How to Build Financial Stability Through Insurance

There are different kinds of insurance plans that you can buy for financial coverage for different kinds of situations. For example, health insurance will provide financial coverage when you have to spend money on medical bills. Likewise, life insurance provides coverage for accidents, terminal illness, and death, whereas health insurance provides coverage for medical bills, or, auto insurance provides coverage for the risk associated to auto accidents, etc.

How to Choose the Best Insurance Product for Financial Stability

Generally speaking, there are two major benefits of term life insurance policy:

Receive financial compensation in a situation when you get into accidents or terminal illnesses during the insured term

Receive insured amount when your policy matures.

Interestingly, there are also other benefits of having term life insurance policy, the most important one is you become financially stable.

Generally speaking, you need two things to become financially stable, one, savings, and two investment portfolios. Interestingly, term life insurance is saving scheme as well as an investment.

If you have a $ 1000 insurance, you don’t invest $ 1000 at once, you will pay $50-$100 every year for 10-20 years. Therefore, you will grow your savings gradually.

When you have an insurance policy you don’t get just financial compensations, you also get insured amount, you pay small premiums, but you sizeable amount upon maturity.

Therefore, in order to ensure your financial stability, you need to buy a term life insurance policy. You need to be very careful while buying a policy. You need to buy a big policy, however, it should not be so big that you cannot pay the premium. You should also see when and how you will be receiving coverage and what the policy covers.

 Do You Actually Need Multiple Insurance Policies?

You need life insurance policy, what kind of life insurance policy you need depends on number of factors, and the most important factor is if you are single or married, or if you have kids. Term life can be a good option for young people, especially those who are single. However, for family guy, whole life insurance is better because his surviving family can benefit from the insurance policy.

Interestingly life insurance is not the only policy you need, you need other policies as well as your life insurance policy might not provide other coverage. Your terminal illness might be covered by term life insurance but if you get caught by common illness, or have to go for some surgery, your term lifer will not provide coverage, you need health insurance for that case.

If you have a care and a house, your car and house also need insurance to cover the financial damages.

Thus, the main question is how many insurance policies you actually need. If you do not have any issue with paying premiums., you might have as many policies as you life, however, if you have limited income, you will have to choose a product or a couple of products wisely.

How to Make Insurance Claims Successfully

If you have a term life insurance, you can claim when you are terminally ill or meet an accident and become invalid.

If have a car and if you encounter accidents, you can claim coverage for the damages in your car.

If you have a home owner insurance, you can claim when your property is damaged.

However, the problem with claiming insurance is in most cases, the person who has insured his life, property, or asset is unable to receive the insurance coverage. That’s because he does not meet the terms. Let’s say you have insured your property against fire but there was short circuit and your house was damaged, You might not be able to claim insurance because there might not be a clause where it is stated that you will receive compensation when your property is damages due to electrical circuit.

Let’s say you have a term life and your policy does not have any clauses for terminal illness but you were diagnosed with cancer and will still be unable to get coverage because it was not mentioned in the document.

In order to make successful insurance claims, you need to read your policy document properly before signing it and clearly understand what is included and what is not included.

A lot of care should be taken while choosing an insurance company. The company you choose should not only be well known but also has to offer products that are useful and interesting to you. While choosing insurance companies, you have two option, one, go with the local insurance companies, and two, go with the international, or foreign companies. No matter what company you choose, the insurance company should be trust worthy. While some people like to give benefit of doubt by choosing new company, I prefer to go with the old ones because of their trustworthiness. Before you choose a company, make sure you know everything about it.

 Term Life vs. Whole Life Insurance: Which Policy Should You Buy

The major advantage of having life insurance is you get financial coverage for accidents, deadly diseases, and death. Another benefit of having life insurance is you get your insured amount along with the bonus. Let's say you bought a life insurance policy of $10,000 for a period of 15 years, let' 's say you met a terrible accident, your medical bills will be covered by your policy. Let's say for 15 years, everything went smoothly and you did not claim any benefits. By the end of 15 years, you will receive $10,00 along with insurance benefits. If you calculate the amount you paid as premiums, it will always be less than what you will be receiving.

Life insurance is important for all genders and all ages. Life insurance is beneficial for people from all backgrounds and income streams. If a woman insures her life, she can make her kids a nominee, which will ensure that her kids will have some money to start their life if she dies. Even when she does not die during her insured term, she can still get coverage for accidents and loss, and she will have money to live even when she becomes terminally ill or invalid. If the life matures, she can use the money to pay for her kids' education.

If you have a life insurance policy, you can change your nominee anytime you want. It's your policy, therefore, you have full control over your policy, and you can decide who your nominee will be; if you don't want your nominee to continue to be a nominee, you can just replace him or her. There is absolutely no problem. All you need to do is fill up the form and ask for the cancellation of the nominee. If you want a new person to become your nominee you can just do it by filling up a form. The same thing applies when your nominee dies.

When it comes to buy life insurance policy, you have two major options, one, term life insurance policy, and two, whole life insurance policy. If you have money to pay the premiums for a long term (life time for whole life and 10-20 years for term life), then you can buy both kinds of policy. However, if you have limited money for paying insurance premiums and you can only afford to pay premiums for just one policy, which life insurance policy should you buy?

This is really important question that needs to be solved because the kind of insurance policy you buy will determine a lot of things, especially your financial health.

There are two major factors to consider, your marital status and your age.

If you are married and if you have kids, whole life insurance will benefit. If you are in the middle age, whole life insurance will benefit. However, if you are single and if you are young (in your twenties or early thirties) term life will be more beneficial.

Whole life is mainly aimed at providing coverage for your death, which means you cannot get the benefits but your family can. Term life insurance will provide benefit during your own life time.

How to Build residual Income Through Term Life Insurance

Term life means you get insurance coverage for a certain term, after that you will get your insured amount. If you have not bought term life insurance plan yet, you should immediately buy term life

You should buy term life for the following three reasons:

You will get financial compensation if you become terminally ill or encounter accidents.

You will be able to build sizeable saving by paying premiums every year for 20-25 years or number of years you have chosen for your term life. You might not be able to save money regularly but by paying premiums regularly, you will be able to save money.

You receive insured amount when your policy matures.

The money you receive after the policy matures is residual income. Residual income means an income that you generate from something you have done in the past and without any on going work. Let’s say you worked for 20 years and received pension or retirement funds. That’s residual income. Your insured amount is also residual income because you made that amount from something you have done in the past.

The money you receive from your term life policy is a residual income that you can use to manage your life when you are not able to earn active income because of old age or failing health.

The Importance of Health Insurance for Affordable Healthcare

Once I read a research on the cost of living in various countries. The research pointed out that health is one of the top contributors of expenses. The study also pointed that a lot of people are becoming poor because of the cost of health care. Healthcare expenses can be high, therefore, getting a health insurance is very essential. Health insurance not only covers various diseases but also emergency medical care such as surgeries and post-accident treatments. Choose a medical insurance plan that suits your needs for comprehensive coverage. While buying health insurance, check what coverage your insurance covers and how much you need to pay for the premium.