Looking at a Whole Life Insurance Definition

Probably the simplest and most direct way of explaining to someone exactly what a whole life insurance definition is would be to say that a person purchases a policy for a specific amount of money, pays monthly or annual premiums for it up to a specific designated age which can go as high as a hundred years old, and when they pass on, that designated amount is paid to their beneficiaries. There can be any number of variables attached to these policies by agreement between the holder and the issuing company, but this is the basis they all begin at. Some of the possible considerations might involve the policy building cash value which might be borrowed against over time, an earlier age for ceasing having to pay the premiums, and a way of lowering those payments over time by utilizing that cash value build-up to do so. These alternates can be worked out at the beginning, or at any time along the way that the policy is in effect.

When folks are talking about what it is to sell structured insurance settlements, again, basically it is this. One of the terms of the policy the owner made was that upon their demise, instead of a lump sum payout, the proceeds would be offered on a monthly allocation plan to the heir. In many instances the policy holder recognized that this would be of particular value to the heir who may have shown poor ability in handling bulk sums at any one time. This way of handling it would help ensure they would be protected into the future. At some point though, that person might decide for whatever reason such as a medical emergency, or perhaps a child’s education, they would like to get the money immediately. There are any number of companies willing to buy their structured settlement for a lump sum. Obviously, these companies are in business to make a profit, so the payout will be for a lower number than the recipient would receive over the course of time. It may however, prove to be in their best interest to close the deal at once.

All of these issues and considerations require a lot of thought, and one might be wise to seek outside counsel to assist in the final decision. Seeking a professional is solid advice on almost any topic, but especially finance and life insurance. They will be able to help you much more than Internet research alone.

Auto Insurance Definitions Simplified

Auto insurance terms can be confusing, to say the least. Below are auto insurance definitions in layman’s terms.

Anti-Theft Device – Anything on your auto that reduces the chance that it will be stolen or that makes it easier to find if it is stolen. Examples include:

* Car alarms

* Keyless entry systems

* Starter disablers

* Vehicle identification number etchings

* Auto tracking systems

Bodily Injury Liability – The amount your insurance company will pay if you injure or kill someone else with your auto.

Collision Insurance – Coverage from your insurance company for repairing or replacing your auto if it collides with another vehicle or object.

Comprehensive Coverage – Coverage from your insurance company for repairing or replacing your auto if it is damaged by anything other than a collision or is overturned.

Claim – Any request for payment under the terms of your insurance policy.

Deductible – The amount you pay out of pocket before the insurance company begins to pay on a loss.

Good Student Discount – A discount that insurance companies give students who earn high grades in school.

Insurance Comparison Website – A website that allows you to quickly and easily get auto insurance quotes from multiple insurance companies (see link below).

Medical Payments – The amount your insurance company will pay for medical and funeral expenses caused by an auto accident.

Multi-car discount – A discount that insurance companies often give if you have more than one vehicle insured on the same policy.

Multi-policy discount – A discount that insurance companies often give if you have more than one policy with the same company.

Per Occurrence Limit – The maximum amount an insurance company will pay for all claims from a single incident.

Per Person Limit – The maximum amount an insurance company will pay for one person’s injuries caused by a single incident.

Property Damage Liability Insurance – The amount your insurance company will pay for damage you cause to someone else’s car or property.

Where to Get Cheap Auto Insurance Rates

After the Event Insurance Definition

After the event insurance definition explains the type of insurance that is normally taken out after the cause of a legal dispute has commenced. Some businesses are exposed to risks more than many others, therefore they do need to make arrangements to get legal and financial protection against any unexpected claims. This type of insurance is compulsory for some businesses and usually covers all sorts of cases that are brought about as a result of physical injury or mental anguish caused by actions or negligence of another party. An event can either make or break any business and there are cases, when you have to face a lot of risk in organising an event. With the right kind of insurance, you are able to deal with any unexpected financial crisis and legal consequences with absolute confidence.

• Auto accidents, product defects, defamation of character, and medical malpractice all come within after the event insurance definition rules. It often includes permanent disability, grave injury and even death. You may not be required to pay any upfront premium as in most cases, the premium is payable at the conclusion of the claim, which is usually recoverable and proportionate to the risks in the case. The victims in the case depend on the personal injury lawyer to make a claim and recover financial damages that are required to cover their medical treatments, replace permanently lost income, as well as the compensation for other things.

• In order to find out, who is responsible, the court looks for negligence or carelessness by one of the parties involved. Whoever is proved to have been less careful is legally responsible for at least part of the damages incurred, as a result.

• You can contact a legal professional in your area for help and an advice on after the event insurance definition and rules, in order to be sure if your case has validity according to the rules of the law.

• There are many experienced insurance providers who are always keen to meet their clients’ needs for reliable, competitive event insurance and will carefully assess your insurance needs, first. They are able to look for the product that best meets your insurance needs and also extend the cover against cancellation, rescheduling or any mishaps occurring while arranging the event or even during the actual event. Your insurance company might however, consider your chances of winning or losing before offering you the cover.

• Whether it’s a business dinner, your private party, a celebration, exhibition, fireworks display and sports competition, you can get a reliable, simple to understand and an inexpensive comprehensive insurance package to help you through your difficult times.

Before making a decision of taking out a policy you must understand after the event insurance definition and carefully go through the terms and conditions of your insurance. This will help you find out whether the policy covers all the aspects, be able to meet all your needs and fully protect you against any claims or not.

