SmartIncomeProtection(SIP) offers an obligation free service to compare insurance quotes from several Australian insurance providers primarily for income protection, life insurance, health and trades insurance.
The post An Overview of Personal Life Cover appeared first on Smart Income Protection. Introduction A personal life cover is defined as a contract with an insurance company where in exchange for premium payments, the insurance company offers a lump-sum payment (variously referred to as a death benefit) to named beneficiaries following the insured’s death. Typically, a life cover is chosen based on the goals and needs of the owner- permanent insurance such as universal and whole life provide lifetime coverage while term life cover generally provides protection for a set period of time. Remember, however, that death benefits from all types of personal life cover are generally income-tax free. How it works Permanent insurance provides life-long insurance protection so long as premiums are paid. With few exceptions, once your coverage has been approved, your policy cannot be cancelled by your insurance provider. Also, regardless of your health status, your coverage should remain in force. Despite paying higher initial premiums, permanent insurance is actually less expensive in the long run with most permanent policies being eligible for dividends. If these dividend values are sufficient, you are likely to see your out-of-pocket premium payments end or drastically reduce after several years, yet your coverage should continue for life. Permanent insurance also eliminates the problem of future insurability since it does not expire after a certain period of time. In fact, some policies come with guaranteed purchase options which should allow you to buy additional coverage at certain specified times, regardless of your health. Lastly, permanent insurance builds cash value as the premiums you part with- some of which are guaranteed under many policies- can be used in future for any purposes you deem fit. For instance, you could borrow the equivalent cash value to provide income for your retirement, pay for your children’s education, or put a down payment on a home. Benefits Some of the benefits of permanent life insurance include: 1. Principal protection- The cash value that your permanent insurance policy accumulates is not subject to stock market losses and thus maintains stability over time. This means that what you invest will stay with you. 2. Guaranteed growth- Regardless of how the markets are performing, what you earn should continue to grow at a fixed interest rate. Over time, your policy should build guaranteed cash values and increase with every passing year. It will never decline in value owing to changes in market conditions. 3. Extra income- The cash value of a permanent policy may be converted into an annuity which should provide you with income for life. 4. Cash source with no penalties- In instances where you may need additional financial resources to help fund unforeseen expenses, your policy can be an ideal source to help you meet these needs. Unlike IRAs and 401Ks that penalize you for accessing your funds prior to retirement, a permanent insurance policy should allow you to borrow money for any reason and pay it back at your convenience without having to pay penalties or taxes. Who should get permanent insurance? Permanent insurance is ideal for consumers in need of creating liquidity so as to pay projected federal estate taxes. In addition, those concerned about asset protection, where state laws provide that death benefits and the cash value of insurance policies are not subject to claims by creditors ought to apply. Permanent insurance policies are also attractive since they contain an element of forced savings, especially in an environment of low interest rates. However, administrative and mortality costs of the policy will still be deducted. Another situation where a permanent insurance policy is advocated for is for retired couples who are concerned about spending money because it may deplete the inheritance that they wish to leave for their children. Here, a retired couple could designate a small portion of their available funds in order to buy a permanent policy which should have a no-lapse guarantee. Such a policy would ensure that they enjoy their retirement whilst ensuring that their children receive the intended inheritance. What to look for when comparing quotes from different companies 1. Term of the policy The word ‘term’ denotes the period during which your premiums are fixed- the shorter the term, the lower the premiums. Therefore, do not compare the cost of a 5-year policy to that of a 15-year term because in doing so, you may actually end up buying a more expensive life cover. 