Joint life insurance policies
Many life insurance policies are set up to help one half of a couple when the other person dies. In some cases this may be because there is one partner who earns a lot more money than the other partner. In these cases the family will have trouble meeting their commitments and could find themselves in serious financial trouble. In these cases only one life needs to be insured. In other cases however it may be the case that both lives need to be insured. This may be because the salaries are roughly equal, or that one of the two
Why the cheapest life insurance is not always the best
Life insurance is a financial transaction. An amount of money is paid out in return for a larger amount of money being paid back if the life insurance is triggered. This means that life insurance can often be judged by price. Although this is certainly a valid factor, it should not be something that should be used as the sole factor. The first thing that should be considered is the pay out if the insurance policy is triggered. Any cost of insurance should be judged in relation to the pay out that is made. It may be the case that
What is the life insurance term?
The word “term” in life insurance has a very specific meaning. It means the length of time for which a person is insured. During that time the life insurance terms can not be altered by a life insurance company, even if the person becomes ill. The word “term” is so important that it even defines the most common type of life insurance, which is known as “term life insurance”. This life insurance covers a person for a number of years, which can be as low as six months and can be as high as twenty five years. The life insurance
Life insurance on a child
Insuring a child’s life is not seen as something that is often done, but as life expectancy grows then retired parents are often finding that they are at least partially reliant on their children and that life insurance may be a good idea. There are two ways in which many parents can find themselves dependent on their children, and that is either for care or at times they may depend on their children if there are inadequate savings and there are financial emergencies. Many children are prepared to do this in order not to see the family wealth dissipated through
Big life events and life insurance
Life insurance is the safest and most secure way to protect dependents. However one issue is that dependents are not adequately covered. This means that life insurance should be constantly reviewed, sometimes on a regular basis but also linked to big lifestyle events. One of the methods that should be used is to have an annual review of life insurance coverage. These should be put in the calendar and should look at the payout that can be expected and the expenses that these would need to cover and decide whether the cover is adequate. However there are other times when these
Life insurance with a mortgage
Life insurance is often needed in order to obtain a mortgage. This is in order to lower the risk to the mortgage lender. Life insurance tends to be needed for home loans with high loan to value ratios. These are loans where the loan is almost as much, in some cases more, than the actual market value of the house. In these cases if the borrower dies and no one else takes the home loan on then there is a good chance that if the lender forces a sale of the house then there will still be money left on
Is getting married a reason to increase life insurance?
One of the problems that people have with life insurance is that they can have what was a sufficient amount of life insurance five years ago, but which is now far too much or far too little. Sometimes this happens when commitments are building up quietly but are not being noticed, this is one reason why it is a very good idea to have an annual review of all finances, including life insurance. However there are times when commitments change very radically, or they are going to change radically, and one of these lifestyle events is when a person gets
Will a life insurance payout go to my estranged spouse?
One of the big problems with paying in life insurance is that the person who is paying in life insurance is not sure that the life insurance will be going to someone who does not need the money. It is a good idea to know where the money goes and to know how to change the beneficiary so that there is some peace of mind. Life insurance is usually needed if there are any dependents. However it can often be the case that those dependents change. This is often the case with a spouse. It may be the case that
Should I keep paying into life insurance?
Life insurance is a way of insuring that dependents will not be left destitute if a person dies. But it may be the case that circumstances have changed and that the life insurance is not seen to be needed as much as it was before. The question then becomes should the life insurance keep on being paid? There are many reasons why life insurance may not seem as suitable as when it was taken out. There may have been a divorce or estrangement, children may have grown up or money may not be as plentiful as it was when the
Life insurance to cover school fees
One of the most common uses of life insurance these days is to use it as a method to cover school fees. School fees can be a bit of a risk. They are essentially reliant on one parent working throughout the period when the children are going through education. Although a period of unemployment can be covered either by savings or borrowing, death can not be covered in this way. As the other partner has often taken a much less well paid job in order to be around to look after the children then the school fees are often likely