By: Shane Flait
You choose an annuity, like any investment, to achieve a goal. Knowing the benefits and disbenefits of an annuity is important to devising your strategy. This article outlines some of each.
Deferred annuity benefits:
A deferred annuity is an investment vehicle for accumulating a lump sum of money. The benefits it offers are:
* A tax-shelter that defers annual taxes on your earnings within your annuity contract. So, you may potentially grow your investment faster than other investments that yearly lose a portion of their earnings to taxes.
* You can contribute any amount you wish to your deferred annuity from any source.
* You can arrange to make your contributions through a flexible payment program.
* You can choose your annuity investment type - i.e. fixed, indexed, or variable - as you wish. Specifically, you can choose a fixed deferred annuity to assure a guaranteed growth rate. Your investment protection comes from the insurance company's financial strength and its state regulations backup insurance.
* You can choose how to convert your lump sum to an income stream (annuitization) or convert to another product or investment. Taxes will be due if you take the money out.
Immediate annuity benefits:
An immediate annuity gives you an income stream. Its benefits are that:
* You can convert a lump sum of money into an income stream for a finite term or for the remainder of your life.
* Your annuitized payments are assured as they come from the insurance company under your annuity contract. The assured payments can be fixed (under a fixed annuity) or be variable (under a variable annuity). Again, the assurance of your payments comes from the financial strength of the insurance company and its state-regulated backups.
* You may use this as retirement income.
* You may assign those payments to someone.
* You can use those assured and ongoing payments to pay some obligation or as premiums for another product such as life insurance.
* Converting a lump sum of money into an income stream may protect your money from Medicaid in some instances since it treats lump sum assets differently from an asset in the form of an income stream.
Each annuity carries specific contract obligations that include fees, surrender and withdrawal terms and conditions. Here are some important issues to be aware of.
Disbenefits of Deferred Annuities
* Deferred annuities have a certain amount of illiquidity. You can't just cash in your funds when you want without incurring fees or penalties.
* All withdrawals from deferred annuities are considered taxable earnings until you've withdrawn all earnings to date.
* You're required to pay a surrender fee of up to 10% over the first perhaps 10 years - the fees decreasing each year. You may be limited to only a 10% withdrawal per year without triggering the surrender fee.
* If you're under 591/2, federal law imposes a 10% tax on whatever you withdraw - in addition to whatever taxable income it triggers.
* Because so many options and guarantees are offered with variable annuities, your investment growth my may suffer from excessive fees.
Disbenefits of Immediate Annuities
* Once an annuity is annuitized - i.e. regular payments begin to you - the company won't generally convert the payments back to a lump sum for you.
* If you no longer need your annuity payments, you may be able to sell them to another party, but at a value that may be significantly less than their present value.
* Fixed annuity payouts for life are constant dollar payouts. Over an extended time such as 20 years, the purchasing power of those payments may fall by as much as 40% if inflation averages about 3%.
Because an annuity, unlike other types of investments, is a contract with an insurance company, it involves insurance-related promises and obligations. These add cost and fees to annuities that other taxable investment types don't have. And it tends to make them considerably more illiquid.
But annuities have unique properties - like a life annuities, and payout properties - that help you achieve goals you can't with other investments. Knowing how to get the benefits of annuities without stumbling over their disbenefits requires careful planning.
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How To Choose A Suitable Life Insurance Policy
By: Ray Anwan
When it comes to choosing life insurance, the myriad of options makes it difficult to know how to customize a policy to meet your specific needs. There is much more to a life insurance policy than simply choosing a term and amount, often buyers are left wondering if they did the right thing. As important as decisions concerning life insurance policies are, they are not easy to make. Carelessness is certainly part of wrong decision making when it comes to choosing of a suitable policy plan in life insurance; people are surprisingly eager to invest money without sheer knowledge of what they are doing.However, even those buyers who try to be diligent lack a decision making framework to be successful. Okay, you've determined that it's appropriate for you to buy a life insurance policy which product should you select. The following are tips to help you make informed decisions when it comes to choosing a life insurance policy.
• Pinpoint and define your purpose for getting the life insurance and then get information on the different product available in the market. Identify the trade-offs associated with each of the alternatives. No product is better than all others in all respects, so trade-offs are usually important to note. It may take considerable effort to uncover the strengths and weaknesses of each options, even then there will still be some iota of doubt. Weigh the trade-offs and choose the best option. A casual approach may suffice though they are sophisticated quantitative techniques to evaluate these measures.
• For a lot of people, the length of time the policy should be for will be the decisive factor. Term insurance seems to be apt for short term needs because the high selling expenses of most cash-value products makes them uneconomical for short holding periods. Provisions that would last into retirement kind of require cash-value products because term insurance is usually a poor value at older ages. If the holding period is not of certainty then term is a safer choice. From an asset-allocation perspective, cash-value products may belong in an optimal portfolio because a lower long-term outlay translates into a higher after tax rate return.
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When it comes to choosing life insurance, the myriad of options makes it difficult to know how to customize a policy to meet your specific needs. There is much more to a life insurance policy than simply choosing a term and amount, often buyers are left wondering if they did the right thing. As important as decisions concerning life insurance policies are, they are not easy to make. Carelessness is certainly part of wrong decision making when it comes to choosing of a suitable policy plan in life insurance; people are surprisingly eager to invest money without sheer knowledge of what they are doing.However, even those buyers who try to be diligent lack a decision making framework to be successful. Okay, you've determined that it's appropriate for you to buy a life insurance policy which product should you select. The following are tips to help you make informed decisions when it comes to choosing a life insurance policy.
• Pinpoint and define your purpose for getting the life insurance and then get information on the different product available in the market. Identify the trade-offs associated with each of the alternatives. No product is better than all others in all respects, so trade-offs are usually important to note. It may take considerable effort to uncover the strengths and weaknesses of each options, even then there will still be some iota of doubt. Weigh the trade-offs and choose the best option. A casual approach may suffice though they are sophisticated quantitative techniques to evaluate these measures.
• For a lot of people, the length of time the policy should be for will be the decisive factor. Term insurance seems to be apt for short term needs because the high selling expenses of most cash-value products makes them uneconomical for short holding periods. Provisions that would last into retirement kind of require cash-value products because term insurance is usually a poor value at older ages. If the holding period is not of certainty then term is a safer choice. From an asset-allocation perspective, cash-value products may belong in an optimal portfolio because a lower long-term outlay translates into a higher after tax rate return.
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Various Benefits of Going for Life Insurance
By: Bob Y Grant
When it comes to financial security, investing on life insurance is one of the most important things to do. Not just security, but there are some other benefits for this. You can get a tax deduction option. So, while investing in the same, you need to completely understand the term and the plan of that particular policy. Keep all your dependents in mind and consider options. Take adequate time in understanding how the policy of life insurance can actually benefit your dependents. If you take a wrong decision, then you may end up with the wrong policy.
Once you plan to go for life insurance policy, you need to gain a better picture of your affordability and future financial obligations. This would help you to take a better decision about the insurance plan that suits your needs. It could be the best financial decision that can ever help you or your family. So the most important factors that you need to consider while going for a life insurance plan are: the term, the requirements, the premium that you need to pay, the benefits and the coverage.
Depending upon your needs and income, you can take a decision about the policy. Not only that you also need to consider various benefits that your dependents enjoy through the plan. For this, you need to analyze various types of life insurance plans, and do a research about it. Apart from that, you should also be confident about paying the premium on time.
We all know the fact that all these insurance companies invest the money in various places to gain the money back. If you can ensure that your money is invested in the government projects, then your money is safe.
Like any other kind of investment, even life insurance has its share of advantages as well as disadvantages. You need to properly understand them. Insurance companies gather funds from the general public and utilize them in bigger economic projects. You can also reduce your tax through these policies. The extent of the reduction depends upon the nature of the policy. But you need to be careful while investing, as some companies force you to put money on policies which are not that beneficial; so be careful. But on the overall, investing on it is considered a wise move and you should know about various benefits of going for life insurance.
So this way, you can pave way to a more secure life for you and your family through the right kind of policy. But make sure that you spend adequate time and effort in finding the best way to go about this. Make sure you gain a better picture by researching a lot on policies of an insurance company. This will definitely help you in taking the right decision. Spending some time on the research will help you in the long run. So make sure that you give financial protection to your family with the help of the right policy. So get your quote today from a couple of insurance companies and plan a bright and secure future.
Read More..
When it comes to financial security, investing on life insurance is one of the most important things to do. Not just security, but there are some other benefits for this. You can get a tax deduction option. So, while investing in the same, you need to completely understand the term and the plan of that particular policy. Keep all your dependents in mind and consider options. Take adequate time in understanding how the policy of life insurance can actually benefit your dependents. If you take a wrong decision, then you may end up with the wrong policy.
Once you plan to go for life insurance policy, you need to gain a better picture of your affordability and future financial obligations. This would help you to take a better decision about the insurance plan that suits your needs. It could be the best financial decision that can ever help you or your family. So the most important factors that you need to consider while going for a life insurance plan are: the term, the requirements, the premium that you need to pay, the benefits and the coverage.
Depending upon your needs and income, you can take a decision about the policy. Not only that you also need to consider various benefits that your dependents enjoy through the plan. For this, you need to analyze various types of life insurance plans, and do a research about it. Apart from that, you should also be confident about paying the premium on time.
We all know the fact that all these insurance companies invest the money in various places to gain the money back. If you can ensure that your money is invested in the government projects, then your money is safe.
Like any other kind of investment, even life insurance has its share of advantages as well as disadvantages. You need to properly understand them. Insurance companies gather funds from the general public and utilize them in bigger economic projects. You can also reduce your tax through these policies. The extent of the reduction depends upon the nature of the policy. But you need to be careful while investing, as some companies force you to put money on policies which are not that beneficial; so be careful. But on the overall, investing on it is considered a wise move and you should know about various benefits of going for life insurance.
So this way, you can pave way to a more secure life for you and your family through the right kind of policy. But make sure that you spend adequate time and effort in finding the best way to go about this. Make sure you gain a better picture by researching a lot on policies of an insurance company. This will definitely help you in taking the right decision. Spending some time on the research will help you in the long run. So make sure that you give financial protection to your family with the help of the right policy. So get your quote today from a couple of insurance companies and plan a bright and secure future.
Read More..
How Do These Life Insurance Companies Manage to Make Any Money?
By: Matt Rubin
At some point in your life you may have wondered how do these Life Insurance Companies make money? I mean, they charge like $25 a month to provide a 30 year old man a 10 year $1,000,000 term life policy and even if less than 1% of the policyholders die that still would be very difficult to pay out those claims. How do they make this work? Do they find ways to wiggle out of paying claims? Many have a suicide clause for the first two years of the policy, but in every other instance they are required to pay death benefits. Even if the insured was driving drunk and caused his/her own death the insurance carrier would have to pay out death benefits.
Even with the best underwriting it is possible for the insurance carrier to pay out death benefits equal to the premiums collected. Companies, therefore, have to rely on big gains from long term investments like commercial real estate, stocks, and bonds to achieve great profitability. Most Life Insurance companies only invest 20% of their holdings in the stock market. Liquidity is an important factor in their portfolio as well because they can never be sure how much of their assets may be needed to fund operational costs and death benefits. High grade corporate bonds and short term commercial real estate loans are an excellent source of income for these Companies. The time value of money is a principle that allows Carriers endless potential to grow their holdings.
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At some point in your life you may have wondered how do these Life Insurance Companies make money? I mean, they charge like $25 a month to provide a 30 year old man a 10 year $1,000,000 term life policy and even if less than 1% of the policyholders die that still would be very difficult to pay out those claims. How do they make this work? Do they find ways to wiggle out of paying claims? Many have a suicide clause for the first two years of the policy, but in every other instance they are required to pay death benefits. Even if the insured was driving drunk and caused his/her own death the insurance carrier would have to pay out death benefits.
Even with the best underwriting it is possible for the insurance carrier to pay out death benefits equal to the premiums collected. Companies, therefore, have to rely on big gains from long term investments like commercial real estate, stocks, and bonds to achieve great profitability. Most Life Insurance companies only invest 20% of their holdings in the stock market. Liquidity is an important factor in their portfolio as well because they can never be sure how much of their assets may be needed to fund operational costs and death benefits. High grade corporate bonds and short term commercial real estate loans are an excellent source of income for these Companies. The time value of money is a principle that allows Carriers endless potential to grow their holdings.
Importance of Writing Your Life Policy in Trust
By: Steve Wentworth
Introduction
Most life insurance companies in the UK offer a free service for placing your life cover into trust. This article explains why you should seriously consider doing so, and why seeking independent advice can ensure you have secured the welfare of your family.
What is a trust?
A trust is a way of making a gift, whilst maintaining some control over who benefits from it and when it becomes available. Rather than the gift being passed directly to the intended beneficiaries, it is transferred to and held by people known as trustees. The gift can be anything from a house to a life insurance policy. For the purpose of this article we will only consider life insurance policies or combined life and critical illness policies.
What is required to form a trust?
There are four key parts to a trust: -
1. Settler - Customer or owner of the life insurance policy.
2. Trust Form - The legal document which formulates the trust.
3. Trustees - Key individuals appointed to by the settler as trustworthy to ensure the settlers wishes are acted upon.
4. Beneficiaries - The individual(s) who will benefit from any proceeds.
A trust form may also require a witness to counter sign each of the sections.
Why use a trust?
If you already have a life insurance policy then you have already considered that your loved ones/dependents are looked after should the worst happen to you. However, it is worth considering following two scenarios: -
Yourself and spouse have a joint life policy protecting your mortgage, the policy will payout proceeds to cover the remaining balance of the mortgage on death of the first life. The proceeds will be paid to the remaining spouse. However should something happen to both lives the proceeds will be paid in accordance with the estate, and a beneficiary may not be willing to settle the mortgage/loan debt, the estate may not have a 'last will and testament' and rules of intestate may apply causing delays, and the policy proceeds are split amongst the relatives of the deceased.
You have taken a level term assurance policy protecting your family of common law husband/wife and two children. You have a 'last will and testament' in place but the policy plus estate are over the inheritance tax threshold. The estate will require an investigation looking at assets, debts, gifts within the last 7 years. Forms will need to be completed including PA1, IHT400 and IHT410 since the estate + policy is over the threshold. The Inheritance tax will bill will need to be paid first as the policy proceeds can not be accessed yet, this could force sale of asset or a loan to be taken. A probate interview and payment of £90 will be required prior to grant of representation issued all before the proceeds paid to spouse as the representative. If there was no 'last will and testament' in place the remaining spouse could not have applied for letters of administration or received any part of the estate including the life policy proceeds and will need to make a claim for a share of the deceased estate under the Inheritance (provision for family and dependents) Act 1975 obviously this will incur legal costs.
