Business and Investment Center

There are many types of life insurance policies. Before you venture out for one, learn about them and see which one is applicable to your needs best. The following are the most common ones:

1.    Term life insurance: This type of insurance is the most basic of all. Its one and only function is to cover your life with an amount of cash which on even of your death will be given to your nominee. Here the death benefit is equal to the policy limit. This is a good way to have mental peace in the conviction that you will provide for your family even in the event of death. This is good thing to have as a stand by any day.

2.    Whole life insurance: This type of policy besides providing a fixed amount to your nominee on your death, it also gives you a financial gain over time as an investment would. The benefits you get out of this type of insurance is:

a.    pays a fixed policy amount in event of death
b.    gives you an investment amount that is free of tax
c.    protects you from rising prices – the premium is fixed for the life despite market fluctuations
d.    pays dividends as any good investment plan
e.    offers you freedom to sell the policy back at any given time you choose

3.    Variable life insurance: This type of insurance is much more flexible than the whole life insurance.  The best benefit here is the fact that it allows the policy owner to borrow against the policy maturity amount. In this way not only you are insured but you also have a very decent source of borrowing at a lower rate than the market price interest rates. The variable life insurance too offers the benefit of tax-free ash accumulation that is a great incentive for investing in insurance the world over. There is another benefit that accrues from this type of insurance, i.e. the amount that is to be paid as a benefit to the nominee of the policyholder can be varied according to the need of the beneficiary (in relation to the funds available in the account).

4.    Universal life insurance: This insurance one of the most flexible of all types of insurances. It not only covers the death, but also allows you a host of other benefits:

a.    As all insurance policies, it pays the beneficiary a pre-arranged amount of cash in the event of your death
b.    It provides a tax-free cash investment – which can accrue interest at market value
c.    It allows complete flexibility on the premium making it easy for you to keep up with your payments even in lean times
d.    At the same time this type of insurance allows amount flexibility

5.    Universal variable life insurance: This is the ultimate among all the insurance policies. It allows you complete freedom on the way you invest and recover your investment. You have full control upon your cash at all times:

a.    it pays the beneficiary a pre-arranged amount of cash in the event of your death
b.    It provides a tax-free cash investment – which can accrue interest at market value
c.    It give you total premium flexibility
d.    It allows to withdraw cash from your policy at any given time throughout your life time
e.    It allows you to borrow against the maturity amount at subsidized rates of interest
f.    It allows you to terminate the policy at any time, however, in that event your maturity amount will be reduced according to the time in question

Life insurance first and foremost role is to protect the near and dear ones in even of one’s death by providing an alternative source of income. Today, however there are a number of benefits added to the main role. Check out the latest developments and choose well. Get value for your money.

Small businesses help keep our country going. But a small business needs help to keep going after the loss of someone vital to the company. There are options available you need to know about.

KEY PERSON IS ANYONE WHO IS IMPORTANT

In small to medium size businesses, the key person may be the business owner, a top sales rep or the person who does the financing. What would happen to that company if one of these key people were to suddenly die? There may be a rough period of transition until a replacement is found. If the owner was the one to die, that could mean the resulting death of the company. Losing the top sales person may mean losing some of those accounts that kept the business running.

YOU NEED LIFE INSURANCE ON THE KEY PERSON

The key person is someone who is vital to the company; someone who cannot be easily replaced and whose knowledge is key to the company. By not recognizing the affect the death of this person may have on the organization, a business may be setting itself up for failure. A few simple steps can be taken that will help ensure the business will be prepared for the unexpected.

KEY PERSON LIFE INSURANCE FOR THE COMPANY

Key person life insurance can do several things for a company. It can give them the means to establish a business continuation plan. It can provide the economic means to find a replacement and give them the training needed to fulfill the duties of the person that was lost.

In situations where the death of the owner otherwise means the death of the company, key person life insurance can be used to pay existing debt and allow for an orderly transition to take place.

IS KEY PERSON LIFE INSURANCE IMPORTANT FOR YOU?

The need for key person life insurance depends on your circumstances; maybe you haven’t thought about the need or even considered it. If your business relies on you or key associates, you need to think about what exactly it is that you need to protect.