Friday, July 31, 2009

Nippon Life’s Hedge Funds Gain By 10%

Nippon Life’s Hedge Funds Gain By 10%
Nippon Life is Japan’s biggest life insurer company. This company may post a 10% return on hedge fund due to market improvement. Nippon Life has 44 trillion yen assets and about 100 billion yen in hedge funds which is likely to improve this fiscal year in short and long term macro global funds.

This hedge funds are basically are basically private pools of money or say capital whose managers participate in profits from the speculation of whether the price of assets will rise or fall. This type of funds gained about 11% this year.

Last year Nippon Life had beared the loss of upto 15% compared to this year gain of 10%. Nippon Life on seeing the current market phenomena would keep its investments in hedge funds compared to its rivals who plan to decrease the allocation and like to achieve stable returns.

To make the hedge funds attractive investment option the insurer diverted the funds focusing Asia allocations. Focusing on Asia funds reduced the credit hedge funds and increased up the cash portion with the break down on Lehman Brothers which worsen the global situation.

The chief executives of Nippon said that even in times of recession they never stopped their exposure to the industry. In long run their aim is to realize the importance of diversifying the portfolio which would not change at any cost. This company invests in hedge funds through its asset management unit

Seeing the hedge fund managers are outperforming global benchmarks after suffering their worst year record. The Japan long short equities index has been gained up 12 percent in six months while the MSCI rose to 4.8 percent in this period.

Thursday, July 30, 2009

Group Life Insurance the Best Option in Recession

 Group Life Insurance the Best Option in Recession
If you are working in a company the employer knows that keeping the morale of employee is crucial to the prosperity of business and group life insurance policy is just the way one can help motivate employees. Unhappy employees don’t perform well and may prove disastrous to your site spreading negative emotions with other employees.

This group life insurance policy works following ways. If the policy owner possesses the actual life insurance policy then the employees covered under them will typically receive a certificate which acts as a proof of insurance, but never contain what is called as master contract. With compared to other life insurance policies, group life insurance allows one to choose a beneficiary which should be used only in unfortunate circumstances.

Along with that the employer and policyholder have the facility for saving money on replacing departed employees, giving deductibles on federal income tax return, with an attractive incentive to lure potential employees. Group life insurance would benefit the employees by providing them with affordable life insurance which allows one to choose from their own benefit which would increase up in their morale.

Wednesday, July 29, 2009

AIG Sells Insurance Unit for $679.5 Million

AIG Sells Insurance Unit for $679.5 Million
AIG one of the largest group in the world sold its business at around $379.5 million. This company sold a majority of finance business held by them to WinTrust Financial Corporation.

WinTrust Chief Executive Officer is taking AIG knowing that the company had been offered a bail of about $182.5 billion to prop out the losses tied to home loans. This deal is a step in fulfilling expansion to life insurance finance business.

WinTrust financial corporation has most of the Credit employers involved in financing the life insurance premiums and leased office spaces in Jersey City, so that one can continue to service the portfolio.

Tuesday, July 28, 2009

Things to Know About Life Insurance Cover

Things to Know About Life Insurance CoverTerm life insurance cover is one of the cheapest type of insurance coverage available and least complicated. Coverage for such a type of insurance is for a fixed term or a period of time which is usually between 1 to 30 years and can be renewed.

The policy pays beneficiary a fixed amount in case of the death of owner of the policy during the term. The premiums are lowest when one is young and as you grow older the renewals are higher. These policies don’t build up the cash value. As the name suggests this type of insurance policies provides protection for a specified period of time.

If the owner of the policy die within a specified period and the policy is in action, then a death benefit will be paid to the beneficiary. There is no accumulation element or cash value within the term life insurance. This term life insurance is for
  1. People with a temporary need for life insurance protection.
  2. Those who have requirement for large amount of insurance but want it within a limited budget.
  3. A person with specific business needs which may include business owners who want to cover the life of key employee.
Along with this there are various benefits of Term Life Insurance. Some of which are mentioned below:
  • Term Life insurance provides protection for a low cost.
  • If your needs change most term insurance allows you to convert to a permanent life insurance policy without need to take up any medical examination or provide any another information about the health.
  • Term life insurance is a good way to substitute other coverages, when one has been given financial responsibilities within a given period of time.
  • The death benefits in such a case which are received are generally free from income tax.
There are certain things one need to consider while taking the term life insurance. Some of which are:
  • The premiums which one pays generally increase with age, and they could be affordable later in the life. There is no cash value element, so one tends to miss the tax-deferred growth of the cash value for permanent life insurance like Whole Life Insurance.
  • Once the term period expires one should renew the policy as and when possible.

Monday, July 27, 2009

Life Insurance Options for Settlement

The life insurance settlement option chosen by you is very important when it comes to what you want your policies to go about. Most life insurance agents don’t discuss life insurance settlement options with their customers. But in reality one should always give special consideration to whether the policy is intended for family protection or for another specific need. Is this policy used to provide an income for your family and business or is the need for only a lump sum amount. Is there a need for retirement income in which case a lump sum amount would probably be the exact fit?

Life Insurance Options for SettlementIt is needless to know the purpose of the life insurance settlement option one chooses, it is an important decision and is worth deep thought and consideration. One can choose a life insurance settlement option from the below mentioned plans as per your convenience.

One can choose to proceed the paid out in One Lump Sum. This can be advantage if the individuals need is a lump sum need. It can be a wrong option if the intent would be securing the family. It is better to choose an income option to fulfill one’s need if one wants to secure his family.

The various income options include:

  • The proceeds of the life insurance policy can be paid in the form of a Life Income. If you have a situation where you desire to have a sufficient income paid to spouse for the rest of life, the Life Income Option is ideal. So for such people there are several Life Income Options.
  • When one is setting up the pension one can arrange with the insurance company to pay out for the income until the last person named in the policy dies. This type of policy is called as Joint and Last Survivor Settlement option which is used for mostly married couples.
  • There is a option called Fixed Period Income Option. This option allows one to take care of the costs for the years you want them to take your guarantee to which would be a good life insurance settlement option to use up for the purpose.
  • The fixed amount option is similar to Fixed Period Option as far as the end results are concerned. In this case one decides on how much amount of income one desires each month and on the basics of that the insurance company will calculate how long the income will last.

Sunday, July 26, 2009

Help! I am moving overseas and have some questions!

