Life insurance can be a great way to get protection for now and to plan for the future. After all, we want to make sure that our plans and loved ones are taken care of for as long as possible. Doing research ahead of time helps you get the best possible coverage at the right price. Here are some helpful facts and ways they can help you.
1. Shopping around can save money
As with most insurance, when it comes to life insurance, it pays to shop around because premiums can vary widely. And thanks to the Internet, it's now easier than ever. From research, to quoting, to buying a policy, there's never been so much information available. Even if you need to speak to an agent or company, shopping on the Internet first can make your discussion more efficient.
2. Having enough coverage is crucial
If you need life insurance enough to buy it, you also need to make sure you're not underinsured. It's important not to have too little coverage, because then you won't get the benefits you need. If you don't think you can afford life insurance, explore your options, because it's often cheaper than you'd expect. However, if you can't afford all the insurance you need right now, start with a smaller amount. You should be able to buy more at a similar price when you can afford it.
3. The healthier you are, the better the rates
It's true—healthy people get better rates on life insurance. You will be asked to pay a higher rate for anything that shortens your life expectancy (e.g., smoking, taking regular prescriptions, engaging in risky activities, and being overweight). Consider what small lifestyle changes you can make that will improve your health and possibly your rates.
4. Buying sooner rather than later can help
If you've been putting off purchasing life insurance because you don't want to pay the premiums, you may be doing yourself a disservice in the long run. The younger you are when you purchase life insurance, the lower your premiums will be. In addition, it's harder to get life insurance if you have some of the conditions that come with growing older.
5. It's important to regularly review your coverage
The end of one year or the beginning of the next is a good time to examine your insurance needs. Any life change signals the need for a review of your overall financial plan. When it comes to life insurance, you'll want to make sure your coverage still matches the changes you've made. Marriage, the birth of a child, and impending retirement can all have an effect on the insurance you need and the coverage amount that's appropriate.
6. There are different types of life insurance
Different types of life insurance have different characteristics and are intended to accomplish different things. For instance, term life insurance is generally designed to provide the maximum amount of protection for the smallest premium dollar, but only for a set period. On the other hand, cash value life insurance offers benefits for your entire life and an investment and savings component, although at a much higher premium cost. In the majority of cases, term life insurance is the better choice.
7. You might pay more by choosing monthly premium payments
You may not realize it, but your life insurance might cost more if you pay your premium in monthly installments. Many insurance companies offer a discount if you pay your premium annually rather than monthly. Although the overall cost and benefits of the policy are more important than getting a discount, you might get a lower price by paying annually.
8. You shouldn't rely solely on the life insurance offered by your employer
Many employers offer their employees group life insurance. However, this coverage is usually not enough to adequately meet your life insurance needs. More importantly, group life insurance policies from your employer are not portable, meaning that if you leave your job, you lose your life insurance coverage.
9. You should tell the whole truth and nothing but the truth
If you lie or omit information on a life insurance application, your life insurance company may be able to terminate your coverage. They may also be able to charge you for the higher premiums you should have been paying, or deny claims. For this reason, make sure to answer all questions fully. There are many different life insurance companies, and even if you don't qualify for the best rate from one of them, you may still be able to get a good rate from another.
10. Buying more can be cheaper
Life insurance usually costs progressively less per thousand dollars at higher coverage amounts (e.g., $250,000). That means doubling your coverage generally won't double your premium. If your life insurance needs increase, be sure to explore your options. It may not cost as much as you think to buy more coverage.
Showing posts with label life insurance. Show all posts
Showing posts with label life insurance. Show all posts
DYNAMIC LIFE AND AUTO INSURANCE : The Truth Behind Viatical Settlement Contracts
Viatical settlement contracts allow a person to sell their life insurance policy to a third party in exchange for a reduced amount of its face value. The amount you get back is dependent on your health, age, number of years your policy is in force, and death benefit. A major concern these days is that many life insurance settlement companies purposely try and mislead investors about what kind of return they should expect. They stretch the truth and play with numbers to make viatical settlement contracts sound like the best thing since sliced bread, but really, they are a gamble where you may risk your retirement nest egg on the odds of someone’s life expectancy.
Viatical settlement contracts are quite risky, so if you are considering purchasing a contract, you should approach it with caution. The U.S. Securities and Exchange Commission (SEC), whose mission statement says it functions to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation, cannot regulate viaticals because they are not considered securities. States are working together more and more in an attempt to address the scam-artist issue when it comes to viatical settlement contracts, and many require viatical companies to be licensed.
One state that has taken a big step against fraudulent viatical contract activities is Florida. In Florida, viatical companies cannot “guarantee” investment returns, brokers are required to be licensed as life insurance agents, as well as to disclose transaction compensation, and if the company is in violation of viatical settlement provisions, they will be penalized.
What is being done to stop fraudulent viatical settlement companies
In an attempt to stop corruption, the SEC has a few suggestions when it comes to requirements for viatical companies:
* Make a full disclosure of all products
* Make a full disclosure of all their companies
* Financial statements for the company and the owners
* State risks associated with viaticals
* Make information available to investors
The Schemes
* Wet Ink. A 'wet ink' scheme is when a healthy person is persuaded by a viatical settlement company to apply for life insurance, then turns around, sells and receives a lump-sum payment. The policy is then resold to awaiting-investors. The ink is barely even dry before it’s sold off again. Wet ink schemes are another way to stimulate insurance fraud, as well as undermining the insurable interest rule.
* Clean Sheeting. 'Clean sheeting' is a term used to refer to terminally ill people who lie about their medical history to get approved for a life insurance policy. They apply for an amount barely under the limit before a medical exam is required and then once approved, sell the policy off.
Viatical settlement contracts in short
There is no guarantee when it comes to viatical settlement contracts. There are no guarantees on how much you will get back, not many regulations on them and also no data available to track and display the investment performance. A lack of control is what makes these types of investments so faulty—since some states have actual security regulators overseeing viaticals, and others just have the insurance department. As with all kinds of insurances, be sure to read the fine print and understand everything before signing off.
Viatical settlement contracts are quite risky, so if you are considering purchasing a contract, you should approach it with caution. The U.S. Securities and Exchange Commission (SEC), whose mission statement says it functions to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation, cannot regulate viaticals because they are not considered securities. States are working together more and more in an attempt to address the scam-artist issue when it comes to viatical settlement contracts, and many require viatical companies to be licensed.
One state that has taken a big step against fraudulent viatical contract activities is Florida. In Florida, viatical companies cannot “guarantee” investment returns, brokers are required to be licensed as life insurance agents, as well as to disclose transaction compensation, and if the company is in violation of viatical settlement provisions, they will be penalized.
What is being done to stop fraudulent viatical settlement companies
In an attempt to stop corruption, the SEC has a few suggestions when it comes to requirements for viatical companies:
* Make a full disclosure of all products
* Make a full disclosure of all their companies
* Financial statements for the company and the owners
* State risks associated with viaticals
* Make information available to investors
The Schemes
* Wet Ink. A 'wet ink' scheme is when a healthy person is persuaded by a viatical settlement company to apply for life insurance, then turns around, sells and receives a lump-sum payment. The policy is then resold to awaiting-investors. The ink is barely even dry before it’s sold off again. Wet ink schemes are another way to stimulate insurance fraud, as well as undermining the insurable interest rule.
* Clean Sheeting. 'Clean sheeting' is a term used to refer to terminally ill people who lie about their medical history to get approved for a life insurance policy. They apply for an amount barely under the limit before a medical exam is required and then once approved, sell the policy off.
Viatical settlement contracts in short
There is no guarantee when it comes to viatical settlement contracts. There are no guarantees on how much you will get back, not many regulations on them and also no data available to track and display the investment performance. A lack of control is what makes these types of investments so faulty—since some states have actual security regulators overseeing viaticals, and others just have the insurance department. As with all kinds of insurances, be sure to read the fine print and understand everything before signing off.
DYNAMIC LIFE AND AUTO INSURANCE : Term Life Insurance vs. Permanent Life Insurance-Is Cash Value the Best Value?
If you're looking for life insurance, aside from considering how much you need, you'll find the need to understand and possibly choose between the two basic types: term life insurance and cash value life insurance.
The main difference between the two is that term life insurance covers you relatively inexpensively for a set period, whereas cash value life insurance covers you at a much higher cost for the remainder of your life. Cash value life insurance costs considerably more than term life insurance, depending on age and health, but adds a cash value component of debatable merit.
How do term and cash value life insurance work?
Term life insurance generally offers the most amount of coverage for the least amount of money, and is the appropriate choice for most people. The most common reason to buy life insurance is to replace a person's income in case of early death, and term life insurance is the cheapest and best way to do that. Term life insurance is also an especially good choice for people and families who are just starting out, because it's relatively cheap and provides a lot of protection when replacing income is most important.
Cash value life insurance, also called permanent or whole life insurance, offers protection for your entire life (as long as you pay your premiums) and more flexibility than term life insurance. However, it usually comes at a much higher price. For example, the premium for a cash value policy can easily be 10 or more times higher than a term policy with the same level of coverage. The feature that makes permanent life insurance different is its ability to gain cash value. A portion of the money you pay into your premium goes into a cash value portion that grows over time, and becomes available for your use after a certain period.
How does cash value work?
The portion of your payment that goes toward the policy's cash value is very large in the beginning, but decreases slowly as time goes on. That's because permanent life insurance payments are made up of two parts: the regular insurance premium, which is comparable to the premium amount for the same coverage in a term life policy, and the cash value, or "overpayment" amount. The overpayment money is invested by the insurance company and later used to pay for the higher costs of insurance as you get older. In this way, the company is able to keep your premiums the same instead of increasing them over time. At a certain time, this cash value amount becomes available for your use.
A very common way people use their cash value is by taking out a loan against their policy. This loan draws from the cash value amount and uses the face value (or death benefit) of the policy as collateral, and is usually not subject to credit checks. You don't have to pay it back, but the initial amount, plus interest, will be taken out of your death benefit if you die, resulting in a lower payout. Another consideration is that the loan amount may be taxable if it is worth more than what you have paid in premiums.
Although many insurance agents recommend cash value policies because of the ability to use the cash value portion, their tax-advantaged status, and their retirement and savings features, most people can gain these same advantages with other forms of retirement and savings without the drawbacks and high prices of cash value insurance. Also, remember that there are usually penalties, or "surrender charges" for canceling a cash value policy in its early years.
The cash value component of a policy can work differently and be used for different things depending on the type of permanent life insurance you choose. There are four main variations: whole (or ordinary) life, universal (or adjustable) life, variable life, and variable universal life.
Whole life insurance is a predictable policy that provides a guaranteed benefit, a guaranteed earnings rate on your cash value, and a level premium. You may also earn dividends based on how well the company performs. Whole life is the most basic kind of permanent life insurance.
Universal life insurance is a flexible option that lets you vary your premium payments. After the first premium, you can usually make payments at any time. If you have extra money, you can pay more. If you can't afford to make a payment, you can skip it or pay less. The cash value portion usually operates in a similar manner as with whole life insurance. A problem with universal life is that if you don't make enough payments, or the company does not perform as expected, your policy could lapse. Newer types of universal life policies include guarantees that this will not happen, so be sure that you explore this option. Universal life can be one of the cheapest forms of permanent life insurance.
Variable life insurance allows you to invest your policy premiums. The problem with this is that if the investments perform poorly, the death benefit and cash value will decrease. On the other hand, if the investments perform well, the death benefit and cash value can greatly exceed those of a normal policy. Variable life is one of the most risky forms of permanent insurance, although its rewards can be great as well.
Variable universal life insurance, as its name implies, is a combination of variable and universal life insurance. It allows you to vary your payments, invest your policy premiums, and vary your coverage amount. Variable universal life insurance is the most flexible type of permanent life insurance, and can be either risky or predictable, depending on how you use it.
Making the choice
Most financial planning experts recommend term life insurance in almost all circumstances. You could potentially benefit from a cash value life insurance policy, but it's very likely that you'll overpay for what you get in return. You can receive almost all the retirement and investment benefits of permanent life insurance through traditional means, such as a 401(k) account, IRAs, bonds, etc. Even if you can afford the premiums for cash value insurance, you're probably better off buying the same amount of term life insurance and investing the difference.
