By learning about the different life insurance policies available you can make an informed decision that will give you peace of mind and satisfaction with your responsible decision.
There are three main types of policies. Here is a brief explanation of what they mean:
Whole Life
Whole life insurance is a permanent insurance. This means that the policy stays in effect for your ?whole life? as long as premiums (payments) are up to date.
The cost of whole life insurance premiums will usually be more than the cost of an equivalent amount of term insurance because the cost is averaged. While the cost of term insurance goes up with each renewal, whole life insurance never needs renewing. Instead of paying smaller premiums when you're young and high premiums as you age, whole life premiums stay the same.
In some policies a savings option can be added which can be used to borrow against.
Universal Life
Universal life insurance is another form of permanent insurance. Like whole life the policy is in effect until you die. You never need to renew the policy (regardless of health) and the premiums will never go up.
Universal life also incorporates other financial services including a savings plan that can be made in addition to the policy. Otherwise the policy can be surrendered in exchange for the savings that have accumulated. Policy owners can often choose from many options including adding another person to the policy, managing their own investments or using the savings to cover the costs of premiums.
Universal life insurance is the most expensive option because of the amount of flexibility and options.
Term
Term insurance is the least expensive life insurance policy option. Term insurance is selected for a certain period of time (term) such as; 1 year, 5 years, 10 years or 20 years.
Term insurance is a good choice for young families with dependants and high debts (such as a mortgage) that they will be no longer be responsible for in 15 to 20 years when the policy ends. Term insurance has no cash value ? it cannot be borrowed against or cashed in. If the policy ends and the individual wants to renew the policy the cost of premiums will be higher.
Using term insurance to cover the basic financial requirements of an individual while also instituting a separate savings plan may reduce the need for insurance later in life.
Policy Riders
Depending on the needs of an individual there are other options that can be purchased with certain insurance policies.
The additions to the life insurance policy are called ?riders?. This includes adding a spouse, including disability income insurance, Accident and Sickness (A&S), Accidental Death and Dismemberment (AD&D) as well as customized choices for taking loans or cash payouts on certain policies.
Talk to an insurance broker who will explain the benefits of each feature and recommends only what best suits your needs. With a bit of understanding you can make the most responsible choice with your money and be confident your family or business is provided for.
Your relations with a life and wellness coach will be a two-way partnership, and you need to keep that in mind if you are to make the most out of this relation. It is not something that you can pay someone to do for you, but your involvement is critical. Nobody can help you unless you are willing to make a few changes yourself, the coach can only go so far as to suggest the changes and be there for you when you need emotional help.
This profession sometimes gets a little flack from society, as there are no educational requirements for one to become a life and wellness coach. The lack of these standards does allow some money grabbers to stake their claim as wellness coaches, and you need to watch out for those who are there just to get your money, but do not have intentions of seeing your life take on better shape.
On the other hand, just because there is a lack of standardized requirement to becoming a wellness coach, it does not mean that you as a client cannot make some rules! Go ahead and make a list of criteria before you commit to parting your money with a coach. The best thing that you could get is an experienced and seasoned coach. Try and get an idea of the number of clients the person has had and for how many years. Better still, you could try and get feedback from one of his past clients to be sure you are in safe hands.
You could also check and see if you can find a specialist in the line of what your current problem is. For example, if you are battling drug abuse, you could well find a coach who specializes in such cases. Some coaches are specialized in training you career wise. They are able to deal with all levels of professionals from rookies to seasoned vets. There are other coaches who specialize in transition coaching.
This means, dealing with change in life. Change is a problem for everybody in his or her life, and some people do not adapt to change as easily as others, and such a coach could do well for their lives. Still other coaches specialize in personal problems of life such as problems with spouses and interpersonal relationship problems at the work place. There are people who have problems organizing themselves and their lives. For such people, a coach who specializes in organizational training is the need of the hour.
Though it is not a requirement as of today, you may want to go for a coach who is educated to help people. For example, you may feel better knowing the coach has a background in psychology, and so is better equipped to handle your life's problems for you.
Both Michael Hehn & Abhishek Agarwal 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.
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