Most people feel a strong need to ensure that their dependents are well taken care of should they pass away or become incapacitated. A solid life insurance policy can take care of these concerns should the worst case scenario ever happen and life insurance has become an integral part of most folks long term life planning.
As with most service industries these day the life insurance service provider industry is heavily populated and making the choice of which insurer to use is often the hardest part of the process. Horror tales abound of these companies defaulting on their policies or going belly up and leaving their clients out of pocket and, in many cases, with little time to make up the value of the previous policy.
This is why it is imperative that good, informed calls are made when choosing life insurance. A life policy is just that – a life long commitment. In many cases it is the longest lasting financial commitment many people ever make so the right choice at the start of the process is crucial. Here are a couple of pointers to assist with making that weighty decision.
One of the most effective ways of shopping for life insurance
Life insurance is designed to replace your income stream should you die, so that your dependents will be able to maintain a normal standard of living. Life insurance is not, I repeat not designed to fund your retirement or pay your child’s college education. In fact, the single worst reason to buy life insurance is as an investment.
Now, I know your friendly neighborhood insurance agent will try to convince you otherwise. He’ll show you lovely projection tables with lots of zeros to show how your “cash value” will grow. He’ll promise you the benefits of protection and savings, He’ll sweet talk you into believing it’s “really the best thing you can do for yourself and your family”.
Don’t believe it! First of all, those lovely projections are just that – projections. They are based on assumptions of investment returns – not guarantees. And if you look a little closer, you’ll see that those beautiful zeros in your cash value account don’t start showing up until many years (like10) after you’ve been paying premiums. Sure you may have built up a cash value account worth $190,000 but that’s after you’ve shelled out $156,000 in premiums! That’s about a 2 percent average annual
Recently, I learned just how difficult applying for private health insurance can be in the United States. I was going off my group health insurance and needed private coverage. Through the assistance of my insurance agent, I completed the initial online application in less than an hour.
That was the easy part.
A week after completing the application, I got a follow up call to my application from the “medical department” of the company. I was told this was to verify some of the information on my application.
And here’s where things got a bit rough.
The woman who interviewed me wanted VERY detailed information on medical claims. Since the specific details she wanted were in my doctor’s medical records, not at home, I was unprepared for her questions. I made every effort to be helpful, but the call rapidly became an unfriendly interrogation.
For almost an hour, I was asked the same questions over and over until I felt like shouting, “Asked and answered!” For most of them I simply replied “I don’t know.” Eventually I asked her to contact my doctors. When she finally did, they checked my records and answered her questions.
By the time I hung up the phone, I felt like
Life insurance has been a useful tax planning tool for quite some time and not unjustifiably so. With so many options in life insurance available, you can not only save immediate tax but also plan and save for long term goals. There are so many benefits attached; life cover, investments, savings, child education planning, life stage planning and even retirement planning. Life insurance allows planning for long term goals in a tax-effective manner. The benefit of tax deduction is available for premium paid on life insurance policies under Section 80C of the Income Tax Act.
How much benefit Under Section 80 C the maximum benefit that one can get is up to Rs 1 Lac from the taxable income from investments made in specified instruments, life insurance being one of them. So life insurance premium up to a maximum of Rs 1Lac can be exempt from tax in case investments towards none of the other specified instruments are being considered.
Who can benefit There are some basic conditions as to who is eligible for tax benefit on insurance premium. To begin with it is the proposer who benefits if he/she buys life insurance or health insurance for self spouse or. Paying life
When you are carrying a child, but are not insured you should investigate all your insurance choices before looking at non insurance alternatives. health care insurance may be available through direct pay family policies, group policies, programs offered by local state or the federal government. However, in some cases you may find that all of these doors are closed and non insurance alternatives are the only way to lower your costs.
When you are in need of medical insurance for your pregnancy, you should exhaust all of your options before giving up because pregnancy expenses are very high today. Costs in the hospital can be $10,000 to $25,000. They can be higher. The cost is dependent on how much care costs your area and on whether or not you have complications.
Medical insurance carriers do not like to insure women who are carrying a child because they assume that will be given much less in premiums over the course of the first twelve months of health care insurance than they will spend out in benefits. For this reason you will likely only find health care insurance if there is a legal mandate in place that forces the health care insurance company to