Availing a proper life insurance policy is an utmost necessity in today’s world. There are various benefits of availing a good life insurance policy. It can well be a financial asset to you and your family. There are numerous companies that offer life insurance, Moreover there are numerous plans too that one can choose from. However, whilst choosing a plan pone must keep certain things in mind. In this article we will discuss the merit of various life insurance policies and how beneficial they are. Nevertheless, what must be remembered is that each individual has different needs and one must go through the terms and conditions of each of the policies before paying for them.

Types of life insurance policies

Term life insurance –

These are the most common type of life insurance policies that are available in the market. They cost much lesser that the other forms of insurance policies. All one needs to do is to consider is the time period for which they are going to need the coverage and pay for that only. It is an utterly economical policy and is helpful for those who are looking for insurance that provides temporary coverage. However, there are certain disadvantages of this insurance policy. Once the coverage expires one has to get a fresh life insurance policy. And aged people find it difficult to avail this loan as companies are reluctant to provide this policy to aged people. One also does not get refunds if they happen to outlive the policy.

Whole of life –

A whole of life insurance is another imperative policy that is of prime importance. This type of insurance policy acts as a good way of saving. It is a permanent policy and you can be sure that you will get the assured amount once it matures. It is definitely a good, mode of saving money for the future. Considering the fragile economic condition of the world it is better to have a whole of life insurance. However, this policy too has its sets of disadvantages. It is expensive and requires one to pay premiums for a long period of time. That can be a financial burden at times. It is also not that easy to find a good whole life policy that easily. One needs to do a good bit of research before purchasing such an insurance policy.

Things to remember

There are certain things that one needs to remember whilst availing a life insurance policy. The first thing that needs to be done is a good research. A good research over the internet is a good way of finding a proper plan. Besides this, one can also resort to the help of professionals who have a fair idea about various plans and policies. They will take into consideration your financial conditions and will let you know, which policy to go with. There are numerous insurance companies; therefore before availing a policy it would also be wise to avail their quotes.

Life Insurance Policy Options For Applicants With Pre-existing Conditions

Buying a life insurance policy can be complex if you have a pre-existing medical condition. Although purchasing a life plan can be a tough process if you have a serious health problem, but it is not impossible. If you are determined to acquire a policy, anticipate that you will need to pay higher premium compared to applicants who are in better health. In addition, expect to get less coverage than what you want. You can obtain a policy through an employer or may want to take into account other options such as getting a savings plan. Below are few of the available alternatives that can meet your life insurance needs notwithstanding your present heath condition:

Guaranteed Issue Life Insurance

One of the options on hand for people with grave health conditions is guaranteed issue life insurance. There are quite a few companies that focus in this sort of policy. Most guaranteed issue life insurance plan have a graded benefit period. If you die in the first two or three years of the policy, your beneficiaries will only collect the premiums you paid plus some interest, but not the entire death benefit. In this type of life plan, premiums can be costly and benefits are minimal. Review your policy if you choose this kind of life insurance.

Rated Life Insurance

When you apply for a policy, there is a segment of questions in the application form regarding your health status. At any rate, answer the questions completely and candidly as these are necessary information that will be used to calculate the risk of your policy. If you die on the early years of the existence of your policy and the insurer learned that you lied or failed to disclose your health condition, the company can reject the claim for death benefit. As you submit your application in an insurance company, they can accept it, decline the application or offer you a rated policy. Accepting their offer for rated policy means that you agree to pay for a higher amount of premium.

Group Life Insurance

Basically, this type of policy is offered through an employer or union. Fortunately, there is no underwriting in this sort of life insurance in view of the fact that the risk is spread across the group. Group life insurance can endow you with much coverage. However, you may not be able to continue if you resign from your company. Ask your employer’s human resources department if the policy is portable. If the policy is portable then you are accountable for the premiums after you leave.

Alternatives to Life Insurance

If you have applied to several insurance companies yet you have not found the policy that really meets your needs, you may think about resorting to other options. The best option to secure your money is open a savings account. If you have a lump sum on hand, you can put your fund on a time deposit account and let it earn interest over time. On the other hand, you can just open a savings account and have you money accessible anytime your family needs it.