Monday, August 29, 2011
How Cheap Life Insurance Effective for A Low Cost
Life insurance is a straightforward way of ensuring that loved ones or relatives are not left high and dry should you die unexpectedly. This is hardly worth dwelling on, but it can be important to put something in place if someone is concerned about the future. A straightforward policy can ensure a company pays out a lump sum in one go to the named beneficiary, meaning they will get a straightforward cash payout which can typically be used just how the beneficiary wants - they may decide to use some for a funeral and some for financial support generally. This might sound expensive but there are many cheap life insurance policies, and people who are in a certain set of circumstances, ie of a certain age and in good health, may be able to get a very cost effective plan.
A premium might be particularly manageable on a basic deal, often through something called term life assurance. This is a deal which covers the policyholder for a set amount of time. If the policy holder dies within this policy period then the payout is guaranteed, but beyond the specified dates on the policy the insurance will not pay out. So someone might take out a 10 year deal, meaning if they die within that period then their spouse or other named person would get the lump sum payout, but if they died 11 years after this policy was bought, then the cover would not pay out. This is different to whole life assurance, which pays out whenever someone dies, whether it is in 20 years or two months, ie right to the end of their life they are covered, but this may be more expensive.
The cost of life insurance is often dictated by someone's personal circumstances. For example, somebody may be able to get cheaper life insurance if in their in their fifties and boasting a clean bill of previous health. Somebody who is in their eighties and suffers from a number of ongoing conditions may find a policy is more expensive. Everyone is different and almost every insurance company has a slightly different way of looking at policy applicants.
People may also want to combine some kind of critical illness cover into their life insurance deal. This means they would get a payout if they are diagnosed with a serious condition during the life of the policy. This is often taken out by people concerned about suffering from cancer in later life or another condition. A payout can be used to help maintain the family and to ensure any dependants are also looked after during the period of ill health. It may be able to get cheaper life insurance which combines critical illness cover as well, meaning both illness and death are effectively covered by one deal.
How cheap life insurance gets depends on the individual, as there will be a point where an insurer will not provide a price any lower because of their age or personal circumstances. But the basic policy need not cost the earth, and can at least provide peace of mind over the life of the policy if it is a term life assurance deal.
About the Author
by David Thomson
A premium might be particularly manageable on a basic deal, often through something called term life assurance. This is a deal which covers the policyholder for a set amount of time. If the policy holder dies within this policy period then the payout is guaranteed, but beyond the specified dates on the policy the insurance will not pay out. So someone might take out a 10 year deal, meaning if they die within that period then their spouse or other named person would get the lump sum payout, but if they died 11 years after this policy was bought, then the cover would not pay out. This is different to whole life assurance, which pays out whenever someone dies, whether it is in 20 years or two months, ie right to the end of their life they are covered, but this may be more expensive.
The cost of life insurance is often dictated by someone's personal circumstances. For example, somebody may be able to get cheaper life insurance if in their in their fifties and boasting a clean bill of previous health. Somebody who is in their eighties and suffers from a number of ongoing conditions may find a policy is more expensive. Everyone is different and almost every insurance company has a slightly different way of looking at policy applicants.
People may also want to combine some kind of critical illness cover into their life insurance deal. This means they would get a payout if they are diagnosed with a serious condition during the life of the policy. This is often taken out by people concerned about suffering from cancer in later life or another condition. A payout can be used to help maintain the family and to ensure any dependants are also looked after during the period of ill health. It may be able to get cheaper life insurance which combines critical illness cover as well, meaning both illness and death are effectively covered by one deal.
How cheap life insurance gets depends on the individual, as there will be a point where an insurer will not provide a price any lower because of their age or personal circumstances. But the basic policy need not cost the earth, and can at least provide peace of mind over the life of the policy if it is a term life assurance deal.
About the Author
by David Thomson
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