Protecting your home

Although you have no legal obligation to insure your home, your mortgage company will want to protect their investment with buildings insurance. However, it is also worth protecting your own investments, so even after you?ve paid off your mortgage, you should ensure you?re financially covered.

Home contents insurance and personal possessions insurance

According to Money Observer, the average home has ?44,000 of contents and replacing this without insurance would be almost impossible for most people. An average premium is about ?150 a year and will provide cover up to ?50,000. The majority of contents insurance policies additionally provide public liability and personal legal expenses and although most people don?t claim on these, they could be very useful if needed.

Personal possessions insurance is worth taking out because often it covers your belongings outside the home, as well as inside the home, and is often incorporated into your contents insurance. Personal possessions insurance is also frequently referred to as all risks insurance and offers cover on possessions that are lost or stolen outside of the home.

Income protection

Income payment protection insurance is recommended by most insurers as the most appropriate way to safeguard your mortgage repayments and any other monthly bills. Kevin Carr, a senior technical advisor at LifeSearch believes that this is a better option than payment protection alone, including accident sickness unemployment (ASU) and mortgage payment protection insurance (MPPI). In a recent statement, Carr revealed that ?the banks and mortgage lenders make huge profits from sales of payment protection. For instance, 17% of Lloyds TSB?s profits come from this.?

Debts ? you don?t want them to haunt you

In addition to safeguarding your income to assist with loan repayments, you may also wish to consider personal finance products such as life assurance and critical illness insurance, which, under certain conditions provide a lump-sum that can be used to pay off the mortgage in difficult circumstances. The choice of life assurance or critical illness cover will depend on personal variables. For example, if you are single and have no dependents, then nobody would benefit from your life being heavily insured. However, should you be diagnosed with a serious illness, a lump sum might be helpful to ensure you maintain a reasonable quality of life. Personal accident plans can be helpful if you believe the specific conditions of the policy would be relevant to you. Examples include insurance providers such as Nationwide who will provide cover of around ?50,000 for the loss a limb, ?10,000 for a hip and ?2,500 for a toe, in relation to a premium of ?4.95 month.

Health insurance / private medical insurance

There are many difference financial products available for insuring your health and they vary in accordance with your stage as life. Examples include critical illness insurance, as discussed above, as well as long-term care insurance and medical insurance, which may also be referred to as private medical insurance or simply health insurance. Wikipedia argues that health insurance is one of the more controversial forms of insurance due to the tumultuous debate of insurance companies remaining solvent, against the needs of its customers to actively protect their health.

One of the main problems insurance companies face is the issue of ?adverse selection?, a term used to describe the increased likelihood of sick people signing up for health insurance. Health insurance companies argue that those people seeking health insurance are often those with existing medical problems, those who are much more likely to have medical health insurance problems in the future and those who may engage in ?risky behaviour? such as excessive alcohol consumption and smoking. Products such as health insurance tend to fuel fiery debates of the moral argument of health insurance costs and the question that if people pay for health insurance, are they more likely to lead a ?risky? lifestyle in the knowledge that they are covered.

Travel insurance

Travel insurance isn?t complicated, but there are a few considerations you should bear in mind. Travel insurance typically covers issues such as cancellation, loss of baggage and medical expenses. However, Money Observer recommend better value by including baggage cover in your personal possessions insurance and not as part of your travel insurance policy. The consumer financial magazine also recommends extending your motor insurance ? to ensure your car is covered when driving abroad.

Moneynet, a personal finance consumer information site, makes the point of shopping around for your travel insurance and avoiding the high street travel agents. According to their insurance guide:

?Since January 2005, it is especially important to avoid the travel agents when buying travel cover; from that date, the insurance industry falls under the regulation of the Financial Services Authority, giving that body the ability to investigate and take action on behalf of consumers. Tour operators and travel agents, however, are not subject to this regulation, so if you have a complaint about travel insurance purchased from a travel agent, the FSA and the Financial Ombudsman Service will not be able to intervene on your behalf.?

In a recent press release, moneynet also blasted high street travel agents for exorbitant insurance, stating that, ?major high street players like Thomas Cook, Thomson and Travelcare, which between them account for around 70 % of the travel insurance market, levy premiums that are typically twice as expensive as buying cover online.?