Ah, the PCS season is upon us yet again this year! It caught me completely by surprise until I saw a half dozen moving trucks on my street all in the space of a week. My kids are also lamenting the loss of some of their friends. I've also cooked a meal or two, played taxi service and watched a few pets to help out where I could. Isn't it nice how, in a military community, you can rely on others to help out? I've also noticed my inbox is more full than usual, all with questions on peoples' upcoming moves. Please be sure to read my moving articles, as I do answer a lot of your questions there. The two questions I received today are listed below - involving traveling with multiple children and learning the host language after arrival.

Question:

Hi,
My husband has been stationed in Hohenfels Germany, he's already there, and I will be flying over with my 2 sons (3 & 1 yr old) by myself. I've read as many tips from everywhere as I can but when it comes to requesting my tickets from TMO - I was wondering if you can tell me what to expect. Can I request a bulk head row? Can I ask for certain flying times? I thought if I could fly out of the international airport at night, it might go better for my kids. Is there anything I should know about flying by myself? Have you done it? I have a dozen questions and no one to ask. Like -
Can I take a double stroller?
How many carry ons do I get?
How many pieces of luggage?
HOW AM I GOING TO GO TO THE BATHROOM ON AN AIRPLANE WITH 2 SMALL BOYS!!!???
I've never used one of those cart things, how would I go about asking for one?
I read somewhere you can sometimes get a bassinett for the plane ride? Have you heard of that?

Answer:

I have flown with two little ones. I took a stroller with the babycarrier/carseat for the little one. For the older one, I had a boosterseat (airplane approved) which I had in a huge diaperbag with supplies for both. I checked the older one's carseat at the front and got it before we got in the car at our destination. I then also had a backpack for myself and a frontpack baby carrier to carry the little one when my arms got tired and for when I wanted to load up the stroller with my bags. The stroller you can take all the way to the plane. You can gate check it, which means you'll get it back immediately after you arrive at your destination as you walk off the plane.

As far as on the plane, the flight attendants are very helpful if you have to use the bathroom. They always wanted to come by and hold the baby and the little one stayed in his seat with no issues when I flew. I just had his favorite things in his diaper bag...and this was before portable DVDs...didn't need them. The droning sounds of the plane are soothing and as long as the kids don't have ear problems, they should be fine. When you hear a screaming baby on the plane, it is almost always their ears and the pressure....do a google search for relief as it involves hot water and cups to relieve the pressure...sucking helps too, so pacifiers, bottles, breastfeeding, whatever it takes. Mine are 20 months apart, and I flew when the little one was 4 months old.

When you make your travel arrangements, ask about the bassinet. I am not familiar with them myself. Typically airlines keep the bulkhead seats to sell last, as this gives the airline and the flight attendants some flexibility in seating and helps when you have someone who needs more room or whatever. Go ahead and request the bulkhead, considering your situation, they might give it to you. Oh, one thing I almost forgot, at least from the East Coast, overseas flights leave in the early evening, so it fits in with what you are requesting.

You're not going to see those luggage carts until you get to baggage claim. Most have a money slot (so have quarters and 1 euro pieces with you as I have heard a quarter can be used instead of a 1 euro piece)...and then you return them to get your money back (German grocery stores do this with their carts too...the US should do it and maybe there wouldn't be carts all over the parking lots).

I would get one of the skycaps to bring your luggage to the check in. I hope I answered most of your questions.


Question:

My husband and I are from Puerto Rico and he just got his assigment to move in work in Baumholder Germany. Us being from PR and you must know this is a total change for us.

I'm worried about a few things already but I'll be checking some stuff out using your blog information. My husband sent me a program to start learning German, but I find it a little difficult to understand and I read in some part of your blog about German classes. Is this available on Baumholder base for the spouses?

Answer:

You should find that your base has both conversational German classes (typically run by the inprocessing center or the USO or some other entity) and then "real" German classes at the college level which you'll find at the education center. These are more intensive (you learn all the rules, etc) and cost more. The conversational should not cost more than 100 euro per 5 week term.

I think it's great that you'll be learning German. Many don't even bother as English is widely spoken, but it always shows class when you at least try to learn the language of your host language and you'll find the Germans respect you more for it.

Thanks again for your questions and enjoy your weekend!

Friday, July 24, 2009

Tips on Buying Single Premium Life Insurance

Single premium insurance provides an income tax free death benefit to the beneficiary, charity, or favorite cause which is easier to qualify for other type of insurance.

Some of the tips for buying single premium life insurance include:

(1)One needs to implement a retirement and estate settlement plan for one self and spouse. Make sure one includes the final expenses.

(2)Study the various strategies for passing estate to your heirs with various tax benefits.

(3)Thoroughly research the integrity of any charity or a special cause which one might consider as a beneficiary.

(4)One needs to conduct a search for qualified, experienced insurance agent to assist one to choose a company to apply for the policy.

Along with this there are various steps, which one needs to apply for policy:

(1)One needs to determine the amount of money one wish to deposit as a single premium.

(2)Consider the type of insurance that reflects the tolerance of the risk. There are basically 3 types of insurance policies which are categorized by the criteria: whole life, universal life, variable universal life policies.

(3)One needs to get a guaranteed printed illustration from your agent which shows how much life insurance a single premium buys and how the contract will work.

(4) Make your agent talk with tax advisor to make sure that all tax issues are accommodated.

(5)One needs to fill out the application for insurance, which would provide the detailed information about the doctor and any recent visit one has to the doctor.

(6)One needs to carefully disclose all the permission and statements before signing.

(7)One should read the policy carefully when it would arrive, and file it with another important legal document. One needs to return the policy as soon as one find any errors into the policy.

Thursday, July 23, 2009

Advantages of Variable Life Insurance

Variable Life Insurance is a type of permanent insurance which lets one target his/her premium to one or more separate investment funds.

With variable life insurance one can have a control on the investment of cash value.

Variable Life Insurance falls into 2 general categories: Variable Life and Universal Life.

The main benefit of these types of policy is that policy owner has the opportunity to achieve huge gains in terms of cash value which are tax-free. A variable life insurance policy is different from whole life policy due to 4 reasons:
  • There is a new concept called separate account phenomena which is being presented to policy holder.
  • The owner of the policy assumes the risk for the performance of the policy.
  • A guaranteed death benefit would be provided to those based on assumed rate of interest.
  • This product is considered a security vehicle which would add new rules & regulations.
In variable life insurance policy the insured would be required to pay a premium amount on a planned basis. However the insurance company in terms of variable life insurance places the premium payment to a separate account which is specific to the policyholder and the policyholder after that has the responsibility to direct the performance of that account.

Variable life insurance policies are very expensive. But they offer greatest flexibility in terms of control to policyholder. Due to this reason the policy holder makes a large amount of profit with large tax free lump sum amounts to the holders.

