Life Insurance Information

Life Insurance Resource Center

Substantial sums of money are spent each year on life insurance premiums by many consumers with very little idea of what they are getting for their money. Reluctant to probe into the life insurance industry and the mysterious world of death benefits, cash values, standard provisions and riders and the technical jargon of most buyers don’t realize that there are major differences in the types of life insurance they can buy and the various sources for such coverage.
The Life Insurance Resource Center in New York in the US is designed to help consumers make the right choice when purchasing life insurance or annuities. This resource center is an ideal example of a well organized and friendly service that will familiarize the consumer with basic terms, describe the major life insurance policies and annuities that are available, and provide important tips to optimize purchase decisions.

Some of the generalizations that help consumers take the right life insurance purchase decisions are:

What to check before buying insurance

To begin with, the purchaser has to determine the present requirement for life insurance and the amount of money he can afford to spend. Next, he has to consider future needs too, because unlike most other purchases, it’s not possible to buy life insurance whenever in need.
One has to be in pretty good health to purchase the life insurance products that are available in the market.

The Purpose of insurance

The amount of insurance that one buys depends to a large extent on the standard of living that he wishes to assure his dependents. He should consider the value of assets and other sources of income available to his dependents when he passes away along with the likely shortfall. This is where life insurance steps in to bridge the gap between the financial needs of the dependents and the amount available from other sources and what is required. The agent or the financial advisor can help with these calculations and additionally the internet along with books and journals are also helpful.

 

Other important approaches toward obtaining insurance information should preferably consider the following points.

Analysis of the need for life insurance

How the cost of life insurance is determined

Basic types of policies

  • – Permanent
  • – Term
  • – Variable
  • – Other coverages

Optional riders / Supplemental benefits

Annuities

Glossary