Many people have to make multiple trips throughout the year, whether in their own country or abroad. Since insurance has to be taken for their travels, they take separate policies for each venture and end up paying a lot in total. A more viable option would be cheap annual travel insurance. This policy covers your travel expenditures for a period of 12 months. It singly performs the function of the several insurance policies that you would otherwise have to take. As such, it is the most cost-effective policy that you could find. Cheap annual travel insurance makes traveling cheaper. The premiums that you have to pay for it are lower in amount than the total that would be spent on several separate policies. Plus it covers a lot of contingencies which you might meet on your trips: o Cancellation or delay of flights o Loss of luggage or delay in delivery o Medical expenses o Evacuation support for emergencies o Any interruption during the trip Cheap annual travel policy is something that can help you tour frequently while giving you peace of mind. They are being offered by a lot of insurance companies. You can log on the internet and check out the websites of the various agencies. To select the most affordable offer, you may gather free insurance quotes and compare them to arrive at a conclusion. However, you should keep in mind that cheap annual travel insurance is not for everybody. It is not doubt an excellent choice for those who have to travel often throughout the year, may it be for business for pleasure. If you are someone who is not likely to make as many trips, then this policy may not be the right choice for you.
I went to Answers.com to define whole life insurance. A type of life insurance contract that provides for insurance coverage of the contract holder for his/her entire life. Upon the inevitable death of the contract holder, the insurance payout is made to the contract's beneficiaries. These policies also include an investment component, which accumulates a cash value that the policyholder can withdraw or borrow against. Let's look at some components that make up a whole life insurance policy. 1. for his/her entire life The policy is structured to last you your "entire life" instead of a "term". As long as you keep paying the premiums, the policy will be in force regardless of age and health. 2. beneficiaries Just like term life insurance, beneficiaries exist in a permanent life insurance policy. But, what many fail to realize is that there are living advantages within this contract. You yourself can benefit if you utilize the living benefits. Of course, being aware of them is the first step. 3. cash value The premiums consists of a cash value as well as a death benefit. As stated above, the cash value is available to the policy holder to withdraw or borrow against. The above is an accurate definition. But to make this more interesting, I searched for Suze Orman to define this insurance product. She says: * I HATE WHOLE LIFE INSURANCE * THE ONLY TYPE I LIKE FOR THE PURPOSES FOR INSURING YOUR LIFE IS TERM INSURANCE! If you asked Suze why she hates whole life insurance, I'm sure she'll reply in the same tone: IT'S EXPENSIVE! Before my wife and I trained for our half marathon, we bought expensive running shoes. We went to a place that helped us find the ones that fit our running style. Buying cheaper shoes at your everyday sports store can gradually damage your back, knees, and feet. We were willing to pay extra for the return in value. Is there value to the higher premiums? To help define whole life insurance rates, let's look at why the premiums are priced high. There is a 100% chance that you will die. So, as long as you continue paying the premiums, the death benefit will be available upon death. Regardless of your age and health, the premiums will never rise. For example, if you sign the contract when you're 20 years old, and healthy and at 50 years old your health deteriorates, your premiums won't change. You are still locked into the rate from 30 years prior. There is no term or renewal period. So, is it really more expensive? It is affordable. You have the ability to recapture the premiums paid because of the investment component built into the policy. There is a guaranteed interest rate and the cash value within the policy can never lose its value (not the case with stocks and 401k). As time progresses, the premiums get cheaper because of inflation. Inflation is one of the eroding factors of money. So, in the later years, you'll be paying these premiums with inflated dollars. Now, how do you define whole life insurance? Have you experienced a paradigm shift? Many despise these policies because of it's high premiums. But we're trying to be different. Instead of looking at the costs, focus on the returns. That's what the rich do. Maybe Suze is right. Maybe for the purposes of insuring your life, term life insurance is the ticket. However, what if you could insure your life, build your savings, and invest all with the same dollar? That is called the velocity of money. Just like the shoes above, it's more expensive in the beginning. But, consider the value that it provides. The question is, can you use these policies to help you run on your journey towards financial freedom? Key Points 1. Whole life insurance provides living benefits, not just the death benefit. 2. There is a 100% chance that you will die. Put that statistic to your advantage. 3. These policies aren't as expensive as people perceive. The value that whole life insurance provides outweighs the cost.
