What is Whole Life Insurance?

It is not difficult to understand what is whole life insurance, as the name implies, it is a life insurance policy that provides the insured a lifetime protection; it is a type of permanent life insurance. For example, if you bought this product, you will have to pay a fixed amount of premium for life instead of the increasing premiums of term life insurance.

How long do we need to pay for a whole life insurance?

There are whole life insurance policies designed to mature at the age of 100, this is the age when premiums end and the cash value equals to the face value of the policy, and this cash value will be paid to the insured. Normally this policy doesn't specified how long is the maturity, the premiums are calculated by the insured's age, usually starts at the age when he buys until 85 years old, the male and female could be different because the females have a longer life span than the men. The premium is then calculated, and a fixed amount of premium needs to be paid, whether monthly, quarter yearly, half yearly or yearly.

As long as the buyer pays the premiums, he will benefit the guaranteed death benefit. Should he die at old age or young, or should he die of accident or illness the life insurance company will pay a lump sum of money to the beneficiary, this amount of money is depended on how much the buyer wants to be insured, if he wants to have a coverage of $100 thousand, the beneficiary will receive a one lump sum of $100 thousand upon his death.

Whole life insurance provides the buyer with cash value, and the buyer can borrows money from the cash value, or if the buyer wished to stop paying the premium for some time, the cash value will pay the premiums automatically, so that the policy will not lapse. But if the cash value has used up, the buyer needs to start paying the premiums again or else the policy will lapse.

Another benefit for this policy is, the coverage is adjustable, and it can be increased. If the initial coverage is $50 thousand, the coverage after some years could be more than $50 thousand. That is to say the insured now has a coverage of more than the initial $50 thousand without paying more on the previously stated premiums.

Cash value accumulation

Another benefit of whole life insurance is the cash value accumulation. This cash value was built after the buyer paid his premium, this cash value increases each year, and the insurance company will increase the cash value as interest to benefit the policy holder. If the policy holder wants to surrender the policy and get the cash he is entitled to do so, but he will no longer under cover, but normally he is advised not to do so. The buyer has another option that is he can borrow the cash as loan and maintain his policy, so that he is still insured. The cash value taken out is tax-free, and in some countries the premium paid per annum is declarable for tax paying, that is the buyer can reduce his tax payment.

This tax reduction is another benefit for a life insurance buyer.

Disability benefit

The buyer can add an additional premium rider to his policy, should he become disabled, after six months of that disability the life insurance company will pay the premiums for him, for the rest of his life.

Accidental benefit

Another benefit of this is accidental benefit. The buyer can purchases an additional accidental policy, should he become partially or totally disabled, the insurance company will compensate the insured a percentage of payment as specified in the policy. The compensation varies according to individual policies; the buyers are advice to read through thoroughly.

For further definition on this, life insurance companies and the agents are pleased and obliged to assist their customers, for this policy has been in the market for many years. There are some experienced life insurance agents very well versed on this particular policy, perhaps you can ask them to provide you more information on what is whole life insurance.

Most Reliable Life Insurance Companies

Whenever you try to decide on which life insurance companies you would like to deal with, you will surely find a lot of reliable life insurance companies. It will not be fair to mention only a few because there are literally thousands of them. But there is way to find the best and most reliable insurance company. Finding the best and most reliable is sometimes tricky so need to know a few things in order to get the best results.

The first thing you have to do is decide on what type or form of life insurance you want or need at present. Do you need a term life, a whole life or a universal life? A term life insurance will only cover you for specified period of time and renewals can get more expensive as you aged. While whole life gives you the flexibility and protection as well. With these type you can change the amount that you want to be insured and as well as the premiums. Then see if the company you are interested is offering them.

You may now need to contact your government insurance department or the better business bureau and inquire if they are legitimate. Also if they are allowed, authorized or licensed to sell insurance in your state. If they are licensed in your state, then they are reliable. The main reason for this is if something wrong happens and they are not licensed to do business in your state, you cannot get help from your state or local government.

