Life insurance 101 facts: what every future policy owner should know

While you may understand the importance of life insurance, how much do you actually know about it?

Are you familiar with how it works?

Do you know about the different types?

And most importantly, are you aware of what factors can affect the price of your plan?

Let’s take a moment to discuss all of these factors and more in this life insurance 101.

So How Does Life Insurance Actually Work?

Simply put, life insurance is an agreement between you and your insurance company.

In exchange for the timely payment of your premiums, the company agrees to provide financial benefits to whomever you name as your beneficiary.

After you pass away, your beneficiary will file a claim and present a death certificate to show proof of your death.

In some cases, an agent will help them to complete all of the paperwork.

If the beneficiary is a minor, then their guardian will file for them.

Types of Life Insurance

There are two types: permanent and term.

While term, meaning temporary, is set up to only cover 5 to 30 day periods, permanent will cover the rest of your life–usually to around age 100.

So what’s the biggest difference between the two? Well, term insurance has no value at the very end of the term.

However, permanent insurance builds cash to the point where you can actually borrow against it.

Factors That Affect The Price of Your Plan

There are several things that will help to determine how high your premium is.

For instance, most companies take gender into account, because females tend to have longer life expectancies.

Many consider the state of your health; certain medical conditions could cause your premiums to be higher.

Companies also take your smoking habits into account when determining how much your premium will be.

Choosing the Plan that’s Right for You

There are several things that you can do in order to make the buying process easier.

First, consider your specific needs.

Calculate your current and future living expenses and compare them to your current income.

Take the time to shop around so that you can compare the different rates and policies of companies.

Make sure that you choose a company that has a high rating when it comes to finances.

Finally, you should make sure to thoroughly read your policy.

This is especially the case when it comes to the fine print.

Most states laws will allow you a certain number of days to change the things that you don’t like or to cancel your policy and then receive a full refund.

As you can see, there is a lot to consider when it comes to life insurance.

The key is to do thorough research.

With time and attention to detail, you should be able to find the policy that is perfect for you.

When should you buy temporary auto insurance?

Driving a vehicle from one place to another is not a huge problem if you are driving your own vehicle. However, if you are planning to sit in the driver’s seat of someone else’s vehicle, you should make sure that you are covered with the proper auto insurance coverage. Even if the timeframe is only for a few hours, a few days or a month, there is a plan that can help you to have peace of mind and financial security. In fact, the type of policy that you should inquire about is called short term or temporary auto insurance.

Because not all short term situations are not the same, you should know when should you buy a temporary auto insurance plan. With this in mind, here are 3 of the more common reasons why these plans are a good investment.

Occasional Coverage for a weekend Driver

Sometimes people like to switch out vehicles with a friend or a family member, and they can only be for occasional use on the weekend. In some of these situations, these exchanges can present possible problems. In particular, if the driver of the car is not covered by their own insurance plan. To prevent problems from occurring, you should make sure that you are considering a temporary auto insurance coverage for the weekend driver. These plans are relatively cheap and they also flexible. So, it is important that you and others involved do their research in advance.

Brief Car Ownership

It is not uncommon today for an individual to buy a car as an investment so that they can resell it. Therefore, in these situations, the person that needs the temporary auto insurance plan will fall under the category of brief ownership. In these situations, the new owner of the car may buy this type of insurance for a few days, a week, a month or it may simply be needed until they can sell the vehicle to another buyer.

Occasional Rentals

Another reason for buying temporary auto insurance involves occasional rentals. In these situations, the renter does not own their own vehicle, but they like to rent a vehicle when they need it. So, for the occasional rental, the temporary auto insurance plans are ideal. In particular, if they have someone that they like to rent from on a regular. Whatever the case or the situation, this person will always be covered with a policy that will meet their specific needs.

When should you buy temporary auto insurance, the answers can vary from one person and situation to another. Therefore, it is important that people learn how to do this type of research in advance. Fortunately, there are sites online that explain how temporary auto insurance actually works and when it applies to any given situation. So, it is essential that all drivers find out what they need to make sure that they are complying with the laws of that state.