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Why You Need Income Protection Insurance

Why You Need Income Protection Insurance

What Is Income Protection Insurance?

If something were to happen to you that prevented you from working – whether it was due to illness or an accident – income protection insurance would mean you would receive regular payments instead of losing your income through not being able to work. This kind of insurance, which was also known as permanent health insurance is available in Ireland and the United Kingdom.

As far as this insurance is concerned, the following is how “inability to perform work duties” is characterized:

If the policy holder is self employed, and is unable to perform any of the work required and is also unable to do any other job because of incapacitation due to an accident or illness, this will be considered as “inability to perform work duties”.

If the policy holder is trained or educated in a particular field, or to perform specific duties and is unable to carry these out because an accident or illness has rendered them physically incapable, this would fit in with the policy terms and the policy holder would be entitled to a payout.

Being unable to perform any kind of work that requires certain duties due to an accident or illness, as well as being unable to perform any normal day to day activity (for example, washing, eating, shopping, cooking, dressing etc.) due to incapacitation caused by an accident or illness would also be considered to meet the terms of the policy.

It is important to check to make sure that the policy actually states the various functions as well as the definitions of each function regarding these cases. Taking the time to go through all definitions as well as what is included in the policy and what is exempt will give you peace of mind that you have the full cover you need.

Income protection insurance usually comes with a limit for payments (generally around 70% of gross earnings of the person), and this is something to consider when looking at the terms of the policy. Although 70% is common, it could be less for those who have very high income.

If the policy holder is entitled to other state benefits, or payouts from other insurance policies, the maximum limit of the income protection insurance payout could be reduced accordingly, and it is vital to check if this is the case for you.

The cost of the policy can be significantly affected by the time gap between the moment when the claim is made and the time at which the payments begin. This is known as the deferred period.

Advantages Of Income Protection Insurance

Income Protection Insurance offers far more benefits than those offered by other personal insurances, and includes cover for various challenges and incidents such as illness and accidents.

Following a claim, the payments from an Income Protection Insurance policy continue until the policy holder recovers, retires or dies. If the policy term ceases to exist before that event, it will end then.

Payments from this insurance policy are tax free and are usually paid on a weekly or monthly basis.…

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The Facts About Life Insurance Policy

The Facts About Life Insurance Policy

There are a lot of people who do not understand the importance of having a life insurance policy for themselves or those that they love. Of course, the first question you should ask when looking at this is what a life insurance policy actually is? There are a number of different types of life insurance policies and you need to choose the one that best suits your situation. There are a few facts you should know about to ensure that you make the best choice.

What Is A Life Insurance Term Policy?

One of the types of life insurance policies is the life insurance term policy which gives coverage for a set amount of years at a special rate. This policy will usually have coverage for death and nothing else. There are three parts to the life insurance policy that you need to know about and they are the length of cover, the premium you have to pay and the face amount of the insurance.

What Is Permanent Life Insurance Coverage?

This coverage relates to any cover that will remain in effect until the policy has been paid out, matures or if the policy owner fails to pay the premiums for the policy. This type of policy cannot be cancelled by the provider unless they can prove fraud by the person insured and the cancellation must happen within a set timeframe as set out by law. When you have a permanent life insurance policy you will build up the value of the policy which reduces the risks for the insurance company and allows you to borrow from the value of the policy or surrender the policy to claim the surrender value.

Knowing these basics can help you choose a policy, but you also need to know that policies are divided into permanent and temporary classes. These life insurance classes may also be divided into further sub-classes such as term, universal, endowment, variable universal and whole life variable. The universal life, endowment and whole life policies are generally part of the permanent life insurance class.

Once you have a life insurance policy it is also possible for you to add on additional coverage such as accidental death cover. Of course, these additional covers can only be added onto certain types of policies due to the fact that they generally double the face amount of the policy should the insured die of that additional cause. This is often called double indemnity coverage and there are some insurance companies that even offer triple indemnity coverage.

Before you take out a life insurance policy it is important that you know what this is and what it will do should something happen to you. You need to make an educated decision with these policies as they can affect your loved ones and their financial situation once you are gone. Choosing a policy should not only be what is good for you, but also what will help them in the future.…

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The Differences Between Whole And Term Life Insurance

The Differences Between Whole And Term Life Insurance

If you are looking at life insurance as protection for your loved ones after you pass then you need to know what the differences are between whole and term life insurance. You need to understand what the full breakdown is for each type of insurance as well as how the total costs will differ. Each of these policies will have benefits as well as drawbacks that you need to know about and compare because the point of getting cover is to find the policy that is most advantages to you.

