Lost Life insurance policy: November 2013

Tuesday, November 26, 2013

Stop Smoking And Save On Life Insurance

Stop Smoking And Save On Life Insurance

For insurance companies, deciding how much to charge any given individual for life cover is all about calculating the level of risk involved in insuring them. Insurance companies assess this risk by taking medical histories and collecting information about lifestyles, physical health and other factors. Looking after your health, therefore, is one of the best ways of reducing the cost of life cover-and the smoking habit is one of the single biggest lifestyle factors that drive the cost of insurance up.

The Higher Cost of Life Insurance

The average smoker will pay at least 40% more for life cover than they would if they were a non-smoker. Some insurance companies are more forgiving than others, but depending on the company you choose, you could pay up to 55% more for your life insurance. Being a smoker affects all forms of life and health based insurance, including critical illness cover and income protection.

Quitting cigarettes can amount to huge savings on your life insurance premiums. For example, a 35 year old male smoker with a policy benefit of £100,000 might pay £19 per month for the cover, whereas a non-smoker might pay only £10. Over twenty years, the non-smoker pays £2,400 for their life cover, while the smoker pays £4560 – that’s an extra £2160 over twenty years. That may not seem like much, but when you consider that the average British smoker spends £1,500 a year on cigarettes, quitting smoking for any reason adds up to sizable savings and lower insurance premiums are the icing on the cake.

Getting your Premiums Reduced

If you’re currently a smoker paying these astronomical prices for life cover, you can still reduce your premiums to a more affordable level. Most life insurance companies require that a smoker who has recently quit must remain a non-smoker for a full year before requesting an evaluation of their premium to take their new non-smoking status into account.

Don’t think you can fool your insurance company into thinking you’re a non-smoker when you haven’t given up, however. Ex-smokers who want to switch to a non-smoking premium rate will have to fill out a new application form, go through another medical exam, and relate their recent medical history as well. Your insurer may even request that you take a cotanine test to prove your non-smoking status. Any false information invalidates the policy, and as with all types of insurance, absolute honesty is the only way to go.

Take the Opportunity to Shop Around

Remember that if you decide to have your status as a non-smoker evaluated to reduce the premiums on your current policy, this will be a good time to shop around and see if you can find an even better policy elsewhere. The best savings might not even be with your current insurance provider, and you might be able to save even more money by checking out your options.

Interestingly enough, kicking a smoking habit can even save you money on your home insurance. With more than half of home fire claims attributable to cigarette-related causes, non-smokers can save on home insurance premiums, too.

Stop Smoking And Save On Life Insurance

Term Life And Whole Life Insurance

Term Life And Whole Life Insurance

Which type of policy is best for you, term or whole life? The answer depends on several factors, including:

Your Needs. If you need coverage only until your children graduate from college, for example, you might be better off with a term life policy.

Cash-value insurance is better suited for long term needs, such as planning estate taxes and providing lifetime security for your spouse. Some term policies cannot be renewed past age 70 or 80 and can become costly to renew as you approach that age.

The Cost. If term life insurance is more suited to your budget and you want life time coverage, consider a term life policy which can be converted into a whole life policy. Then you can convert the policy whenever your cash flow or needs dictate. You can also purchase a combination of term life and whole life insurance and gradually shift into whole life insurance over time.

Your Savings and Investment Goals. Whole life insurance can be a good long term investment vehicle, especially because the cash value has the potential to grow tax-deferred. Should you no longer need the insurance but want some extra cash, you may surrender the policy and collect the accumulated cash value. Be sure to discuss the tax consequences with your tax advisor first.

As an alternative, you could purchase term life insurance and invest what you save on premiums on your own. Compare the returns you can expect, and remember to take taxes into consideration if you plan to select taxable investments.

So, Should I Buy Term Life or Whole Life Insurance? Term life and whole life insurance both have advantages including immediate family protection. Deciding which type of policy and which features are right for you takes careful consideration and, most times, a comprehensible look at your financial plan. To discuss your life insurance needs and financial requirements, contact your financial professional.

Term Life And Whole Life Insurance

Insurance Claims - The Policyholder Should Always Get a Second Opinion!