Research and compile a list of life insurance companies that you may be interested. Check with the better business bureau if they have any reported business misconduct. This can be red flag if someone has complained against them. Check too with the consumer advocates on better business conduct if they have a clean sheet. You may also want to check with friends and family members if they know anything about your list of insurance companies. You can also check with your co-workers if they have any good or bad experiences with your probable insurer.

Find an independent research firm that rates insurers. These research firms can provide you more accurate and honest rating of any insurer you may have on your list of probable life insurance companies. Finding their financial ratings can give you a better look and understanding of well you are going to be protected. Because what is the use of insuring yourself if the company may close their doors in a year or two.

Finding the best and most reliable life insurance companies is not as difficult as you may think. All it takes is some few basic steps and voila, now you have it.

Car Insurance For New Drivers

A leading insurance company may have come up with a scheme that rewards rather than punishes newly qualified teenage drivers.

Insurance giant Swinton have begun offering special six-month polices aimed at those who have just passed their test. The selling point comes in the form of a 30% discount should you make it through those first six months without claiming, rising to 45% after 18 months. This news is sure to excite young drivers who have had to contend with astronomical car insurance premiums for many years.

According to a spokesman for the AA, one of the UK's biggest brokers, around half of all insurers are refusing to even quote for 17-year-olds. Young men, he says, have been particularly penalised and are typically paying twice as much as newly-qualified female motorists. The statistics however back up these fears as under 21s have been proven to be 10 times more likely to be killed or involved in a car accident compared to their 35+ counterparts.

Andy Roden at Swinton says the company acts as a broker for 15 underwriters, but warns young drivers hoping to sign up that they need to make sure they are driving smaller, lower-powered cars that fall into insurance groups 1-4 to get reasonable prices.

As it stands users have to pay the whole six-month premium in one lump sum payment. This however is set to change once the policy beds in when installment payments will be introduced.

Some of Swinton's competitors however have derided the news as nothing more than an attempt to snare young drivers. A spokeswoman for Confused.com says: "Customers need to look beyond the marketing hype and question whether the first six months trial policy will be counted towards their NCD should they decide to switch insurers come renewal time.

"Building up your NCD is the quickest way for young, newly-qualified motorists to take advantage of cheaper premiums from all insurers, so we'd certainly advise caution when opting for a policy that will potentially take 18 months to earn one year NCD."

If the sounds of this new policy isn't the music to your ears it was intended to be there are other ways to possible reduce the amount you pay for car insurance.

• Opt for a small car with a small engine.
• Try adding a parent to the policy. Assuming they have a clean record, this will often bring the price down.
• Consider a "Pass Plus" training scheme. By paying around £180 for six extra lessons, you could save £700 on the first insurance premium alone. Check before you sign up what discount will be given by your insurer.
• Don't pay in installments if you can avoid it. Kwik-Fit is a good bet for new drivers, but charges 39.9% APR if you spread the payments over the year.

Don't Spin Round and Round Looking For Car Insurance - Follow These 8 Tips

Dealing with car insurance can be confusing, so below are eight steps to help you figure out the more complicated points of car insurance...

1) - Determine the Appropriate coverage: Help control the price you pay. American Insurance Association executive Dave Snyder comments that half of a driver's car insurance bill covers liability and: "that has to do with how you are going to use the vehicle, such as commuting to work and your driving record." Snyder furthered his comment by stating: "If you've got a clean driving record, you figure to pay less for insurance then you would if you had a speeding ticket on record. You can control the other half of your premium which covers damage or loss to your vehicle, comprehensive and collision coverage."

2) - Do your Research: Nicole Mahrt from AIA urges people to shop around, and find the best deal on car insurance: "It pays you to shop around, especially if you feel you've been paying too much." Therefore, work with your insurance provider, and get more than one quote.

3) - Search for insurance discounts: John Marchioni from Personal Lines for Selective Insurance suggests that people should ask for discounts: "Many insurers will give you a discount if you buy two or more types of insurance." Therefore, ask about discounts on anti-lock brakes and anti-theft devices.

