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"I am 35 years old. My friends and relatives keep telling me to invest in a life insurance policy. What is life insurance anyway and why do I need one?"
A life insurance policy is a legal agreement drawn between an insurance policyholder and an insurance provider. Under this contract, the policyholder is required pay the insurer a specified sum at regular interval and in return the insurer promises to pay a certain sum to his designated beneficiary in case the insured event takes place while the policy is still in force.
A policy is extremely useful especially if you are the sole earner of your family. If you unfortunately die, your family can maintain their financial security because of the amount of money that they will receive from the coverage that you have purchased. The primary goal of a life insurance policy is the financial protection of the family by replacing the income lost because of the death of the policy holder.
"I am still a bachelor and do not have a family of my own. My parents are still working and my siblings have their own families. Do I still need to have a policy?"
If you do not have a family, you indeed can do without the life insurance coverage for the time being. However, remember that policy prices increase with age and so if you plan to marry later on and then buy the policy, you may find the rates a little too unviable. It is always better to buy the policy while you are still young and healthy.
No, if you do not have a family or anybody else depended on your income, you do not need the coverage right now; but the question is; are you planning to remain single all your life? If yes, you can indeed do without such policies; but if you plan to have a family later in life, you should get one now. That is because, policy prices increases with age and so it is always better to buy them early in life, while you are still young and healthy.
"Are all policies same? Or is there in any variation in them?"
As I have already said, there are different types of policies. However, all these policies can easily be accommodated under two distinct categories; the temporary and permanent policies. The term insurance we have already talked about falls under the first. It is a pure life insurance policy valid for stipulated years. Although it is very affordably priced, its main disadvantage is that the policy does not entertain any claim unless the insured dies within that stipulated period. If the insured outlives the term; he either has to live uninsured or buy new coverage at higher rate.
Permanent policies include the universal life insurance policy. This type of policy will insure you from the moment that you agreed on the policy and purchased and will remain in effect until you die. Depending on your needs, this type of policy can even earn you money through its investment option.
"How do I buy such policy?"
The first step is to receive quotes. Today you can receive life insurance quote on line. In such a case you just need visit an online broker and fill up a quote form. Quotes from different carriers will appear as soon as you hit the submit button. You are then required to choose and apply. The application process is of course rather long. You are required to answer a lot of questions about your age, healthy, body mass index, family background, medical history etc. On top of that you will also be required to appear for a paramedical test.
Indeed, for those who are unwilling to appear for these tests, there is the term life insurance no medical exam. Under these policies, you are required to answer some health related questions and the coverage is based on that. The carriers too check on you by running you through Medical Bank and other agency reports. Therefore, the coverage is not guaranteed. Although these policies cost a little more, many choose them for their instant and hassle free purchase procedure.
Whatever policy you buy, the premium will always depend on your age and health condition at the time of policy purchase. That is why even if you marry late, you should buy the policy as soon as possible.
A life insurance policy is a legal agreement drawn between an insurance policyholder and an insurance provider. Under this contract, the policyholder is required pay the insurer a specified sum at regular interval and in return the insurer promises to pay a certain sum to his designated beneficiary in case the insured event takes place while the policy is still in force.
A policy is extremely useful especially if you are the sole earner of your family. If you unfortunately die, your family can maintain their financial security because of the amount of money that they will receive from the coverage that you have purchased. The primary goal of a life insurance policy is the financial protection of the family by replacing the income lost because of the death of the policy holder.
"I am still a bachelor and do not have a family of my own. My parents are still working and my siblings have their own families. Do I still need to have a policy?"
If you do not have a family, you indeed can do without the life insurance coverage for the time being. However, remember that policy prices increase with age and so if you plan to marry later on and then buy the policy, you may find the rates a little too unviable. It is always better to buy the policy while you are still young and healthy.
No, if you do not have a family or anybody else depended on your income, you do not need the coverage right now; but the question is; are you planning to remain single all your life? If yes, you can indeed do without such policies; but if you plan to have a family later in life, you should get one now. That is because, policy prices increases with age and so it is always better to buy them early in life, while you are still young and healthy.
"Are all policies same? Or is there in any variation in them?"
As I have already said, there are different types of policies. However, all these policies can easily be accommodated under two distinct categories; the temporary and permanent policies. The term insurance we have already talked about falls under the first. It is a pure life insurance policy valid for stipulated years. Although it is very affordably priced, its main disadvantage is that the policy does not entertain any claim unless the insured dies within that stipulated period. If the insured outlives the term; he either has to live uninsured or buy new coverage at higher rate.
Permanent policies include the universal life insurance policy. This type of policy will insure you from the moment that you agreed on the policy and purchased and will remain in effect until you die. Depending on your needs, this type of policy can even earn you money through its investment option.
"How do I buy such policy?"
The first step is to receive quotes. Today you can receive life insurance quote on line. In such a case you just need visit an online broker and fill up a quote form. Quotes from different carriers will appear as soon as you hit the submit button. You are then required to choose and apply. The application process is of course rather long. You are required to answer a lot of questions about your age, healthy, body mass index, family background, medical history etc. On top of that you will also be required to appear for a paramedical test.
Indeed, for those who are unwilling to appear for these tests, there is the term life insurance no medical exam. Under these policies, you are required to answer some health related questions and the coverage is based on that. The carriers too check on you by running you through Medical Bank and other agency reports. Therefore, the coverage is not guaranteed. Although these policies cost a little more, many choose them for their instant and hassle free purchase procedure.
Whatever policy you buy, the premium will always depend on your age and health condition at the time of policy purchase. That is why even if you marry late, you should buy the policy as soon as possible.
About the Author:
Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on cheap life insurance rates and seguros de vida, visit his site today.
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