August 27, 2014

Is there any difference between adult and teen life insurance?

There are a number of differences between insurance policies for adults and those for teenagers. Younger people without families have difference insurance needs, and their lifestyles and habits are different on average from older people.

It is prudent for a teenager to buy life insurance since the premiums for the term of the insurance policy can be fixed at a much lower rate. This means that the insured person can benefit from much cheaper insurance. Insurance companies package insurance products for specific age groups to cater for the different risk profiles and needs of different categories of people in those age groups. Even if teenagers do not purchase age-group tailored insurance, there is an advantage to insuring earlier with more standard policies, which is that the premiums paid will be lower and can be locked in for the entire term.

That said, most teenagers do not have the earning power nor the ability to sustain a consistent income that many older adults have. This means that adult life insurance policies with expensive or even average premium costs can be prohibitive for teenagers. Closure of many term life insurance policies due to defaulting on payments or for other reasons can result in the loss of the premiums paid, as the majority of policies cannot be ‘cashed out’.

Although there are a few term life insurance policies marketed specifically to teens, most often a quote is generated for teenagers as it is for other adults. Insurance companies use a process called underwriting to determine the level of risk associated with the individual insurance buyer. This level of risk is based upon such things as national statistical averages for mortality and disease, statistics about rates of injury and accident, the age of the individual, their health, and other facts about their demographic and person.

All life insurance in Australia is now term life insurance. Term life insurance policies are available to provide cover in the event of lost income (called income protection), in the event of serious temporary debilitating injury or illness (trauma term life insurance), and to provide more permanent protection in the case of permanent and total disability due to disease or injury. Young people who have a good level of general fitness have different risk levels for things like chronic diseases and heart attack: generally speaking they are much lower than for older individuals. This means that a different combination of income protection, trauma and other life insurance sub-types will be suitable for teenagers than for older adults. Nevertheless, some thought should be given to the future and some notice taken of some rather morbid statistics in establishing even shorter term life insurance.

Initially, it may be advisable to focus on income protection and trauma insurance to cover for such things as sporting and industrial accidents. However, other contingencies should be considered as the individual moves into their 30s and 40s, when such things as chronic diseases are more prevalent.

Policies for shorter terms tend to be cheaper. This means that for teenagers in good health but with limited incomes and perhaps some income instability, a shorter term life insurance plan is probably a better option. When all of these factors are taken into account, it becomes clear that insurance policy costs are governed by health as much as by age. Age is taken to be an indicator of health status. However, provable good health has a two-fold effect: it diminishes the likelihood that one will ever need to use an insurance policy, and any policy that one does buy will be cheaper. Avoiding smoking, unhealthy foods, and lack of exercise come highly recommended for all ages.

4 Types of Life Insurance to Know

The theory of life insurance is a simple one, pay a small amount each month over a set term, and in the event of a crisis or tragedy, you family and beneficiaries are given a coverage to assist with the transition into living without you.

There are a myriad of insurance products available, and having an understanding of the basic insurances allows you to invest in the best options for your family. The four most common insurances sold as premiums are Term Assurance, Whole Life, insurance that protects against Accidents and Sickness, and an Income Protection insurance.

Term Assurance

As its name implies, Term assurance is a premium that is paid over a set term. The term rate is determined by the age of the insured, and the length of time that they are insured for. Premiums are paid to a leveled term or as decreasing term. In a leveled term assurance policy, the payment is the same throughout the lifetime of the insured, while a decreasing term has lower payments as the insured party ages, however the payout also decreases.

The catch to Term Assurance plans is that they only pay out on death. If a person survives for the duration of the term of assurance, they receive no payout, and no interest on their investment.

Whole Life Assurance

Whole Life, or whole of life assurance, provides a guaranteed payment at death, providing premiums are up to date. Premium rates are renewable, usually on a ten year term, so the premium is not fixed. Whole life assurance provides a method to profit in the long term investment through either a with profits assurance plan, a unit linked plan, and a universal assurance plan.

A with profits plan costs a bit extra to participate in but in the long term can lead to higher payouts. For a slightly higher premium, the assurance policy participates in investment activities and is given a yearly bonus to the payout amount. Over time this can lead to a significant increase in the payout at death to your beneficiaries.

A unit linked plan is a little more complicated. A unit of investment is purchased, and every month, the cost of the life insurance cover is deducted from the unit value of the investment. It’s a little complicated but it comes down to a unit linked plan being both a life insurance policy and an investment vehicle. Similar to a with profits plan, rates fluctuate and the policy is usually re-negotiated after 10 years.