2. Your age Various insurance companies compute age differently. If you get varying quotes from various firms, make sure that they have not made a mistake when determining your age since this is one of the most important cost drivers. If your age is wrongly computed, your quote essentially becomes useless because when the cover goes into underwriting, the mistake is likely to be identified and the premium adjusted as it ought to be. 3. Your health Needless to say, your health is very important to life insurance providers. In order to get a quote, one need not undergo a physical examination but it is highly advisable that you be totally honest about your health condition when you get your quote. Moreover, make sure that your chosen agent does not engage in any monkey business by performing the old bait and switch technique i.e. if your agent shows you a 'preferred’ rate when you are not in tip-top shape, that quote is ultimately not going to do you any good and it is in fact a waste of time. The agent will rope you into applying for a cover that he/she knows will end up costing you more than the quote indicates. Many people caught up in this simply just give in and pay the higher rate which is a shame since there are insurance companies that cater to people with pre-existing health conditions. This is why it is so important to be honest with the agent who is helping you and it is also equally important for them to be as honest with you. 4. Financial strength of the company It is quite difficult to establish how strong your insurance provider is going to be when you need them-10,15, or even 20 years from now. However, rating agencies can take some of the guess work out of this process. Due diligence on the client’s part is highly advocated for and the least that you can do is to Google your chosen insurance company to see whether there is any news on them- good or bad. via Tumblr An Overview of Personal Life Cover
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The post An Overview of Personal Life Cover appeared first on Smart Income Protection. Introduction A personal life cover is defined as a contract with an insurance company where in exchange for premium payments, the insurance company offers a lump-sum payment (variously referred to as a death benefit) to named beneficiaries following the insured’s death. Typically, a life cover is chosen based on the goals and needs of the owner- permanent insurance such as universal and whole life provide lifetime coverage while term life cover generally provides protection for a set period of time. Remember, however, that death benefits from all types of personal life cover are generally income-tax free. How it works Permanent insurance provides life-long insurance protection so long as premiums are paid. With few exceptions, once your coverage has been approved, your policy cannot be cancelled by your insurance provider. Also, regardless of your health status, your coverage should remain in force. Despite paying higher initial premiums, permanent insurance is actually less expensive in the long run with most permanent policies being eligible for dividends. If these dividend values are sufficient, you are likely to see your out-of-pocket premium payments end or drastically reduce after several years, yet your coverage should continue for life. Permanent insurance also eliminates the problem of future insurability since it does not expire after a certain period of time. In fact, some policies come with guaranteed purchase options which should allow you to buy additional coverage at certain specified times, regardless of your health. Lastly, permanent insurance builds cash value as the premiums you part with- some of which are guaranteed under many policies- can be used in future for any purposes you deem fit. For instance, you could borrow the equivalent cash value to provide income for your retirement, pay for your children’s education, or put a down payment on a home. Benefits Some of the benefits of permanent life insurance include: 1. Principal protection- The cash value that your permanent insurance policy accumulates is not subject to stock market losses and thus maintains stability over time. This means that what you invest will stay with you. 2. Guaranteed growth- Regardless of how the markets are performing, what you earn should continue to grow at a fixed interest rate. Over time, your policy should build guaranteed cash values and increase with every passing year. It will never decline in value owing to changes in market conditions. 3. Extra income- The cash value of a permanent policy may be converted into an annuity which should provide you with income for life. 4. Cash source with no penalties- In instances where you may need additional financial resources to help fund unforeseen expenses, your policy can be an ideal source to help you meet these needs. Unlike IRAs and 401Ks that penalize you for accessing your funds prior to retirement, a permanent insurance policy should allow you to borrow money for any reason and pay it back at your convenience without having to pay penalties or taxes. Who should get permanent insurance? Permanent insurance is ideal for consumers in need of creating liquidity so as to pay projected federal estate taxes. In addition, those concerned about asset protection, where state laws provide that death benefits and the cash value of insurance policies are not subject to claims by creditors ought to apply. Permanent insurance policies are also attractive since they contain an element of forced savings, especially in an environment of low interest rates. However, administrative and mortality costs of the policy will still be deducted. Another situation where a permanent insurance policy is advocated for is for retired couples who are concerned about spending money because it may deplete the inheritance that they wish to leave for their children. Here, a retired couple could designate a small portion of their available funds in order to buy a permanent policy which should have a no-lapse guarantee. Such a policy would ensure that they enjoy their retirement whilst ensuring that their children receive the intended inheritance. What to look for when comparing quotes from different companies 1. Term of the policy The word 'term’ denotes the period during which your premiums are fixed- the shorter the term, the lower the premiums. Therefore, do not compare the cost of a 5-year policy to that of a 15-year term because in doing so, you may actually end up buying a more expensive life cover. 