If you're still unsure, remember that many term life insurance policies offer a conversion feature. This option will allow you to change the term life policy to a permanent life policy, either during a set period or at any point in the term. Some policies even allow you to credit some of the term premiums you've already paid toward your permanent life insurance policy.
If you're ready to make your decision, remember that term life insurance is a relatively cheap way to get protection for a set period, and is almost always the better choice.
The main difference between the two is that term life insurance covers you relatively inexpensively for a set period, whereas cash value life insurance covers you at a much higher cost for the remainder of your life. Cash value life insurance costs considerably more than term life insurance, depending on age and health, but adds a cash value component of debatable merit.
How do term and cash value life insurance work?
Term life insurance generally offers the most amount of coverage for the least amount of money, and is the appropriate choice for most people. The most common reason to buy life insurance is to replace a person's income in case of early death, and term life insurance is the cheapest and best way to do that. Term life insurance is also an especially good choice for people and families who are just starting out, because it's relatively cheap and provides a lot of protection when replacing income is most important.
Cash value life insurance, also called permanent or whole life insurance, offers protection for your entire life (as long as you pay your premiums) and more flexibility than term life insurance. However, it usually comes at a much higher price. For example, the premium for a cash value policy can easily be 10 or more times higher than a term policy with the same level of coverage. The feature that makes permanent life insurance different is its ability to gain cash value. A portion of the money you pay into your premium goes into a cash value portion that grows over time, and becomes available for your use after a certain period.
How does cash value work?
The portion of your payment that goes toward the policy's cash value is very large in the beginning, but decreases slowly as time goes on. That's because permanent life insurance payments are made up of two parts: the regular insurance premium, which is comparable to the premium amount for the same coverage in a term life policy, and the cash value, or "overpayment" amount. The overpayment money is invested by the insurance company and later used to pay for the higher costs of insurance as you get older. In this way, the company is able to keep your premiums the same instead of increasing them over time. At a certain time, this cash value amount becomes available for your use.
A very common way people use their cash value is by taking out a loan against their policy. This loan draws from the cash value amount and uses the face value (or death benefit) of the policy as collateral, and is usually not subject to credit checks. You don't have to pay it back, but the initial amount, plus interest, will be taken out of your death benefit if you die, resulting in a lower payout. Another consideration is that the loan amount may be taxable if it is worth more than what you have paid in premiums.
Although many insurance agents recommend cash value policies because of the ability to use the cash value portion, their tax-advantaged status, and their retirement and savings features, most people can gain these same advantages with other forms of retirement and savings without the drawbacks and high prices of cash value insurance. Also, remember that there are usually penalties, or "surrender charges" for canceling a cash value policy in its early years.
The cash value component of a policy can work differently and be used for different things depending on the type of permanent life insurance you choose. There are four main variations: whole (or ordinary) life, universal (or adjustable) life, variable life, and variable universal life.
Whole life insurance is a predictable policy that provides a guaranteed benefit, a guaranteed earnings rate on your cash value, and a level premium. You may also earn dividends based on how well the company performs. Whole life is the most basic kind of permanent life insurance.
Universal life insurance is a flexible option that lets you vary your premium payments. After the first premium, you can usually make payments at any time. If you have extra money, you can pay more. If you can't afford to make a payment, you can skip it or pay less. The cash value portion usually operates in a similar manner as with whole life insurance. A problem with universal life is that if you don't make enough payments, or the company does not perform as expected, your policy could lapse. Newer types of universal life policies include guarantees that this will not happen, so be sure that you explore this option. Universal life can be one of the cheapest forms of permanent life insurance.
Variable life insurance allows you to invest your policy premiums. The problem with this is that if the investments perform poorly, the death benefit and cash value will decrease. On the other hand, if the investments perform well, the death benefit and cash value can greatly exceed those of a normal policy. Variable life is one of the most risky forms of permanent insurance, although its rewards can be great as well.
Variable universal life insurance, as its name implies, is a combination of variable and universal life insurance. It allows you to vary your payments, invest your policy premiums, and vary your coverage amount. Variable universal life insurance is the most flexible type of permanent life insurance, and can be either risky or predictable, depending on how you use it.
Making the choice
Most financial planning experts recommend term life insurance in almost all circumstances. You could potentially benefit from a cash value life insurance policy, but it's very likely that you'll overpay for what you get in return. You can receive almost all the retirement and investment benefits of permanent life insurance through traditional means, such as a 401(k) account, IRAs, bonds, etc. Even if you can afford the premiums for cash value insurance, you're probably better off buying the same amount of term life insurance and investing the difference.
If you're still unsure, remember that many term life insurance policies offer a conversion feature. This option will allow you to change the term life policy to a permanent life policy, either during a set period or at any point in the term. Some policies even allow you to credit some of the term premiums you've already paid toward your permanent life insurance policy.
If you're ready to make your decision, remember that term life insurance is a relatively cheap way to get protection for a set period, and is almost always the better choice.
DYNAMIC LIFE AND AUTO INSURANCE : Is Funeral Insurance for You?
Funeral insurance, also called burial or pre-need insurance, refers to a group of products intended to pay for final arrangements. Many people use funeral insurance as a way to ensure their funeral is arranged and paid for in advance, so the burden isn't left to their families or beneficiaries. It can also be used by parents to guarantee funeral funding for their children. The average cost of a funeral in 2007 was $6,500—with total costs reaching over $10,000—so a policy or contract to cover this expense can help provide peace of mind.
Three types of coverage for funeral expenses
There is no standard type of funeral insurance. The term funeral insurance describes any insurance policy or other legal contract purchased with the intent of providing for final expenses. The amount of funeral insurance coverage depends on how much you want final expenses to cost. In most states, the only people licensed to write a burial policy are life insurance agents and funeral directors.
Variations range from traditional whole life insurance to policies or agreements that only cover funeral expenses:
* Life insurance with family member as beneficiary—Many people who already have traditional life insurance simply purchase enough to include funeral expenses. But, if you do not have life insurance, you can purchase life insurance with the intention of using the proceeds to cover funeral expenses. You can name a family member as your beneficiary, and discuss your funeral plan with them.
* Life insurance with funeral director named as beneficiary—A funeral home may include a small whole life policy with a contract for funeral services, with the requirement that the funeral director is the beneficiary of the policy. In this way, you pay for part or all of your funeral expenses using a life insurance policy that you pay for—and the death benefit goes exclusively to the funeral home—not to your family.
* Pre-need contract with funeral home—A pre-need contract often covers the burial plot, grave marker, casket or urn, embalming or cremation, flowers and funeral cars. Some policies may not specify what the death benefit can be used for. In that case, the money can be used however the beneficiary decides.
Paying for funeral insurance
Depending on the type of policy or contract you buy, you may either have one, lump-sum payment, or continuing monthly payments. A contract with a funeral home will most likely include a payment plan.
Your coverage may determine what kind of payment schedule you have:
* Single-premium policy—Once you make the lump-sum payment, you have immediate coverage for the full death benefit. If you are over 70, you may only be offered a single-premium payment option.
* Graded death benefit—This means the coverage amount increases over time. If you choose a five-year payment policy, you may have a death benefit that is 30 percent of the face amount in the first year, 70 percent the next year, and 100 percent thereafter.
* Traditional whole life policy—The coverage amount stays the same as long as you pay the premiums, but coverage ends if you stop paying.
Tips for considering funeral insurance
* Determine whether you have life insurance or other savings that may be used for funeral expenses. Don't buy coverage that's not essential.
* Review your state's laws on pre-need insurance before you meet with a planner at a funeral home.
* Discuss a burial policy with your family and lawyer.
* Research different companies and options.
* Remember that insurance policies have a "free-look" period. This 30 to 60 day time period entitles you to review your policy and cancel it without penalty if you don't approve.
When you're ready to purchase
* Get all agreements in writing.
* Verify all licenses (insurance company and agent/funeral director).
* Be sure all documents are filled out in your presence. Never sign anything that has been altered or created without your consent.
* Ask your funeral director if they offer price guarantees, and if they don't, find out what their policy is.
* Be sure you have (in writing) that the services, arrangements and products that were sold to you or that you are agreeing upon are included in your pre-need plan.
* Check if funeral arrangements can be moved at any time to any funeral home—in case you move after buying your pre-need insurance.
* Find out if there is a policy cancellation fee or if you can be refunded for services and products if you do decide to cancel.
Use caution
Many states have given consumers added protection by creating laws that give them additional rights when it comes to pre-paying for funeral expenses. Some states ban the sale of some types of burial insurance policies, because many policyholders paid more in premiums than they got back in their death benefit. Others states created protections which prohibit checks to purchase burial insurance to be made out to the funeral home—they must be made out to the life insurance company. Some states specify that payments made ahead of time for pre-need contracts are placed into a fund which becomes your property and must be available to you at any time. Your state department of insurance is the best resource for local laws.
It is important to keep in mind that states felt the need to implement these protections because of significant problems with some types of pre-need contracts. For example, an irrevocable assignment transfers ownership of your contract to the funeral director, which means you cannot withdraw any payments you have made on this contract. Similarly, if you name the funeral director as the beneficiary of a life insurance policy for funeral benefits, the director is the only person authorized to spend the proceeds of your policy. Always be sure you understand the terms of the policy, and weigh the costs against the policy coverage.
Three types of coverage for funeral expenses
There is no standard type of funeral insurance. The term funeral insurance describes any insurance policy or other legal contract purchased with the intent of providing for final expenses. The amount of funeral insurance coverage depends on how much you want final expenses to cost. In most states, the only people licensed to write a burial policy are life insurance agents and funeral directors.
Variations range from traditional whole life insurance to policies or agreements that only cover funeral expenses:
* Life insurance with family member as beneficiary—Many people who already have traditional life insurance simply purchase enough to include funeral expenses. But, if you do not have life insurance, you can purchase life insurance with the intention of using the proceeds to cover funeral expenses. You can name a family member as your beneficiary, and discuss your funeral plan with them.
* Life insurance with funeral director named as beneficiary—A funeral home may include a small whole life policy with a contract for funeral services, with the requirement that the funeral director is the beneficiary of the policy. In this way, you pay for part or all of your funeral expenses using a life insurance policy that you pay for—and the death benefit goes exclusively to the funeral home—not to your family.
* Pre-need contract with funeral home—A pre-need contract often covers the burial plot, grave marker, casket or urn, embalming or cremation, flowers and funeral cars. Some policies may not specify what the death benefit can be used for. In that case, the money can be used however the beneficiary decides.
Paying for funeral insurance
Depending on the type of policy or contract you buy, you may either have one, lump-sum payment, or continuing monthly payments. A contract with a funeral home will most likely include a payment plan.
Your coverage may determine what kind of payment schedule you have:
* Single-premium policy—Once you make the lump-sum payment, you have immediate coverage for the full death benefit. If you are over 70, you may only be offered a single-premium payment option.
* Graded death benefit—This means the coverage amount increases over time. If you choose a five-year payment policy, you may have a death benefit that is 30 percent of the face amount in the first year, 70 percent the next year, and 100 percent thereafter.
* Traditional whole life policy—The coverage amount stays the same as long as you pay the premiums, but coverage ends if you stop paying.
Tips for considering funeral insurance
* Determine whether you have life insurance or other savings that may be used for funeral expenses. Don't buy coverage that's not essential.
* Review your state's laws on pre-need insurance before you meet with a planner at a funeral home.
* Discuss a burial policy with your family and lawyer.
* Research different companies and options.
* Remember that insurance policies have a "free-look" period. This 30 to 60 day time period entitles you to review your policy and cancel it without penalty if you don't approve.
When you're ready to purchase
* Get all agreements in writing.
* Verify all licenses (insurance company and agent/funeral director).
* Be sure all documents are filled out in your presence. Never sign anything that has been altered or created without your consent.
* Ask your funeral director if they offer price guarantees, and if they don't, find out what their policy is.
* Be sure you have (in writing) that the services, arrangements and products that were sold to you or that you are agreeing upon are included in your pre-need plan.
* Check if funeral arrangements can be moved at any time to any funeral home—in case you move after buying your pre-need insurance.
* Find out if there is a policy cancellation fee or if you can be refunded for services and products if you do decide to cancel.