There are many more scenarios than the two outlined above and independent advice is recommended to ensure you have your life policy setup correctly.
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Introduction
Most life insurance companies in the UK offer a free service for placing your life cover into trust. This article explains why you should seriously consider doing so, and why seeking independent advice can ensure you have secured the welfare of your family.
What is a trust?
A trust is a way of making a gift, whilst maintaining some control over who benefits from it and when it becomes available. Rather than the gift being passed directly to the intended beneficiaries, it is transferred to and held by people known as trustees. The gift can be anything from a house to a life insurance policy. For the purpose of this article we will only consider life insurance policies or combined life and critical illness policies.
What is required to form a trust?
There are four key parts to a trust: -
1. Settler - Customer or owner of the life insurance policy.
2. Trust Form - The legal document which formulates the trust.
3. Trustees - Key individuals appointed to by the settler as trustworthy to ensure the settlers wishes are acted upon.
4. Beneficiaries - The individual(s) who will benefit from any proceeds.
A trust form may also require a witness to counter sign each of the sections.
Why use a trust?
If you already have a life insurance policy then you have already considered that your loved ones/dependents are looked after should the worst happen to you. However, it is worth considering following two scenarios: -
Yourself and spouse have a joint life policy protecting your mortgage, the policy will payout proceeds to cover the remaining balance of the mortgage on death of the first life. The proceeds will be paid to the remaining spouse. However should something happen to both lives the proceeds will be paid in accordance with the estate, and a beneficiary may not be willing to settle the mortgage/loan debt, the estate may not have a 'last will and testament' and rules of intestate may apply causing delays, and the policy proceeds are split amongst the relatives of the deceased.
You have taken a level term assurance policy protecting your family of common law husband/wife and two children. You have a 'last will and testament' in place but the policy plus estate are over the inheritance tax threshold. The estate will require an investigation looking at assets, debts, gifts within the last 7 years. Forms will need to be completed including PA1, IHT400 and IHT410 since the estate + policy is over the threshold. The Inheritance tax will bill will need to be paid first as the policy proceeds can not be accessed yet, this could force sale of asset or a loan to be taken. A probate interview and payment of £90 will be required prior to grant of representation issued all before the proceeds paid to spouse as the representative. If there was no 'last will and testament' in place the remaining spouse could not have applied for letters of administration or received any part of the estate including the life policy proceeds and will need to make a claim for a share of the deceased estate under the Inheritance (provision for family and dependents) Act 1975 obviously this will incur legal costs.
There are many more scenarios than the two outlined above and independent advice is recommended to ensure you have your life policy setup correctly.
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Are You Trying to Buy Cheap Life Insurance Policies?
By: Trey Augusta
Fees for being able to buy cheap life insurance policies from companies are often changing, and sometimes within a month of each other. Many consumers are currently benefitting from the recession with great and competitive rates on life insurance, which puts you on your way for a great deal and keeps you in a good financial position.
There are now websites available that can show you a comparison between companies and help you to decipher the best rate. These sites are free, and they are also quite easy to use, not to mention very quick for rate comparisons so you can buy cheap life insurance policies, or a policy, whichever you need. The comparisons only take about 20 seconds to process so you can look over and compare rates side by side, both quickly and efficiently. Many times, you can find the same coverage you have from a different company for a much lower price than you are currently paying.
You will never have to speak with a sales representative this way, which is great because they will try to suck you into buying their company's insurance without giving you the chance to compare their rates with other companies. This saves you time, money, and sales pitches, while providing you with much needed information quickly. There are even rates available for cheap life insurance for seniors.
It is extremely easy to save money on insurance now because companies are rivals and trying to offer the lowest rates to get business, which is a plus for the consumer who only wants the best rate for the most coverage. There is no reason to spend hours looking for affordable insurance when a comparison site can help you to save money quickly and easily. Even if you stay with your current company, you may discover that you are eligible rate that you were not informed about, which will help to save you some money while not having to switch to a new company.
Read More..
Fees for being able to buy cheap life insurance policies from companies are often changing, and sometimes within a month of each other. Many consumers are currently benefitting from the recession with great and competitive rates on life insurance, which puts you on your way for a great deal and keeps you in a good financial position.
There are now websites available that can show you a comparison between companies and help you to decipher the best rate. These sites are free, and they are also quite easy to use, not to mention very quick for rate comparisons so you can buy cheap life insurance policies, or a policy, whichever you need. The comparisons only take about 20 seconds to process so you can look over and compare rates side by side, both quickly and efficiently. Many times, you can find the same coverage you have from a different company for a much lower price than you are currently paying.
You will never have to speak with a sales representative this way, which is great because they will try to suck you into buying their company's insurance without giving you the chance to compare their rates with other companies. This saves you time, money, and sales pitches, while providing you with much needed information quickly. There are even rates available for cheap life insurance for seniors.
It is extremely easy to save money on insurance now because companies are rivals and trying to offer the lowest rates to get business, which is a plus for the consumer who only wants the best rate for the most coverage. There is no reason to spend hours looking for affordable insurance when a comparison site can help you to save money quickly and easily. Even if you stay with your current company, you may discover that you are eligible rate that you were not informed about, which will help to save you some money while not having to switch to a new company.
Read More..
Term Life Insurance With No Medical Exam
By: Kum Martin
Life is a very crucial element and everyone wishes to protect it. Sometimes you have to think about securing other's life when you are alive. And for that you can opt for term life insurance which is specially designed for specific terms. After you have bought the policy, you have to pay the desired premium for a fixed term for ten to thirty years.
Generally, other life insurance policies ask you to go through medical exams, but for term life insurance you do not need to go through any medical tests. It saves you from the trouble of blood tests and several such exams.
Term life insurances are specified for terms and are called temporary insurance. They give you coverage for specific term like till your child finishes his education or you retire, etc. You have to pay for the policy for that term and towards the end of it, claim for it. If you do not claim it between the tenure, you will not get any benefits from the policy. Few people like to buy policies which are permanent and not temporary which involves benefits for the lifetime. Both can work great for different kind of people.
Term life insurance is best suited for you, if your family is young and has huge financial obligations. After buying this insurance, you do not have to pay heavy premiums and you can buy several small term policies where you can cover your life and your family's security. It is also a perfect option for you during income losses. Whereas, the permanent policies can prove to be very high on premium cost but is beneficial in the long run.
Read More..
Life is a very crucial element and everyone wishes to protect it. Sometimes you have to think about securing other's life when you are alive. And for that you can opt for term life insurance which is specially designed for specific terms. After you have bought the policy, you have to pay the desired premium for a fixed term for ten to thirty years.
Generally, other life insurance policies ask you to go through medical exams, but for term life insurance you do not need to go through any medical tests. It saves you from the trouble of blood tests and several such exams.
Term life insurances are specified for terms and are called temporary insurance. They give you coverage for specific term like till your child finishes his education or you retire, etc. You have to pay for the policy for that term and towards the end of it, claim for it. If you do not claim it between the tenure, you will not get any benefits from the policy. Few people like to buy policies which are permanent and not temporary which involves benefits for the lifetime. Both can work great for different kind of people.
Term life insurance is best suited for you, if your family is young and has huge financial obligations. After buying this insurance, you do not have to pay heavy premiums and you can buy several small term policies where you can cover your life and your family's security. It is also a perfect option for you during income losses. Whereas, the permanent policies can prove to be very high on premium cost but is beneficial in the long run.
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Tips On Buying Funeral Insurance
By: Dawie Bester
Are you taking time to look into that particular day when you will pass this world yourself? Have you attended a funeral service and think of how you will look in your own coffin? Although this seems like a morbid thought, but come to think of it, sooner or later, we all will die and rot in the same earth.
However, although this is the reality in life, the last thing that we want to happen is having a bad kind of funeral service. As much as possible we want a grand one, one that will not only impress our own corpse but also the people whom we love. However, considering the prices that our goods are having these days, it is not impossible that we will end up in the most affordable coffin. If you do not want this to happen, better think practical. Get funeral insurance!
With funeral insurance, you can already plan ahead on how your funeral service will go. You can choose on what cemetery you will be buried. You can have your choice of the coffin and most of all your family will not be suffering from too much burden. The preneed plan that you have purchased will serve as you showing of love to the ones that you love even in your own death. Unlike in some instances in life insurance where they bought their policies because of the financial benefits, in this case, people buy funeral insurance to prepare for their actual death preparations.
Funeral prearrangement is not new. In fact, this is where life insurances come to evolve. Early people are aware that they will soon die and to make their death even more luxurious. They made plans before they actually are bedridden. They include many things that they think they need in the afterlife. When they die, they will get the worth of their purchase.
However, like any other thing that you have to purchase, you will need a guideline to help you through the ordeal. Here is the list that can help you make you your mind. This is the checklist that you can use to choose a policy plan.
First, here are the things commonly needed in a funeral service. A casket, cremation, embalming, grave liner, grave marker, hearse, flowers and the plot to put on your own history.
Secondly, you should consider the rules concerning your state's preneed policies. This is important to keep with the laws of your place.
Thirdly, before buying the funeral insurance, be sure to discuss your plan to your family and to your family lawyer too to be able to get necessary ideas for a quality buy.
Fourthly, get the background of the company or the insurer that you have dealt or approached with. Make sure that is has the license and has naturally the authority to make such insurance policies.
Lastly, make sure that you have read thoroughly the papers that you are to sign. Like a loan, this is a valuable application that you cannot just let go anytime. Have a friend to help you understand the terms involved and to lend you a hand in shopping for the said needs.YS35UG8AJ8FA
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Are you taking time to look into that particular day when you will pass this world yourself? Have you attended a funeral service and think of how you will look in your own coffin? Although this seems like a morbid thought, but come to think of it, sooner or later, we all will die and rot in the same earth.
However, although this is the reality in life, the last thing that we want to happen is having a bad kind of funeral service. As much as possible we want a grand one, one that will not only impress our own corpse but also the people whom we love. However, considering the prices that our goods are having these days, it is not impossible that we will end up in the most affordable coffin. If you do not want this to happen, better think practical. Get funeral insurance!
With funeral insurance, you can already plan ahead on how your funeral service will go. You can choose on what cemetery you will be buried. You can have your choice of the coffin and most of all your family will not be suffering from too much burden. The preneed plan that you have purchased will serve as you showing of love to the ones that you love even in your own death. Unlike in some instances in life insurance where they bought their policies because of the financial benefits, in this case, people buy funeral insurance to prepare for their actual death preparations.
Funeral prearrangement is not new. In fact, this is where life insurances come to evolve. Early people are aware that they will soon die and to make their death even more luxurious. They made plans before they actually are bedridden. They include many things that they think they need in the afterlife. When they die, they will get the worth of their purchase.
However, like any other thing that you have to purchase, you will need a guideline to help you through the ordeal. Here is the list that can help you make you your mind. This is the checklist that you can use to choose a policy plan.
First, here are the things commonly needed in a funeral service. A casket, cremation, embalming, grave liner, grave marker, hearse, flowers and the plot to put on your own history.
Secondly, you should consider the rules concerning your state's preneed policies. This is important to keep with the laws of your place.
Thirdly, before buying the funeral insurance, be sure to discuss your plan to your family and to your family lawyer too to be able to get necessary ideas for a quality buy.
Fourthly, get the background of the company or the insurer that you have dealt or approached with. Make sure that is has the license and has naturally the authority to make such insurance policies.
Lastly, make sure that you have read thoroughly the papers that you are to sign. Like a loan, this is a valuable application that you cannot just let go anytime. Have a friend to help you understand the terms involved and to lend you a hand in shopping for the said needs.YS35UG8AJ8FA
Where to Go for Guaranteed Acceptance Life Insurance
By: Robin Khan
Guaranteed acceptance life insurance is usually marketed towards the elderly and sick. There is no medical exam to take and therefore, in theory, everybody can qualify. What you need to remember though, is that guaranteed insurance usually has small face values, around $20,000, and are more like funeral policies. In this day and age, it is a good idea to look into getting a policy, even if it is for $20,000. There are many companies out there that offer policies. It can get quite daunting choosing your insurance policy, and is therefore a good idea to go through a broker. There are plenty of brokers that represent the different companies that offer these policies.
If you would like to deal with companies that only deal with guaranteed life insurance in a particular state, there are plenty of options. These brokers will only deal with the companies in specific states and therefore can offer insurance quotes. They even are able to help lower the costs on your premiums if you already have insurance.
They are also committed to offering their customers the best service possible. They have a team of insurance experts that know the ins and outs of the insurance industry. They also offer guaranteed acceptance policies to people who would otherwise not be able to get insurance. People with diabetes, high cholesterol, and high blood pressure are eligible for insurance.
There are also companies out there that will offer you more than just one insurance policy. These companies will be able to provide you with all types of insurance. From guaranteed acceptance to home insurance. They also provide information on the different types of insurance and even the pros and cons of each policy. Guaranteed acceptance life insurance policies can also be found at most insurance companies. Some companies are able offer life insurance for up to $50,000, even if you have a chronic illness or are elderly. They offer a simplistic approach to getting the quote that is right for you. They also offer the latest technology in order to get the most competitive quotes.
When you go for a company that offers guaranteed acceptance insurance, you are guaranteed a policy. This is great for people who do not qualify for other policies, due to illness and age. There are some cons to these policies though, like as the risks are high, your premiums every month will be higher than that of other life insurance policies. There is a waiting, or grace period for at least two years before the policy will pay out. Therefore you cannot take one out knowing you will die in a year.
It is important to look into the different policies available. Before selecting any company, make sure that you carefully read through the offered policies and also that you check out the reputation of the company that you are considering working with.
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Guaranteed acceptance life insurance is usually marketed towards the elderly and sick. There is no medical exam to take and therefore, in theory, everybody can qualify. What you need to remember though, is that guaranteed insurance usually has small face values, around $20,000, and are more like funeral policies. In this day and age, it is a good idea to look into getting a policy, even if it is for $20,000. There are many companies out there that offer policies. It can get quite daunting choosing your insurance policy, and is therefore a good idea to go through a broker. There are plenty of brokers that represent the different companies that offer these policies.