Accident and Sickness

A less prevalent insurance product, Accident and Sickness has its place for people in the work force. Characteristics of this type of insurance product are yearly renewals, lump sum payments, or deferred payments over a set period of time, usually weekly in the case of sickness, and the right of refusal ability.

Right of refusal means that the plan can be examined by the insurer at any point that there has been a change of circumstance, and they can then increase premiums or even refuse to renew the policy. This type of insurance is good for supplementing an income that would be lost due to an accident, something workers in the construction trade should consider.

Income Protection

Similar to Accident and Sickness, Income Protection insurance provides a guarantee of a replacement income, should you exhaust sick benefits or are not able to return to work for a long period of time. The factors that insurers consider when putting this type of policy in place are things like age, gender, physical condition, and likelihood of becoming ill.

The total amount of coverage is not exhaustive, and usually supplements income up to 60% of the value of your weekly income, so by no means is it a long term protection. Its role is to provide a cushion and allow you to recoup and start again in the event of an illness.

Knowing the right product for your needs will make sure you choose the best insurance product at the bet rate possible.

With his background of a finance journalist Terry McBrearty has written many in-depth and factual overviews of the leading insurance companies like Legal & General . You can read some of his latest articles about life assurance on .

In tough financial times its hard to justify investing in non-essential insurance but it’s still worth it!

As the new decade has dawned, global economic unrest has left the UK, as well as much of the rest of the world, in dire straits. Rising unemployment and inflation, together with a faltering economy, mean that everyone, from the high street to the big banks, is starting to feel the pinch. It’s times like these when it can be tempting to cut corners, and try to save pennies by avoiding those investments that we might deem non-essential. But in some cases, whatever your financial situation, it can still pay to invest a little now, to avoid catastrophic troubles further down the line. This is especially true when it comes to non-essential insurances.

It’s easy to put such things to the back of your mind, especially when you’re young and healthy, and tell yourself ‘it won’t happen to me’ but it’s a sad truth that we never know what’s around the corner. With much of us saddled with significant debts, it’s important to make sure you and your family are provided for should the worst happen, and a little investment now could save you a lot of money in the long run.

The fact is, it’s those young, healthy individuals, just starting out in life, who could often benefit most from investing in non-essential insurances. Put together combined potential debts from university fees, mortgages and young families, and many people will never be less financially secure than in their early 20s. While this might tempt you to cut costs on non-essential insurances, it actually makes more sense to protect yourself, your family and your investments.

Ask yourself what would happen should you fall ill? As the primary worker in your family, the financial effect could lead to you defaulting on your mortgage, and worse still, should you die, you family losing their home. These future costs – both financial and emotional – are far greater than the premiums you’ll pay now, especially with some very reasonable life insurance quotes available. Young people especially can benefit from term life insurance packages which, with their specified cover periods, can enable you to cover yourself and your family until your kids leave the nest for example.

With the amazing free healthcare service provided by the NHS, health insurance might seem like and unnecessary luxury, and for the majority of us, it probably is, but it’s worth making sure you’re provided for should you fall seriously ill. Those of us who have hereditary illnesses in our families particularly can benefit from a little foresight in protecting ourselves and our families from their effects. Critical illness cover enables you to provide financial support to pay for long-term treatment and keep your family fed, clothed and under your roof during what could be a long recovery. Once again, neglecting to protect against something that you know could be around the corner could lead to huge costs in the long run when faced with the emotional and financial turmoil that long-term illness brings.

Likewise, home insurance too is an important way of protecting the investments that you’ve worked so hard to gain. Skimping on home insurance is all too easy, but say you’re boiler is to break in the middle of winter, leaving your family in the freezing cold? No insurance policy can mean immediate bills running into the thousands to replace boilers and cracked pipes. But investing in home insurance will protect your property against such unexpected events.

Furthermore, you might wish to ensure your property is protected for your loved ones after you die. While standard life insurance plans don’t necessarily ring-fence money for specific things, it is possible to take out mortgage life insurance for this very eventuality. Paid out directly to your mortgage lender on your death, the premiums for mortgage life insurance decrease as the mortgage is paid off during your life, and can be cheaper way of insuring your family still has a roof of their head when you’re no longer with them.

As you can see, the risk taken by avoiding these ‘non-essential’ insurances could be too big to comprehend, protect your family by making a little money today go a long way tomorrow.

Life insurance and critical illness – do I need both?

When you are looking at whole life quotes you may wish to consider whether you need to take out a separate policy for critical illness cover. There are a few options you may wish to weigh up.