The primary difference between these two types of cover is that whole life insurance covers the entire span of the life of the person who has been insured. This means that it does not matter if the insured dies at the age of 40 or at the age of 90. However, term life insurance will only pay out the cover amount if the insured person passes away during a pre-defined period of time such as between the ages of 50 to 75.

Term life insurance is generally the cheaper alternative because of the time frame that they work in and this makes it appealing to people who still have other costs that they need to pay off. Due to the scope of whole life insurance it will be more expensive and have a higher premium. The higher premium is due to the fact that many insurance companies invest the money to cover the overall costs of the whole term insurance policy.

The element of investment that comes with whole life insurance offers more of a guarantee that there will be funds available to pay the family when the insured passes. Some of the investment done might be used to cover the rising costs of the high premiums. People over the age of 60 often find that whole life insurance premiums can be very expensive and they can invest part of the premium into the stock market or bonds to create sufficient money.

When you are trying to decide which of these policies you should choose you need to look at the type of insurance you get, what is required by the insurance company and what best suits your situation or the situation of the insured. The whole life insurance policy are often taken out to supply loved ones with a cash amount when the insurer passes and this money is often paid outside of the estate of the deceased. Term life insurance is the more affordable of the two policies and offers protection for families within a set time frame.

Of course, there are many other points that you would need to look at before you take out either of these policies. You will have to consider the total costs of the insurance and what other benefits that insurance company can offer you. You should never rush into taking out a life insurance policy because the result could affect the financial situation of your loved ones after you have passed.…

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Life Insurance: What You Need To Know

Life Insurance: What You Need To Know

The term life insurance refers to a contract between two parties; the insurance service provider and the insured who is the policy owner. Upon death of the latter party or on maturity of the policy, the insurance company will pay an already set amount agreed on, to the insured individual. The agreement between both parties is a legal contract that has its terms and conditions detailed in it.

As for the insured, the subject is required to pay monthly, half yearly, or annual payments referred to as premiums to the service provider. Even though the policy owner title belongs to the one making these payments, he or she may not necessarily have to be the beneficiary of the lump sum amount issued by the company. In most cases, the beneficiary is the insurer, the nominee who gets the amount upon death of the policy owner.

The assured amount is however limited to natural death causes such as terminal or critical illness, or death due to old age which are the most common cases. This is meant to curb unfair benefits to individuals thinking along fraudulent lines, for instance individuals trying to purchase policies for people expected to die soon. To limit these undue or unrightfully sourced claims, situations such as war, fraud, suicide, death under suspicious conditions and terrorism are excluded as liabilities.

There are two main reasons why these policies are bought by forward looking individuals. The first is for protection and is referred to as term insurance, and the other is an investment or commonly known as ULIPs. The term life policies basically provide financial protection to the beneficiaries especially if the insured was the sole provider. However, life insurance premiums may also be claimed for tax benefits by the policy holder doubling up as a wise investment for those seeking to cushion their future. There are a number of life insurance policies available that one can choose from. They consist of the universal life coverage, endowments, whole life coverage, accidental deaths and limited pay.

The universal life insurance policy ranks as the most flexible product in insurance. The policy usually has a great flexibility range in regards to premium payments hence posing greater investment opportunities. On the flip side, whole life insurance is the most popular a factor that can be attributed to its simplistic nature. The policy consists of a guaranteed and fixed premium which is convenient to most. Endowments on the other hand, are rare and unique in nature. The tailored cash values are paid out to the policy owner after a number of set years regardless of whether he lives or not. They are however known to be the most expensive.

Limited pay life insurance policies are also ideal and convenient. The permanent policies are designed to exist for a certain period say 20 or 30 years until age 65. Accidental death policies remain exclusively to accidents which is unlikely and cheaper compared to the rest. The bottom line is that you have a wide range of insurance products to choose from hence no reason why not to secure your future. Another great product has to be the best life insurance policies which are those that basically come with a guarantee that is usually accompanied by handsome and decent premium rates. They are preferred by many as they are known to produce great returns from their growing cash values.…

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Insurance That Goes Beyond Health And Automobiles

Insurance That Goes Beyond Health And Automobiles

When it comes to protecting yourself or your family, you probably think about health insurance and car insurance almost immediately. However, it is important to note that there are other kinds of insurance out there as well. These policies help protect you from loss as well, so they should not be discounted.