Use caution
Many states have given consumers added protection by creating laws that give them additional rights when it comes to pre-paying for funeral expenses. Some states ban the sale of some types of burial insurance policies, because many policyholders paid more in premiums than they got back in their death benefit. Others states created protections which prohibit checks to purchase burial insurance to be made out to the funeral home—they must be made out to the life insurance company. Some states specify that payments made ahead of time for pre-need contracts are placed into a fund which becomes your property and must be available to you at any time. Your state department of insurance is the best resource for local laws.
It is important to keep in mind that states felt the need to implement these protections because of significant problems with some types of pre-need contracts. For example, an irrevocable assignment transfers ownership of your contract to the funeral director, which means you cannot withdraw any payments you have made on this contract. Similarly, if you name the funeral director as the beneficiary of a life insurance policy for funeral benefits, the director is the only person authorized to spend the proceeds of your policy. Always be sure you understand the terms of the policy, and weigh the costs against the policy coverage.
DYNAMIC LIFE AND AUTO INSURANCE : Love, Marriage, and Insurance
Getting married is more than a union of lives and souls. It's also a union of financial responsibilities! Insurance needs are going to change when you get married, so make sure that you review your policies and get the most of out of your insurance—after all, it's an important part of protecting your new life together.
Car Insurance
Make sure to inform your auto insurance company or agent that you are married, because many auto insurance companies offer discounted rates for married couples. You may want to get quotes from both of your companies—and maybe some new ones when you're ready to merge your coverage. A multi-car policy could start saving you money right away—and check for other discounts like a low-mileage discount, if you carpool. Lastly, if you and your spouse will be driving each other's cars before you combine your coverage onto one policy, makes sure there's coverage for each of you as a permissive operator. You agent can help with that one.
Life Insurance
Life insurance might be the next thing to consider as you start your life together. Life insurance helps your spouse financially in the event of your death by covering debts you may have incurred, and is equally important to have if you are considering having children or even buying a new home. Discuss how much life insurance you need as a couple today, and make sure to regularly review your needs. Even if buying a life policy isn't in this year's budget, you can learn about the different types of life insurance for the future.
Health Insurance
Evaluate your health insurance plans, and decide if it's going to be better to keep individual plans, or make a change. For example, if you have a good employer-sponsored health insurance plan, it may be more cost effective to move your spouse over to your plan (or vice versa). You'll need to consider long-term plans as well as your immediate needs, if you're planning on starting a family. If you're a student, there are often health plans available on campus. And, if you have no coverage at all, you may want to consider a high deductible plan—just to have coverage for a major event.
Additional Homeowners Coverage
If you've just moved in together, or bought a new house, you'll quickly discover that you have a lot more stuff than before—and that doesn't even include wedding gifts, new furniture or wedding rings. Make sure that all your belongings are covered under your homeowners policy, and if you need to get additional coverage, don't delay too long.
It's important to note that homeowners insurance and renter's insurance, though they do protect the physical structure of your home and its possessions, they don't always cover jewelry or other expensive "one-off" items. Your homeowners insurance agent or insurance company, will be able to determine what kind of insurance coverage is best for your valuables, and may determine if a rider is needed on your homeowners policy to cover your valuables, such as jewelry.
Another factor you should discuss with your homeowners insurance agent when applying for your rider policy is whether the extension provides "actual cash value" or "replacement cost coverage." Though replacement cost coverage is more expensive than actual cash value, it provides more coverage because actual cash value factors in depreciation for the item. This means you will only be paid back what the item was worth at the time it was stolen or damaged, not the price you initially paid for it.
Car Insurance
Make sure to inform your auto insurance company or agent that you are married, because many auto insurance companies offer discounted rates for married couples. You may want to get quotes from both of your companies—and maybe some new ones when you're ready to merge your coverage. A multi-car policy could start saving you money right away—and check for other discounts like a low-mileage discount, if you carpool. Lastly, if you and your spouse will be driving each other's cars before you combine your coverage onto one policy, makes sure there's coverage for each of you as a permissive operator. You agent can help with that one.
Life Insurance
Life insurance might be the next thing to consider as you start your life together. Life insurance helps your spouse financially in the event of your death by covering debts you may have incurred, and is equally important to have if you are considering having children or even buying a new home. Discuss how much life insurance you need as a couple today, and make sure to regularly review your needs. Even if buying a life policy isn't in this year's budget, you can learn about the different types of life insurance for the future.
Health Insurance
Evaluate your health insurance plans, and decide if it's going to be better to keep individual plans, or make a change. For example, if you have a good employer-sponsored health insurance plan, it may be more cost effective to move your spouse over to your plan (or vice versa). You'll need to consider long-term plans as well as your immediate needs, if you're planning on starting a family. If you're a student, there are often health plans available on campus. And, if you have no coverage at all, you may want to consider a high deductible plan—just to have coverage for a major event.
Additional Homeowners Coverage
If you've just moved in together, or bought a new house, you'll quickly discover that you have a lot more stuff than before—and that doesn't even include wedding gifts, new furniture or wedding rings. Make sure that all your belongings are covered under your homeowners policy, and if you need to get additional coverage, don't delay too long.
It's important to note that homeowners insurance and renter's insurance, though they do protect the physical structure of your home and its possessions, they don't always cover jewelry or other expensive "one-off" items. Your homeowners insurance agent or insurance company, will be able to determine what kind of insurance coverage is best for your valuables, and may determine if a rider is needed on your homeowners policy to cover your valuables, such as jewelry.
Another factor you should discuss with your homeowners insurance agent when applying for your rider policy is whether the extension provides "actual cash value" or "replacement cost coverage." Though replacement cost coverage is more expensive than actual cash value, it provides more coverage because actual cash value factors in depreciation for the item. This means you will only be paid back what the item was worth at the time it was stolen or damaged, not the price you initially paid for it.
DYNAMIC LIFE AND AUTO INSURANCE : Mortgage Protection Insurance Offers Limited Benefits
Mortgage protection insurance refers to a type of decreasing term life insurance policy where you pay a non-changing premium for the duration of your mortgage. If you die while the policy is in effect, the insurance pays off your mortgage. The lender can become the beneficiary of the policy if the borrower paying for the policy defaults on the loan.
Mortgage protection insurance cost factors
If the outstanding balance of your mortgage is high, your premium will be high as well, and your premium will remain the same even as the balance decreases. This is because you are more likely to die as time goes on, increasing the likelihood that your life insurance company will have to pay on your policy.
Mortgage protection insurance can be purchased either at the same time you buy a home, or at any time in the future. As with other types of life insurance, your age, smoking status and value of your death benefit (the amount left on your mortgage) are taken into account when a life insurance company reviews your application and sets a price.
Mortgage insurance options
Mortgage protection insurance policies will only pay the balance of your mortgage at the time of your death (or maybe a little more if you paid ahead on your mortgage). If you want to give your beneficiaries a choice of how to use the insurance money, consider level term life insurance instead. A regular decreasing term life policy—one not marketed as a "mortgage protection" policy—can be used for the same purpose, and may also cost less.
Depending on your insurance company, joint mortgage protection insurance may be available that covers both you and your spouse and pays out when either of you die.
If you refinance, see if a new policy will get you a better premium. If you default on your mortgage, check with your life insurance company and see if they will extend your coverage.
Mortgage protection insurance and private mortgage insurance
Though they have similar names, these two types of insurance are not related. Private mortgage insurance (PMI) is typically required by the lender when you purchase a house and make a down payment of less than 20%. "Lenders take a risk when a buyer puts down less than 20%," says Sam Belden, Vice President at Insurance.com. "Private Mortgage Insurance is a way for lenders to protect themselves if a buyer didn't put much down and ends up in foreclosure."
Although PMI makes it easier for you to get a loan and can help you get a house without waiting to build up savings, it pays the lender, not you. It does not reduce the amount of money you owe the lender. It is not a substitute for life insurance or mortgage protection insurance, which will pay off all or most of your mortgage in the event of your death.
Mortgage protection insurance cost factors
If the outstanding balance of your mortgage is high, your premium will be high as well, and your premium will remain the same even as the balance decreases. This is because you are more likely to die as time goes on, increasing the likelihood that your life insurance company will have to pay on your policy.
Mortgage protection insurance can be purchased either at the same time you buy a home, or at any time in the future. As with other types of life insurance, your age, smoking status and value of your death benefit (the amount left on your mortgage) are taken into account when a life insurance company reviews your application and sets a price.
Mortgage insurance options
Mortgage protection insurance policies will only pay the balance of your mortgage at the time of your death (or maybe a little more if you paid ahead on your mortgage). If you want to give your beneficiaries a choice of how to use the insurance money, consider level term life insurance instead. A regular decreasing term life policy—one not marketed as a "mortgage protection" policy—can be used for the same purpose, and may also cost less.
Depending on your insurance company, joint mortgage protection insurance may be available that covers both you and your spouse and pays out when either of you die.
If you refinance, see if a new policy will get you a better premium. If you default on your mortgage, check with your life insurance company and see if they will extend your coverage.
Mortgage protection insurance and private mortgage insurance
Though they have similar names, these two types of insurance are not related. Private mortgage insurance (PMI) is typically required by the lender when you purchase a house and make a down payment of less than 20%. "Lenders take a risk when a buyer puts down less than 20%," says Sam Belden, Vice President at Insurance.com. "Private Mortgage Insurance is a way for lenders to protect themselves if a buyer didn't put much down and ends up in foreclosure."
Although PMI makes it easier for you to get a loan and can help you get a house without waiting to build up savings, it pays the lender, not you. It does not reduce the amount of money you owe the lender. It is not a substitute for life insurance or mortgage protection insurance, which will pay off all or most of your mortgage in the event of your death.
DYNAMIC LIFE AND AUTO INSURANCE : Talking to Your Parents About Insurance
Are your parents adequately protected against financial loss? What if your parents' home burns down and there is insufficient insurance to cover the entire loss—can they come live with you? What if one of your parents is held liable for someone's injuries, but does not have liability insurance—will he or she be financially ruined? What if a parent becomes seriously ill and needs long-term care—will he or she have the financial resources to pay for care? What if one of your parents dies unexpectedly—will the surviving parent have enough money?
If you're a member of the baby-boom generation, your parents may be of an age where these concerns may be troubling you. The only way to get the answers and ease your worries is to have a heart-to-heart talk with your mother and father. This may not be easy for some people, but if you shy away from this topic, the consequences could be devastating. Your parents were there to talk to you about the tough issues—now you need to be there for them. How you choose to approach them will depend on the type of relationship you share (e.g. adversarial, open and warm). Here are some tips on how to break the ice:
Prepare for resistance
Your parents may find inquiries regarding insurance intrusive, regardless of the fact that you're trying to help. They may feel it's none of your business, or that it's demeaning for you to assume they haven't made the proper arrangements. Be prepared to explain that you're simply concerned about their well-being and don't mean to be nosy or presumptuous.
Keep it private
A discussion about insurance involves issues that are personal. Broaching the subject in a restaurant or other public setting is inappropriate. Keep the conversation private, and choose a setting where your parents feel comfortable—at their own kitchen table over a cup of coffee, for instance. Also, don't rush the conversation. Even though you shouldn't expect to finish or resolve anything during the initial exchange, be sure you've set aside enough time to comfortably address everyone's concerns.
There's safety in numbers
If you have siblings, encourage a group discussion. If your parents see that all of you feel the same, they may be more open to speaking freely and considering your advice. If that's not possible, at least talk to your siblings about your parents' situation. Of course, if you have a sibling who is particularly good at rubbing your parents the wrong way, then perhaps you will want to exclude him or her from the discussion.
Be direct
Sometimes, the best approach is to put all your cards on the table from the get-go. If this is an option for you, find the right time and place, then just say, "Mom and Dad, we need to talk..."
The "I have a friend" approach
If a more subtle method is to your liking, you might describe an experience (real or hypothetical) that illustrates the consequences of not being adequately insured. For example, you could say something like: "Joe's father went into a nursing home a few years ago. His father didn't have long-term care insurance, so now Joe has to sell his father's house."
Discuss your own plans
Another indirect strategy is to talk about your own insurance needs or plans. Once the discussion is under way, you can steer the subject in the direction of your parents' insurance needs.