Too many policyholders rely on their insurance company to visit their property, inspect their claim, and provide a claim settlement for their damages. This should almost NEVER HAPPEN!

I’m not saying that there are no good adjusters out there and that they can’t be trusted, not at all. There are many excellent adjusters that do an excellent job. However, are you under the delusion that they will never make a mistake, miss hidden damages, or that they all have multiple years of experience? Not a chance.

Have you ever had a second opinion before having your car fixed? Have you or anyone you know ever needed a second opinion after seeing a doctor? A second opinion when shopping for a car, computer, or hiring a contractor? Have you ever had more than one estimate to build or repair something for your home? I’m assuming you’ve answered yes to at least one of these questions, if not more. Then why do policyholders allow insurance company adjusters to TELL THEM what they will pay on their insurance claim?

Most insurance adjusters have learned how to pass an insurance claim exam and learned how to use an insurance estimating program… but have never worked on an insurance repair job. Many have never built or repaired a home, nor have they ever worked for any type of Construction Company. Chances are they will miss something needed to properly complete the repairs of your claim.

It’s YOUR property, it’s YOUR insurance policy, and it’s YOUR responsibility to protect yourself. Again, your adjuster may be dead on with his/her analysis. Regardless, you should have a contractor or insurance claim professional provide you with a detailed, line item insurance claim estimate to compare to.

What Is A Line Item Detailed Estimate?

Sometimes a contractor will use a complete sf price for a roof or deck, but the insurance company is requesting the estimate be broken down per line item. Using the roof example; the insurance companies want to see each process of the roof replacement, AND each type of material being used on the roof – listed separately. Here’s an example;

Description Qty Unit Cost Total

Tear off 3 tab – 25 yr. 27 sq $42 1,008.00

composition shingle

Replace 3 tab – 25 yr. 30 sq $162.09 4,862.70

composition shingle roofing

incl. felt

Drip edge 313.33 $1.29 404.20

Flashing – pipe jack 2 $22.08 44.16

Continuous ridge vent 70 $5.51 385.70

Step flashing 42.33 $5.58 236.20

Skylight flashing kit 2 $66.00 132.00

Digital satellite system 1 $101.14 101.14

Detach & Reset

Total 7,174.06

The numbers in the above example are fictitious; however, it shows the basics of a Line Item, Detailed Estimate. Each line item is broken down in detail and displays the description, quantity, unit cost, and total for each separate line item. This type of detail is needed so the insurance company can review and compare each separate line item and unit costs with their own software. Having the insurance claim estimate formatted the way the insurance companies like to see them, results in a faster settlement.

In the event of an insurance claim dispute a more detailed estimate allows for a smoother, less time consuming process. It’s difficult for the insurance companies to dispute insurance claim estimates that are presented to them in the exact format that they are requesting.

Watch yourself, educate yourself, and protect yourself by obtaining a second opinion on any and all insurance claim damages you incur. If you won’t look out for yourself… who will?

Insurance Claims - The Policyholder Should Always Get a Second Opinion!

ULIPs provide a lot of flexibility to the policyholders

Today, insurance particularly life insurance is one of the major ways of securing ones life and ones family from untoward incidents and from sudden financial losses. Life insurance policies such as term life insurance and whole life insurance policies offer that protection for a person’s life.

Nowadays, many people are moving toward life insurance because of the advantages that of having a policy. For a long time there were no innovations in life insurance as a product. But, in the recent times, a new innovation has been introduced. This product is called ULIP or Unit Linked Insurance Policy. ULIP are a new age insurance policies. These are not just insurance policies, but they are also investment plans. As an insurance policy, unit linked policies offer life insurance advantages. And as an investment plan, it provides wealth that has been built over time.

ULIPs are special types of policies because they offer both the advantages of an insurance policy and investment plan. This is particularly advantageous for those people who may not be able to afford a separate insurance policy and separate investment plans. Under such conditions, ULIPs can be a great advantage.

When we look at how unit linked policies work, it is evident that they are similar in nature to units of mutual funds. The premiums that are paid by to the insurance company are invested in these units in the stock market. The health of this investment plan is calculated on a regular basis and is disclosed to the policy holders. Until now, it seems like an average investment plan, but the rest of the story is that it is basically an insurance policy whose premium proceeds are directly invested in special ULIP units. The average life of Unit linked policies is upto 20 years and more. If at all, the policy holder passes away during the policy period, the ULIP units market value is ascertained and the proceeds are passed on to the policy holder’s nominees.

