Life insurance is hard to understand, but understanding how the premiums are computed is even harder. Calculating premiums is not as straightforward as calculating premiums for other kinds of risk. Your life insurance rates are based on your health at the time you buy the policy, and that risk assessment is made by a physician. If you are not in top shape, or if you indulge in risky behaviors, the insurance company expects to pay out more benefits than if you were healthy and did not put your health at risk. That is why a physical exam is usually required before a company issues a life insurance policy.

Once the results of the exam are, the company will review not only those findings, but also your family’s medical history, your personal driving history, and probably records of your health insurance claims and credit score as well.

In addition to the driving and medical reports, your insurer will ask you to fill out a questionnaire about your lifestyle and health issues. Although it may be tempting to sway the results, be honest as you answer the questions and fill out your medical history. If you are found to have been dishonest anywhere in your application, then the company can refuse to pay benefits in the future. Any insurance company will be able to cancel your life insurance policy if they determine you lied during the application process.

After reviewing all these reports, the company assigns you a score that reflects your risk. That is why the premium you wind up paying may not be even close to the quote the agent gave you when you applied for coverage. If the insurer determines that you are a higher risk level than was originally assumed, your premiums will be higher than your quote.

There are ways to lower your risk. Take good care of yourself. Maintain a healthy weight. Eat well-balanced meals and exercise on a regular basis. If you smoke, stop. Drive safely, and don’t get tickets. Auto crashes will also raise your life insurance premiums, not just your auto insurance premiums. In general, be smart. Don’t take unnecessary risks

The insurance company also considers factors outside your control, like gender and age, in computing your premiums. That is why it is so important for you to do everything possible to improve your health and lower your risk. It’s a good idea to do your research, ask several rounds of questions, and get several quotes before choosing your life insurance policy.

Tom Martens is the content syndication coordinator at Lifeinsurance-Southafrica.co.za South Arica?s leading Life Insurance and Life Cover portal.

Most of us buy life insurance to make sure that our loved ones are protected in case of our death. Others of us use whole life policies to finance life’s passages, such as college, marriage, or retirement. Whole life policies can also be used to help you handle those unexpected and expensive moments we all encounter. Defining your financial goals to determine exactly why you need life insurance will help you make the most of your life insurance policy. You need, and most of us do need, some coverage to provide a death benefit. That’s especially true if you have people dependent on your for their living expenses. You will want to make sure they are covered in case of your death, or a devastating illness, or an accident. And if you need more income for retirement, consider that, too, when you choose the type of coverage to meet your life insurance needs.

Once you decide why you need life insurance, then choose the type of policy that best meets your goals. Knowing what you want your life insurance policy to do for you enables you to get the maximum out of it, for both you and your family.

There are two major types of life insurance policies. Term policies, as their name suggests, cover a set term, usually a set number of years. These policies are less expensive, but they do not accumulate cash value and they only provide a death benefit. This cash, of course, can be accessed to cover funeral expenses. Many people combine term coverage with whole life, and a qualified insurance agent can help you determine the best mix for your needs.

After you determine what you want your life insurance to do for you, you have to make sure you can make the payments. Every kind of life insurance requires you to pay a premium. Term policies are usually less of a budget breaker than whole life, but they do not help you accumulate wealth. Make sure the policy meets your needs, but also make sure it fits your budget. Have in mind what you can afford to pay before you commit yourself to policy specifics.

Regardless of what you want from a life insurance policy, you need to be realistic. Make sure you are using your actual earning power and realistic retirement goals if you want the policy to replace your income. Don?t skimp on death benefits, as funeral costs are expensive and continue to increase. Make sure your family is taken care of, which will truly allow you to get the most out of the policy.

Think about where you are in your life and what you still want to accomplish. After you have all those ideas mapped out, then you will be able to decide which policy is right for you. Ask questions of a licensed insurance agent. He or she can help you find the policy that is best for and make sure your loved ones are protected.

Tom Martens is the content syndication coordinator at Lifeinsurance-Southafrica.co.za South Arica?s leading Life Insurance and Life Cover portal.

Insurance protects us against risks, and having insurance policies seems to be a normal part of life. While insurance has been around for centuries in one form or another, the versions of insurance policies we are so familiar with today are relatively young.

