Mortgage Protection Life Insurance - Understanding The Basics

Your house is a big investment - probably one of the biggest you're every likely to make. It is also the place that you and your loved ones call home; a shelter and haven from the outside world. That's why it is so important to ensure that your home and family are protected in the event of your death. It's not a topic that any of us like to dwell on, but the sad fact is that should you die and the family are no longer able to afford repayments on the house, they will lose the property and the roof from over their heads.

Having a good life insurance policy in place to protect your property in the event of your death is vital. When you die, your family will have enough to worry about without the added stress of how they are going to hold on to the family home. Your life insurance policy will ensure that this problem is eliminated, with the mortgage balance being paid in full upon your death.

The main types of mortgage life cover

The type of mortgage life insurance cover that you require will depend upon what type of mortgage you have, a repayment or an interest only mortgage. There are two main types of mortgage life insurance cover, which are:

§ Decreasing Term Insurance
§ Level Term Insurance

Decreasing term insurance

This type of mortgage life insurance is designed for those with a repayment mortgage. With a repayment mortgage, the balance of the loan decreases over the term of the mortgage. Therefore, the sum of cover with a decreasing term insurance policy will also go down in line with the mortgage balance. So, the amount for which your life is insured should match the balance outstanding on your mortgage, which means that if you die your policy will hold sufficient funds to pay off the remainder of the mortgage and alleviate any additional worry to your family.

With the decreasing term insurance, the cover is usually taken out over the term of the mortgage, and payment is made should you die during the term of the policy. Once the policy has expired, it becomes null and void, so you will receive nothing at the end of your policy if you are still living. There is no surrender value on this type of cover, but it does provide a cost effective means of protecting your home and family during the life of your mortgage.

Level term insurance

This type of mortgage life insurance cover is for those that have a repayment mortgage, where the principle balance remains the same throughout the term of the mortgage and the repayments made by the property owner cover the interest payments on the mortgage only.

The sum for which the insured is covered remains the same throughout the term of this policy, and this is because the principle balance on the mortgage also remains the same. Therefore the sum assured is a fixed amount, which is paid should the insured party die within the term of the policy. As with decreasing term insurance, there is no surrender value, and should the policy end before the insured dies no payout will be awarded and the policy becomes null and void.

Terminal illness benefit

Both of the above types of cover normally include terminal illness cover, which means that the mortgage is cleared should you be diagnosed with a terminal illness rather than waiting until you actually die. This helps to ensure that you do not have the additional worry of trying to meet repayments when a terminal illness takes away your ability to work and earn money, and at a time when the whole family has enough to worry about without having to stress about meeting mortgage repayments.

Critical illness cover

Critical illness cover is another type of insurance policy that can be added on to either of the above mortgage life insurance polices and provides an extra element of protection and peace of mind. This type of cover can also be taken out as a stand-alone policy, but usually proves much better value if simply added on to a main insurance policy.

With critical illness cover you will be eligible for a payout in the event that you are diagnosed with a critical illness. If you then go on to recover from the critical illness, the payout is yours to keep but the policy becomes null and void following your claim. The illnesses that are covered by this type of policy are defined by the insurer so you should ensure that you check the terms when taking out critical illness cover.

Adding critical illness cover to your policy will only increase your repayments by a small amount, but can provide valuable protection if you are diagnosed as critically ill and are therefore unable to work. With your mortgage repaid from the payout of this policy, you will not have the additional worry of trying to keep a roof over your head at a time when you should be concentrating on trying to make a recovery.

Summary

As indicated by the features of the two main types of mortgage life insurance cover, the policy you go for will depend largely upon the type of mortgage you have. Both types of cover offer value for money, with some really low cost deals available. Of course, the amount that you pay will ultimately depend upon the level of cover you require. For total peace of mind it is always advisable to go for a policy with critical illness cover incorporated into it.