ULIPs are often compared to their market counter parts mutual funds. Mutual funds usually, have a life time of about 5 to 10 year. Within this time, the mutual fund may or may not be able to grow as desired. But in case of ULIPs whose average life is more than 15 years and can range up to 25 years, the fund will receive ample time to grow into wealth. This makes it more advantageous than mutual funds.But, these are not for those who want short term investment plans or short term insurance policies. As the cost of operating ULIPs is very high, it is better to stay away from them. But, those who are seriously looking forward to investing for a long time, then they are the best that one can get.

ULIPs provide a lot of flexibility to the policyholders

Insurance, Policy, Life Insurance, Life Insurance policy

An INSURANCE is an INSURANCE and Not an Investment Not very long ago many insurance agents came to my father in the beginning of the year with a new diary and calendar.

My father, a teacher made them comfortable, sipped many cups of coffee with them and understood the benefit of having an LIC insurance policy. LIC is as synonymous with insurance as Colgate is with toothpaste. In those days the shrewd insurance Uncle sold my father two policies, one for him and another for my mother. He even took more names as references from my father. He was promoting himself as superman. Yes the same cartoon character who saves the world from evil. Well that’s what the insurance agent was trying to do as well or so he portrayed. He sold those policies as tax saving instrument. And till date my father is bearing the burden of paying the premiums for both the policies ensuring that ‘insurance uncle’ is now a millionaire.

After many years one fine morning of January I got a surprise call from my father.
After the usual pleasantries my father passed the phone to a stranger. To my surprise it was ‘insurance uncle’. He first praised my father for the very timely payments of insurance premiums and then asked me if my wife and I had any insurance or not. He offered me many products with good returns linked to the market. After a long explanation from him i only asked him one simple question.

” Uncle are you selling me insurance, a tax saving product or a product with good returns? Can I get an insurance product for just insurance?” He had no convincing answer and when I asked if he could offer a good term insurance for my 50 year old father the phone was disconnected. Some things that your agent never tells you-
I have my friend in a PSU which sells insurance products. When I asked him to suggest a best term insurance I could see his wicked smile. He said that the bank was not interested in selling term insurance as it was a bad business idea for banks. Then he went on to disclose why no insurance agent sells term insurance. In plain and simple terms Term insurance is protection against risk to life. Very few understand that a term policy is insurance at its purest and simplest best. You pay premiums because there is a guarantee that if something happens to you, your family will be paid out the pre-decided amount, hence you have the peace of mind that even if you are not there, those loved ones will be well taken care of. As it is the cheapest form of insurance the commission that the agent gets is very low, just one tenth of what he gets for selling a ULIP ( market linked insurance products) and other life insurance policies.

For example if you buy LIC Jeevan Anand endowment plan of Rs.2,500,000 for 25 years you end up paying close to Rs.1 lack per year whereas for a term plan you will require to pay just Rs.5600. The remaining sum if you invest in mutual fund through systematic plan you can fetch much more return than what your insurance company will get for you. So next time when an insurance agent calls you do ask him about the term insurance plan he can offer to you and the chances are you will never get the call again.

Why a term insurance is a must for you-
Simply because it provides a safety net for your family and is the cheapest form of insurance available. The premium depends on the mortality charges, which are lower at a younger age. Hence, the earlier in life you take insurance, the longer the term and cheaper the cost. Term insurance policies cover you for a specific amount of money and for a specific period of time. How do you then decide what is the right amount and right term for you? The amount depends on a number of factors like the age of your children, the important goals that you have, the number of years left to your retirement and so on. Likewise the term of the policy is mostly linked to how long you are going to be working. If you are to buy the term plan of 100 lakh for twenty years and your age is 30 years here is a comparison for you.
Term Policy Sum Assured Premium (Annual) Agon Religare I term plan 100 Lakh 9600+989( service tax) = 10,589 Met Suraksha Plus 100 Lakh 15000+1545=16545 ICICI pure protect elite 100 Lakh 15810 +1628= 17438 LIC AMULYA JEEAN 100 Lakh 25700

