Author: Donald Lusan

The 10 pay life insurance policy is getting more and more popular every day. What is a 10 pay life insurance policy anyway? How does this type of life insurance work?…

Ten payment life insurance is a whole life policy in which all the premiums would be required to be paid in 10 years. This is what is sometimes referred to as a limited payment life insurance policy…in this case premiums are limited for 10 years.

Advantages

One of the advantages of owning this type of insurance is that you pay for 10 years and never have to pay another premium. The policy remains in force. The death benefit remains level for the duration of the policy is paid to your beneficiary when you die. This can be paid in one lump sum or in the form of a monthly income. Some people don’t like to think about paying premiums and as a result they may find the 10 pay life insurance policy to their liking.

Disadvantages

As you may appreciate the premiums for this policy can be pretty high. What the insurance company is doing in this case is packing premiums in 10 years that would normally be paid each and every year for as long as you live. If you, however, are fortunate enough to buy your 10 pay life insurance policy from a company that very efficiently keep their costs down while at the same time show a good return on investment you would receive what is called a dividend which among other options can be used to reduce your premiums. Dividends are not guaranteed. All in all it could work out pretty well for you.

Policy Riders

Like most life insurance policies you may add certain riders to your policy. You could add the waiver of premium rider to your 10 pay life insurance policy. If you should become disabled the life insurance company will waive your premiums for as long as your disability lasts. You must be disabled for at least 6 months to qualify for payment with most companies…and you don’t owe the life insurance anything for the premiums they waived during your disability. Whenever you go back to work you would pick up your premium payments again.

Most life insurance companies also offer the accidental death benefit rider. If you add this rider to your 10 pay life insurance policy and you should die in an accident the life insurance company will pay twice the basic death benefit to your beneficiary.

Author: Elizabeth Newberry

We all know that one of the perks of purchasing a term life insurance policy, aside from the fact that it is usually cheaper than purchasing a whole life insurance policy, is that we can choose how long we want the term life insurance policy to be in effect. We get to choose when the term life insurance policy expires, and generally we can choose for our term life insurance policies to last anywhere between one year and thirty years.

If we have such flexibility choosing the length of our term life insurance policies, why should we consider choosing a 30-year term life insurance policy? Well, there is a reason you are interested in purchasing a term life insurance policy in the first place. Maybe you like the flexibility of term life insurance policies; maybe you like the affordability. Maybe you only need life insurance for a certain number of years due to an illness or some kind of debilitating health condition. Maybe you just like the fact that with a term life insurance policy, you know that you are not subject to a “forced savings component” that comes with whole life insurance policies. In any event, you want a term life insurance policy, and by purchasing a 30-year term life insurance policy, you can rest assured knowing that you are going to be covered for the next 30 years.

It’s true that there is no cash value that accumulates with a 30-year term life insurance policy; however, at the end of the 30 years, you can renew your term life insurance policy even if you do not have evidence of insurability – your premiums may increase annually, but you can renew it.

Author: Jason Hulott

Let’s face it – mention things mortgage life insurance – in fact anything personal finance related - and we all know that it is as dull as dishwater. However, without things like mortgage life cover - life could be a lot harder financially.

So, what is mortgage life insurance and what is so great about it?

In a nutshell, in the event of you or your partner dying, mortgage life insurance can mean that the difference between keeping a roof over your head or ending up having your home repossessed – a frightening thought.

And while many of us find organising something like life insurance a sombre business as it makes us face our mortality, it is the fair and right thing to do for your partner and any next of kin to make sure that your finances are in order in the event of your death.

So why do you need mortgage life insurance cover? A mortgage life insurance policy runs for a fixed policy term – most people take it put to run concurrent with their mortgage. Should you die before the end of the term period, the policy can help pay off outstanding balance of the mortgage on your home. This will be in the form of a cash sum.

This means that your dependants will not have the financial worry of trying to find the mortgage repayments in the event of your death. Neither will they have to worry about selling up and maybe downsizing in order to keep a roof over their heads – the last things that you would want to put them through.

The good thing about mortgage life insurance is that you only pay for the cover that you need – so as the amount outstanding on your mortgage decreases, you are only paying out for the level of cover you require.

Mortgage life policies are available on a single or joint life basis. If you have a joint life policy, the amount is paid out on the first claim only. You can decide how long you want the policy to run for – and as we mentioned before, most people have it to run concurrent with their mortgage – and in most cases you can have additional benefits such as critical illness cover for an additional premium.

With critical Illness benefit the policy pays out either on death or on the diagnosis of a specified critical illness (such as certain cancers, triple artery bypass) - whichever occurs first. Check with your chosen insurance provider as to what illnesses are covered, as they can vary from insurer to insurer.

If the policy is paid out before the end of the policy term, it ceases. And if the policy is in force at the end of the term, it will have no cash in value.

If you are looking for mortgage life insurance, then do shop around and do not automatically accept the first quotation you get. Premiums as well as terms of the policy and other benefits can vary wildly from provider to provider and you could be surprised just how cheap mortgage life insurance can be, without any compromise on cover.