Weddings ? insure your finances for better and for worse Insurance may not be romantic, but it?s important and if your wedding doesn?t go according to plan, it can be very expensive. Wedding insurance will typically cover dress damage, loss of rings and retaking the photographs if anything goes wrong with the photographer or prints.

Insurance doesn?t always come with guarantees, but shopping around to make sure you have the most appropriate protection for yourself, your partner and your family will give you a certain amount of peace of mind.

Disclaimer:

We only show you the way ? it is up to you to follow the path of enlightenment. All information, is intended for general information only and should not be construed as advice under the Financial Services Act 1986. You are strongly advised to take appropriate professional and legal advice before entering into any binding contracts.

Recommended resources:

Moneynet insurance guide

Money Observer(October 2005)

Rachel lives in Edinburgh with the teenage mutant ninja turtles. She also writes for the personal finance blog Cashzilla ? locally known as Scotland?s favourite personalfinanosaurus.

Shopping online for life insurance quotes is becoming increasingly popular in the UK and throughout Europe. No longer do we have to spend hours on the telephone – much to our employer’s disgust – divulging our personal details, only to find that the quotes from the life insurance companies are too expensive or don’t match our needs. Neither do we have to concern ourselves with taking time off work to make appointments with life insurance providers, subjecting ourselves to hours of sales talk. Of course, all of these options are still available to consumers should they prefer them, but many are now voting with their mouse and turning to online sources for life insurance quotes.

Tracking down the best quotes for life insurance

Obtaining life insurance quotes online is quick and easy. We can start our search for life insurance at our convenience any time of the day or night. If we want to find life insurance quotes at 3am in the morning, then we can do! Searching online for quotes also presents us with a great deal of choice. Almost all of the familiar names in the life insurance market have web sites on which their life insurance products are offered, and there are many less familiar names too.

For the consumer, this is great news, as the more life insurance companies there are offering their life insurance products on the Internet, then the more competition there is and so the better the price. When hunting down life insurance, or any type of insurance, it is always best to get a range of quotes as premiums can vary quite dramatically – sometimes by 300% or more! The Internet provides consumers with an efficient tool to do just this, plus they get to read about the benefits of each life insurance plan in the comfort of their own home first.

The quotes process

Most life insurance companies will have links to online quotes request forms. Consumers looking for life insurance quotes will be required to complete the form and submit it online in order to receive quotes. The online forms are generally uncomplicated, often taking only 5-10 minutes to complete.

Once the form is complete it can often be submitted online to the life insurance company. Some insurance companies will come straight back to you with an instant quote, others will revert back with a quote within 24-72 hours, either by e-mail or by telephone. Many companies also back their insurance quotes up with an official quotation by post.

About The Author
Gary Tallon has been writing in the finance industry for over 10 years and is currently working with life insurance http://www.powerinsurance.com for PowerInsurance.com.

Life Insurance is one of those topics that most people just hate to deal with. The typical problem with life insurance is that there are a wide variety of options and many times the options are very complex. The goal of this article is to explore some of the critical aspects of life insurance and provide a logical foundation you can use to help you decide which type of life insurance policy provides the best option for you.

In the event of a tragedy, life insurance is all about replacing your income for your loved ones that depend on your income. If you do not have anyone who depends on your income there is typically not a compelling reason for you to have a life insurance policy. Therefore, before you can select a type of life insurance policy it is highly important you consider all the dependents that are supported by your income. A dependant could be your children, a spouse, a parent, or grandparent.

After determining your dependants, it is time to select a type of life insurance policy. Life insurance policies come in many types and each year new types of policies are introduced. The broad categories include term life insurance, whole life insurance, universal life insurance and variable life insurance.

Term life insurance normally provides the best value and coverage option for most people. It differs from whole life insurance, universal life insurance and variable life insurance in that it can be up to 10 times cheaper, but if you do not use the coverage before it expires there is no redemption value for the money that you paid into the insurance policy. On the other hand, whole life insurance, universal life insurance and variable life insurance are known as cash policies because they provide an investment component and other benefits that can provide income to you in your retirement years.