Ask for their advice
Parents are used to giving advice to their kids, not getting it from them. Start by asking them what they think you should do about a particular insurance issue. For example, you might ask if they think you should increase your life insurance now that a grandchild has been born, or drop the collision coverage on your 10-year-old car. From there, you can divert the topic to their own insurance needs.
Ask a simple question
Another "lead-in" approach involves asking a seemingly innocent question, such as: "Who is your insurance agent?" or "do you keep your insurance policies in case of an emergency?" Whatever answer your parents give will be an opening for you to ask other questions that are on your mind.
Bring in the big guns
Perhaps not during the first discussion, but at some point in time you may want to make an appointment with your (or your parents') insurance agent for an evaluation of your parents' insurance situation and needs.
Be patient
Realize that this process takes time. Your parents may need to think things over, and it may take several discussion sessions to work out all the details.
Follow your parents' wishes
Finally, remember that just because your parents have agreed to let you help doesn't mean that you can take charge and do things your own way. You should act only when and how your parents want you to.
Issues to talk about
Once you have successfully begun a dialog with your parents about insurance, make sure you cover all the pertinent issues. Here are some you should not miss:
* What policies do they currently have?
* Do they have policies they no longer need?
* Do they need policies they don't have?
* What are the details of their current policies?
* Do their current policies provide adequate coverage? Too much coverage?
* How much can they afford to pay for premiums?
* If there are beneficiaries, are the proper persons named? Have the proper designation forms been completed?
* Who should be responsible for paying the premiums, you or your parents?
* Where are the policies kept?
* Who is their insurance agent?
In addition, make sure you address each type of insurance that may be important for your parents, which may include:
* Health insurance
* Long-term care insurance
* Life insurance
* Homeowners insurance
* Auto insurance
* Disability insurance (though this may not be important unless your parents have job earnings to replace)
If you're a member of the baby-boom generation, your parents may be of an age where these concerns may be troubling you. The only way to get the answers and ease your worries is to have a heart-to-heart talk with your mother and father. This may not be easy for some people, but if you shy away from this topic, the consequences could be devastating. Your parents were there to talk to you about the tough issues—now you need to be there for them. How you choose to approach them will depend on the type of relationship you share (e.g. adversarial, open and warm). Here are some tips on how to break the ice:
Prepare for resistance
Your parents may find inquiries regarding insurance intrusive, regardless of the fact that you're trying to help. They may feel it's none of your business, or that it's demeaning for you to assume they haven't made the proper arrangements. Be prepared to explain that you're simply concerned about their well-being and don't mean to be nosy or presumptuous.
Keep it private
A discussion about insurance involves issues that are personal. Broaching the subject in a restaurant or other public setting is inappropriate. Keep the conversation private, and choose a setting where your parents feel comfortable—at their own kitchen table over a cup of coffee, for instance. Also, don't rush the conversation. Even though you shouldn't expect to finish or resolve anything during the initial exchange, be sure you've set aside enough time to comfortably address everyone's concerns.
There's safety in numbers
If you have siblings, encourage a group discussion. If your parents see that all of you feel the same, they may be more open to speaking freely and considering your advice. If that's not possible, at least talk to your siblings about your parents' situation. Of course, if you have a sibling who is particularly good at rubbing your parents the wrong way, then perhaps you will want to exclude him or her from the discussion.
Be direct
Sometimes, the best approach is to put all your cards on the table from the get-go. If this is an option for you, find the right time and place, then just say, "Mom and Dad, we need to talk..."
The "I have a friend" approach
If a more subtle method is to your liking, you might describe an experience (real or hypothetical) that illustrates the consequences of not being adequately insured. For example, you could say something like: "Joe's father went into a nursing home a few years ago. His father didn't have long-term care insurance, so now Joe has to sell his father's house."
Discuss your own plans
Another indirect strategy is to talk about your own insurance needs or plans. Once the discussion is under way, you can steer the subject in the direction of your parents' insurance needs.
Ask for their advice
Parents are used to giving advice to their kids, not getting it from them. Start by asking them what they think you should do about a particular insurance issue. For example, you might ask if they think you should increase your life insurance now that a grandchild has been born, or drop the collision coverage on your 10-year-old car. From there, you can divert the topic to their own insurance needs.
Ask a simple question
Another "lead-in" approach involves asking a seemingly innocent question, such as: "Who is your insurance agent?" or "do you keep your insurance policies in case of an emergency?" Whatever answer your parents give will be an opening for you to ask other questions that are on your mind.
Bring in the big guns
Perhaps not during the first discussion, but at some point in time you may want to make an appointment with your (or your parents') insurance agent for an evaluation of your parents' insurance situation and needs.
Be patient
Realize that this process takes time. Your parents may need to think things over, and it may take several discussion sessions to work out all the details.
Follow your parents' wishes
Finally, remember that just because your parents have agreed to let you help doesn't mean that you can take charge and do things your own way. You should act only when and how your parents want you to.
Issues to talk about
Once you have successfully begun a dialog with your parents about insurance, make sure you cover all the pertinent issues. Here are some you should not miss:
* What policies do they currently have?
* Do they have policies they no longer need?
* Do they need policies they don't have?
* What are the details of their current policies?
* Do their current policies provide adequate coverage? Too much coverage?
* How much can they afford to pay for premiums?
* If there are beneficiaries, are the proper persons named? Have the proper designation forms been completed?
* Who should be responsible for paying the premiums, you or your parents?
* Where are the policies kept?
* Who is their insurance agent?
In addition, make sure you address each type of insurance that may be important for your parents, which may include:
* Health insurance
* Long-term care insurance
* Life insurance
* Homeowners insurance
* Auto insurance
* Disability insurance (though this may not be important unless your parents have job earnings to replace)
DYNAMIC LIFE AND AUTO INSURANCE : Getting Life Insurance with a History of Medical Problems
Life insurance is an important policy to have but if you’ve had medical problems or are taking prescription drugs, you might find it much more difficult to find an insurance policy. When you do find one, you may be surprised to find the premium rates are much higher of “healthy” life insurance policies. It doesn’t have to be this way. Getting life insurance with a history of medical problems doesn’t have to cost an arm and a leg, and doesn’t have to be a hassle.
Mental and Emotional Issues
Tell a life insurer that you’ve taken Zoloft, Prozac or another anti-depressant or anti-anxiety medication and you might be short-listed for the “Deny” stamp. To prevent eminent denial, ask your primary care physician to write a note that you have been completely released from care of depression and/or anxiety and that you are functioning well without medication.
If your depression and/or anxiety were brought on by a life event, like a death in the family or post-partum, it is important to note the significance, and briefness, of the illness and medication. It is not uncommon for insurers to ask for a copy of related medical records as proof. Don’t be afraid of this, insurance agents must evaluate the risk of reoccurrence of potentially life-threatening or life-altering illnesses.
Some long-term or more serious mental illnesses, like bipolar disorders or manic depression, won’t necessarily get your application denied, either. Again, documentation is key to being offered reasonable life insurance premium rates. Speak with your doctor and ask for assistance proving the effectiveness of your treatment and a statement that your disorder is well under control.
Major mental health disorders, especially those known to cause delusions and suicidal behaviors, may raise more red flags than minor mental or emotional disorders. It is not uncommon for life insurers to require at least two years after the last suicide attempt or lapse in treatment to approve the application. There may also be numerous clauses regarding suicide in the plan.
Physical Issues
If you’ve had heart or lung problems or have been diagnosed with a disease or disorder that can be terminal or contribute to a shortened life span, you might find it more difficult than “healthy” applicant to find life insurance. A health history, including results of any medical tests from the past decade, should be provided to the insurance company when you apply.
Some insurers will require a physical examination, especially in the case of an abnormal medical history. If you’d like to prove your case even further, you may opt to subject yourself to genetic testing or even gene therapy. Be aware, however, that even after taking all of these steps, the insurer may require a clause negating any coverage if you die from the preexisting or known condition.
Omission
You may be tempted to just leave out the truth of your conditions. Before you do, you should know that doing so could result in your policy being canceled without a refund of premiums paid.
Mental and Emotional Issues
Tell a life insurer that you’ve taken Zoloft, Prozac or another anti-depressant or anti-anxiety medication and you might be short-listed for the “Deny” stamp. To prevent eminent denial, ask your primary care physician to write a note that you have been completely released from care of depression and/or anxiety and that you are functioning well without medication.
If your depression and/or anxiety were brought on by a life event, like a death in the family or post-partum, it is important to note the significance, and briefness, of the illness and medication. It is not uncommon for insurers to ask for a copy of related medical records as proof. Don’t be afraid of this, insurance agents must evaluate the risk of reoccurrence of potentially life-threatening or life-altering illnesses.
Some long-term or more serious mental illnesses, like bipolar disorders or manic depression, won’t necessarily get your application denied, either. Again, documentation is key to being offered reasonable life insurance premium rates. Speak with your doctor and ask for assistance proving the effectiveness of your treatment and a statement that your disorder is well under control.
Major mental health disorders, especially those known to cause delusions and suicidal behaviors, may raise more red flags than minor mental or emotional disorders. It is not uncommon for life insurers to require at least two years after the last suicide attempt or lapse in treatment to approve the application. There may also be numerous clauses regarding suicide in the plan.
Physical Issues
If you’ve had heart or lung problems or have been diagnosed with a disease or disorder that can be terminal or contribute to a shortened life span, you might find it more difficult than “healthy” applicant to find life insurance. A health history, including results of any medical tests from the past decade, should be provided to the insurance company when you apply.
Some insurers will require a physical examination, especially in the case of an abnormal medical history. If you’d like to prove your case even further, you may opt to subject yourself to genetic testing or even gene therapy. Be aware, however, that even after taking all of these steps, the insurer may require a clause negating any coverage if you die from the preexisting or known condition.
Omission
You may be tempted to just leave out the truth of your conditions. Before you do, you should know that doing so could result in your policy being canceled without a refund of premiums paid.
DYNAMIC LIFE AND AUTO INSURANCE : Child Life Insurance
The death of a child isn't something parents want to think about. But life insurance isn't necessarily all about death. Child life insurance is about the future and preparation. Taking steps today can help create a better tomorrow. And as parents or grandparents, our chief concern is making the future better for our children.
How Does Child Life Insurance Help a Child?
Right now, when a child is young, strong, and healthy, life insurance is obtainable at a minimum cost. But if a child develops a problem like a chronic disease, life insurance can be almost impossible to obtain. So signing up for a low premium term life insurance policy now, with a guaranteed periodic purchase option, will make it possible for them to have life insurance as adults.
Another possibility for them is to purchase a whole life insurance policy, which will last for the rest of their lives. Their age and health status won't make any difference, nor will it matter if they serve in the military or have dangerous occupation hazards.
Such child life insurance is perfect for planning for the future because of the cash value the plan would accumulate. As an adult, they could borrow against this value or stop the policy and withdraw the money (to pay for college or any number of things).
Who Can Purchase a Child Life Insurance Policy?
Parents, grandparents, and legal guardians can all purchase child life insurance policies. New parents often have heavy financial burdens during the first few years of a child's life, and buying insurance is difficult. So grandparents (who might be more financially stable) purchase insurance for their grandchildren.
When Does Coverage Start for a Child Life Insurance Policy?
When you start a life insurance policy for a child, the coverage begins immediately. There are no necessary medical exams to go through,just a few health related questions on the application is generally enough to get a child qualified.
The rates for child life insurance vary. Whole life rates stay the same. Term life rates depend on the policy, how old the child is, and several other factors. Policy renewal agreements can vary also, so make sure it's spelled out before signing up for term policies. Some times you can purchase a term policy and then switch it to whole life at the end of the policy's period.
Child life insurance policies can last as long as you wish to sign for. Again, whole life policies for children don't ever end, while term policies are defined before you purchase it.
Who Receives the Benefits?
In child life insurance policies, the parents or legal guardians are the beneficiaries. But the one who benefits the most is the child. He or she benefits from the security of a life insurance policy that will continue even if he or she is diagnosed with a life threatening disease. Secure your children's future now with child life insurance. It's good for them, it's good for you
Talk to your Insurance Agent to ensure Child Life Insurance is right for you!
How Does Child Life Insurance Help a Child?
