Term vs. Whole Life Insurance - Which Is Best For You?
If you are looking into purchasing life insurance, you have probably heard about both term life insurance and whole life insurance. Before you decide on one or the other based on what you have heard or what your insurance agent tells you, you need to understand the meanings of ?term? and ?whole,? and familiarize yourself pros and cons of each one (and how these pros and cons will affect you). First, we have term life insurance. It covers its policyholders for a certain amount of time, and that time can be up to 30 years. It costs much less than whole life insurance and policyholders can be covered by level-term premiums and annual renewable premiums. With level-term premiums, the premiums stay the same throughout the duration of the policy, whereas with annual renewable premiums, the premiums increase as the policyholder ages. Next, we have whole life insurance, which combines term life insurance with an investment component. There are two elements involved with whole life insurance?the mortality charge, which pays for the insurance coverage, and the investment component, which earns interest and claims to act as a savings mechanism. However, as the policyholder ages, the mortality charge increases and the investment component decreases. Plus, the cash surrender value (the amount you would get back if you cashed in your policy) is not always what it appears to be. It fluctuates with markets, making its relation to reality a difficult one. In the end, if you are on a budget and in search of a good, affordable life insurance policy, term life insurance is probably the best option for you. It is affordable and does not include more coverage that what you actually need. However, if you are wealthy enough to purchase whole life insurance, it can act as an estate-planning vehicle, applying the proceeds to your estate taxes rather than leaving your family to fight in out with the government. Another problem is that whole life is extremely expensive, and if you’re on a limited budget, you may not be able to afford all the insurance coverage you actually need. Wealthy people sometimes use whole life policies as an estate-planning vehicle. They can set up an insurance trust, which applies the proceeds of the policy to their estate taxes when they die. That can save their heirs the considerable expense of settling the estate with Uncle Sam. <a href="http://www.ezquoteguide.com/">term life insurance</a> - <a href="http://www.ezquoteguide.com/home/">homeowners insurance</a> - <a href="http://www.ezquoteguide.com/health/">medical insurance</a>
Source: www.ArticlePros.com

Insurance - All The Basics
What is insurance? Insurance is a means of providing protection against financial loss in a great variety of situations. It is a contract in which one party agrees to pay for another party?s financial loss resulting from a specified event. Insurance works on the principal of sharing losses. If you wish to be insured, against any type of loss, agree to make regular payments, called premiums, to an insurance company. In return, the company gives you a contract, the insurance policy. The company promises to pay a certain sum of money for the type of loss stated in the policy. History Insurance is thousands of years old. The Code of Hammurabi, a collection of Babylonian laws of 1700BC, is believed to be the first form of credit insurance. A borrower did not have to repay a loan if personal misfortune made it impossible to do so. Insurance as we know it today can be traced to the Great Fire of London in 1666, which devoured 13,200 houses. In the aftermath of this disaster, Nicholas Barbon opened an office to insure buildings. Types of Insurance Insurance generally covers situations involving pure risk ? that is, situations in which only losses can occur. Such situations include fire, floods and accidents. People also buy insurance to cover unusual types of financial losses like, a dancer might insure her legs against injury. There are mainly three types of insurance policies sold: 1. Life Insurance A life insurance policy provides that the insurance company will pay a certain amount when the person dies. This may be paid in a lump sum or in installments to the beneficiary [people named by the policyholder to receive the death benefit]. Some types of life insurance policies also enable policyholders to save money. Such policies have a cash value. A policyholder may borrow money against the cash value or surrender the policy for its cash value. Annuities These are savings plans sold by insurance companies to provide a fixed and regular retirement income. If the annuitant [owner of the annuity] dies before receiving the guaranteed number of payments, the insurance company must continue the payments to the beneficiary. Dividends Some insurance policies refund part of the premiums in the form of dividends. Such policies are called participating policies. An insurance company pays dividends if the money it collected in premiums exceeds the amount needed to pay benefits and administrative costs. Dividends may also include a share of the profits the company earned on investments made with premium funds. Dividends are most commonly paid on life insurance. 