What is life insurances?

Question

what is life insurance? what types of life insurances and what do they cover? can you get a life insurance where after say for example 20 years nothing happens to me or my partner, they will pay back the money back? can you get life insurances that covers the morgages repayments if i become ill or lost my job? if so, what is it called? am new to it all please help answer as much as you can and if it helps I have a mortgage, 2 children and a partner! based in UK

Answer 1

This is taken from the source below. I think it sums it up nicely!

What is life insurance?

The term Life Insurance, in it's day-to-day form refers to an insurance policy taken out against an individual's life - as the name implies. Just like every other type of insurance, it requires the policyholder to pay regular premiums to their insurance company. The result of the policy is that, should the holder die, the insurance company pays out either a lump sum of a regular income to the dependants or other nominated persons.

NOTE: Life Insurance is also sometimes referred to as Life Assurance - these two names essentially refer to the same thing.

There are many reasons why it is a good idea to take out a Life Insurance policy. The most obvious is to provide financial security and peace of mind to your family, should you die unexpectedly. However, there are many other reasons why you should consider taking it out - these include protecting your mortgage, any estate or land you own, and even your business interests.

Answer 2

Life insurance is the transfer of risk from oneself to another, for a fee. For example, I go to an agent, fill out the forms and am approved for insurance, now I must pay the company each month for the coverage amount I agreed to. Should I die, my beneficiaries will collect that face amount. If I stoppaying the premiums, the insurance will also stop.

Types of life ins.- Two types  Term and Whole Life.  1) Term is pure insurance. You pay the premiums and the company will pay out if you die in a certain time period (term). 2) Whole life, Universal, EIUL, Variable and VUL do the same as term but add a cash account to the insurance. This is why it costs more than term.

But understand that the underlying insurance is TERM, usually Annually Renewable Term, except in the case of Whole life. ART means that as you grow older, the cost of the term policy goes up. This means that less of your money goes to the cash account.

What do they cover? Insurance is meant to be gotten by healthy people. The insurance company doesn't want many sick people otherwise they would lose money by paying out claims each year.They want to limit the number of claims so that they have the most money gaining the most interest. They have rules and you must usually have a medical test done. Even if you have some health challenges they will cover, at a higher premium, some of these. They will also cover people in certain jobs or with certain hobbies but also higher premiums. Usually, the only limit on paying out is in the first two years. After that, it is all good!

Return of Premium is a rider that can be attached to almost any policy. RoP is what you are talking about- have term for 20 yrs, you don't die and the company reimburses you all your premiums without the benefit of interest. You just gave them FREE money!! This costs a little bit more.

Lose your job- this is a disability rider, again it costs a little bit more for adding this. It will cover the cost of premiums after certain conditions are met- usually out of work or disabled for at least six months, then the company pays your premiums for you.

My recommendation is to sit down with angent who will do a complete financial check up for you and your partner. The will look at your full financial picture, ask you what you want to achieve for retirement, education goals of child(ren), show a plan to you that covers all of these questions for you. This plan should also show how much insurance you need and for how long. The person should also have a securities  license to assist in setting up retirement plans, educational plans, etc.

Hope this helps. Email if you have any further questions or if I could help schedule a sit down with you.

Answer 3

You can't get life insurance where if you don't claim you get your money back - but some life insurance does have an investment potential - it's just that other methods of saving are more efficient.

The second type of cover you are looking for is mortgage payment protection insurance (mppi) - try http://www.portwood.co.uk/asuone.htm for examples of rates.

This should be in addition to a decreasing term insurance policy to cover your mortgage balance if you die.

Answer 4

VERY interesting guide info about your Question HERE:

http://all-insurance-online.blogspot.com

Good luck!

Answer 5

If yer snuff it ur kids and hubby will get thosands of pounds... better b nice 2 them then.

Answer 6

A life insurance can be packaged in a variety of ways.

You can have as you describe a policy that covers you against a sudden death...which means your next of kin (whoever you nominate) will receive the sum you're insured for....should you survive the term for the policy (it might be 15-20 years)...there is a sum available dependant on the policy purchased (there are several different types)

There is an insurance that will cover you for a terminal illness...this could help with medical treatment  or?

Insurance is a big subject...and different people need different insurance...appropriate to their circumstances.

The best thing for you to do is get in touch with some insurance companies 3-4 tell them what you need the insurance to cover....and they will advise you on the right product for you.

When you have all the details from all the companies...sit down with your partner or? and decide which would be the best one for you...and your circumstances.

Don't be pushed into signing or buying a policy before you've had the time to talk it over and think exactly what is being offered and...is that what you want.

In your circumstances its a good and responsible thing to do for your children's sake and yours.