Do not buy One but MANY-
One more thing which your agent will never tell you. He will tell you his age, his experience, his track record but will not make an effort to help you with simple mathematics. Here’s the catch. It makes sense to split your life insurance needs by buying a number of policies instead of just one. Let us understand this with an example. If one requires an insurance cover of Rs 1.5 cr for 20 years, the same policy could be split into, say, 3 policies of Rs 50 lakh each with terms like 10, 15, 20. The point to understand is that Rs.1.5 cr cover will not be needed for the entire 20 years, if you were to work it out it may be required only in the initial few years. This way, there will be two advantages.

First, after completion of the period, the premium for that policy stops, boosting cash flows. In this example, after 10 years, the first policy would stop and consequently that premium need not be paid. Secondly, since these policies are of shorter tenure, the policy holder will be paying lower premiums as well. This is a double benefit that can make a huge difference in the premium, without compromising on the protection requirement.

For example if you buy a Rs 1.5 cr policy for 20 years, the premium for ICICI Pru pure protect comes to Rs 39,279/- pa. However, if you split the policy into three of 10/15/20 year terms, you will pay a total premium of Rs 33,982 pa which is a difference of Rs 5,297/- pa. Now after 10 years, one policy would end and a premium of Rs 9,707 would not have to be paid. Over time, one policy after another will keep on closing and premiums to be paid becomes less and less. If we were to calculate the premiums in the first scenario where he takes one policy of Rs 1.5 cr for 20 years, he would pay a premium of Rs 7, 85,580/- over that time period. In the other scenario, where he takes three different policies, he will be paying in all, Rs 5, 26,660/-. That is a staggering difference of Rs 2, 58,920/-, over the period. This is without compromising on the life cover requirements. It does make sense to have a clutch of policies with different terms, doesn’t it?

The last word-
If you are still confused whether you should go for a term plan because you end up get nothing if you survive here is year another option for you. There is a plan with Birla Sun life Insurance company which returns your premium paid when you survive after the term of the policy. For example if you buy term insurance of 12 lakh for 20 years you will have to pay 6000 rupees as annual premium. And the company will give you 2.40 lakh after the maturity of the plan. But if you study carefully the premium is higher in this product and the same will be used to give you the return back. After all insurance companies are not doing charity. So the investment mantra for insurance is just one. Never mix insurance with tax planning. Never mix insurance with capital market linked returns

Insurance, Policy, Life Insurance, Life Insurance policy

Term Life Insurance

Term Life Insurance

Term life insurance is a life insurance product that pays out a cash lump sum upon death of the insurance policyholder or at the point that the insurance policyholder is diagnosed as terminally ill. But, despite it being a low cost term life product – insurance cover can be acquired from as little as £5-£10 per month – surprisingly few of us have term life insurance in place.

For people with a mortgage and family to support, not having a term life insurance policy exposes them to a large financial risk. This risk becomes apparent when you consider how the mortgage and household bills would be paid if the main income producer were to die or to become terminally ill. The end result could be that loved ones who are left behind find their home is repossessed because they cannot keep up the mortgage repayments.

Some people prepare for such an eventuality by taking out a mortgage life insurance policy. This is all well and good for covering off the remainder of the mortgage loan, but where will the money come from to pay the gas & electricity bill and the council tax bill every month, let alone the money needed to cover the policyholder’s funeral expenses? It is at this point that a term life insurance policy becomes very useful indeed.

If you don’t have a term life insurance policy in place, here are some sobering reasons why you should consider taking out a term life policy now…

• CANCER – One in three people will develop cancer at some point in their lives. Research into cancer is of course ongoing, and one day some cancers may be curable. In the meantime a term life policy offers income protection for loved ones left behind in the event of terminal cancer diagnosis and death from cancer.

• HEART DISEASE – Heart and circulatory disease accounts for more than 35% of all deaths in the UK each year. The number of people dying from heart and circulatory disease is on a falling trend, but the number of people becoming morbidly obese is increasing, and so may reverse this trend in the near future. Term life policies can be configured to pay out if cause of death is heart-related.