4) - Check with your Insurance Provider, before buying a car: Marchioni states that: "Your premium is based in part on the car's sticker price, the cost to repair it, its safety record and the likelihood of theft." Avoid choosing a car purely on price. It is important to have an insurer who will answer your questions and handle claims appropriately.

5) - Consider taking a higher deductible: Mahrt comments: "You could lower your insurance bill by increasing your deductible." However, it is vital that you can pay the higher deductible if you file a claim.

6) - Look into 'stacking' coverage's if you file an insurance claim: Stacking uninsured / underinsured motorist coverage means that you can collect from one or more of your car insurance policies. However, many states in America forbid this, but there are about 19 states that allow this. Therefore, check the contract to see if it is allowed. However, Daniel Kummer from Property Casualty Insurers Association of America states: "You'll likely to pay higher insurance premium if you have stacked coverage." This could reach up to 30% more.

7) - Notify your insurer as soon as you change companies: Be sure to tell your company that you are leaving. However, always have you're new contract lined up before you leave your old one, as you could get fined for not having insurance.

8) - Pick the Insurance payment option that best suits your budget: Kummer says: "Generally, most companies will give you the ability to pay over time, but that comes at a price." This is because the payment could increase with each installment that you pay. The more you break down the payment, the more the overall cost will add up.

No Car Insurance is a Crime

In this day and age, there are many things that occupy our minds. We have lots of commitments, especially financially, to things such as bonds, cars, clothing accounts, credit cards, school fees - the list goes on and on. People tend to feel overwhelmed, and with the rising price of living with regards to inflation and interest rates, sometimes it feels necessary to cut costs wherever possible.

Unfortunately, most of the time people find things such as insurance, be it motor, household, or life insurance, a "luxury."

Imagine struggling to make ends meet - with regards to paying off a bond (if you're not renting), buying food, school fees and even the price of petrol... would you stop to think about adding yet another bill to the pile at the end of the month for something that may never happen?

Logically speaking, there is no guarantee that your house will be robbed, or that you will have a car accident.

Now, here is a point I want to bring to attention, one which many people may not consider. When one thinks of car insurance, they think of having a car accident. They think of needing money should they be involved in a motor vehicle accident, be it their fault or someone else's. Relatively speaking, this is probably the most likely reason for needing car insurance. But picture this - you have your brand new car; you've worked hard to save to be able to afford to have it, or perhaps you've had your car for years; regardless, it is your most precious possession, and something which is absolutely necessary for getting from A to B. Now imagine you walk out of the grocery store, or into any parking lot where you have obliviously parked your car. You walk around and around in circles, so sure that you parked right there, but yet, you can't find your car. A sense of panic begins to rise into you as you realize your treasured motor vehicle is nowhere to be found. It has been stolen.

Irrespective of needing car insurance for motor vehicle accidents there is another reason one would need it. Crime. One of the biggest threats to South African society there is. Nowadays there is frighteningly large amount of people walking into parking lots, who are being hit with that sinking feeling of realization that their car has been stolen. If that happens and you do not have car insurance, what then? How would you afford to buy a new car without the deposit of selling the old one?

In addition to that aspect of crime being a threat to your motor vehicle, you have to consider the amount of motor vehicle parts that are stolen consistently.

It takes someone twenty minutes to steal the tires off your vehicle. Five minutes for the hubcaps and round about the same amount of time to steal your car radio. These are seemingly "small" things to steal in relation to your car but the cost is still going to be painfully high, especially if you do not have the spare money with which to pay.

And yet, people continue to carry on with the daily activities of their lives, feeling that car insurance is a "luxury" because they may or may not have a car accident. This seems to be a chance they are willing to take. Regrettably, the odds of loss in that respect are far higher - seeing as one could be out of pocket with regards to their motor vehicles in a number of ways; be it an accident, the theft of the motor vehicle, stealing of property related to the motor vehicle, and even, chillingly, hijacking.

In South Africa, 12 825 motor vehicles were hijacked in the time frame of March 2005 - March 2006.