Right now, when a child is young, strong, and healthy, life insurance is obtainable at a minimum cost. But if a child develops a problem like a chronic disease, life insurance can be almost impossible to obtain. So signing up for a low premium term life insurance policy now, with a guaranteed periodic purchase option, will make it possible for them to have life insurance as adults.
Another possibility for them is to purchase a whole life insurance policy, which will last for the rest of their lives. Their age and health status won't make any difference, nor will it matter if they serve in the military or have dangerous occupation hazards.
Such child life insurance is perfect for planning for the future because of the cash value the plan would accumulate. As an adult, they could borrow against this value or stop the policy and withdraw the money (to pay for college or any number of things).
Who Can Purchase a Child Life Insurance Policy?
Parents, grandparents, and legal guardians can all purchase child life insurance policies. New parents often have heavy financial burdens during the first few years of a child's life, and buying insurance is difficult. So grandparents (who might be more financially stable) purchase insurance for their grandchildren.
When Does Coverage Start for a Child Life Insurance Policy?
When you start a life insurance policy for a child, the coverage begins immediately. There are no necessary medical exams to go through,just a few health related questions on the application is generally enough to get a child qualified.
The rates for child life insurance vary. Whole life rates stay the same. Term life rates depend on the policy, how old the child is, and several other factors. Policy renewal agreements can vary also, so make sure it's spelled out before signing up for term policies. Some times you can purchase a term policy and then switch it to whole life at the end of the policy's period.
Child life insurance policies can last as long as you wish to sign for. Again, whole life policies for children don't ever end, while term policies are defined before you purchase it.
Who Receives the Benefits?
In child life insurance policies, the parents or legal guardians are the beneficiaries. But the one who benefits the most is the child. He or she benefits from the security of a life insurance policy that will continue even if he or she is diagnosed with a life threatening disease. Secure your children's future now with child life insurance. It's good for them, it's good for you
Talk to your Insurance Agent to ensure Child Life Insurance is right for you!
DYNAMIC LIFE AND AUTO INSURANCE : Group Life Insurance
Does your company offer group life insurance? If not, you might be ignoring one of the most cost effective ways to make your benefits package more attractive to potential and current employees.
Is Group Life Insurance Important
Today's employees expect more than a salary from their employees. In a recent survey by Wall Street Journal, participants were asked if they would rather: have no pay increase but retain current benefits, or get a raise and see benefits decrease. Fifty six percent of respondents said they would rather keep their benefits. This illustrates how important it is for employers to offer a competitive benefits package, aside from a decent salary.
Among the many benefits an employee can offer, group life insurance serves as an excellent way to attract new employees. It also increases the morale of current employees and creates loyalty within the company.
Who Will Group Life Insurance Cover
Group life insurance policies can apply to any existing or new employees and associates. And most policies can offer extra benefits that employees can opt for at a discounted rate if they want to pay for the added expense. This makes it easy for employers to offer more than one plan, but still only pay a minimum for premiums.
How Does Group Life Insurance Costs Compare to Individual Life Insurance
Group life insurance is often cheaper than individual life insurance for several reasons. First of all, it's a form of collective bargaining - it's buying in bulk. So you're getting bulk rates, and everything is cheaper in bulk. It involves less paper work for the agents and less time selling to each individual. These are the incentives for insurance companies to give lower rates on group life policies.
Employers especially benefit from group life insurance in a unique way. There's no mandatory medical exams in order to be qualified. For some, this is the difference between being able to obtain insurance and not being able to. Chronic diseases make getting life insurance difficult. The fact that they can obtain life insurance through your company could be enough of a reason to persuade hard working employees to stay in their positions.
What other Benefits does Group Life Insurance Offer
* Since group life insurance is part of the wages you pay, it's tax deductible. If you're going to use a tax write-off, it may as well do something for you. Adding benefits to employee packages increases morale and, consequently, work productivity.
* Many plans offer a Waive of Premium benefit. If an employee is totally disabled, he or she can continue group life insurance coverage without paying the premiums. This (again) is a tangible sign of appreciation for your employees.
* You can customize group life insurance policies to fit your company needs. Many plans offer customization to fit specific employees (per salary, years with the company, etc.)
Your company's benefits package is the main attraction to the work force. Adding to it will attract a better working class, and help you retain your hardest workers. Take steps now to add group life insurance to your benefits package.
Talk to your Insurance Agent to ensure Group Life Insurance is right for you!
Is Group Life Insurance Important
Today's employees expect more than a salary from their employees. In a recent survey by Wall Street Journal, participants were asked if they would rather: have no pay increase but retain current benefits, or get a raise and see benefits decrease. Fifty six percent of respondents said they would rather keep their benefits. This illustrates how important it is for employers to offer a competitive benefits package, aside from a decent salary.
Among the many benefits an employee can offer, group life insurance serves as an excellent way to attract new employees. It also increases the morale of current employees and creates loyalty within the company.
Who Will Group Life Insurance Cover
Group life insurance policies can apply to any existing or new employees and associates. And most policies can offer extra benefits that employees can opt for at a discounted rate if they want to pay for the added expense. This makes it easy for employers to offer more than one plan, but still only pay a minimum for premiums.
How Does Group Life Insurance Costs Compare to Individual Life Insurance
Group life insurance is often cheaper than individual life insurance for several reasons. First of all, it's a form of collective bargaining - it's buying in bulk. So you're getting bulk rates, and everything is cheaper in bulk. It involves less paper work for the agents and less time selling to each individual. These are the incentives for insurance companies to give lower rates on group life policies.
Employers especially benefit from group life insurance in a unique way. There's no mandatory medical exams in order to be qualified. For some, this is the difference between being able to obtain insurance and not being able to. Chronic diseases make getting life insurance difficult. The fact that they can obtain life insurance through your company could be enough of a reason to persuade hard working employees to stay in their positions.
What other Benefits does Group Life Insurance Offer
* Since group life insurance is part of the wages you pay, it's tax deductible. If you're going to use a tax write-off, it may as well do something for you. Adding benefits to employee packages increases morale and, consequently, work productivity.
* Many plans offer a Waive of Premium benefit. If an employee is totally disabled, he or she can continue group life insurance coverage without paying the premiums. This (again) is a tangible sign of appreciation for your employees.
* You can customize group life insurance policies to fit your company needs. Many plans offer customization to fit specific employees (per salary, years with the company, etc.)
Your company's benefits package is the main attraction to the work force. Adding to it will attract a better working class, and help you retain your hardest workers. Take steps now to add group life insurance to your benefits package.
Talk to your Insurance Agent to ensure Group Life Insurance is right for you!
DYNAMIC LIFE AND AUTO INSURANCE : Guaranteed Issue Life Insurance
When Your Medical History Doesn't Look So Good
Guaranteed issue life insurance is a policy that's guaranteed to anyone... without regard to health conditions. You might think this sounds awfully risky for the insurance companies. They get around it in two ways.
Guaranteed Issue Life Insurance
First of all, guaranteed issue life insurance policies have "graded benefits". This means that if the insured person dies within a specified amount of time, the beneficiaries only receive a portion (or none, in the case of contestable periods) of the death benefits. Most guaranteed issue life insurance policies only pay full benefits after the first two years of the policy. So if John Doe purchases a guaranteed life insurance policy in 2006, and dies of cancer in 2007, the beneficiaries will only get a portion (or none) of the benefit.
Another way companies make money off guaranteed issue life insurance is by charging more for the premiums. They also set age limits on the policies (typically, they won't insure someone over seventy years old.)
What Kind of Insurance is Guaranteed Issue Life Insurance
It's a whole life insurance policy, but the premiums are higher because no-one can be turned down. This means that guaranteed life insurance policies accrue a cash value over time (usually after the first couple of years). A portion of the premiums pay the cost of insurance, while the rest builds the cash value.
And since it's a permanent life insurance, the premiums do not change, nor does the death benefit. As long as the premiums are paid, guaranteed issue life insurance is good for as long as you live.
Are There Exceptions to the Graded Benefits with Guaranteed Issue Life Insurance
Most policies will still pay the full amount of death benefits if the insured dies in an accident. But this is generally the only reason. In other words, if you find out you've only got three months to live, guaranteed issue life insurance won't help you.
What Else Should I Know About Guaranteed Issue Life Insurance
Since the policies are open to anyone, guaranteed issue life insurance doesn't require a medical exam or even a medical history. The questions asked are very general, like name, age, address, etc.
Most guaranteed issue life insurance policies have a limited death benefit amount (you'll have a hard time finding a policy for more than $50,000). Guaranteed issue life insurance policies are most often sought to cover burial expenses, debts left in the estate, and medical bills.
You can use the cash value in a guaranteed issue life insurance policy to cover emergency expenses while you're still alive. You can withdraw the money, and end the policy or accept a lower death benefit. Or you can borrow against the cash value and keep your benefits the same once you've paid the loan.
Guaranteed issue life insurance isn't for everyone. But if you have trouble obtaining other insurance policies because of a health condition, and expect to live for at least two years, guaranteed issue life insurance might be your only option.
Talk to your Insurance Agent to ensure Guaranteed Issue Life Insurance is right for you!
Guaranteed issue life insurance is a policy that's guaranteed to anyone... without regard to health conditions. You might think this sounds awfully risky for the insurance companies. They get around it in two ways.
Guaranteed Issue Life Insurance
First of all, guaranteed issue life insurance policies have "graded benefits". This means that if the insured person dies within a specified amount of time, the beneficiaries only receive a portion (or none, in the case of contestable periods) of the death benefits. Most guaranteed issue life insurance policies only pay full benefits after the first two years of the policy. So if John Doe purchases a guaranteed life insurance policy in 2006, and dies of cancer in 2007, the beneficiaries will only get a portion (or none) of the benefit.
Another way companies make money off guaranteed issue life insurance is by charging more for the premiums. They also set age limits on the policies (typically, they won't insure someone over seventy years old.)
What Kind of Insurance is Guaranteed Issue Life Insurance
It's a whole life insurance policy, but the premiums are higher because no-one can be turned down. This means that guaranteed life insurance policies accrue a cash value over time (usually after the first couple of years). A portion of the premiums pay the cost of insurance, while the rest builds the cash value.
And since it's a permanent life insurance, the premiums do not change, nor does the death benefit. As long as the premiums are paid, guaranteed issue life insurance is good for as long as you live.
Are There Exceptions to the Graded Benefits with Guaranteed Issue Life Insurance
Most policies will still pay the full amount of death benefits if the insured dies in an accident. But this is generally the only reason. In other words, if you find out you've only got three months to live, guaranteed issue life insurance won't help you.
What Else Should I Know About Guaranteed Issue Life Insurance
Since the policies are open to anyone, guaranteed issue life insurance doesn't require a medical exam or even a medical history. The questions asked are very general, like name, age, address, etc.
Most guaranteed issue life insurance policies have a limited death benefit amount (you'll have a hard time finding a policy for more than $50,000). Guaranteed issue life insurance policies are most often sought to cover burial expenses, debts left in the estate, and medical bills.
You can use the cash value in a guaranteed issue life insurance policy to cover emergency expenses while you're still alive. You can withdraw the money, and end the policy or accept a lower death benefit. Or you can borrow against the cash value and keep your benefits the same once you've paid the loan.
Guaranteed issue life insurance isn't for everyone. But if you have trouble obtaining other insurance policies because of a health condition, and expect to live for at least two years, guaranteed issue life insurance might be your only option.
Talk to your Insurance Agent to ensure Guaranteed Issue Life Insurance is right for you!
DYNAMIC LIFE AND AUTO INSURANCE : Mortgage Life Insurance
Insuring Your Life's Biggest Investment
If you're like most people, your home is the largest investment you'll ever make. And if other people depend on this investment (like your family) then Mortgage Life Insurance could be a perfect safety net for their security. Mortgage life insurance is a term policy (it doesn't build cash value) designed to cover your mortgage in the event of your untimely death.
Your mortgage isn't only your largest investment, it's also the longest financial commitment most people will ever make. A lot can happen during the life of a loan. Health conditions, financial situation, and the value of your home will all change by the time a mortgage loan is fulfilled. A mortgage life insurance policy is long term protection, the kind a family needs.
Different Kinds of Mortgage Life Insurance
There are several ways to open a mortgage life insurance policy. Sometimes, banks and real estate companies will sell a mortgage life insurance plan. The security it provides is beneficial to them, so they often offer it as an extra when you close your loan. In most cases, your benefits decrease as the principal decreases, you're only covered for what you owe on the mortgage. Yet the premiums stay the same throughout the life of the policy.