Insurance itself can be traced back to the ancient Chinese, around 5000 BC, as a way to protect traders. There are also stories of a more humanistic form of insurance, with neighbors helping neighbors and settlers taking care of each other during difficult periods in history. While that has no monetary value attached to it like our current insurance policies do, we consider that insurance because of the gesture of caring and providing for someone else. What we think of as life insurance didn’t come along until later.

In ancient Rome there were “burial clubs.” Members of these clubs were protected against funeral costs and their survivors were given financial aid. The origins of the burial clubs were religious. The Romans believed that if someone was not given a proper burial, he or she could not find peace in the afterlife. For all but the very rich, burial clubs were essential to finding peace in death, because every proper funeral required a large and often lavish celebration.

Modern life insurance dates back to the late 17th century in England. Life insurance was originally designed to protect traders and merchants. The first insurance providers would meet their customers at coffeehouses and pubs to draw up insurance contracts. These were the common meeting places of that era. This form of life insurance was designed to protect those who brought goods into the community and those who sold them. It was a way to protect and insure commerce.

The earliest American life insurance company appeared in 1732 in Charleston, in the colony of South Carolina, although at its founding, the company only offered fire insurance. Life insurance was not sold in the Thirteen Colonies until the 1760’s, but it quickly became a big business. In the southern states of the US, life insurance policies were issued for slaves. One company in New York allegedly issued 485 policies on slaves in just two years during the’40’s. However, as the northern states became more adamant in their opposition to slavery, insurance companies were ordered to stop insuring slaves. If the records are to be believed, the sale of life insurance on the lives of slaves stopped several years before the Emancipation Proclamation of’63. Ordered to search their records to purge any policies that indirectly supported slavery, life insurance companies found no such policies even before the Civil War.

Regardless of what type of insurance policy you may hold, it is clear that the history of insurance is a rich and complex history. But one constant hasn’t changed. Insurance is designed to protect us from whatever life sends our way. Contact a qualified insurance provider if you have questions about how insurance can benefit and protect you. A qualified insurance provider will examine your specific situation and help determine what type of insurance will best protect you and your family.

Tom Martens is the content syndication coordinator at Lifeinsurance-Southafrica.co.za South Arica’s leading Life Insurance and Life Cover portal.

A life insurance policy is exactly what its name suggests’an insurance policy covering the loss of your life. You buy your life insurance policy from an authorized agent, paying the insurance company a set monthly, quarterly, or annual premium. In return, the insurance company agrees to pay out a contracted amount of money after you decease. The proceeds from your life insurance policies go to the beneficiaries you designate, typically in a single lump sum payment. If your do not designate beneficiaries for your policy, then the insurance company makes the lump sum payment to your estate.

There are two basic kinds of life insurance: Term insurance, also called protection policies. These policies are temporary, providing coverage for a specific number of years for a set premium.

Term policies have no cash value. Basically, you buy protection in the event of death and nothing else.

Whole life, also sometimes called permanent life insurance. The objective of whole life insurance is to accumulate money through the payment of regular or lump-sum premiums on which interest is paid, while also providing coverage in the event of death. Whole life coverage is sometimes also called permanent life insurance. The premiums you pay for whole life do not change, and there is a fixed, guaranteed cash value for the policy. The funds accumulated from the payment of premiums each year can be paid to you whether or nor you die, for emergencies, vacations, retirement, or other expenses. If you take these funds for other purposes, of course, they are not paid when you die.

The type of coverage you buy generally depends on the goals you want life insurance to accomplish. Many people find that term coverage suits their needs, if they just want to make sure that their bills are paid and that their heirs receive some cash after their deaths. Other people want a reliable source of cash accumulating year after year as they pay their premiums. You can speak with qualified life insurance agent to determine which kind of policy is best for you.

The type of life insurance policy you need will depend on why you are purchasing the insurance and the goals you want the insurance to accomplish. Most people find that a simple term life insurance policy suits their needs, while others want to make sure their bills are paid and their heirs receive a settlement after their deaths. You can discuss your needs with a qualified life insurance provider in order to determine what policy is best for you.

Life insurance usually covers death, dismemberment, accidental death and serious illness, depending on the type of policy purchased. Proof is required in all cases before payment will be made on any life insurance policy, regardless of the policy type. To purchase life insurance, you will need to get a quote from a qualified insurance provider, give an accurate picture of your medical history and receive a physical examination from your doctor. Once you pass your physical exam and your medical history is approved, a premium is required. After the premium is paid, then your life insurance policy is activated. A qualified insurance provider can also answer any specific questions you may have, as well as help design and tailor a life insurance program to help meet the needs of you and your family.