2. Your age Various insurance companies compute age differently. If you get varying quotes from various firms, make sure that they have not made a mistake when determining your age since this is one of the most important cost drivers. If your age is wrongly computed, your quote essentially becomes useless because when the cover goes into underwriting, the mistake is likely to be identified and the premium adjusted as it ought to be. 3. Your health Needless to say, your health is very important to life insurance providers. In order to get a quote, one need not undergo a physical examination but it is highly advisable that you be totally honest about your health condition when you get your quote. Moreover, make sure that your chosen agent does not engage in any monkey business by performing the old bait and switch technique i.e. if your agent shows you a 'preferred’ rate when you are not in tip-top shape, that quote is ultimately not going to do you any good and it is in fact a waste of time. The agent will rope you into applying for a cover that he/she knows will end up costing you more than the quote indicates. Many people caught up in this simply just give in and pay the higher rate which is a shame since there are insurance companies that cater to people with pre-existing health conditions. This is why it is so important to be honest with the agent who is helping you and it is also equally important for them to be as honest with you. 4. Financial strength of the company It is quite difficult to establish how strong your insurance provider is going to be when you need them-10,15, or even 20 years from now. However, rating agencies can take some of the guess work out of this process. Due diligence on the client’s part is highly advocated for and the least that you can do is to Google your chosen insurance company to see whether there is any news on them- good or bad. via Blogger An Overview of Personal Life Cover First seen on http://www.smartincomeprotection.com.au/ Getting life insurance for pilots can be quite challenging. Because any aviation-related job is considered as a high-risk activity, there are insurance companies, which refuse to offer any type of coverage for them. Also with recent events that directly affected the pilots, more insurance become more hesitant or stricter in offering life cover. But, do not despair. For all the pilots out there, applying for this type of insurance, here are some things you need to know to make the process faster and easier. Before discussing the ways to get life insurance, here are some difficulties and exclusions that pilots face when it comes to life cover. First of all, pilots, in general, are asked to pay higher premiums for their life cover. This relates to the fact that what they do for a job is very risky and they are more exposed to accidents. So, even though pilots earn more than average, they need to pay more to get this kind of cover. In addition, there are also some changes in specific coverage in life insurance for all types of pilots. For example, many insurance companies do not offer life cover to pilots who operate in war zones, risky geographic places, and unstable places. So, those military pilots, missionary pilots and relief pilots usually have a much difficult time in getting life insurance. There are also a lot of people who assume that hesitation from insurance companies to offer life insurance to pilots stems from the acts of terrorism in the airways. Terrorism is also thought to be the reason for the pilots’ eagerness to get insurance. However, recent studies in the increased number of pilots with this type of insurance reveal that terrorism may not be the force behind this trend. The availability of pilot-specific life insurance by a handful or insurance companies has more effect in this trend than terrorism. Now, those companies, which offer pilot-centred life cover understands their needs, and they specifically, designed the policy by considering the types of pilots. Distinctions have been placed on commuter pilots, military pilots and agricultural pilots. Different premiums and coverage are offered for the different types of pilots. To get more information about this, talk to insurance agents or the insurance company itself. The following are factors to consider when shopping for pilots insurance, you can successfully navigate common aircraft insurance pitfalls, and choose the provider that meets your needs. 1. A Pilot-Centric Insurance ProviderWhen looking for pilot insurance, it is important to choose a company that understands pilots and their unique needs. Don’t get lumped into that catchall ‘pilot-category’ by working with a company that doesn’t specialise in airplane insurance. By choosing a specialised aircraft Insurance company, you get a plan tailored to your specific piloting practices and lifestyle. This will allow you to lower your premiums while ensuring that you, your passengers, and you’re loved-ones are truly covered. 