Life assurance provides for survivors

Life assurance is insurance protection purchased in which the insured individual’s death results in payout of benefiting to survivors identified as beneficiaries of the policy. There are several types of life insurance, but the most common is term life insurance or coverage. Term insurance provides for payout of a lump sum upon death of the insured during the specified term of the insurance.

Other types of life assurance include mortgage protection. With this type, the insurer pays of the balance of the covered individual’s mortgage in the event death occurs during the covered period and fits within the stated payment parameters. Although more costly to obtain, there are some insurance policies available to individuals struggling with certain illnesses or health situations.

Terms of coverage, along with premium rates, are an important consideration in selecting the appropriate policy. Insurance specialists are a great resource for life insurance customers. Specialists are familiar with the various types of coverage, unique product features, terms, restrictions, and limitations, and the lowest costs. Along with the policy and payment terms, some insurance protections require up front questionnaires and health checks. These are an attempt by the insurer to determine the risk of providing life insurance based on the likelihood of payout. This health risk assessment has a huge affect on premium costs.

Many brokers and specialists are familiar with low cost policies that provide the necessary benefits for an individual customer’s situation. It might take a customer along time to find a low cost product for an individual that meets the needs they are looking to meet. However, a broker can get information from a survey about the prospect, including key data that affects premium costs, and provided recommended options.

Specialists are also familiar with common discounts for life insurance policies. Age is often a key component in life insurance terms and premiums. Younger covered people usually receive better rates as they are farther away from death, according to life expectancy. Non-smoker discounts are also common with life assurance policies as smoking is widely considered to be life-shortening. Alcohol consumption behavior is also a factor considered as heavy alcohol consumption is a risk factor.

Certain occupations may be targeted for discounts as well. Some jobs are thought to be less dangerous, and less damaging to ones health over time. Occupations that have a high rate of stress and stress related health problems might lead to higher premiums and more restrictive payout terms.

Insurance brokers see themselves as advocates for consumers. Knowledgeable specialists can help customers find plans that provide high quality service and have a reputation for hassle-free payout in the event of death. The purpose of life assurance is to provide financial security to survivors in the event of death. While low cost premiums are important, covered individuals also want to have the right amount of coverage. The longer they have to live, the more money they might want to provide for their family. Heads of households want to be sure to take care of their family’s needs if they are no longer around to provide income and security.

David Thomson is Chief Executive of BestDealInsurance an independent specialist broker dedicated to providing their clients with the best deal on their life insurance, critical illness cover and home and motor insurance.