For a head of the family, there is nothing more important than making sure that his/her family is properly cared for even after his/her death. A life insurance policy is one way of giving the head of the family assurance that even after his/her death, the remaining family members will receive financial assistance to aid them in living their lives without the head of the family. There are a lot of things to consider when a person is planning to purchase a life insurance policy for the first time. Here are some of them.
The Type of Life Insurance. There are two type of life insurance policy. One is the whole life insurance where the insurance holder can have an insurance policy as well as an opportunity for an investment option. Also known as seguros de vida universal or the universal life insurance policy where there is no expiration date so the policy holder is covered by insurance from the time he buys the insurance till the date he dies. One advantage of this policy is that the insurance holder may get an amount even if he/she is still alive. This is one good way of an investment. One large part of the money goes in covering the actual cost of the giving the insurance to the policy holder and the rest of the amount goes to the investment part.
The second type of insurance is the term life insurance where the policy holder is provided with insurance coverage for a fixed time period. The term is the amount of time the policy will provide insurance. The term can range from 1 year, 5, 10, 15, 20, 25, and 30 year periods. The main advantage of this policy is that the insurance rates will be much cheaper and affordable when compared to the universal policy. The disadvantage of this policy is that the beneficiaries of the policy holder will get the benefit only after the policy holder dies. If the policy holder outlives the term then the insurance company will not cover the insurance holder.
The Amount of Coverage. Coverage is defined as the actual amount of money that the beneficiaries of the policy holder will get after his/her death. Depending on the amount, the coverage should be enough to cover the immediate cost, the recurring expenses and the future expenses that the remaining family members will incur after the death of the policy holder. There is a common practice of getting a coverage amount which is as much as ten times the annual salary of the policy holder.
The Underwriting process. A person who wants to purchase a life insurance policy will have to go through the process of going through the underwriting process. Here one will have to filling up the form and take up the medical test to prove that he/she is in a good health condition. The health of a person is very important for a person to get affordable insurance rates. Anyone who is not in a good health condition may have their insurance denied. For smokers there is a smokers term life insurance exam policy but the insurance rates for this is very high.
A person suffering from any kind of illness may be denied a life insurance policy through the traditional underwriting process. But that was matters of the past, now anyone with any kind illness too can be covered by insurance by buying the no medical life insurance policy or the seguros de vida sin examen medico. In this type of policy one does not have to take up the medical test to get life insurance coverage.
There are a lot of things you need to consider when buying an insurance policy. So you have to research well and then buy a policy that suits your needs.
The Type of Life Insurance. There are two type of life insurance policy. One is the whole life insurance where the insurance holder can have an insurance policy as well as an opportunity for an investment option. Also known as seguros de vida universal or the universal life insurance policy where there is no expiration date so the policy holder is covered by insurance from the time he buys the insurance till the date he dies. One advantage of this policy is that the insurance holder may get an amount even if he/she is still alive. This is one good way of an investment. One large part of the money goes in covering the actual cost of the giving the insurance to the policy holder and the rest of the amount goes to the investment part.
The second type of insurance is the term life insurance where the policy holder is provided with insurance coverage for a fixed time period. The term is the amount of time the policy will provide insurance. The term can range from 1 year, 5, 10, 15, 20, 25, and 30 year periods. The main advantage of this policy is that the insurance rates will be much cheaper and affordable when compared to the universal policy. The disadvantage of this policy is that the beneficiaries of the policy holder will get the benefit only after the policy holder dies. If the policy holder outlives the term then the insurance company will not cover the insurance holder.
The Amount of Coverage. Coverage is defined as the actual amount of money that the beneficiaries of the policy holder will get after his/her death. Depending on the amount, the coverage should be enough to cover the immediate cost, the recurring expenses and the future expenses that the remaining family members will incur after the death of the policy holder. There is a common practice of getting a coverage amount which is as much as ten times the annual salary of the policy holder.
The Underwriting process. A person who wants to purchase a life insurance policy will have to go through the process of going through the underwriting process. Here one will have to filling up the form and take up the medical test to prove that he/she is in a good health condition. The health of a person is very important for a person to get affordable insurance rates. Anyone who is not in a good health condition may have their insurance denied. For smokers there is a smokers term life insurance exam policy but the insurance rates for this is very high.
A person suffering from any kind of illness may be denied a life insurance policy through the traditional underwriting process. But that was matters of the past, now anyone with any kind illness too can be covered by insurance by buying the no medical life insurance policy or the seguros de vida sin examen medico. In this type of policy one does not have to take up the medical test to get life insurance coverage.
There are a lot of things you need to consider when buying an insurance policy. So you have to research well and then buy a policy that suits your needs.
About the Author:
Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on life insurance quotes online and cheap life insurance rates for smokers, visit his site today.