• MRSA (SUPERBUG) – The death rate from the MRSA superbug has doubled in the last 4 years. MRSA is a bacterial infection that is resistant to antibiotics. It commonly causes death in people with weak immune systems, and so easily spreads amongst the sick & old in hospital wards. Many life insurance policies pay out if the cause of death is MRSA related.

• AVIAN FLU (BIRD FLU) – Recent comments by the Society of General Microbiology in the UK sparked controversy when they estimated that 2 million people in the UK could die from a highly infectious strain of mutated Avian Flu. If you are worried about Avian Flu check with the life insurance agent to see if their term life policy covers such an eventuality.

Term Life Insurance

Term Life Insurance And No Exam

Term Life Insurance And No Exam

Many people strive to purchase term life insurance policies that require no medical exams; however, medical exams aren’t enforced to torture you as a potential term life insurance plan policyholder. Medical exams are usually in effect simply to protect the term life insurance company. These medical exams may actually protect you, too.

Check out some of the most frequently asked questions about term life insurance and medical exams.

Why do term life insurance companies require medical exams?

Medical exams are used to protect the term life insurance company as well as you. If you have a serious and potentially fatal health condition, the term life insurance company wants to make sure they receive the necessary amount of payments to cover you and your beneficiaries.

What does a medical exam for a term life insurance company consist of?

Some medical exams are pretty thorough. On the other hand, some term life insurance companies only require urine and/or blood samples.

What happens if I am turned down for a term life insurance policy due to the medical exam results?

If you are repeatedly turned down, talk with your state’s department of insurance about other possibilities and alternatives.

What if I lie during my medical exam?

If you find a way to fudge your medical exam, or lie about your history, trust us – you will not be doing any harm to the term life insurance company. You will only be harming yourself. If you pass away due to a health-related issue such as smoking, an issue you lied to your term life insurance company about, your term life insurance company has the right to refuse compensation for your beneficiaries.

How can I find a term life insurance company that requires no medical exams?

If you are still interested in avoiding a medical exam, you will simply have to shop around until you find a reputable term life insurance company that doesn’t require one.

Term Life Insurance And No Exam

Term Life Insurance As A Charitable Gift

Term Life Insurance As A Charitable Gift

Typically, when we take out term life insurance it is purchased while we are younger and just starting our families. After some years, a policy becomes old and outlives its original intention: perhaps your spouse no longer needs financial security or your children are now financially independent. In these cases, individuals decide to leave their term life insurance policies as gifts to their favorite charities. This is particularly beneficial to individuals who have large financial assets as they can use their contributions as tax deductions for their estates.

There are several ways in which to give a gift of life insurance to a charitable cause. First, you can purchase a new term life insurance policy altogether, leaving the charity of your choice as the beneficiary. Or, you can simply change the beneficiary of your existing term life insurance policy. Upon your death, the named charity would receive full face value of your policy.

When you list a charity as your beneficiary, you will need to have the following information:

1.    The full legal name of the charitable organization.
2.    The charity’s permanent mailing address.
3.    Your charity’s federal tax identification number.
4.    Your relationship to the beneficiary: to be listed as “charity”

Charities always have someone in charge of organizing and accepting gifts and donations. You can be certain that they will be happy to help you should you have any questions on the gift giving process or need help in filing any forms.

Rules for Paid or Unpaid Policies

If you choose to name a charity as the beneficiary of an already existing paid-in-full term life insurance policy, you may be able to deduct an amount equal to the fair market value of the policy, or your cost basis, whichever is less. Since your charity becomes the owner of your policy, the proceeds will not be included in your estate for tax purposes.

If you are still making annual premium payments on your policy, you may be able to deduct an amount equal to the approximate cash value of the policy or the policy’s cost basis, whichever is less, in the year in which you make the gift. Again, the proceeds will not be included in your estate for tax purposes. You may also be able to deduct any future premium payments.

Group Term Life Insurance

If you participate in a group term life insurance policy through your workplace, you can donate your excess coverage to your favorite charity as well. Many employers provide generous life insurance coverage as a fringe benefit to their employees. However, most employers do not tell you that you are also required to pay income tax on the cost of coverage over $50,000.00.

