If you can manage the risk of life you can manage everything related to life, goes the cliché. Life Insurance is one such tool which helps us to mitigate the risk of financial loss arising out of unexpected turn of events with respect to your health or an untimely death.
The life insurance can be categorized into two categories life insurance and health insurance.
There are various aspects of life insurance which decide as to what kind of cover a person should take and the extent of the cover.
The basic insurance needs are that of savings, pension, investment and pure risk.
Savings are done with the objective of long term financial needs whereas the investment policies are taken for the sole objective of dual benefit of potential returns and insurance.
The pension schemes are designed to cater to your post retirement finance needs – to meet the day to day expenses when the routine cash flows would dry up.
The last and the most simple are the term plans which are a pure risk product. There are no end returns from it but they cover the financial loss due to untimely death of the insured.
There is loads of information and life insurance articles available on the Internet market where you can take some basic idea about this.
With the advancement of technology the health hazards have also been on the increase. With each passing year a new disease is added to the long list of unsolved mysteries. Every decade sees the advent of a new life threatening disease being discovered in our bodies.
And diseases come don’t come alone. They come with a huge financial burden on the patient. At times such costs can be financially distressing on the patient and their immediate family members. The better and safe option is opt for a health insurance policy and secure your financial future in case of any health problems
You can compare life insurance quotes on the Internet and take the help of your financial advisor to reach at a conclusion.
Just a quick not for you today. I’ve been recently looking into almost all assets have been drawn down does the government step in. In fact, to qualify for aid from Medicaid, one must have only $2,000 to their name. Usually the house is exempt, but it will be used as collateral on any Medicaid expenses. Just want everyone to be sure they understand how LTC works. Women should especially take a look at their options since they tend to outlive their husbands.
Broadly the basic objectives for taking insurance can be classified into 3 categories:
- Risk coverage
- Savings and Investments
The most basic and the inherent objective of insuring oneself must be to cover the risk part. The objective is to ensure a fund for a future uncertain event like death. But the fact of the matter remains that risk is the most neglected of insurance aspect across all the countries. Such an insurance policy that covers pure risk is referred to as the term plan. It covers the life for a fixed premium against a sum assured. There are no survival benefits. The sum assured is paid in case of death of the life assured during the policy period. The premiums for the term plan are the lowest among all other plans. It would cost a person in the age group 20-30 around $ 0.30 (30 cents) a day for an approximate risk coverage of $25,000. Minuscule, isn’t it? But somehow the insurance companies are also hesitant to promote this product, for it accounts for less revenue compared to other savings and investment products.
Savings and Investments
Saving regularly to create a corpus which can be utilized at a future date for a particular occasion is another reason why insurance products are subscribed to. The objective is to save for the future certain events (unlike term plans where the objective is to insure against the uncertain event of death). Regular cash outflows at regular intervals are paid into the insurance product. These cash payments attract bonuses (interests) from the insurance companies and the corpus keeps on accumulating. A marginal amount of insurance in case of death in attached to the product. The accumulated corpus is paid at the end of the period.
The world is growing grey with each passing moment and the retirement solutions are gaining importance along with. Everyone gets haunted with the thought of what if I have no money after retirement? How do I sustain my standard of living? How do I sustain myself? Starting early is the key to create a large corpus for retirement. There are no death benefits and the risk coverage is zero. The objective is to sustain the certainty of old age.
The premium calculations for car insurance / motor insurance are dependent on a number of factors:
- Personal factors: Age, Gender, Marital Status
Your personal traits never influenced the motor/car insurance rates the way they do now a days. From your age to your marital status, everything counts!
The young age coupled with a single status is deemed as risky by the underwriters. A marital life would surely bring you relief in the form of a discounted insurance rate.
The country, the state and even the province that you stay in are factored into your motor / car insurance rate calculation. So if you happen to live in a high seismic zone, be ready to shell out more for you motor insurance. Some areas are more developed and disciplined than the others with respect to obeying the traffic ruled. Apart from this, the insurers also have area specific historical data for accidents and claims to back up their calculations.
A history of accident claims on you motor car makes insurance companies charge higher premiums. Multiple drivers also increase the probability of higher rates.
Occupation, credit rating
Your professional occupation, the risks and hazards associated with it are considered during the profiling session / documentation. If you happen to be associated with a job that requires you to travel frequently on the roads (if you use your own vehicle), the chances that you will be charged higher premiums is high.
Anything that disrupts the routine is considered as a hazardous risk and is attempted to be insured. But ever wondered that in a world which is increasingly becoming more chaotic, we could some day try to attempt to insure the routine from interfering with the daily chaos that we have become so used to
Funny as it may sound, it actually is not. Disruption of life in the hands of death is a risk that we insure with the help of life insurance. But as medical science takes its leap into futuristic medical solutions the life expectancy of the Homo Sapiens would increase. Suddenly, life that seemed to be the routine would itself become the disruption â the disruption to a peaceful routine death. An increased life expectancy might also mean an extended routine working life. An extended routine life would then be the disruption to the early retirement.
Are you ready to be deprived of the chaos that you have become used to? Have you insured the chaos against the routine !! ??