The Painful Truth About Disability Insurance

income protection insuranceHaving to deal and live with an acquired disability, or any form of incapacitation (health or medical condition) is something many people never think of, not until it has happened. Most of us live a carefree life, where we are oblivious of emergencies, accidents and life events such as incapacitations that change ones normal life. This mentality has killed many people’s dreams, ambitions and productivity, persons who never thought of indemnity.

What many people haven’t realized is that, the risk of acquiring a disability is five times that of having a fire or flood incident in their workplaces or homes. This is because many have a blind eye on their neighbors who have disabilities, and never care to know how the disability came to be, and how the person was, or is affected in both financial and emotional aspects. All they see is the visible dangers such as fires and car accidents until the worst happens.

What happens if you are involved in an accident, are incapacitated, unable to work, and had no disability insurance? Without this income protection insurance, you would be unable to pay for your basic needs, mortgages and before you notice it, your car and home are gone. What we are trying to put through is that, if you had disability insurance before the accident happened, the bills and mortgages would have been taken care of, and you would have some money to push you through.

Disability is a glaring risk that many don’t see. Most of the employed persons were lucky as they would benefit from their employer’s insurance policy. Well, this was not until the Obamacare insurance which made many employers drop the overall coverage and forcing their employees to take the government insurance. What you don’t know is that, Obamacare doesn’t have a disability cover, meaning you would have to buy the cover from insurance companies yourself.

Benefits Of Life Insurance For Individuals Over 50 Years Old

life-insuranceIndividuals older than fifty are signing up for a life insurance policy in record numbers.  One of the major reasons for this trend is due to the fact that the cost of living keeps increasing.  Over the past 50 years, the effects of high inflation and high unemployment combined with low savings have really taken their toll on individuals who are over the age of 50.

Older individuals feel they need to relieve their loved ones from the burden of having to pay for their funeral expenses.  A life insurance policy relieves the family from this burden in the event of an untimely death.  Another thing policy holders are doing is clearing away their debt.  That way their loved ones won’t have to deal with the creditors of the deceased.  Some people over 50 years of age intend to leave their loved ones with enough money to continue on with living after their death.  There are several important benefits that come from obtaining life insurance over the age of 50.  They include:

1.  The insurance policy premiums are guaranteed and fixed.  This allows you to easily plan your budget without having any future problems.

2.  Your loved ones won’t need to worry about financial problems if you die suddenly.  the benefits from your policy will go to them.  They won’t be facing a bleak future like they might have if you hadn’t decided to take a life insurance policy out.

3.  Member will be able to get life insurance benefits without needing to qualify for coverage based on a health condition.  This is ideal for any member of the family who might not feel comfortable answering questions that are health related.

4.  Family members will also benefit from the free advice they receive about their financial investments.  The insurance company will be giving them free advice.  This will enable them to make good decisions in regards to their finances.  These is a tremendous benefit that can be very helpful.

Term Life Insurance Vs. Whole Life Insurance

Life insurance serves policyholders by paying loved ones after the policyholder’s death. It cannot protect anybody from death. It’s a way of paying benefits to dependents.

term versus whole life insuranceTypes of Insurance
There are many types, but for most purposes, the debate boils down to term life and whole life insurance. People commonly refer to term life insurance as a temporary insurance. You pay only during the term you take it out. People consider whole life to be a permanent life insurance. You pay annual premiums your whole working life. There are advantages and applications to both types of insurance. Many people have life insurance because it’s an investment.

Term Life Insurance
This makes the distinction between the two types of insurance easy to discuss. If you have a situation where dependents would need money to pay for something, like a college education, you might take out a term life insurance policy to cover the cost of college in the event of your premature death.

With a term policy, you take it out for the length of time your loved ones need the money. At the end of those years when the circumstances have passed, you cancel your term policy and you get nothing back of the money you paid. After all, this is not a savings account. People consider it pure insurance.

Whole Life Insurance
Whole life insurance encompasses the whole of your life. It amounts to an investment. It forces people to save money when they might otherwise not do so. It has a low guaranteed return, less than a savings account, but the insurance company pitches whole life insurance policies with a higher, non-guaranteed return. They often claim it will come in a few points higher than the guaranteed return.

Whole life insurance works well as a forced savings device and as a vehicle for conservative investors who are happy with a low return. Because the return pays less than most passbook savings, many investors object to this kind of insurance. In addition, the annual premium is high. The return is low because the insurance company takes out commissions and fees. Many people believe they would get a much better return on their own investing the money themselves. While this may be true, it does force policyholders to save. Whole insurance will pay retirement benefits and death benefits.

If you need insurance only for the short term, consider term insurance. If you have trouble saving money and are happy with a conservative investment vehicle, buy whole life insurance.