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EVERYTHING YOU NEED TO KNOW ABOUT LIFE INSURANCE @ www.lifeinsurnce-companies.co.

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EVERYTHING YOU NEED TO KNOW ABOUT LIFE INSURANCE

ADVANTAGES & DISADVANTAGES OF LIFE INSURANCE?


WHAT ARE THE ADVANTAGES & DISADVANTAGES OF LIFE INSURANCE? Premiums are general lower than those for permanent insurance, they are allowing you to buy higher levels of coverage at a younger age when the need for protection often is greatest, it is good for covering specific needs that will disappear in time such as car and mortgage. The whole life policy payments are locked in and will be the same from the time you sign the application until the insurer is no longer in force. This insurance builds cash value over time in a tax deferred account. There minimum interest rate is guaranteed and is given by the insurer but the returns can be greater if investments do well. Life insurance companies provide the option to pass equal assets to the children who are not in the family business at the time the family business is passed on. Life Insurance help secure the future of children for college educational purpose. Life insurance is useful in paying estate taxes, along with other estate settlement amounts. Life insurance benefits are available immediately and may be used to help pay expenses such as final illness and funeral costs, eliminating the need to sell estate assets to cover these costs. Life insurance has a great advantage of that the money you put into the insurance will definitely be returned to you, no matter what happens. lets say you decide to cancel your policy, then the cash value of the policy will be returned to you. WHAT ARE THE DISADVANTAGES OF LIFE INSURANCE? The premiums increases as you grow older. The insurance company will terminate coverage at the end of the term or may become too expensive to continue. The policy does not offer cash value or paid up insurance. The insurer's investment choices are not disclosed, this policy does not allow flexibility in its payment amounts and schedules that were agreed upon during the application process. The insurance does not provide you with the permanent life insurance protection. Term life insurance also known as term assurance is a kind of life insurance that provides coverage at a fixed rate of payments for a limited period of time, after that coverage expires the previous rate of premiums is no longer guaranteed and the client must obtain further with different payment conditions.

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EVERYTHING YOU NEED TO KNOW ABOUT LIFE INSURANCE @ www.lifeinsurnce-companies.co.za

DIFFERENT TYPES OF LIFE INSURANCE


Term life Insurance : Term life insurance also known as term assurance is a kind of life insurance that provides coverage at a fixed rate of payments for a limited period of time, after that coverage expires the previous rate of premiums is no longer guaranteed and the client must obtain further with different payment conditions. Permanent Life insurance : This a type of life insurance such as whole life, where the Insurance is for the life of the insured, the bills are paid at the end of the policy, permanent life insurance originally it is offered as a fixed premium fixed return product known as whole life insurance mostly known as cash surrender life insurance. Universal Life insurance : This a kind of life insurance that of a permanent nature based on a cash value., this kind of insurance is established with the insurer where premium payments above the cost of insurance are creditted to the cash value of the policy. Mortgage Life insurance : This a kind of life insurance specifically designed to protect a repayment mortgage ,example the Insurance holder die while the mortgage life insurance is in force the insurance company would pay the out the capital sum that will be just sufficient to repay the outstanding mortgage. Whole Life Insurance : Whole life insurance is also known as whole life assurance this a kind of life insurance that remains in force for the insured life and requires premiums to be paid every year into the policy. Variable Universal Life insurance : This is a kind of life insurance that builds a cash value. The cash value can be invested in a wide variety of separate accounts.The variable life insurance is a kind of permanent life insurance, the death benefit will be paid if the insured dies any time.

DIFFERENT LIFE INSURANCE COMPANIES


1Life Direct : Pays out from R200 000 to R6 million life cover to a beneficiary of your choice in the event of your death. R25000 funeral benefit to be paid out to your beneficiary 48 hours after a valid claim has been submitted. Includes a terminal illness benefit, if you are diagnosed with a terminal illness and your life

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EVERYTHING YOU NEED TO KNOW ABOUT LIFE INSURANCE @ www.lifeinsurnce-companies.co.za expectancy is less than 12 months, your cover amount will be paid out. Your cover amount will not decrease while your policy is active. Covers you for the whole of your life Covers you immediately for accidents and natural death. The suicide will be covered after the first two years

Alexander Forbes Life Ltd : Alexander Forbes is a insurance company that has a range of accident and life insurance solutions to choose from. Alexander Forbes also offers life protection plan for women.

Assupol Life : Assupol life cover will basically include just life insurance, at your option or it can also feature other different programs to give payments in the event of disability. Premiums for this policy is paid monthly by R150, natural the premium increases if you want a larger amount of coverage.

Clientele Life Assurance Co Ltd : Clientele life cover insurance will covers one insured life only, anyone between the ages of 18 and 65. who are permanent residence of South Africa.

Discovery Life Ltd : Discovery life insurance allow you access your life insurance cover in times of need,they also guarantee objective when they assess claims. Discovery offers global protection, they offer whole body system coverage and you can also increase your cover without underwriting.

