A. Life insurance (life insurance) and health (accident and health insurance).

A. Life insurance (life insurance) and health (accident and health insurance).
Life insurance is aimed at to provide financial support to the family on the death of the insured person. Depending on the contract, the insurance company must be:
provide a certain level of income remaining spouse and / or children and other family members.
to compensate for taxes and other costs associated with the distribution of property among heirs;
pay your past expenses, such as hospital bills and funeral costs;
pay for the education of children;
repay the remaining debt on the purchase of a house or apartment;
ensure that the pension fund;
Life insurance, as you see, can not be reduced to a simple payment of a lump sum to your family in case of death, it also aims to provide a family for quite some time.
Life insurance contract may provide two types of insurance: temporary (term insurance) and permanent (permanent insurance). They both have a large number of options, but the main difference between them lies in the fact that the temporary insurance agreement is concluded for a definite time (year, 5, 10 years, etc.), or until a certain age (eg 70 years) and the family allowance is payable only if death occurred during this period, with constant insurance covered the entire period of his life, and amount of insurance payable upon death, regardless of when it occurred. The contract of temporary insurance can usually be extended beyond its initial term, and it can be replaced by a constant. Please note only that each new extension of the contract will cost more expensive, because the older a person gets, the higher the probability of death.
Choosing the most suitable type of life insurance should be borne in mind also that, for young people annual payments to insurance companies lower in the choice of temporary insurance, the elderly, by contrast, would be cheaper for permanent insurance.
Now let's look at some kinds of temporary coverage, let's see how they differ from each other. They can be divided into three:
Convertibleterm - temporary insurance, which can turn into permanent. Usually, to avoid further medical examination and increase benefits, the transition to a permanent form should be implemented over a period of time before the expiration of the temporary insurance.
Renewableterm - renewable temporary insurance. In this type of insurance after the main contract period may be extended, regardless of health status.
Revertibleterm - another variant of renewable insurance, unlike the previous type is that for the renewal of the insurance contract must meet certain conditions related primarily to health.
At a constant insurance can offer its two main types:
a) Interest Sensitive Whole Life, that is, insurance payments which are not fixed, but depend on several factors.
b) Traditional Whole Life, or traditional insurance, in which the payment and the amount of insurance remain the same the whole period of insurance;
The most popular form of the first type of insurance, universal life insurance (universal life insurance).
When it is selected to a large extent the client will control their finances, within certain limits, can choose the amount of annual payments, even letting some of them in case of need. The company also will distribute the payments into three categories: the first is the accumulation of principal payments in the event of death, the second - in a special account at the bank, which bear interest, and the third - to cover the costs of the company. Thus, the value of annual payments and the amount, which the company must pay in case of death, depend on the bank interest on deposits (interest rates). In any case, the company must pay a minimum percentage of deposits and the minimum amount of principal payments to the heirs after the accident.
All the activities of the company shall be open, it publishes an annual data as to which account and what amounts received during the year.
Regardless of the type of life insurance should not be ignored key recommendations set out below:
A. Each company is required to offer coverage during the testing ("free-look period"), during which you can withdraw from the contract without incurring any loss. By the laws of the State of New York, this period can not be less than 10 and more than 30 days (in case of signing the contract in the mail, without an agent, this period should be 30 days).
Two. When signing the contract, be sure that the oral promise of an insurance agent in line with what is written in the contract. Particular care is necessary to study the contract if the proposed conditions appear favorable implausible (too-good-to-be-true - too good to be true).
Three. It is always best to deal with a company that is licensed in the state.Otherwise, it may be difficult to resolve disputes when they arise.
4. The possibility of group insurance (group life insurance). The price of this insurance is usually lower, especially if the contract is the employer for all employees of the company or organization.
Five. A waiver of any of the insurance contract and its replacement by another (replacement) more often than not bring any benefits. It is advisable to try to avoid it, and in any case carefully and think through the details of such a move before committing to it.
6. Keep an insurance contract should be in a safe place. If the client or family after death lost it, it should be to make a written request to the American Council of Life Insurance (American Council of Life Insurance)
7. Try to avoid frequent payments. One annual payment is always less than twelve monthly.
Eight. Except for one person to whom payment must be made in case of death (beneficiary), the contract must stipulate his understudy (contingent, or secodary beneficiary), who should get the money in case of sudden death first.
9. The main beneficiary of the sum insured (beneficiary) must inform the insurance company your address and to notify it of all its changes. If he does so, then after three years of his entire share of the state authorities to depart, and while he has the right to say later about their rights during this period, he will not be charged interest.
10. No need to hire a lawyer as soon as there are tensions with the company.With most of these problems can be handled yourself.