Wednesday, July 22, 2009

Pros and Cons of Universal Life Insurance

Pros and Cons of Universal Life Insurance
Universal Life Insurance (UL) entered life insurance market in early 1980.

The return on this investment is credited to your policy which is tax-deferred. A guaranteed minimum interest rate is applied to policy holder which means no matter how much investment’s perform, this insurance company guarantees a minimum return on the money. If the insurance company does well with the investments, the rate of interest on accumulated cash value tends to increase. Universal Life Insurance allows one to choose from 2 death benefits.

(1)It pays the death benefit out of the policy’s cash value, the more cash value you build up means the company is there for less insurance and so less cost.

(2)It pays the face amount stated in the contract, plus any cash value that may arise which is being accumulated in the years.

Many policies as of now offer a no-lapse guarantee, as long as you pay up the minimum designated premium, the policy will be in force, till the age of 100.As there are 2 sides of coins there are pros and cons of universal life insurance.

Pros:

Universal Life Insurance gives you the flexibility to adjust the death benefit as long as your needs change as well as the flexibility to pay smaller or larger premiums. It is often considered an important parameter for families who have fluctuation in their ability to pay.

Cons:

If your premium payments are very small, the policy would lapse resulting in you leaving the insurance protection. Even if the insurance company does poorly with the investment, the interest return on the cash portion would decrease. In such a case, cash values would probably fall force one to pay up for more premiums in last year.

My Two Cents on Edelweiss Lodge and Resort in Garmisch

I promised to review the Edelweiss Lodge and Resort in Garmisch so here I am following through on at least one promise I made recently....or actually awhile ago...sorry. I have only stayed at the resort twice and was a day visitor once. Here are my impressions:

The resort is inside a secure compound with gateguards. This is a plus if you are of a more cautious nature, although I can tell you, I've never had any fear staying anywhere in Germany on the economy. I've stayed numerous times in small hotels and bed & breakfasts and felt safe there as well.

As you drive up, it is an impressive place...and large. I believe it has around 300 rooms. The first time we visited, it was during a four day holiday weekend during the holidays. Yes, it was beautiful walking into the foyer and breathing in the high mountain lodge atmosphere. That lasted all of two seconds before the first posse of kids cut me off in the large foyer. The place was hoppin'....with no parents in sight anywhere. Packs of kids, as young as four years old, ran around "loose" all around the resort, up and down the elevators and running and yelling through the halls. We only came by to have a meal at their Marketplace buffet area and to use the pool, which I think had a $10 fee for non-guests.

The pool was packed to the gills....as was the hot tub....kids everywhere. The rules say, no children in the pool area without a parent, but I'm not sure if this was followed on this visit. We did eat at the buffet, where there were overturned bowls, spilled food and a general array of messiness. It's no wonder my entire family got really sick the next day. This was the only meal that all of us partook in, so it was obviously suspect. The quality of the food was also suspect in that it was overcooked, watery and not fresh.

My second trip to Edelweiss Resort was with the boys to attend a conference. They price the rooms according to your sponsor's rank. I am thinking we paid around $125 a night, strictly for a room. We went during the week and found the atmosphere totally different than during our last visit. It was relaxed and somewhat peaceful. We must've had a handicapped room, as the floor space in the room (with two queen size beds) and the roomy bathroom was enough to conduct an Olympic gymnastic floor routine. We were also towards the back of the lodge, down one of the shorter hallways that ended in a dead end, so almost no foot traffic outside our door.

We only ate breakfast in the Marketplace, which was fine and lots of typical breakfast buffet choices. It was much more orderly than the last visit, and no, we did not get sick. We did eat dinner the night before at Zuggy's Base Camp, which was typical burgers and accoutrements fare. My 11 year old remarked that the portions could've been larger. I was never asked how my burger should come, ie well done, rare, etc....so it came about as well done as it could be.

The pool also was much quieter, and now that I was here a bit longer, I could tell the resort was starting to show some wear around the edges. Alas, I think it has taken some abuse just from the sheer volumes of visitors and will need some refurbishing soon.

Our third visit, was as a family of four. We attended a reintegration weekend of two overnights and a marriage seminar given by our unit chaplain. This was at no cost to us. Our children were also able to come and participated in some of the kids' activities and had a great time with some of their friends. This time, we had two rooms, each with two queen-size beds. The kids of course loved this...on second thought...my husband and I did too. Even though we didn't get adjoining rooms, they were right across the hall, and we did brief them on emergency situations and such and told them not to hang over the balcony and create a scene.

Since the Marketplace was included for all our meals, we decided to give it another chance. We did have a larger crowd than when I came with the kids, but it was not nearly as bad as the holiday season....still bearable. The hot tub was closed for a day and a half due to repairs, but they must've fixed it as it was open our last night there. The lodge also enforced the "no kids in the hot tub after 8:30 pm" rule, which was nice. I was amazed at how many little kids were still whoopin' and hollerin' in the pool right before closing at 10pm.

Oh, the Marketplace...they tried really hard with a Bavarian night with sauerkraut and wursts along with pork roast and some other fare, but they really shined the next night with the prime rib. It was very good. So I'm guessing it depends on which headchef is on duty that day. The second night, it seemed they were more attentive with the food being put out and the presentation of all the dishes, both hot and cold. As I said, high marks for the second night and as a highlight, and as a bonus, no one in my family got sick.

Our room location though was very bad...it was down the third leg of a very long hallway...not quite at a dead end, but it was still been on a major approach path. I am amazed at parents who allow their children to run up and down the hall after 10pm at night....no manners or supervision yet again. It's a good thing we hadn't planned on sleeping for awhile just yet.

All in all....yes, it's a nice place to stay, but it's not all what it's cracked up to be. As I said, I've stayed in nice bed and breakfasts all throughout Garmisch and Partenkirchen at half the price. I still love the German continental breakfasts with the boiled eggs and fresh rolls, meats, cheeses and jams. We stayed in one last year, where everything was homemade and the chickens were right outside our window in the grassy field next door.

I have a friend who swears by the Familotel Leiner in Garmisch. It is part of a national chain, but each hotel isprivately owned and all focus on families with small children. My friend (with four kids) was amazed at all the high chairs, strollers, sleds and things they had for her use. Her bill, much cheaper than ours, even included breakfast and dinner. Dinner was such a nice experience for her, as they had a playroom for the kids, right off the dining room, and they didn't have to worry about fussy kids...for once, she was actually able to enjoy dinner. The rooms had adjoining bathrooms, and the kids had a separate bedroom. They took VAT forms as well. I always take one along when I travel and am never shy when I make a major purchase or pay for a hotel room. You'd be surprised at how many do take the VAT and are familiar with it.

