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Virginia Life Insurance

Life Insurance in Virginia Introduction:

Death is inevitable. Along with the emotional stress of coping with the loss of a loved one, financial struggle also sets in, especially if the individual who died was the main earning member of the family. Though the loss of the individual cannot be reverted, a little planning during the virginia life insurance time itself helps in coping with the financial crunch that happens after the death of the individual. The role of life insurance becomes important here.

Life insurance is the insurance of the life of the individual. The applicant insures the life of him or a loved one and pays the premium regularly. In case of the death of the insured, the beneficiary receives the sum assured.

Why is life insurance important:

You may be earning quite well, and think that having a virginia life insurance is just a waste of money which could be invested in so many other things, you are wrong. Actually all the investments you might do all through your life may not be available at the moment of the need. Where as, on having a life insurance, the sum assured could be used immediately after the death to cover the funeral and other expenses. This amount helps the family to replace the income they had to have a decent living. It helps to pay off any debts or mortgages. It helps to set a fund for the education of the children or have an emergency fund. Also having life insurance is a good investment as there are several good options in life insurance which gives cash back facilities at the end of the term of insurance.

Types of insurance:

Mainly, there are two types of life insurance. Term life insurance gives death benefit for a limited period of time and permanent life insurance offers coverage all through life. In case of term life insurance, as the term of insurance is less, the premium might be more compared to that of permanent life insurance.

Usually the companies offer loan facility against permanent life insurance. Also, as the amount collected as premiums are invested in the industries; a cash value is awarded to the individual depending on the growth of the market, which are known as dividends. Term life insurance does not offer these facilities.

Term life insurance has a lower premium to pay, and it is for a limited period of time. So, this insurance is better in order to meet short term goals like extra caution while the children of the family are young and the family has several mortgages to pay off. Usually these policies are offered

for a period of five, ten, and twenty or thirty years and also give an option of renewal after the term. As the term life insurance is renewed, there is also an increase in the premium. The benefits of term life insurance are that this has a lower premium which is easily affordable during the initial struggling years of a family; it has an option for renewal at the end of the term and also provides an option of easy conversion to permanent life insurance if so wished. The conversion facility is provided till a particular age limit.

Permanent life insurance is insurance of life for the whole life of the individual. The premiums for this insurance are usually level, i.e. the individual has to pay the same premium for the whole life. This insurance would be cheaper if the individual is young when then the policy is purchased. Permanent life insurance accumulates guaranteed cash values which would be provided to the beneficiary along with the sum assured. Also the cash value that is accumulated is tax free under the present laws. So this is also a wise investment.

Permanent life insurance is offered as universal life insurance, variable universal life insurance, second to die insurance etc. There are benefits of all these insurances. For example, in universal life insurance, the premium is flexible. It permits the individual to change the insurance amount as the need of insurance changes. This policy gives the benefits of the permanent virginia life insurance in general also. Second to die insures the life of two people, usually a couple. It is meant to help the family provide for the estate tax liability at the death of the second spouse.

The amount of life insurance that an individual needs at any time is calculated considering the mortgages that would have to be paid off, other debts like credit card bills that need to be paid off and also considering an amount that would be sufficient to sustain the standard of living of the family as it is now. After considering all these factors, an amount is reached, which would be the sum assured. According to the sum assured and the age of the insured and other factors like smoking or alcohol intake or medical conditions etc, a premium is calculated.

The general assembly of virginia life insurance has formed laws to ensure that the customers are fairly treated by the insurance companies. Some of these laws are as follows.

No discrimination on any basis is allowed. Every coverage is available for every individual. No delays in the payment of claims are allowed in any insurance. All the customers have a right to information on the details of the policy. If the policy coverage is refused to someone, he has the right to know the basis of rejection.

There are several companies offering life insurance in the state of Virginia. Most companies offer the same types of life insurance but the premium and other facilities may vary depending on the insurer. The applicant should do some research like talking to people who already have life insurance, talk to agents providing service for the insurers, browsing through the websites of the insurers etc to gather enough information regarding the policy before purchasing. It would also be beneficial to be clear on the terms and conditions mentioned on the policy itself before signing up for the particular policy.

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