2. Direct Writer Aircraft Insurance CompanySeek out a direct writer company instead of an independent agent when shopping for pilots insurance. Direct writer companies employ non-commissioned professionals who specialise in their company’s aircraft insurance policies. Remember, pilot insurance policies are non-standardised, so it is imperative that you deal with a professional intimately familiar with the nuances of the many coverage and policies available today. 3. Availability of DiscountsWhile choosing an airplane insurance plan tailored specifically to your needs is the first step to lowering your premiums, additional discounts are out there. Look for aircraft insurance companies that offer programs that reward pilots for participating in training designed to improve their piloting skills. Participation in these programs can lower your premiums by 5-10%, and many aircraft insurance providers offer multiple programs that can be combined for significant discounts. 4. High A.M. Best RatingAn airplane insurance company’s A.M. Best rating is a measure of the company’s financial strength and its ability to pay claims. Ranging from A++ to F, why put your future in jeopardy by working with any pilot insurance company without a 'Superior’ rating. The insurance agents can also make getting life insurance easier with a specialisation in pilot-centred life cover. They can go over your financial situation and other needs, and look for the best company suited for what you really need. Finally, getting life insurance for pilots can also be achieved by searching online for policies that meet your needs and conditions. via Tumblr Getting the Best From Your Pilot Insurance. First seen on Smartincomeprotection.com.au Getting life insurance for pilots can be quite challenging. Because any aviation-related job is considered as a high-risk activity, there are insurance companies, which refuse to offer any type of coverage for them. Also with recent events that directly affected the pilots, more insurance become more hesitant or stricter in offering life cover. But, do not despair. For all the pilots out there, applying for this type of insurance, here are some things you need to know to make the process faster and easier. Before discussing the ways to get life insurance, here are some difficulties and exclusions that pilots face when it comes to life cover. First of all, pilots, in general, are asked to pay higher premiums for their life cover. This relates to the fact that what they do for a job is very risky and they are more exposed to accidents. So, even though pilots earn more than average, they need to pay more to get this kind of cover. In addition, there are also some changes in specific coverage in life insurance for all types of pilots. For example, many insurance companies do not offer life cover to pilots who operate in war zones, risky geographic places, and unstable places. So, those military pilots, missionary pilots and relief pilots usually have a much difficult time in getting life insurance. There are also a lot of people who assume that hesitation from insurance companies to offer life insurance to pilots stems from the acts of terrorism in the airways. Terrorism is also thought to be the reason for the pilots' eagerness to get insurance. However, recent studies in the increased number of pilots with this type of insurance reveal that terrorism may not be the force behind this trend. The availability of pilot-specific life insurance by a handful or insurance companies has more effect in this trend than terrorism. Now, those companies, which offer pilot-centred life cover understands their needs, and they specifically, designed the policy by considering the types of pilots. Distinctions have been placed on commuter pilots, military pilots and agricultural pilots. Different premiums and coverage are offered for the different types of pilots. To get more information about this, talk to insurance agents or the insurance company itself. The following are factors to consider when shopping for pilots insurance, you can successfully navigate common aircraft insurance pitfalls, and choose the provider that meets your needs. 1. A Pilot-Centric Insurance ProviderWhen looking for pilot insurance, it is important to choose a company that understands pilots and their unique needs. Don't get lumped into that catchall 'pilot-category' by working with a company that doesn't specialise in airplane insurance. By choosing a specialised aircraft Insurance company, you get a plan tailored to your specific piloting practices and lifestyle. This will allow you to lower your premiums while ensuring that you, your passengers, and you’re loved-ones are truly covered. 2. Direct Writer Aircraft Insurance CompanySeek out a direct writer company instead of an independent agent when shopping for pilots insurance. Direct writer companies employ non-commissioned professionals who specialise in their company's aircraft insurance policies. Remember, pilot insurance policies are non-standardised, so it is imperative that you deal with a professional intimately familiar with the nuances of the many coverage and policies available today. 