Whole Life insurance

As the name implies this insurance policy is taken for the life term of an individual. This policy helps the insured to make a substantial investment. However the returns from a whole life insurance policy are not that high. But companies adopt a different strategy for these policies nowadays. The money invested by the insured earns a higher interest than commercial banks. Moreover the insured is eligible too earn tax exemptions. Another advantage of this policy is that the insured continues to be a beneficiary till the end of his life once he successfully completes paying premiums. The insured continues to be a policyholder without paying premiums thereafter.

Universal Life


The insured is required to pay a limited sum of money for a fixed period. The amount of premium you pay is constant, like that of a term life insurance policy. Similarly the benefits reaped resemble a 'whole life insurance' policy. 
Variable Life Insurance
The insurance company invests your premiums in multiple options. These policies are said to be risky as the returns are based on the performance of your stock in the market. These Policies yield great returns when the stock performs exceedingly well.


Variable Universal Life Insurance


Variable Universal Life Insurance is a combination of universal life insurance and variable life insurance. The insurer pays the premiums as in a universal life insurance. Similarly the coverage falls in line with a universal life insurance. The insurance company uses your funds for investing them in the stock market. The terms of investment in a variable universal life insurance policy are the same as variable life insurance.


Premium Life Insurance


This policy enables you to obtain insurance on payment of premium at one stroke. However the amount is quiet expensive and also decided on the basis of your age. This policy is highly recommended for people intending to invest in insurance for the purpose of wealth creation. This policy does not involve any risks because the payments are made at a stretch and the likelihood of not paying the future premiums does not arise.


Survivorship Life Insurance


This policy enables one or more persons to insure their life. The Premiums for this type of policy is less as involves a minimum of two persons. These premiums are not payable if one person dies. On the contrary the policy remains in force even after one insured dies. The second person must continue to pay the premium and it becomes payable only after his death.


Other types of term insurance policy insurance are classified on the basis of time whether short term life or long term life insurance. Group insurance is another scheme offered by employers to employees whereby the premiums are deducted from the monthly salaries of the employees and paid to the insurance company. In group insurance you have the facility of converting your policy to another which is not available with other insurance policies. So as an insurer you are given the freedom to choose the policy as per your choice. 

Term Life Insurance

Term Life Insurance is a type of insurance policy whereby the insured pays a fixed sum for a period of time. This sum remains constant. The premium charged is very nominal. The Policy holders normally survive even after its expiry unless they are affected by fatal disease or injured in an accident. This policy does not cost much. Once the policy expires the insured is also at liberty to renew the same but he will have to pay the revised rates of premium. Such a change could sometimes be too high. This is one of the drawbacks of this policy. But for this factor, it is economical and highly recommended for the salaried youth and middle men. Whole term insurance policy is another classification in term life insurance. In a whole term insurance the insured pays the fixed amount throughout his life. 


The different categories of term life insurance policy are as follows:


Group Term Life Insurance


This type of insurance is taken by the employer for his employees. The employer either pays the premiums from his kitty or by deducting the appropriate amount from the salary of individual employees. This policy provides lot of benefits but it cannot be relied solely to meet your insurance needs. This type of insurance is gaining significance in the developing countries.


Level term Life Insurance


This type of insurance requires you to select a particular period and pay premiums for the selected period. The policy automatically matures on the attainment of the selected period. Once you select the term say 5 10 or 15 years you cannot revoke it. This type of insurance is ideal for those people who are not able to make long term financial plans.


Permanent insurance

Permanent Life Insurance is an expensive Policy. This Policy cannot be stopped on any occasion as long as the premiums are paid regularly and you don't want to end the policy. In a permanent Life Insurance policy you pay premiums for an indefinite period irrespective of the fact they exceed the amount to be distributed to your dependents in case of death. 


