|
How to get the most out of life insurance for smokers |
|
Smoking is a dangerous activity. Yet, many of us love smoking for a variety of reasons (or excuses). As a result of this, our chances of succumbing to cancer of the mouth, lungs, throat etc are increased a lot. Our life expectancy is reducing with each cigarette we smoke. The life insurance companies know about this too. Hence, they are going to transfer the added burden of the risk posed by us to the life insurance for smokers. The life insurance premiums for smokers can be higher than non-smokers. We can't blame the companies, they are expected to safeguard their interests.
Can you just lie about your smoking habits in your life insurance application and gain low premium amounts? It may work for you in the short run by providing cheap life insurance for smokers. But, the insurance companies are ruthless in parting money from their part. At the time of your death, they may conduct an investigation in to your medical history and may find out the truth. As you are bound to provide them with real information, this will nullify the validity of the life insurance cover. The life insurance for smokers obtained fraudulently can become useless for you in the end.
|
|
|
Tips for buying term life insurance |
|
The financial ability of all people purchasing life insurance is never going to be the same. Some people are going to be in a financially sound position and can opt for any type of cover of their choice. The vast majority of the rest of the Australians are not in such an enviable position. As they are struggling to achieve their daily needs in this tough worldwide recession, they may not have much savings to buy expensive insurance cover. Buying term life insurance is a good choice for such people.
As is implied by the term 'term' in its name, this life insurance cover is for a specified period of time only. Hence, it has low premiums associated with it, due to the lower risk associated with it. As such, buying term life insurance is an option available for people without the financial mettle to purchase more expensive types of life insurance policies.
In case the person dies within the validity period (can be 5 years, 10 years etc) the insurance amount will be paid. In case the insured person survives this period, no money will be paid. This is the major disadvantage of buying term life insurance cover.
|
|
Term vs Whole life insurance |
|
The two prominent choices of life insurance available for Australian people to purchase are term life insurance and whole life insurance cover. Let us go through the pros and cons of these two policies.
Term vs Whole life insurance
Term life insurance is basically meant for people who cannot afford the expensive whole life insurance cover. This cover has much lower premiums associated with them than whole life insurance. How is this possible? As the duration of cover is much smaller, the risk of payment on the insurance company is much smaller than that of whole life insurance. Hence the company passes those savings to the insured person.
Whole life insurance cover is better due to its lifelong validity. But, it is affordable only for the affluent people of the society. For the average Joe, a term life insurance policy may be the only option due to the financial down turn happening all throughout the world. If the financial strength of the insured person improves by the need of the term life insurance policy, he may choose to renew it for a longer duration.
The answer for term vs whole life insurance question can be a mixed one. For some, the former is the right one, for others, the latter hold true value.
|
|
|
|
|
<< Start < Prev 1 2 3 4 5 6 7 8 9 10 Next > End >>
|
|
JPAGE_CURRENT_OF_TOTAL |
