Susan Reynolds is the content coordinator for a leading South African Insurance Provider who specialises in Motorcycle Insurance Options.

Obtaining Household Contents Insurance As A Stand Alone Policy

By Susan Reynolds

Losing all your belongings in a fire or to theft would be distressed enough, but having to change them all at once, could confirm luxurious. Could you provide to do it? It is very cool to underestimate the monetary rate of your possessions. The total cost can soar surprisingly fast when you take time to judge the assess of each piece. Purchasing inside assurance could show to be the answer for this dilemma.

A Contents Insurance policy can provide coverage on a new-for-old basis. With this policy, you can replace not only a large item like a television, but also replace everyday household necessities. At an affordable rate, everything can be covered. Can you really put a price on peace of mind? What would it be like not having a couch in your living room to sit down after a long day? What would it be like not having warm carpet under your feet in the morning?

What is something disastrous happened to your home and property which leaves your possessions useless? It doesn't have to be the Mississippi flooding your neighborhood; it could be a burst water main. All of your electrical appliances would be ruined once they get wet. The accidental damage of items like these could be covered in your policy. A policy could assist with the cost of replacement of you use everyday. You could return to life-as-normal more quickly with this kind of policy!

Many indemnity providers recommend a 24 hours crisis help line in the occasion of a receive. They have a slope of agreed tradespersons who can attend. Think of the importance of having your curls and keys replaced briefly by a trusted professional after theft.

Calculating how much cover you require is important, as it is easy to misjudge the total value. Once you have a figure in mind, you then need to search for the suitable cover at a price that suits you. Including Extra Accidental Damage cover to your Contents Insurance policy may prove desirable should you enjoy DIY disasters are not covered by the basic policy. If you wish to insure your personal effects away from the home, perhaps when you are on holiday, the inclusion of a Personal Possessions cover would give large protection. Using a specialist broker could help you find the right policy for you.

Besides the sum to be sure, other factors sway the charge of the premium. The subject in which you live might be considered high hazard. If you are unable to move to a sink hazard topic, there are a few things that you could do to help lesser the estimate of the premiums. Joining a Neighborhood watchdog plot and installing a recognized guarantee approach are effective. Simply correct good condition mane on all doors and windows, good identity marking your belongings.

There are also discounts that can affect the price of your Contents Insurance. Discounts are available if buy your policy online and further discounts are achievable should you purchase buildings insurance with the same insurer. If you have not made a claim against your insurance in the last three years, this will also help towards lower premiums. A specialist broker could assist negotiating discounts and find the best value contents Insurance policy for you. - 23211

About the Author:

Susan Reynolds is the webmaster for a leading South African Insurance Portal that provides consumers with the best Household Insurance Options.

Life Insurance - Which Type of Policy is Right For You?

By Stephen Daniels

Most people like to sidestep the task of shopping for life insurance. The reasons include death being to scary to think about, difficulty understanding it, not feeling a need for it, not qualifying or not being able to work it into a budget.

The truth is that there are times in your life when you probably do not need a policy, but these times are few, relative to the times when it is important for the financial health of your loved ones.

The seemingly limitless choices available can make your head spin. They are not easily understandable by the average person. Don't worry: All the the different policies can be decoded. Your life insurance agency can be a great resource. Following is basic information you need to know:

Straight life insurance is also called whole life or permanent. Your premiums are set for life when you purchase the policy as is the death benefit. In general, the younger and healthier you are when you purchase the policy, the lower your premiums for the rest of your life.

As long as your premium is paid, your beneficiary will receive the proceeds when you pass away. Straight life policies accumulate cash values that you can borrow or withdraw if needed. Remember that borrowing will reduce the amount that will be paid to your heirs, if it is not paid back.

Annuities are a form of life insurance that not only has a death benefit, but can also create a stream of income for you while you are still living. There are several types of annuities, but there are two basic types; fixed and variable.

A fixed annuity pays a fixed yield and has pre-determined payout to you while still alive depending on the date that you annuitize the policy and how many years the insurance company estimates you will live to collect those payments. You also can elect to pay a fixed payment monthly in exchange for a fixed monthly benefit for a specified period of time.

A variable annuity performs in a similar way, but can potentially pay much better benefits because your premiums are invested in the stock market. You have the potential to earn or lose money just like a regular investment. Your actual monthly payout, should you decide to annuitize depends on your success with your investments. There are also other choices available with annuities, but you should talk with an agent for more explanation and discussion about whether or not this is a good route for you.

Perhaps the most attractive kind is term life coverage which is the easiest to understand and is the most economical. Term life is for a specific term (example 10 years), and will pay to your heirs only if you die during the term of the coverage.

Young families can purchase a high amount of coverage relatively inexpensively to ensure that young children will be cared for in the case of the death of one of the partners. Term life insurance does not build cash value.

Burial insurance is self explanatory. It is meant to pay funeral expenses.

Mortgage life is like term life but usually more expensive. The purpose is to pay off the mortgage in case of the death of one of the borrowers on the mortgage. The value declines at about the same rate as the mortgage balance declines. Inexpensive term coverage, which retains a consistent life amount through the term of the policy, is a better value.

For more specific information about what type of protection would be best for your situation, it is always recommended that you do your own research, and of course, check with an agent who can answer your questions. - 23211

About the Author:

In the San Francisco Bay area, call on Stoneridge Financial for advice and assistance with life insurance and other insurance related investment products. Powered by SEO 2.0 Services

Three Methods To Obtain Super Cheap Car Insurance

By Jim Hall

It is very essential to obtain cheap car insurance because of current financial crisis and sky rocketing petrol prices. It absolutely makes wisdom to look for other ways to save on automobile related costs such as insurance. One might feel that the car insurance company has all the authority and power to decide rate and premium. One can manage a lot if not all factors that decide insurance costs, from which company and what type of insurance policy you choose.

However there are three simple ways through which the car insurance can be done. They are as follows:

1. Judgment of several bad quotes
It is a wide known fact that insurance premiums and excesses differ considerably from one company to other company. It thus pays or somewhat saves to do a little policy investigation. You will have to keep one thing in your mind that which is the cheapest insurance policy and how much coverage you will have to pay. One should always go for a package of best coverage and a vast rate. You should leave the insurance policy if you do not find it to be accurate. You will certainly find some of to be good and some of them to be bad. You will have to mention the marital status as well as the child and the driver addiction as well and not to forget the new car purchasing. The cheap car insurance will certainly have a great effect because of all of the above facts.

2. Make you're driving record better
Having the best driving record is certainly a good thing to have and you will be benefited from it. The vital aspect that the insurance companies look is reducing risk as much as they probably can, and drivers with spotless driving record are usually considered to be a significantly lower risk.

3. Something to consider while buying a car
The car models as well as the insurance have a great effect on the car insurance. If a particular customer wishes to purchase a new car, it will make common sense to do essential study or research on the insurance expense connected with the new car you are willing to purchase.

The car model certainly will have a very good effect on the car insurance scheme and you will certainly be able to get the best car insurance policy if you have the good car with you.

Once you are finished with your list of possible cars to only a small number of candidates, you should get in touch with your present insurer and get cheap quotes for coverage on your list of cars. - 23211

About the Author:

If you want to get Super Cheap Car Insurance then visit us and get more information about Inexpensive Auto Insurance schemes out here.