Life insurance types news

It’s a new year, and a new beginning as people say goodbye to 2014. We hope it was a prosperous and sound year for all.

We’re all well aware of the importance of life insurance policy. We buy them from various reasons, we have a neighbor who passed away in his 30’s and left his family with too many bills to pay, we have purchased a house and need to cover for mortgage, maybe one of our relatives died too soon and no one could care about his children.

According to a study conducted by LIMRA, it has been revealed that six out of ten young adults in America would be unprepared to deal with their financial crisis in case they suffered an accident or an illness. This study has shown that young adults would really suffer a financial devastating impact in case of any unpredictable misfortunes.

The latest survey carried out by life Ant, an organization and website dedicated to affordable life insurance, has made the revelations that mothers aged between eighteen to thirty years are not likely to have a life insurance. Initially people consulted financial advisors before starting families but in these modern times, people are sorting out financial advisors less and less. This is an observation confirmed by New York based financial and advisor Thomas Rockford.

While deciding the premium rate, the insurance companies in the U.S. are now weighing many factors, which the insured are usually unaware of, and which can frustrate them later, when it starts pinching their pockets. It is a smart effort to get acquainted with the factors that affects the premiums.

Recent economic forecasts related to Treasury yields by the end of 2014 are set to be one of the highest in a long time. Speculations are rife that the Federal Reserve is to start bond purchase cutting quite soon. Yields are to increase 3.41% as shown by survey involving different security companies and banks. The Treasury is planning to sell 3-year notes for $30B, $21B involving 10-year old debts, and $13B involving 30-year bonds successively.

According to a recent report published earlier this year, the rate of life insurance ownership has reached its maximum low in the last 50 years. There are 35 million households who don’t posses any form of life insurance, which include even group policies provided by the employer, despite of the fact that death of a primary income earner can be as financially catastrophic as it is sad. As presented in the report, on an average, people misperceives life insurance three times more expensive than it really is.

The insurance industry tends to market life insurance as a single miracle pill to cure all financial woes! While one cannot deny its importance in myriad financial plans, its complete relevancy as a retirement plan is debatable at best.

People opt for life insurance policies for protection of their family in a situation of an untimely death. But as one’s children get self-sufficient to take the responsibility of their parents or one accumulates enough assets to take care of the situation by means of their own resources there is little requirement of paying for life insurance coverage. Moreover, the rate of premium for elder and senior citizens is also pretty high making things more difficult – but still you will find a few reasons that can justify your need of life insurance cover during the retirement life.

When it comes to the existing health plans, employees across America are quite happy with the arrangements. But ask them about the present healthcare solutions and their answer changes completely.