If you would like to deal with companies that only deal with guaranteed life insurance in a particular state, there are plenty of options. These brokers will only deal with the companies in specific states and therefore can offer insurance quotes. They even are able to help lower the costs on your premiums if you already have insurance.
They are also committed to offering their customers the best service possible. They have a team of insurance experts that know the ins and outs of the insurance industry. They also offer guaranteed acceptance policies to people who would otherwise not be able to get insurance. People with diabetes, high cholesterol, and high blood pressure are eligible for insurance.
There are also companies out there that will offer you more than just one insurance policy. These companies will be able to provide you with all types of insurance. From guaranteed acceptance to home insurance. They also provide information on the different types of insurance and even the pros and cons of each policy. Guaranteed acceptance life insurance policies can also be found at most insurance companies. Some companies are able offer life insurance for up to $50,000, even if you have a chronic illness or are elderly. They offer a simplistic approach to getting the quote that is right for you. They also offer the latest technology in order to get the most competitive quotes.
When you go for a company that offers guaranteed acceptance insurance, you are guaranteed a policy. This is great for people who do not qualify for other policies, due to illness and age. There are some cons to these policies though, like as the risks are high, your premiums every month will be higher than that of other life insurance policies. There is a waiting, or grace period for at least two years before the policy will pay out. Therefore you cannot take one out knowing you will die in a year.
It is important to look into the different policies available. Before selecting any company, make sure that you carefully read through the offered policies and also that you check out the reputation of the company that you are considering working with.
Questions to Answer Before Requesting Life Insurance
By: Silva Farrah
Websites that offer the right information and the tools needed to make the life insurance process fast and efficient can be found online with little effort. To save time and money, you need to employ the services of a website that is designed to allow the user to compare a list of multiple insurance as a means of finding the best insurance available. Before you begin your search there are certain things to consider and if you prepare yourself beforehand you will yield better and faster results.
On the other, less recommended, hand, you can take the lazy route, which is to just start searching online with any old search engine and start clicking away aimlessly at any link you come across. When you finally find a website that looks good enough, you may then try to begin requesting a quote.
However, shortly into the questioning you may find that you are unprepared and have no accurate answers to provide. This will obviously slow things down as well as cause you to be frustrated and stressed out. The stress that is derived from searching for life insurance quotes is the main reason this type of task is repeatedly postponed by those who are looking.
Luckily, advertisements involving life insurance can be seen everywhere you look, from magazines and newspapers to the commercials on television. The internet is, by far, the best place to be when looking for life quotes because of the endless possibilities available to anyone who needs them. If you use a search engine to start looking for a free quote, you will find that the amount of results you receive can be considered to be too much. Avoiding that can be as simple as searching for a website that offers comparison of multiples, so that you only have to visit one place to find what you need.
There are a few questions you must have answers to so that the process of finding a company will be quick and accurate. Although plenty of people go without life insurance, one should know that life insurance can take care of the financial problems that arise in the event of someone becoming deceased such as funeral fees and financial debts. Find out which type of coverage you need, such as whole or term life insurance, because each type varies greatly.
Decide how much coverage you need as well as how long you need it. Be prepared to be questioned about tobacco, alcohol and even illegal drug usage during the life insurance quote process. General health questions will also be asked but just because you are not the healthiest does not mean you won't find coverage.
Once you have figured all of that out you can properly begin your search for a insurance. In no time at all, you will have a list of all the available insurance company in your local area of residence as well as web-based companies. This is the best possible way to eliminate any confusion or stress, not to mention you will be certain that you found the insurance quote you were looking for.
Read More..
Websites that offer the right information and the tools needed to make the life insurance process fast and efficient can be found online with little effort. To save time and money, you need to employ the services of a website that is designed to allow the user to compare a list of multiple insurance as a means of finding the best insurance available. Before you begin your search there are certain things to consider and if you prepare yourself beforehand you will yield better and faster results.
On the other, less recommended, hand, you can take the lazy route, which is to just start searching online with any old search engine and start clicking away aimlessly at any link you come across. When you finally find a website that looks good enough, you may then try to begin requesting a quote.
However, shortly into the questioning you may find that you are unprepared and have no accurate answers to provide. This will obviously slow things down as well as cause you to be frustrated and stressed out. The stress that is derived from searching for life insurance quotes is the main reason this type of task is repeatedly postponed by those who are looking.
Luckily, advertisements involving life insurance can be seen everywhere you look, from magazines and newspapers to the commercials on television. The internet is, by far, the best place to be when looking for life quotes because of the endless possibilities available to anyone who needs them. If you use a search engine to start looking for a free quote, you will find that the amount of results you receive can be considered to be too much. Avoiding that can be as simple as searching for a website that offers comparison of multiples, so that you only have to visit one place to find what you need.
There are a few questions you must have answers to so that the process of finding a company will be quick and accurate. Although plenty of people go without life insurance, one should know that life insurance can take care of the financial problems that arise in the event of someone becoming deceased such as funeral fees and financial debts. Find out which type of coverage you need, such as whole or term life insurance, because each type varies greatly.
Decide how much coverage you need as well as how long you need it. Be prepared to be questioned about tobacco, alcohol and even illegal drug usage during the life insurance quote process. General health questions will also be asked but just because you are not the healthiest does not mean you won't find coverage.
Once you have figured all of that out you can properly begin your search for a insurance. In no time at all, you will have a list of all the available insurance company in your local area of residence as well as web-based companies. This is the best possible way to eliminate any confusion or stress, not to mention you will be certain that you found the insurance quote you were looking for.
Types of Trust for Life Insurance
By: Steve Wentworth
Introduction
Most life insurance companies in the UK offer a free services for placing your life cover into trust. This article explains the different types of trust available for your life insurance and why you should seriously consider placing your policy in trust.
What is a trust?
Trust allow you to make a gift to a beneficiary whilst maintaining some control over who benefits from it and when it becomes available. Instead of the gift being passed directly to the intended beneficiaries, it is transferred to and held by people known as trustees. The gift can be anything from a house to a life insurance policy. Throughout this article we will only consider life insurance policies or combined life and critical illness policies.
What is required to form a trust?
There are four key parts to a trust:
1. Settler - Customer or owner of the life insurance policy.
2. Trust Form - The legal document which formulates the trust.
3. Trustees - Key individuals appointed to by the settler as trustworthy to ensure the settlers wishes are acted upon.
4. Beneficiaries - The individual(s) who will benefit from any proceeds.
A trust form may also require a witness to counter sign each of the sections.
Types of trust?
There are two types of trust when used for the purpose of life cover. These are Base or Absolute Trust and Discretionary Trust.
Base or Absolute Trust
An absolute trust is where the settler knows from the outset who the beneficiary will be, and that the beneficiary will NOT change. This type of trust is rarely used these days due to the flexibility offered by the discretionary trust however one good use of the trust would be where a life insurance policy is taken out to protect the interests of children from a previous marriage. As the children are known and will not change in the future the absolute trust trust would be ideally used here.
Discretionary Trust
A discretionary trust is where the settler puts control of the beneficiaries to the trustees. The trustees will decide who will benefit from a wide range of potential beneficiaries including the family, they will decide at what time and in what share each beneficiary will receive. To help the trustees the settler can give them a written guidance on their latest wishes. This type of trust is extremely flexible and provides a degree of control over the beneficiaries.
Split Discretionary Trust
Where a life insurance policy includes terminal illness benefit and critical illness cover a split discretionary trust can be used, this provides the added benefit of paying out the lump sum to the settler if he suffers a critical illness or diagnosed with terminal illness, but if they suffer loss of life the discretionary trust would apply.EX5FC7HD6JEP
Read More..
Introduction
Most life insurance companies in the UK offer a free services for placing your life cover into trust. This article explains the different types of trust available for your life insurance and why you should seriously consider placing your policy in trust.
What is a trust?
Trust allow you to make a gift to a beneficiary whilst maintaining some control over who benefits from it and when it becomes available. Instead of the gift being passed directly to the intended beneficiaries, it is transferred to and held by people known as trustees. The gift can be anything from a house to a life insurance policy. Throughout this article we will only consider life insurance policies or combined life and critical illness policies.
What is required to form a trust?
There are four key parts to a trust:
1. Settler - Customer or owner of the life insurance policy.
2. Trust Form - The legal document which formulates the trust.
3. Trustees - Key individuals appointed to by the settler as trustworthy to ensure the settlers wishes are acted upon.
4. Beneficiaries - The individual(s) who will benefit from any proceeds.
A trust form may also require a witness to counter sign each of the sections.
Types of trust?
There are two types of trust when used for the purpose of life cover. These are Base or Absolute Trust and Discretionary Trust.
Base or Absolute Trust
An absolute trust is where the settler knows from the outset who the beneficiary will be, and that the beneficiary will NOT change. This type of trust is rarely used these days due to the flexibility offered by the discretionary trust however one good use of the trust would be where a life insurance policy is taken out to protect the interests of children from a previous marriage. As the children are known and will not change in the future the absolute trust trust would be ideally used here.
Discretionary Trust
A discretionary trust is where the settler puts control of the beneficiaries to the trustees. The trustees will decide who will benefit from a wide range of potential beneficiaries including the family, they will decide at what time and in what share each beneficiary will receive. To help the trustees the settler can give them a written guidance on their latest wishes. This type of trust is extremely flexible and provides a degree of control over the beneficiaries.
Split Discretionary Trust
Where a life insurance policy includes terminal illness benefit and critical illness cover a split discretionary trust can be used, this provides the added benefit of paying out the lump sum to the settler if he suffers a critical illness or diagnosed with terminal illness, but if they suffer loss of life the discretionary trust would apply.EX5FC7HD6JEP
Avert Estate Taxes With Single Premium Life Insurance
By: Dean Hood
Single premium whole life is simply the most popular within the annuity market. Until a few alterations were made by the IRS Tax Code it made available the same type of tax deferral as was available in annuities. This type insurance enables you to shield and pass on your personal assets without passing along estate taxes.
The favorable features of Single Premium is going to be you are able to grow tax deferred earnings and also maintaining access to your money. This has its best appeal in the annuity market, where it has the same type of tax deferral as annuities yet having the ability to make tax-free loans. The benefits compared to annuities was the death receipts from single-premium whole life insurance transferred free from federal income taxes on the gain in value.
Then the IRS through the enactment of Section 7702A within the Internal Revenue Code created the concept of a MEC (modified endowment contract). Soon after the change in the regulation to designate single-premium whole life insurance to be a MEC, marketing of Single Premium Whole Life slowed to a trickle. It was commonly held that single-premium whole life insurance policies had lost its tax standing, therefore insurance agents went back to marketing annuities and consequently it had been shelved.
A single-premium whole life policy merely lost some of its tax advantage but still retains its tax status. It is a superior product compared to annuities and continues to make a lot of sense and fundamentally it allows you to preserve and shift your wealth without passing along estate taxes.
Read More..
Single premium whole life is simply the most popular within the annuity market. Until a few alterations were made by the IRS Tax Code it made available the same type of tax deferral as was available in annuities. This type insurance enables you to shield and pass on your personal assets without passing along estate taxes.
The favorable features of Single Premium is going to be you are able to grow tax deferred earnings and also maintaining access to your money. This has its best appeal in the annuity market, where it has the same type of tax deferral as annuities yet having the ability to make tax-free loans. The benefits compared to annuities was the death receipts from single-premium whole life insurance transferred free from federal income taxes on the gain in value.
Then the IRS through the enactment of Section 7702A within the Internal Revenue Code created the concept of a MEC (modified endowment contract). Soon after the change in the regulation to designate single-premium whole life insurance to be a MEC, marketing of Single Premium Whole Life slowed to a trickle. It was commonly held that single-premium whole life insurance policies had lost its tax standing, therefore insurance agents went back to marketing annuities and consequently it had been shelved.
A single-premium whole life policy merely lost some of its tax advantage but still retains its tax status. It is a superior product compared to annuities and continues to make a lot of sense and fundamentally it allows you to preserve and shift your wealth without passing along estate taxes.
Your Options When Seeking Life Insurance For People Over 65
By: Manish Kapil
Life insurance called as life assurance. In this there is a bond between policy holder and insurance company. There are different plans according to age like for children's, money back policy for different ages. The minimum age of plan is 18 years and the maximum age is 60 years.
There are different life insurance premiums like monthly, yearly as well as quarterly according to the convince of the policy holder. The premiums qualify for the section 88 of the income tax act and the returns are fully exempted under Sec 10D.
It has two major categories:
Protection life insurance
Investment plans
In protection plans the customer gives a total amount (lump some). They are designed to provide benefit. The second one is the investment in which is to make possible growth of capital.
There are different key factor to be make careful of insurance plans.
1. Protection or death benefit(Face amount)
2. The premiums which the policy holder deposits
3. Term of the insurance plan.
The face amount which the insurance company sets the protection of policy holder is constant & is for a particular year or years. The premiums are almost same or may increase. There are different terms of your health. It may be 5, 10, 15,20,25,30 as well as 35 years.
There are four types covered for protecting your health like protection plans, premium plans, and individual as well as wealth creation policies.
The protection plans are those plans which are decided to make protection of your family. The main objective of this protection plans is to provide protection to their family instead of single protection. The premium plans are quite traditional and the policy holder will get the money back policies after a stimulated period of time. The individual plans are basically short term plans or long tern plans. The long term plans are those in which the policy holder gets the assured returns after your plan is completed. Long term policies are for 10, 15, 20 years etc according to the needs of the policy holder. The second type are short plans for short duration like 1, 2 years. Last type is the wealth insurance plan. In this plan the plans which flow your money which the consumer and secondly they make lot of payments.
Read More..
Life insurance called as life assurance. In this there is a bond between policy holder and insurance company. There are different plans according to age like for children's, money back policy for different ages. The minimum age of plan is 18 years and the maximum age is 60 years.
There are different life insurance premiums like monthly, yearly as well as quarterly according to the convince of the policy holder. The premiums qualify for the section 88 of the income tax act and the returns are fully exempted under Sec 10D.
It has two major categories:
Protection life insurance
Investment plans
In protection plans the customer gives a total amount (lump some). They are designed to provide benefit. The second one is the investment in which is to make possible growth of capital.
There are different key factor to be make careful of insurance plans.
1. Protection or death benefit(Face amount)
2. The premiums which the policy holder deposits
3. Term of the insurance plan.
The face amount which the insurance company sets the protection of policy holder is constant & is for a particular year or years. The premiums are almost same or may increase. There are different terms of your health. It may be 5, 10, 15,20,25,30 as well as 35 years.