Having some form of mortgage life cover is essential to protect your home and your family. After working hard to buy your own property, the prospect of it being repossessed in the event of your death can be worrying both for you and for your family. A mortgage life cover policy will ensure that this does not happen, and will give your family the security of knowing that whatever happens they will still have a roof over their heads.

Life Insurance No Medical Exam - Is It Really Possible?

Quite often you feel that an ad for life insurance no medical exam is trying to rip you off. However, it is possible to get life insurance no medical exam when you shop online for your life insurance needs. It is only a click away on a computer, but you really do need to check to see if life insurance without having to visit a medical doctor applies to you.

You will have to complete the online application for life insurance answering a series of questions regarding your age, gender and the state of your health. Once the online agents assess the answers to the questions, they will determine whether or not you qualify for no exam medical life insurance. One thing is for certain and that is to get life insurance and no medical exam, you do need to be young and in prefect health.

When you find the perfect life insurance online where you do not need to have a medical exam, the process is quite simple. Once you receive a reply that your application has been accepted for life insurance, you can pay for it online using your credit card and print off your no medical exam life insurance policy. If you do not tell the truth regarding the state of your health, this will result in cancellation of your life insurance no medical exam.

When you shop for life insurance, you need to be an educated consumer. Even though you may be eligible for life insurance no medical exam, life insurance policies are either standard (permanent) or term (temporary). Basically, standard coverage remains in affect for the life of the insured. Term coverage expires after a set term of 5, 10, or 20 years (except for term to 100 insurance). Term life insurance is generally less expensive because death is not certain during the policy term. Generally no medical exam life insurance is term insurance. While there is no guarantee you will be accepted for life insurance without a medical exam, it is worth a try.

Not everyone qualifies for life insurance no medical exam.

How Life Insurance Is Your True Friend During The Crisis

Owning an insurance assures you of lending a helping hand during the crisis if you meet any. Availing life insurance is one of the best ways to be sure of having some sort of financial help when you suffer through any sudden major setback. For example, if your father has got an insurance, and he dies due to some serious disease; in this case, your family gets some sort of financial amount as compensation against the amount your father has been paying as insurance premium. This of the most important benefit of buying an insurance. Moreover, if the insured person who dies is the only breadwinner of the family, then the insurance amount appears to be boon for the family dependent on that person.

Acting as a true friend, Life Insurance helps in very positive and soothing way by fetching a good amount of financial help as compensation. There is possibility that the insured person who dies had incurred some sort of loans and mortgage. This way, the compensation amount of the insurance helps you greatly in easing out the financial burden. The insurance compensation amount which you have got after the death of insured member of your family can be utilised in paying off all the mortgage and loans.

Besides giving you some sort of income tax benefits, life insurance is one of the most reliable source to help you after any of your family members dies in any accident or have got a serious illness too able to work. The insurance compensation amount is given to you immediately so that your family doesn't suffer any financial problem. The insurance amount soothes the financial condition of entire family, and bring them back to normalcy, so that they can have no any negative effect on their normal life even after the insured person dies.

Allan Elvin is an MBA in Finance and has a rich experience of writing on topics related to finance. He professes special interest and expertise in Life Insurance and in guiding you on its various details.

Life Insurance Comparison Tips

When you compare life insurance companies, policies or quotes before you buy, you want to have the peace of mind that you've made the right decision. After all, you want to be sure you're not paying more than you have to and that company will be solvent at the time of your family's need. Here are four tips to keep in mind when making life insurance comparisons.

1) Compare the differences between term life and permanent life to determine which type of life insurance is right for your situation. With term life, you pay a set premium for a certain number of years. When that period is over, your coverage ends and you need to reapply for a new term -- probably at a higher premium.

There are different types of permanent insurance, but the basic difference from term is that the policies cover you until death as long as you pay your premium. What's more, many types of permanent insurance also build cash value over time, money that you can borrow against. These added benefits of permanent life insurance make it higher-priced than term.

