Life Insurance ? Wise Investment In Personal Finance Or Excessive Caution?
Life insurance is typically taken out to offer valuable financial protection for your family in the event of your death, upon which a payment is made to your financial beneficiaries, heirs or family members. The extent of this payment will depend on your insured sum and earnings. Life insurance and life assurance may be interlinked in advertisements, though bear in mind the two policies are different. Life assurance is a form of financial protection which is also an investment, as you should always get a pay-out at the end of the term of the policy. Life insurance on the other hand is simply financial protection for your family, avoiding the issue of debt in the event of your death.According to an article by the Fair Investment Company, the British life insurance industry shrank to almost half the size of the pensions industry last year and according to the Association of British Insurers, less than 50% of UK households hold a life insurance policy.In their most recent newsletter about this issue, the Association of British Insurers found that 25% of mortgage holders had insufficient life insurance to cover their debt.
The ratio of new life insurance policies to new mortgage loans was apparently 68% in 1994, but by 2004 this had dropped by half to 33%.The absence of mortgage life coverage poses a serious risk for the dependants of homeowners. If banks were to embark on wide scale repossessions as a result of this absence of life insurance, this would impose a risk on their loan books and reputations. The Association of British Insurers also state that one of the main reasons behind the increased gap between mortgage loans and insurance is the emergence of people remortgaging their property to take advantage of equity release through a rise in value, without insuring their borrowing. In their report it was stated that around 63% of new mortgage loans were remortgages or further advances, compared to 34% in 1994. Egg reported at around the same time, that three out of four of these new loan homeowners had no intention of insuring this additional debt.
This is particularly worrying if couples are remortgaging their property later in life ? towards retirement, given that should anything happen to the breadwinner, the partner would be left with significant debts without the capability of paying the loan back.Reasons for the downward trend in life insurance take-up include:* Relaxation in lending policy ? increased competition in the mortgage market means that lenders are not forcing life insurance policies on their customers* High house prices have stretched homebuyers, in particular first time home-buyers, in terms of their mortgage repayments, that the additional costs of a life insurance policy are deemed too expensive* There are more households with no dependents If you're interested in researching a life insurance policy, make sure you shop around. UK websites such as http://www.moneynet.co.uk provide life insurance and life assurance information guides, as well as providing price comparison research for the different products. In the states, the website LowerMyBills.com also offers a similar service.Because of the various factors listed above, people have also become less familiar with the term life insurance and without the awareness there is little recognition of the importance of this type of insurance. However as speculation increases that UK households are not coping with their debt, so should the awareness of life insurance as an essential product in the personal finance portfolio..
Rachel writes for the personal finance blog Cashzilla: http://www.cashzilla.co.uk Rachel is a disillusioned, disaffected and broke graduate, exploiting new media for financial therapy. ;-) E-mail: rachel@positiveinterest.com - Phone: 0131 561 2251Different Kinds of Term Life Insurance
If you're considering term life insurance, keep in mind that there are many different kinds of term life insurance. This includes decreasing term insurance, increasing term insurance, increasable term insurance, decreasing term insurance and renewable term insurance among many. It's important to find the type of term life insurance that fits your needs best.
Decreasing term life insurance reduces the coverage of the policy year on year. The policy holder usually requires the cover for a loan repayment such as a mortgage or to cover a potential inheritance tax bill.
Increasing term life insurance is just like basic term life insurance, except that, as the name suggests, the level of coverage increases. Premiums increase along with the level of coverage as well.
Increasing term insurance is suitable for long term insurance because increasing prices reduce the value of a fixed level of coverage over the period of the policy.
Increasable...
Life insurance > Different Kinds of Term Life Insurance
What is Life Insurance?
Life insurance protects you and your family from economic hardship as a result of death. It is an insurance company's obligation to pay the recipient of your choice a pre-determined amount of money when you die in exchange for timely payment of premiums while you are living.Do you really need life insurance? Well do you want to provide for your family and loved ones in a manner to which they have become accustomed in the untimely event of your death? If you are the primary breadwinner who will pay the mortgage on the house your spouse and children live in if you pass? Who will provide financially for your family if you are gone? How will your children's education be financed in your absence? And finally how will your burial expenses be covered? Now that you have decided you do indeed need life insurance, how much do you need and if you already have life insurance do you have enough? Some things you will need to consider when making this decision:How much can your family afford to pay...
What is Life Insurance?
Life insurance > What is Life Insurance?
30% Savings on Texas Car Insurance Drive Texas Wasatch Expansion into Life Insurance
Texas Wasatch Insurance is pleased to announce that it has expanded its product line of homeowners insurance and car insurance to include life insurance in Texas.Mark E. Jones, Texas Wasatch Group CEO, explains, "Our core Texas car insurance business continues to grow very rapidly.
We have a great team of agents and work with a great set of insurance company partners.
Our combined efforts have saved our new clients an average of over 30% annually on their car insurance and over 20% on homeowners insurance in Texas.
Many clients have asked us to help them with their life insurance needs, which wasn't possible until now.
This product...
30% Savings on Texas Car Insurance Drive Texas Wasatch Expansion into Life Insurance
Life insurance > 30% Savings on Texas Car Insurance Drive Texas Wasatch Expansion into Life Insurance
Life insurance Life Insurance ? Wise Investment In Personal Finance Or Excessive Caution? skirts
Life insurance Life Insurance ? Wise Investment In Personal Finance Or Excessive Caution? skirts
Lincoln Mortgage Gets Involved With "Family Care" Initiative
Saint Paul, Minnesota (ContentDesk) November 19, 2005 -- The families of military personnel often need help sorting out the day-to-day finances while one spouse is deployed. Often times the deployment can last several months, during this period the staff at Lincoln Mortgage, a Minnesota based mortgage broker, will be there to help these families make good financial decisions.Recently, the spouse of a deployed soldier called Lincoln Mortgage to inquire about her escrow amount shortage. The staff...
Life insurance loans Life Insurance ? Wise Investment In Personal Finance Or Excessive Caution?
Life insurance > Lincoln Mortgage Gets Involved With "Family Care" Initiative
How real men go hairless
One of the most time consuming and frustrating parts of bodybuilding is not building muscles, it's removing unwanted hair.For any competing bodybuilder, hair removal is a must but it's also growing in popularity among casual bodybuilders.Before looking at recommendations for specific body areas it should be stated that laser hair removal or electrolysis are regarded as the only permanent hair removal methods. No need to go anywhere else. Please follow one of the links on this page to find the...
Life insurance Life Insurance ? Wise Investment In Personal Finance Or Excessive Caution?
Life insurance > How real men go hairless