There are four types covered for protecting your health like protection plans, premium plans, and individual as well as wealth creation policies.
The protection plans are those plans which are decided to make protection of your family. The main objective of this protection plans is to provide protection to their family instead of single protection. The premium plans are quite traditional and the policy holder will get the money back policies after a stimulated period of time. The individual plans are basically short term plans or long tern plans. The long term plans are those in which the policy holder gets the assured returns after your plan is completed. Long term policies are for 10, 15, 20 years etc according to the needs of the policy holder. The second type are short plans for short duration like 1, 2 years. Last type is the wealth insurance plan. In this plan the plans which flow your money which the consumer and secondly they make lot of payments.
Things To Be Aware Of With Life Insurance
By: Dawie Bester
In deciding to purchase life insurance, you should not only rely on your friend's comments about its importance and so on. You should also be able to weigh yourself if it will all be worth it. You can do that by simply reading articles about it and collecting the suggestions of those in authority too. The things you should know should include: how it can be availed, how the policy works, how to get them in affordable prices and above all, how can it help you.
Life insurances are common service item. You can just purchase them in any life insurance company. Yet you also have to be discerning especially those that are sold in the internet. Some of them can only be scams. They may only after your money. But they should not also be generalized. There are indeed companies on the web that are trustworthy and reliable. You can look at its license as well as its history so you can be sure of that it is authentic. There are also famous companies that offer them but usually, they can be higher than the others. What you will have to do is first gather the different quotes offered by these different life insurance companies. Then you can compare them and weigh on their pros and cons.
In life insurance policy, you agree on a policy that you may not enjoy yourself. Instead, it's a policy that is purchased mainly for those people whom you love. Life insurance policy is sometimes called income insurance. This is so because part of your income every year of every month, depending on your policy requirement will be given to the company as your premium. You will also be required to name your beneficiaries. There are apparently many types of life insurance so you should choose the kind which fits you and your family's future needs. You should be wise in choosing since there are many policyholders that chose the wrong policy. Thus, the benefits that were given to their family were not enough. When you die on that period when you are an active policyholder, the death benefit, as it is called, will be given immediately to your beneficiaries. Sometimes it can be handed in a lump sum or in installments.
Life insurance has the main goal of keeping your family financially stable, even if you are already gone. It maintains your family's standard of living and may even give them the luxury that they might have enjoyed while you were still alive. Then, aside from that, if you have outstanding debts and liabilities, your death benefit can pay for it. This is also true with your unpaid taxes and the like. Of course, as mentioned, you should also choose one that is sufficient for the future. Otherwise, your benefit can only cover your coffin. However, life insurance is not only for the family. You can actually buy it to protect your business like in the death of a business partner or a key employee.
Read More..
In deciding to purchase life insurance, you should not only rely on your friend's comments about its importance and so on. You should also be able to weigh yourself if it will all be worth it. You can do that by simply reading articles about it and collecting the suggestions of those in authority too. The things you should know should include: how it can be availed, how the policy works, how to get them in affordable prices and above all, how can it help you.
Life insurances are common service item. You can just purchase them in any life insurance company. Yet you also have to be discerning especially those that are sold in the internet. Some of them can only be scams. They may only after your money. But they should not also be generalized. There are indeed companies on the web that are trustworthy and reliable. You can look at its license as well as its history so you can be sure of that it is authentic. There are also famous companies that offer them but usually, they can be higher than the others. What you will have to do is first gather the different quotes offered by these different life insurance companies. Then you can compare them and weigh on their pros and cons.
In life insurance policy, you agree on a policy that you may not enjoy yourself. Instead, it's a policy that is purchased mainly for those people whom you love. Life insurance policy is sometimes called income insurance. This is so because part of your income every year of every month, depending on your policy requirement will be given to the company as your premium. You will also be required to name your beneficiaries. There are apparently many types of life insurance so you should choose the kind which fits you and your family's future needs. You should be wise in choosing since there are many policyholders that chose the wrong policy. Thus, the benefits that were given to their family were not enough. When you die on that period when you are an active policyholder, the death benefit, as it is called, will be given immediately to your beneficiaries. Sometimes it can be handed in a lump sum or in installments.
Life insurance has the main goal of keeping your family financially stable, even if you are already gone. It maintains your family's standard of living and may even give them the luxury that they might have enjoyed while you were still alive. Then, aside from that, if you have outstanding debts and liabilities, your death benefit can pay for it. This is also true with your unpaid taxes and the like. Of course, as mentioned, you should also choose one that is sufficient for the future. Otherwise, your benefit can only cover your coffin. However, life insurance is not only for the family. You can actually buy it to protect your business like in the death of a business partner or a key employee.
3 Surprising Facts About Life Insurance Rates
The average person seeking life insurance quotes thinks that they understand the system completely. However, they often find themselves surprised when they get into the market and learn that their current policy has become overpriced or that their life insurance rates are not identical to the initial quote. Learn these surprising facts before you enter the market and be better prepared to evaluate your offers and keep your costs as low as possible.
Fact: Monitoring Your Policy Is Crucial For All Plans, Not Just Long-Term Options
When an individual holds a term policy, it is a mistake to avoid monitoring and comparing life insurance rates. Once the policy expires, the individual either shops for another policy or must go without coverage. Most individuals will choose to explore the market again, and are often surprised to find that they could have gotten much lower life insurance quotes if they had looked years ago.
The same exact plan will often be available at a lower cost several years down the road. Even though the policy holder is aging, there are factors which can drive down the overall cost over time. Experts recommend checking every year or so to determine whether your policy cost has gone down. If so, simply cancel your current coverage and pick up the new, lower rate for the identical product. Savings over a lifetime can be very significant from this type of rate change.
Fact: Life Insurance Rates Can Decrease As You Age
One of the most common pieces of conventional wisdom about life insurance quotes is that they are determined by age and increase as you get older. In a sense, that is true; the older you are when you apply for the policy, the higher your rates will be. However, the average life expectancy is rising. Companies base their risk analysis in part on the average expectancy. Therefore, if the determined number increases, you could actually see a drop in life insurance rates. You become less expensive for the company to insure, and they are happy to pass the savings on to you.
Finally, the free market also encourages diversification and specialization. Companies now offer coverage to a more limited subset of individuals at a much lower cost, which means that individuals are again seeing more robust savings. However, none of these advantages can benefit you unless you are actively comparing your current rate to the previous quote. The best option is to monitor your life insurance rates on a yearly basis and compare them to current options. If a better rate is available, cancel your current policy and switch.
Fact: Life Insurance Quotes Are Not Always Your Life Insurance Rates
Life insurance quotes are different from rates. The quote is determined based on information you provide. The actual rate is offered only after your application has been medically underwritten, meaning that your information is approved by a medical underwriting company. Your medical records are examined and you yourself may actually go in for a medical examination by the company, depending on the details of the policy for which you are applying.
The best way to keep your quotes close to your actual rates is to be as truthful as possible in all aspects of your application. Always explain in detail your health situation and whether you engage in any high-risk behaviors. True information will help companies determine what rate they can give you, and false information does nothing to help you get coverage. You will see rates based purely on your actual situation sooner or later, so it is better to get the most accurate quotes now by providing accurate information.
Please remember that all suggestions in this article are just suggestions, and everything should be discussed with a qualified broker before you make any decisions. Don't change your coverage without carefully considering the implications of what might occur, and remember that some types of coverage cannot be changed but must be cancelled. As always, confer with your broker to determine which options best suit your needs.
Read More..
Fact: Monitoring Your Policy Is Crucial For All Plans, Not Just Long-Term Options
When an individual holds a term policy, it is a mistake to avoid monitoring and comparing life insurance rates. Once the policy expires, the individual either shops for another policy or must go without coverage. Most individuals will choose to explore the market again, and are often surprised to find that they could have gotten much lower life insurance quotes if they had looked years ago.
The same exact plan will often be available at a lower cost several years down the road. Even though the policy holder is aging, there are factors which can drive down the overall cost over time. Experts recommend checking every year or so to determine whether your policy cost has gone down. If so, simply cancel your current coverage and pick up the new, lower rate for the identical product. Savings over a lifetime can be very significant from this type of rate change.
Fact: Life Insurance Rates Can Decrease As You Age
One of the most common pieces of conventional wisdom about life insurance quotes is that they are determined by age and increase as you get older. In a sense, that is true; the older you are when you apply for the policy, the higher your rates will be. However, the average life expectancy is rising. Companies base their risk analysis in part on the average expectancy. Therefore, if the determined number increases, you could actually see a drop in life insurance rates. You become less expensive for the company to insure, and they are happy to pass the savings on to you.
Finally, the free market also encourages diversification and specialization. Companies now offer coverage to a more limited subset of individuals at a much lower cost, which means that individuals are again seeing more robust savings. However, none of these advantages can benefit you unless you are actively comparing your current rate to the previous quote. The best option is to monitor your life insurance rates on a yearly basis and compare them to current options. If a better rate is available, cancel your current policy and switch.
Fact: Life Insurance Quotes Are Not Always Your Life Insurance Rates
Life insurance quotes are different from rates. The quote is determined based on information you provide. The actual rate is offered only after your application has been medically underwritten, meaning that your information is approved by a medical underwriting company. Your medical records are examined and you yourself may actually go in for a medical examination by the company, depending on the details of the policy for which you are applying.
The best way to keep your quotes close to your actual rates is to be as truthful as possible in all aspects of your application. Always explain in detail your health situation and whether you engage in any high-risk behaviors. True information will help companies determine what rate they can give you, and false information does nothing to help you get coverage. You will see rates based purely on your actual situation sooner or later, so it is better to get the most accurate quotes now by providing accurate information.
Please remember that all suggestions in this article are just suggestions, and everything should be discussed with a qualified broker before you make any decisions. Don't change your coverage without carefully considering the implications of what might occur, and remember that some types of coverage cannot be changed but must be cancelled. As always, confer with your broker to determine which options best suit your needs.
Why Many Young Families Are Purchasing A Combination Of Term Life Insurance And Whole Life Coverage
By: Chris A. Harmen
In an increasingly uncertain world, families are seeking ways to protect themselves without breaking the bank. Although the economic downturn has stopped some families from seeking coverage, many have responded by determining new ways to get the most for their dollar. One of the most popular ways to save is by holding both a whole and a term life insurance policy at the same time.
Benefits Of Buying Whole Life Insurance Early
Whole life insurance is distinct because it offers coverage for the entirety of an individual's life, provided that life does not continue past age 100 (or 120). One of the benefits is that the rate that an individual receives at the beginning of the coverage period will endure throughout the duration of the coverage. In essence, by purchasing this particular type of coverage early, an individual is ensuring protection as well as low rates.
Age and health are the biggest factors that determine how much an individual pays for any type of policy. When an individual is young, the company knows that they are unlikely to cash in the policy anytime soon. In essence, the company gives the individual a lower rate because that company knows they are likely to profit from the individual's payments rather than having to pay the individual in the near future. However, as age rises and health decreases, the company's risk increases and they must charge higher rates to remain solvent. The only way to ensure the lowest rates is to acquire a policy at a young age.
Supplementing Your Lifelong Policy With Term Life Insurance
One drawback of a lifelong policy is that it is prohibitively expensive for large amounts of coverage. Because it is guaranteed to be cashed at some point, a lifelong policy must be slightly more expensive per dollar of coverage obtained; otherwise, the issuing company could not remain financially viable. Many families are taking advantage of a simple, yet little-known fact about coverage: a single individual can hold several different policies at the same time. In the case of young families, the breadwinners typically choose a lifelong policy at a lower level that will continue for as long as they are alive, and then complement that with a term life insurance policy that will last only as long as their children need support.
During the time when children are in the house, the amount of coverage needed for the parents increases dramatically. Once those children are grown, the need for a high amount of coverage decreases. If they chose a lifelong policy, they would quickly find themselves overpaying and over-insured as generally, once a lifelong policy has been selected, its coverage amount cannot be changed. The solution many families have found is to use term life insurance to cover the period when they have children in the house. Term life insurance allows them to cover a specific period of time at a lower rate. Because term life insurance does not necessarily end up being used, companies are able to offer significantly reduced rates in comparison to lifelong policies.
Putting The Strategy Into Action
The first step to buying whole or term policies is to find a licensed insurance broker. Even the best suggestions are only suggestions, and should always be discussed with an experienced planner who can take into account your unique financial situation. Once you have covered the basic ideas of the plan with a broker and he or she has agreed that combining whole and term life insurance is a wise decision, you should begin comparing different plans available.
There are many options for comparing policies. Your broker may be able to provide options, but you should also be sure to check online. Many families were able to find better deals on both whole and term life insurance by using online quote comparison sites. The best providers of online quotes are also able to offer assistance filling in the actual coverage application, which used to be an advantage reserved for in-person broker offices.
The Coverage You Need, When You Need It
By carrying two types of coverage, families are able to avoid being over-insured, keeping their hard-earned money for other uses. Whatever your family decides to do about protection, ensure that you will have enough. Ensure that your estimates are accurate and always err on the side of caution. It may seem overly cautious now, but if your family ever loses you, it will make a big difference to their quality of life.
Read More..
In an increasingly uncertain world, families are seeking ways to protect themselves without breaking the bank. Although the economic downturn has stopped some families from seeking coverage, many have responded by determining new ways to get the most for their dollar. One of the most popular ways to save is by holding both a whole and a term life insurance policy at the same time.
Benefits Of Buying Whole Life Insurance Early
Whole life insurance is distinct because it offers coverage for the entirety of an individual's life, provided that life does not continue past age 100 (or 120). One of the benefits is that the rate that an individual receives at the beginning of the coverage period will endure throughout the duration of the coverage. In essence, by purchasing this particular type of coverage early, an individual is ensuring protection as well as low rates.
Age and health are the biggest factors that determine how much an individual pays for any type of policy. When an individual is young, the company knows that they are unlikely to cash in the policy anytime soon. In essence, the company gives the individual a lower rate because that company knows they are likely to profit from the individual's payments rather than having to pay the individual in the near future. However, as age rises and health decreases, the company's risk increases and they must charge higher rates to remain solvent. The only way to ensure the lowest rates is to acquire a policy at a young age.