Life insurance can be complicated to understand, especially when it comes to how the premiums are calculated. It?s not as simple as other insurance policy purchases. First, your life insurance cost is based on your health at the time of purchase and a risk assessment that is conducted by the insurance provider. If you are unhealthy and/or engage in risky behaviors, expect to pay higher costs for your life insurance than someone who is healthy and doesn?t put themselves at risk. That is why a physical examination is required before the provider issues a life insurance policy.

Once the physical exam is conducted, the life insurance provider will review the exam results, your family?s medical history, your driving record and possibly other medical reports. A credit report may be obtained as well.

Life insurance companies usually ask you to fill out a questionnaire about your lifestyle and health issues that do not come up during a physical. However tempting it may be to try to sway the results, be honest as you answer the questionnaire and as you fill out your medical history. Any dishonesty anywhere in your application will give the company grounds to cancel your policy in the future?perhaps after you are gone and cannot do anything to contest it.

From all these reports, the insurance company assigns you a score reflecting your risk. That is why the premium you actually pay may not be the same as the quote the agent gives you when you apply for coverage. If the company finds that you are at a higher risk level than originally assumed, your premium will almost certainly be higher than your quote.

There are ways to lower your risk. Take good care of yourself. Maintain a healthy weight. Eat well-balanced meals and exercise on a regular basis. If you smoke, stop. Drive safely, and don’t get tickets. Auto crashes will also raise your life insurance premiums, not just your auto insurance premiums. In general, be smart. Don’t take unnecessary risks

The insurance provider will also take into consideration things that you cannot control, like your age and gender, when determining your life insurance premiums. That is why it is important to improve your health and lower your health related risks. Risk assessment policies vary, depending on the life insurance provider. That is why it is a good idea to do research, ask questions and get several quotes before deciding on a life insurance policy.

Insurance provides us with protection against risk, and owning insurance policies is a normal part of modern life. While insurance has been around for hundreds of years in one form or another, most of the familiar kinds of insurance we have today are actually a newcomer on the historical scene.

Insurance itself can be traced back to the ancient Chinese, around 5000 BC, as a way to protect traders. There are also stories of a more humanistic form of insurance, with neighbors helping neighbors and settlers taking care of each other during difficult periods in history. While that has no monetary value attached to it like our current insurance policies do, we consider that insurance because of the gesture of caring and providing for someone else. What we think of as life insurance didn’t come along until later.

In ancient Rome there were “burial clubs.” Members of these clubs were protected against funeral costs and their survivors were given financial aid. The origins of the burial clubs were religious. The Romans believed that if someone was not given a proper burial, he or she could not find peace in the afterlife. For all but the very rich, burial clubs were essential to finding peace in death, because every proper funeral required a large and often lavish celebration.

Modern life insurance dates back to the late 17th century in England. Life insurance was originally designed to protect traders and merchants. The first insurance providers would meet their customers at coffeehouses and pubs to draw up insurance contracts. These were the common meeting places of that era. This form of life insurance was designed to protect those who brought goods into the community and those who sold them. It was a way to protect and insure commerce.

The first American life insurance company appeared in 1732 in Charleston, South Carolina, but at its inception, the company only offered fire insurance. Life insurance policies were not offered in the Thirteen Colonies until the 1760’s, but providing them quickly became a big business. After the American Revolution, there were issues with life insurance policies for slaves. One New York insurer supposedly issued 485 policies on the lives of slaves just in two years in the decade of the 1840’s. However, the sale of life insurance on the lives of slaves stopped several years before the 1863 Emancipation Proclamation. The insurance companies, in the North, were ordered by their states to search their records to purge any policies that indirectly supported slavery. There is no record of any such policies being found.

Whichever type of life insurance policy you hold today, one thing for certain is that the history of life insurance has been rich and complex. There is at least one constant, however, that has never changed. Life insurance protects our heirs from whatever life sends their way. Ask any questions to a qualified life insurance agent who can help you find the right life insurance protection for your loved ones. A qualified insurance agent will consider the specifics of your situation and help you find exactly the policy you need.