Finance Guide (SGM) This week we feature: “A family life Insurance Policy.” Does your family have one? If you’re involved in a business of living there’s always the possibility that injury or death may visit your family. We hate to think of it but life happens with or without our permission. A smart move for you is to get a family life insurance policy. God forbid but, what if something happened to you? How would your family pay the mortgage? school fees, food, soccer practice, car note, etc..
If your family should be covered by a life insurance policy (Period). If up until now – if your family has escaped accidents, injury or death created by unforeseen circumstances consider yourselves fortunate. However, we can’t continue with naive thinking, the nothing will never happen to us is outside of reality, we can’t predict the future. Hospital and Legal fees can be so astronomical that they drive many out of their homes. You may need to see an insurance professional.
Finance Guide believes all families should have a professional insurance agent meet with them to see how to protect themselves in case of serious injury and death!
Types of Available Life Insurance
Term Life Insurance
If you’re looking for Family Life Insurance Policy consider – Term life insurance or term assurance is life insurance which provides coverage at a fixed rate of payments for a limited period. After the period expires, coverage at the previous rate of premiums is no longer guaranteed and the client must either forgo coverage or potentially get further coverage with different payments or conditions. If the insured dies during the term, the death benefit will be paid to the beneficiary. Term insurance is the least expensive way to buy a substantial death benefit on a coverage amount per premium dollar basis over a specific period.
Whole Life Insurance
Whole life insurance, or whole of life assurance, is a life insurance policy that remains in force for the insured’s whole life and requires (in most cases) premiums to be paid every year into the policy.
There are several types of whole life insurance policies. New York State defines six traditional forms: non-participating (aka “non par”), participating, indeterminate premium, economic, limited pay, and single premium. A newer type is known generally as interest sensitive whole life. Other jurisdictions may classify them differently, and not all companies offer all types. There are as many types of insurance policies as can be written in their contracts while staying within the law’s guidelines. Here are several types of Whole Life Insurance Polices:
Whole Life Insurance Policy:
All values related to the policy (death benefits, cash surrender values, premiums) are usually determined at policy issue, for the life of the contract, and usually cannot be altered after issue.
This means that the insurance company assumes all risk of future performance versus the actuaries’ estimates. If future claims are underestimated, the insurance company makes up the difference. On the other hand, if the actuaries’ estimates on future death claims are high, the insurance company will keep the difference.
Whole Life Insurance Policy:
In a participating policy (also par in the USA, and known as a with-profits policy in the Commonwealth), the insurance company shares the excess profits (variously called dividends or refunds in the USA, bonus in the Commonwealth) with the policyholder. Typically these refunds are not taxable because they are considered an overcharge of premium. The greater the overcharge by the company, the greater the refund/dividend. For a mutual life insurance company, participation also implies a degree of ownership of the mutuality.
Whole Life Insurance Policy:
Similar to non-participating, except that the premium may vary year to year. However, the premium will never exceed the greatest premium guaranteed in the policy.
Personal Liability Life Insurance Policy
Covers your Auto, home, farm, RV and boat-owners, these policies offer primary liability protection. But, depending on your situation, that may not be enough. Your family life insurance policy should include or be supplemented by a Personal liability umbrella life insurance policy should extend your coverage by adding a layer of protection over and above your primary limits. This Family Life Insurance Policy provides liability umbrella supplements to your primary liability coverages for automobiles and motorcycles, primary residences, seasonal homes, most types of watercraft, recreational vehicles, and one or two-family rental dwellings. Finance Guide points out that this is good financial info!
For liability losses covered by your primary policies, there is no deductible under the umbrella policy once you have exhausted your primary limits.
What Does Personal Liability Umbrella Insurance Cover?
Here are some examples of extra coverage your policy should give: Remember: these coverages are subject to some limitations.
Personal Injury Protection – This coverage provides that if you’re sued for libel, slander, humiliation, defamation of character, wrongful eviction, invasion of privacy, wrongful entry, malicious prosecution, false arrest, detention or imprisonment.
Loss Assessments - Covers your share of loss assessments up to $100,000 levied against you, as an owner or tenant of your residence, by a corporation or association of property owners.
The goal of a Family Life Insurance Policy is to protect you and your family from the life’s mishaps that may adversely affect you and your family’s financial and living arrangements. You may want to consider contacting Gerber Life Insurance Company, they’re not just child’s insurance! We did and we’ve been satisfied customers ever since. They really care and any company that cares about our children has our vote. Gerber Life is a company people trust because they’ve been in business servings communities since 1967.
Below you can get an a Family life Insurance Policy online quote.
Abigail Keller, SGMag
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