  • A life insurance policy can be arranged for a set time. This is called term life insurance. For instance you may wish to arrange a policy to cover you for the term of your mortgage (eg 25 years). Should you die during those 25 years, then the policy will typically make a payment:
  • A whole of life insurance policy however will cover you for your whole life providing that premiums are kept up to date and the terms and conditions of the policy are met. There is a wide range of whole of life insurance policies with different clauses. You may wish to obtain several whole life insurance quotes UK wide when considering this type of policy;
  • Some whole of life insurance policies offer critical illness cover combined with the policy. This type policy will generally make a lump sum payment should you received a confirmed diagnosis during the period you are insured for. This will mean that you may not have need for separate critical illness cover. However, note that the policy will typically pay out only once;
  • Critical illness cover. A separate critical illness insurance policy may generally make a payment if you are diagnosed with a serious illness. Some policies will also pay for private health care or nursing. If you are concerned about paying for treatments, therapies and medications your may find it is more appropriate for your needs to arrange separate illness cover;
  • Specialist illness policies. If you have a family history of specific illnesses then you must declare this to the insurer;
  • Cost of premiums. The cost of insurance premiums may influence your policy decisions. Life insurance quotes uk wide can be easily compared online or through a broker. Alternatively you may wish to contact insurance providers direct, especially if you have any specific requirements. If you are looking at whole life quotes the overall premiums may be higher if you are combining critical illness cover, however this may also be cheaper than arranging two separate policies – though in most cases, the policy will pay out only once.

Whether you need separate life insurance and critical illness cover may be dependent on your circumstances. Obtaining a range of whole life quotes may help your decide what kind of policy is appropriate for you.

Some points relating to critical illness insurance UK

If you are considering the purchase of critical illness insurance UK, providers may have a policy that suits your needs.

Reviewing a few quotes may be the easiest way to find the right policy for you and at a price that you consider reasonable:

  • not all policies offer the same benefits or levels of cover and you’ll typically find that while there may be consensus on the major categories, like major organ failure, heart conditions, strokes, multiple sclerosis etc., different providers may have different views about what actually constitutes a critical illness and different policies;
  • serious illness cover, for example, is a separate type of policy which covers a wider range of illness than typical critical cover but where the lump sum payout may be tied to the severity of the illness;
  • you may find that there are certain conditions or illnesses that may be excluded from many policies;
  • these may include conditions relating to self inflicted injuries, drug abuse, participation in dangerous sporting activities, failure to follow medical advice and HIV/AIDS related conditions;
  • understandably, if you have a pre-existing medical condition, you will not be able to benefit from critical illness insurance covering that condition. You may still be eligible for cover for other illnesses;
  • if you are looking for cheap critical illness insurance, it may be worth bearing in mind that the price of your premium depends on many factors and what you consider cheap critical illness cover may not be cheap for someone else;
  • some of these relate to the type of policy – does it have a fixed or decreasing level payout, what is the duration of the cover etc:
  • there are also other factors that may influence whether or not you’ll find cheap critical illness insurance, like your age, sex, general health and diet and whether or not you are a smoker;
  • you may typically find that critical illness insurance UK premiums for smokers may be considerably higher than for non-smokers;
  • if you have a weight problem, as measured by your Body Mass index (BMI), then in common with smokers you may find that you are asked to pay more for your critical illness cover;
  • some providers may offer incentives for healthier customers by offering points as rewards for switching to a healthier lifestyle by stopping smoking or visiting a gym etc. Sufficient points may earn a premium review of your critical illness insurance UK cover.

Looking for discount life insurance quotes?

Looking for discount life insurance quotes, probably indicates two things about you:

  • you are a responsible individual that is looking to protect the interests of those close to you, in the event that you die;
  • you are aware that economy is important and that it may be possible to obtain some interesting deals on life insurance.

A word of warning

Searching for discount life insurance quotes is perfectly understandable but keep in mind that price may not be something that should be of primary importance.

The single most important thing about life insurance is that it needs to provide adequate cover that is appropriate for your life circumstances.

It is, therefore, advisable to concentrate initially on the cover provided and then to move onto cost considerations.

Some online organisations may be able to provide you with a number of discount life insurance quotes from different insurers. An example of such a service can be seen at

Protecting your loved ones

There are a number of different forms of life insurance and some may be seen to be rather more suitable for some situations than others.