The main consideration when selecting between term life insurance and a cash policy like variable, whole life or universal life is typically focused around your objective. For instance, if your objective is to get the most possible life insurance coverage for the least possible cost you will most likely want to select a term life insurance policy. On the other hand, if you desire only a little coverage but would like future investment income a variable, whole life or universal life cash policy may work well for you. When selecting an objective you should highly consider your loved ones as your principal concern. This will ensure that your loved ones do not have to struggle because you were underinsured.

Once you select a type of policy you will need to consider how much coverage to get. This decision should focus highly on how much your loved ones will need to comfortably live without your income. In making this decision ensure you think of long term expenses, including college expenses, mortgage payments, weddings, private school tuition, credit card debt payoff, etc. In selecting the amount of coverage every persons situation is unique, but a good rule of thumb is to consider for the worst in setting how much to insure yourself for. For instance, if your children are your primary dependants, you should assume the worse. A worse case situation would be a tragedy happens to you and your spouse at the same time and your children are left without parents. You may say to yourself that this will never happen, but every year couples leave their children behind due to unforeseen tragedies such as car accidents.

Since cash life insurance policies are much more expensive than term life insurance one last consideration is that you may be better off selecting a term life insurance policy and investing the cash savings yourself in a tax free Roth IRA or other investment account. Remember a life insurance policy is primarily to protect yourself in the event of a tragedy not to invest for your retirement. There are far better way to invest for retirement which is why term life insurance may offer you the best coverage for the value.

About The Author: Jay Fran has a background in financial services and enjoys helping buyers of financial services make the right decisions. Jay is also an avid Suzuki motorcycle rider and the creator and main publisher at http://www.motorcycle-financing-guide.com, a website specializing in assisting motorcycle buyers in making the right decisions pertaining to Motorcycle Loans. If you are in the market for a motorcycle, be sure to check out motorcycle-financing-guide.com. You will gain valuable insight on how to make the best decision for you in obtaining a motorcycle loan.

The original purpose of life insurance was to provide for your family in the case of your death. While this purpose is still the most potent reason to take out a life insurance policy, there are a number of other ways that life insurance can be used to benefit you and your family, even while you are still alive.

The key is in choosing a whole life policy rather than a term life insurance policy. A whole life policy is sometimes called ?permanent life? insurance. It will cover you throughout your life rather than just for a specified amount of time, or a term. There are many advantages to a whole life policy over term insurance, and many ways to make a whole life policy affordable.

The cost of a whole life policy is based on the ?face value? of the policy ? the death benefit that it will pay if the insured dies. A whole life policy that will pay $100,000 if the person insured dies has a face value of $100,000. As you pay premiums on your life insurance, those premiums accumulate into a ?cash value? ? the amount of insurance that you?ve paid into the policy. Most companies base that figure on making payments for 100 years, which is the point when the face value and the cash value will be the same.

Generally, your whole life insurance premium will rise as you get older, reflecting both the added risks that come with age and the fact that your income will also likely rise as you grow older. This is often the most affordable option for young people who are just started to rise in the work world. You?ll pay lower premiums at the start of your whole life policy, and they will gradually rise as you age.

Most life insurance companies offer the option of level premiums based on averaging out the cost of your whole life policy over the entire life of the policy. In that case, your premium will never change, but you will pay higher premiums early on in the life of your policy. If this is affordable for you, it?s a good option to lock in a premium amount that won?t leave you facing the prospect of losing your whole life policy before it matures because the premiums have become too expensive to maintain.

If you carry a whole life policy, you?ll have the option to borrow against the cash value built into your policy under certain conditions. You can, if necessary, cash out your policy earlier, but a better option is to take out a loan from the insurance company against the accumulated cash value in your policy. It can be used to fund your children?s education, to deal with unexpected expenses, or even to take a dream vacation. While you?ll have to pay it back, it will be at much more affordable interest rates than you?d pay a bank.

If you have the option, an affordable whole life insurance policy can be one of your best hedges against unexpected expenses and retirement.

To view our recommended sources for life insurance, or to read more articles about life insurance, visit: Recommended Life Insurance Companies Online.

