Unit Linked Insurance Plans

Higher the rate of inflation, lesser is the value of money. This is a thumb rule to be kept in mind while making any long-term investment. Generally, at the time of making the investment, the return promised at maturity, usually 10-20 years, looks attractive. But when the realized amount is received on the maturity date, its value normally gets reduced to peanuts. This is because the rate of return could not match the rate of rising inflation and other economic variables.

To overcome such glaring gaps, a Unit Linked Insurance Plan (ULIP) is introduced that help investors to get a fair return on their investments. It is a type of an insurance policy where the value of the policy changes with the market trends. It is basically a combination of an insurance policy and a mutual fund aimed at providing both flexibility and stability for the investment. In simple words, it can be said that the returns are market-linked in a ULIP.

In a ULIP, the policy taker receives a certain number of units, according to the amount of investment he wishes to make, at their existing net asset value (NAV). The amount invested in the plan is further re-invested in different ports like that of stocks, debts, futures, etc. Therefore, as the value of the portfolio changes, the NAV varies accordingly. For instance, in a bullish market, the NAV will increase theby increasing the value of the units and the overall ULIP.

ULIPs are ideal for investors who prefer secured investments but are ready to take a small degree of risk for better returns. Just like in any pure life insurance contract the the money is paid to the beneficiary in the event of death of the policyholder. Similarly, in a ULIP, the money is benefits of the plan are extended to the family or other beneficies in case of the unfortunate happening.

A wide range of ULIPs, with different features and benefits, are offered by almost all the insurance companies. You can choose a plan depending upon the desired investment amount, tenure, and the expected return. The companies have a team of professionals who can visit you personally and explain the benefits of different policies.

You can also refer to the websites of these companies to get a fair idea about the current policies. Apart from this, you can use an investment calculator, available on most of the investment websites, to calculate the expected return amount.

How to Understand Health Standards for Long Term Care Insurance Enrollment

Long term care insurance conforms to the basic insurance mechanism, in that the individual risk of future peril is shared by a pool of people who are currently free from that peril.

The insurance pool is represented by the insurance company which sets eligibility standards for enrollment to ensure a hazard-free pool, so that actuaries can calculate reasonable, standardized premiums for pool members who meet the eligibility requirements and enroll in the risk pool. In this way, members transfer their individual risk of peril to the pool. The pool shares the risk for all members and covers those who actually experience the future peril.

If you are thinking about applying for a long term care insurance policy, please be aware that certain pre-existing health conditions can make it impossible for some folks to enroll due to health reasons. If you have any health issues, this article can help you better understand long term care insurance health requirements.

Do not apply for long term care insurance if you CURRENTLY:

* Use a multi-pronged cane, crutches, oxygen, walker or wheelchair

* Require assistance with bathing, dressing, feeding, toileting, urinary or bowel pollution, or transferring between bed or chair

* Use / need home health care, adult day care, assisted living or nursing home care

* Requirement assistance with grocery shopping, use of transportation, use of telephone or banking

(NOTE: These pre-existing health problems may make you uninsurable for buying a new long term care insurance policy. However, all the above health conditions will be covered if they occur AFTER you have purchased your long term insurance policy.)

In addition, do not apply for long term care insurance if you CURRENTLY have:

* AIDs or HIV infection

* Alzheimer's

* Amyotrophic Lateral Sclerosis (ALS)

* Cystic Fibrosis

* Dementia

* Hemophilia (other than Von Willebrand disease)

* Hepatitis C, Non-A, Non-B, or Autoimmune (Active)

* Kidney Failure

* Liver Cirrhosis

* Memory Loss

* Multiple Sclerosis

* Muscular Dystrophy

* Paralysis

* Parkinson's Disease

* Post-Polio Syndrome

* Schizophrenia

* Sickle Cell Anemia

* Systemic Lupus Erythematosus

Every long term care insurance company has their own health underwriting standards. Each company's health underwriting standards may vary by state, according to each state's laws.

Note: As you increase in age, so does your risk for health issues. Therefore, most long term care insurance companies will require medical records for people over 45, medical records and phone interview for people 50 and over, and medical records plus a face-to-face health interview for people over 70.

Be aware: If you think you can slip your health issues past long term care insurance underwriters, then think again. First, lying on your application is fraud. Second, it is the underwriter's job to be very thorough when looking through your medical records and assessing risk. Be honest with yourself and with the long term care insurance company you choose.

The upshot of all this is that folks must protect themselves while they are still in good health.

If you fall within acceptable guidelines, then "congratulations", as you can protect your assets and your family's lifestyle stability now, then cross your fingers and hope that you are not one of the nearly 45% of us who will need care at some point in our lives.

Copyright (c) 2006 Clay Cotton

Whole Life Insurance Quotes – Is Whole Life Insurance Your Best Option?

Whole life insurance quotes are higher than Term life, which seems to be the direction that most consumers are going these days. The reason for this is because Whole life insurance also has a savings plan within the policy that accumulates what's called "cash value" over the life of the policy. You can borrow against this cash value later on in life if needed and use it for practically any purpose.

