individual policy
When you buy an individual policy, you choose the company, the plan, and the benefits and features that are right for you and your family. You may be able to buy the policy from the same agent or company representative who sells property and liability insurance for your home, car or business. And even if you do not qualify for discounts on the purchase of life insurance and other insurance from the same representative, working with one adviser for all your insurance needs you can make your financial life easier.
Individual policies are usually sold through agents or brokers. If you buy a policy through an agent or broker, you will pay a commission, also called "load" that is built into the premium rate. The commission compensates the agent or broker for the last time that advice on how much and what type of life insurance to buy, to facilitate the application process, and for any additional service is needed in coming years to keep the policy up to date (as the change of beneficiary designation, the organization of policy loans or coordinate their financial plans with your attorney and accountant).
There are two ways to buy individual life insurance. In Connecticut, Massachusetts and New York, you can buy from a savings bank. Or you can purchase a policy directly from an insurance company or a fee-only financial advisor what is known as a "no load" or political "low load". Although there is no sales charge on these policies, the company will still have charges incorporated into the premium to cover marketing expenses, costs of processing applications and post services. Finding an insurance company that will sell you a policy without load is not easy; write "no load life insurance" in Internet search engines in many cases will lead to an agent or broker.
Group Policy
You may need life insurance automatically from your employer; many large companies do this. Your employer will also be offered the opportunity to purchase additional life insurance under a group policy. And you may be eligible to purchase a life insurance under a group policy of a union or trade association or other group to which it belongs (as an association of former students of the university or an automobile club)
Compared with the purchase of an insurance policy individual life, there are several advantages of buying a life insurance under a group policy:
- Sometimes buying group can offer a lower rate for a death benefit given either by the employer or other sponsoring group subsidizes the premium or because the rates are weighted averages for people younger than you.
- Virtually no health qualifications for group coverage.
- Premium payment is usually by payroll deduction (for group coverage by the employer) or linked with other payments (such as credit card bills), reducing the possibility of missing a payment.
Then pay the premiums directly to the company and keep the insurance in force. This can be an advantage if you are older, or have experienced deteriorating health, as it gives you the opportunity to qualify for whole life insurance without a medical examination.
Credit Life Insurance
Credit and lending institutions can offer life insurance to pay their outstanding loans in the event of your death. This is usually made available in two forms
As part of the loan at no additional charge. In this case the cost of life insurance is borne by the lender and is included in the rate of interest and other finance charges. If you have this type of credit life insurance, you do not need a separate life insurance to pay that loan if you die.
As an option, for a fee. In this case, usually, you should reject the optional coverage, as long as you have other life insurance (group or individual) that can be designated to repay the loan if you die. If you are under 50 years of age and do not have other insurance that could pay this loan, consider buying an individual life insurance for this purpose as rates will probably be better. At age 50 or older (or younger with health problems), if you have other life insurance for this purpose, it is probably cheaper than individual life insurance, life insurance optional credit.
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