How do you avoid paying these taxes? There is a special rule that excuses this extra tax if you donate the excess coverage to charity. “Excess coverage” is an excellent way to donate to your favorite charity. The best part is that you pay no out of pocket expenses for premiums. You get all the benefits of giving while also saving money in taxes at the same time. For more information on “excess coverage” contact your company’s benefits department.

Using your term life insurance policy as a gift to your favorite charity enables you to make tax deduction and/or to gain other financial benefits to your estate. Be sure to talk to a financial advisor to ensure that both your family and your favorite charity both benefit by your financial decisions.

Term Life Insurance As A Charitable Gift

Term Life Insurance Company - How To Compare Them And Choose The Best For You

Term Life Insurance Company – How To Compare Them And Choose The Best For You

There are some companies that only sell term life insurance but they are the exception and not the rule. Term only life insurance companies are usually companies that are proponents of buy term and invest the difference. Most life insurance companies sell both term and permanent life insurance. There are some life insurance companies that have affiliates that sell supplemental policies to support their wide range of life insurance products. Shopping for term insurance is relatively easy but the number of life insurance companies that sell term insurance is staggering. There are a number of things to consider when you choose a life insurance company. How do you want to be serviced? That is an important question to answer because that will help determine what kind of life insurance company will best service your needs.

If you would like to have ongoing professional advice then you need to look at insurance companies that distribute their products through agents. There is an increasing number of people that prefer to do everything themselves either over the internet or by telephone with customer service representatives. There are insurance companies that do business this way as well. Once you have determined your preference then you can narrow down the insurance companies that fit your needs. This kind of evaluation will save you a lot of time when entering a rather large insurance marketplace.

The next step is to ask yourself why you are purchasing life insurance. This will give you a better idea about what kind of policy to look for when obtaining quotes. Debt coverage is usually best protected with term insurance. You may want to look at companies with extensive term portfolios. There are a lot of reputable insurance companies and they are highly regulated by their individual state’s insurance commissioner. There is a rating bureau called AM Best that gives a rating to each insurance company according to their financial strength. You can find this book in most libraries.

Term Life Insurance Company - How To Compare Them And Choose The Best For You

Term Life Insurance Coverage Is A Good Deal

Term Life Insurance Coverage Is A Good Deal

One financial product that is significantly cheaper than things like gas and food these days is term life insurance. It is estimated that term life premiums have fallen 30% or more in the past 10 years. Can you imagine buying gas at the same price you paid 5 years ago? It doesn’t get any better than that.

Why Is Term Life Insurance Cheaper?

As people are living longer term life insurance companies will have fewer claims in any given period. Add in competition and you will see why you can get a great price for your term life insurance protection. Term life covers you for a specific period, normally 10 or 20 years, is simple to understand and it is easy to compare the price of one company to another.

But Do You Need Term Life?

Children don’t need life insurance, but parents with young children need a lot of term life insurance as the cost of bringing up and educating children mount every year. For 90% of people, term life is what they should buy. Term is simple and cheap and it provides coverage for a lot of personal needs that will fade away over time. Term life does not have lots of bells and whistles which is why it is cheap. If you die, your beneficiaries get the money.

How Much Term Life Insurance Do You Need?

Some brokers suggest 7 times annual earnings; others say 10 times. The best way is to look at your own family situation. Who do you want to protect in case you pass away early? Many people need term life insurance to cover the mortgage, college bills and other family needs. Then, how much annual income will your family need on a day to day basis?

What Sort Of Term Life Is Recommended?

Mostly recommended is level term life insurance where the premium remains constant. Most life insurance companies sell this level term life insurance and increase the premiums after the first 10 or 20 years has expired.

Term policies can run 10 or 20 years or to age 100, with the 10 and 20 year term being the most popular. If it turns out you don’t need the policy for that length of time, you can drop some or all of it.

Finding a good online broker to do the shopping for you is more than half the battle in getting the best deal for your term life insurance coverage.

Term Life Insurance Coverage Is A Good Deal

Term Life Insurance Explained

Term Life Insurance Explained

Term life insurance does not build any kind of cash value, which makes it an original type of life insurance and considered pure insurance protection. Unlike whole life insurance, term life insurance is only temporary and only covers a specific term, or a specific period of time in a person’s life. Benefits will go to a beneficiary only if the insured person dies during that specific window of time.