Another reason that many people are leaning towards term life, rather than Whole life, now is because Term life is known as "pure" insurance coverage and there is no savings plan involved. Because of this it's much less expensive. You can buy a 10, 20 or 30 year Term life policy that will get you beyond most of lifes major expenses and save yourself a lot. This is how.

The question that I have for most people is "why would you want to invest in an insurance policy when you can invest elsewhere and get a higher interest rate?" If you're going to buy life insurance, buy life insurance, but if you want an interest bearing savings plan, you should see your banker or other financial advisor. It is definitely a good idea to diversify your funds by having several different savings accounts, however, Whole life insurance is over priced and there are simply better ways to invest your hard earned money.

Summary – If you are totally set on getting Whole life insurance quotes, then that's your decision. I'm not saying that Whole life insurance is a bad thing, only that buying Term life is a better idea. The decision is up to you.

Things To Avoid When Taking Out A Life Insurance Policy

A life insurance policy serves as a means of providing for your family a livelihood after your passing. It is also there to settle most of your debt should you have any at the time of your death. The insurance companies have rules in place that would ensure that the moneyes they pay out are for a legitimate reason. It would be there to your advantage to avoid certain things when you take out a policy.

It is often necessary to consult with a broker to get the best deal for your life insurance. He or she can guide you around the potholes to give you the best options. There are some things to avoid when you apply for insurance. A focal point that you should look at, to avoid, is what the life insurance would and would not cover. Insurance cover is there as a means to ensure financial security for family members, especially. Strict rules therefore apply to the cover that the insurance company would allow for you to have.

In most countries, it is unacceptable to participate in a dangerous lifestyle if you want to take out a life insurance policy. These include:

  • Dangerous activity: Dangerous activity deals with the many different types of extreme sport. The participation in this type of activity would put you in arms way and could result in death. The death would not be a natural death, and this makes it difficult for the insurer to insure your life.
  • A Dangerous Job: Another thing to avoid when applying for life insurance is to work in a high-risk environment. Such workplaces often provide what is called worker's compensation and you do not need unnecessarily an independent life insurance. However, if you do want to have extra insurance, you will pay more on your promotions.
  • Another most important thing to avoid when taking out a life insurance policy is to avoid lifestyle choices such as smoking, heavy drinking, being overweight and unfit. Smoking is considered a vehicle to illnesses such as cancer, emphysema, and other physical ailments. The insurance company would there before think twice before allowing you to have cover, as it would be costly to them you should become ill. The same applies to any other type of negative aspect that could cause damage to your physical body. Again, it is possible to get the life insurance, but it will be at great cost to you.

It is important to always keep in mind what things to avoid when taking out an insurance policy. Just a few of these are mentioned here. These are, a dangerous job or activity, and lifestyle choices such as smoking. However, you are able to get the insurance at a higher premium. At the same time, should these circumstances change in any way, such as a healthier lifestyle, a reassessment could have allowed the premiums of the life insurance to be lowered.

The Primary Types of Life Insurance & How Their Cost is determined

There are many forms of life insurance policies available to a potential policyholder but all life insurance policies will always fall under two different categories:

Term Life Insurance – these types of policies are only active for a specified amount of time of your life, called a "term". When the term ends, so does the policy. Payout only occurs should the insured die sometime within the policies defined term. This type of life insurance is best used for temporary or shorter term needs: 20-year mortgage, college education costs for children, and helping to support children and assist with family income needs should one of the parents die.

Permanent Life Insurance – this type of policy covers you for your entire life and will pay death benefits when you ever die. This type of insurance policy is best for "permanent" related needs: burial fees, estate taxes, providing income for a spouse, etc.

Whichever type of insurance policy you choose, there are two factors that determine its cost: Mortality Cost and Policy Expense Cost.

Policy Expense Cost is the cost of insurance company expenses such as office rent, utilities, general staff, and agent responsibilities. Depending on the type of policy you purchase, this fee can either remain constant or fluctuate through your policy's lifespan.

Mortality Cost is determined by the odds of the insured dying at that particular moment. Obviously, the odds of the insured dying increase exponentially with age. To avoid an ever increasing insurance premium that correlates directly with the insured's aging, insurance companies average the increase and adjust the early premium payments accordingly. Essentially, you are paying an inflated premium when the insured is younger and a much lower premium as the insured individual ages, but the actual payment remains constant. This overpayment is called "cash value" and must be reimbursed to the policyholder should he or she cancel an existing permanent life insurance policy early. It is important to note that Term Insurance premiums increase with the policy holder's age but they will never accrue a "cash value". When a Term Insurance policy is terminated early, there is no refund for overpayment due from the insurer.

Additional life insurance terms you should know:

Beneficiary – This is the person or organization to whome the insurer will pay due to the insured die. This could be your husband / wife, or your spouse. It could also be your children or ahaps your favorite charity.

Primary Beneficiary – This is the person or organization that will be paid upon the insurer's death.