So, that sums it up. Yes, if you can get in, go for the Edelweiss. Do realize that at many times a year, getting a reservation is almost impossible. Follow their guidelines on their site and know that for the holidays, they do use a lottery system now. Stay away on those four day holiday weekends and during the December and January holidays, especially if you don't like screaming kids. Don't discount the many bed and breakfasts, and give them a chance. We still like them, especially when we are traveling with our dog...forbidden at Edelweiss Resort. Remember, you can still enjoy the resort and amenities, even if you are not a guest.

If you have any things to add, please do so below.

Tuesday, July 21, 2009

Things to Know About Variable Universal Life Insurance

Things to Know About Variable Universal Life Insurance
Variable Life Insurance is a type of insurance which builds up the cash value. In this type of insurance the cash value can be invested in a wide variety of separate accounts which is similar to mutual funds which are contracted upon by the contract owner. The most significant advantage of using Variable Life Insurance termed as VUL is that it allows one to invest in multiple accounts which specify one to increase the value over time, meaning that there is potential to grow in much larger payout than fixed type life insurance policy.


Another advantage of VUL is that monthly payments are variable meaning that they are flexible within the limits of insurance policy. It might be possible that on a given month, a user might not opt to pay for anything at all but after a while they could pay for a very large amount which has been specified for the government. Payments to be made are up to the decision of policyholder as long as they make and maintain a minimum amount to pay up for costs involved in the policy.

Along with that there are various drawbacks in choosing a Variable Universal Life Insurance Policy. The first is that the costs and fees of the account are typically more than any other type of life insurance due to the transaction costs involved in making such trades.

The second is that investing in itself carries some risk, so that the value of policy would go down if the market performs better. As a result of which this variable universal life insurance policy is a better option for those who are younger and have a longer time to invest which would alleviate the risk by spreading it out with time.

Monday, July 20, 2009

Is Return of Premium a Good Investment Option?

Return of Life Insurance Premium offers a solution which rewards people for staying alive by giving them the entire amount of premiums paid.

Return of premium solves the biggest mystery about term life insurance. If the policy holder lives longer than the policy period all of his premiums are paid back to him. The return of premium policy would cost more than standard term policy but would return all the payments in premiums at the end of 30 years if the policy holder is alive at the policy expiry period.

From this it is easy to conclude that the returns of premiums cost nothing but one needs to evaluate whether it is actually true. The fact is that return of premium may cost more money than it saves. Taking into account inflation there is a substantial price to be paid for unused return of life insurance premium policy. It is always important to keep in mind that amount of interest which could be earned on the money could be used for a period of time, not only because policy holder earns that money but also it makes the business profitable for insurance agents and brokers.

The additional cost of return of premiums also varies in standard insurance. For a 30 year term period return of premium costs as much as 50% more than a standard policy. For 10,15 year period it can cost up to 200% because insurance companies have less time to make an investment and earn interest themselves.

An individual who wants to consider investing premium life insurance might want to purchase a standard term policy and invest the difference for him/her.

Friday, July 17, 2009

Reasons For Lapse of Life Insurance Policy

Life Insurance Policy is basically a contract between insurance agent and the policy holder wherein the insured party is paid death benefit in case of policy holder’s death. But the insured person is supposed to pay a premium to avail of these opportunities.

Particular events like sudden demise, accident or sickness are all supported by life insurance policies. But in many cases life insurance policy lapse which is not good for the insured person.

The main reasons why a policy lapses are:
(1)Many people are not able to pay premiums in time since they can’t afford it. This type of lapse requires that one applies for a new policy but it is not beneficial since one has to pay more premiums for the same policy. While buying a policy always read the terms and conditions and then apply for a flexible plan which allows one to even skip the premiums. If one wants the death benefits then one should make life insurance premium their priority.
(2) The main reason for the lapse of the policy is that people tend to forget to get policy renewed which is timely due to which one has to bear the adverse consequences of it .
(3) Once you have a past history of lapse means that it would affect your present lapse also since the agents think that one might leave the policy for better options. Many times its vice versa phenomena meaning that the insured person feels that he is imparting surplus money as compared to advantages so he lets his policy lapse and opts out for a better option.

These are the main reasons for the lapse of life insurance policy, but policy holder must always be careful of reimbursement of the same. In this case the insurance agent lets one convince about the lapse of the old policy and providing you with a new cover which would earn a good commission from your money.

Thursday, July 16, 2009

Things to Know About Variable Life Insurance

life insurance
Variable life Insurance policy is one in which the bulk of the premium amounts is invested in one or more separate investment accounts. The investment options have variety of variations which include fixed income investments, stocks, mutual funds, bonds etc. With such type of insurance you can get permanent life long protection. The word “variable” indicates that one can divert a portion of premium hard earned money into separate account such as equity fund, bond money, and money market fund. With such type of insurance one can have:


  • Guaranteed minimum benefit
  • The premiums will never change
  • Equity which you’ve built up through payments can also be reinvested
  • Earnings in the cash value portfolio are tax deferred with which the portfolios can be transferred without penalty.
  • Portfolios have a minimum return which would provide one with guaranteed growth.

The variable life insurance as per the policy updates may fluctuate with up rise or drop down of the performance of investment part at any point of time. Many policy holder specify that the death benefit doesn’t fall below a minimum amount, but rarely an insurer will give you minimum cash value. This type of insurance is similar to whole life insurance, the risks of whose investments are considered as a securities contract.

Many people opt for variable life insurance because it will enable one to participate in various investment options without having to be taxed for their earnings. You would also get lower premiums by applying interest earned on the investment towards them. The ability to make more money is one of the best factors behind buying variable life insurance.

Wednesday, July 15, 2009

Reasons Why People Buy Life Insurance

Life Insurance doesn’t benefit the person who pays for it. There are various reasons why a person would invest in a life insurance policy.

Some of the main reasons are:


(1)Life Insurance to Pay Funeral and Burial Expenses: Even if a person has no dependents he might purchase a small life insurance policy to make him pay for the expense of his/her funeral , burial or real estate taxes which are costly procedures which cut the expenses of friends and family or other charity.

(2)Life Insurance Supports Family and Dependants: The first reason that people buy life insurance is to safeguard their family’s finances against future in case a person happens to die. This insurance is intended to pay out enough money to support one’s family even if the person’s death becomes a major winner for living expenses, mortgage payments and even children’s college tuition. The larger the payout the more costly the plan. Sometimes cheap life insurance falls when it is most needed as the cheap life insurance policies might have conditions and exemptions which allow insurance companies to escape payments.

