2. Probably all the insurance specialists will tell that getting a life insurance
policy is the proof that the person is creating a solid financial plan. Why is
that? In the following article we will begin by offering few reasons related to
the importance of a life insurance policy.
If you are not at all familiar with this domain, it is very important that you
get proper advice from a person that is ready to work on your benefit,
without having any hidden secondary purposes. What I mean is that you
should contact a life insurance broker who will work on your side, searching
the market, giving you the answers to all your questions and assisting you
in any important life insurance related decision.
You can find a reliable life insurance broker if you ask your friends, family
members or if you simply read about other people’s experiences. People use
discussion forums to write and explain their past experiences and you
should learn from them. To begin with, check out the leading Romanian life
insurance broker at the asigurare de viata website; the web page includes
precious advice and free information.
First of all a life insurance policy replaces income for dependents. In many
families members depend financially on the income that a certain
individual is earning. If that person dies, insurance will replace that
income. I am talking here about parents that have younger kids who are
completely dependable on their mother and father income. But the policy
can be of great help for couples when of the partners dies and the
remaining one is severely affected by the loss of income.
Then, life insurance can pay for the costs associated to your funeral and
burial and can also cover administration costs, debts or medical expenses in
case they are not addressed by the health insurance policy.
3. When you have signed a life insurance policy, it can become an inheritance
when you name certain persons to be the beneficiaries. So, you can choose
to pay the regular premium related to a life insurance policy and thus
assure that your kids or anyone else that you mention as beneficiaries, get
the money remaining after your death.
It is very possible that the beneficiary might be a charity institution and in
this case you can make a more substantial payment compared to the
situation in which you simply donate the cash equivalent of the premiums.
In some cases, the cash gathered through a life insurance policy may be
borrowed by the owner. In this case, we are talking about a source of
savings.
One of the types of life insurance policies existing on the insurance market
is the permanent life insurance policy. This type of policy offers lifelong
insurance protection. In case you die today, the insurer will pay a death
benefit, in the same way you live longer than that. This policy allows you to
save money and this will make premiums to be larger compared to the
other life insurance policy type, the term life insurance.
Permanent life insurance means paying regularly a premium that remains
almost the same over time; this is not true when we are talking about the
amount of money that needs to be paid as a premium of a term life
insurance policy. Every time you renew the term policy, it is very possible
the amount gets larger.
Permanent life insurance policies are different and you can choose between
few types like: whole life, universal life, variable life and variable/universal
life. It is important to realize the difference between the cash value and the
4. face value. The cash value is the sum of money that is available to you while
the face amount is the sum that will be paid when you die.
We are going to talk now about some of the benefits of buying a permanent
policy. First of all, the premium is going to remain the same, no matter your
age or your health status. In the very same time, as stated before, the
permanent life insurance policy is a mean of saving money. You may even
use the cash value to pay the premium.
If something unplanned happens, you are permitted to stop or reduce the
premium. If you choose to borrow money from the insurer you will need to
pay the money back. You will be required to pay as well an interest, as in
any other loan situation.
If you are in the situation of filing an insurance claim, you first need to have
several copies of the death certificate. Then, call the life insurance broker as
he is the most entitled person to help you with it. He will help when it
comes to filling the papers and forms required by the life insurer. If you do
not have a life insurance broker, then you need to contact the insurer
directly. After you submit a legal copy of the death certificate, you will
receive a settlement.
After that you should decide if you want to be given all the money at once,
or you want the money divided in smaller portions, at specified dates in the
calendar. There is also the possibility that the company keeps the money
and pays you an interest on a regular basis. This way the death benefit
remains in their charge and will be passed unto another beneficiary at your
death.
5. There are some circumstances when the life insurance policy needs to be
reviewed. In fact, specialists advise that every person should be doing this
at least once a year. If you have passed through a major life change, then it
is time to call your life insurance broker and perform the necessary changes
in the papers.
You should consider a major event: your marriage or divorce, the birth of a
child, you decide to adopt a child, you become seriously ill, you take on the
financial responsibility of an aging parent, you buy yourself a new home,
you refinance your house, you receive an inheritance.
