Many people ignore insurance. These people are not familiar with the different benefits of a life insurance. Many people think that paying towards insurance premium is a waste. But, in the world of personal finance, insurance has a big role to play. This is the time to discuss the facilities in Arkansas about the life insurance availability and its benefits.
Importance of Life Insurance:
As regards to personal finance, people will usually think of saving money, budgeting money and even how to spend money. At the same time we should think of emergency funds and insurance. Life insurance is very important as it provides financial security to the family of the breadwinner even after the death of the head of family. In any case, you should not ignore life insurance. There is no need for a hurried decision and you can carefully decide on the investment plan in life insurance and it is the foremost point that you should plan to protect your income first.
Life Insurance in Arkansas:
You must know that not all insurance companies are available in every State. Arkansas life insurance is being offered by many leading insurance companies of the State and some of them are as given below.
- American General Life Insurance Company
- Banner Life Insurance Company
- Fidelity Life Association
- Mass Mutual
- John Hancock Life Insurance Company
- Lincoln National Life Insurance Company
- MetLife Life Insurance Company
- Transamerica Life Insurance Company
- North American Company for Life and Health Insurance Company and much more.
There are State Guaranee Associations to protect the interests of the resident policyholders as well as the beneficiaries in case the insurance company declares insolvency. If your insurance goes out of business, then these associations will take necessary steps to continue your insurance coverage and paying claims subject to the defined limits.
You can get life insurance quotes from all the above mentioned companies and other companies online. This will give you an opportunity to compare the quotes of different companies and choose the best one that provides necessary coverage at affordable life insurance premiums. Life insurance providers in Arkansas offer online facilities so that you can get the quotes, compare them and buy life insurance online.
Types of Life Insurance:
There are two basic types of life insurance and they are term life insurance and permanent life insurance.
Term Life Insurance:
Term life insurance is designed to cater the insurance needs of the people only for a specific period of time. When you buy this policy you should also set an amount of coverage. The period of time can be anything between one year and 30 years. Normally term insurance is bought for to stay for 20 years. If you, as an insured, dies in the middle of the term, the insurance company will pay the face value of the policy to your family members or to the designated nominee. Term life insurance is less expensive when compared to a permanent life insurance policy. At one stage, if you feel, you can convert the term insurance to permanent life insurance policy.
Permanent Life Insurance Policy:
A permanent life insurance policy will be in force as long as you live, provided you continue to pay the premium payments. This policy includes whole life insurance, universal life insurance and variable life insurance. Like term life insurance permanent life insurance also pays the death benefits, but at the same time it can accumulate cash value. This cash value can be borrowed as and when the policyholder need the same for any purpose.
Factors that decide the Life Insurance Premium Rates:
Your age is one of the major factors that affects the premium rates. If you buy the policy at a young age, you can get lower premiums. If you buy a term life insurance policy at the age of 30 and select the period of term as say 30, then you will get the benefits at the age of 60. As life expectancy level of Arizona is higher than 70, you can expect to live till 60 years of age and enjoy the benefits. Even if you die unexpectedly in the middle of the policy, your family members will be paid the face value of your policy.
If someone has a bad driving record and has a record of series of traffic violations, then the companies will fix the insurance premiums on the higher side.
As far as the gender is concerned, women live longer than men and therefore, women may pay less life insurance premiums than men.
If you are diagnosed with serious illness during the medical exam or if your family has a history of such serious illness, your insurance premium may go high. In case of certain serious illness such as heart disease or some kinds of cancer, the insurers will surely charge higher rates of life insurance premiums. Sometimes, your pre existing health condition may make you ineligible and therefore, it is advisable to buy a life insurance at the young age.
Apart from the above, there are some more factors that will have influence over the cost of premiums and they may include lifestyle and hobbies, marital status, occupation, tobacco use, frequent travels and even obesity.
Some of the Arkansas life insurance companies are permitted to sell life insurance no medical exam for the benefit of those who do not come forward to undergo medical exam in the midst of their busy schedules. You can get the life insurance policy quotes online and buy this type of insurance online.
Employers are not required to offer life insurance for their employees in Arkansas. But, life insurance employee benefit is possible if an employer opt for group insurance to his or her employees. Generally employers are not required to pay for the cost of group insurance. But, if the employer come forward to pay the entire cost, then all employees are eligible for the benefits except those who decline in writing. As far the question of who benefits from life insurance, the person nominated by the insured is eligible to get the benefits.
Conclusion: You may be young and energetic now. As you grow older, some of the health problems will embrace you and now you will begin to think of your family future. Better to buy a life insurance at the young age and form a strong financial foundation for your beloved ones.