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tods5eshoes · Wysłany: Pon 10:25, 21 Mar 2011 Temat postu: choo 6539

Life Insurance B[link widoczny dla zalogowanych]
Lifeinsurance is an agreement between you (the policy owner) and an insurer. Underthe terms of a life insurance policy, the insurer promises to pay a certain sumto a person you [link widoczny dla zalogowanych]se (your beneficiary) upon your death, in exchange for yourpremium payments. Proper life insurance coverage should provide you with peaceof mind, since you know that those you care about will be financially protectedafter you die. The many uses of life insuranceOneof the most common reasons for buying life insurance is to replace the loss ofincome that would occur in the event of your death. When you die and yourpaychecks stop, your family may be left with limited resources. Proceeds from alife insurance policy make cash available to support your family almostimmediately upon your death. Life insurance is also commonly used to pay anydebts that you may leave behind. Life insurance can be used to pay offmortgages, car loans, and credit card debts, leaving other remaining assetsintact for your family. Life insurance proceeds can also be used to pay forfinal expenses and estate taxes. Finally, life insurance can create an estatefor your heirs. How much life insurance do you need? Yourlife insurance needs will depend on a number of factors, including whetheryou're married, the size of your family, the nature of your financialobligations, your career stage, and your goals. For example, when you're young, you may not have a great need for life insurance. However,[link widoczny dla zalogowanych], as you take on moreresponsibilities and your family grows, your need for life insurance increases. Thereare plenty of tools to help you determine how much coverage you should have. Yourbest resource may be a financial professional. At the most b[link widoczny dla zalogowanych] level, theamount of life insurance coverage that you need corresponds directly to youranswers to these questions: What immediate financial expenses (e. g., debt repayment, funeral expenses) would your family face upon your death?
How much of your salary is devoted to current expenses and future needs?
How long would your dependents need support if you were to die tomorrow?
How much money would you want to leave for special situations upon your death, such as funding your children's education, gifts to charities, or an inheritance for your children?
Sinceyour needs will change over time, you'll need to continually re-evaluate yourneed for coverage. How much life insurance can you afford? Howdo you balance the cost of insurance coverage with the amount of coverage thatyour family needs? Just as several variables determine the amount of coveragethat you need, many factors determine the cost of coverage. The type of policythat you choose, the amount of coverage, your age, and your health all play apart. The amount of coverage you can afford is tied to your current andexpected future financial situation, as well. A financial professional orinsurance agent can be invaluable in helping you select the right insuranceplan. What's in a life insurance contract? Alife insurance contract is made up of legal provisions, your application (whichidentifies who you are and your medical declarations), and a policyspecifications page that describes the policy you have selected, including anyoptions and riders that you have purchased in return for an additional premium. Provisionsdescribe the conditions,[link widoczny dla zalogowanych], rights, and obligations of the parties to the contract(e. g., the grace period for payment of premiums, suicide and incontestabilityclauses). Thepolicy specifications page describes the amount to be paid upon your death andthe amount of premiums required to keep the policy in effect. Also stated areany riders and options added to the standard policy. Some riders include thewaiver of premium rider, which allows you to skip premium payments duringperiods of disability; the guaranteed insurability rider, which permits you toraise the amount of your insurance without a further medical exam; and accidentaldeath benefits. Theinsurer may add an endorsement to the policy at the time of issue to amend aprovision of the standard contract. Types of life insurance policiesThetwo basic types of life insurance are term life and permanent (cash value) life. Term policies provide life insurance protection for a specific period of time. If you die during the coverage period, your beneficiary receives the policydeath benefit. If you live to the end of the term, the policy simplyterminates, unless it automatically renews for a new period. Term policies areavailable for periods of 1 to 30 years or more and may, in some cases, berenewed until you reach age 95. Premium payments may be increasing, as withannually renewable 1-year (period) term, or level (equal) for up to 30-yearterm periods. Permanentinsurance policies provide protection for your entire life, provided you paythe premium to keep the policy in force. Premium payments are greater thannecessary to provide the life insurance benefit in the early years of thepolicy, so that a reserve can be accumulated to make up the shortfall inpremiums necessary to provide the insurance in the later years. Should thepolicyowner discontinue the policy,[link widoczny dla zalogowanych], this reserve, known as the cash value, isreturned to the policyowner. Permanent life insurance can be further brokendown into the following b[link widoczny dla zalogowanych] categories: Whole life: You generally make level (equal) premium payments for life. The death benefit and cash value are predetermined and guaranteed. The policyowner's only action after purchase of the policy is to pay the fixed premium.
Universal life: You may pay premiums at any time, in any amount (subject to certain limits), as long as policy expenses and the cost of insurance coverage are met. The amount of insurance coverage can be decreased, and the cash value will grow at a declared interest rate, which may vary over time.
Variable life: As with whole life, you pay a level premium for life. However, the death benefit and cash value fluctuate depending on the performance of investments in what are known as subaccounts. A subaccount is a pool of investor funds professionally managed to pursue a stated investment objective. The policyowner selects the subaccounts in which the cash value should be invested.
Universal variable life: A combination of universal and variable life. You may pay premiums at any time, in any amount (subject to limits), as long as policy expenses and the cost of insurance coverage are met. The amount of insurance coverage can be decreased,[link widoczny dla zalogowanych], and the cash value goes up or down based on the performance of investments in the subaccounts.
Choosing and changing your beneficiariesYoumust name a primary beneficiary to receive the proceeds of your insurancepolicy. Your beneficiary may be a person, corporation, or other legal entity. You may name multiple beneficiaries and specify what percentage of the netdeath benefit each is to receive. If you name your minor child as abeneficiary, be sure to designate an adult as the child's guardian in your will. Generally, you can change your beneficiary at any time. Changing your beneficiary usuallyrequires nothing more than signing a new designation form and sending it toyour insurance company. If you have named someone as an irrevocable (permanent)beneficiary, however, you will need that person's permission to adjust any ofthe policy's provisions. Where can you buy life insurance? Youcan often get insurance coverage from your employer (i. e., through a group lifeinsurance plan offered by your employer) or through an association to which youbelong (which may also offer group life insurance). You can also buy insurancethrough a licensed life insurance agent or broker, or directly from aninsurance company. Anypolicy that you buy is only as good as the company that issues it, soinvestigate the company offering you the insurance. Ratings services, such asA. M. Best, Moody's, and Standard & Poor's, evaluate an insurer's financialstrength. The company offering you coverage should provide you with this information. Written byCollege Savings Plans | 529 College Savings Plan: BeamaLife.Topics related articles：

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