A Life Insurance Plan is a Contract Between the Insurer and the Insured

A life insurance policy is a contract which is entered into between the insured who is the plan holder and an insurance company. The contract is essentially an undertaking by the insurer to pay out the sum assured if an event such as death or a critical illness arises.

To bring the contact into effect the plan holder either makes a single payment on commencement or agrees to make payments to the insurance company on a regular basis for a defined period of time. In both cases the money paid is referred to as the policy premium. In many countries life insurance also means providing for the payment of funeral expenses as well as the payout of the sum assured. However in countries like America policy payouts are usually only for the sum assured on the death or critical illness of the insured.

The sum which is stated in the plan is generally paid to the insured person’s beneficiaries in the case of the death of the insured and therefore the plan holder enjoys peace of mind in knowing that his or her beneficiaries are going to be taken care of after his or her death.

Although at times the sum assured can be paid out before death where the policyholder is diagnosed with an illness that is serious in nature, to ensure that the insurer’s liability is kept within workable limits, cases such as death or serious injury arising out of war, riot, some natural disasters and death from suicide are not insured.

Life insurance policies come different forms and can provide not simply protection but also serve as a form of investment. For example, a lot of term life insurance plans are designed strictly to offer protection for a set period of time and will only pay out if death or serious illness occurs during the specified term. If no such event occurs then the policy simply lapses having no value.

By contrast, many whole life insurance and universal life policies stay in force throughout the life of the plan holder and pay out on death or the diagnosis of critical illness. They do however also acquire a cash value based upon the value of the investment supporting the policy and the policyholder can take some or all of this value from the plan in accordance with the terms and conditions of the contract. This form of policy is frequently used as a savings vehicle for such things as the payment of education fees or to provide a lump sum for retirement.

Life insurance is also commonly used in business, particularly within partnerships, to safeguard the business against the death of someone who has a financial stake in the business. In this case it is common for one person to buy a plan and act as the plan holder and beneficiary with another person being the insured.

Getting Cheap Commercial Insurance

In order to get cheap commercial insurance, you have to know exactly what coverage you need and don’t need. You should also know how to get agents to offer competitive bids rather than attempting to do your comparison shopping online. Using the internet for price comparisons is often recommended, but while this is an effective strategy for retail products, it’s not the best practice for insurance quotes. Before getting into the specifics of lowering your premiums, let’s step back and define what exactly commercial insurance is.

Commercial insurance is a generic term that, depending on package you purchase, offers coverage options ranging from office buildings to the contents of delivery vehicles. Most small and medium size business will purchase a business owner’s policy, or BOP. A BOP typically contains coverage for the building itself, coverage for borrowed and rented vehicles, and business interruption and contents insurance.

Business interruption insurance is designed to cover any loss of income due to loss or damage of assets, while business contents insurance compensates for equipment and assets inside of an office, as opposed to the building itself. The latter two types of coverage are available as add ons, while property insurance is always the default.

Additionally, you can purchase some type of commercial vehicle insurance, such as fleet van insurance or pickup insurance. If the vehicles in your business are used for deliveries rather than just transporting employees in a service business, opt for cargo insurance. A regular commercial vehicle insurance policy will take care of the employees, and any liability to other motorists involved in an accident, but if the items that are being delivered to clients are lost, damaged or compromised you stand to lose future business with your clients.

Talking to several agents over the phone or in person is the most important tip for getting the lowest commercial insurance premium possible. Insurers expect prospective customers to do their pricing on the internet to be reluctant to ask for special discounts. For instance, if you talk to an insurance agent, you can ask if a discount is available if you go a certain amount of time without filing a claim, and you can ask what security measures qualify for discounts.

Most importantly, you can mention quotes you received from other agents, and ask if the one you’re currently talking to can make a better offer. Once they know that you’ve done your homework, and that you’re taking the issue seriously, they’ll be more inclined to offer you Cheap Commercial Insurance.

Over 50’s Life Insurance Plans Good Value?

One of the most popular life insurance plans currently advertised in the press and on televisions are the over 50’s plans or you might sometimes hear them called funeral plans and advertised with the aim of covering the funeral costs on death.

