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HEALTH DISEASES FINANCE
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What is life
insurance?
Arranging life assurance cover is
the best way to ensure your family is taken care of in the event of your
death, giving both you and them peace of mind.
For what purpose
do I need life insurance?
1)
Replacing the main
persons earner's salary
2)
Mortgage repayments
3)
Education expenses
4)
Replacing childcare.
People who are not sure about the
type of coverage they need, or the amount they should insure for, should
consult an Independent Financial Advisor for expert advice.
What are the
different policy?
1)
Decreasing Term
assurance
2)
Term life
assurance
3)
Critical
illness cover
4)
Whole-of-life
assurance
5)
Endowment life
assurance policies
6)
Convertible
Term assurance
7)
Family income
benefit
(Note:For all policies it is
important to ensure you keep up the monthly premium payments to keep cover
in place.)
What are Terms
and condition of policy?
1)Personal circumstances of
policy holder keeps on changing.this should be kept in mind while making
policy for long term duration
2)check wheather policy is
indexed link policy
(index linked policy:--this is
policy in which the guaranteed payout and the premium payable are linked
to the Retail Price Index and rise alongside it each year.)
3) policyholders must be aware
of all the rules and regulations pertaining to payouts.
4)remember that longer duration
of the policy makes it more expensive.
who gets the
benefit?
1)generally policyholders will name
their spouse , their children as beneficiaries of their life insurance,
2) unmarried and childless
policyholders will name other family members .
3) A joint-life policy is a popular
and often less expensive option for couples which covers both of them
simultaneously.
4) spouses are assumed automatically
to have an insurable interest in each other's lives.
And so they are paid
accordingly.
Is life Insurance
payout taxable?
Well generally it is free of tax but
in some cases tax cannot be avoided.
However in order to reduce or spare
from taxes the policyholders can opt to write the policy in Trust. people
considering this option should always seek advice from their solicitor and
independent financial advisor.
What is the cost?
It depends on various factors
1)type of policy
2) the length of the policy term
3) the size of the death benefit
4)the flexibility of the policy
5) number of people covered by the
policy..
6) your age
7) your state of health
8) whether or not you smoke
9)what you do for a living
10)hereditary diseases, if any.
TIPS FOR LIFE INSURANCE QUOTES
1)Coverage
Amount: It is generally recommend that each household breadwinner
carry ten times their annual income in term life insurance. this is beneficial to both insurance company as well as policy holder. 2) When did you last use tobacco or nicotine? More use of tobacco means more harm to your body this increases your survival risk.If you are using tabacco frequently you may end up paying high premium and chances of getting benefits will reduce. 5)Do you work in a hazardous occupation? Working in such occupation increases the health risk so chances of accident and unfortunate mishaps are high. In such cases premium are high and benefits are restricted 6)Do you engage in any risky activities such as racing, scuba diving below 50 ft., mountain climbing, para-sailing or ultra light flying? It should be noted that many insurance company do not cover risk involved in such sports 7) Within the last 5 years, have you been convicted of either reckless driving or driving while under the influence, received 3 or more moving violations or had your license suspended/revoked? The more conviction you have, the more risk you take.All these contribute to high rates of insurance. Also other information like medical status(present and past)is very important. Some question may be asked such as:-- 1)What is your blood pressure? 2) Are you taking blood pressure medication? 3) What is your cholesterol level? 4) Are you taking cholesterol medication? 5) Family history is very important. Any family (parents or siblings) diagnosed with heart disease or cancer before age 60? 6) Have you ever been rated up or declined by any life insurance company? 7) Has any doctor recommended any medical test or procedure that you have not yet completed? TIPS FOR AUTO INSURANCE QUOTES 1) Consider higher deductibles. When you file a claim, a deductible is the amount of money you pay before your insurance company pays for the rest of the damage. Higher deductibles mean lower premiums 2) Drop collision coverages on older cars. If you own a car that's worth less than $1,500 you'll probably pay more for the coverage than you would ever collect on a claim. 3) Take advantage of low-mileage discounts. Some insurance companies offer discounts to drivers who put fewer than a predetermined number of miles on their vehicles each year. 4) Ask about discounts for antilock brakes, air bags and other safety features. 5) Comparison shop. Use consumer information provided by your state's insurance department. 6) Check your credit history and correct inaccuracies. Many insurance companies use insurance credit scores in figuring rates. If your credit reports contain errors or inaccurate information, you may end up paying more for insurance than you need to. 7) Check on group insurance and corporate discounts. 8) You may be able to get a discount through trade or professional associations that you belong to, or through your employer's corporate benefits program. 9) Ask about other discounts. a)good student discount. b)multiline discount. c) having no accidents in three years. d) having antitheft devices installed. TYPES OF INSURANCE Liability insurance: If you are at fault in an accident, your liability insurance will pay for the bodily injury and property damage expenses caused to others in the accident, including your legal bills. Collision and comprehensive coverages: If you cause an accident, collision coverage will pay to repair your vehicle. You usually can't collect any more than the actual cash value of your car, which is not the same as the car's replacement cost. Collision coverage is normally the most expensive component of auto insurance. Personal injury protection (PIP) It is an Expanded features that include payments for lost wages and child care. Uninsured coverages Uninsured motorists (UM) coverage pays for your injuries if you're struck by a hit-and-run driver or someone who doesn't have auto insurance. It is required in many states. Underinsured coverage Underinsured motorists (UIM) coverage will pay out if the driver who hit you causes more damage than his or her liability coverage can cover. In some states, UM or UIM coverage will also pay for property damages. |
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