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Most Popular Types of Life Insurance
Life insurance policies help financially protect your family from unexpected calamities that can befall you. You can choose from different types of policies to meet your financial obligations and goals. Durations, benefits and structure of each policy are different; hence care and caution must be exercised while selecting the most suitable life insurance policy.
Understand Life Insurance
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What are the Most Popular Types of Life Insurance Policies?
Individual circumstances determine the type, durations and benefits from each policy. Circumstances to be considered include the value and structure of payouts, the desired duration of life cover, the payable value of premium as well as financial obligations and goals to be met by the benefits of the policy. Some of the popular life insurance policies include Term Insurance, Whole –of-life insurance and Endowment policies.
Term Insurance
This type of life insurance protects the insured person for a fixed time period. If the insured person dies during this period, the insurance company will pay the beneficiaries either a monthly income or a lump sum. If the insured person continues to enjoy good health during the period the policy is in force, then the policy will lapse without receiving any payouts.
Whole-of- life Insurance
This type of life insurance protects the insured person for his or her entire life as long as the premiums are paid on due dates and the policy is in force. In the event of death at any age, the beneficiaries are eligible for the death benefits and benefits are usually paid out as a lump sum.
Endowment policy
Endowment policies are usually investment schemes clubbed with life insurance. These policies are either linked to equity markets (ULIPs) or with profits where bonuses, once added are assured at maturity.
How to Choose the Right Policy?
Steps to choose the right policy include:
- Determine the cover required based on circumstances
- Decide the duration of cover as well as the manner and structure of payout
- Compare the various policies being offered that match your criteria
- Compare with reviews from your peer group
- Select the policy
Main Benefits of purchasing a Life Insurance Policy
Purchasing a life insurance is particularly beneficial for those with dependents who would need financial support even after their death. The payout either as a lump sum or as a monthly payment helps to meet the financial obligations of the beneficiaries faced with the trauma of the death of a loved one.
Main Draw-Backs of purchasing a Life Insurance Policy
If alternative options like savings or investment accounts are in place, then purchasing a Life Insurance Policy is redundant. A person who does not have any dependents or major financial obligations (like repayment of mortgage and so on) would be wasting resources by investing in a life insurance policy.
4 Life Insurance Companies to Consider
We live in a world full of risk. Throughout our day to day existence we face many kinds of risks and the risk of losing one’s life is the most prevailing. If anything happens to you the pain of losing you will likely be too hard on your loved ones, the last thing you would want for them is to worry about their future too. By taking out a life insurance, you can make sure that you loved ones are protected and well off even if you are not there.
There are many criterions upon which an insurance company can be called successful such as premium collections, market capitalisation, revenue, profit, assets and much more. People buy life insurance to achieve peace of mind that even if they are gone their loved ones will have something to fall back on. So it is best to buy insurance from somebody who will surely be there as time passes and doesn’t go bankrupt. How much revenue an insurance provider is making is a good indication of the company’s stability. In this article, we have presented 4 companies that have considerable revenues and thus should be considered before buying insurance.
Axa
AXA is one of leading insurance provider in the world. AXA has a customer base of over 102 million people and an employee base of about 157,000 people. AXA was found in 1817 when several insurance companies merged. The headquarter of AXA is in Paris and it has a presence around the world including Africa, North America, Central America, South America, Asia-Pacific, Europe and the Middle East. Its main businesses are property and casual insurance, life insurance, savings and asset management. AXA had a revenue of €91 billion in the year 2014.
Zurich Insurance Group
Zurich Insurance Group is also one of the largest insurance providers in the world. Headquartered in Switzerland Zurich Insurance Group was found in 1872. Zurich Insurance Group along with its subsidiaries operate in more than 170 countries around the world and has a workforce of over 55,000 employees. The main businesses of Zurich Insurance Group include general insurance, global life, and farmers insurance. Zurich Insurance Group had a revenue of $72 billion in the year 2014.
Prudential plc
Prudential plc caters to a large customer base of 23 million customer across the world including UK, US, and Asia. Prudential plc was found in 1848 in the United Kingdom. Prudential UK, Jackson National Life Insurance Company and M and G Investments are the core businesses of Prudential plc. Prudential plc posted a revenue of £ 32 billion in the year 2014.