2. Private Health Insurance Health insurance pays all or part of the cost of hospitalization, surgery, laboratory tests, medicines, and other medical care. The rising cost of medical care has increased the need for adequate health insurance. You could suffer a major financial hardship without such coverage, especially in case of a serious illness or accident. Dental insurance is one of the fastest-growing types of health insurance. It helps pay for a wide variety of dental services. 3. Property & Liability Insurance Individuals and businesses buy property and liability insurance to protect their assets against financial loss. Property insurance provides direct compensation if a policyholder?s possessions are damaged, destroyed, or lost as a result of perils. Liability insurance protects individuals and businesses against possible financial losses if their actions result in bodily injury to others or in harm to property owned by others. The main types of individual coverage are: ? Homeowners Insurance This provides protection against losses from damages to an owner?s home and its contents. ? Automobile Insurance This is the most widely purchased and most important kinds of insurance. Drivers are legally responsible for any costs arising from accidents they cause. This insurance protects a policyholder against financial losses from accidents. Financial viability of Insurance Companies Financial stability and strength of the insurance company should be a major consideration when purchasing an insurance contract. An insurance premium paid currently provides coverage for losses that might arise many years in the future. For that reason, the viability of the insurance carrier is very important. In recent years, a number of insurance companies have become insolvent, leaving their policyholders with no coverage (or coverage only from a government-backed insurance pool with less attractive payouts for losses). How Insurance Is Sold Most insurance companies sell policies through agents. Exclusive agents are employees of an insurance company who sell only that company?s policies. Independent agents sell policies for several companies. David Dugan is a contributing author to the insurance information site <a href="http://insurance.divinfo.com/">http://insurance.divinfo.com/</a>, a site that has information on auto, homeowners, life, pet and all kinds of insurance as well as the retirement site <a href="http://retirement.divinfo.com">http://retirement.divinfo.com</a>.
Source: www.ArticlePros.com

How to Find Cheap Car Insurance in Cincinnati Ohio
Finding cheap car insurance online in Cincinnati means that you can find a good deal on car insurance through a companies website online. In today s market, some of the cheapest car insurance quotes can be found online, it just takes a little time to find them. Plus you also have to know how to compare the cheap car insurance quotes in order to really find the bargains. Finding car insurance in Cincinnati can also mean visiting your local car insurance agent if you have the time to travel and visit several agents to find the cheapest car insurance in Cincinnati. By accessing these cheap car insurance websites, you can get detailed information pertaining to the company as well as quotes. Looking for a good company and cheap insurance quote online is beneficial as it saves you both time and money. After obtaining quotes from a number of companies using your home or office PC, you just need to draw comparisons to find the best policy. However, even if you use the internet to find best deal, you will still need to have an idea of what car insurance is all about. Understanding the Basics of Car Insurance: The cheap car insurance policy quote that you just received is basically meant to provide financial support to a car owner in case their car gets damaged in an accident. This financial support is provided by the company, subject to signing of a contract by the vehicle owner and payment of a premium. But there is a lot more to car insurance to consider. What is Covered by Your Car Insurance Policy? An insurance policy can provide coverage to any or all of the following: - # The person who purchases the policy, # The vehicle of the purchaser, # and other people who might be affected by an accident caused by the driver or owner of the vehicle. Based on the wide ranges of coverage given above, there are different types of policies and coverage that is available. Liability car insurance will give you a pre-specified amount in the event of an accident caused due to your negligence or mistake. This amount will help you to pay off your legal liabilities (property loss or bodily injuries caused to other people). Collision car insurance enables you to get your vehicle repaired or replaced on insurance company s expenses. Comprehensive car insurance covers your vehicle against damage by causes other than a collision, such as a fire, theft, vandalism, falling objects, and so on. There are a few other policies that you must get to know about include uninsured/underinsured and GAP . These were the basics of cheap car insurance in Cincinnati. Be sure that you know what you are looking for, and don t be afraid to ask questions about what coverage is best for you and your particular car before you buy cheap car insurance in Cincinnati.For more resources on cheap car insurance, visit <a href="http://www.carinsurancepolicys.com">CarInsurancePolicys.com</a> and learn more ways to save money on your car insurance.
Source: www.ArticlePros.com