2) Compare rates by shopping around for quotes. Rates between life insurance companies can vary quite a bit so you want to get at least three different quotes for the same amount of coverages. This could save you quite a bit of money.

3) Compare the financial stability of each life insurance company you are considering. You can check this via rating agencies that rate the financial strength of insurance companies. These agencies are Fitch and Moody's, A.M. Best, Weiss and Standard & Poor's. You can look these agencies up online.

4) Compare the customer service and -- if possible -- claim records for each company you are considering. Get a feel for how helpful and experienced the agents and company representatives are. Ask questions and check with the department of insurance in your state to see if there have been any complaints about service or claims for each company.

Life Insurance Choices and Your Own Family

Which Life Insurance Should I Choose?

You know that you need some life insurance to protect your loved ones in case you die while they depend on you. Some life insurance comes with additional options, called riders, that can even protect your personal and business finances if you should be disabled or critically ill. Other options may build up a cash value or return your premiums, and these types of life insurance policies move beyond simple insurance into the realm of savings and investments!

Let me break the types of life insurance down into their basic forms, and then give you some information on additional riders you may choose to make your policy work harder for you. Of course, each option will add to your life insurance premium. You need to balance your goals with an affordable premium. The more information you have, before you actually sign an important, long term contract like life insurance, the easier your choice may be!

Type of Life Insurance

Term Life Insurance is the easiest form to understand. You purchase protection for a specified amount of time, and that may be from one year to 30 years. After the term is over, your contract has ended. Some policies may be written to allow you to renew them for another term without having to show evidence of insurability. In other words, you will not have to prove that you are still healthy.

Other options can cover you against disability or critical illness, or provide a waiver of premiums in case you cannot work. Another popular option, or rider, will return your premiums paid if you survive the term of your insurance contract.

Whole Life Insurance is considered traditional insurance. This type of insurance is purchased to protect your entire life. Some companies may allow you to pay off the policy in a set amount of time, either 10 or 20 years are common. If you can pay your policy of faster than seven years, the policy benefits will no longer afford you the tax advantages of a life insurance contract. Since whole life insurance builds up a cash value over time, this type of insurance may also be used as a savings vehicle.

Universal Life Insurance is a newer type of permanent life insurance. The elements of the policy are unbundled, or separated out. For instance, the portions that pay the cost of life insurance, the cost of policy administration, and that grow cash value are separate. Since many universal life insurance policies are indexed to major market indicators, some view universal life insurance as an investment product, as well as an insurance product.

How to Choose Life Insurance

You need to determine what your actual needs are, and then compare the products that are best for those needs. Then balance the cost of those products with the premium that can really afford, and with the benefits they can provide for your family. You can begin researching on line. Then, when you have a good idea about your needs, different plans, and their costs, I would suggest a visit or two with local insurance agents. A qualified insurance agent will certainly be able to give you a choice of products that fit your needs and budget!

Cheap Car Insurance For Women

For all the women out there who simply cannot get their head around the minefield of car insurance - and it happens to men too by the way - then the easiest way of getting car insurance is to talk to a car insurance broker. A broker will be able to search the market for the right car insurance specifically aimed for women, at the right price; this is the cheapest way to get your insurance while getting the best deal possible.

There are some insurance companies that do motor insurance especially for women but if you do not know who they are and what they are offering then you could spend a lot of time and effort and quite possibly cost yourself a lot of money contacting several companies to get an insurance quote, only to be disappointed by what you are quoted. Do not forget a broker will know where to look for the best policies and the cheapest deals straight away.

Driving a small car instead of a big a car will reduce the cost of your car insurance. This is because small cars normally have a smaller engine, which will also give you more miles to a tank of fuel resulting in costing you less to get from A to B. Enhanced security features will also make a difference to the cost of your car insurance, a car fitted with an alarm or tracker or immobiliser is a more secure vehicle and therefore less likely to be stolen which brings down the premium charged for your insurance.