Such surplus will be deposited by the company in a separate account. They will yield higher returns if the company performs well. A share of the profits is periodically dispatched to you. You have the option of raising loans out of those funds or accumulate them back in the account. In case you decide to end the policy you will paid back with the surrender value .If the insurer decides to retain the profits made from your investment with him then you are not required to pay income tax for that amount. There is a possibility like, when you withdraw certain amount of money within the given limit you need not pay income tax for that amount. But when you deposit money in the bank you have to pay income tax irrespective of the fact you utilize it or not.


If the insurer decides to retain the profits made from your investment with him then you are not required to pay income tax for that amount. There is a possibility like, when you withdraw certain amount of money within the given limit you need not pay income tax for that amount. But when you deposit money in the bank you have to pay income tax irrespective of the fact you utilize it or not.


It is however advised not to choose permanent insurance if your motive is solely investments and tax exemptions. In that case it is advised to invest in some form of cheap investments and make use of other financial instruments for saving tax because the basic objective of insurance is neither investment nor tax 
exemption.

Loan protection insurance guide

What is loan protection insurance?




Loan protection insurance is designed to cover your monthly loan repayments if you are unable to work due to an accident, sickness or unemployment (depending on the policy terms). Policies can vary widely between insurers with some companies offering additional benefits such as critical illness and life cover; however, typically, cover is available for a period of 6 -12 months only. Taking out loan protection can provide peace of mind that your repayments will be met in case you are unable to work through no fault of your own, but this cover is optional and is not a condition of taking out a loan. 


What cover options are available?


Policies vary widely between loan protection providers but some of the features available may include: 


Accident and sickness cover: To cover repayments if you are unable to work due to illness or incapacity.

Unemployment cover: A monthly benefit if you are unemployed for a pre-determined period, usually for more than 15 days and up to a maximum of 6 - 12 months.

Hospitalisation cover: Some policies will pay if you have to stay in hospital for a pre-determined length of time, usually more than three consecutive days and up to 365 days.

Life cover: Several loan protection insurance providers also offer a lump sum equal to the amount borrowed under your loan agreement less any arrears. 
Additional considerations when taking out loan protection insurance


When taking out loan protection insurance it's vital to examine the terms and conditions carefully and to be mindful of exclusions.


 For example,


 you may not be able to make a successful claim if you have taken voluntary unemployment or you were dismissed for misconduct. Many providers do not pay out if your circumstances change during the policy term, such as if you reach the age of 65, or if you have a pre-existing medical condition. You should also pay attention to the wait period, which is the length of time you will have to wait before you are eligible to claim and receive a payout, and could be as long as 30-90 days. 


How to choose the right loan protection insurance policy




Loan protection insurance are often sold alongside loans themselves, however, it is optional and you may be able to find more comprehensive cover at a cheaper price by shopping around. It’s often worth applying the same forethought to a loan protection policy as to a loan itself by comparing as many policies as possible before you decide which one is right for you. 


Be sure to enter all your information accurately, as omitting or providing inaccurate information may invalidate your claim. Before deciding to purchase a policy you should ensure that the terms of the policy meet your demands and needs.

insurance company $ 1 billion insurers

Bligh called for insurers to show compassion and flexibility, amid reports some residents faced difficulty with payouts against a damage bill expected to top A$5 billion, with $1 billion of that to be underwritten by insurers.
"It's not in the interests of anyone in our community, including those companies, to stall or delay recovery," said Bligh, whose disaster handling has won wide praise, reviving ruling Labor's flagging hopes of re-election in the state.

Bligh said many Queenslanders had taken out insurance believing they were covered for floods and were now discovering they were not protected.

1 2 Next The flooding, which started before Christmas, continued in other areas of Queensland, with the 6,000 residents of Goondiwindi southwest of Brisbane facing a record flood.

Aerial views of Brisbane showed a sea of brown with rooftops poking out, but the water was receding.

Boats have had to be used in many areas to reach houses, with sofas and fridges floating in filthy water, and residents with no idea when they can return.

"Nobody told me this would become this serious, this terrible," said Su Liu, a Chinese student studying marketing at the University of Queensland.

She had fled her house near the riverside university on Tuesday as water poured into the second floor of her apartment building and was sheltering in an evacuation center.