Typically these policies offer a free welcome gift like shopping vouchers when you sign up as a way of encouraging the potential customer to apply and have no requirement for any medicals or medical questionnaires and if you die after one or 2 years depending on the insurer you will get paid on your death the amount your policy is for.

But there is a cost for this, as using the figures for one of the UK’s leading life insurers a 55 year old non smoker taking out an over 50’s life insurance policy paying £6 per month would receive life cover of £1131 life cover. This is where it gets interesting as the same company offers a non over 50’s life plan and the same 55 year old non smoker taking out a life plan over 30 years and paying the same £6 per month would receive £6436 life cover or almost 570% more cover for the same monthly payment!

So if you are in good health it is possible for the same monthly payment your loved ones could receive an extra £5,005 on your death.($8088)

Before jumping to the conclusion that they are not good value for money though a few of things need to be considered.

  1. The over 50’s plan does not require a medical and if you are not in good physical health it is possible you might fail the medical so the over 50’s version might be the only option available to you, and regardless of the state of your health your loved ones will get the money if you outlive the qualifying period.
  2. The over 50’s version continues until the age of 90 and then cover continues for free (If you are lucky enough to live that long it means you have paid out £2,520 premiums but will only receive back £1131)
  3. The under 50’s version stops at 85 so if you die after this date the premiums you have paid will be lost as you will no longer have cover.

So if you are looking for life insurance shop around and consider your options carefully as just because a plan is advertised very heavily on television and in the press does not mean that it is offering good value. The point of all life cover is to provide cash for your loved ones or dependents on your death and the more cover you can get for the same monthly premium the better.

Some Facts About High Risk Life Insurance Plans

A high risk life insurance plan is a special type of insurance designed for those people, who are exposed to risky jobs. For instance, jobs such as piloting plane, scuba diving, car racing, firefighting and stunt jobs are dangerous, as they always involve risk. People doing high-risk jobs often put their lives at risk. They thus require special life insurance packages as compared to people doing an ordinary 9 to 5 job. In addition, people fighting against diseases such as cancer, diabetes, heart ailments and others can buy high risk life insurance plans. Such plans are specially customized to handle the risks involved. Life insurance provider calculates the risk factors by incorporating them into the plan. Generally, people buying high risk insurance pay higher premiums.

Some people carry an opinion that people buying impaired risk insurance plan have to shell more money to find very little or less in return. Although, it is not completely true. People buying such plans may have to shell more money in the form of premiums, but they too gain similar benefits as one gets in ordinary life insurance plan. Following are some facts about high risk life insurance plans:

  • Answer It Right: While asking for a plan, you need to answer some important questionnaires that decide whether you are a high risk customer or not. It is ideal to answer the questions in a straight and simple way. For instance, if rock climbing is your hobby and not profession, then you may avoid talking about it during the questionnaire rounds. Such answers may confuse insurance providers while calculating the risks related to your plan.
  • Specialized Brokers: Always choose specialized broker while choosing an insurance. They are well equipped with knowledge on right policies, which would help you reap all the benefits from the plan. Their advices are indispensable and might help you in saving unnecessary premiums.
  • Beware of NSR: Some providers offer Non-Standard Rates (NSR) to people with high risks. These rates are considerably lower than what you might expect. It is ideal to compare quotes from different life insurance providers before investing in a plan. In addition, you may take help from specialized brokers.
  • Clinical Medical Underwriting: Choose quotes from providers that stick to using up-to-date methods for calculating risks in a plan. Some insurance providers use old formulas while calculating the risks. Clinical medical underwriting is a fair concept, which takes possibilities of modern treatment and facilities in curing your existing disease. This helps dissolve the risks in your plan.
  • Online Quotes: There are different impaired risk insurance plans available over Internet. You may use a good search engine to locate and compare online quotes from online high-risk insurance providers.
  • Limited death benefit: Most people are aware that risk factor plays an important role in deciding the premium rates of your plans. Owing to higher risks, you may require to pay more money as compared to ordinary plans. Also very high risk offer limited death benefits as compared to low risk plans.