(3)Life Insurance to Protect Business: Business owners and managers take out life insurance policies on themselves to protect business in which they have invested a big amount with energy and attention. It is possible to insure business partners to pay out business in event of death. The insurance is meant to offset the estate taxes which could otherwise force family to sell the business at a loss.

(4)Life Insurance as a Retirement Investment: Whole Life Insurance is often called as an investment or savings plans. This type of insurance offers policy holders the option of cashing out in part or all of their insurance plan at some point before their death and receiving cash instead of insurance pay to their survivors. This insurance is just called as a waste of money. These policies often charge a premium for both insurance plan and investment while paying out one of them.

(5)Life Insurance to Give to Charity: People who don’t have or want there families to get insured using life insurance take out such a life insurance policy where they make their policy to give out to charity. This kind of gift is a way to give final donation which is such a big amount which many people can’t afford to give away.

There are many reasons why people buy life insurance. Out of them the most common is securing a safe financial future for any family members and beloved ones. So buying a life insurance is a very best way to secure one’s future.

Monday, July 13, 2009

How to Choose Best Life Insurance Policy

The choice for whether to choose whole, term life insurance or any other policy doesn’t depend on which policy is best or worst. Each policy has its own place and benefits. So before buying a insurance policy a proper financial analysis of your needs is to be done which would have a far more accurate idea of how much life insurance policies one can afford to spend. One of the best options is to mix and match the various options available which will better fit in one’s needs.

Universal Life Insurance Policy: This universal life insurance policy is based on a term life insurance with a cash component. In such a type of insurance instead of selecting just a specific term and putting 100% towards one’s premium, part of the insurance premium payable will go into cash account. This cash account will earn interest as well as investment. As the policy holder grows older a small portion of premium goes towards the investment and the rest is covered as a higher proportion to risk element. The major advantage is because it has a cash component one can temporarily stop making payments when the cash is strapped out. The disadvantage is that it is quite expensive when compared to a term life policy. Before buying a term life insurance policy one needs to check whether there is guarantee on the premiums on universal life policy without which a person may get disappointed.

Term Life Insurance: A term life insurance policy is purchased for a specific time period which may be 10, 15, 20 years. In this type of insurance there is no cash value so it is the best option for people with young children who want to have life cover in case something happens to them but at a cheap price. There are different kinds of term life insurance policies which include:

Level Term: As the name suggests the premium and death benefit remains in level i.e. remain same each year.

Renewable Term Insurance: If term life insurance is an annual renewable policy then the life cover can be renewed each year without filling a new application. The premium is not fixed and goes up each time the policy is renewed.

Decreasing Term Life Policy: The death benefit decreases each year but the premiums remain the same. The policy would end once death benefit reaches zero.

Increasing Benefits: With this kind of cover the death benefit amount will increase each year and the premiums payable would increase on a yearly basis.

Whole Life Insurance Policies: Whole life insurance policies will get a cover for policy holder against death or disability until the day he/she dies leading to premiums being paid up. The major point of concern in this type of insurance is how the premiums are designed. Like universal life, whole life insurance has a cash value component and in many cases the death benefit and premiums are also fixed.

Variable Universal Life Insurance Policies: The variable universal life insurance policy is similar to universal life with the exception that policy holder doesn’t earn a specific rate of interest in cash value find but the policy holder can invest this portion of policy in different investments like mutual funds. The control for where to invest is in the hands of policy holder giving them certain flexibility in terms of investments but it will also lead to carrying up of more risk.

After analyzing these types of insurance one should take into account different types of quotes with different policy schemes wherein one policy may have lower premiums than another. The premiums would be cheaper if one has no guarantee for the policies. So before buying a policy one needs to read the fine printed policy for all the terms and conditions. If you feel you are getting confused then ask a fully qualified financial planner for advice before buying a policy.

Sunday, July 12, 2009

Things to Know About Disability Insurance

Disability insurance has been into existence for many years from now. This is a type of insurance which can be referred to as income replacement insurance. But you might want to know what this Disability insuranceinsurance is actually about.

Disability insurance is a type of insurance in which if a person is incapacitated in any way and unable to work in his/her occupation then that person is considered disabled.

This disability insurance policy is non-cancel able and gives guaranteed renewable. As a result of which the disability insurance policy can’t be canceled by company except for non-payment of premiums and its policy terms can’t be altered in any way.

Elimination Period

The elimination period of the policy is the period of time one can wait before the payments of benefit begin. This period is an agreement by the contract which is selected by purchasing the policy. The elimination period may vary between 30, 60, 90 or more days. As the elimination period gets reduced the higher would be the premium. Majority of people choose an elimination period of 90 days.

Benefit Period

This period is the time when you will be paid an income during your disability. The disability insurance period may vary but most companies give a disabled person the benefit up to 2 or 5 years. As much longer the benefit period the higher would be the premium paid.

Many people become disabled for a short period of time, as many as 5 times during the lifetime. This would result in a loss of income which is very disastrous for a person. Hence disability insurance policy would prove as a secure hedge against such an eventuality. The insurance amount you would be allowed to insure yourself is between 40% and 60% of gross income.

On seeing this parameter one needs to be cautious while choosing a disability insurance period. Before signing a disability insurance one needs to know that they sign disability insurance for their own occupation and get insured only on their own occupation disability or incapability.

Friday, July 10, 2009

Factors Contributing To Term Life Insurance Rates

Term life insurance as the name suggests is the policy which provides coverage for a limited period. The time period for this type of coverage is decided by policy owner only.

The main reason why different term insurance rates are there for different people is because once the policy for term have been used up, no payout is received for the policy. If you take term life insurance rates at a young age you would be able to get very cheap term life insurance rates than if you were older.

The actual or total cost of term life insurance rates is also very tricky. Some term insurance prices appear to be higher but they may be cheaper if taken into consideration the actual cost over time. There are policies like annual premium insurance policies which require that premium be increased every year leading to high actual cost compared to level term insurance policies where premiums remain the same, even if the initial premium for the level term policy may be higher.