3. Availability of DiscountsWhile choosing an airplane insurance plan tailored specifically to your needs is the first step to lowering your premiums, additional discounts are out there. Look for aircraft insurance companies that offer programs that reward pilots for participating in training designed to improve their piloting skills. Participation in these programs can lower your premiums by 5-10%, and many aircraft insurance providers offer multiple programs that can be combined for significant discounts. 4. High A.M. Best RatingAn airplane insurance company's A.M. Best rating is a measure of the company's financial strength and its ability to pay claims. Ranging from A++ to F, why put your future in jeopardy by working with any pilot insurance company without a 'Superior' rating. The insurance agents can also make getting life insurance easier with a specialisation in pilot-centred life cover. They can go over your financial situation and other needs, and look for the best company suited for what you really need. Finally, getting life insurance for pilots can also be achieved by searching online for policies that meet your needs and conditions. via Blogger Getting the Best From Your Pilot Insurance. Insurance is probably one of the most important things to have, whether its personal cover, car insurance, professional insurance or health insurance, it offers a cushion of support in the event that one picks up an unfortunate costly charge. In a world that is moving fast the cost of medical healthcare is increasing by the day such that it’s almost an obligation to have healthcare cover especially if you are at a risk of needing medical attention. Professionals like doctors, surgeons and nurses need constant medical cover given the daily risks they are exposed to, it’s a good thing there are insurance companies that offer doctor’s insurance to cover medical professionals. What is health insurance? Health insurance is a form of coverage that covers the cost of medical and surgical expenses. The insurance exists in may different types with the most common being the costs out-of-pocket coverage where the insured individual pays all their healthcare related costs and reimbursed at a later date or the coverage where the insurance provider covers the cost and the insurer makes payments to the provider. In some countries health insurance is universal and covered by the government while in other places people have to pay for their own insurance or get cover as part of employment benefits. When an individual is covered by health insurance they are protected against the risk of incurring very high medical expenses that could lend them in debt for a really long time. As such, insurance providers come up with financial structures like payable premiums so they always have liquid cash to pay for the medical costs as per coverage agreement. This has lead to the development of different cover policies with some offering better cover than other policies. Why should you get health insurance? While it’s true that no one really plans to get sick or need medical attention the fact is it can happen anytime. You can be involved in an accident that requires costly surgery or you could very well catch a nasty infection that requires costly medication. The truth is an emergency can occur at a time when you are financially squeezed and you need help covering the bill. At times you may have a healthy bank balance but the cost of health care is so high that having a health cover proves much cheaper than paying from your own pocket. Health insurance offers a neat cost effective cushion including many other benefits:
Health care insurance for medical professionals Medical professionals are the most exposed people when it comes to health care. Doctors, surgeons, nurses and medical students are exposed everyday to some of the most hazardous health risks like infections and injuries at the hospital. In fact, the risk are so high that some insurance providers do not offer cover for this group of individuals or if they do they make it difficult to get the coverage with high premiums and complicated claiming procedures. For medical professionals, it’s important to get a doctor’s insurance that offers adequate cover. You may practice preventive care but there are some conditions that can develop at a later date, for example if you work with radioactive substances and or material it can be a while until the medical side effects kick in and they usually are very costly to treat. When choosing health insurance its also important to find out if the policy includes post employment coverage as it can be expensive to sign up with a new insurance policy when you leave work or when you develop some conditions linked to your former employment role. As you can see there are many reasons why one needs health insurance, including the health care providers themselves. via Blogger Why is it important to get insurance cover? Insurance is probably one of the most important things to have, whether its personal cover, car insurance, professional insurance or health insurance, it offers a cushion of support in the event that one picks up an unfortunate costly charge. In a world that is moving fast the cost of medical healthcare is increasing by the day such that it’s almost an obligation to have healthcare cover especially if you are at a risk of needing medical attention. Professionals like doctors, surgeons and nurses need constant medical cover given the daily risks they are exposed to, it’s a good thing there are insurance companies that offer doctor’s insurance to cover medical professionals. What is health insurance? Health insurance is a form of coverage that