Supplementing Your Lifelong Policy With Term Life Insurance
One drawback of a lifelong policy is that it is prohibitively expensive for large amounts of coverage. Because it is guaranteed to be cashed at some point, a lifelong policy must be slightly more expensive per dollar of coverage obtained; otherwise, the issuing company could not remain financially viable. Many families are taking advantage of a simple, yet little-known fact about coverage: a single individual can hold several different policies at the same time. In the case of young families, the breadwinners typically choose a lifelong policy at a lower level that will continue for as long as they are alive, and then complement that with a term life insurance policy that will last only as long as their children need support.
During the time when children are in the house, the amount of coverage needed for the parents increases dramatically. Once those children are grown, the need for a high amount of coverage decreases. If they chose a lifelong policy, they would quickly find themselves overpaying and over-insured as generally, once a lifelong policy has been selected, its coverage amount cannot be changed. The solution many families have found is to use term life insurance to cover the period when they have children in the house. Term life insurance allows them to cover a specific period of time at a lower rate. Because term life insurance does not necessarily end up being used, companies are able to offer significantly reduced rates in comparison to lifelong policies.
Putting The Strategy Into Action
The first step to buying whole or term policies is to find a licensed insurance broker. Even the best suggestions are only suggestions, and should always be discussed with an experienced planner who can take into account your unique financial situation. Once you have covered the basic ideas of the plan with a broker and he or she has agreed that combining whole and term life insurance is a wise decision, you should begin comparing different plans available.
There are many options for comparing policies. Your broker may be able to provide options, but you should also be sure to check online. Many families were able to find better deals on both whole and term life insurance by using online quote comparison sites. The best providers of online quotes are also able to offer assistance filling in the actual coverage application, which used to be an advantage reserved for in-person broker offices.
The Coverage You Need, When You Need It
By carrying two types of coverage, families are able to avoid being over-insured, keeping their hard-earned money for other uses. Whatever your family decides to do about protection, ensure that you will have enough. Ensure that your estimates are accurate and always err on the side of caution. It may seem overly cautious now, but if your family ever loses you, it will make a big difference to their quality of life.
What To Do If Your Life Insurance Policy Has Expired
By: Chris A. Harmen
There are many benefits of holding a term policy. One of the most obvious is that a low term life insurance rate means that your family gets better coverage per dollar spent, and that it's a low-maintenance plan during its duration. However, that policy will eventually expire, and you will have to renegotiate the terms of the policy in order to continue it. During the time between the expiration of the last policy and the negotiation of the new one, you will be unprotected. To ensure that protection continues, you need to be proactive.
Why Your Current Policy Expires
Because your term life insurance rate is based upon your health, virtually all policies will require that you have a thorough medical exam and that your medical history is considered in full before they will confirm your new policy. For this reason, unless you keep careful track of your policy and apply for a new quote long before your old one expires, there will be an interim period. Your old coverage will end, and then you will apply for a new term life insurance rate. While you are waiting the four to six weeks for final approval after undergoing the medical examination, you will be completely unprotected.
Your Best Alternative: Be Proactive About Your New Term Life Insurance Rate
Considering why your coverage can lapse, you'll see that you can have uninterrupted coverage by knowing when your current policy will end and planning accordingly. If you can get your new life insurance rate before your old one expires, then you can transition to your new term policy with no problems. However, many policy owners find it difficult to keep such careful track of something with as long a duration as term coverage.
There is one way to make it easier. With the advent of online term life insurance rate providers, financial planners now advocate examining your coverage on a yearly basis to see if there are more economical options. Although it may seem counterintuitive, it is actually possible for your same policy to become less expensive for your age group. The life expectancy is rising for Americans, and you benefit from that phenomenon. In effect, as the age rises, your age becomes less of a high risk factor. But unless you check frequently to determine whether your policy is the best offered or not, you won't know. The company certainly won't offer to reduce your term life insurance rate without your prompting.
Most financial planners recommend that you check online every year or two. That means you're taking a more active role in monitoring your policy, which means you're more likely to know when it's going to expire. If you can simply keep an eye on the expiration date, you can plan ahead so that you get your new term life insurance rate before the old one expires, eliminating the gap period entirely.
If You Can't Avoid The Gap, You're Not Out Of Options
There are two main alternatives if you cannot obtain a new term life insurance rate before your old coverage expires. The first is to simply get guaranteed coverage, which does not require any kind of health exam. You can get coverage instantly, but it tends to be somewhat more expensive than your regular term life insurance rate. Guaranteed coverage can also be a permanent coverage option for individuals who are higher risk. Examine your particular plan in detail and check with a broker before making any decisions.
The second option is to choose a term life insurance rate that includes a binding coverage option. In order to apply for binding coverage, you must submit a TIA form with your application for coverage. Once that form is received, you are automatically covered until your application can be processed. All you need do is submit your first month's premium with the application. If you ultimately cannot qualify for that term life insurance rate, you'll be refunded in full. If this is the case, your coverage during that interim period is revoked retroactively.
A Good Broker Can Help You
All decisions about policies and rates should be made with the assistance of a broker. Purchasing this type of policy is a big decision, and the legal language can be complex and difficult to understand otherwise. The suggestions in this article should be discussed with your broker before you take any action. What you should do is ultimately determined by your unique situation, and only your broker knows the details of your current plan.
Read More..
There are many benefits of holding a term policy. One of the most obvious is that a low term life insurance rate means that your family gets better coverage per dollar spent, and that it's a low-maintenance plan during its duration. However, that policy will eventually expire, and you will have to renegotiate the terms of the policy in order to continue it. During the time between the expiration of the last policy and the negotiation of the new one, you will be unprotected. To ensure that protection continues, you need to be proactive.
Why Your Current Policy Expires
Because your term life insurance rate is based upon your health, virtually all policies will require that you have a thorough medical exam and that your medical history is considered in full before they will confirm your new policy. For this reason, unless you keep careful track of your policy and apply for a new quote long before your old one expires, there will be an interim period. Your old coverage will end, and then you will apply for a new term life insurance rate. While you are waiting the four to six weeks for final approval after undergoing the medical examination, you will be completely unprotected.
Your Best Alternative: Be Proactive About Your New Term Life Insurance Rate
Considering why your coverage can lapse, you'll see that you can have uninterrupted coverage by knowing when your current policy will end and planning accordingly. If you can get your new life insurance rate before your old one expires, then you can transition to your new term policy with no problems. However, many policy owners find it difficult to keep such careful track of something with as long a duration as term coverage.
There is one way to make it easier. With the advent of online term life insurance rate providers, financial planners now advocate examining your coverage on a yearly basis to see if there are more economical options. Although it may seem counterintuitive, it is actually possible for your same policy to become less expensive for your age group. The life expectancy is rising for Americans, and you benefit from that phenomenon. In effect, as the age rises, your age becomes less of a high risk factor. But unless you check frequently to determine whether your policy is the best offered or not, you won't know. The company certainly won't offer to reduce your term life insurance rate without your prompting.
Most financial planners recommend that you check online every year or two. That means you're taking a more active role in monitoring your policy, which means you're more likely to know when it's going to expire. If you can simply keep an eye on the expiration date, you can plan ahead so that you get your new term life insurance rate before the old one expires, eliminating the gap period entirely.
If You Can't Avoid The Gap, You're Not Out Of Options
There are two main alternatives if you cannot obtain a new term life insurance rate before your old coverage expires. The first is to simply get guaranteed coverage, which does not require any kind of health exam. You can get coverage instantly, but it tends to be somewhat more expensive than your regular term life insurance rate. Guaranteed coverage can also be a permanent coverage option for individuals who are higher risk. Examine your particular plan in detail and check with a broker before making any decisions.
The second option is to choose a term life insurance rate that includes a binding coverage option. In order to apply for binding coverage, you must submit a TIA form with your application for coverage. Once that form is received, you are automatically covered until your application can be processed. All you need do is submit your first month's premium with the application. If you ultimately cannot qualify for that term life insurance rate, you'll be refunded in full. If this is the case, your coverage during that interim period is revoked retroactively.
A Good Broker Can Help You
All decisions about policies and rates should be made with the assistance of a broker. Purchasing this type of policy is a big decision, and the legal language can be complex and difficult to understand otherwise. The suggestions in this article should be discussed with your broker before you take any action. What you should do is ultimately determined by your unique situation, and only your broker knows the details of your current plan.
Affordable Life Insurance - Deciding What Is Adequate Coverage
By: Chimerenka Odimba
Being under or over covered in your life coverage is not the best. You lose money either way. It is very important that you know the extent of coverage you need and how you can enjoy affordable cover with free life insurance quotes.
Here is an easy way to decide what amount is adequate. We would be taking into consideration both the amount you can pay in premiums and the coverage amount. Some people calculate based on their family's monthly money requirements. Other people use an amount ten times there yearly earnings. We can find even more complex systems of arriving at an amount. Here, let us look at a very simple way.
The first thing you need to know is how much your family would need in a month. You would need to constantly review your policy to reflect the changes in your family's up keep costs. An example is the addition of a baby with its attendant cost. This method requires that the money paid to your family would be invested. If after your calculations, you find that your family requires $2000 to live well monthly, you would find search for an investment plan which MUST be very low risk and have a minimum return on investment. Here's how it works. You find the investment plan, know the minimum return on investment let us assume it is 10% annually. You want that 10% to be your family's yearly requirement which following our example would be $24,000. Since my family would require $24,000 yearly and the return on investment is 10%, to yield $24,000 yearly, I would need to invest $240,000. That's it.
You would agree that this looks very simple. This simplified explanation may not amuse financial experts. The issue is that it is simple enough to be a plan for a lot of people.
Let us look some more recommendation.
For those who have term life insurance policies, make sure that whatever you pay as monthly premium is not more that 5% of what you earn monthly. For whole life insurance policy holders with cash value, it should not be more than 10%. Don't be stressed by all the figures and percentages. You can decide to get an expert to help you formulate a plan for your life insurance policy. I don't see why you can not get a life insurance coverage. If it is the cost, go to quotes comparison sites. Get affordable life insurance quotes from these comparison sites for comparisons. You would get free life insurance quotes to help you find the best rates for the coverage you need.
Read More..
Being under or over covered in your life coverage is not the best. You lose money either way. It is very important that you know the extent of coverage you need and how you can enjoy affordable cover with free life insurance quotes.
Here is an easy way to decide what amount is adequate. We would be taking into consideration both the amount you can pay in premiums and the coverage amount. Some people calculate based on their family's monthly money requirements. Other people use an amount ten times there yearly earnings. We can find even more complex systems of arriving at an amount. Here, let us look at a very simple way.
The first thing you need to know is how much your family would need in a month. You would need to constantly review your policy to reflect the changes in your family's up keep costs. An example is the addition of a baby with its attendant cost. This method requires that the money paid to your family would be invested. If after your calculations, you find that your family requires $2000 to live well monthly, you would find search for an investment plan which MUST be very low risk and have a minimum return on investment. Here's how it works. You find the investment plan, know the minimum return on investment let us assume it is 10% annually. You want that 10% to be your family's yearly requirement which following our example would be $24,000. Since my family would require $24,000 yearly and the return on investment is 10%, to yield $24,000 yearly, I would need to invest $240,000. That's it.
You would agree that this looks very simple. This simplified explanation may not amuse financial experts. The issue is that it is simple enough to be a plan for a lot of people.
Let us look some more recommendation.
For those who have term life insurance policies, make sure that whatever you pay as monthly premium is not more that 5% of what you earn monthly. For whole life insurance policy holders with cash value, it should not be more than 10%. Don't be stressed by all the figures and percentages. You can decide to get an expert to help you formulate a plan for your life insurance policy. I don't see why you can not get a life insurance coverage. If it is the cost, go to quotes comparison sites. Get affordable life insurance quotes from these comparison sites for comparisons. You would get free life insurance quotes to help you find the best rates for the coverage you need.
Life Insurance - A Look At 4 Unique Options For Maximum Coverage
By: Chris A. Harmen
If you are like many Americans, you want excellent coverage even if you require high risk life insurance or some other type of special accommodation. There are many Americans who have had to aggressively pursue adequate protection due to their lifestyle choices or medical conditions. Yet no matter how dire your circumstances, there are options which you can still consider. You may never see life insurance rates that compare with those of your peers, but these innovative policy sources provide viable options.
Option #1: High Risk Life Insurance
This type of plan has long been the go-to option for individuals who cannot qualify for lower life insurance rates. This is the category specifically defined for men and women who are at the highest end of what a company considers an acceptable risk. However, not every high risk policy is identical. Some companies specialize in this field and may provide better coverage than others.
In addition, some companies may have different definitions of a high risk individual. There will certainly be companies whose definitions are identical, but the question ultimately depends on your condition and the insurer's standards. For some companies, you might count as a slightly lower risk and be eligible for lower life insurance rates because of it.
Regardless of the rates available, many companies will still provide you with a policy even if you are in their highest risk category. Whenever you do select a higher risk policy option, ensure that you are being guided by a knowledgeable broker. You should always have proper guidance, but it is particularly important to have a broker on a high risk policy because it is generally more difficult to find affordable high risk insurance.
Option #2: Guaranteed Issue Policies
This type of policy goes a step beyond high risk. Where high risk life insurance considers your condition and decides to insure you as a high risk case, guaranteed issue policies have absolutely no medical check. You will not answer a single medical question and you will not be required to undergo any type of medical exam in order to have your application approved. This type of policy has another advantage: it may be faster than a medically underwritten policy precisely because it does not involve any kind of exam. There is usually a long waiting period while the medical underwriter processes your medical records and exam results before resolving on a rate class for you. With guaranteed issue policies, that entire time period becomes unnecessary.
There are also a number of other policies which fall under the umbrella of nonmedical issue but may ask some questions about medical status on their application forms. These choices are simplified issue policies. Together, these different policies provide a wealth of options for individuals who need it the most. This type of coverage goes significantly beyond high risk life insurance - it covers literally everyone, no matter their current health condition.
Option #3: Specialized Coverage For Smokers
If you have a history of smoking, you often face high life insurance rates and difficulty finding coverage. However, smokers no longer have to accept that they will always pay obscene rates. There are an increasing number of options for a smoker to get great coverage.
The best option is simply to shop around. Different companies will offer different life insurance rates. Some may classify smokers differently from others, placing you in a lower risk category and therefore offering you a better price. Some may also specialize in providing for smokers, giving you excellent coverage without the high price tag. Being flexible and looking online is often the key to getting the lowest life insurance rates in this circumstance. As with high risk life insurance, work with a qualified broker to ensure you get excellent quality coverage.