Along with that there are various factors which affect which influence life insurance rates. Some of them are mentioned below:
  • People who consume tobacco are twice as likely to die as someone who don’t consume tobacco during insured period. Insurance companies take this account when insurance premium rates are determined. So by quitting smoking, tobacco chewing one can save up to 20-30 percent of your term life insurance.
  • If one is suffering from terminal illness or disease, it would be really difficult for that person to get term life insurance. Even if he/she gets the term life insurance the insurance premium amounts would be sky rocketed.
  • If a person is working in a dangerous profession it would be difficult for that person to get term life insurance and even if one gets term life insurance the rates for the term insurance would be high.
Term life insurance rates vary a lot depending on various such factors mentioned above. To make term life insurance cheap what one needs to do is take some smart decisions like quitting tobacco, smoking and working in professions which are not life threatening making it lower down term life insurance premiums.

Thursday, July 9, 2009

Life Insurance Legal Principles

Life Insurance Legal Principles
A life insurance policy is an contract or policy signed between an insured and an insurer.

In terms of law there are 5 things one needs to know for a contract which are as follows:
  • Offer & Acceptance
  • Consideration
  • Capacity to contract
  • Insurable Interest
  • Consensus ad idem, which in English means a Conesus of agreement.

Offer & Acceptance: In English law there is a offer and acceptance contract. This means that one party makes an offer and another accepts that offer without qualification. If qualification is being asked upon acceptance then it becomes an alternative offer. Also there is something called as invitation in terms of law. This invitation is considered as a form of advertisement. Insurers issue out their prospects & brochures making them just an advertisement method to attract consumers. In life insurance the insurer usually makes an offer to contract by telling the insured that he has accepted the proposal and willing to offer insurance at a set sum, based on the policy and subject being paid. After that the insured accepts the offer when he pays up the first premium. Generally life insurer makes their offer, such as to make it pay the first premium by a certain date until which the life insurer should be in a steady state of health. If before you pay your first premium amount your health deteriorates then life insurance contract may not be valid.

Consideration: Consideration should be considered on both sides. This applies to all contracts which are not under seal. The insured consideration is first payment of the premium and insurer’s consideration is offer to pay out the sum the life insured dies during policy.

Capacity to contract: Both the insurer and insured should have the capacity to contract with each other. Persons under the age of 18 years are not allowed to enter into a contract and even if they are it is subject to certain restrictions upon them under the Family Law Reform Act 1969.

If any contract is signed with a person of unsound mind insurer can not enforce a contract against them if he was not unsound at the time when the insurer contracted them. Under the Mental Health Act 1983 the affairs of person of unsound mind can be placed under the hands of court protection.

Insurable Interest: The person who is taking out policy must have a insurable amount called insurable interest in the life insured. Before 1774 this was not the case as people were taking out insurance policies on famous or notorious people as a type of gambling. The life insurance Act 1774 put a stop on it. Now the act requires the proposer to have an insurance interest in their life insured and level of insurance they are taking should not exceed value of insurable amount.

Conesus of Agreement: In this law both the parties the insurer and insured must be in an agreement about what they are contracting. The original idea for this came into effect when long back ago one party was selling a boat and another person was buying a boat. But coincidently there were two boats with the same name and each party thought that other was talking about a different boat. In terms of law it is called as idea of ‘utmost good faith’. This means that insured has all the knowledge and details about themselves and insured has none. So the insured has the duty to advise the insurer of all the facts.

Wednesday, July 8, 2009

Top 5 Reasons to Buy Child Life Insurance

Top 5 Reasons to Buy Child Life Insurance
As one knows life insurance is a way you can provide financial protection to your family in case of an individual’s death.


Some of 5 reasons why one should consider buying child insurance are as follows:

The unexpected:

The insurance works on the principle of what can happen unexpectedly. We can expect to be in an auto accident one’s so we carry auto insurance. We can also expect we can be sick more than once so we take out health insurance and similar in case of young death of an individual one takes out life insurance for financial protection of the family. Similar thing is there in child insurance. If an individual’s child for some reason do not live long enough then one gets a financial benefit of loss of children’s life insurance.

Peace of Mind:

One should ask people surrounding their circle how they feel when they don’t have insurance do they feel secured. There is an expected answer to this people would want more and more insurance to feel safe and secure. This is because it is very expensive to pay up for costs without life insurance. If a person undergoes a surgery without having health insurance just have a look at the bill. It’s such a big amount that it is almost impossible to pay out without the help of insurance coverage. But a very sad part is many consumers can’t afford to pay up the insurance premiums as it’s quite costly. But child life insurance is not that costly as you have to pay up for just less than $20 per month.

Future use:

If an individual purchases child life insurance one can retain it till the time you are required to pay the premium. If the children don’t need the policy when they are young they can use it when they grow older and encash the cash value by terminating the policy.

Getting them started:

Once a child grows up one has to pay for their education. Paying up for education through student loans would increase the outstanding amounts. Instead of that if an individual has started a child life insurance plan a when the child was born then the huge handsome amount of money could be paid up by the insurance company whenever they need it for future growth. Due to this policy the child could have to pay a less amount when starts earning rather than paying big student amounts. Those who want financial flexibility should always opt for second option.

Future life insurance issues:

If one has child life insurance policy one can amend the policy as they grow older without worrying for life insurance. It means that regardless of their health they won’t need a life insurance policy as they already have extended it and this would be helpful to protect them and their family in case of death.

Tuesday, July 7, 2009

Top 10 Life Insurance Myths

Whether a phenomenon is a fact or fiction, fear or just a false impression depends on an individual’s mindset.Top 10 Life Insurance Myths

So below are described some common myths or misconceptions which people have regarding life insurance:

(1) I don’t need life Insurance: This is actually a very wrong myth. If an individual doesn’t have children, have no money to cover all debts & funeral expenses, doesn’t feel the need to leave behind any money or income to their spouse or family, then this statement is true I don’t need life insurance. But if you have anyone behind you who relies on your income for their day to day needs or you have any outstanding payments then you definitely need life insurance.

(2) I don’t work outside the home, so I don’t need life insurance: This is not true. Just as you have children and house which would incur some costs for their growth and house-keeping costs which would be required even in the absence of a stay home parent. So this would cost a lot of money and a reason to get involved in life insurance.

(3) I have life insurance through my job, so I don’t need any additional coverage: This is not true. There might be a possibility that your employee insurance coverage might not be protecting yourself and loved ones as much as you want it to be. So one needs to check and review how much employer-paid insurance is provided and calculate whether it is enough to keep family comfortable through difficult times. The most important parameter is that when one leaves the job, the coverage along with that will also cease out.

(4) I have coverage from my mortgage lender. It’s enough: Mortgage life insurance pays off the mortgage if one of the person’s listed on the loan dies before it is paid. But what would happen to others. So for that Term life insurance is there which offers coverage which can be used for anything which includes funeral expenses, paying down mortgage, car loans& offset to loss of income.

