Life Insurance Policy Information: What you should know
What is life insurance?
Life insurance works to serve as a safety net for you and your family. It’s not like a retirement plan in that the rewards of the life insurance are not for you but for your family and your beneficiaries after you pass away.
The value of life insurance can vary from person to person. If you are someone with a big family, and you are the sole bread earner in the house then life insurance might be a good idea for you. This life insurance would help insure that your children can attend good colleges and your family can continue to live in the same house and in general it serves to make sure that the family is financially stable for a period of time after your death. Consider another case where you are running a lucrative business that would continue to pay for your family’s needs even if you were to pass away. In such a case you might not need life insurance at all and you are better of investing the money in the business.
Purchasing life insurance is entirely up to preference and circumstances as we discussed above. There are various different types of and forms of insurances that are available. There are cheap and expensive insurance plans and short term and long term plans as well. In most cases it is advisable to buy a variety of various different insurances as well.
How much does life insurance cost?
In order to determine the cost of your life insurance it is vital to first decide what costs and for how long do you need the life insurance to cover. For this you need to go through your daily and monthly expenses of your family and see how much money they would need. Go through the various house bills such as electricity bills, water and gas bills as well as the costs of your child’s university. Once you have an idea of the estimated costs you are in a good position to decide on the insurance plan that is best for you.
Types of insurances
There are a few types of life insurances plans the two most important ones being whole life insurance and term life insurance. When you’re looking for insurance its vital to consider both these options and perhaps even try both.
The whole life insurance is a permanent plan which means that there will be definite payout at some point in time (usually at death). Since you’re paying for this for a long period of time on a monthly basis this allows you to accumulate a large sum of money that can be useful for your beneficiaries after you pass away. Furthermore since you have these funds being accumulated, if you ever run into an emergency where you require quick funds, then you can take out a loan from yourself instead of having to go to a bank! How convenient is that? While whole life insurance has its positives, it’s very expensive and most people cannot afford it because it puts a lot of stress on their income.
Term life insurance is a much cheaper and more popular form of insurance. In this case a person pays smaller monthly installments in exchange for a highly rewarding amount of money in return in case of an accident. This means that you will not get your money back most of the time but it is a good small investment to make in case something bad does happen!
Life insurance is a must for the future wellbeing of you and your family. There are a variety of options, plans and policies out there and it’s important to get one which is best suited to your needs.
Equitable Life Insurance
The equitable life insurance was the old name of an insurance company that is currently known as AXA equitable life insurance. The primary function of this company becomes apparent within its name and it is one of the top rated insurance companies around the globe. The company is based in the US and has been in the field of insurance for over a hundred and fifty years. Recent studies show that the company has assists that value of 500 billion dollars!
The company provides a wide variety of life insurance plans and policies which are suited for people of all income levels. This company is certainly something you want to look into if you are not sure about your insurance. Either you don’t have insurance or if you are unsure about your current insurance plan, then this is definitely the right choice for you.
Now that you have decided to get quality life insurance it’s important for you to decide how much you really want your insurance to cover. Consider for a moment that you were to die tomorrow? You family would be in a lot of emotional trouble but one thing you can do for them is make sure that they don’t have to go through a financial crisis as well.
This is a good time for you to review and go over all the house bills and expenses. You should go over your power, water, and gas bills and also other house hold expenses. If you want your kids to be able to attend good universities after you’re gone then you might want to factor in the tuition costs for the university as well.
Now that you know your estimated monthly or yearly costs, you want to decide on the time frame that you want the insurance to be able to cover. Insurance is to provide stability to your family and beneficiaries for example in the case of your death. It’s not meant to be paid for as long as your family and loved ones can get back on their feet. So know how much money in total you need in the form of insurance.
Types of insurance
AXA Equitable Life Insurance will provide you with two types of insurance plans. These are the whole life insurance and the term life insurance. The one you’re looking for is whole life insurance. Once you get a whole life insurance plan you would have to pay monthly payments or premiums. These premiums will depend on you and depends largely on the total estimated costs that you finalized in the above steps. The whole life insurance will allow you to accumulate a large sum of money over the course of your life. Furthermore if you ever have an emergency or have an urgent need for funds, you can also take a loan from yourself! Instead of having to run to the bank you can ask the company and withdraw from your own funds and then eventually return it back. Obviously, withdrawing from your funds will mean that there is a lesser amount that you can leave behind for your beneficiaries.
The company will provide you with a wide variety of options and plans that you can choose from. In some cases you can even draft your own plan that is best suited for your needs. It might be worthwhile to talk to your own personal consultant before making any such decision. AXA Equitable Life Insurance is the way to go. Whole life insurance is the final act of love that you do for your family ad your loved ones and this company can help you do that correctly!
Why you need a life insurance policy. Consider for a moment if you were no more with your family. How would your family live? Of course they would be sensitively overwhelmed but what kind of a financial position would they be in? Are you the head of the family and their only source of income? Do you have young children who aren’t working yet? I think these are some of the questions that you need to ask yourself before deciding on whether you need a life insurance policy or not.
I feel there’s lots of skepticism regarding life insurance and one of the reasons for this is because people are often mistaken with the true concept of a life insurance policy. People often confuse a it for a retirement plan. A retirement plan gives you monthly or yearly rewards after you retire. Life insurance is something that will only be paid to the person’s family after his or her death!
The value or importance of life insurance varies from person to person, case to case. Consider you are the head of a large working class family and you have lots of dependent children. In this case you probably want some sort of a life insurance policy which would ensure that your family has some financial stability in the case of your unfortunate untimely death. Now consider a case where you are single and have no children and no dependents at all. A life insurance might seem useless to such a person because he or she has no beneficiaries and therefore such a person is better off without such a life insurance policy. Consider one more case where you have a running business which is a constant source of income for you and your family. In this case the business would continue to thrive and make money even after your death. In such a case your family would remain financially stable even after your death and therefore a life insurance policy seems pointless. In such a situation a person is better of investing his or her money into their own business.
In some cases people also like to donate money to various different institution or charities. It’s really hard to donate a lot of money in a lump sum to a noble cause. So some people choose to get a life insurance policy and can therefore take out a small fraction of their income which keeps on adding up throughout the course of their lives. By doing this they can insure that a large amount of money can be saved up and this could then be donated to different charities and institution of their choice after they pass away.
But before you decide what you want to do with your life insurance money, there are also various policies which might make it necessary for you to try and ensure the future of your beneficiaries. If you have any outstanding debts, then in that case your insurance money will be used to pay off the debts first.
In the end it’s entirely up to you to decide if you want a life insurance policy or not. If you feel your family is financial stable and will still be in a stable financial position after you pass away, then it is not necessary to have life insurance. However it never hurts to be on the safe side. In the case where you feel that there isn’t much need for you to get life insurance you can always get a policy plan which doesn’t require you to pay large sums of money. This could serve as a backup plan and you wouldn’t have to pay a lot of unnecessary money as well.