12 825 in one year. Suddenly, the odds of losing your car seem much, much higher. To add even more horror to this statistic I will add an important detail - these are only the hijackings that have been reported amongst insured people. The true number is far more elevated than 12 825.

In conclusion, the mindset should be changed to that of a sense of urgency, rather than that of an "unnecessary extra monthly expense."

Motor vehicles are valuable assets, very useful and very lucrative. It is time to realize that it is not only the good and honest people who identify this.

Choosing Comprehensive Car Insurance

You've gotten a letter through your door, slipped your finger beneath the flap, and opened it up. When you pull it from its envelope you find that it is a letter from a car insurance firm, inquiring if you would like to buy comprehensive car insurance with their company. And now you are lost. What is comprehensive car insurance? Is it any different from your current policy? Is it really worth switching? This article will help you understand it a little better.

Comprehensive Car Insurance is the most expensive, but also the most complete car insurance policy that you as a driver are able to get. Every company offers three main policies, from third person car insurance to comprehensive. But not every company offers the same type of comprehensive car insurance coverage.

Firstly, the basic features of comprehensive coverage are that you, as a driver, will be covered against injuring or damaging the property of somebody else, just as with a third person policy. Secondly, this type of policy offers coverage against theft or fire of your car. These are usually some of the benefits and extra features offered in a third party fire and theft policy. Lastly, the extra basic feature included in comprehensive policies is that you are insured against damage incurred on your own car.

Each company offers other individual features with comprehensive coverage. There are companies which also offer you cover against any items which may be stolen from your car, as well as offer you insurance on your medical bills if you are injured during a car accident. But as a consumer you will have to look closely at your comprehensive policy to see if these are included.

Now the most important question of them all comes into play. Do I need comprehensive coverage? The answer might not be that simple as it is usually dependent upon many variables, but here are few that can help you decide.

If your car is an old vehicle running on its last legs, it probably would not be a wise decision to add extra coverage. If you plan to buy a new car in the near future you should take the extra money that you would have spent on a comprehensive car insurance policy and put it towards the car.

Now on the other hand if you have just purchased a new vehicle and it is one of those cars that are usually targeted for theft or otherwise, it would be a wise choice to carry complete coverage. Having a comprehensive car policy is also usually a requirement in order to obtain auto financing as well.

Overall, comprehensive car insurance is the most fully rounded form of car insurance that you are able to buy and though it is also the most expensive, it is usually the best type of policy to have if you can afford it.

Cheap Teen Auto Insurance

One of the most common desires of teenagers is acquiring his or her own car. And when they truly deserve it, they do get one. Of course, before you can allow your son or daughter to drive on their own, they must first meet the required age to secure a license. In most cases, being able to secure a license means one thing for teenagers - freedom!

Once you've got your teens their cars, the next thing that you must think about is car insurance. One of the first and most important considerations is the price of the insurance premium. Most insurers charge higher premiums for auto insurance for teenagers. This is because these companies see most teen drivers as being more reckless and accident-prone than adults.

Fortunately, there are ways in which you can lessen the charges for your teenager's car insurance. These factors might help you get a better deal in the future.

1. A spotless driving record. It is essential that you emphasize the importance of observing traffic laws and of having a clean driving record to your teenager. This means that they should avoid speeding tickets and other such traffic violations at all costs. And, while accidents do happen, being more aware can minimize the incidence of one happening. A clean driving record will be awarded with lower premium payments.

2. Look for auto insurance with a greater deductible. The premium payment is usually less for auto insurance that covers a higher deductible.

3. A car endowed with more safety features. It would be more beneficial to get your child a car that has a lot of advanced safety features. Avoid vehicles that fall under the higher hazard ranking class.

4. Follow license restrictions. Teenage drivers need to stick to the restrictions and guidelines that their licenses specify.

5. Get a stand-alone policy. With this kind of policy, your child will be responsible for his own insurance. As a new driver, he will only be allowed daylight driving, a certificate from a driving school, and the like.

As a parent, the most appropriate thing for you to do is to inculcate the value of responsibility in them. Make them accountable for whatever happens to their car. They can even work part-time so that they can pay for one-half of their premium.