Life Insurance guarantees that in the event of your death, your insurer will pay out a certain amount to your designated beneficiary. For peace of mind and to ensure your loved ones are looked after once you're gone, life insurance is an absolute necessity. InsuranceBusters will assist you in finding the most suitable and affordable cover.

Extra benefits of life insurance:

Pay off debts

Another common use for life insurance is to pay of the debts you leave behind. For example, mortgages, car loans, medical bills and credit card debts are often left behind when someone passes away. These obligations must be paid off from the assets left behind but can deplete the resources your family needs. Life insurance can be used to pay off these debts, leaving your assets in tact for your family.

Providing liquidity

Life insurance provides liquidity to your estate. When you die, you may leave some liquid assets (such as cash, CD's and savings bonds), and some liquid assets (such as real estate, a vehicle and stocks). Your liquid assets may not be enough to pay off all the debts you leave behind, plus all the expenses that arise because of your death (funeral expenses). Your liquid assets may have to be sold in order to meet these obligations when they come due. This may cause a financial loss if the assets must be sold cheaply in order to get the money on time. Life insurance can avoid this situation, because the proceeds are available almost immediately upon your death.

What is level term/mortgage protection?

These are both forms of life insurance and cover a specific period. For example, Level term Insurance is used to cover a specific period and may be used by a person who has paid off a mortgage but still wants to protect his family in case of death.

Mortgage protection covers the period of your mortgage, once the mortgage is paid off, your need to protect it becomes redundant.

Factors influencing life insurance

The following are the factors that influence the assessment of the risk:

• The proposers physical condition
• The proposers medical history
• Family medical history
• Occupation
• Avocations and hazardous sports or pursuits
• Environment
• Moral hazard
• Residence

Risks are assessed on the basis of:

• Mortality in life assurance
• Morbidity in disability insurance

There is a considerable difference between mortality and morbidity from an underwriting angle and factors that may influence the morbidity risk may not necessarily impact on the mortality risk.

An underwriter must make decisions that are profitable to the assurer. All insurance companies require sound underwriting to ensure favorable financial results and competitive rates. The profitability of an assurer is, to a large extent, built into the rate structure established by its actuaries. Although underwriters are not directly involved in establishing an assurer’s premium structure, underwriter’s decisions are very important in producing actual mortality and morbidity results that coincide with the actuaries’ projections.

Protect your family today - hassle-free Life Insurance from InsuranceBusters!