Insurance World

Term insurance is a level term life insurance product that pays out a lump sum when the insurance policyholder dies or becomes terminally ill. It provides peace of mind to the insurance policyholder that loved ones left behind after their death will be financially secure. Term life insurance can be configured to pay off all existing loans - including the mortgage - and leave a cash sum in the bank to support your spouse and children. If you don’t want your family to have to cope with financial pressures during their bereavement, or struggle to find the funds to pay for your funeral then term insurance is the life product to have.

Term insurance is different to mortgage insurance
It is important to realise that term insurance is a different life product to mortgage insurance. Term insurance is a long-term insurance product that can be taken out over a lifetime of 50 years. During this time the insurance premium remains the same as does the amount paid out in the event of death or terminal illness.

Mortgage insurance on the other hand mirrors the life of your outstanding mortgage loan. The insurance premiums remain the same throughout the life of the product, but unlike term insurance the amount paid out upon death or terminal illness reduces in line with the outstanding mortgage loan. So, if you were to die at the point that you owe only Ј2000 on your mortgage, then the mortgage life insurance product would only pay out Ј2000.

Terminal illness
Terminal illness cover generally comes as standard with term life insurance polices. The terminal illness clause tends to trigger pay out if the insurance policyholder is diagnosed with a terminal illness named on the term policy and is given 12 months or less to live. Pay out in these circumstances allows the policyholder themselves or someone with power of attorney for the policyholder to receive the full lump sum from the term life insurance policy. They are then free to enjoy the final months of their life with their family free from financial constraints.

When a term life insurance policy pays out for terminal illness the policy will end. Therefore the life insurance company will not be liable to pay anything further upon death of the policyholder.

Term life insurance restrictions
As with most insurance policies there are restrictions and exclusions that apply to term life insurance policies. The main restriction is on pay outs to term life insurance policyholders who become critically ill, yet are not diagnosed as terminally ill. In this case, a standard term life insurance policy will not make a payment, unless a critical illness policy has been added to the term life insurance.

Choosing a health plan which is the best could be a confusing experience. Although there is no one “best” plans, there are various plans accessible today in market that would be better than others for you and your family’s health insurance needs. In simple terms, however, rather that mere giving you the answers, the best thing we could do is to make sure you are ready with the right questions. The following questions could help you and your family to take intellectual decisions on choosing the best from various options available regarding health care.

There are three major things to be considered, each with their own exclusive set of questions. By considering the questions thoroughly, you would arrive at the right plan for you and your family

1.How affordable is the cost of health care?

• How much would it cost me on a monthly basis?
• Should I try to insure only major medical expenses or cover most of my medical expenses?
• Can I afford a policy that at least cares for my children?
• Are there deductibles I should pay before the insurance begins to help cover my costs?
• After I have met the deductible, what part of my costs is actually paid by the plan?
• If I use doctors outside a plan’s complex, how much more would I pay to get care?
• How frequently do I visit the doctor and how much do I have to pay at each visit?

2.Do the integrated services match my needs (access of care)?

• What doctors, hospitals, and additional medical providers are parts of the plan?
• Are there sufficient kinds of doctors I want to see?
• Where would I go for care? Are these places near where I work or live?
• Do I require getting permission before I see a medical specialist?
• Are there any limits to how much I should pay in case of a major illness?
• Does the plan cover up the expenses of delivering a baby?

3.Have people had good results when covered by a specific plan (quality of care)?

• How do self-governing government organizations rate the different plans?
• What do my friends say about their understanding with a specific plan?
• What does my doctor say about their knowledge with a specific plan?