Hollard Life Assurance : Hollard Insurance cover will include automatic accidental death and disability cover to ensure your family are taken care of in the event of some unfortunate accident. Hollard life insurance offer a secure investment portfolio, managed by investment professionals.

Medscheme Life Assurance Co. Ltd : Medscheme life Insurance offers life insurance solutions to corporate and retail markets.

Metropolitan Life Ltd : Metropolitan Life insurance pays out funeral cover within 48 hours from a receipt of a valid claim, it provides you with funds to pay for the funeral.

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EVERYTHING YOU NEED TO KNOW ABOUT LIFE INSURANCE @ www.lifeinsurnce-companies.co.za Nedgroup Life Assurance Company Limited : Netgroup life is the insurance company that focuses on being a world recognised debt protection and non underwritten coupon assurance provider to the nedbank and old mutual groups

Safrican Insurance Co Ltd : This is a type of insurance company that mainly focuses on affordable funeral insurance.

Sanlam Life Insurance Ltd : Sanlam is a Life insurance company that offers a wide range of financial products including risk cover, investment and savings plans, at this they cover life, trauma, disability, accidents and funerals.

Everything about Life Insurance


Life Insurance is a kind of insurance that gives a contract between an Insurance holder and Insurance company. Life Insurance is whereby the Insurance company pay a designated beneficiary a sum of money upon the death of the Insured person, It will depends on the contract. The policy holder will typical pay a premium, either regularly or as a lump sum. Expenses such as funeral expenses are also included in the premium depending on the policy. When the death arise the insure requires acceptable proof of death before it pays the claim. Usually the proof required is a death certificate, and the claim form completed signed. Life insurance is designed to protect your family against the financial problems that accompany the premature death of a breadwinner. Life insurance covers your funeral,your debts,mortgage,medical bills,car payments, childrens colleges education. Many companies offer insurance for all so even if you are single with no debts, you may also be covered. Why do people take life Insurance? Most people take a life insurance policy for different reasons, the fundamental reason is to ensure that funds are available in the event of the death of someone who has a financial responsibility to someone else., most people take life insurance to ensure that their family is financial secured.Insurance companies tend to pay a lump sum and therefore a calculation will be needed to establish exactly how much life insurance you should have in place. Lets say you are specifically looking for a direct replacement for lost income in the event of a love ones death, a family income benefit plan will be an alternative to normal lump sum based life insurance plan. Monies to be given will usually calculated according to the earners net salary, the number of years it will be needed to maintain the family, as well as any additional expense.

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EVERYTHING YOU NEED TO KNOW ABOUT LIFE INSURANCE @ www.lifeinsurnce-companies.co.za Steps to follow for life Insurance claim

See if you can find the actual life insurance policy Call the life insurance agent or life insurance company on the life insurance policy. Next fill out the life insurance claim forms Send in the life insurance paperwork

What to look for in a Life Insurance policy


1. 2. 3. 4. Policy Benefits pricing and premiums additional Services Customer Support

How Much Life Insurance Do You Need? There are different many types of decision to make, Buying insurance is based on income replacement. First determine your unique income replacement needs as they may vary greatly depending on your age. What is Annuity? Annuity can be greatly describe as a great retirement investment. Annuity have some of the same benefits as other retirement plans, An annuity typical doesnt have contribution limits, income limits, or mandatory withdraws like any other plans. How to buy life insurance

In order to to know how to purchase life insurance you will need to determine what type of life insurance you want. There are different types of life insurance for example Term and whole life insurance. Do research and get quotes for life insurance, the most fastest tool to do research will be internet because it has made it possible to easily get quotes online, Make sure that you also talk to life insurance company. They are there to assist you with answers to question you have about particular policies that you cannot get from online quotes Once you have decided on a type of policy or insurance company you want to go through, you can begin applying for life insurance by completing the application for the life insurance. Make sure that you learn about the premium and coverage before purchasing it. In short most companies of insurance will require you have a medical exam completed before they will issue you a policy. Make sure that you sign the policy and pay the premium.

Types of an Annuity

Fixed annuities Variable annuities

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EVERYTHING YOU NEED TO KNOW ABOUT LIFE INSURANCE @ www.lifeinsurnce-companies.co.za


LIFE INSURANCE COVER AND HIV AIDS

Most of life insurance companies consider HIV-AIDS as a high risk condition and they will refuse to cover for anyone infected with HIV-AIDS. Different insurance companies require a fully medical testing prior to cover being granted, should you test positive for HIV-AIDS most of them will not insure your life. Lets say you test negative the company will still require you to submit yourself for a further testing at the end of the window period to ensure that you really not suffering from HIV-AIDS. Other Insurance companies do not cover singles infected with the virus, but they will cover the virus just like any other ailment if you contract the virus after the window period. Individual are always faced with a policy premium increase where a premium was not agreed upon.