Term life insurance is usually the cheapest way for people to purchase a death benefit package on a per dollar basis. The reason for this is because the term will expire and the insurer will not have to pay out.

It is recommended that people should purchase term life insurance with the Theory of Decreasing responsibility in mind. The Decreasing responsibility theory is provided that the insured person or persons realizes and understands that any and all financial responsibilities are only temporary and that they should purchase insurance to compensate for these responsibilities.

The easiest and simplest way to purchase term life insurance is on an annual basis. The premium to be paid is only the expected probability of the person dying within that period plus a few extra fees, such as a cost and profit component. Because insurers are able to choose whom they decide to ensure, the probability of someone they choose to insure dying within the next year is extremely low, most people opt not to purchase one-year terms. An annual policy is not very cost-effective either. Many people choose to go with annual renewable terms (ART). In ART, a premium is paid for the coverage of one year and then is guaranteed to be continued each for so an X number of years, which could be anywhere from ten to fifteen to twenty years or more, whatever the insured person decides on. Even though this direction will cause the insured to pay a higher premium, they are more likely to have the benefits paid.

A level term is a very popular form of term life insurance that is a renewable annual term with a constant premium for an X number of years. The years in a term are usually 10, 15, 20, and 30 years. A level term charges a higher premium for a longer amount of time simply because as people get older they are more expensive to ensure, and their age is averaged into the equation for the premium.

Even though they are more likely to be paid the benefits in the end, many people are uncomfortable with regular life insurance for one reason or another. For those types of people, term life insurance is an excellent choice. It gives people the option of having life insurance for a certain period and can be renewed annually or in larger periods.

Term Life Insurance Explained

Term Life Insurance For Californians

Term Life Insurance For Californians

It can be a truly daunting experience for anyone who is looking to purchase California term life insurance. Common in many industries, insurance is no exception; you will find the use of words that are defined in a way that is much different from the common or traditional definition. Because California term life insurance has some of its own vocabulary, it would be extremely beneficial for anyone looking to learn more about their policies to conduct some research and education on their own to make the process a lot less intimidating and a lot more clear. There are a lot of terms and vernacular that can potentially be unfamiliar and confusing to anyone buying term life insurance for the first time.

Here is a brief explanation of some of the more widely used terms.

Term Life Insurance Terms:

Beneficiary – The beneficiary for a term life insurance policy is whatever person has been designated by you to receive whatever benefits are outlined in the California term life insurance policy upon your death. You can designate that your policy benefits be dispersed among several beneficiaries, a single beneficiary or even a charity if you wish.

Proposed Insured – As it relates to the purchase of California term life insurance, the proposed insured is the person who is actually applying for the coverage. Learn more about California term life insurance at http://www.equote.com/li/californiatermlifeinsurance.html.

Attained Age – Some term life insurance companies used the attained age as a means of determining the age in term life insurance premium calculations. This method actually uses the actual age in years of the proposed insured person. Months are not considered when it comes to arriving at the attained age for a proposed insured person.

Nearest Age – The nearest age method when it comes to determining age for a California term life insurance actually takes months into account by looking at whether the proposed insured person is closer to their last birthday age or their next birthday.

Premium Mode – The term premium, as it pertains to term life insurance, is the amount that is charged by a life insurance company for a California term life insurance policy. The premium mode, on the other hand, relates to the frequency in which the insured pays these premiums. The total annual term life insurance premium tends to be somewhat higher when the insurance payments are spread out over a year instead of paid in a single lump sum. If you choose to break your annual premium into two or four payments, you will probably have to pay an extra couple of dollars per payment. Some insurance carriers may also charge a bank fee; so familiarize yourself with possible fees before making these decisions.

Coverage Amount or Face Value – This ‘coverage amount’ or ‘face value amount’ is the initial dollar amount that is chosen for the policy coverage for your California term life insurance policy. If you buy a term life insurance policy for $250,000 for example, that is the coverage amount or the face value, which is the amount that will be paid out to the beneficiaries that you have designated upon your death. Visit http://www.equote.com/li/termlifeinsurance-quote.html to learn how you can get a no-obligation quote for California term life insurance.