Carrie Reeder is the owner of eZerk, an informational website with articles and the latest news about various topics.

I have always been a fan of using life insurance as a way to make a charitable donation. It provides benefits to the organization you are supporting in both the near and short term. Once it is set up, administration is easy for you and the organization.

Life insurance would probably be used more often for this purpose if it was easier to understand. There are variations, but probably the most straightforward is to purchase a life insurance policy from an agent. A type of life insurance called whole life insurance must be used for this purpose. Term life insurance is ideal for other situations, but doesn?t work for this application. Your agent can explain why this is the case. Life insurance rates vary, so it is a good idea to get a life insurance quote from a few different agents, or check life insurance rates online. Age, health and lifestyle all have an effect life insurance rates.

At time of purchase of the life insurance policy, you should designate the organization you are supporting as the beneficiary of the insurance proceeds. This means that when you die, the life insurance benefit goes to the charity. Once you purchase the life insurance policy and it is issued, you must then assign ownership of the life insurance policy to the organization. You continue to make the premium payments to the life insurance company, who will issue you an annual tax receipt that can be deducted as a charitable donation.

In summary, you receive the same tax benefits as if you made a donation, the organization accrues equity in the life insurance policy that it can use at any time, and when you die, the organization receives the life insurance proceeds. These final proceeds may be far more than the sum of payments you have made. As mentioned earlier, there are a few variations to this concept and regulations regarding tax deductions and other tax considerations vary from country to country, so check with a life insurance agent or do some more research about life insurance online before you proceed.

Ron Strand is a college instructor and consultant. He has written some of his 30 years of fundraising experiences in a new website, Ron’s Fundraising Ideas.

Insurance is often the safe and most risk free approach to investment. Most people think they are sufficiently insured when they are not. Hardworking people spend a lifetime earning what they have. Our personal wealth is a coupling of family and our income early potential. Individuals which find themselves at the head of a household know the stress and pressure of having other depend upon them for their well being and income. Death often occurs unexpectedly and without notice. Especially true when accidents and sudden diseases are the source of death. It is important to make sure that you have enough insurance to cover your family’s expenses in the event that you are no longer able too. Have you thought about how your family will survive not just emotionally but financially without you?

Insurance can help preserve your families lifestyle and should be incorporated into any comprehensive financial investment plan. Most people avoid the issue of life insurance, thinking about one’s own death is never pleasant but having the peace of mind to know that your family is taken care of is well worth the effort. Life insurance is a low risk way to invest money overtime. Most people decide upon term life insurance because they do not realize there are other investment based life insurance policies available. Term life insurance only pays out one lump sum after your die. Financial experts believe that an individual should have a life insurance policy which is at least 10 times their annual income. If you are interested in purchasing insurance there are several online life insurance calculators which offer a fairly accurate life insurance analysis. The cost of insurance is based on the level of risk taken by the company which is giving the insurance. Factors which effect price are age, health, participation in hazardous leisure activities, or addictions. Life insurance can be taken out on just about anyone including the main provider of the family’s income, the homemaker, the stay at home parent, anyone with dependents, anyone who has significant debts or assets.

Speak with your financial advisor about including life insurance as part of your stock portfolio. Your advisor will you calculate exactly how much insurance you need for your particular situation. Life insurance can be taken up either inside or outside superannuation. Insurance within superannuation has the benefit of premiums being tax deductible. This is especially useful for anyone who is self employed or someone who has a spouse that has a low income. Purchasing coverage through a superannuation funder is a great way to save on life insurance premiums because it is not a separate insurance policy. Those who are self-employed can claim a tax deduction on their super contributions, regardless of whether the contribution is used to purchase investments or insurance. This tax saving option is ideal for those who have a young family and are seeking increased security and financial protection as the amount saved through deductions and rebates can be used to increase your level of insurance cover.

Visit the Global Investment Institute and signup for our free Investing For Beginners E-Course at http://www.Global-Investment-Institute.com

Investment webmasters or publishers, please feel free to use this article provided this reference is included and all links remain active.

