Insurance > Life Insurance Scenarios

Life Insurance Scenarios

by: Ivon T. Hughes

Most individuals have some form of insurance, whether it is for their vehicle, home or health. But it is important, however, not to overlook the benefits of life insurance, which pays money to beneficiaries when the insured dies.

HOW LIFE INSURANCE WORKS

Typically, the insured person makes payments into the plan - called premiums - in exchange for a "death benefit," the money that is paid at the time of death. If you are considering purchasing life insurance there are a few potential problems you need to be aware of.

DIFFERENT TYPES OF LIFE INSURANCE POLICIES

There are numerous types of policies you can choose, but life insurance policies generally fall into three categories - protection, long-term savings and estate conservation.

Many people purchase life insurance for the purpose of providing for their dependents in the event of their death, thus protecting your existing stream of income. If you are in the protection category you may want to consider term life insurance, which offers only a death benefit for a specified period of time such as until you retire.

If long term savings is your reason for purchasing insurance, you may consider a cash value policy. With this type of life insurance, your beneficiaries receive a payment upon your death based on the full amount of coverage , not the cash value of the plan. The value of these plans is usually tied to an underlying investment portfolio and that is how funds accumulate.

Another added benefit is that these policies usually allow a holder to borrow from the accumulated funds in the plan without taxes or penalties. Depending on the policy, you can typically withdraw a portion of cash value and not pay it back, or even cancel the policy and receive the money that has been accumulated over the years.

USE LIFE INSURANCE FOR ESTATE PLANNING

Life insurance can also be used as an estate planning tool, especially if your goal is to preserve wealth for future generations. This type of policy covers one or two lives; the cash generated by these plans typically helps your heirs pay estate taxes and provide otherwise.

Now you have to decide how much coverage you need to provide the amount of income your family will need in the event of your death. After all, your goal in purchasing life insurance most likely is to ensure that income continues for those who are now dependent upon your income.

WHO NEEDS LIFE INSURANCE?

It also is important not to ignore the need for life insurance protection in a single or dual income family. The death of either spouse could create a financial strain on your family.

About The Author

Ivon T. Hughes of The Hughes Trustco Group is a licensed Insurance Broker. Author of The Life Insurance Handbook. Get a FREE Copy TODAY!

Email: info@trustco.ca

Web: http://www.hughestrustco.com

How To Change Auto Insurance Companies

How To Change Auto Insurance Companies

by: Matt McWilliams

Changing Auto Insurance Companies May be Easier Than you Think!

There are many reasons why you may choose to change your auto insurance coverage to another company. Perhaps you?ve found another company that offers you the same amount of coverage for considerably less money. You might have changed jobs and are eligible for a group discount through another insurer, or maybe you?re unhappy with the service that your present company provides. With the growth of the internet and quote comparison sites, investigating your options has never been easier!

Why change to a new Auto insurance carrier?

You need to regularly review your auto insurance coverage to make sure that you are receiving the best insurance value for your money. You will discover that it pays to shop around. In some states, premiums for identical policies vary widely among different auto insurance companies. The...

How To Change Auto Insurance Companies

Insurance > How To Change Auto Insurance Companies

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by: Auto Insurance Spot

A great deal is at stake when choosing an auto insurance

carrier. In addition to the financial considerations,

there are issues such as reliability, quality of service,

and integrity. Luckily, there are certain steps you can

follow to ensure that you select an auto insurance company

that will meet your needs.

When choosing an insurance carrier, reputation carries a

great deal of weight. For instance, Allstate, Nationwide,

and State Farm are well-known companies that have managed

to hold onto some clients for years. For additional

guidance, you can consult your state's department of

insurance website. The website might offer consumer

complaint ratios which indicate exactly how many complaints

an auto insurance company has received for every 1,000

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Avoiding Disaster: Choosing the Right Auto Insurance Company

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Enduring the difficulties of workplace stress can be more destructive than...

Supplemental Health Insurance: Changing Workplace, Changing World

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How To Change Auto Insurance Companies

How To Change Auto Insurance Companies

by: Matt McWilliams

Changing Auto Insurance Companies May be Easier Than you Think!

Why change to a new Auto insurance carrier?

How To Change Auto Insurance Companies

Insurance > How To Change Auto Insurance Companies

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by: Angelo G. Faraci

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New York Scaffold Law Protects New York Construction Workers

Insurance > New York Scaffold Law Protects New York Construction Workers

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by: Derek Gardner

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Check several insurance companies. Don?t fall for the headline that says they got the best insurance deal in town. Find out for yourself by shopping around. It would be to your advantage to compare at least 3 quotes.

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Check insurance costs for the car you intend to buy....

How Much Can You Save On Your Car Insurance?

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by: Maricon Williams

Choosing and purchasing a bike is no easy matter. You will be first entangled to lots of choice making it harder for you to choose. There are a lot of influences from persons close to you as well as from a pool of authority people. Each of them is offering a good bike but how are you to choose?

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Trepidation in Choosing a BIKE

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Critical Illness Insurance And Life Insurance Cover For Better And For Worse.

by: Rachel Lane

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Critical Illness Insurance And Life Insurance Cover For Better And For Worse.

Insurance > Critical Illness Insurance And Life Insurance Cover For Better And For Worse.