Redundancy Insurance Can Give You A Financial Lifeline

No one likes to think about losing their job, but preparation is the best form of defence in financial matters. This is especially the case if you have monthly mortgage repayments to pay, or have loan repayments or credit card debts. Redundancy insurance could give you a lifeline if you found yourself unemployed.

Jobs are not safe today and sadly you could become a statistic. However, by having a policy to fall back on you could receive a tax-free income that allows you to continue financing your debt repayments. Payment protection can be taken out in the form of mortgage payment protection, loan payment protection or income protection. All these policies cover against being made redundant and for an extra premium you can also include being unable to work due to an accident or illness. You need to consider carefully which type of policy most suits your needs. Once you have read the terms and conditions and have determined the most suitable policy you can compare quotes for the cheapest premiums. 

When looking at cover you need to be aware that all policies have exclusions that can stop you from being eligible to claim. The exclusions can differ slightly from provider to provider but there are some present in all policies. People who are in part time employment, are self-employed, or are suffering from a pre-existing medical condition or who are retired would probably not benefit from holding a policy. 

Just as the policy details vary, so does the cost of payment protection insurance. A policy can be offered at the time of borrowing from the high street lender. However, often this can cost up to five times more than buying cover independently. If you can benefit from taking out a policy then get quotes from specialist providers. The quote a specialist provider gives will be based upon how much you wish to insure each month and your age. Quotes are given immediately and you have all the information needed to make an informed decision there and then. 

If you have mortgage repayments to make then mortgage payment protection can give you peace of mind. It would allow you to receive a tax-free income once you had been out of work for between 30 to 90 days. Cover would then continue, providing you with enough to cover your mortgage repayments and related outgoings such as insurance for between 12 to 24 months. The income could stop you from getting into arrears with your mortgage and losing your home. 

For peace of mind when it comes to loan or credit card repayments then loan payment protection can be taken. This would allow you to continue repaying any credit card repayments or loan repayments each month without the worry of getting into debt. Income protection would protect your income in general and provide you with a percentage of your monthly income. This would allow you to continue living your lifestyle without having to make drastic changes or struggle to find the money each month to pay your outgoings. 

While you might think you would be able to live on the money received from being made redundant, this would soon dwindle away if you had to take care of your mortgage. Some individuals believe the State would step in and help if you lost your income. But to receive support from the State you have to qualify, and even then you receive very little help and usually have to wait for many months before seeing any benefit. 

A specialist provider will always be able to give you the cheapest quotes for redundancy insurance but more importantly they will provide the key facts of the policies they sell so that you can make a suitable choice.

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A Difficult Term Life Insurance Decision

Andy was four years old, but because of his progeria he looked around seventy-eight. It was a little like that Brad Pitt movie. 

Andy's parents, Don and Jane, were a little opportunistic, some might say exploitative. Andy was diagnosed with progeria at three and by the time he was four, the condition was in full swing. The little boy only three feet tall looked around seventy-eight. He was cute as most toddlers go, but not in the traditional sense. His little wispy growth of hair was beyond gray, more a fading white, like old man snow. It was a little like that Brad Pitt movie. Wrinkles lined his face like detour lines, directing the traffic of his experience in the wrong direction. But his curse was not the rare, incurable disease, but was instead Andy's parents. They not only failed to love their son, they weren't above exploiting him for personal gain, if they could find an angle.

Don had once been a carnival barker traveling state to state. "It's too bad this wasn't forty years ago," he told Jane, "We could have sold Andy to a freak show." Andy was out of earshot reading a Bugs Bunny book up in his room when this particularly callous remark was uttered. The boy was perceptive well beyond his years and already learned to read more than cartoonish rabbit stories. Did he know the history of P.T. Barnum? It was within the realm of possibility. 

Jane voiced her own cruel suggestion in a whisper, out of consideration for her son, she said. "We could go on Oprah," she said, "and maybe cash in." 

Finally they learned about term life insurance policies and how some California insurance agents sold it. They picked the California insurance agent straight out of a brand new phone book, Pacific Bell ding-ring-a-ling. The next day they were at the agent's door, little Andy in tow. He was quite inured to being paraded in front of strangers. For him it was normal. He knew that his parents didn't love him. Kids can sense such things. He was a quiet child though, and extremely polite. 

At first the agent was polite, not realizing the parents' intentions. "How can I help you?" he asked, naïve to this particular nuance of greed. His Thousand Oaks office brought in a motley crew of potential customers, though few of this ilk. The California insurance agent sized up the couple quickly; but the child, why was he so old? He vaguely guessed the illness he had; feeling a wave of compassion, but the name … it didn't come to mind. The little boy smiled, melting the agent's heart. 

"We want a term life insurance policy on our son," Don said nonchalantly, as if he were merely sneezing. It was at that moment when the agent understood the enormity of it all. 

"Get out," he said, "Get out of my office." He felt like calling a social worker, or maybe a cop. But the boy emphasized to the agent; that marvelous little boy, "Don't worry, sir," he said in his little pipsqueak voice, "I'm like that movie."

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Where Can I Buy Travel Insurance?

So you have decided to plan a holiday and you are all excited about your coming holiday away from everything. Of course before you go you definitely need to make sure that you purchase some good travel insurance to keep you covered. The big question may be, where can I buy travel insurance? Well, there are actually a couple different options that are available. Here is a look at the options you have when you need to know where you can purchase quality travel insurance to keep you protected on your holiday.