Munich Re Group
Munich re group is one of the largest insurance providers in the world with its focus molly on Europe and Asia. Munich Re Group was founded in 1880 and now is operating in more than 30 countries worldwide. The insurance giants posted a revenue of €51 billion in 2014.
All of these business conglomerates provide insurance services in different countries under different names. If you find any of these companies as the mother company you can rest assured while buying insurance from them. Best of luck getting your well-deserved peace of mind.
Why Term Life Cover is the Most Popular Today
Human life is fragile and can easily be lost. Most of the people in their youth don’t worry about life and as a result put off looking for life insurance. Most of the youth think that they can’t afford a life insurance policy think it is not necessary because they are in good health. Accidents can happen any time and without proper precaution your family can end up in financial trouble.
Term life insurance policy is the answer to all the excuses you make to not get insurance. Term insurance is designed with a simple concept in mind and that is to replace lost income if something bad happens to insurance holder. Whole life insurance plans have very high premium rates which most of the people can’t afford. Term life insurance policy gives you the light of hope here. The cover provided by a term cover policy is for a fixed period of time which varies from 10 to 30 years. This allows the monthly premium payments to be much lower than other life insurance policies such as whole life coverage plans. The premium payment rates become even lower if you are in good health.
Another reason that term life insurance policies are so popular is because this policies are much less complicated and very easy to understand. Term life insurance policies being simpler it is very easy to compare the different offers available without ever needing any advice.
Term life cover policies are very straightforward and focused in terms of policy details. It is simple life insurance and nothing more. This allows you more freedom and flexibility in shopping around and choosing the best fit for you. Term life covers are usually custom designed to match your needs. The quotes are made by examining your health condition, the length of your term and the amount of coverage you want. So your policy can be tweaked to create a policy that meets your demands.
Term life insurance policies are the best and lowest cost way to provide a high benefit payout to beneficiaries. You do not have to worry about the expenditure as these policies have the same level premium rate for the duration of the policy. One of the best advantages of a term insurance cover is that the lump sum that is paid out is completely tax free.
How to Buy Life Insurance Online
Digital channels have changed shopping preferences substantially. The same holds true when buying a life insurance policy. Clients prefer buying a policy online even though they prefer receiving financial advice face to face. Most purchases are through company websites, although many clients also make purchases through comparison websites.
How to Buy Life Insurance Online
The convenience of comparing products and the speed of transactions are a great advantage that attracts potential clients, when buying a life cover online. A few simple and easy to follow steps can help you complete your online purchase of a life cover.
- List out your financial goals and obligations for the next 10 years
- Use an online life insurance calculator to compute the required life cover,
- Compute the value of premium to be paid using an online life insurance calculator.
- Visit a comparison site and compare the various policies that fulfill the required criteria of life cover and premium.
- Compare the reviews of the various products. Be sure to restrict your comparison to your peers who share similar circumstances and financial goals.
- Select the most suitable policy.
- Give a call to the company and discuss matters with a financial advisor, or make plans to talk face to face. Confirm the premium payable, life cover and duration of the policy.
- Check out online financial advisors who might be offering the same product at a lower cost.
- Complete the purchase online and receive a confirmation.
Although the purchase is complete, do save a copy of your online transaction. Ensure that you receive the written document for your reference.
Cancelling a Life Insurance policy bought Online
Compare the written document with your online transaction. Take time to go through the entire document in detail and ensure that all relevant clauses are in place during the free-look period. Call up the customer care desk or a financial advisor to clarify your doubts if any. If not satisfied with the product, fill out the cancellation form and submit it at the local office during the free look period.
Main Benefits of Buying Life Insurance Online
The cost of a life insurance policy bought online is much lower than buying from an agent. The difference in cost is a substantial saving that can be utilised elsewhere. Purchasing through digital channels is also highly convenient and immediate making online purchases of life insurance the most preferred option.
Main Draw-Backs of Buying Life Insurance Online
Though convenient, buying online does away with personal interaction. Clients prefer a face to face interaction when making important financial decisions This impersonal aspect is the major drawback of an online purchase and acts as a major deterrent to persons availing the benefits of buying life insurance online.
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