A Closer Look at the Term Life Insurance Definition

A number of terms regarding different insurance policies are commonly used today. In fact, the differences between the terms are often used interchangeably that one has to know exactly what makes the disparity. The term life insurance definition is very concise in nature but offers a noticeable dissimilarity from that of its counterparts.

Term insurance definition states that it is the simplest policy which sets a limited period for coverage. Basically, this is a form of insurance which has the most basic areas of coverage, with the shortest term of one year, with no savings integrated in the policy, and provides a death benefit.

In order to fully understand the meaning of term insurance, a comparison must be made between it and another form of life insurance which is the permanent insurance.

Difference Between Term Life Insurance and Permanent Insurance

Another form of life insurance is the permanent insurance. By looking at the definitions of the two forms, one could immediately take into account the first words preceding “insurance”. Term life insurance conveys that it is the type that is of a limited duration or one having a specific term or a period with one year being the shortest period that it could hold validity. On the other hand, permanent life insurance depends on the life of the insured person, and payout is guaranteed at the end of the policy with the assumption that the policy is updated. This is also more expensive than term insurance because it does not expire as long as it is kept current.

Term insurance has been the popular choice due to its affordability. Not only it is reasonably priced, it also offers a wide area of coverage. The areas covered by term insurance are tuition fees of children in school, debts, liabilities, mortgages, funeral costs, and businesses. Although it is for a short term, the coverage of this type of insurance is vast enough to answer the most basic needs of an individual or a family.

Permanent insurance has a wider scope of coverage, has extra features included in the policy, and is more expensive than the term insurance. It has the capability to accumulate funds of which the insured could borrow advances to pay for a child’s college education, for a liability, or for other needs to be met. It also provides a death benefit for the beneficiaries of the insured which includes funeral costs as well. Most of all, this type of insurance does not expire and it continues to exist as the insured person ages.

The term insurance definition could be construed in relation to the benefits that it offers. Although there is a big discrepancy between the advantages in choosing a term insurance over a permanent insurance, having insurance even for just a particular period of time is way better than having nothing at all. It still offers security in times of need and affords protection to the insured and his family.

In the future, more insurance policies would come out, with newer terms to indicate more benefits, but the term insurance definition would always be remembered as getting lots of benefits at a minimal cost.

It should be easy getting a whole life insurance definition. But it’s not. This is because it can be quite a complicated product and also because some of the terms used in relation to it are misleading. For instance it is widely presented as having an ‘investment’ element when it fact it doesn’t. This ‘investment’ element is in fact a savings element which is rarely referred to accurately because of confusion in understanding about what is an investment asset and what is a savings asset.

What you get with a whole life insurance policy

A whole life policy not only provides a death benefit, which is common to all life policies but something more. These policies have a cash value component which also goes to your heirs at the time of your death. The premiums of whole life policies are set above what is needed to cover the value of the death benefit alone and the difference is spoken of as being ‘invested’ on your behalf by your insurer. This so called ‘investment’ is not however speculative as normal investments are. It is quite common for the return you will get to be precisely defined in the policy.

The definition of a whole life policy has to include this cash value component of the policy as well as the death benefit component. It also should include it’s character as a savings asset. What this means is that money put into the policy is ‘saved’ in comparable way to money put into a bank account.

Whole life insurance is a savings asset not an investment

The sales asset character of a whole life policy is not exactly like putting money aside for when your heirs need it. Certainly that is true but it leaves out the leveraging effect of this type of savings asset. All life insurance is tax exempt, including whole life policies. This means that money put into one of these policies is worth more to your overall estate than just it’s face value.

When you die, your heirs get a death benefit. They also get the value of the premiums you have paid for this policy minus administrative costs. This cash value component however has a higher value for your heirs than money put aside as savings. They receive this money without having to pay any tax on it. For this reason people practicing careful estate planning usually include a whole life policy within their portfolio because it allows them to pass on part of their estate without their heirs having to pay tax on whatever amount is involved..

How are whole life policies different to term life polices?

With term life insurance you pay set premiums as you do with a whole life policy but you are covered only for a specified term, say 10 years, not your whole life. In addition the premiums you pay for term life policies do not accrue as a cash value to you. If you die, you heirs get a death benefit but not the value of the premiums you have paid. To reflect this difference the premiums paid for term life policies are lower than they are for whole life policies.

The difference between term life and whole life policies is not just cheaper premiums but that term life pays a death benefit only. To be fully accurate the whole life insurance definition must include it’s character as a savings asset which can be used in estate planning as well as also being a life policy. Both forms of life policies provide death benefits which are tax exempt but if you want to leverage the tax exempt status of a life policy then you need to buy a whole life policy and with your financial advisers work out how to use the cash value part of the policy to benefit your heirs financially.

If you are buying a life policy to provide a death benefit to your heirs or as a form of burial insurance or as a way of covering financial obligations at the time of your death then you can quite appropriately buy term life insurance. Of course a whole life policy will also deliver the above benefits but if you are buying life insurance as part of a complex set of investment and estate protection then only a whole life policy will do. Whole life insurance definition must include it’s complex nature and its capacity to fulfill this latter purpose. As with all forms of insurance get a quote from a reputable insurance company to help you make up your mind which life policy is best for you.