(5) I don’t need life insurance once my children are self-supporting & mortage is paid off: Every individuals insurance needs vary. What would happen to your spouse and how will she manages your daily living expenses without your help. It may be possible that she may live 10 or rather 20 years more than you.

(6) I won’t be able to get insurance because I am a smoker: This is not true. Only the thing you would have to do is being a smoker pay somewhat higher premium compared to non-smokers.

(7) Once a smoker always a smoker in eyes of life insurer: This is a wrong misconception. Actually the smokers who have stopped smoking life insurers will check on them for a year and if found non-smoking will have to pay less premiums for non-smoking.

(8) I’m young so I won’t need life insurance: Although it is unlikely that you will die during working years, you are not insuring for what’s likely to happen but instead in case of worst case scenario. This is the reason why life insurance is inexpensive for young, healthy people.

(9) If Term Life Insurance is really so cheap there must be a catch: This is a misconception there is actually no catch. Your basic term life insurance offers coverage so long as you pay your premium. You buy term insurance for duration you need life insurance whether you are kid or until mortage is paid off.

(10) It’s a hassle to get life Insurance: This is a misconception as through internet getting quotes is easy , fast & free with a very less hassle to compare the quotes as well.

Monday, July 6, 2009

Critical Disease Insurance-Pros and Cons

When a disease occurs in which an individual is unable to work this type of insurance provides a sum of money which can be used for day to day living expenses. This critical disease/illness insurance can be carried out along with life insurance. As a coin has two sides similarly every insurance has two sides which include advantages & disadvantages:

Some of Advantages of Critical Disease Insurance is:

  • Tax Free Sum: Within a period of 30 days of being diagnosed with a disease which is life threatening a critical disease policy gives out a tax free lump sum amount.
  • Family Protection: Critical illness insurance is very much required for those who have mortgage or outstanding amounts to pay with a young family to protect.
  • Covers upto 30 diseases: This critical health illness insurance plan covers upto 30 diseases which includes kidney failure, major organ transplant, cancer, heart attacks, coronary bypass, multiple sclerosis and strokes.
  • Peace of Mind: Critical Illness covers family with a peace of mind in case of critical health insurance. This type of financial insurance relives one from the tension without having financial difficulties leading to recovery of person when unable to work.
  • Guaranteed premiums: While premiums tend to be cheaper, it is advisable to get guaranteed premiums as it will save money for a term of critical illness period.

Some of disadvantages of Critical Disease Insurance policy include:

  • Additional Costs: Individuals who are struggling to pay even general living expenses may find it difficult to afford critical illness insurance due to their costs.
  • Exclusion of certain diseases: Certain diseases like HIV, non-invasive skin cancers and some type of prostate cancers are not included in the critical illness insurance. So before taking up critical illness insurance one needs to check & ensure that policies for which they are looking out for insurance are matching or not.
  • Existing medical conditions: Sometimes it may happen that some of the family members may have high incidence of specific illness for such people either the insurance premiums would be high or the disease excluded. Those of who have already suffered a life threatening disease may find that the insurance cover would be excluded from the policy.
  • Under-Writing Process: Once the required information is collected underwriters would check that those having a critical illness insurance policy there insurance premiums would be increased. The premiums would be increased for only those that smoke or have a high incidence of certain diseases within a family bloodline or are overweight.

Having seen the pros & cons of critical illness insurance one should consider it essential to make it a point to buy this insurance only when they have financial & family commitments.

But the premium amounts vary and so one should always use a price comparison service to buy this type of insurance policy cover.

Saturday, July 4, 2009

Why Not To Buy Whole Life Insurance

Nobody wants to leave a family in financial harm if a tragedy occurs. For life insurance sellers most common product to be sold by life insurance agents or sellers is whole life insurance. The whole life insurance is a bundled product which combines whole life insurance element with a savings plan. It is very expensive to buy insurance and this whole life insurance has some flaws. Some of the flaws of whole life insurance are:


Expensive In Cost:

Whole Life Insurance has one of the biggest flaw which is cost. As whole life insurance is expensive people opt for good quality term insurance. But the company selling whole life insurance doesn’t want the consumer to see out flaws so they market unattractive term insurance rates.

No Savings:

Whole Life Insurance Policies have the argument that savings portion of the policy offset the prices. But actually that’s not true first of all the rate of return on a policy is a low, many policies have a negative rate of return for many years.

To save the savings the policyholders have either to buy their own money from the policy or to cash out the policy and lose the life insurance. With this type of insurance even if the policy holder pays for savings & insurance only one of the two partners is paid, not both.

Avoid Participating Policies:

The participating policies imply that policy owner gets the dividend back. But this is not, true dividend that would represent share in profits, actually it is a rebate of overpayment on the policy.

Universal Life:

Universal Life is one of the schemes which have more traps than whole life insurance. This policy is sold more as investment but actually it tends to bankrupt a person leading to low rates of return. This is a very confusing policy as few consumers understand what they are buying so one should buying it out.

Term Insurance & Invest the Difference:

The best effective method to investing in insurance is simple term insurance. It should be level premiums for twenty years at a time and affordable throughout the life of the policy. Also there is a lot of cost-effective difference between investing in term and whole insurance making term insurance at an advantage

Eliminating the Need for Insurance:

If at some point good financial planning is followed then policyholder wouldn’t need insurance. Basically insurance is needed to replace lost income in case of death of policyholder. In life at a stage where all outstanding payments of mortgages & loans are paid off, children have settled away and a sufficient amount of savings one doesn’t need any insurance.

Combating Consumer Confusion:

The insurance industry is thriving on consumer confusion & ignorance. It is very easy for an insurance agent to sell a bad product when the consumer is in dark. So it is important for potential buyer to do their homework before buying an insurance policy.

So providing on such basic tips on what to buy one would be sure that doing proper homework is very essential as what to do in your requirements whether to go for term or life insurance.

Friday, July 3, 2009

Why Not To Buy Whole Life Insurance

Life Insurance is one of the most important necessities that adults feel is responsible thing to buy. Nobody wants to leave a family in financial harm if a tragedy occurs. For life insurance sellers most common product to be sold by life insurance agents or sellers is whole life insurance. The whole life insurance is a bundled product which combines whole life insurance element with a savings plan. It is very expensive to buy insurance and this whole life insurance has some flaws. Some of the flaws of whole life insurance are:


Expensive In Cost:

Whole Life Insurance has one of the biggest flaw which is cost. As whole life insurance is expensive people opt for good quality term insurance. But the company selling whole life insurance doesn’t want the consumer to see out flaws so they market unattractive term insurance rates.

