Life Insurance Premiums
Can you guess a woman's age by just looking at her face? Difficult, right? Especially under those layers of pancakes...ok ladies you need not get furious! That was just an example of how one can estimate the premium rates, much in advance. What are those determinants? How to analyse if we are right? Well, you got to trust the company offering you life insurance; they would estimate the rates as per the insurance amount that is to be claimed. Premiums you pay as a fee, if that is what you want to consider the amount to be for the total coverage that is offered at the time of the occurrence of the unforeseen mishap. If you are still wondering about all that you just read then you need not fret, here are few more details...just follow on ahead.
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Premium Payments
The payment of premiums can be done by direct bill payment or then in some cases pre-authorised checking can also be done. There often needs to be a mode of payment like if you want to pay once a year, that is called the annual mode, you pay twice a year in semi-annual mode, when you decide to pay four times a year, it will be called the quarterly mode, and the last mode would be the monthly mode, in which there would be pre-authorised checking. Though, among all the above stated annual payment is considered the least expensive option. In the whole life insurance policy schemes grace period of 31 days is allotted after the expiry of the date of payment.
Return of Premium...
In a return of premium life insurance, you are in a way rewarded for keeping the life insurance policy, by giving you a guaranteed amount of return on the total premium that is cumulative in nature is paid to you on the policy taken during the level term tenure or period, this does not include any extra charges like rider charges or health charges, but if there are any such charges they would be paid at the end of the level term period, as long as the policy remains valid. This return of premium is always considered tax free; the returns are on fully guaranteed premium.
Types of life insurance policies would be Whole Life Insurance, Term Life Insurance, Cash Value Insurance and Universal Life Insurance, the premium decide would be based on the amount you have insure for in the total amount. The annuities are also policies that pay back some amount of money that is pre-decided and after a gap time interval; this can be done after the first payment of premium or then subsequent payment of premiums that follow. The payment would also depend on the last date of the policy cover.