Types of Life Insurance and How They Work

Life insurance has become increasingly popular, but there are still many individuals that are reluctant when it comes to buying life insurance. Whether you want to ensure that your loved ones don’t encounter any financial difficulties after you are gone, or you want to pay off debts so that you won’t force others to do that for you, life insurance comes in handy. There are two main types of life insurance you can buy and we are going to look at each and see what the pros and cons are so that you can decide on your own what the best is for you. 

1. Term Life Insurance

A term policy offers only life coverage – the moment the insured dies, the company pays the amount of the policy to the rightful beneficiary. You can buy these types of insurances for a period of one year, 5, 10, 15 or even 30. While it is rare to buy life insurance for year, it’s not unheard of. Let’s say you’re starting a new job that requires you to do a lot of traveling, driving your car a lot at night or in cold and icy locations. You could think of buying a 1 year life insurance to make sure your loved ones are taken care of if you were to die in a crash. We suggest you invest in a 20 or 30 year insurance and choose a company that offers good premiums. 

2. Whole Life Insurance

On the other hand, whole life insurance is a combination of term policy and an investment section. This policy builds cash value and the insured can borrow against it. It sounds better, doesn’t it, but wait, there’s a catch. Whole life insurance is much more expensive than term life one, because you’re not only paying for your actual insurance, but also for the investment part. These are being marketed as retirement plans but they’re not very good investments, as plenty other investment plans are much more affordable.

So, now that we’ve seen what each does for you it is easy to make a choice. If we do a quick comparison between the two, term life vs whole life, we can safely say that term life insurance is better. We suggest you do a little research on your own, find a good and reliable company and ask them all the questions you feel need answering. They’ll be more than happy to help and clarify things for you.

Related articles

• Mortgage Life Insurance - Why You Should Have It (50plusfinance.com)
• 5 Facts on Life Insurance for Over 50's (50plusfinance.com)
• Ways to Save on Car Insurance (50plusfinance.com)

Mortgage Life Insurance - Why You Should Have It

mortgage document (Photo credit: TheTruthAbout)

When you sign up for a new mortgage or a refinance one of the things your offered by your mortgage holder is mortgage life insurance. I find most people either sign-up for the product or disregard it entirely. Both of these choices are fine but I believe they really haven't taken the time and thought their decision through. 

If they do take the coverage, they see an additional item on their monthly mortgage statement indicating the purchase but they really don't know what they are getting. It makes most people feel a lot better knowing that in case of their death, the mortgage will be paid off. This gives them piece of mind that their surviving spouse won't have the burden of paying off the mortgage or maybe losing the home because of a lack of funds to make the payment. 

If you want to have mortgage life insurance it is best that know exactly what you are buying. There are many different companies offering many different types of policies it's important you know the specifics and benefits of your policy.

There are a lot of misconceptions when it comes to mortgage life insurance, buying from your mortgage company may work out fine but isn't better to work with a licensed insurance expert to verify information. Most mortgage reps are not licensed and educated in insurance. It's best to check with a licensed insurance expert before you buy.

The basics on Mortgage Insurance:

• There are several different coverage you can apply for including life (that typically pays off the balance of your mortgage if you pass away), disability (that can either pay the balance of your mortgage, or make mortgage payments for a pre-determined amount of time if you become disabled), or critical illness (that can either pay off your mortgage balance or make your payments for you, if you become critically ill).
• Any mortgage insurance that pays off the balance of your mortgage only pays that, the balance of your mortgage. So the coverage that you're provided with is a declining balance (as you pay your mortgage down over time). There is no remainder amount paid directly to you typically.
• Any benefits paid, are paid directly to the lender
• There are several different types of coverage (as with any insurance), that can include lender policies, brokerage policies, private policies. Any coverage has its benefits and drawbacks, so it's important to be informed on what you're signing up for.
• Mortgage insurance is different from term insurance, as it covers your mortgage balance only, compared with term insurance that provides you with a set amount of coverage for a specific term.

One of the benefits of buying through your mortgage company is that there is no physical check up involved. If you went the route of securing term life insurance to do the job, it is a good chance you could be turned down because of poor health. It's something to think about for those over 50 years old.

Related articles

• The Scoop on Buy To Let Mortgages (50plusfinance.com)
• Home Insurance Covers More Than Fires (50plusfinance.com)
• 5 Facts on Life Insurance for Over 50's (50plusfinance.com)

Egypt, An Ideal Place to Retire?

