Life insurance is taken up for various urgent situation like, children's future, savings and so on. Since life has no guarantee and so is our jobs, hence it's a good decision to accept a life annuity policy, incase the bread winner pass away in an unfortunate tragedy or looses his job, that's when life annuity plays a good role to secure the family's financial situation. We always think that investing in life annuity may not be of great help, but only when we face financial crisis and life annuity helps us get out of such situation, is when we appreciate taking a life annuity.
Life insurance is divided into the following main and sub classes:
1. Temporary
-Term
2. Permanent
-Whole life
-Universal life
-Limited pay
-Endowment
Term life insurance does not include a cash value, is taken for a specific term and is called 'pure' insurance. When taking a term life insurance, consider the face value that is the death benefit, the premium that you will need to pay and the period of coverage.
In the case of permanent life insurance, it will be valid until the policy matures to a benefit or the insured person expires in an unfortunate tragedy. This policy taken cannot be terminated unless the policyholder cannot make further payments or has found to be a fraud. Within the permanent life annuity the whole life annuity provides garmented cash value, death benefits and fixed annual premiums. One of the drawbacks of this policy is that there would be no change on the return rates and the insurance company would hold the entire cash and the death benefit till such time that the policy holder dies.
Another policy called the universal life annuity is a plan that brings in the flexibility to the payment of premiums and also a growth of the cash component. Limited- pay insures are the ones where the payment need to be made up to a specific period and thereafter no payments are required to keep the policy valid. This is a policy that can be taken up anyone who is up to an age of 65. Endowment Policies are those that build cash value starting from a certain endowment age and this would be equal to the death benefit. All these policies require a Medical Examination prior to the commencement of the policy. For those who don't want o undergo a test there is the Life insurance no exam Policies.
Everyone needs life insurance - especially young adults. Do not think life insurance is only meant for the old. Anyone can die at anytime and their partner could continue to live for many years after them. Life annuity will provide continuing support to the remaining family members and help them use the life insurance money to pay of outstanding medical bills, education loans for kids, home mortgages etc. Even those without families can take life annuity. Their beneficiaries can be a dear friend, religious organization or some other charity.
The beneficiary on the policy will get a true understand of how much you mean to them during your lifetime and the fact that you will be there for them continually. If the life insurance has a cash value then the same can be provided as collateral against a loan. This could help during a financial emergency. The most practical need that a life insurance serves is that of a saving for burial expense.
If going through medical test is quite a hassle for you and you just cant go through endless talk from sales men and you have a life style that you wish to enjoy and o not wish to alter then the Life annuity no exam policy is the one for you. It's an offering by some insurance companies and can be found online. Request for a quote answers a couple of questions and then you'll get a policy that you wanted.
Answering the online questionnaire honestly is very important. While a few medical problems will not disqualify you from obtaining life insurance no exam policy, those who are on medication for a serious condition need to intimate the insurance company. Failure to do so could result in cancellation of the policy for insurance companies have their way of finding about past medical history of their clients. While instant approval, no doctors, no mailing delays, no invasive needles are some pros of life insurance no exam, the main drawback is that it is more expensive than a life annuity policy with a medical exam.
Article by David Livingston of EQuote.com, a website with the best affordable life insurance and term life insurance cost information in the country.