covers the cost of medical and surgical expenses. The insurance exists in may different types with the most common being the costs out-of-pocket coverage where the insured individual pays all their healthcare related costs and reimbursed at a later date or the coverage where the insurance provider covers the cost and the insurer makes payments to the provider. In some countries health insurance is universal and covered by the government while in other places people have to pay for their own insurance or get cover as part of employment benefits. When an individual is covered by health insurance they are protected against the risk of incurring very high medical expenses that could lend them in debt for a really long time. As such, insurance providers come up with financial structures like payable premiums so they always have liquid cash to pay for the medical costs as per coverage agreement. This has lead to the development of different cover policies with some offering better cover than other policies. Why should you get health insurance? While it’s true that no one really plans to get sick or need medical attention the fact is it can happen anytime. You can be involved in an accident that requires costly surgery or you could very well catch a nasty infection that requires costly medication. The truth is an emergency can occur at a time when you are financially squeezed and you need help covering the bill. At times you may have a healthy bank balance but the cost of health care is so high that having a health cover proves much cheaper than paying from your own pocket. Health insurance offers a neat cost effective cushion including many other benefits:
Health care insurance for medical professionals Medical professionals are the most exposed people when it comes to health care. Doctors, surgeons, nurses and medical students are exposed everyday to some of the most hazardous health risks like infections and injuries at the hospital. In fact, the risk are so high that some insurance providers do not offer cover for this group of individuals or if they do they make it difficult to get the coverage with high premiums and complicated claiming procedures. For medical professionals, it’s important to get a doctor’s insurance that offers adequate cover. You may practice preventive care but there are some conditions that can develop at a later date, for example if you work with radioactive substances and or material it can be a while until the medical side effects kick in and they usually are very costly to treat. When choosing health insurance its also important to find out if the policy includes post employment coverage as it can be expensive to sign up with a new insurance policy when you leave work or when you develop some conditions linked to your former employment role. As you can see there are many reasons why one needs health insurance, including the health care providers themselves. via Tumblr Why is it important to get insurance cover? SmartIncomeProtection(SIP) offers an obligation free service to compare insurance quotes from several Australian insurance providers primarily for income protection, life insurance, health and trades insurance. via Tumblr Smart Income Protection
via Blogger Smart Income Protection
Published in Mint on OCT 09 2012, Written by Kapil Mehta
I suffer from diabetes and want to buy a term plan. Will there be a loading and how much will the premium vary? If a particular insurer rejects my case, will other insurers provide cover?
—Avinash
It is very likely that insurers will increase premiums for you. The increase can vary between 25% and 150%. Insurers consider several factors while loading a policy. However in case of diabetes, fasting blood sugar level is the key. Empirically, we have noticed that if sugar level is above 200mg, a case is likely to be rejected. The loading across insurers is similar. It is unlikely that an insurer will accept your case if it is rejected by another on medical grounds.
Some insurers will conduct a pre-medical test wherein they conduct the medical tests before you formally apply for insurance. This saves you the effort of completing your proposal form and paying the premium in advance. In such cases, most insurers will make you pay for medical tests but refund the money if your insurance is finally placed with them.
I am a 30 years old married person. I earn around Rs.12 lakh per year. I have a term plan of Rs.50 lakh. Should I increase the cover amount? I have another life insurance policy for a cover of Rs.10 lakh started two years back. Should I continue the policy?
—Rakesh
I generally recommend a sum assured that is 10 times annual income. This level of insurance broadly provides financial security to a family for 10 years if the main wage earner dies prematurely.
According to this rule of thumb, you should have Rs.1.2 crore of sum assured whereas you currently have Rs.60 lakh. I suggest that you purchase an additional Rs.60 lakh of term cover. This should cost you less than Rs.10,000 for a 30 year term. Typically, it is expensive to discontinue a life insurance policy in the initial years. Surrender charges tend to be high. So, I suggest that you continue your second life insurance policy.
Read more on https://securenow.in/blog/a-term-insurance-cover-should-be-10-time-annual-income
via Blogger A term insurance cover should be 10 time annual income |
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