You can also open a mortgage life insurance policy directly with an insurance company. Working with an insurance company, in most cases, offers more advantages than the policies sold by banks and real estate companies. One benefit, is that the benefit amount often stays the same instead of decreasing (depending on the policy).
Other Differences in Mortgage Life Insurance Policies through Insurance Companies
Beneficiary In most cases, you have the option to choose your beneficiary. Mortgage life insurance from other sources almost always name the mortgage owner as the beneficiary. Also, the beneficiary can choose how to use the money.
Conversion Options Companies can usually offer mortgage life insurance policies with a pre-defined option to change coverage and payment in the future, one without regard to age and health conditions.
Guaranteed Premiums Sometimes, a mortgage life insurance policy doesn't guarantee the premiums. Using an insurance company gives you more options to set a defined premium or a variable one.
Freedom of Lenders Since other options make your lender the beneficiary of your mortgage life insurance policy, you loose the policy if you decide to refinance with a new lender. This can be a problem if your health conditions have changed since your policy started, obtaining a new policy might be impossible. But many insurance companies offer you the option of keeping your policy even if you switch lenders.
Mortgage life insurance is the right move for most because it offers a discounted rate for a term life policy. It's secure for you and secure for your family. Among the millions of home owners in America, few can guarantee their stability for the next thirty years. Mortgage life insurance changes that, so anyone can feel secure that their families won't lose their home when the worst happens.
Talk to your Insurance Agent to ensure Mortgage Life Insurance is right for you!
If you're like most people, your home is the largest investment you'll ever make. And if other people depend on this investment (like your family) then Mortgage Life Insurance could be a perfect safety net for their security. Mortgage life insurance is a term policy (it doesn't build cash value) designed to cover your mortgage in the event of your untimely death.
Your mortgage isn't only your largest investment, it's also the longest financial commitment most people will ever make. A lot can happen during the life of a loan. Health conditions, financial situation, and the value of your home will all change by the time a mortgage loan is fulfilled. A mortgage life insurance policy is long term protection, the kind a family needs.
Different Kinds of Mortgage Life Insurance
There are several ways to open a mortgage life insurance policy. Sometimes, banks and real estate companies will sell a mortgage life insurance plan. The security it provides is beneficial to them, so they often offer it as an extra when you close your loan. In most cases, your benefits decrease as the principal decreases, you're only covered for what you owe on the mortgage. Yet the premiums stay the same throughout the life of the policy.
You can also open a mortgage life insurance policy directly with an insurance company. Working with an insurance company, in most cases, offers more advantages than the policies sold by banks and real estate companies. One benefit, is that the benefit amount often stays the same instead of decreasing (depending on the policy).
Other Differences in Mortgage Life Insurance Policies through Insurance Companies
Beneficiary In most cases, you have the option to choose your beneficiary. Mortgage life insurance from other sources almost always name the mortgage owner as the beneficiary. Also, the beneficiary can choose how to use the money.
Conversion Options Companies can usually offer mortgage life insurance policies with a pre-defined option to change coverage and payment in the future, one without regard to age and health conditions.
Guaranteed Premiums Sometimes, a mortgage life insurance policy doesn't guarantee the premiums. Using an insurance company gives you more options to set a defined premium or a variable one.
Freedom of Lenders Since other options make your lender the beneficiary of your mortgage life insurance policy, you loose the policy if you decide to refinance with a new lender. This can be a problem if your health conditions have changed since your policy started, obtaining a new policy might be impossible. But many insurance companies offer you the option of keeping your policy even if you switch lenders.
Mortgage life insurance is the right move for most because it offers a discounted rate for a term life policy. It's secure for you and secure for your family. Among the millions of home owners in America, few can guarantee their stability for the next thirty years. Mortgage life insurance changes that, so anyone can feel secure that their families won't lose their home when the worst happens.
Talk to your Insurance Agent to ensure Mortgage Life Insurance is right for you!
DYNAMIC LIFE AND AUTO INSURANCE : What is No Exam life insurance?
A lot of people are talking about the new buzz which is no exam or guaranteed issue life insurance. No exam or guaranteed issue life insurance is a fairly new product in which an individual may purchase life insurance online with a credit card and receive coverage without having the annoying blood and urine tests done.
Get your free No Exam Life Insurance quote.
What does this mean? It means that almost anyone can purchase life insurance today and receive coverage the same day. Some people have problems scheduling time for testing and some people simply don't do needles very well. The convenience of being able to purchase insurance online and receive your policy in your inbox is very attractive.
There are some drawbacks and no exam life insurance isn't for everyone. No exam life insurance usually is limited to a certain death benefit. Most companies I have seen that offer no exam insurance have a maximum of $150,000 in coverage. It's necessary for a life insurance company to set a maximum to cover potential losses. The chance of an insurance company receiving a claim for no exam life insurance is much greater than standard Term or Whole life insurance policies because they make those individuals take medical exams and they only insure the healthy ones or they have such a high premium it's still profitable for the life insurance company.
Another drawback is the policy premium. Since the risk is greater for the life insurance company the premiums for no exame life insurance tend to be higher. To some, the higher premium and lower death benefit are good deals compared to going through a full medical exam.
Get your free No Exam Life Insurance quote.
What does this mean? It means that almost anyone can purchase life insurance today and receive coverage the same day. Some people have problems scheduling time for testing and some people simply don't do needles very well. The convenience of being able to purchase insurance online and receive your policy in your inbox is very attractive.
There are some drawbacks and no exam life insurance isn't for everyone. No exam life insurance usually is limited to a certain death benefit. Most companies I have seen that offer no exam insurance have a maximum of $150,000 in coverage. It's necessary for a life insurance company to set a maximum to cover potential losses. The chance of an insurance company receiving a claim for no exam life insurance is much greater than standard Term or Whole life insurance policies because they make those individuals take medical exams and they only insure the healthy ones or they have such a high premium it's still profitable for the life insurance company.
Another drawback is the policy premium. Since the risk is greater for the life insurance company the premiums for no exame life insurance tend to be higher. To some, the higher premium and lower death benefit are good deals compared to going through a full medical exam.
DYNAMIC LIFE AND AUTO INSURANCE : Return of Premium Life Insurance
The Alternative to Collecting Death Benefits
We pay for health insurance in high hopes that we'll never need it. Insurance, by its definition, is something we hope not to collect on. And so after paying years and years of life insurance premiums, and being "lucky" for all those years, it's easy to feel like it was all just a big waste of money.
Return of Premium Life Insurance, eliminates this problem because you can collect money without dying. After paying 20 years of life insurance premiums, a person can receive the money they've invested back. Not just a portion of it (as with whole life insurance) but return of premium life insurance offers everything back - 100% of the premiums you've paid.
How Much does Return of Premium Life Insurance Cost?
The premiums for this kind of policy vary from state to state. They generally run between term life policies and whole life policies. Return of Premium Life Insurance has benefits from both of these. It has the affordability of term life and the cash building value of whole life. You can buy it for periods of anywhere from 3 – 30 years.
Most companies can give you an estimate within 24 hours. The cost for return of premium life insurance is based on age, physical conditions, and habits (tobacco use) of the applicant…much like any other kind of life insurance.
Who Needs Return of Premium Life Insurance?
If you want to protect your family, but don't want to throw away the cash necessary to insure your life, return of premium life insurance is perfect. Not only do you get your money back at the end of the policy's period, but you won't have to pay income taxes on that money.
Return of premium life insurance is ideal for someone young who anticipates a lot of change before retirement. Whether you're just starting a family or still single, it allows for changes in the future.
What Happens if I Want to Cancel My Return of Premium Life Insurance Early?
Even if you don't keep your return of premium life insurance for the full term, you can still get a portion of your premiums returned to you. The longer you keep it, the higher percentage you'll get back. Canceling early will give you a small percentage back, and not canceling at all will give you 100% back.
On the other hand, you might want to keep the insurance after the end of the policy's period. Most companies will offer a continuance term after the original one ends. And since you'll be receiving a large sum of cash, it might be a good idea to invest it directly into a whole life insurance policy. The whole life insurance policy will also have a cash value, but not quite the same kind as a return of premium life insurance policy. You'll be able to borrow money against this policy, without loosing the coverage.
Return of premium life insurance is the easiest way to insure yourself without losing money. It's one of the few ways to collect the benefits, without actually using it.
Talk to your Insurance Agent to ensure Return of Premium is right for you!
We pay for health insurance in high hopes that we'll never need it. Insurance, by its definition, is something we hope not to collect on. And so after paying years and years of life insurance premiums, and being "lucky" for all those years, it's easy to feel like it was all just a big waste of money.
Return of Premium Life Insurance, eliminates this problem because you can collect money without dying. After paying 20 years of life insurance premiums, a person can receive the money they've invested back. Not just a portion of it (as with whole life insurance) but return of premium life insurance offers everything back - 100% of the premiums you've paid.
How Much does Return of Premium Life Insurance Cost?
The premiums for this kind of policy vary from state to state. They generally run between term life policies and whole life policies. Return of Premium Life Insurance has benefits from both of these. It has the affordability of term life and the cash building value of whole life. You can buy it for periods of anywhere from 3 – 30 years.
Most companies can give you an estimate within 24 hours. The cost for return of premium life insurance is based on age, physical conditions, and habits (tobacco use) of the applicant…much like any other kind of life insurance.
Who Needs Return of Premium Life Insurance?
If you want to protect your family, but don't want to throw away the cash necessary to insure your life, return of premium life insurance is perfect. Not only do you get your money back at the end of the policy's period, but you won't have to pay income taxes on that money.
Return of premium life insurance is ideal for someone young who anticipates a lot of change before retirement. Whether you're just starting a family or still single, it allows for changes in the future.
What Happens if I Want to Cancel My Return of Premium Life Insurance Early?
Even if you don't keep your return of premium life insurance for the full term, you can still get a portion of your premiums returned to you. The longer you keep it, the higher percentage you'll get back. Canceling early will give you a small percentage back, and not canceling at all will give you 100% back.
On the other hand, you might want to keep the insurance after the end of the policy's period. Most companies will offer a continuance term after the original one ends. And since you'll be receiving a large sum of cash, it might be a good idea to invest it directly into a whole life insurance policy. The whole life insurance policy will also have a cash value, but not quite the same kind as a return of premium life insurance policy. You'll be able to borrow money against this policy, without loosing the coverage.
Return of premium life insurance is the easiest way to insure yourself without losing money. It's one of the few ways to collect the benefits, without actually using it.
Talk to your Insurance Agent to ensure Return of Premium is right for you!
DYNAMIC LIFE AND AUTO INSURANCE : Life Insurance-Can I Insure my Spouse?
The short answer to this question would be: yes, you can insure your spouse. You cannot, however, do so without his or her knowledge. The reason for this is that you will have to each have a physical meeting with a representative who will likely assess your lifestyles and give you a quick physical exam of some kind. You can do this at your own home or elsewhere depending on the company, but you do have to have some sort of proof of heath before a company will insure you or your spouse.
Why should I make sure that my spouse is insured?
If you are the sole source of income for your family, and your spouse is home during the day taking care of household chores or watching the children, then you may think that losing him or her would not put a financial drain on your family (no matter how terrible it might be), however you could be very wrong. A housekeeper can be quite expensive, and if you do not currently perform the cleaning duties yourself, then you might not realize how much time and effort are involved in the process. If your spouse takes care of your children, then you will have to finance some sort of child care for them during the day while you are at work. Even an unemployed spouse can make a great deal of contributions that are expensive to replace once he or she is gone.
If your spouse is the worker of the family, then the reason for insuring him or her should be quite evident. You will have to deal with raising your kids or finding a job or even both if your spouse should pass away, and you may have additional expenses like a mortgage to take care of as well. It is most unwise not to have a good sized term life insurance policy out at the very least to ensure that the surviving spouse can maintain the lifestyle that you enjoyed together before the tragedy.
What do I need to know?
