So you have the understanding that you want to buy Life Insurance. You're married now, or maybe you just had your first baby. Or maybe you just bought a home, which in most cases means you now have a mortgage. It occurred to you that you need to put some protection into place to save guard these things.
How would your family be affected should you no longer be around to provide? Financially, there is a way to help ease that burden. Making sure that a Life Insurance Policy is in place.
Now that this decision is made, you want to understand how an insurance company determine if it will issue a policy. Here is some information on what is happens to get your policy put into place by the insurance company.
At the start, an application is filled out. Then an Underwriter at the insurance company, also referred to as a carrier, evaluates taking you on and needs to determine how much of a risk they are willing to take on by covering you with their insurance policy. They also evaluate the rates and coverage that will be used associated with your policy. Once all of these items have been determined, the policy will be issued, or delivered, by the company's agent to you, the insured.
There are specific parties that are involved in an insurance policy. There is an applicant, the person who applies for insurance coverage by filling out an insurance company's application. The insured is the person whose life will be covered by the insurance. The policy owner is the person who is usually also the applicant. The policy owner is also the person who pays the premium and has all of the ownership rights under this contract. Finally, there is the beneficiary; this is the person or persons who are named by the policy owner to receive the benefits upon the death of the insured. All of this information is relayed via the underwriter so they can start the risk analysis at the insurance company.
When an application is submitted, this is a request by that person that the insurance company issues a policy for them. If the person sends a premium payment with that application it is looked at as an offer from the person to the insurance company. The underwriter that assesses the risk based on the information gathered assigns a Risk Classification. Standard, uninsurable, and substandard are the types of risk classes. These different classes of risk can translate into the part of the calculation used to determine the premium amount. After all of the underwriting requirements are met and satisfied at the insurance company, a policy can be issued.
There is no better time than now to start learning about Life Insurance and how it can enhance your life. It is simple and easy to get a conversation going with an insurance agent that can help you learn and understand what your specific needs are.
Friday, March 27, 2009
Tuesday, October 14, 2008
Why Is there a Need for Life Insurance?
If you are married or if you have children you should really be sure that they are protected by Life Insurance. This is true especially if you are the primary income generator of the household.
Consider a Term Life Insurance policy. It is an affordable option. You can choose from a range of policy terms, for example, 5 years, 10 years, 15 years, 20 years and more. With that said, Life Insurance can be affordable and can provide significant coverage in the event of your death.
There are many important factors to consider if an unexpected loss occurs. How will your funeral costs be paid? Who will pay your leftover medical bills? How will you get by financially during this trying time? This is where a Life Insurance policy provides the benefits you need to keep financial stressors at bay.
The benefits of Term insurance are that you can use it as a vehicle to protect your mortgage. If you died tomorrow and were close to paying off your home’s mortgage with a term life insurance policy this can still can still be achieved by using the proceeds of the insurance policy and paying off part or all of the mortgage balance. This is not something you think of right off the bat about Life Insurance that are important benefits to understand.
With the way the economy is today, and in light of recent events in the financial sector, it is difficult for many average two income families to meet the everyday financial demands of life. Believe me it is effecting everyone across the country. Since this is the current state of affairs, it is so extremely important for families to be protected in case one of those two necessary incomes is lost due to a premature death. It is more important than ever that you do not go unprotected for the sake of your spouse and children, if you have children.
It is important to understand that there are many different insurance products out there. Term Life Insurance does not have any cash value qualities, as some other insurance products do. This does not mean however, you cannot get significant and important coverage from this type of policy. Again, Term Life Insurance proceeds are primarily used to cover financial responsibilities in the unfortunate circumstance of premature death.
Families deserve peace of mind that should you pass away unexpectedly that they are financially protected. There is no reason for families to endure more trauma, in this case in the form of financial troubles, if there is a loss of a family member. It is so easy and affordable to protect your family. Term Life Insurance is so popular for this reason. If you are married and have a family, do not wait a Term Life Insurance policy should be considered right away. To compare life insurance quotes quickly you can log onto to the trusted website www.mybenelife.com.
Understanding Insurance
Almost everyone has had some experience with the practice of purchasing insurance, in one way or another. It may be that you were purchasing a home and the mortgage lender required Homeowners Insurance as a requirement of the loan. It may have been required when you purchased a car. Insurance is a device that allows for the transfer of all or part of a risk from one party to the insurance company. Each person pays a small, certain cost, the PREMIUM, to the insurance company, the INSURER. The INSURER, in turn, draws up a legal contract, the POLICY, between you, the INSURED and them, the INSURER.
Any legal contract, and in this case an insurance contract, needs to have certain parts to it to make it a valid contract. These “parts” are competent parties, a legal purpose, an offer and acceptance and consideration.
By definition, RISK is the chance or uncertainty of loss. For a RISK to be insurable it has to be measurable. PURE RISK is measurable. SPECULATIVE RISK is not. SPECULATIVE RISK. An example of SPECULATIVE RISK is investing in the stock market.
Life Insurance, specifically, is a contract that transfers risk of financial loss associated with premature death from the insured to the insurer. The need to cover the obligations that might be left behind upon death is the reason we need to be sure we are covered by a life insurance policy. The policy proceeds are paid by the insurance company to the beneficiary of the policy.
Any legal contract, and in this case an insurance contract, needs to have certain parts to it to make it a valid contract. These “parts” are competent parties, a legal purpose, an offer and acceptance and consideration.
By definition, RISK is the chance or uncertainty of loss. For a RISK to be insurable it has to be measurable. PURE RISK is measurable. SPECULATIVE RISK is not. SPECULATIVE RISK. An example of SPECULATIVE RISK is investing in the stock market.
Life Insurance, specifically, is a contract that transfers risk of financial loss associated with premature death from the insured to the insurer. The need to cover the obligations that might be left behind upon death is the reason we need to be sure we are covered by a life insurance policy. The policy proceeds are paid by the insurance company to the beneficiary of the policy.
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