Option #4: Mortgage Coverage Policies
This type of coverage is unique because it is so specialized. Mortgage coverage is specifically for one purpose: to pay off the mortgage on a specified piece of property in the event of the insured's death. Although it may seem like a small benefit, paying off a mortgage can mean the difference between living in comfort and losing a home. For a business owner, it can mean the difference between the survival of the business and bankruptcy. If property is important, considering mortgage coverage is very wise.
No matter what you decide, always discuss the options with a qualified specialist before you make any changes to your coverage. Every situation will be different, and only a guide who knows your situation can give completely accurate advice.
Read More..
If you are like many Americans, you want excellent coverage even if you require high risk life insurance or some other type of special accommodation. There are many Americans who have had to aggressively pursue adequate protection due to their lifestyle choices or medical conditions. Yet no matter how dire your circumstances, there are options which you can still consider. You may never see life insurance rates that compare with those of your peers, but these innovative policy sources provide viable options.
Option #1: High Risk Life Insurance
This type of plan has long been the go-to option for individuals who cannot qualify for lower life insurance rates. This is the category specifically defined for men and women who are at the highest end of what a company considers an acceptable risk. However, not every high risk policy is identical. Some companies specialize in this field and may provide better coverage than others.
In addition, some companies may have different definitions of a high risk individual. There will certainly be companies whose definitions are identical, but the question ultimately depends on your condition and the insurer's standards. For some companies, you might count as a slightly lower risk and be eligible for lower life insurance rates because of it.
Regardless of the rates available, many companies will still provide you with a policy even if you are in their highest risk category. Whenever you do select a higher risk policy option, ensure that you are being guided by a knowledgeable broker. You should always have proper guidance, but it is particularly important to have a broker on a high risk policy because it is generally more difficult to find affordable high risk insurance.
Option #2: Guaranteed Issue Policies
This type of policy goes a step beyond high risk. Where high risk life insurance considers your condition and decides to insure you as a high risk case, guaranteed issue policies have absolutely no medical check. You will not answer a single medical question and you will not be required to undergo any type of medical exam in order to have your application approved. This type of policy has another advantage: it may be faster than a medically underwritten policy precisely because it does not involve any kind of exam. There is usually a long waiting period while the medical underwriter processes your medical records and exam results before resolving on a rate class for you. With guaranteed issue policies, that entire time period becomes unnecessary.
There are also a number of other policies which fall under the umbrella of nonmedical issue but may ask some questions about medical status on their application forms. These choices are simplified issue policies. Together, these different policies provide a wealth of options for individuals who need it the most. This type of coverage goes significantly beyond high risk life insurance - it covers literally everyone, no matter their current health condition.
Option #3: Specialized Coverage For Smokers
If you have a history of smoking, you often face high life insurance rates and difficulty finding coverage. However, smokers no longer have to accept that they will always pay obscene rates. There are an increasing number of options for a smoker to get great coverage.
The best option is simply to shop around. Different companies will offer different life insurance rates. Some may classify smokers differently from others, placing you in a lower risk category and therefore offering you a better price. Some may also specialize in providing for smokers, giving you excellent coverage without the high price tag. Being flexible and looking online is often the key to getting the lowest life insurance rates in this circumstance. As with high risk life insurance, work with a qualified broker to ensure you get excellent quality coverage.
Option #4: Mortgage Coverage Policies
This type of coverage is unique because it is so specialized. Mortgage coverage is specifically for one purpose: to pay off the mortgage on a specified piece of property in the event of the insured's death. Although it may seem like a small benefit, paying off a mortgage can mean the difference between living in comfort and losing a home. For a business owner, it can mean the difference between the survival of the business and bankruptcy. If property is important, considering mortgage coverage is very wise.
No matter what you decide, always discuss the options with a qualified specialist before you make any changes to your coverage. Every situation will be different, and only a guide who knows your situation can give completely accurate advice.
Clear Reasons Why You Need Life Insurance
By: Dawie Bester
There are many people who think that the life they have in this earth is absolutely theirs. This is why they spent their money on many useless things that cannot satisfy their souls. In the end, it is known to us that material things cannot be brought in wherever we go when we die. But for people who recognized this reality, they instead spend their money on sensible and long lasting things. Things which they know can give effect and help those whom the future is still unknown. For them, it is better to save for other people than to secure their own selves.
This is what parents usually feel. Instead of satisfying their own wants. They rather plan ahead for their family's security. This is why life insurance policies are common services purchased by parents. It does not only make them confident but also gives them the peace of mind that they deserve. Life insurance policy can be bought by a parent or both parents. Premium is required to serve as the benefit in the end. They can be given in a lump sum or in instalments. Unlike pensions, life insurance benefits can only be claimed by the beneficiaries.
Like any other insurance, life insurance policy differs. There are those that are paid in fixed terms while there are those that have flexibility in their premiums. However, whatever policy is chosen, here are the top reasons why you need to have one for your loved ones.
It keeps you confident.
As mentioned, life insurance company can help you keep you confident. Putting simply, it makes you prepared in case you meet death on the bend. It assures you that no matter what, your family is already insured with or without your presence. You experience fulfillment in that you have already saved something for your love one's future.
It relieves your family of the burden.
If you die, your family will not be left helpless. They will not have to depend on somebody else to provide for their subsistence. This also includes the expenses that may be brought upon by your funeral expenses and other costs that will be incurred. In case you left behind unpaid debts and bills, your family will also be relieved. They will not suffer both form losing you and the cost of your absence.
Children's Education.
Life insurance also works like an educational plan if you have chosen the most comprehensive one. Rest assured your children can reach the dreams you have cleared the path for them.
Business purposes.
Life insurance is also beneficial for businesses. You can insure your key employee so that your establishment will not suffer great loss, in case he dies. Alternatively, you and your business partner can also get life insurance so that in case one of you will die, there will be no hiatus over who the deceased relatives. This can help you avoid problems and misunderstandings in the business.
Read More..
There are many people who think that the life they have in this earth is absolutely theirs. This is why they spent their money on many useless things that cannot satisfy their souls. In the end, it is known to us that material things cannot be brought in wherever we go when we die. But for people who recognized this reality, they instead spend their money on sensible and long lasting things. Things which they know can give effect and help those whom the future is still unknown. For them, it is better to save for other people than to secure their own selves.
This is what parents usually feel. Instead of satisfying their own wants. They rather plan ahead for their family's security. This is why life insurance policies are common services purchased by parents. It does not only make them confident but also gives them the peace of mind that they deserve. Life insurance policy can be bought by a parent or both parents. Premium is required to serve as the benefit in the end. They can be given in a lump sum or in instalments. Unlike pensions, life insurance benefits can only be claimed by the beneficiaries.
Like any other insurance, life insurance policy differs. There are those that are paid in fixed terms while there are those that have flexibility in their premiums. However, whatever policy is chosen, here are the top reasons why you need to have one for your loved ones.
It keeps you confident.
As mentioned, life insurance company can help you keep you confident. Putting simply, it makes you prepared in case you meet death on the bend. It assures you that no matter what, your family is already insured with or without your presence. You experience fulfillment in that you have already saved something for your love one's future.
It relieves your family of the burden.
If you die, your family will not be left helpless. They will not have to depend on somebody else to provide for their subsistence. This also includes the expenses that may be brought upon by your funeral expenses and other costs that will be incurred. In case you left behind unpaid debts and bills, your family will also be relieved. They will not suffer both form losing you and the cost of your absence.
Children's Education.
Life insurance also works like an educational plan if you have chosen the most comprehensive one. Rest assured your children can reach the dreams you have cleared the path for them.
Business purposes.
Life insurance is also beneficial for businesses. You can insure your key employee so that your establishment will not suffer great loss, in case he dies. Alternatively, you and your business partner can also get life insurance so that in case one of you will die, there will be no hiatus over who the deceased relatives. This can help you avoid problems and misunderstandings in the business.
What Is Equity Indexed Universal Life Insurance?
By: Kenneth Ford
The product is based on traditional Universal Life, which includes a number of advantages. These advantages include flexible premium payments, low cost permanent life insurance, tax deferred growth of cash values, tied to a stock market index, with no downward movements allowed. The policy has loans available, tax free death benefits and the ability to adjust the policy to meet specific personal or business needs.
The major difference with equity indexed universal life is that you participate indirectly in the upward movement of a stock market index, without accepting the normal risk associated with such investment.The actual interest credited to a policy's cash value is determined by the annual changes of an equities index, most programs utilize the S & P 500 as the underlying index for their EIUL products. The most unique aspect of EIUL, is that in years where the Underlying index increases, the account value increases by that percentage up to a cap limit, which is hovering around 15% at this juncture. In years where the underlying index is flat or loses value, the cash value suffers no decrease, maintaining the value from the previous gains. This is the real value of EIUL, there is no risk of losing value in a down market. Some products offer a guaranteed annual return for policies maintained over a certain period of time. EIUL is a long term investment vehicle, it will not provide optimal returns over the short term.
The advantage of life insurance as a retirement vehicle, that is often overlooked, is the ability to take tax free loans, after a given funding period. Combined with the capability of funding the life insurance portion to minimum face value, a powerful hybrid tool with exceptional performance features is created. The concept can be illustrated via webinar, or a personal presentation. The power of tax free growth, combined with tax free withdrawal, is as attractive as it gets in long term investment today. Why not see for yourself?
Obviously, obtaining a financially secure insurance company with a history of integrity is important in buying any life insurance policy. AM Best and other independent ratings services are readily available to help determine the companies financial strength, and hence its ability to continue to credit policyholders with fair returns, as well as pay liabilities incurred by the death of policy holders. The performance of the policy will be impacted more by the quality of the insurance company, that in the performance of the S & P 500. The most effective way to ensure the performance of a policy is in accordance with the goals of the policy holder, after careful selection of an appropriate advisor company and product, is to annually review the performance of the policy, and make corrections where necessary. Remember, a great advantage of Universal life is its flexibility, with respect to premiums, face value and cost of insurance, but it may also be a disadvantage. Ensure that the contract clearly defines participation rates and that the cap rates are realistic. An illustration is based on today's factors, and can not anticipate without assumptions, the value of markets in the future. These assumptions are generally based on a modest interest rate, well within the historical average parameters, but in comparing products, ensure that similar rates are part of the assumptions. The product selection you make should be based on these and other factors that you and your agent uncover during the due diligence process. These factors should be discussed prior to initiating the search for an EIUL policy, to enable an effective search, uninhibited by preconceived notions that may or may not reflect the goal of a prospective client.
Read More..
The product is based on traditional Universal Life, which includes a number of advantages. These advantages include flexible premium payments, low cost permanent life insurance, tax deferred growth of cash values, tied to a stock market index, with no downward movements allowed. The policy has loans available, tax free death benefits and the ability to adjust the policy to meet specific personal or business needs.
The major difference with equity indexed universal life is that you participate indirectly in the upward movement of a stock market index, without accepting the normal risk associated with such investment.The actual interest credited to a policy's cash value is determined by the annual changes of an equities index, most programs utilize the S & P 500 as the underlying index for their EIUL products. The most unique aspect of EIUL, is that in years where the Underlying index increases, the account value increases by that percentage up to a cap limit, which is hovering around 15% at this juncture. In years where the underlying index is flat or loses value, the cash value suffers no decrease, maintaining the value from the previous gains. This is the real value of EIUL, there is no risk of losing value in a down market. Some products offer a guaranteed annual return for policies maintained over a certain period of time. EIUL is a long term investment vehicle, it will not provide optimal returns over the short term.
The advantage of life insurance as a retirement vehicle, that is often overlooked, is the ability to take tax free loans, after a given funding period. Combined with the capability of funding the life insurance portion to minimum face value, a powerful hybrid tool with exceptional performance features is created. The concept can be illustrated via webinar, or a personal presentation. The power of tax free growth, combined with tax free withdrawal, is as attractive as it gets in long term investment today. Why not see for yourself?
Obviously, obtaining a financially secure insurance company with a history of integrity is important in buying any life insurance policy. AM Best and other independent ratings services are readily available to help determine the companies financial strength, and hence its ability to continue to credit policyholders with fair returns, as well as pay liabilities incurred by the death of policy holders. The performance of the policy will be impacted more by the quality of the insurance company, that in the performance of the S & P 500. The most effective way to ensure the performance of a policy is in accordance with the goals of the policy holder, after careful selection of an appropriate advisor company and product, is to annually review the performance of the policy, and make corrections where necessary. Remember, a great advantage of Universal life is its flexibility, with respect to premiums, face value and cost of insurance, but it may also be a disadvantage. Ensure that the contract clearly defines participation rates and that the cap rates are realistic. An illustration is based on today's factors, and can not anticipate without assumptions, the value of markets in the future. These assumptions are generally based on a modest interest rate, well within the historical average parameters, but in comparing products, ensure that similar rates are part of the assumptions. The product selection you make should be based on these and other factors that you and your agent uncover during the due diligence process. These factors should be discussed prior to initiating the search for an EIUL policy, to enable an effective search, uninhibited by preconceived notions that may or may not reflect the goal of a prospective client.
Life Insurance - Why Do You Really Need It?
By: Aaron Edwards
Life insurance in Malibu should be as required for a married individual as auto insurance is for anyone driving an automobile. I think we're all pretty certain that life is uncertain. We insure the other things that matter to us, but put off getting what some consider to be the foundation to any good financial plan for the future. It comes down to one simple question - Would your family maintain their lifestyle if something happened to you? Would they be able to stay in their home in Malibu? Or, would they need to move, to find new lives, far away from the lifestyle you formerly shared with them? When you consider your other insurance needs, consider Malibu life insurance as well, so your family will have the resources to get along, in the event you can't provide for them.
If you really care about the future, life insurance is important. We don't like to think of a future where we aren't there to provide security, but it could happen. You want your family to be financially secure. Able to stay in their home, free from worry, knowing that you provided for them. That's what a good life policy can do. You've planned for their future; can you afford to risk it?
Just because you bought life insurance once, doesn't mean you never need to think about it again.
Life changes fast. Don't forget to re-evaluate your Malibu life policy, just like you would any other insurance policy. Maybe you purchased a policy when you were young and just starting out. Do you make considerably more money now than you did then? Maybe you've had additions to your life and family, like kids. These are two of the major reasons that your existing policy should be reviewed and modified to meet your current family needs.
There are many different life insurance policies to choose from. Get information and quotes on term life, whole life, universal life, variable universal life and more. It seems intimidating, but don't forget that there are online tools to help you figure out what type of life insurance policy you really want and need. It's scary until you take that first step and then it's easy from there. Don't forget, most insurance agents will meet you on your terms and when it's convenient for you to go over the options you've decided on.