Just as a brief example:

  • level term insurance – also sometimes called fixed term insurance, this is a form of cover that guarantees a flat rate payment in the event you die during the period (term) of the policy. It may be attractive in a number of situations, including where you have an interest only mortgage which will have a capital debt left to be cleared at the end of the mortgage period;
  • decreasing term insurance – a policy that will payout a smaller sum as each year of the term passes. It is a form of cover that may be suitable for a standard interest and capital repayment mortgage, where each year your debt on the mortgage reduces;
  • whole term life insurance – a form of policy that will payout a sum of money irrespective of your age at the time you die.

Each of these forms of cover may have its advantages and disadvantages, depending on your exact situation.

Economic solutions

What one person considers to be ‘cheap’ cover may not prove to be cheap for you if it does not provide appropriate protection for your situation.

There is no substitute for considering a number of quotations so that you can evaluate various costs against the various types of cover that may be provided.

It is true that, done individually, searching for multiple quotations may prove to be time-consuming.

That is one of the advantages of using a consolidation and comparison site of the type mentioned above.

Using such a service may mean that you will be able to obtain a number of discount life insurance quotes but all at the same inquiry point.

Uses Of Life Insurance

Insurance policies are important, as they safeguard you and your households from facing specific forms of financial issues. But, it can be a fact that a lot of folks merely can not afford an insurance policy, which is resulting from currently economic crisis, inflation and recession. With small or no saving at all, they are in no position to get an insurance policy.

However, it just isn’t correct to bag the idea of buying an insurance plan, particularly in the event you are considering insurance. The reason is that moving without life insurance will make your family go via an particularly challenging time if a thing occurs to you. But, what should an individual do in this scenario to get insured?

With term insurance, it is possible to get insured for a particular period of time, without having spending a fortune. But, prior to you proceed with this specific option, you really should invest some time to educate yourself in regards to the whole thing. Here are couple of functions of term life insurance which you need to have to know in advance.

One of probably the most powerful and simplest techniques to protect your family financially is by purchasing insurance. It may well be a hard and tedious procedure to opt for the best form of insurance policy.

The most essential feature is that these policies come with adjustable premiums. In fact, this distinct function makes it far more popular. But, you need to preserve in mind that this feature could be a fantastic one or a poor a single at the similar time. As premiums are adjustable, you’ll be able to expect them to go down, but they can go up at the identical time. There are lots of factors that an issuer takes into consideration just before producing some modifications in these premiums. For instance, a alter in morality experience, persistency, investment earnings, and expenses will inspire an issuer to make certain modifications to premiums.

You can determine which policy you desire to go for such as universal life, complete life and employer life and you have to enquire about them just before buying. The net is a single of the ideal areas exactly where you can obtain this information from. You can also get free of charge quotes on the web to compare premium and other costs connected using the policy as not all of them are similar for all of these.

Another feature, which is basically rather good, is about covering term low-priced life cover into other kinds of life insurance. It’s as a result of this distinct feature that you just can consider it an incredible way of acquiring inexpensive life insurance cover. This function constantly allows you to convert this term low-priced life cover into complete life insurance with out generating you go via lots of hassle. But, do make sure you know about the requirements and rules of your insurance provider in this regard. It is so mainly because a lot of businesses don’t permit this conversion after a particular age limit.

You may want to discover more research here on What Is Whole Life Insurance.

Lifestyle Insurance – Search For Safety Leads

Life Insurance Types. Discovering the best insurance coverage for existence protection results in increase productivity and profits can generally be challenging. Not just would you have to make investments your valuable time finding and searching for methods to get to prospective new clientele, but this time invested performing life insurance coverage search could possibly be expended on boosting your conversions and closing much extra revenue.

Just just how much could your organization be successful in case you have a continuing flow of the most effective prospects coming into your agency when you will need them? Would a continuous stream of requests enhance your productivity in case you realize that these inquiries had been genuinely severe within your provide?

When you know the answer to these questions you’ll uncover extra time every day to concentrate on alternative pursuits that are extra likely to result in elevated revenue figures. Inside the event that you might be contemplating buying leads, make sure that you might be provided access to many filters in order to ensure that you are getting just the excellent leads.

Cheapest Life Insurance. Inside the finish, there is no level in operating with clients who are not trying to find the kind of services or goods you offer. It’ll make sense to target only folks who will probably be severe about your proposal right away.

Several recommendations for approaches that you can filter leads throughout life insurance search must include:

The place from the inquirer, this signifies you ought to search and filter to obtain the very best insurance leads in order to suit your requirements from within a specific radius or by a chosen zip code also as from a preferred listing of areas. Wanted lead type, as an instance, you’ll be able to look for basic insurance coverage prospects or narrow your analysis to return just the very best leads related in your corporation. Establish certain spending levels on your accounts to ensure that you simply never surpass your designated restrict.

