Universal Insurance

July 8, 2011

Advantages and Disadvantages of Life Insurance – Pros and Cons of Variable,Universal,Term Life Insurance and Investments

Life Insurance is one of the most widely available and used financial products being used by people.But before buying various types of life insurance such as variable,term life insurance not many people do a pros and cons analysis.This is quite sad since it is one of the biggest yearly expenses and is one of the most important security assets for our family in case of death or serious injury.Life Insurance has different meanings in different countries as well.In India Life Insurance is mostly looked upon as an investment product.Most people buy insurance as an investment product leading to the wide prevalence of hybrid insurance investment products like ULIPs ,Child Plans etc.It is easily found that these hybrid products are wasteful since it would be cheaper to buy separate investment and insurance products.The main reason for the misselling is the financial illiteracy and ignorance about the advantages and disadvantages of life insurance and its products.Life Insurance Companies also don't do a very good job in educating people about the right type of product as it is more profitable for them to sell the products which are disadvantageous to the customers.So we have a case where Life Insurance products advantages and disadvantages are not known and understood by most people around the world.
July 3, 2011

Extended Term Insurance Explained – Policy,Cash Value Amount,Nonforfeiture option

Extended Term Insurance is not another form of Insurance as many people think but it is an option in a Whole Life Insurance Policy.For those who don't know what a Whole Life Insurance Policy is that it gives a death benefit and a cash value based upon fixed premiums that is paid by the customer.Unlike Term Insurance,Whole Life Insurance has both a Cash Value Benefit and a Death Benefit.The Cash Value is paid to the insured in case that he does not die during the term of the policy.In Term Insurance there is no such Cash Value Amount that is paid.This is the reason that Whole Life Insurance is more expensive that Term Life Insurance.