Read More..
Life insurance in Malibu should be as required for a married individual as auto insurance is for anyone driving an automobile. I think we're all pretty certain that life is uncertain. We insure the other things that matter to us, but put off getting what some consider to be the foundation to any good financial plan for the future. It comes down to one simple question - Would your family maintain their lifestyle if something happened to you? Would they be able to stay in their home in Malibu? Or, would they need to move, to find new lives, far away from the lifestyle you formerly shared with them? When you consider your other insurance needs, consider Malibu life insurance as well, so your family will have the resources to get along, in the event you can't provide for them.
If you really care about the future, life insurance is important. We don't like to think of a future where we aren't there to provide security, but it could happen. You want your family to be financially secure. Able to stay in their home, free from worry, knowing that you provided for them. That's what a good life policy can do. You've planned for their future; can you afford to risk it?
Just because you bought life insurance once, doesn't mean you never need to think about it again.
Life changes fast. Don't forget to re-evaluate your Malibu life policy, just like you would any other insurance policy. Maybe you purchased a policy when you were young and just starting out. Do you make considerably more money now than you did then? Maybe you've had additions to your life and family, like kids. These are two of the major reasons that your existing policy should be reviewed and modified to meet your current family needs.
There are many different life insurance policies to choose from. Get information and quotes on term life, whole life, universal life, variable universal life and more. It seems intimidating, but don't forget that there are online tools to help you figure out what type of life insurance policy you really want and need. It's scary until you take that first step and then it's easy from there. Don't forget, most insurance agents will meet you on your terms and when it's convenient for you to go over the options you've decided on.
What Happens When The Balloon Pops?
By: Ed Hinerman
I feel a little like the boy that cried wolf and pretty soon no one is listening, but if you have a universal life, variable universal life, indexed universal life or whole life policy, the wolf is real and if you ignore it long enough it's going to mess up your financial future and very likely your family's future.
I know it seems a simple and safe assumption that anything called universal or whole life would be a policy designed, unlike term insurance, to last forever. Agents present it as a safe and guaranteed way to build cash for your retirement and have life insurance all in one neat little package. They tout the company and its' reputation. They point to the investment returns for the last 30 years (which helps soften the reality of the last 3). They make you believe it is bombproof and while it is just a little outrageously expensive now, you'll look back from retirement and be thanking them. Your children will be sending them Christmas cards.
Or, if you are one of the more than 6 in 10 permanent life insurance owners who don't know that your policy is not guaranteed and have no idea that one day it will just collapse beyond repair, you will finally understand why the agent never called you after the sale. It will make sense why the agent never did an annual review of your coverage even though the home office sent you a letter each year recommending it. It will become all too clear that you have been sold a policy that will shortly become worthless after costing you tens or possibly hundreds of thousands of dollars, none of which will be recovered.
So, what happens when the poop hits the fan? How do you know your policy is in trouble and what can you do about it? Let's say you've been rolling along for 10 years paying $300 a month for your $250,000 universal life policy. It was starting to build cash value but after 2008-2009, that value had dropped well below the surrender charge. You get an annual report from the company that states that if you continue to pay $300 per month your policy will lapse in 2 years, but if you increase your monthly premium to $540 per month your policy is guaranteed not to lapse for 7 years. The report won't even mention the amount it would take to keep it in force for life because they really hope you will take the $540 offer and they can continue to suck your blood for another seven years.
What can you do about it? If you health is good enough, take any available cash out of the policy and go buy a guaranteed UL or better yet a term insurance policy that will free up enough money monthly that you can put your extra money into a real investment. If your health is not as good as it was when you took the policy out, make sure you shop for term insurance and lock in the best possible rate before you take the cash out of the UL.
I would tell you that if you can find the agent that sold you the policy, you ought to sue him or her for misrepresentation, but the chances are they are no longer in business. If they are in business it's very hard to prove 10 years later that they willfully misrepresented the policy as opposed to just being stupid. Better to put your time and energy into putting something in force that is fully guaranteed and tell you kids to forget about sending those Christmas cards.
Bottom line. Having been around universal life products and agents who sell them since the early 80's my personal feeling is that the agents aren't stupid and they knew the product was doomed to fail when they sold it. But the most important thing to them was they made the sale and a nice paycheck. If you have any kind of a cash value policy and your agent is missing in action, find a reputable independent agent and get an in force illustration from the company right away. If you wait until the balloon pops, well, you're probably going to feel, if not look just like a 7 year old when their balloon pops.
Read More..
I feel a little like the boy that cried wolf and pretty soon no one is listening, but if you have a universal life, variable universal life, indexed universal life or whole life policy, the wolf is real and if you ignore it long enough it's going to mess up your financial future and very likely your family's future.
I know it seems a simple and safe assumption that anything called universal or whole life would be a policy designed, unlike term insurance, to last forever. Agents present it as a safe and guaranteed way to build cash for your retirement and have life insurance all in one neat little package. They tout the company and its' reputation. They point to the investment returns for the last 30 years (which helps soften the reality of the last 3). They make you believe it is bombproof and while it is just a little outrageously expensive now, you'll look back from retirement and be thanking them. Your children will be sending them Christmas cards.
Or, if you are one of the more than 6 in 10 permanent life insurance owners who don't know that your policy is not guaranteed and have no idea that one day it will just collapse beyond repair, you will finally understand why the agent never called you after the sale. It will make sense why the agent never did an annual review of your coverage even though the home office sent you a letter each year recommending it. It will become all too clear that you have been sold a policy that will shortly become worthless after costing you tens or possibly hundreds of thousands of dollars, none of which will be recovered.
So, what happens when the poop hits the fan? How do you know your policy is in trouble and what can you do about it? Let's say you've been rolling along for 10 years paying $300 a month for your $250,000 universal life policy. It was starting to build cash value but after 2008-2009, that value had dropped well below the surrender charge. You get an annual report from the company that states that if you continue to pay $300 per month your policy will lapse in 2 years, but if you increase your monthly premium to $540 per month your policy is guaranteed not to lapse for 7 years. The report won't even mention the amount it would take to keep it in force for life because they really hope you will take the $540 offer and they can continue to suck your blood for another seven years.
What can you do about it? If you health is good enough, take any available cash out of the policy and go buy a guaranteed UL or better yet a term insurance policy that will free up enough money monthly that you can put your extra money into a real investment. If your health is not as good as it was when you took the policy out, make sure you shop for term insurance and lock in the best possible rate before you take the cash out of the UL.
I would tell you that if you can find the agent that sold you the policy, you ought to sue him or her for misrepresentation, but the chances are they are no longer in business. If they are in business it's very hard to prove 10 years later that they willfully misrepresented the policy as opposed to just being stupid. Better to put your time and energy into putting something in force that is fully guaranteed and tell you kids to forget about sending those Christmas cards.
Bottom line. Having been around universal life products and agents who sell them since the early 80's my personal feeling is that the agents aren't stupid and they knew the product was doomed to fail when they sold it. But the most important thing to them was they made the sale and a nice paycheck. If you have any kind of a cash value policy and your agent is missing in action, find a reputable independent agent and get an in force illustration from the company right away. If you wait until the balloon pops, well, you're probably going to feel, if not look just like a 7 year old when their balloon pops.
What Is The Waiting Period For Cancer And Life Insurance?
By: Ed Hinerman
With almost all life insurance underwriting in relation to someone with a history of cancer there will be a waiting period after the completion of treatment before a company will approve a policy. The only exception to that rule that I can think of would be the two most common skin cancers, basal cell carcinoma and squamous cell carcinoma of the skin.
From there in general it would jump to a one year waiting period after treatment primarily to see if there is any quick recurrence, which would suggest either a more aggressive cancer than was thought or possibly some cancer cells that were missed with the treatment. The one year waiting period would most likely be used in the instance of low stage/low grade cancers such as in situ breast cancer, a grade 6 or lower prostate cancer and in general any cancer that is considered to be a stage 0, fully encapsulated tumor or cyst. We were recently able to get standard plus rates about 9 months out from a very low stage and grade Melanoma.
My wife recently had a large ovarian tumor that was taken out with a total hysterectomy. Pathology showed it was a stage 0 Brenner tumor, cancerous yes, likely to spread or recur no. If she needed more life insurance we would likely be looking at a year before we could get standard rates.
It's not uncommon with cancers that are more aggressive or are more prone to recurrence for companies to postpone consideration of coverage for 5 years or even as much as 10, or rather than postpone, approve the policy but with an extra charge per thousand dollars worth of coverage per year until that 5 or 10 year point is reached. When we place a policy like that we continue to shop it every six months or so just in case someone has changed their stance on the waiting period or extra charge. Companies don't set their guidelines in stone and never review them so the possibility for improvement is always out there.
Bottom line. The key to success is to find an independent agent who understands the different company stances on cancer and provide them with the pathology report, post surgical or whichever report is their final conclusion. Understand that coverage won't be available if you are still being treated and just because your oncologist says you are cancer free, insurance companies aren't going to be treating it as if it never happened.
Read More..
With almost all life insurance underwriting in relation to someone with a history of cancer there will be a waiting period after the completion of treatment before a company will approve a policy. The only exception to that rule that I can think of would be the two most common skin cancers, basal cell carcinoma and squamous cell carcinoma of the skin.
From there in general it would jump to a one year waiting period after treatment primarily to see if there is any quick recurrence, which would suggest either a more aggressive cancer than was thought or possibly some cancer cells that were missed with the treatment. The one year waiting period would most likely be used in the instance of low stage/low grade cancers such as in situ breast cancer, a grade 6 or lower prostate cancer and in general any cancer that is considered to be a stage 0, fully encapsulated tumor or cyst. We were recently able to get standard plus rates about 9 months out from a very low stage and grade Melanoma.
My wife recently had a large ovarian tumor that was taken out with a total hysterectomy. Pathology showed it was a stage 0 Brenner tumor, cancerous yes, likely to spread or recur no. If she needed more life insurance we would likely be looking at a year before we could get standard rates.
It's not uncommon with cancers that are more aggressive or are more prone to recurrence for companies to postpone consideration of coverage for 5 years or even as much as 10, or rather than postpone, approve the policy but with an extra charge per thousand dollars worth of coverage per year until that 5 or 10 year point is reached. When we place a policy like that we continue to shop it every six months or so just in case someone has changed their stance on the waiting period or extra charge. Companies don't set their guidelines in stone and never review them so the possibility for improvement is always out there.
Bottom line. The key to success is to find an independent agent who understands the different company stances on cancer and provide them with the pathology report, post surgical or whichever report is their final conclusion. Understand that coverage won't be available if you are still being treated and just because your oncologist says you are cancer free, insurance companies aren't going to be treating it as if it never happened.
Pru Steps It Up For Private Pilots!
By: Ed Hinerman
Prudential has always been somewhat private pilot friendly, not always leading the way, but always in the mix for fair underwriting and good rates. It now appears they are making a serious move to capture more of the life insurance market.
Changes have been dribbling out over the past 6 months starting first with the bad news. Prudential has always given private pilots and student pilots equal footing in underwriting, but about 6 months ago they removed student pilots from that bracket and added a $2.50 per thousand flat extra to their coverage. To make at least some people feel better, at the same time they softened their stance on experimental and home built aircraft owners by giving them the same rate class as other pilots as long as they had 50 or more hours in their experimental of home built plane.
When these changes came out they hinted that more changes were coming and within the last two weeks they released their new guidelines which open up some never before seen doors for the avid pilot, at least with Pru. While they are not the only company that has stepped out and offered the best rate class for private pilots, they are one of only three that will go best class for both IFR and VFR.
The criteria for best class (along with good health):
- No rateable aviation activities (right side up, no bush landings, etc)
- Age 30 or over
- Minimum 1000 total hours or 5+ aviation history as a non student
- 30-300 hours annual flying time
- No FAA violations
- Minimum 100 hours in current make/model of aircraft
- Valid medical with no restrictions other than corrective lenses
- Must be fixed wing pilot only (no rotorcraft or glider pilots)
This is a huge step for Pru as their old guidelines were only slightly more liberal, primarily in the total hours required, and they would only approve at their third best rate class, standard plus.
This follows AXA Equitable's new underwriting guidelines allowing the best rate class for IFR and VFR with more liberal total and annual hour requirements than Pru and no requirement for minimum hours in current aircraft. Minnesota Life will go best rate on IFR and second best on VFR, while North American will go second best, preferred, for both ratings. ING Reliastar advertises that they will approve best rate on IFR and VFR, but they add a 48 cent flat extra that really takes them out of competition in a lot of cases.
Bottom line. I see this as a trend back toward friendlier skies for private pilots. Just with the underwriting I've mentioned here there are great opportunities for aviation coverage without exclusions or flat extra rates.
Read More..
Prudential has always been somewhat private pilot friendly, not always leading the way, but always in the mix for fair underwriting and good rates. It now appears they are making a serious move to capture more of the life insurance market.
Changes have been dribbling out over the past 6 months starting first with the bad news. Prudential has always given private pilots and student pilots equal footing in underwriting, but about 6 months ago they removed student pilots from that bracket and added a $2.50 per thousand flat extra to their coverage. To make at least some people feel better, at the same time they softened their stance on experimental and home built aircraft owners by giving them the same rate class as other pilots as long as they had 50 or more hours in their experimental of home built plane.
When these changes came out they hinted that more changes were coming and within the last two weeks they released their new guidelines which open up some never before seen doors for the avid pilot, at least with Pru. While they are not the only company that has stepped out and offered the best rate class for private pilots, they are one of only three that will go best class for both IFR and VFR.
The criteria for best class (along with good health):
- No rateable aviation activities (right side up, no bush landings, etc)
- Age 30 or over
- Minimum 1000 total hours or 5+ aviation history as a non student
- 30-300 hours annual flying time
- No FAA violations
- Minimum 100 hours in current make/model of aircraft
- Valid medical with no restrictions other than corrective lenses
- Must be fixed wing pilot only (no rotorcraft or glider pilots)
This is a huge step for Pru as their old guidelines were only slightly more liberal, primarily in the total hours required, and they would only approve at their third best rate class, standard plus.
This follows AXA Equitable's new underwriting guidelines allowing the best rate class for IFR and VFR with more liberal total and annual hour requirements than Pru and no requirement for minimum hours in current aircraft. Minnesota Life will go best rate on IFR and second best on VFR, while North American will go second best, preferred, for both ratings. ING Reliastar advertises that they will approve best rate on IFR and VFR, but they add a 48 cent flat extra that really takes them out of competition in a lot of cases.