If you own a home, it is important to get an insurance policy to protect the dwelling and all of your possessions. For example, if there is a tornado and a portion of your structure is destroyed, homeowners insurance covers the repairs. If you have a mortgage on your home, you probably do not have a choice when it comes to this type of insurance; it is required as part of your agreement. After all, the mortgage company wants to make sure you continue to pay them, and a great loss on your part would compromise that ability.

The lender should allow you to choose what company you ultimately decide to go with. However, they will probably dictate how much insurance you should hold on your property. If the house is destroyed for some reason, they still get their money. So, while they may be a bit flexible in some ways, they are generally unwavering about the fact that you have to have insurance on your home. There are those lenders that will state which homeowners company you must contact. When this happens, it is because the lender and the insurer generally have some type of deal. You usually do not want to agree to this type of situation. Look for a different lender, one that lets you choose your own company.

As you search for the right provider, look for certain things. First, you want to ensure that they cover the types of issues that generally occur where you live. Also, keep in mind that you have to pay whatever deductible is on your policy. Usually, you have to add on flood insurance separately. Some homes may not need this coverage, while it may be necessary in other areas. Evaluate your land carefully to determine what you need. Also, you will pay less money if your deductible is higher, but make sure you have the money for it if the time comes.

Are you an athlete? Sports insurance is important in your situation. If you are hurt while playing, and you cannot get back on the field, this insurance can help. For example, professional athletes often have this coverage in case of a devastating injury that ends their season early. NASCAR drivers also look to get this insurance as well.

Athletes are not the only ones who take out insurance policies for their jobs. It is not unusual to find executives in the corporate world who take out something known as Key Person Insurance. This policy covers a team member, or the whole team, in the event of a disability. The person or people covered are generally very valuable to the organization as a whole, so if something happens to that person, the insurance pays for losses so the company can get back on track.…

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An Insight On Types Of Insurance

An Insight On Types Of Insurance

Insurance is a financial protection taken to shield individuals from financial losses related to different situations. It works under the principle of sharing losses. Those who wish to take up an insurance cover will have to agree to make fixed payments (premiums) to the insurer (the company offering the insurance cover). The insurer will in turn offer a contract (insurance policy) to the client.

Insurance is available in various forms; for instance, life insurance (L.I) is taken to offer financial aid to a family in case of the demise of its income earner. The health insurance (H.I) aid with payment of medical bills while the fire insurance partly or fully pays for loss of home or property destroyed by fire. These are just a few of the common types of insurance option that people take; nevertheless, insurance is also valid from other forms of possible financial losses.

The company will be legally obligated to pay the policyholder some amount of money known as a claim or benefit. How the company makes sure the insured will get the money is by investing in government securities, bonds, stocks, mortgages, or other income generating ventures. Payment is given based on the premiums collected and the incomes earned for the investments done on the premiums.

How insurance works is, the policyholder trades a particular small loss (the premium) to get a guarantee of payments in the event of a bigger loss. This gives the policyholder room to do business, own and drive a car, own property or a home without worrying of the financial hiccups that later on might arise.

Life Insurance exists in three types namely the Term life insurance, the Whole life insurance, and the Endowment life insurance. People can opt to take any one of the three types; however, most companies that offer L.I combine the 3 to form a singular insurance policy.

  • Term L.I avails claims in situations of the demise of the insured within the covered period as stipulated in the policy.
  • Whole L.I is a lifetime insurance cover for the policyholder.
  • Endowment L.I pays only the face value of the death of the policyholder.

Note that the Endowment L.I is commonly taken as a way of saving money with most policyholders opting for it to be able to avail some financial support for the education or upkeep of their children.

The current rise in health care has greatly pushed for better and adequate health insurance policies. Individuals without a health insurance policy risk dealing with huge financial burdens in case they are serious ill or in a serious accident. Health Insurance will pay partly or fully for the costs of medicines, lab tests, surgery, hospitalization, and other medical care expenses.

H.I is sold as a group or individual policies. Individual H.I is common in a group plan within a person’s work place, and the plan may include the dependents of the policyholder. Individual coverage has slightly higher administrative costs and related expenses, which makes it a bit more expensive than group health insurance.

Health maintenance organizations, various employers, medical service plans, and insurance companies offer individual health insurance. Most companies offering health insurance policies also offer cash benefits (a fixed amount of money medical expenses incurred in during the hospitalization period) to the policyholder.

In some cases, the benefits may not cover the full medical bill, so the policyholder is expected to foot the rest. Individual health insurers offer 4 types of H.I each having its own benefits coverage. The four types are:

  1. The Hospital Expense Insurance
  2. The Outpatient Expense Insurance
  3. The Surgical Expense Insurance
  4. The Major Medical Expense Insurance
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