Guide to Life Insurance

Here is a useful guide to life insurance. Simply put, a life insurance policy provides a lump sum payment upon death of the policy holder.

In exchange for regular premiums, a life insurance company will insure your life so that when you die, the policy should pay out to protect your dependants from the extra pain of financial hardship.

This is particularly important when buying a house, or when you or your family takes on a large, long-term financial commitment. In the event of death, for example, the payment from a life insurance policy can be used to pay off a mortgage.

Policies can be arranged on either a single or joint life basis. Depending on the type of policy you choose, your insurer will pay either a lump sum or a regular income which you could use towards meeting any outstanding debts and trying to ensure your family is able to maintain its standard of living.

How much they receive depends upon the 'guaranteed sum assured', the amount for which your life is insured.

Many people first come across life insurance when they take out a mortgage, as lenders often insist on it to make sure the loan is repaid if you should die still owing them money.

However in some circumstances, only having enough life insurance to repay the mortgage is insufficient to fully protect dependants. If you have a partner who would suffer financially if you were to die or if you have young children who depend on you, then life insurance is very important.

Life insurance can be used in many ways, not just to protect a young family or repay a mortgage. It can be used to pay Inheritance Tax or protect business against the loss of a key individual.

You can increase or decrease your cover at any time, add another life onto the policy and add other elements to the plan such as critical illness cover, income protection or mortgage protection.

If your circumstances change you can increase your cover to make sure your family is protected.

Life insurance creates an estate for your heirs. After your debts and expenses are paid, there may not be much left over for your family but life insurance can automatically provide assets for them after your death.

There are several kinds of policies that may be available to you, if you are healthy enough.

Smoking is detrimental to health and is a leading cause of life threatening illnesses. As a result smokers pay higher premiums than non-smokers as the risk of them dying early is greater. I f you smoke and do not declare the fact, you run the risk of invalidating your policy if you have to make a claim.

It is a known fact that women tend to live longer than men. A female who insures herself using a 'level-term' policy is likely to have lower premiums than a male. This is based on the fact that females live longer and are less likely to claim during the period insured.

Age is a factor in the successful application for a life policy. Most insurers have an age bracket of seventy-five for the provision of insurance. If you are over the age of seventy-five it is unlikely you will be able to find cover.

Finally, the older you are the greater the risk to the insurance provider so the higher your premium will be.

You may freely reprint this article provided the author's biography remains intact:

About The Author
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

---

Better Links Directory

What Is Homeowners Insurance Coverage?

Before attempting to find the best homeowners insurance coverage you... Read More

Underwriting Life Insurance For Diabetics and Diabetic Life Insurance Information

Life Insurance Companies differ in their "underwriting philosophy" when it... Read More

Discount Auto Insurance - Get Low Rates And Superior Coverage

Auto insurance rates can be quite expensive. If you are... Read More

Bankers Long Term Care Insurance

How many times have you seen people whose life was... Read More

Why Bother With Farmers Auto Insurance?

Farmers auto insurance is a very large insurance company that... Read More

Life Insurance Whole Life or Term Life - Find Affordable Life Insurance

Life insurance, whether you need term or whole life, can... Read More

Natures Fury - Time to Check Your Insurance

The communities of Exmouth and Moora in Western Australia don't... Read More

The Life Insurance Policy and What You Need to Know Before You Buy

Are you looking to buy a life insurance policy? Well,... Read More

How Is Your Auto Insurance Policy Price Determined?

The average auto insurance policy price is derived from a... Read More

How Do I Lower My Auto Insurance Rates?

Since there are many factors that go into determining your... Read More

What Is Permanent Life Insurance?

Unlike term life insurance, permanent insurance policies such as universal... Read More

Cheap Health Insurance - Health Insurance for The Self Employed

If you're self employed, you may think of health insurance... Read More

Auto Insurance for Young Drivers

The biggest worry of most parents today is their children... Read More

Insurance Glossary of Terms

Assured - Those insured under the terms of an insurance... Read More

Online Insurance: The End of the High Street Broker?

When I was a lad, some 25 years ago, the... Read More

Theres No Problem Getting Texas Auto Insurance in Texas

Everything is big in Texas and so it is with... Read More

Cure The Insurance Blues By Lowering The Cost of Your Premiums

Does the current amount that you pay on your insurance... Read More

Do You Pay Too Much For Your Car Insurance?

Do the premiums just seem to get higher and higher... Read More

Independent Insurance Agents Unite! Insurance and Financial Discussion Forums are all the Rage

The online discussion forum has emerged as the medium of... Read More

Life Settlement Overview

A "Life Settlement" is a lump sum settlement paid to... Read More

Outside Pressures On The Typical Insurance Adjuster

Insurance adjusters are not without outside pressures they must deal... Read More

Homeowners Insurance Coverage

When deciding on the appropriate amount of homeowner's insurance coverage... Read More

Are You Running the Risk of an Uninsured Business? Beware & Get Business Insurance

Human life is precarious and so are the activities they... Read More

UK Young Driver Motor Insurance - Build Your Own No Claims Bonus or Insure through Your Parents

For may young drivers, affording the costs of motor insurance... Read More

Filing Homeowners Insurance Claim Forms: What Steps to Take

Filing a homeowners insurance claim can be done with ease... Read More