Bottom line. I see this as a trend back toward friendlier skies for private pilots. Just with the underwriting I've mentioned here there are great opportunities for aviation coverage without exclusions or flat extra rates.
Life Insurance And Seven Reasons To Buy It
By: Bob Y Grant
Life insurance is something that many people do not want to think about. They know that they need it. However, the subject of death can be very unsettling. Yet, it is a very important decision. Here are seven reasons why you should consider taking out a policy.
1. Your family will be taken care of. You may be the major bread winner for the family. What will they do if something suddenly happens to you? There is peace of mind that comes with knowing they are taken care of.
2. It may be a good investment. Some types of coverage allow you to receive dividends. It may also increase in value over the years. After time, you can borrow against the value of the policy. It will also be an important financial asset, when applying for loans.
3. You can have a dual purpose investment. You will earn money over the years. You will also be fully covered against the unthinkable.
4. Your funeral expenses can be taken care of. The price of funerals continues to rise. Some of the money that your loved ones receive, can pay those expenses.
5. Do you own a business? You may have business partners. It is a good idea for everyone to have the proper coverage. This insures that the business will go on.
6. You can protect your home. Many mortgage companies offer this type of coverage. It can be separate from a normal policy. If something happens to you, your family could be homeless. This way, they will have a place to stay. They will not have to worry about making a house payment, either.
7. You can insure that your kids have a college fund. Something may happen to you. You may not be there to contribute to the kid's college fund. The right policy will provide for their future education.
Read More..
Life insurance is something that many people do not want to think about. They know that they need it. However, the subject of death can be very unsettling. Yet, it is a very important decision. Here are seven reasons why you should consider taking out a policy.
1. Your family will be taken care of. You may be the major bread winner for the family. What will they do if something suddenly happens to you? There is peace of mind that comes with knowing they are taken care of.
2. It may be a good investment. Some types of coverage allow you to receive dividends. It may also increase in value over the years. After time, you can borrow against the value of the policy. It will also be an important financial asset, when applying for loans.
3. You can have a dual purpose investment. You will earn money over the years. You will also be fully covered against the unthinkable.
4. Your funeral expenses can be taken care of. The price of funerals continues to rise. Some of the money that your loved ones receive, can pay those expenses.
5. Do you own a business? You may have business partners. It is a good idea for everyone to have the proper coverage. This insures that the business will go on.
6. You can protect your home. Many mortgage companies offer this type of coverage. It can be separate from a normal policy. If something happens to you, your family could be homeless. This way, they will have a place to stay. They will not have to worry about making a house payment, either.
7. You can insure that your kids have a college fund. Something may happen to you. You may not be there to contribute to the kid's college fund. The right policy will provide for their future education.
Should I Buy Life Insurance In This Economy?
By: Wayne Earp
Since the value of life insurance doesn't really kick in until you're dead, the only people who really need it are breadwinners, or people have others depending on them for support, like parents or adult children supporting elderly parents. The problem, however, is that too many breadwinners go on without any form of coverage.
According to LIMRA, an industry-supported research group, recently, thirty percent (30%) of households in the United States don't have any form of coverage at all. Six years ago, the number of households without any coverage was lower at 22%.
Sadly, among those without any insurance are 11 million families with children under 18 years old. Only 4 out of 10 American households bought a policy outside any workplace coverage.
Tight Budget Is No Excuse
A tight budget is one reason why a lot people go without. Most people have other priorities for a limited income, including retirement savings or debt repayment. However, people with dependents are putting their family at risk, because unless their family members have other assets to rely on, the death of the main income earner takes a significant toll on survivors.
So, even in this economy, if you have children or other people depending on you, having life coverage is a must. Other than that however, the cost of life coverage have dropped significantly.
In the early 1990s, if you were a a 40-year-old man in perfect health, you would have to pay an annual premium of $995 for a 20-year term policy with $500,000 coverage. Today, the cost is only $360 a year for the same amount of benefit.
With that said, carefully weigh the pros and the cons of getting life insurance.
Read More..
Since the value of life insurance doesn't really kick in until you're dead, the only people who really need it are breadwinners, or people have others depending on them for support, like parents or adult children supporting elderly parents. The problem, however, is that too many breadwinners go on without any form of coverage.
According to LIMRA, an industry-supported research group, recently, thirty percent (30%) of households in the United States don't have any form of coverage at all. Six years ago, the number of households without any coverage was lower at 22%.
Sadly, among those without any insurance are 11 million families with children under 18 years old. Only 4 out of 10 American households bought a policy outside any workplace coverage.
Tight Budget Is No Excuse
A tight budget is one reason why a lot people go without. Most people have other priorities for a limited income, including retirement savings or debt repayment. However, people with dependents are putting their family at risk, because unless their family members have other assets to rely on, the death of the main income earner takes a significant toll on survivors.
So, even in this economy, if you have children or other people depending on you, having life coverage is a must. Other than that however, the cost of life coverage have dropped significantly.
In the early 1990s, if you were a a 40-year-old man in perfect health, you would have to pay an annual premium of $995 for a 20-year term policy with $500,000 coverage. Today, the cost is only $360 a year for the same amount of benefit.
With that said, carefully weigh the pros and the cons of getting life insurance.
Affordable Life Insurance Quotes - What Coverage Is Enough?
By: Chimerenka Odimba
Knowing the extent of cover you need is important to avoid under or over coverage. Whether you are over covered or under covered, you lose money. You can enjoy cheap cover with free life insurance quotes when you know the amount of cover you need.
Let me suggest one way you may arrive at a suitable amount. Your ability to pay your premiums conveniently would be considered along with the coverage amount. You can like some people do, calculate what your family would require to live comfortably monthly and use this as a focal point. Another strategy is calculating your earnings for ten years. Some people use even more complex calculations. We would look at a simple way to arrive at an adequate amount.
We base this on how much your family's monthly need amounts to. Since your family's upkeep would likely be increasing, you would need to regularly update your policy to accommodate this. The birth of a baby is an example of an increase in a family's monthly requirements. In this plan, the funds paid would have to be invested. If $2000 is what your family would require monthly to live well, you would have to find an investment plan that is highly low risk and with a minimum return on investment. When you have found the safe investment plan and the least possible return on investment then you are set. Let us assume the return on investment is 10% yearly, you would calculate your family's yearly needs which would amount to $24,000. This is should be equal to the 10% return on investment. To get the $24,000 my family would nee yearly, I would need to invest $240,000 at a minimum return on investment of 10%. That is about it.
This explanation should be simple enough. Financial gurus may find this too basic. At least it does not have to be complicated to work.
Here are some other options.
Term life policy holders should ensure that they are not paying more than 5% of their monthly income as premium. This can be up to but not more than 10% for whole life policy holders with cash value. You don't have to force yourself if you do not understand all these numbers. There is always the option to get an expert to work with you to get the right life insurance plan. There is no excuse for not having a life insurance policy. If your issues is how much it would cost you, just visit quotes comparison sites. Compare the affordable life insurance quotes you get from these comparison sites. With free life insurance quotes, you can easily locate the insurance company offering the cheapest rates for adequate coverages.
Read More..
Knowing the extent of cover you need is important to avoid under or over coverage. Whether you are over covered or under covered, you lose money. You can enjoy cheap cover with free life insurance quotes when you know the amount of cover you need.
Let me suggest one way you may arrive at a suitable amount. Your ability to pay your premiums conveniently would be considered along with the coverage amount. You can like some people do, calculate what your family would require to live comfortably monthly and use this as a focal point. Another strategy is calculating your earnings for ten years. Some people use even more complex calculations. We would look at a simple way to arrive at an adequate amount.
We base this on how much your family's monthly need amounts to. Since your family's upkeep would likely be increasing, you would need to regularly update your policy to accommodate this. The birth of a baby is an example of an increase in a family's monthly requirements. In this plan, the funds paid would have to be invested. If $2000 is what your family would require monthly to live well, you would have to find an investment plan that is highly low risk and with a minimum return on investment. When you have found the safe investment plan and the least possible return on investment then you are set. Let us assume the return on investment is 10% yearly, you would calculate your family's yearly needs which would amount to $24,000. This is should be equal to the 10% return on investment. To get the $24,000 my family would nee yearly, I would need to invest $240,000 at a minimum return on investment of 10%. That is about it.
This explanation should be simple enough. Financial gurus may find this too basic. At least it does not have to be complicated to work.
Here are some other options.
Term life policy holders should ensure that they are not paying more than 5% of their monthly income as premium. This can be up to but not more than 10% for whole life policy holders with cash value. You don't have to force yourself if you do not understand all these numbers. There is always the option to get an expert to work with you to get the right life insurance plan. There is no excuse for not having a life insurance policy. If your issues is how much it would cost you, just visit quotes comparison sites. Compare the affordable life insurance quotes you get from these comparison sites. With free life insurance quotes, you can easily locate the insurance company offering the cheapest rates for adequate coverages.
A Life Settlement Broker Can Help
By: Kelly Ramirez
There are many things that a life settlement broker can offer you. Many people don't quite understand the job of a broker. It's a relatively new job, and a relatively new field of financial development. In order explain what a settlement broker does, you must first understand how life settlements work.
Life settlements are also known as life insurance settlements, senior life settlements, or senior settlements. Anybody that is planning for a financial future, generally has some form of life insurance. Many insurance agents, family planners, elder law attorneys, estate planners and finance related professionals don't realize that life insurance settlements are actually a tool that they can actually use to increase their income.
Your policy is judged on many different factors. An older policy is worth more money. So the value is judged by the age of the policy, the age of the policy holder, the health of the policy holder, the size of the policy, the premium amount of the policy, and the cash value of the policy, (if any). Some policies are so new that they don't have much of a value, so you have to keep that in mind.
Many times you will find that brokers and their jobs are still a little bit misunderstood. This is unfortunate because the job of a broker like this is really to help you make more money in your business if you are a financial professional.
And a lot of financial professionals don't realize, that just about everybody has some form of life insurance, and a lot of times they switch and they change. They're not interested in continuing with the policy. It could be a policy that they've had for over a decade, yet they still want to get something new.
A few of the ways that financial professionals introduce people to these policies is that they use presentations, seminars, and newsletters - just like anybody would use to introduce any new financial opportunity to a client. Sometimes they even use direct mail campaigns. For all of these reasons a life settlement broker can be a very good person to know. They can help many people make money.
Read More..
There are many things that a life settlement broker can offer you. Many people don't quite understand the job of a broker. It's a relatively new job, and a relatively new field of financial development. In order explain what a settlement broker does, you must first understand how life settlements work.
Life settlements are also known as life insurance settlements, senior life settlements, or senior settlements. Anybody that is planning for a financial future, generally has some form of life insurance. Many insurance agents, family planners, elder law attorneys, estate planners and finance related professionals don't realize that life insurance settlements are actually a tool that they can actually use to increase their income.
Your policy is judged on many different factors. An older policy is worth more money. So the value is judged by the age of the policy, the age of the policy holder, the health of the policy holder, the size of the policy, the premium amount of the policy, and the cash value of the policy, (if any). Some policies are so new that they don't have much of a value, so you have to keep that in mind.
Many times you will find that brokers and their jobs are still a little bit misunderstood. This is unfortunate because the job of a broker like this is really to help you make more money in your business if you are a financial professional.
And a lot of financial professionals don't realize, that just about everybody has some form of life insurance, and a lot of times they switch and they change. They're not interested in continuing with the policy. It could be a policy that they've had for over a decade, yet they still want to get something new.
A few of the ways that financial professionals introduce people to these policies is that they use presentations, seminars, and newsletters - just like anybody would use to introduce any new financial opportunity to a client. Sometimes they even use direct mail campaigns. For all of these reasons a life settlement broker can be a very good person to know. They can help many people make money.
Are Life Settlements Worth It?
By: Kelly Ramirez
For some people life settlements have afforded them the opportunity to care for themselves and their families. People that turn their policies over to a buyer are given a specific amount which is related to how much the policy itself is valued at. That money is often used to cover the policyholder's expenses before they become deceased. When the original policyholder passes on the monies are paid to the current holder.
Prior to this option, the original policyholder could turn it back in to the insurer for a small financial reward or allow it to lapse. Either way, they would receive little to nothing in return. A policyholder may want to rid themselves the burden due to premium costs, the death of the original beneficiary, or they may not need the policy in some for numerous reasons. Selling off your settlement is not easy. There is money to be made, but there are also broker fees to be considered before the policy is sold.
Specific people are sought for selling their policies. It is in the best interest of the buyer to look for those that are older and most often, retired. Investments in those in their 30s is quite different form those in their 60s.
Selling a policy incurs some risks. The original policyholder could potentially not be able to get additional life insurance to take care of a family should they die. If there is no family, it is a matter of whether the money will last long enough to cover their individual expenses. It can create a less secure feeling.
Both parties benefit from life settlements. People who no longer wants to pay for policies have the right to sell them off at a fraction higher than what the insurance companies would offer and are no longer responsible for the costs associated with carrying them. The investor is banking on reaping back what they have paid out and then some upon the passing of the original policyholder.
Read More..
For some people life settlements have afforded them the opportunity to care for themselves and their families. People that turn their policies over to a buyer are given a specific amount which is related to how much the policy itself is valued at. That money is often used to cover the policyholder's expenses before they become deceased. When the original policyholder passes on the monies are paid to the current holder.
Prior to this option, the original policyholder could turn it back in to the insurer for a small financial reward or allow it to lapse. Either way, they would receive little to nothing in return. A policyholder may want to rid themselves the burden due to premium costs, the death of the original beneficiary, or they may not need the policy in some for numerous reasons. Selling off your settlement is not easy. There is money to be made, but there are also broker fees to be considered before the policy is sold.
Specific people are sought for selling their policies. It is in the best interest of the buyer to look for those that are older and most often, retired. Investments in those in their 30s is quite different form those in their 60s.
Selling a policy incurs some risks. The original policyholder could potentially not be able to get additional life insurance to take care of a family should they die. If there is no family, it is a matter of whether the money will last long enough to cover their individual expenses. It can create a less secure feeling.
Both parties benefit from life settlements. People who no longer wants to pay for policies have the right to sell them off at a fraction higher than what the insurance companies would offer and are no longer responsible for the costs associated with carrying them. The investor is banking on reaping back what they have paid out and then some upon the passing of the original policyholder.
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