Friday, August 31, 2012

Understand The Suicide Clause In A Life Insurance Policy

A policy holder who feels like he is down in the dumps would be tempted to take his own life only to leave his loved ones a considerable amount of money from a life insurance policy. Suicide of a family member is one of the most disheartening situations any family can encounter. This incident could also complicate the process of claiming the life insurance benefits. But the question whether an insurance company will grant the insurance benefits to the recipients will be hinge on clauses in the policy. There are instances when a policy's suicide clause holds back the redemption of the benefits. Sometimes the policy holder does not easily recognize this clause concerning suicide because some policies use languages like "intentional self-destruction" or "death by one's own hand" to describe the act.


A suicide clause is just one of the clauses or stipulations that you can find most life insurance policies, while the stipulations may also differ to some extent depending on the state or country. Some insurers include a free look provision that offers the policy owner a considerable period of time to review a policy after it was issued to for the buyer to decide whether he wants to purchase the policy. Incontestability clause prevents the policyholder from annulling the policy after it takes in effect for a definite period of time, except if the policyholder cease from paying the premium.


A suicide clause states that policy benefits will not be granted to policyholder's beneficiaries if he ends his own life within a specific term following the inception of the policy. In circumstances a policyholder passes away within that period covered by the suicide clause, the insurer usually investigate the claim strictly to guarantee that the demise of the policy holder was not a case of suicide.


A suicide clause guards an insurer against a circumstance where a policy holder commits suicide with the objective to give his recipients a considerable sum of money from life insurance claims. Considering the fact that contemporary life insurance policies can easily build up a face value of $100,000 or more, the clause can protect the insurer from disbursing such a significant amount of money.

Insurers are not the only one who benefit from suicide clause, even the desperate and emotionally distressed policy holders gains from this clause. For example, if a desperate policy holder learns that their beneficiaries might not get any benefits from their insurance plan if they commit suicide, the person may reconsider his attempt to commit suicide.

Time Frame

A suicide clause usually covers the first two years that the life plan has been in effect. In case the suicide transpired within that period, the insurer will just hand back to the policyholder's recipients any premiums that have been given to that point. If suicide happened subsequent to the clause period, the life insurance company cannot refuse coverage.

Monday, August 13, 2012

Buying Tips For Cheap Life Insurance

One of the highly recommended ways of protecting your family's financial future is by purchasing a life coverage policy. It's sad to say, however, that not all households are properly insured or even insured at all. With the concerning global economic dynamics, many institutions are coming up with ways to better educate families about life insurance policies and their many benefits including reliable financial provision for the future.

For some people, knowing the value of a life coverage plan is not the issue; their struggle mainly is zoned in on the cost of securing one. If a family has very limited financial resources, insurance payments can be a big burden; hence, the focus is always on the present necessities that need to be provided for. This is the working financial mindset that many families have that needs to be transformed because there are cheap life plans policies that even menial workers can apply for and accommodate within their budget.

In choosing the cheap life coverage providers have for you, financial experts have collected some tips so you can avoid being scammed and eventually end up with the best plan that you can easily accommodate into your budget.

1. Conducting thorough research about the life insurance companies that you're considering should be your first step. Gather feedback or testimonials to see if they are as good as they claim. Join a forum where honest sentiments abound or ask family and friends for recommendations.

2. Inquire about the term length because according to experts, "The right term length is key." Take note of the following components that will help you determine the right term length for you:

- Your age

- The age of your beneficiaries (your children and other dependents)

- Your financial responsibilities

- Your budget

Once all these have been properly determined, you'll have an easier time making the lifestyle changes necessary to be able to manage payments in the most efficient manner.

3. Be honest with all the information that you're required to provide; you have to remember that you want the best policy for you and that would be hard to determine if you fail to provide accurate information.

4. Be wary of "extras." This is often called "pressure play" from the insurance company; advisers may "strongly" recommend extra benefits to be included in your insurance program. You don't need to purchase extra "riders"; just know what you need and what you can afford. In addition, they can conduct their research online and find insurance companies that provide cheap life insurance quotes and make their policies more accessible by personalising their service so applicants can have the best, yet most cost-effective policy.

These cheap life insurance policies can provide you with affordable insurance quotes. The providers make sure that they give the very best personalized service so their clients can have an affordable yet effective policy. Acquire for a life insurance today to be able to financially secure yourself, your children and your beneficiaries.