To file a claim with Critical Ill or Life Insurance companies, the recipients often need to mail in receipts of medical proofs and the claim form itself. The policies are valid in most instances, providing that after your prognosis you received report that you have ?14 to 28 days? to survive. Once the company is accepted and evidence is clear that you are in fact the policyholder, that your were born on the said date, and that you have received medical treatment from an expert in the field of your condition, and once, all verifications are made, you will receive a large lump ?tax-free? sum of cash.

Can I work still, or do I need to stop work after filing a claim? When illness attack the patient may need to stop work, or else the patient can work minimal hours. Once the patient receives, the lump sum provided by the policy the money belongs to you and if you continue to work, it will not affect your claim. Statistics claim that ?35? percent of men and nearly 50% of the women are increasing contacting cancers, and only live for around ?5 years.? While the statistics reveal further, that ?1 in 6 women? will experience Chronic Ill and that ?1 of 5 men? will undergo Chronic Ill before the giving up work. Therefore, Critical Illness Coverage is important, in that if these statistics are accurate, then debtors are in the making if coverage is not available. This will increase the already existing problem and even if you can work after filing a claim, there is no guarantee how long that work will last.

It makes sense to combine Life Insurance Coverage with Critical Illness Policy. The combined coverage will make a way out when a person becomes ill. While, Critical Illness Coverage will often cover major illnesses, Life Insurance may offer a way out when the ill is not lingering. Since, new medical developments are underway creating solutions for cancer treatment, AIDS, and other terminal illnesses; we can never tell which plan could most benefit us in the event we fall ill. In other words, if you have terminal illness and treatments become available, who knows if Critical Illness plans will work in the same manner. Since, we can never tell we must also learn more about Life Insurance policies, and what the policies will cover.

Life Insurance

Life Insurance Coverage offers a way out in some instances when a patient is temporarily out of work. The plans may offer large ?tax-free? cash sums to tie the family over until the patient if well. If the patient is critical ill then the coverage will provide additional burial funds coupled with the funds received from Critical Illness Coverage to help the family out. There are several types of plans available; therefore, it makes sense to shop around looking for policies that you feel may be needed later.

Things to consider when searching for Life Insurance and Critical Ill policies should include health. To consider your health your must consider hereditary conditions, pending conditions, and possible conditions. Does my family history have histories of heart attacks, strokes, mental diseases, or other types of diseases that could affect my health later? If so, what medical treatments will I need and how much will the treatments cost if I should befall the illness? How is my health now? Do I consider myself a risk of poor health in the future? What if my condition causes me to loose my source of income? Is it possible I could get into a car accident that will put me out of work permanently? These are a few questions to consider when applying for Insurance. You may also want to consider the coverage needed and the price you can afford for the policy? Do not forget to consider the premiums, since the premiums will determine cost.

Finally, health is important, since we need good health to function properly in our daily lives. Furthermore, at any given time anyone of us could meet the nasty illnesses that plague lives everyday. Therefore, if you have coverage now, later when you file a claim, the money will be there when you are in need.

Authored by Michael Bens. For more great information about all forms of insurance visit our free online insurance publication the Gabae Insurance Source to find the information you’re looking for!

Also you can check out Gabae Insurance Articles to find the articles’ you’re looking for!

You?ve heard a lot of talk about cheap term life insurance and you?ve decided that it?s something you need to start investigating. That?s definitely a step in the right direction. Like so many other tasks in life, you?ve turned to the Internet to get the ball rolling.

You?ve filled out numerous online applications for cheap term life insurance but as the quotes start to come back you?re realizing that term life insurance isn?t really all that cheap. What?s going on?

Your health matters

A couple of factors might be causing higher than anticipated term life insurance costs. First and foremost is the general state of your health. Getting an online quotation is one thing, but pricing an actual policy after the life insurance company has reviewed your medical history is really what determines your true costs for life insurance.

Very rarely will an individual get life insurance without first having a medical examination. Getting a policy through your place of employment is the only time this may happen, but generally in this situation, your coverage will be minimal.

If you?re looking for cheap term life insurance that?ll actually be of financial value after you?re gone, you?ll likely have to supplement the policy you get through your job.

