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[W735]Whole Life Insurance Explained

by Ken Charnly, Ken

Whole life insurance, also known as "cash-value" insurance is a basic and consistent type of permanent life insurance which remains in effect your entire life at a level premium. This life insurance is a good choice got you if you do not expect your life insurance needs to diminish over time. A portion of your premium goes into a reserve fund called 'cash value' that builds up over the years your policy is in affect. Your reserve fund is tax-deferred and you can borrow against it, until you withdraw it.

The premiums must generally remain constant over the life of the policy and must be paid periodically according to the amount indicated in the policy. You may also have the option of a single premium ----- paying all of the premiums at once with a single lump sum. Your cash values will grow to equal the amount of the death benefit when you turn to age 100.

Although, whole life insurance is very expensive, and if you're on a limited budget, you may not be able to afford all the insurance coverage you actually need. But the plus point is that the death benefit is guaranteed as long as premiums are met. Also death benefit will never decrease if you don't borrow against it.

Whole life insurance policy's returns will fluctuate with the markets and will usually follow returns available from other investments like equity mutual funds. However, if you decide to quit your policy, your cash value can be paid in cash or paid-up insurance.

Whole life insurance is most suitable for you, if you want to:
?use it as a tax and estate planning vehicle,
?accumulate cash value for a child's education or retirement,
?pay final expenses,
?provide money for a favorite charity,
?fund a business buy/sell agreement,
?provide key person protection.

Before buying the whole life insurance, you need to think carefully about choosing your level of coverage. Too often people make the mistake of insufficiently covering or even worse, financially overextending themselves. This would be a tragic error with whole life insurance policy because defaulting on premium payments can mean policy cancellation and the loss of your entire investment. So be careful and make sure you:

?pick a life insurance policy that has a guaranteed cash value starting at the very first year,
?choose the one with the highest cash value in the very first year,
?consider "participating" insurance policies which can pay dividends, increasing your policy's value by boosting both the total cash value and the death benefits,
?beware of any insurance policy that levies "surrender charges" when you cancel.
?if you ever need to stop paying premiums, your policy lets you use the accumulated cash value of the life insurance policy to pay the premiums, thus keeping your coverage current.

Sports often invite accidents, and insurance cover is vital to protect both those participating in sports and those who are either teaching or organizing competitions and events. No matter what the sport, it's important to carry enough insurance to cover injuries to players, volunteers and spectators.

Who needs sports insurance?

Everyone involved in organized sports needs sports insurance. This includes players, trainers, coaches, associations, clubs, professional organizations, directors and officers. Even managers and agents that make a living working for professional sports players need coverage to protect their livelihood.

What typically does sports insurance cover?

There are four primary types of sports insurance:
"Accident insurance covers amateur players and professional athletes, usually including medical expenses from ambulance to emergency care to rehabilitation. Depending on the insurer, there may also be coverage for loss of income and career ending injuries for professionals.
"Liability insurance covers players and spectators when organization or club members are negligent and people or property are injured or damaged as a result. It can also cover the organizers and directors of sports organizations in the event of claims other than medical, including errors that break government regulations. Professional indemnity can protect coaches, instructors and other officials involved with sports.
"Property insurance covers the property owned by the club, association or organization, whether amateur or professional.
"Contingency insurance covers the events held by clubs, associations or other organizations, including cancellation or postponement due to adverse weather or other situations beyond normal control.

What typically does sports insurance not cover?

Sports insurance typically covers a specific sport, so if your group or organization is insured for one sport and holds an event for a different sport, the event and players will not be covered. Also, insurers tend to sell the different types of sports insurance separately. Even if you buy a sports insurance package, make sure you know what is included. Your group might find the package includes liability and accident insurance but no property insurance, for example.
Additional insurance products that policy holders might need in this area
It may be tempting to choose only accident and liability insurance, but the first time your organization loses thousands of dollars due to weather cancelling an event, you'll wish you had a contingency policy. Look carefully at all the options available to protect your group. Professional and other organizations owning a stadium or other property should strongly consider property insurance.
Also, if the organization is only carrying very basic accident or liability insurance, it's important to recommend to players that they carry their own sports or at least health insurance, to make sure all the care they may need after an injury is provided.
Additional coverage for a sports insurance policy
If your group is holding large events, it would be wise to buy increased limits on your liability cover. If more than one or two people are injured during your event, the expenses can easily climb past the limits on your policy and cost more than your organization can afford.

Also, if your group is offering an expensive prize for contests such as half-court shots in basketball or a golf hole-in-one, a prize indemnity clause in your contingency insurance will pay the prize for you.
What will sports insurance typically cost?
The cost for sports insurance depends on a wide range of factors: the typical risk involved in the specific sport, the size of the events involved, the types of insurance purchased, etc. If your club or organization is a small local one, check with the parent organization for your state, region, or the country to see if insurance is offered through them. This is usually much less expensive than taking out policies on your own. If there is no parent organization, look for an association of clubs similar to yours that might band together for insurance purposes.

Article Source : Parenting Your Anxious Child

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Both Ken Charnly & M Slater are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Ken Charnly has sinced written about articles on various topics from Software, Mortgage and Credit Cards. Ken Charnley is a personal finance enthusiast with dedicated to quality information on online loans. For all your online loan needs. Ken Charnly's top article generates over 60500 views. to your Favourites.

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