Egypt: Gizeh (Photo credit: Brooklyn Museum)

There are almost six million elderly people living in Egypt, many of them expatriates from the United States, Britain and the rest of Europe, according to the latest government figures. The figure represents almost one in 14 of the population. Three out of every 200 marriages last year and one out of every 14 divorces in Egypt also involved the elderly. 

There are lots of good reasons to move to Egypt either to work there or to retire. Friendly people, low cost of living, wall-to-wall sunshine, history at every turn – the list goes on and on. And, of course, excellent banks to look after the pension and the investments, too. Egypt's banking system is thoroughly modern offering a complete range of financial services. No problem then applying for a loan or a credit card. Why not click here for more information on Egypt credit cards.

You'll also find all the usual credit card promotions and loans at competitively low rates. So it's worth spending a little time checking it all out. Some of the largest multinational banks are to be found in the country, offering the sorts of personal banking experience you'd find back home. Applying for a MasterCard in Egypt, for example, is much the same as applying for one elsewhere, but do shop around for the ubiquitous no fee and other card promotion deals we've all come to love!

Names you've probably heard of are likely to include Barclays, HSBC, Citibank, BNP Paribas. They've all got a long and illustrious association with Egypt. Banque Misr may not be one you're completely familiar with. It's an Egyptian bank of some note which has branches across the major towns and cities. It also has currency exchange and work permit offices for expatriate workers. One of the oldest banks is the National Bank of Egypt (NBE). It's the largest bank, too, accounting for some three out of every four credit cards issued and four out of every 10 debit cards issued in the country. The Bank of Alexandria, which has hundreds of branches, is also one of the major banks operating in Egypt, as is the Commercial International Bank (CIB) which holds the largest market capital of any of the banks.

If you need to, opening a personal bank account shouldn't represent too much of a problem. Fair enough, you'll probably have had to live in the country for at least six months. Anything less and an application will be unlikely to succeed. Naturally, you'll have to prove who you are, which means providing the bank with official documentation

This will undoubtedly include passport, work visa and residence certificate. It will certainly help move the application process along if you also provide a couple of passport-size photographs. Some information about previous banking history – a letter from your previous bank and a couple of recent statements – should also prove useful. The more information you provide the quicker the application process will be completed.

And make sure you go with a bank with a wide network of cash machines. That way you won't be charged for using a machine belonging to a different bank. Be aware, too, the amounts of money you can withdraw from ATMs in general do actually vary, anywhere from EGP 2,000 and EGP 4,000 (about GBP £220 - £440, USD $330 - $660).

Related articles

• Why a Business Credit Card is So Important (50plusfinance.com)
• What Is a Good Credit Card Deal? (50plusfinance.com)
• Credit Cards and Students (whatisa529plan.com)
• Understand Your Credit Cards Before Seeking Debt Help (savealittlemoney.com)

How to Reduce Your Home Insurance Costs

insurance (Photo credit: Alan Cleaver)

When you receive a home insurance renewal reminder from your insurance company, do you ever question it? The likelihood is that you’ll do what most of the population does and just file it away with the other insurance papers. There’s nothing for you to do; the direct debit will keep on being taken and you will remain covered. 

However, if you take the time to look at the reminder, you’ll probably notice that the premium is more than you paid last year, whether or not you’ve made any claims. So, instead of just filing it away, it’s a sensible idea to take the time to get a few different comparison home contents and building insurance quotes to make sure you’re still getting the best deal available.

Although this can be a bit tedious, you may end up saving quite a lot simply by switching insurer. Price comparison websites make the process a lot easier than it used to be as you only need to put in all your details once. If you don’t like doing things online, you can call insurers directly for a house insurance quote – and this is sometimes easier as the person on the end of the phone can clarify any queries you may have.

If you find the quotes are still coming in as high as your current policy, there are ways to reduce the premiums including offering to pay a higher voluntary excess than the standard required excess and reducing the contents cover to the minimum level (provided that it still gives you adequate cover for the contents you have). You can also expect a discount if you have a security alarm fitted, security locks on the windows and doors and smoke detectors fitted in every room.

And remember, if you get a lower quote from another insurance company, you could always try going back to your current insurer and asking if they will match the lower quote to keep you as a customer.

Related articles

• Home Insurance Covers More Than Fires (50plusfinance.com)
• How Is Classic Car Insurance Different from Regular Car Insurance (50plusfinance.com)
• Accident While on Holiday? Tips for Your Insurance Claim (50plusfinance.com)
• 5 Tips to Choosing a Car With Low Cost Insurance (50plusfinance.com)

Get Help to Get out of Debt

Debt Mummy Art (Photo credit: Brad_Chaffee)

Being in debt can be really bad for your mental health. The stress and pressure that it adds to your life can affect your relationship, your sleep and your general well-being. 