Most of the insurance companies do not cover for an individual who lives with HIV-AIDS, since there are insurance companies that cover with no medical examination it is advisable for the individual who live with the disease to choose this type of policy in companies that will cover them.

LIFE INSURANCE COVER AND HIV AIDS

There are Insurance companies that mainly focus on clients with HIV-AIDS like HIV Insure Life Insurance Company; they are the first product range of its kind to offer this kind of service. they has a unique approach through products that dont look to HIV different as other medical and underwriting conditions., their aim is to provide real solution in the present and future of an ever changing South Africa.

Life Insurance Glossary


Accidental Death Benefit Rider : This a life insurance policy holder providing for payment of an additional cash benefit related to the face amount of the base policy when death occurs by accidental means. Accidental Death Insurance : This is a type of Insurance providing payment if the insured death results from an accident. Agent : An authorized person of an insurance company who sells and services insurance contracts.

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EVERYTHING YOU NEED TO KNOW ABOUT LIFE INSURANCE @ www.lifeinsurnce-companies.co.za Annually Renewable Term : This a form of renewable term insurance that provides coverage for one year and allows the policy owner to renew his or her coverage each year, without evidence of insurability. Also called yearly renewable term. Assignment : It can be classified as the transfer of the ownership rights of a Life Insurance policy from one person to another. Beneficiary: This can be the person designated to receive the death benefit when the insured dies. Binder : A temporary insurance policy that expires at the end of a specific time period or when the permanent policy is written. A binder is given to an applicant for insurance during the time the complete policy paperwork is being completed. Cash Benefits : This is the money that is paid to the insured upon settlement of a covered claim. Often found with Hospital Income Programs, cash benefits are paid directly to the insured rather than the doctor or the hospital directly. Cash Value : The equity amount accumulation in a whole life policy. Claim : This will be notification to an insurance company that payment of an amount is due under the terms of the policy. Conditional Receipt :This is a receipt given to policy owners when they pay a premium at time of application. Such receipts bind the insurance company if the risk is approved as applied for, subject to any other conditions stated on the receipt. Contestable Clause : It can be classified as a provision in an insurance policy setting forth the conditions under which or the period of time during which the insurer may contest or void the policy. After that time has lapsed, normally two years, the policy cannot be contested. Example: Suicide. Contingent Beneficiary :This will be the Person or persons named to receive proceeds in case the original beneficiary is not alive. Also referred to as secondary or tertiary beneficiary. Coverage :Most of the Insurance companies use the term coverage to mean either the Rand amounts of insurance purchased (R100,000 of liability coverage).

Life Insurance Statistics


Following are some interesting facts about life insurance in the lives of South Africans. Life insurance purchases have been declined

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EVERYTHING YOU NEED TO KNOW ABOUT LIFE INSURANCE @ www.lifeinsurnce-companies.co.za


There have been steady annual declines in the sale of life insurance policies for the past 20 years (with a few exceptions). In 2002 new policy sales increased by only 3 percent. In 2004 they increased by only 1 percent. In 2006 there was neither an increase nor a decrease. The face amount of individual life insurance policies has generally increased. In 2006, R255,861 was the average size policy sold.

Many RSA families are not prepared for an untimely death


Fifteen percent of husbands and 28 percent of wives have no life insurance. 6 million households (ten percent of families with children under 18) have no life insurance or term life insurance protection. The percentage of families with dependent children that admit theyll have immediate trouble with everyday living expenses is 22 percent. Another 26 percent say that if a primary wage earner dies theyll only be able to cover expenses for a few months.

Many / Most RSA couples are underinsured


The average amount of life insurance coverage on insured husbands is R235,600. The average amount of life insurance coverage on insured wives is R147,800. Insured husbands in the RSA. carry enough life insurance to replace their income for only 4.2 years, and wives for only 4.9 years. To meet the expert recommendation of having enough life insurance to replace income for a term of 7 to 10 years, the typical married couple would need to double its current coverage. The percentage of married parents that believe their current life insurance protection is inadequate is 56 percent.

LIFE INSURANCE SURRENDER POLICY


Life insurance surrender policy is the sum of money the insurer will pay to the client or annuity holder in the event his or her policy is terminated before its maturity. Savings are the your cash value component of most permanent life insurance policies. Cash value surrender can be seen as the cash amount offered to the policyholder by the issuing life carrier upon cancellation of the contract. In order to get the cash value the policyholder is obliged to surrender the policy received at outset of the contract to the issuing life insurance company as the documentation of rights under contract. In most cases clients are usually agreed for these premature cancellations. How to surrender your policy Call the company

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EVERYTHING YOU NEED TO KNOW ABOUT LIFE INSURANCE @ www.lifeinsurnce-companies.co.za Fill out the forms Speak to the representative Package the policy and forms and mail them Wait for the check

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