No Savings:

Whole Life Insurance Policies have the argument that savings portion of the policy offset the prices. But actually that’s not true first of all the rate of return on a policy is a low, many policies have a negative rate of return for many years.

To save the savings the policyholders have either to buy their own money from the policy or to cash out the policy and lose the life insurance. With this type of insurance even if the policy holder pays for savings & insurance only one of the two partners is paid, not both.

Avoid Participating Policies:

The participating policies imply that policy owner gets the dividend back. But this is not, true dividend that would represent share in profits, actually it is a rebate of overpayment on the policy.

Universal Life:

Universal Life is one of the schemes which have more traps than whole life insurance. This policy is sold more as investment but actually it tends to bankrupt a person leading to low rates of return. This is a very confusing policy as few consumers understand what they are buying so one should buy it out.

Term Insurance & Invest the Difference:

The best effective method to investing in insurance is simple term insurance. It should be level premiums for twenty years at a time and affordable throughout the life of the policy. Also there is a lot of cost-effective difference between investing in term and whole insurance making term insurance at an advantage.

Eliminating the Need for Insurance:

If at some point good financial planning is followed then policyholder wouldn’t need insurance. Basically insurance is needed to replace lost income in case of death of policyholder. In life at a stage where all outstanding payments of mortgages & loans are paid off, children have settled away and a sufficient amount of savings one doesn’t need any insurance.

Combating Consumer Confusion:

The insurance industry is thriving on consumer confusion & ignorance. It is very easy for an insurance agent to sell a bad product when the consumer is in dark. So it is important for potential buyer to do their homework before buying an insurance policy.

So providing on such basic tips on what to buy one would be sure that doing proper homework is very essential as what to do in your requirements whether to go for term or life insurance.

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Life Insurance Covers For People above 50’s

As you get older over 50 years of age you have your children grown up, moved their homes and settled so why do one need insurance at that stage.

Some of the reasons for having life insurance above age of 50 are:

  • There may be some mortgages or loans which might be outstanding which you could have taken for any reason. In case of death of the individual what would one do, if no financial back is there? So to protect the financial losses life insurance is needed. If one has insurance then insurance companies would pay the outstanding dues in case of death.
  • In case of death, funeral expenses will be covered and paid out by life insurance policy provider.
  • Often the children buy out insurance policy for their parents. This is because they plan out a way for future in absence of their parents.
  • In recent times due to financial troubles around the world, younger kids are returning back home or are not able to support ones parents which makes it all the more necessary to have life insurance.
  • Generally, life Insurance payments are not taxed, so it is a way to leave some cash behind for successors which would be used to clear the debts in case of individual’s sudden death.

Along with that benefits there are also some limitations associated with over 50’s life insurance.

Some of which are mentioned below:

  • Taking out insurance at age of 50, may be expensive, but the expense may be worth if compared to prospect of one’s partner being landed in debts in case of one’s sudden death.
  • Health questions would go back for perhaps 10 years or more and questions from immediate family health issues may arise.
  • Smokers would be penalized & one would have to submit blood & various other samples for higher insurance amounts.

After one has decided that whether to buy over 50’s Life Insurance you would like to know what options available for are over 50’s life insurance:

At the age of 50, the insurance companies would not insure for more than 20 years. So it would make sense only to buy term insurance which has lower costs with less time period.

The various options available for 50’s insurance are:

  • Life Insurance of over 50’s policies are called as senior policies or final expense. These policies have smaller values which are specifically designed for older people to provide them affordable cover & which will not expire as long as the policy is kept in force.
  • Simplified issue life insurance policies are those policies where there are less health related questions asked by insurer and older people and they can qualify a little easier.
  • Guaranteed life insurance issue means that insurer will waive of health questions. These policies use a waiting period of up to three years before the policy is in full force and in the meantime, if the insured pass away, the receipt of it will only receive refunded premiums plus interest or a percentage of the whole face value. Also, the premiums will be higher than simplified policies.

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Thursday, July 2, 2009

Top 5 Reasons to Invest In Life Insurance

Life is full of uncertainty. Anytime anything can happen with us.

Below are top 5 reasons why one should invest in life insurance:


(1) In case of death or disability conditions or illness ones family needs to be covered. If an individual’s death would result in financial difficulties for loved ones then one needs to have life insurance. Having life insurance will ensure that in case of one’s death financial protection will be provided to loved one’s.

(2) As said the younger you are when you take out life insurance, the lower the premium one will have to pay. Keeping life insurance you are ensuring that your loved ones will benefit in the future but paying a low premium for a long period of time. You are able to shop around for best policy if you are at a younger age.

(3) By taking out life insurance at a younger age you are likely to be in a better physical condition. This would have an impact on premium as a healthy, young person is likely to pay less premium compared to person at high age.

(4) If you make life insurance at an early age then even if you develop an illness in later years that would exclude you from taking out life insurance policy at that point. No one can predict what is going to happen next. Its better to be covered earlier to prevent in near future.

(5) There are various tax benefits associated with life insurance payments. It means that you are obtaining two benefits from life insurance-payments would be tax free and you ensure that family is covered in event of death.

No one would like to place their family in financial crisis. But no one knows what next is in their life. So it is advisable than once an individual has kids one needs to take a life insurance policy so that one won’t need to worry for the basic things which would be coming from insurance provider in death of an individual.


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Wednesday, July 1, 2009

Recovery of World Insurance Market Likely In 2010

As everyone knows current world insurance market is not good. But various studies and researches show that this is just a temporary phase and by 2010 this market will recover. Due to stock markets downfall & gloomy employment prospects growth in life insurance premiums, the industry’s biggest earner is expected to turn negative this year.

But as economy recovers, there would be higher life premiums and better investment results. This growth will not only have an impact on profitability but also shareholders capital and ability to raise the money.
The recession in world market is definitely reducing the amount of insurance coverage but the capital shortage will support upward movement of prices.

But the demand for other types of insurance is going to be flat. Also profitability in other insurances is likely to increase due to stronger investment policies. The demand for additional cover would increase in 2010 along with economy.

According to a report global life insurance premiums fell by 3.5% while non-life insurances decreased to 0.8%. As from report we can get to know that insurance sector was hit hardest in financial crisis period with financial loss to developed countries like Britain, France, and Italy etc.

But in developing countries life premium growth was accelerated by an average of 14.8%. So in general we can say that the insurance sector crisis affected developed countries much more than developing countries making it prove that developing countries stand out a chance even in tough financial crisis all over the world.

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