Let?s take a look at the logic for a moment. If given the choice, life insurance companies would select as customers only those whose health is excellent. Excellent health means you should live longer. When you live long there is less chance that the insurance company will have to pay out your policy?s death benefits.

In other words, if you outlive your cheap term life insurance policy, the insurance company comes out ahead. The company has collected your premiums, but it did not have to give any money back to your beneficiaries.

The categorization system

When determining the true cost of a policy, life insurance companies use a classification system. Individuals with a clean bill of health generally get classified as ?super preferred? and get the lowest-priced premiums. They?re the ones who get cheap term life insurance. Several more categories exist and, unfortunately, each category comes with a progressively higher premium.

Some of the health conditions that raise a red flag in the eyes of an insurance company include use of tobacco products, being overweight, high cholesterol, high blood pressure, and a history of cancer, stroke, diabetes, heart disease or other type of chronic disease in your family, even if you do not have any symptoms of these conditions.

If you do have symptoms of the above conditions, you should expect that cheap term life insurance isn?t something for which you?ll qualify.

The types of medical conditions listed above are more likely to cause premature death in an individual. If the insured individual dies during the life insurance policy term, the insurance company will have to pay out death benefits. And that?s what life insurance companies look at when deciding whether or not an individual qualifies for cheap term life insurance.

Find Cheap Term Life Insurance in the UK. You will not believe our low rates.

This article comes with reprint rights. Feel free to reprint and distribute as you like. All that we ask is that you do not make any changes, that this resource text is include, and that the link above is intact.

If you’ve spent any time at all watching television recently, you’ve probably seen commercials advertising low-cost life insurance with guaranteed coverage that anyone can afford. And, if you’re like many people, those commercials do get you thinking about the fact that you don’t have life insurance yet, but you continue to procrastinate. (After all, you’re going to live forever, right?) Or, maybe you think you can’t afford the premiums or that you won’t qualify for the rates advertised because of a medical condition, so you put off checking into your options.

The truth of the matter is that you DO need life insurance, and there really is affordable coverage out there to meet your needs. There are two main types of life insurance, whole life and term life. The less expensive of the two is term life insurance.

What is Term Life Insurance?
When you buy term life insurance, you’re purchasing a policy that will provide protection for a certain period of time. A ‘death benefit’ is paid only if the person insured dies during the term of the coverage. Most insurance companies have set coverage period lengths you can choose from. These coverage periods could be as little as one year at a time, but most often are offered in five or ten-year increments.

As the policyholder, you get to decide who will receive the benefit payment in the event of your death. You should know, though, that some states and insurance companies have requirements concerning who can or must be designated as the beneficiary. For example, certain states require that your spouse be the beneficiary if you’re married, and some insurance companies will not allow you to name your pet as the beneficiary (too bad for Fluffy, you won’t be setting her up with a golden doghouse and steaks for life!). However, within limits, you can leave the benefit to anyone you like or to your estate to be divided up according to your will.

The biggest downfall of term life insurance is that you have to die before your family gets anything out of it, because the benefit is only payable when the policyholder dies. The policy itself has no cash value, and you can’t borrow against it like you can with whole life policies. Another negative aspect of term life insurance is that it becomes more expensive as you get older. And, speaking of age, you don’t have the right to continue the policy regardless of your age the way you can with whole life.

You might be familiar with term life as a benefit that employers offer to their employees, but that doesn’t mean you can’t purchase an individual policy for yourself. On the contrary, many insurance companies offer individual term life coverage. The only trick is to determine what type of term life insurance is best for you.

What Kinds of Term Life Insurance are Available?
There are three different kinds of term life insurance. Each of them has unique aspects that make them the best choice for certain situations. The three types of term life are:

Depreciating Term Life: Depreciating term is used as a means to cover a mortgage loan in the event that someone dies prematurely. The amount of the benefit goes down, or depreciates, as the amount owed on the mortgage is paid off (a slow and painful process…). This is an excellent option if you’re concerned about your spouse’s ability to pay the mortgage payment after your death. The popularity of these plans has waned because level term life policies are generally cheaper.