You will have to have information on your spouse such as social security, birthdates, and medical history, both that of your spouse and of his or her family. The best way to make sure that your information is perfectly correct is to simply go through the paperwork together, of course. If that is not possible, make sure that you know the basics and be able to contact him or her if you have any questions. You may need to take the paperwork home with you or make note of questions to call and have your agent fill the blanks in later otherwise.
Life insurance is an important part of a married couple’s future together, and although we all hope never to have to use it, it is important to be prepared so that you and your spouse both get the coverage that you need and the protection that will keep you comfortable through a very hard time should something happen.
Why should I make sure that my spouse is insured?
If you are the sole source of income for your family, and your spouse is home during the day taking care of household chores or watching the children, then you may think that losing him or her would not put a financial drain on your family (no matter how terrible it might be), however you could be very wrong. A housekeeper can be quite expensive, and if you do not currently perform the cleaning duties yourself, then you might not realize how much time and effort are involved in the process. If your spouse takes care of your children, then you will have to finance some sort of child care for them during the day while you are at work. Even an unemployed spouse can make a great deal of contributions that are expensive to replace once he or she is gone.
If your spouse is the worker of the family, then the reason for insuring him or her should be quite evident. You will have to deal with raising your kids or finding a job or even both if your spouse should pass away, and you may have additional expenses like a mortgage to take care of as well. It is most unwise not to have a good sized term life insurance policy out at the very least to ensure that the surviving spouse can maintain the lifestyle that you enjoyed together before the tragedy.
What do I need to know?
You will have to have information on your spouse such as social security, birthdates, and medical history, both that of your spouse and of his or her family. The best way to make sure that your information is perfectly correct is to simply go through the paperwork together, of course. If that is not possible, make sure that you know the basics and be able to contact him or her if you have any questions. You may need to take the paperwork home with you or make note of questions to call and have your agent fill the blanks in later otherwise.
Life insurance is an important part of a married couple’s future together, and although we all hope never to have to use it, it is important to be prepared so that you and your spouse both get the coverage that you need and the protection that will keep you comfortable through a very hard time should something happen.
DYNAMIC LIFE AND AUTO INSURANCE : Getting Life Insurance with a History of Medical Problems
Life insurance is an important policy to have but if you’ve had medical problems or are taking prescription drugs, you might find it much more difficult to find an insurance policy. When you do find one, you may be surprised to find the premium rates are much higher of “healthy” life insurance policies. It doesn’t have to be this way. Getting life insurance with a history of medical problems doesn’t have to cost an arm and a leg, and doesn’t have to be a hassle.
Mental and Emotional Issues
Tell a life insurer that you’ve taken Zoloft, Prozac or another anti-depressant or anti-anxiety medication and you might be short-listed for the “Deny” stamp. To prevent eminent denial, ask your primary care physician to write a note that you have been completely released from care of depression and/or anxiety and that you are functioning well without medication.
If your depression and/or anxiety were brought on by a life event, like a death in the family or post-partum, it is important to note the significance, and briefness, of the illness and medication. It is not uncommon for insurers to ask for a copy of related medical records as proof. Don’t be afraid of this, insurance agents must evaluate the risk of reoccurrence of potentially life-threatening or life-altering illnesses.
Some long-term or more serious mental illnesses, like bipolar disorders or manic depression, won’t necessarily get your application denied, either. Again, documentation is key to being offered reasonable life insurance premium rates. Speak with your doctor and ask for assistance proving the effectiveness of your treatment and a statement that your disorder is well under control.
Major mental health disorders, especially those known to cause delusions and suicidal behaviors, may raise more red flags than minor mental or emotional disorders. It is not uncommon for life insurers to require at least two years after the last suicide attempt or lapse in treatment to approve the application. There may also be numerous clauses regarding suicide in the plan.
Physical Issues
If you’ve had heart or lung problems or have been diagnosed with a disease or disorder that can be terminal or contribute to a shortened life span, you might find it more difficult than “healthy” applicant to find life insurance. A health history, including results of any medical tests from the past decade, should be provided to the insurance company when you apply.
Some insurers will require a physical examination, especially in the case of an abnormal medical history. If you’d like to prove your case even further, you may opt to subject yourself to genetic testing or even gene therapy. Be aware, however, that even after taking all of these steps, the insurer may require a clause negating any coverage if you die from the preexisting or known condition.
Omission
You may be tempted to just leave out the truth of your conditions. Before you do, you should know that doing so could result in your policy being canceled without a refund of premiums paid.
Mental and Emotional Issues
Tell a life insurer that you’ve taken Zoloft, Prozac or another anti-depressant or anti-anxiety medication and you might be short-listed for the “Deny” stamp. To prevent eminent denial, ask your primary care physician to write a note that you have been completely released from care of depression and/or anxiety and that you are functioning well without medication.
If your depression and/or anxiety were brought on by a life event, like a death in the family or post-partum, it is important to note the significance, and briefness, of the illness and medication. It is not uncommon for insurers to ask for a copy of related medical records as proof. Don’t be afraid of this, insurance agents must evaluate the risk of reoccurrence of potentially life-threatening or life-altering illnesses.
Some long-term or more serious mental illnesses, like bipolar disorders or manic depression, won’t necessarily get your application denied, either. Again, documentation is key to being offered reasonable life insurance premium rates. Speak with your doctor and ask for assistance proving the effectiveness of your treatment and a statement that your disorder is well under control.
Major mental health disorders, especially those known to cause delusions and suicidal behaviors, may raise more red flags than minor mental or emotional disorders. It is not uncommon for life insurers to require at least two years after the last suicide attempt or lapse in treatment to approve the application. There may also be numerous clauses regarding suicide in the plan.
Physical Issues
If you’ve had heart or lung problems or have been diagnosed with a disease or disorder that can be terminal or contribute to a shortened life span, you might find it more difficult than “healthy” applicant to find life insurance. A health history, including results of any medical tests from the past decade, should be provided to the insurance company when you apply.
Some insurers will require a physical examination, especially in the case of an abnormal medical history. If you’d like to prove your case even further, you may opt to subject yourself to genetic testing or even gene therapy. Be aware, however, that even after taking all of these steps, the insurer may require a clause negating any coverage if you die from the preexisting or known condition.
Omission
You may be tempted to just leave out the truth of your conditions. Before you do, you should know that doing so could result in your policy being canceled without a refund of premiums paid.
DYNAMIC LIFE AND AUTO INSURANCE : How Term Life Insurance Can Save Your Small Business
You’ve invested a lot in your business – your money, your time, your enthusiasm. You probably have many different kinds of insurance to cover your business against different kinds of loss – fire insurance, theft insurance, insurance against damages, property insurance. One type of insurance that many small business owners don’t consider is term life insurance. Term life insurance taken out on key employees in your business can help your business get through difficult times by paying off in the case of death or permanent disability of one of your key employees.
The two most common uses for term life in small businesses is as an inexpensive form of partnership insurance, and to cover costs if one of your key employees should die or be unable to work due to permanent, catastrophic disability. In the first case, the company takes out a term life insurance policy for each partner, naming the company or the other partner as beneficiary.
If one of the partners should die during the term that the life insurance policy is in force, the death benefit is used to buy that partner’s share of the business from his or her heirs. This ensures that the remaining partners maintain control over the business rather than being forced to accept a new partner through inheritance. Term life used in this way can also help cover the financial losses that might be incurred because of the death of the owner of the business or one of its partners.
Term life insurance can also be used to insulate your family from business losses in case of your death. By taking out a term life policy on your life and naming the company as beneficiary, you can ensure that the company can meet its immediate financial obligations without placing that burden on your heirs and loved ones.
Insuring your key employees with a term life policy is another way to insulate your business from financial losses incurred by the loss of one of your key employees. If one of your key employees dies unexpectedly, your business faces the cost of replacing them, at the very least, and sometimes has to weather a few months without the income that that employee generates. By insuring them with an inexpensive term life policy and naming the company as beneficiary, you can ensure that the company will have the money they need to function in his or her absence, and undertake a job search to replace them.
The best way to determine how much insurance you need for each key employee is to figure out what it will cost the company to continue operations in the face of their death. Often, a good figure is half of the employee’s annual salary, which will cover the costs of a recruitment company and reimburse the company for anticipated losses while the position is unfilled.
Insuring yourself and your key employees makes sound financial sense. The premiums for term life insurance are generally low, and the policy is renewable for several terms. It’s a small investment for peace of mind.
The two most common uses for term life in small businesses is as an inexpensive form of partnership insurance, and to cover costs if one of your key employees should die or be unable to work due to permanent, catastrophic disability. In the first case, the company takes out a term life insurance policy for each partner, naming the company or the other partner as beneficiary.
If one of the partners should die during the term that the life insurance policy is in force, the death benefit is used to buy that partner’s share of the business from his or her heirs. This ensures that the remaining partners maintain control over the business rather than being forced to accept a new partner through inheritance. Term life used in this way can also help cover the financial losses that might be incurred because of the death of the owner of the business or one of its partners.
Term life insurance can also be used to insulate your family from business losses in case of your death. By taking out a term life policy on your life and naming the company as beneficiary, you can ensure that the company can meet its immediate financial obligations without placing that burden on your heirs and loved ones.
Insuring your key employees with a term life policy is another way to insulate your business from financial losses incurred by the loss of one of your key employees. If one of your key employees dies unexpectedly, your business faces the cost of replacing them, at the very least, and sometimes has to weather a few months without the income that that employee generates. By insuring them with an inexpensive term life policy and naming the company as beneficiary, you can ensure that the company will have the money they need to function in his or her absence, and undertake a job search to replace them.
The best way to determine how much insurance you need for each key employee is to figure out what it will cost the company to continue operations in the face of their death. Often, a good figure is half of the employee’s annual salary, which will cover the costs of a recruitment company and reimburse the company for anticipated losses while the position is unfilled.
Insuring yourself and your key employees makes sound financial sense. The premiums for term life insurance are generally low, and the policy is renewable for several terms. It’s a small investment for peace of mind.
DYNAMIC LIFE AND AUTO INSURANCE : Whole Life Insurance is Still a Preferred Choice
For a long time in America, whole life insurance was what most people bought. Lately, insurance companies have been offering other insurance at lower rates, but in most cases, whole life insurance is still the most beneficial of all plans.
Good For Life Policy
While term life insurance is for a specified period, whole life insurance is designed for life time coverage. This makes it ideal for someone with a steady income who wants to plan for the future.
Whole Life Insurance Premiums and Death Benefits
Whole life insurance rates have the steady quality that drives long-term policy holders to this option. While term life insurance premiums generally go up each time the holder renews the policy, whole life insurance rates usually stay the same until time of death or cancellation of the policy. Some policies do have increasing rates, but the increases are defined in the contract when the policy is purchased. So there?s no reevaluation and no surprises.
The benefits paid at the time of death stay the same with whole life insurance, so the holders can rest assured that their families are taken care of.
Cash Value Turns Whole Life Insurance Into an Investment
A term policy begins and ends (with the policy holder loosing all the money he or she paid into it). A whole life insurance policy builds cash value. How? A portion of the premium is put towards investment in the company, so the policy holder also becomes a share holder. Over time, this builds into an amount of money that can be used. That amount is called the ?cash value?.
The policy holder can cancel the whole life insurance policy and take the cash or re-invest it in a new policy to better suit his or her needs. Or the holder can take the cash value, and stop payments, but still retain a portion of the death benefits (this is called "Paid Up Insurance").
Loan Values
As the cash value of a whole life insurance policy grows, policy holders can borrow money using the cash value as collateral. This allows whole life insurance policy holders to keep the insurance policy, but still use the money. If the debt is unpaid when the policy holder passes away, the benefits paid might be smaller.
Flexible Payment Methods for Whole Life Insurance
Single Premium: This whole life insurance quote is usually the most beneficial. It involves one single payment, and produces an instant cash value. The death benefits are defined and never change. It’s ideal for anyone who has a portion of money they want to put away for their family.
Limited Payments: This is when the premiums are only paid for a specified number of years. The amount for the premiums is specified in the whole life insurance quote and never changes. The cash value of the whole life insurance policy rises steadily.
Modified Premiums: The premium amounts increase over time, and then level after a specified number of years. All of the specifics are clearly defined in the whole life insurance quotes. The benefits amount stays the same, so it allows someone to purchase a larger policy than they can afford at that time.
