Life Insurance
What is Waiver of Premium Insurance Rider?
November 15, 2010 | Author admin
Most people are aware of the advantages and take out some or other form of insurance policy depending on their needs. The most basic situation for which a life insurance policy is generally taken is loss of income due to death of bread winner of the family. But many overlook the possibility of a worse situation arising due to permanent disability that could make regular premium payments difficult and result in the termination of the insurance policy.
Definition – The situation is easily remedied by opting for a Waiver of Premium Insurance Rider that can be easily attached to almost any insurance policy. According to the rider, an insured can claim relief from paying future premiums in case he/she becomes permanently disabled or is unable to earn a living due to disability during the term of the policy and the disability lasts for at least 6 months. With this rider, the insured can continue to enjoy the benefits of the base policy without paying any more premiums till the time the disability lasts. Once the insured recovers, he can start paying premium again.
Benefits and Restrictions – The best part of the rider is that since it attaches only to the security part of the total insurance taken, the extra premium to be paid is quite minimal. The rider can be especially useful in case if the premium payments are quite high and will ensure that the policy continues even in case of debilitating illness or accident. To be able to claim premium waiver, the insured must prove that they have been suffering from the disability for atleast 6 months or any other minimum period as mentioned in their rider terms. Also, the rider benefits are available only until a certain age, generally 60 or 65 years. Post the maximum age limit, the insured cannot opt for this rider. The rider is valid only till the term of policy. Once the policy reached term, the rider is terminated. Thus it is beneficial to opt for the rider right at the time of taking out an insurance policy to safeguard your financial investment planning objective.
Disability – Disability definition as per the waiver of premium rider specifies that the insured must be so disabled that he / she is unable to pursue the profession they were engaged in when they became disabled. It varies from one insurance India company to another whether they consider the person disabled to carry out their particular occupation or unable to pursue any occupation in general. It is thus advisable to expressly clarify the point with the insurance company and read related documents carefully before opting for the rider.
All insurers clearly mention the conditions under which the insured will be considered disabled and eligible for the waiver of premium rider. Where some only accept permanent and irrecoverable disability, others may consider the insured disabled even if they are able to engage in work in some cases. Loss of limbs like hands, legs and eyes generally qualify a person for the rider benefit. Besides, a person who suddenly loses his ability to speak or hear due to illness or accident also sometimes qualifies.
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Life Insurance – Getting it Right
November 8, 2010 | Author admin
Life insurance is sought by people for a variety of reasons. You may feel that because you’re getting on in life and feel that life insurance could give you the security of knowing your family will be taken care of after your passing. Another popular reason is that you are purchasing a home or thinking about starting a family. Whether life insurance is a luxury or a necessity in your case, you are probably asking yourself how do I pick the best life insurance scheme for me?
With so many different life insurance companies out there, finding the right life insurance policy for your needs can seem like a nightmare. Where should you begin? Some life insurance policies look good but end up costing more than you can afford when calculated on a day to day basis, and you may find that if you cancel a life insurance scheme you lose all the money you’ve paid into it so far. Some life insurance policies are flexible, allowing you to adjust them to suit your changing needs and budget, whereas others which don’t give you that advantage may offer higher returns. Remember that life insurance is not just there in case you die – most life insurance schemes also pay out in the event of serious illness or disability, meaning that you’ll have extra money to help you get by if you find yourself struggling.
As some people can not guarantee that they will always be earning an income, the idea of getting a life insurance policy can be very intimidating. If this is your fear then find a company that will allow it’s policy holders to take a contribution break of up to three years to cover you in preiods where you are unemployed or are unable to contribute for other difficulties. If you are considering taking out a similar life insurance policy your bank may be a good source of free financial advice. This type of policy won’t have such a large payout, but it offers the security in the short term. Life insurance may not be out of your reach even if you are struggling financially. Policies are available where your initial contributions are very low, like a step rate plan. The disadvantage of policies like this is you may be required to pay contributions for several years before your policy is valid and offers benefits. If you have been turned down in the past for life insurance due to illness, be aware that some life insurance companies specialize in offering solutions for people in this type of situation. These types of policies may be customized to your needs and income, while being mindful to the specifics of your present condition. So no matter what your situation may be, life insurance can be available to anyone. It’s never too late to consider taking out a life insurance policy. Always shop around and pay particular attention to the fine print. You’ll soon see that there is a policy out there made just for you.
Should We Insure Both of Us on Our New Term Life Insurance Policy?
November 6, 2010 | Author admin
Is it important for both of us to be insured on the new term life insurance policy we are going to get? It is certainly something to consider because if either one of us were to die there will be financial implications for the family and in particular for continuing to raise our children as best as possible.
Everything You Want to Know About Life Insurance Quotes
November 6, 2010 | Author admin
It is not mandatory to get insurance, but the price of not having an insurance cover is very high. This is the reason why most of the people in today’s world are insured. In US, the life insurance policy provides financial coverage to the insurer’s family during the death of the policy holder. The policy holder also gets enough security against any income loss or such mishaps through these insurance policies. To purchase an insurance policy, one must know about the insurance quotes offered by various companies.