Contingent Beneficiary – This is the person or organization to which the proceeds will be paid to the primary Beneficiary be dead or no longer exist (such as a company or corporation named as the Primary Beneficiary). If no Contingent Beneficiary was named in the policy, proceeds will be paid to the Primary Beneficiary's estate.

Face Amount – This is the amount of money payable at time of death. It is usually found on the first page of every Life Insurance policy, whether it's a Term or Permanent policy.

Purchase Options – These are options that can be purchased through the life of the policy regardless of the insured's health. A good example of a purchase option is allowing the policyholder to increase the amount of the policy without having to re-evaluate the health of the insured.

Waiver of Premium – This is an optional coverage that permanently suspends your premium in the event that you are disabled. However, you must first be disabled for six months before the waiver takes effect. Additionally, this option is quite expensive and may not be necessary should the insured have substantial disability coverage.

How to Get Affordable Car Insurance in Ohio

People who live in the state of Ohio may be in for a surprise when they open their mailbox. In this state the Bureau of Motor Vehicles sends out 280,000 requests a year to see proof of insurance. Once someone receives one of these notices in the mail they only have three weeks to prove they have insurance. Although it's obviously mandatory to have car insurance, some people forego it because of the price. There are ways to find affordable car insurance and some are not things most people are aware of including:

o Using one insurance company for all your policies including car, home, health and life. Insurance companies give discounts to individuals who purchase more than one type of insurance from them. Ask your health insurance or life insurance agent about a quote for car insurance.

o Buying a car that costs less to insure. Most people never consider the insurance costs that are associated with a particular type of car before they buy it. Call multiple insurance agents and ask for quotes on a car you are considering buying. You may be surprised to learn exactly how expensive it is, and if you find this out before you finalize the sale, you can save yourself a lot of money.

o Mention that you have a car alarm or consider getting one. A car alarm is a great idea for many reasons including the reduction you are likely to experience in insurance costs. Any effort that you make to keep your car safer is viewed in a good light by the insurance company. You'll have to be prepared to show proof that the car alarm system is indeed installed.

The most important factor in determining your car insurance rates is likely your driving record. If you have been in more than one accident in the last few years or you have a pile of speeding tickets with your name on them, you are obviously going to have a more difficult time getting an affordable rate. If this is the case, make a decision to start driving safe now and you'll see your rates steadily drop.

The Difference Between Health Insurance and Life Insurance

Health insurance is designed to protect you against having to pay large medical bills by offering coverage for a range of medical procedures and treatments. By contrast, life insurance is primarily designed to pay out a lump sum in the event of your death.

Life insurance is typically purchased in one of two forms.

The simplest form of life insurance, and also the least expensive, is term life insurance which pays out only on your death. You can usually purchase term life insurance for as little as one year or for up to 30 years and the policy will only pay out if you die before the policy reaches its end date. You may consider purchasing term life insurance later in life or when you feel that your life is likely to be at greater risk over a short period of time for some reason.

The second form of life insurance is whole life insurance which is a combination of both a term life insurance policy and an investment plan. Your monthly (or annual) premiums are divided between the two parts of the policy, with one part of the premium providing you with insurance cover should you die during the period of the policy and the reminder being paid into an investment vehicle, such as a mutual fund or stocks and bonds. Whole life insurance is a popular choice as it provides you with both protection for your family and a savings vehicle, possibly to meet college tuition fees or to add to retirement funds. These policies are however normally heavily loaded with both fees and responsibilities and, if you are looking at a whole life policy principally as an investment vehicle, then there are certainly better options available to you.

The cost of both a life insurance policy and a health insurance policy depend to a large extent upon your age and health and the younger and healthier you are the cheaper they will be.

Perhaps the most important thing to understand is that life insurance and health insurance are designed to cover two very different situations and it is not a case of choosing one or the other, as many people think, but it is a case of deciding as two separate issues whether you need either or both.

Life Insurance to Pay Taxes of the Rich

A life insurance can actually be used in many ways, not only to replace income like where it is typically used. Some rich individuals will no longer consider having this kind of insurance policy because they believe that they already have lots of money and properties and they even have certain trusts for their family in case they die. This is the reason why some wealthy individuals would not consider having insurance policy because they thought that income replacement after death is the only use of this insurance. But they are only misinformed.

Life insurance has many uses especially when you are rich and you have a large estate. Having a large estate will also mean having a large estate tax when you die and this can give a great impact to your properties. Having no life insurance prepared for this, your loved ones and relatives may still pay off this large amount and they may be forced to sell some of the valued properties just to pay these taxes. But having an insurance policy like this can become a protection to your estate against those taxes.

Another thing is when you have been donating regularly to a charity work. Donations, even charity debts, involve tax on your part and this can be protected by having this insurance policy. If you want the contributions to continue when you die and you do not want the burden of taxes to affect your family, then this insurance policy can help you get through it.

For more information about this article try to visit Life Insurance

What Is An Accelerated Death Benefit On Life Insurance?


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