Too often, people who are in debt don’t seek out help soon enough, instead they bury their heads in the sand and hope that the problem will somehow go away. Of course, it doesn’t. The problem with debt is that if you do nothing about it, the amount you owe just grows as each missed payment will mean that more interest is added onto the amount that you already need to pay back.

If you are ready to admit that you need help with debts, then there are some different ways to go about finding that help.

First, be honest with your partner. As the old adage goes, a problem shared is a problem halved, and while this might not actually do anything to change the amount of debt you have, it will ease some of the guilt and pressure if you have been trying to hide the debt from your partner. They may also be better at managing the income that you have and help you begin to pay the debt back through careful budgeting.

If this isn’t the case, you can always talk to a friend or relative who is ‘good with money’. They can help you go through the list of your expenses and debts owing, and look at your income and then see the best way to start reducing your living costs and clearing the debt.

Your debt levels may be so significant that self-help is not enough. In this case you can contact one of the many debt management companies that are now in operation. They will help you devise a debt management plan or if necessary, organise a debt consolidation loan – where you borrow a lump sum in order to pay off all the individual creditors who you owe money. This means you will still be in debt, but only to the debt management company and you’ll only need to find one monthly payment. Although this may cost you more overall than paying off the individual debts separately, it will take a lot of the stress and pressure out of the situation as you won’t have different creditors chasing you.

Whatever step you take to start clearing your debts, it’s positive that you are taking the decision to tackle the problem and move forward, and that in itself is very motivational.

Related articles

• Guiding your Recently Graduated Kids through Debt Management (50plusfinance.com)
• How Seniors Can Learn to Cope with Debt (50plusfinance.com)
• How to Reduce Credit Card Debt and Quit Borrowing (savealittlemoney.com)

Accident While on Holiday? Tips for Your Insurance Claim

(Photo credit: Wikipedia)

Most people don’t think of what might happen if they become ill or have an accident while on holiday. Travelers may find that their insurance does not cover them when they travel away from home resulting in their insurance claims being denied. 

No one wants to have an accident while on a holiday, but it does happen. When it does you may not be able to gather information at the scene that will help in getting your insurance claims paid. The most important thing is to get treatment if you are seriously injured and not worry about anything else. 

PAPERWORK 

Get a copy of the accident report filed by the police department and submit it along with your claim, keeping a copy for yourself. Keep copies of everything when submitting a claim for holiday accidents so that you have a back-up if the insurance company says they never received the information. Keep track of any calls you make to the insurance company about the holiday accident claim. Write down the date of the call, the person at the agency that spoke with you and a summary of the phone discussion. If any of the claim is denied and you did exactly as the agent told you to do on the phone, and you can prove you did what you were told. If at all possible, send a photo of the accident with the claim. If the accident was caused by stopping for a cow in the road, take a cell phone photo and send it along with the claim. Also send any written information that was gathered from witnesses and other people that were involved. Never sign anything given to you until you read it through completely. 

EXCEPTIONS 

A holiday claim for an illness occurring in another country, state or province, might not be covered completely. Some providers may not take insurance coverage from someone that comes from another region or country. Even within the United States, a person that has insurance in Pennsylvania might not be totally covered when traveling on holiday to Texas. The providers may be considered “out-of-network” and the policy holder will have to pay more for using them. Contact your insurance company before traveling to find out where you can go to receive service in the vacation region. This will go far in getting claims paid quickly and completely. 

TRAVEL INSURANCE 

Many insurance companies provide temporary travel insurance to those on holiday. This eliminates all worries because the insurance is specific to an area and conditions of the holiday site. It also pays for transportation home if a holiday accident occurs. This is especially important when travelling overseas, but even those traveling within their own country may consider travel insurance. Purchase travel insurance for the activities being done on vacation. If you are injured deep sea diving in the tropics and this was not something covered on the policy, it will be hard to get the claim paid. Having the right type of insurance while traveling is essential to having a wonderful, care-free holiday, and keeping documentation of the accident or illness will go far in making your claim go through much easier. 

David a retired UK teacher advises using irwinmitchell.com for any holiday accident claims or illness that happens whilst traveling abroad.

Related articles

• How to select the best car insurance for luxury car? (50plusfinance.com)
• Adding Your Children Onto Your Insurance Policy: Pros and Cons (50plusfinance.com)
• How Is Classic Car Insurance Different from Regular Car Insurance (50plusfinance.com)
• How to Insure a Leased Vehicle (savealittlemoney.com)