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Replace income for dependents If people depend on your income, life insurance can replace that income for them if you die.
Why should I buy life insurance? 5. Life Insurance Life Insurance Written In Trust Saves Millions
By Catherine Harvey
 Taking out a life insurance policy shows consideration and love to your nearest and dearest. It means you have the peace of mind that comes with knowing that, as much as possible, life for them will go on without added financial burden.
However, many people are making the mistake of not writing these life insurance policies in trust. This means that any life insurance payouts will be added to the inheritance of your family and could take them above the nil rate band for inheritance tax.
If a life insurance policy is written in trust this will enable the sum to be excluded from the overall estate of the policy holder, freeing it from inheritance tax liability. It also has the ability to speed up payouts, whether or not it would be liable for the extortionate tax.
Recent changes in the law mean that assets worth 300,000 pounds for individuals and 600,000 pounds for couples are the limit before any tax liabilities. Any assets over that amount would be subject to inheritance tax at a rate of 40%.
The latest figures to be released show that over the course of one year, 11,000 insurance policies worth a total of 597 pounds million were subject to inheritance tax. Had all these policies been written in trust, you can be quite sure that inheritance tax would not have been applicable on any of them.
Will reading and distribution of assets can be a notoriously lengthy procedure. This can be put a huge financial strain on the family. With life insurance policies that are written in trust would be paid out immediately, making things a whole lot easier.
Not putting life insurance policies in trust is costing customers millions of pounds every year in unnecessary inheritance tax. Apparently, only 10% of people write their life insurance in trust. Even if you already have a life insurance policy in place, it is possible to easily put it in trust.
Whether you purchase your life insurance over the net, over the phone or through a shop, they should all come with the chance of writing in trust. It seems odd that so few people take up this opportunity. Maybe it is a case of not getting the right advice?
Life insurance comparison websites abound but there is concern that they are not serving the customer well. It has been found that many people will take out the cheapest life insurance but this doesn't necessarily mean that is the one that is most suitable to their circumstances.
The British Insurance Brokers Association have called for the Financial Services Authority to overhaul regulations regarding these insurance comparison sites. They believe that when people check out these sites, they barely take notice of the policy details, just the price. They even take this price comparison as 'advice'. This is a good case of cheapest not always meaning best.
Whatever happened to people taking responsibility for themselves? Surely, if they take out a policy without concerning themselves with the details, they are throwing their money away. Many people take out a life insurance policy with their mortgage as is necessary but instead of shopping around will go with the mortgage providers own insurance simply because it is easier.
Take control, by all means shop around to get the best life insurance deal, but don't take one purely on the cost of the policy because it may not help very much right at the time when it is most needed.
Legal expert Catherine Harvey looks at how we can benefit from life insurance policies written in trust. To find out more please visit http://www.theidol.com/ 10 Ways To Get Cheap Life Insurance
By Ian Spellfield
 Your age and health will affect what you pay for your life insurance.
If your lifestyle is too risky, you're in the military or you have unhealthy habits like smoking or drugs.
However, even if you're not the healthiest person out there, there are still ways to save on your life insurance.
1) Don't count on being able to save as much if you are no longer employed. Before you make any big decisions on retiring or becoming unemployed, be sure to check and see if your employer will continue to split life insurance costs with you.
2) Be honest in your responses to questions. If you smoke, you should admit to it rather than trying to hide it. This may cost you at first but will save you money in the long run.
3) Typically, you can pay your life insurance premium once a year, once every half-year, once a quarter, or once a month. Paying quarterly or monthly might seem easier to fit into your budget, but some companies charge high fees for paying premiums frequently. If a company levies high charges for paying more frequently, try budgeting so that you can pay your premium only once or twice a year.
4) If you are in poor health, there are companies that specialize in high-risk applicants, although the premiums for these policies can be expensive and in many cases the face amount is limited. If you are in truly poor health it may be worth considering one of these companies as an alternative and comparing rates.
5) Be careful of "churning." While most life insurance agents are honest, watch out for ones that try to "sell" you too much or get you to sign up for policies you are not comfortable with. Agents only get paid when a sale is made so sometimes they can be overly aggressive.
6) Lose weight! Being overweight costs more than most can imagine - overweight people spend more on life insurance because increases in weight are related to increases in diseases and bad health.
7) Keep your plan flexible! Special clauses known as riders can always be added to your policy. Two common clauses available with term insurance, the renewable and convertible clauses, are especially good to get for those seeking cheap life insurance.
8) All policies are not the same. Some provide lifetime coverage, while others provide coverage for a fixed number of years. Some build up cash values and others do not. Some policies can still offer benefits while you're living. Your choice should be based on your needs and what you can afford, so that you get truly affordable life insurance.
9) Consider low load policies. High immediate cash surrender values are carried as an asset on the corporate books so no assets leave the corporation, reducing your risk. Some life insurance providers also use low load policies to fund employee benefits using corporate dollars.
10) There are often hidden costs in life insurance policies, such as fees and large commissions, that you may not find out about until after you purchase the policy. I recommend hiring a no-fee life insurance advisor to research all this for you and provide an objective analysis.
Ian Spellfield advises people on how to get afforable life insurance and how to purchase cheap life insurance. A Guide To Life Insurance Policies. Will You Choose The Right One?
By Jimmy Chuang
 Life Insurance. What does this mean to you?
For some it means security, knowing that their family or business is safe should they unexpectedly pass away. For others it conjures up images of pushy salesmen and confusion about what they are buying.
By learning about the different life insurance policies available you can make an informed decision that will give you peace of mind and satisfaction with your responsible decision.
There are three main types of policies. Here is a brief explanation of what they mean:
Whole Life
Whole life insurance is a permanent insurance. This means that the policy stays in effect for your 'whole life' as long as premiums (payments) are up to date.
The cost of whole life insurance premiums will usually be more than the cost of an equivalent amount of term insurance because the cost is averaged. While the cost of term insurance goes up with each renewal, whole life insurance never needs renewing. Instead of paying smaller premiums when you're young and high premiums as you age, whole life premiums stay the same.
In some policies a savings option can be added which can be used to borrow against.
Universal Life
Universal life insurance is another form of permanent insurance. Like whole life the policy is in effect until you die. You never need to renew the policy (regardless of health) and the premiums will never go up.
Universal life also incorporates other financial services including a savings plan that can be made in addition to the policy. Otherwise the policy can be surrendered in exchange for the savings that have accumulated. Policy owners can often choose from many options including adding another person to the policy, managing their own investments or using the savings to cover the costs of premiums.
Universal life insurance is the most expensive option because of the amount of flexibility and options.
Term
Term insurance is the least expensive life insurance policy option. Term insurance is selected for a certain period of time (term) such as; 1 year, 5 years, 10 years or 20 years.
Term insurance is a good choice for young families with dependants and high debts (such as a mortgage) that they will be no longer be responsible for in 15 to 20 years when the policy ends. Term insurance has no cash value, it cannot be borrowed against or cashed in. If the policy ends and the individual wants to renew the policy the cost of premiums will be higher.
Using term insurance to cover the basic financial requirements of an individual while also instituting a separate savings plan may reduce the need for insurance later in life.
Policy Riders
Depending on the needs of an individual there are other options that can be purchased with certain insurance policies.
The additions to the life insurance policy are called 'riders'. This includes adding a spouse, including disability income insurance, Accident and Sickness, Accidental Death and Dismemberment as well as customized choices for taking loans or cash payouts on certain policies.
Talk to an insurance broker who will explain the benefits of each feature and recommends only what best suits your needs. With a bit of understanding you can make the most responsible choice with your money and be confident your family or business is provided for.
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