Temporarily quit your account at any time or perhaps begin off again when you require additional company. In addition to the factors above, you have to be supplied with the probability to on-sell your insurance coverage prospects to some other downstream providers. For instance, an agent who will get the data can offer disqualified prospects to a common agent, while a debt consolidation provider may perhaps offer bankruptcy prospects for people who are not eligible for a specific strategy.

Life Insurance Broker. Automobile merchants can promote a lead to automobile insurance firms. This could possibly allow you to recover the expense from the lead too as supply a brand new level of earnings from present organization methods. When you look for the most effective life insurance prospects, you have the capability to fee the vendor highly as supplying details which is genuine and contactable or fee them less positively in the event the particulars had been not adequate.

A variety of the skilled lead vendors who should be supplying facts for you include on the web marketing specialists with numerous opt-in information, too as experienced affiliates who’re taught to search for truly unique kinds of leads which includes investment prospects or large net value people

Life Insurance, What Should You Know About It?

An individual chooses to buy life insurance for the purpose of protecting the future of their loved ones. If an individual should die then funds are paid out to a designated payee or payees. The use to which these funds are put can include debt payment, tuition expense, or many other purposes. What is available in the marketplace can provide for almost any need as there are six, or more, different kinds to pick and choose from.

Sadly though there are some who feel confusion about each of the life insurance policies that are available because of some of the labels that they are saddled with. For instance whole, variable, term, and endowment. The reason that all these choices are available is the need for something that will benefit the needs of those that will receive the funds being paid out.

Term is what is considered by many life insurance brokers to be a basic policy. One of its features is it must be renewed once each year and thus can be said to be of a temporary nature. Its one major drawback is that premiums are rather high considering the limited death benefit received by any recipient named in the policy.

An endowment policy on the other hand has a a feature that can be considered a bit interesting. It has a clause in it that allows for the one that holds the policy to be paid an income or a one time sum in the event that he or she lives to be a certain age. If that condition is not met, the principle person dies, then the one that will be paid is the beneficiary. As a result of these terms the payments on this type of policy can be a bit more expensive.

If an individual does not want the hassle of renewing every year there is a choice that will allow coverage for an entire lifetime as long as the required premiums are met. In the beginning it is a bit more expensive but will in the end cost less than some of the other choices that are available in the market. It is called whole life insurance.

One variation of whole life is what is called variable life. Its fluctuations are caused by performance during the investment stage in the period of time that the policy is active. By some standards it is considered a contract in securities and is thus required to be sold with an included prospectus. Its death benefit is more often than not guaranteed at a minimum amount but seldom is its cash value.

When one feels concern about the future of their family life insurance is one way people use to give them some measure of security. If the worst should happen then they know that for at least a few years in the future certain expenses, such as those for living, will be met.

Why You Need Life Insurance

Life insurance is something that many Australians are either reluctant or unwilling to consider. Unfortunately, many of us have preconceived beliefs that are simply untrue. When considering the benefits of having this type of insurance, you must consider what would happen if you were not properly insured. Families can be placed under extreme distress when a loved one passes on, and this can be dramatically worse if they don’t have a financial safety net.

Simply having some form of life insurance may not be enough. Many citizens assume that having a little bit of insurance will be enough to protect their family. It is imperative that you carefully review your situation and determine if the policy you have will actually allow for a comfortable life in case something were to happen. If you were to pass away, how would the people who depend on you be able to survive? Answering that question will allow you to determine the adequate level of life insurance you will require.

Common misconceptions have created a situation where many Australians have completely overlooked this important service. One of these is the belief that the government will take care of your family. That belief is simply wrong. While the Government does have many services to help people with common expenses, these services are very basic and will likely afford your family a lower standard of living than you provide. Another myth is that insurance quote providers will find a reason to deny a claim. Fortunately, the contract you sign must be upheld by both sides. Accidental and premature deaths are generally covered and must be paid for.

Cost shouldn’t be too much of a factor either. In comparison with common expenses most people already make, life insurance policies actually seem rather inexpensive. For the price of eating dinner at a restaurant, you could probably pay for a months insurance premium. The fact is, that this is an affordable product that is within just about everybody’s reach. Costs for a healthy adult are low enough that most people won’t need to change their budget to afford a life insurance policy.

This type of coverage should be seen as a necessity, not a luxury. Australians can’t rely on the Federal Government or other groups to take care of their family if they pass on. For your family to continue the same quality of life, you must have life insurance.