Level Term Life: Level term policies are available in increments from five to twenty years. These policies are a good choice for anyone who needs relatively cheap coverage for a longer period of time than just a few years. The cost of the policy will be a bit more expensive than annual renewable policies for the first few years, but will then stay level for the term of the policy. Most insurance companies offer policies that once issued, premiums remain level regardless of the insured’s health status.

Annual Renewable Life: Annual renewable life policies must be renewed every year, but they’re a good, inexpensive option if you just need a few years worth of coverage to cover a short-term expense, such as college tuition for a child (which is only slightly less painful than paying the mortgage!).

Who Should Purchase Term Life Insurance?
Term life insurance is an excellent option for anyone who simply cannot afford the higher premiums required by whole life insurance.

One popular use of term life is to help young families to cover expenses if one of the parents passes away. Couples who are just starting out and have young children may be unable to afford expensive whole life policies, but it’s not wise to leave one spouse without a means of covering financial burdens if the other should die?especially in today’s two-income world. The benefit can help the spouse to pay the mortgage or care for the children on his or her own.

Another good reason to purchase term life is to cover your business debts. If you’re the owner of a small business and have taken out a business loan, you may want to consider purchasing a term life policy to pay that loan in case you die.

What Options Should You Look For?
Just like the car sitting in your driveway, life insurance policies come with options (and just like the options in your car, these options may raise the price of the policy). Term life options that may be available include:

Conversion: This option allows you to convert the term life policy to a whole life policy at the end of the policy’s term.

Automatic Renewal: Some companies offer an automatic renewal of the policy without requiring a medical examination.

Premium Waiver: Your insurance company may allow you to waive, or not pay, the premiums if you become disabled. The policy remains in effect just as if you were paying timely premiums.

Accidental Death Coverage: If your death is the result of an accident, the benefit paid increases, and may even double.

Regardless of your situation, there is a life insurance coverage out there for you. Take the time to request quotes and speak with insurance professionals who will be able to answer your questions. The time you spend finding a policy that meets your needs could save someone you love a lot of hassle and worry when you die.

Gary Stuart launched his career in insurance in the mid eighties. With only a telephone book and a pen and pad, he began building his agency one ‘cold call’ at a time. His specialties were group health, disability, whole life, term life insurance and more. At the start of the new millennium, Gary translated his years of experience into developing a web site that explores nearly every aspect of health and life insurance. Gary recognizes the importance of educating his customers before they make that all important insurance purchase. You can visit his site anytime at: http://www.accuterm.com

Term life insurance can offer protection for a small business and its owners in surprising ways. If you own a small business, you probably pay property and liability insurance, and are protected against fire, theft, flood and other disasters. But what would happen if you or one of your key employees was suddenly unable to work due to disability – or death? If something happens to you or one of your partners, what happens to your business? Who will pay outstanding business loans and other obligations?

That’s where term life insurance comes in.

As your company grows, there are very likely to be one or two key people without whom you’d find it difficult to function. Besides you, there may be an accountant who understands the books inside and out, or the sales manager who drums up most of your sales. By taking out a term life insurance policy on each of those people, you can insure your company against the losses it would inevitably face if one of them were to become unable to work because of death or disability.

Why term life insurance? Especially for a young company, the lower premiums and limited term of coverage make more sense. As the company grows and becomes more stable and successful, a term life insurance policy can often be converted to a whole life key person policy – a life insurance policy that is specifically designed to cover the loss of a key person in an organization.

A term life insurance policy can also be used to cover partners in a business who agree to a buy-sell arrangement. In this case, if one partner dies, the death benefit is used as a ‘buyout’ to purchase his half of the company from the family. That way, the family of the deceased partner isn’t stuck with a business in which they have no interest, and the surviving partner isn’t forced into accepting the family as a partner.

Sometimes term life insurance isn’t the best option. A whole life policy, for instance, allows you to use your investment in the policy to finance and fund projects, can help provide the basis for a retirement plan, or provide a cushion for the business to borrow against for expansion.

Whether you choose whole life or term insurance, though, key person insurance is a protection that your company shouldn’t be without.

To view our list of recommended Life Insurance Companies, visit this page: Recommended Life Insurance Companies.

Carrie Reeder is the owner of eZerk, an informational website with articles and the latest news about various topics.