Purchase from a Travel Agent 

One place where you can purchase your travel insurance is through a travel agent. More than likely you have some travel agents in your area and most will be able to offer you the travel insurance that you need. Just make sure that the agent is licensed to actually sell this type of insurance. It is also a good idea to make sure that they are informed about your destination and what you will need from this type of insurance on your trip. Usually travel agents deal with a couple of different companies so you should have several choices available to you. Ask for their recommendation if you decide to purchase your travel insurance through a travel agent. 

Purchase from the Supplier 

Another place that you can purchase the travel insurance that you need is through the supplier of your holiday. If you are going on a tour or a cruise, often the operator for the tour or the line offering the cruise will offer the option to purchase travel insurance. If you decide to go this route you need to understand that plans offered by travel suppliers usually don't offer as much and they are probably self insured. So, if you have a large claim, it could be a bit shaky for you. It is not always the best idea to purchase this type of insurance from a travel supplier if you want to make sure that you have the best travel coverage. 

Purchase Online 

Last of all, you can also purchase travel insurance online, which is actually probably your best option. Just like other types of insurance, it is really easy to get this type of insurance on the web. There are several different companies out there that provide this type of cover to those going on a holiday. You can check with travel sites on the web or you can look directly at insurance sites to see what is available. 

Often you can even find comparison sites for travel insurance that will allow you to compare quotes from several companies, helping you to find the best cover and the best possible deal. While purchasing online is a top option, you should make sure that you carefully read the fine print so you know what will be covered before you take out an insurance policy on the web. This way you make sure to get the best protection you need for your holiday. 

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Who On Earth Needs Life Insurance On Their Children?

Many people have asked me lately about life insurance for their children or grandchildren.

Let me PREFACE this message by stating that kids DON'T NEED life insurance SINCE nobody is depending upon their income to make ends meet, unless perhaps they are a child TV or movie star. And this is certainly not a subject to dwell on...

But here are a couple of reasons why many parents like to have life insurance on their children that may be worth considering.

I'll also give you some general QUOTES HERE on various children's policies and different ideas to consider.

One reason some parents are interested in insuring the lives of their children is to protect against the HIGH cost of final expenses. Many couples, especially those just starting out, could not afford to pay these costs from savings.

But more importantly, most parents couldn't afford to take the weeks off from work for a natural grieving period. Insurance could allow time for this from a financial perspective. As a parent myself, I couldn't imagine going right back to work, but without life insurance proceeds, one may have to.

Another reason many parents and especially grandparents insure children, is to guarantee at least some future insurability if there is ever an adverse change of health.

Since life insurance on children isn't exactly necessary, you have to admit it is PRICED right. Here are a few painless ways to handle it.

One plan is available for children ages 1 month through 20 years old. It is a fixed $20,000 death benefit (no more or less).

The cost for a policy like this might be just $72 per year per child (or $6/month) and covers them through no older than age 25.

IF DESIRED, the policy can be continued for the rest of the child's life at a cost of $232/year ($21/month) and the policy will begin to accumulate cash value.

Another idea: there are some term insurance policies that a parent can buy on themselves ALONG with a RIDER which can insure ALL children in the household (15 days to age 19).

A "rider" is just an optional add-on to a policy. Most life insurance policies have at least one or more riders that are available that make the life insurance policy better in some way.

Once bought, the kid's rider (coverage) will terminate at age 25 or date of marriage -- whichever occurs first. So the children would be covered through that time.

The price of this rider for ALL kids COMBINED (again as part of a parents policy) costs about $6 per year for each $1,000 of coverage. For example, if you wanted $10,000 on each of your kids and you had two children, the total cost would be $60 per year (10 times $6). It would cost exactly the same if you had six children.

The parent must buy a policy on themselves covering as little as $5,000 with a whole life policy, or $100,000 on a term policy, in order to get the kid's rider. Each insurance company may have a similar option -- or may not.

The children's rider cost (above) is simply added to the parent's policy.

A third alternative is just buying a permanent (cash value) life policy on the child. Policies can be issued from age 1 month through 25 for as little as $5,000 coverage up to $100,000.

For example, a $50,000 policy on 10 year old might cost $279/ year to guarantee that death benefit to age 100 and build an equal cash value at that time.

However, one could also "turbo-charge" that idea.

When properly set up, a cash value insurance policy could act as a "bank" for the child as they grow up.

When structured to build cash value, instead of providing a death benefit, a properly designed life insurance policy can be a great place for tax-free savings.

The growing cash inside of the policy could be "borrowed" to pay for college, provide a down payment for a first home. In effect the child would be "borrowing" from themselves.

Or the right policy design could even give the child a source of tax-free retirement income. That's right. Think of it as a ROTH IRA on steroids.

But that is a topic for another article.

By the way, all of the quotes above are from A+ carriers (rated by AM Best where A++ is the only higher rating attainable) and are only included to serve as a guideline. Life insurance quotes are based on many factors, so help from a professional independent agent is important.

So in summation, I hope that the idea of insuring a child's life is no longer repulsive. There ARE valid reasons to do so. although it would hardly be a financial planning priority.

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