If you are thinking about traveling whether it is to another state or to another country, there are some precautions that you need to take; the most important of which is to purchase travel insurance in order to be protected in case any unexpected event or accident threatens to ruin your trip. Travel insurance will protect you from these unforeseen events and reimburse any costs that you may incur in due to them. There are many things that can happen during a trip that can imply additional, non foreseen costs like accidents, emergency medical or dental bills, theft, luggage loss, cancellation, delays, etc. All these events result in additional an non expected fees and expenses that can add up to the overall trip costs if you do not have proper insurance and can even ruin your vacations if you are not covered. Getting a Suitable Insurance Policy There are many different travel insurance products but not all of them adapt to any circumstances. Thus, it is a good idea to contact good insurance brokers and tell them about your needs. They will be able to customize a product suitable for your trips' particularities and will also find you an insurance company that is both reputable and competitive so you can get the best deal available. If you do not want to resort to the services of a broker, then you can do some research yourself by looking for travel insurance quotes on the internet with your favorite search engine. You need to compare the results and contact the insurance companies informally. Remember not to sign anything till you have compared at least three different options because there are many unscrupulous agents out there searching for their next rip off victim. Focus On the Coverage Rather than On The Price When it comes to insurance, you should never purchase it focusing your decision on the price of the policy. Instead, you should concentrate on the coverage that the policy provides and only after selecting the proper coverage for your needs, you should then shop around requesting insurance quotes from different companies but specifying which kind of coverage you want. After all, an insurance policy is useless if it does not cover what you want and purchasing travel insurance only implies that you will be protected against certain risks included in the policy. If just for the sake of bargaining you end up closing on a deal with a limited coverage that does not include a risk that you will be running you may end up with a useless policy or at least, you will be under-covered. There are predefined packages that include travel and life insurance for those who travel frequently. These products can be advantageous as all the costs that are not related to the risk (i.e. administrative fees) are shared and not charged twice. However, if you have specific needs, if you run additional risks (visiting war-zone countries, epidemic zones, etc.) it is wiser to have your insurance broker customize a policy specifically for you.
Universal Life Insurance, also called Permanent Life insurance, is the type of policy where you also hear the term, "cash value". The cash value is the difference between the amount of your premium paid, and what the insurance's actual "costs" are. The difference accrues into a cash value, and the insurance company pays interest on this cash value it accumulates. Often times, in the earlier years of the policy, your premiums heavily outweigh the insurer's "costs", so you are basically accruing "cash value" on a tax-deferred basis. Your death benefits and premiums are flexible, without having to rewrite the policy, if you decide to make changes. The cash value can be used to have your premium deducted, if you have enough value. You also hear about people borrowing against their "cash value", however, these loans will be deducted from the death benefit, it not repaid and also will become taxable. Many people chose Universal Life or Permanent Life as part of an investment strategy, they build cash value with tax deferment, if interest rates are high-they will earn interest above the insurer's costs, and some policies are written as Variable Universal Life policies, where you can even direct investments in mutual funds and other stock and bond issues where the risk of return (or loss) may be available. You can also borrow against the cash value, in the event of an emergency, and they offer flexibility on the benefit or premium. The advantage of Universal Life policies is the flexibility they offer. You can invest, borrow, and set premiums and benefits to fit your budget. The disadvantage is that you can lose cash value through a downturn in the basis investments, low interest rates or if the insurer's costs deplete the cash value, making the policy worth nothing. If the cash value gets depleted due to downturns in investments or the insurer's costs exceeding the cash value, the policy is expired, your premiums lost and you have no death benefit. In contrast, Term Life Insurance is a policy that is purchased for a set death benefit amount, with set premium payments and a guaranteed payment to your beneficiaries, as long as you keep the premium payments current, no matter how the insurer's costs or investments perform. It is a much safer and guaranteed life insurance policy, if your goal is to have a benefit paid after your death, to help your loved ones with expenses. Term Life Insurance is not really part of an investment strategy, but a protective strategy. Universal Life Policies, as you can see are basically, a financial investment growth strategy, with risks involved that may or may not take care of expenses after your death. It is often called permanent, because, "it is permanent, as long as your cash value pays the premiums, or you pay the premiums, but your death benefit is not a guaranteed value, but it assumes it will be permanent as long as premiums exceeds costs, but it is NOT guaranteed your whole life". As you can see, life insurance can be confusing, but may not be the best investment strategy.
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