Continuous Premiums: Continuous premiums never change and are due for the life of the policy holder. The cash value rises steadily. This is the most popular whole life insurance policy.
Other Whole Life Insurance Options
Whole life insurance companies often offer other options like a term riders, where holders can add temporary policies for short terms. Whole life insurance policies also sometimes offer child and spousal riders, so holders can add someone to the same policy.
Choosing the right insurance policy isn't always the simplest decision. Ask for the advice of an insurance agent who has the benefit of experience and can help you find decide if whole life insurance is right for you.
Good For Life Policy
While term life insurance is for a specified period, whole life insurance is designed for life time coverage. This makes it ideal for someone with a steady income who wants to plan for the future.
Whole Life Insurance Premiums and Death Benefits
Whole life insurance rates have the steady quality that drives long-term policy holders to this option. While term life insurance premiums generally go up each time the holder renews the policy, whole life insurance rates usually stay the same until time of death or cancellation of the policy. Some policies do have increasing rates, but the increases are defined in the contract when the policy is purchased. So there?s no reevaluation and no surprises.
The benefits paid at the time of death stay the same with whole life insurance, so the holders can rest assured that their families are taken care of.
Cash Value Turns Whole Life Insurance Into an Investment
A term policy begins and ends (with the policy holder loosing all the money he or she paid into it). A whole life insurance policy builds cash value. How? A portion of the premium is put towards investment in the company, so the policy holder also becomes a share holder. Over time, this builds into an amount of money that can be used. That amount is called the ?cash value?.
The policy holder can cancel the whole life insurance policy and take the cash or re-invest it in a new policy to better suit his or her needs. Or the holder can take the cash value, and stop payments, but still retain a portion of the death benefits (this is called "Paid Up Insurance").
Loan Values
As the cash value of a whole life insurance policy grows, policy holders can borrow money using the cash value as collateral. This allows whole life insurance policy holders to keep the insurance policy, but still use the money. If the debt is unpaid when the policy holder passes away, the benefits paid might be smaller.
Flexible Payment Methods for Whole Life Insurance
Single Premium: This whole life insurance quote is usually the most beneficial. It involves one single payment, and produces an instant cash value. The death benefits are defined and never change. It’s ideal for anyone who has a portion of money they want to put away for their family.
Limited Payments: This is when the premiums are only paid for a specified number of years. The amount for the premiums is specified in the whole life insurance quote and never changes. The cash value of the whole life insurance policy rises steadily.
Modified Premiums: The premium amounts increase over time, and then level after a specified number of years. All of the specifics are clearly defined in the whole life insurance quotes. The benefits amount stays the same, so it allows someone to purchase a larger policy than they can afford at that time.
Continuous Premiums: Continuous premiums never change and are due for the life of the policy holder. The cash value rises steadily. This is the most popular whole life insurance policy.
Other Whole Life Insurance Options
Whole life insurance companies often offer other options like a term riders, where holders can add temporary policies for short terms. Whole life insurance policies also sometimes offer child and spousal riders, so holders can add someone to the same policy.
Choosing the right insurance policy isn't always the simplest decision. Ask for the advice of an insurance agent who has the benefit of experience and can help you find decide if whole life insurance is right for you.
Dynamic Life And Auto Insurance : Do You Still Need Life Insurance if You're Widowed?
As your life changes, your financial needs change as well. Re-evaluating your insurance coverage after your spouse has passed away is an important part of getting your finances in order. If you're older or have grown children, you may need less life insurance or none at all now that you're widowed. But if you have children or other people who are financially dependent on you (e.g., elderly parents), you may need more life insurance than you think.
Your coverage needs
Though your family has changed, the need to protect your children's future remains. Life insurance can help ensure that your children will be provided for if something happens to you. The amount of life insurance you need depends on the number and ages of your children, as well as your income, debt, and assets. A good rule of thumb is to buy coverage that equals six to eight times your annual salary. You will want to make sure that you have enough insurance to cover your children's day-to-day living expenses and the cost of their college education. Ask your insurance agent or a financial planner to help you evaluate your needs and find a life insurance policy that's right for you.
Beneficiary Designations
Whether you have children or not, you should also review and update the beneficiary designations on any life insurance policies you own. Your insurance agent can help you with the necessary paperwork. If you don't have an agent, you can always call your insurance company and ask to speak to someone in the policyholder service department for more information. But don't name a minor child. Insurers generally won't make settlements directly to minors, and the probate court handling your estate may require that a trust be set up, and a guardian appointed, to manage the proceeds.
Tips on buying life insurance
You may have the opportunity to purchase group life insurance through your employer, trade groups, or professional associations
If you're concerned about the cost of premiums, consider low-cost term life insurance
Find an experienced insurance agent or financial planner to help you evaluate your situation and the products available
Check insurance company ratings, such as A.M. Best and Standard & Poor's, for an insurance company's financial stability
Be sure to shop around for the best rates
Periodically review your life insurance needs to make sure that you have the proper amount of coverage
Your coverage needs
Though your family has changed, the need to protect your children's future remains. Life insurance can help ensure that your children will be provided for if something happens to you. The amount of life insurance you need depends on the number and ages of your children, as well as your income, debt, and assets. A good rule of thumb is to buy coverage that equals six to eight times your annual salary. You will want to make sure that you have enough insurance to cover your children's day-to-day living expenses and the cost of their college education. Ask your insurance agent or a financial planner to help you evaluate your needs and find a life insurance policy that's right for you.
Beneficiary Designations
Whether you have children or not, you should also review and update the beneficiary designations on any life insurance policies you own. Your insurance agent can help you with the necessary paperwork. If you don't have an agent, you can always call your insurance company and ask to speak to someone in the policyholder service department for more information. But don't name a minor child. Insurers generally won't make settlements directly to minors, and the probate court handling your estate may require that a trust be set up, and a guardian appointed, to manage the proceeds.
Tips on buying life insurance
You may have the opportunity to purchase group life insurance through your employer, trade groups, or professional associations
If you're concerned about the cost of premiums, consider low-cost term life insurance
Find an experienced insurance agent or financial planner to help you evaluate your situation and the products available
Check insurance company ratings, such as A.M. Best and Standard & Poor's, for an insurance company's financial stability
Be sure to shop around for the best rates
Periodically review your life insurance needs to make sure that you have the proper amount of coverage
DYNAMIC LIFE AND AUTO INSURANCE : How Your Use of Alcohol Affects Life Insurance Costs
The Society of Actuaries says that alcohol abuse may take off anywhere from 10 to 15 years of your life. But did you know it can also raise your life insurance premiums?
When applying for life insurance, you will have to answer questions on the application related to your alcohol use. There is no actual insurance ruling on "problem drinkers" or "alcoholics," but excessive drinking can lead to certain medical conditions which will ultimately affect what insurance rate a life insurance company assigns you. It's very rare that you will be denied coverage based on the answer you give, but it may prompt a further investigation into your life and use of alcohol.
Red flags
When a life insurance company is reviewing your application and records, there are a couple of things they look for that may "red flag " you as a risk:
Liver enzymes.
If you took a blood test, your life insurance company may test a sample for liver enzymes. If levels are elevated, it may mean there is an alcohol-related medical problem. Also, if you're not a drinker, elevated levels may signal there is something seriously wrong with your health. A decision for your life insurance will be postponed until you meet with a doctor and find the reason your liver is not functioning like normal.
Drunk driving conviction.
Even if it was your first time and an isolated incident, if you were cited with a drunk driving conviction, you might get a higher premium because it's a red flag for alcohol abuse. If you get a DWI, your life insurance company will be more prone to search through your record, to see if there is more than just the one cited incident.
Attending physician's statement (APS).
An APS is a statement that your insurance company requests from your doctor or physician regarding your health.
It is used to check for anything that shows alcohol is affecting your health. It may have the same information that you wrote down in your application, but if your doctor has concerns about your drinking, they will be included as well.
Survey says
The underwriter gets to make the decision on what happens if they notice one or more of the above red flags while reviewing your life insurance application. They can either:
Issue the policy
Offer you a more expensive life insurance policy (due to concerns on alcohol abuse or medical conditions)
Decline your application
Postpone your application
Seek out further information from you and your doctor(s) and order a blood test to aid in the informational investigation
Admission to drinking
If you received a DWI a couple of years ago, and you take a life insurance medical exam now and it comes back with high enzyme results for your liver, or you admit to drinking heavily, your insurance premium may be highly unaffordable. If, on the other hand, you admit to drinking heavily, but the tests come back that you have normal liver functions and you have no current DWIs on record, you may get standard rates.
Getting lower premiums
Depending on what red flags your tests threw up, there are different things that you can do that will get your premiums lowered:
Flat extra premium.
Recent or multiple drunk driving convictions may lead to a flat extra premium being tacked on to your regular life insurance premium. These fees will typically disappear anywhere from two to five years after your last conviction
Lessen your drinking.
You don't have to quit entirely, but even reducing your drinking to a moderate level can help you get lower premiums. Be sure to document dates and visit your doctor so he/she can monitor your progress as well. You can approach your life insurance company over a period of six months to two years, and show them your proactive approach at bettering your health.
Improve your health.
As stated above, by lessening the amount you drink, getting your liver enzymes in check, and taking better care of your body and health, you should be able to get your life insurance premium lowered. If your insurance company is unwilling to lower your rates, don't be scared to shop around-there will be another underwriter out there who is willing to look at your health improvements and give you a better quote.
When applying for life insurance, you will have to answer questions on the application related to your alcohol use. There is no actual insurance ruling on "problem drinkers" or "alcoholics," but excessive drinking can lead to certain medical conditions which will ultimately affect what insurance rate a life insurance company assigns you. It's very rare that you will be denied coverage based on the answer you give, but it may prompt a further investigation into your life and use of alcohol.
Red flags
When a life insurance company is reviewing your application and records, there are a couple of things they look for that may "red flag " you as a risk:
Liver enzymes.
If you took a blood test, your life insurance company may test a sample for liver enzymes. If levels are elevated, it may mean there is an alcohol-related medical problem. Also, if you're not a drinker, elevated levels may signal there is something seriously wrong with your health. A decision for your life insurance will be postponed until you meet with a doctor and find the reason your liver is not functioning like normal.
Drunk driving conviction.
Even if it was your first time and an isolated incident, if you were cited with a drunk driving conviction, you might get a higher premium because it's a red flag for alcohol abuse. If you get a DWI, your life insurance company will be more prone to search through your record, to see if there is more than just the one cited incident.
Attending physician's statement (APS).
An APS is a statement that your insurance company requests from your doctor or physician regarding your health.
It is used to check for anything that shows alcohol is affecting your health. It may have the same information that you wrote down in your application, but if your doctor has concerns about your drinking, they will be included as well.
Survey says
The underwriter gets to make the decision on what happens if they notice one or more of the above red flags while reviewing your life insurance application. They can either:
Issue the policy
Offer you a more expensive life insurance policy (due to concerns on alcohol abuse or medical conditions)
Decline your application
Postpone your application
Seek out further information from you and your doctor(s) and order a blood test to aid in the informational investigation
Admission to drinking
If you received a DWI a couple of years ago, and you take a life insurance medical exam now and it comes back with high enzyme results for your liver, or you admit to drinking heavily, your insurance premium may be highly unaffordable. If, on the other hand, you admit to drinking heavily, but the tests come back that you have normal liver functions and you have no current DWIs on record, you may get standard rates.
Getting lower premiums
Depending on what red flags your tests threw up, there are different things that you can do that will get your premiums lowered:
Flat extra premium.
Recent or multiple drunk driving convictions may lead to a flat extra premium being tacked on to your regular life insurance premium. These fees will typically disappear anywhere from two to five years after your last conviction
Lessen your drinking.
You don't have to quit entirely, but even reducing your drinking to a moderate level can help you get lower premiums. Be sure to document dates and visit your doctor so he/she can monitor your progress as well. You can approach your life insurance company over a period of six months to two years, and show them your proactive approach at bettering your health.
Improve your health.
As stated above, by lessening the amount you drink, getting your liver enzymes in check, and taking better care of your body and health, you should be able to get your life insurance premium lowered. If your insurance company is unwilling to lower your rates, don't be scared to shop around-there will be another underwriter out there who is willing to look at your health improvements and give you a better quote.
Subscribe to:
Posts (Atom)
Posts