Once you have found a broker then you don’t have to be worried about your car insurance when it is time for renewal next year. Simply contact your car insurance broker again and let them search for the best car insurance for women that is available. With another years’ driving experience under your belt too, your current deal might not be the correct deal and it could be costing you money if you simply renew your insurance with your current insurance company.

David Thomson is Chief Executive of BestDealInsurance an independent specialist broker dedicated to giving consumers the best insurance deal. They offer great value car insurance, ensuring that their clients have the protection they need, without leaving a hole in their pocket.

California Term Life Insurance

The typical route that most people take when it comes to buying term life insurance is that they find a reputable financial advisor, discuss their specific needs and then the financial advisor “shops out” the different carriers to hopefully find the least expensive but most comprehensive term life insurance quote to protect your family should your unexpected death should happen. Typically, when carriers are shopped out by financial advisors, the location of the insurance company does not play a role in the decision to buy. What does matter is that the insurance carrier is an “A” rated company and that their term insurance quote and policy match your financial and lifestyle needs. However, being insured by a firm in Boston, for example, when you live in California you may not reap all the benefits that are specific to your state. Now there is a specific term life insurance policy offered to residence of California.

A Complex State

Whether you are a new resident of California or you have lived here for your whole life, you understand the complexities of the state as well as the lifestyles. Just as California in itself is complex and filled with complexities of people, the different types of term life insurance policies are equally mind-boggling. The best thing to do is to find a financial advisor who can evaluate the offerings of providers of California term life insurance.

California Term Life Insurance Laws and Regulations

Each state has very specific term life insurance laws and regulations. A few of the California laws and regulations are that those seeking insurance get a minimum of ten days to change your mind and receive a full refund of all premiums paid toward a term life insurance policy after your purchase. Ten days is minimum, but many companies give you one month (or 30 days) to change your mind. This return policy give those who are uncertain about the policy they chose to have a free trial period or even time to keep shopping out the best policy for their needs.

Aside from a free trial period, all California term life insurance claims should be settled within 30 days after the proof of death is given to the insurance company. If carriers take longer than 30 days to pay out the benefit, the face value may accrue interest, which would also be paid out to the beneficiaries.

Third, the insured receives a 30-day grace period for late payments. This is particularly beneficial because the insured does not have to worry about their California term life insurance policy being cancelled should they simply forget to pay the bill. The grace period gives you the peace of mind that your policy will not be cancelled without notice.

Last, should your licensed insurance company declare bankruptcy or close down due to assets falling below their liabilities, the California Life and Health Insurance Guarantee Association will compensate you in the event that your policy is lost. Reimbursement for a single death benefit may not exceed $250,000 per insured individual or $100,000 in net cash. These limits hold true even if more than one policy is held on each individual.

To be guaranteed compensation under the California Life and Health Insurance Guarantee Association (CALIFEGA), your insurer must be licensed in California and your policy payments must current.

California Life Insurance Laws also Protect Insurance Companies

Since laws do not only go one way, there are also laws in California that protect insurance companies. Those who own California term life insurance policies must follow these regulations. First, California term life insurance policies do not cover suicide for the first two years of coverage. Should the insured commit suicide, the carrier would send the beneficiaries a 100% refund of all premiums paid within the two-year period.

Second, California term life insurance policies may deny coverage if an applicant misrepresents his or herself or makes fraudulent statements on their application. Carriers may or may not return premiums paid on a policy if this occurs. This right is left to each individual company.

Third, while financial projections (or Insurance Illustrations) are not permitted in other states, it is permissible in California. The financial projections are regulated by the insurance department of the state.

It is wise as a California resident to see if having a California term life insurance will be more beneficial than having a random policy written by a company in another state.

Sharon Taylor writes life insurance articles for eQUOTE Life Insurance, offering low rates, no-obligation quotes, term life insurance and information. Providing financial security for American families online since 1999.