Guidelines for Underwriting – Underwriting guidelines are used by insurance companies to determine how to base their term life insurance coverage. These guidelines include many factors about your lifestyle, including your health and hobbies. Criteria for underwriting guidelines when it comes to California life insurance also typically includes age, gender, use of tobacco, weight and height, history of heart disease, diabetes, cholesterol, blood pressure and valve replacement in your family, your driving record, occupation, service in the military, any foreign travel or foreign residency and any felony or criminal activity.

Term Life Insurance For Californians

Term Life Insurance For Newlyweds

Term Life Insurance For Newlyweds

These days getting married brings about the joining of couples of many different circumstances. Of course there is the ever-traditional young couple fresh out of college who might have no other financial obligations other than student loans, rent and their vehicles. There are usually no children involved and life is just full of possibilities and opportunities that will be built together. Assets as well as bills will be accumulated as a couple.

On the other hand, there are now many couples who are remarrying for the second or third time and this is where things get more complicated. As newlyweds who are marrying for the second or third time are usually older, there is not only a blending of many collected assets and bills but more than likely a blending of children from both the husband and wife. There may even be dependents such as elderly parents who are being taken care of by either spouse.

In either scenario, starting a new life with someone not only brings on many emotional and personal changes but also a whole new spectrum of financial responsibilities. These new obligations, especially when children are involved, beckon for financial security if the unspeakable should happen – the loss of either spouse.

While no one likes to think about familial loss, especially when your new life together has just begun, it is important to plan ahead. Term life insurance is the most cost efficient way to plan for unpredictable loss. For young couples just starting out, term life is an inexpensive way to gain financial protection. Even if insurance seems unnecessary for a young couple where both partners are both working and there are no real financial obligations, it is actually the best time to buy since term life insurance is cheapest for the youth.

For those couples blending finances and children, purchasing a term life insurance plan is a “quick fix” until the whole new family situation can be assessed more thoroughly. As your true needs reveal themselves, you can change your plan accordingly. It is therefore important to make sure the policy you buy is convertible. If you already have existing life insurance, make sure you change the names of beneficiaries accordingly.

Some Tips for Newlyweds

For couples planning on having children it would be ideal to buy a term life policy that will keep your family covered until the children graduate from college. For the longest protection it would be advisable to purchase a 20 or 30-year level term policy. Level term policies stay unchanged from the original purchase price. The longer the coverage, the more costly the premiums, however, level term is still the most inexpensive coverage you can purchase. This is the best way for young couples or new families to get started.

The rule of thumb for purchasing coverage is usually 10 times your annual net income. However, the face value will obviously vary depending on your age and number of dependents you have now inherited or plan to have down the line. Only you can decide what your family would need.

While it seems tempting to rush off and buy the least expensive policy, especially as a short term alternative until your settled family’s true needs are revealed, it is important to make sure you go with a carrier that is “A” rated. Your best bet is to find a reputable broker who can advise you properly, especially if buying a level term policy. You want to make sure you buy a policy that is convertible, renewable and comes with a guaranteed period.

Certainly buying term life insurance may not seem a very romantic thing to think about as a newlywed, but in reality, coverage that protects you and your spouse against life’s unforeseen events is an important part of planning your life together. Assessing and addressing your insurance needs early on will help get your marriage off on the right financial footing.

Term Life Insurance For Newlyweds

Term Life Insurance For Those In Hazardous Occupations

Term Life Insurance For Those In Hazardous Occupations

As overall lifestyle is taken into consideration when applying for term life insurance coverage, one of the principals that underwriter’s evaluate when deciding to grant approval is your career. Applicants who risk their lives or are subject to potential disability on a regular basis will pay a higher term life insurance premium than the average person in relatively “risk free” occupations.

Hazardous Occupations

Many people must work in hazardous occupations as their primary source of income. Pilots, aviation or scuba diving instructors or firefighters are a few examples of high risk jobs. As unfair as it might seem, all these professionals can expect to pay higher term life insurance premiums. However, reasonable term life insurance coverage is still possible if you obtain necessary licenses and take safety classes. It is best to ask your insurance carrier about the necessary requirements so that you can meet them before applying for coverage.

Waiver of Premium Rider

For those of you who work in jobs that could potentially disable you physically, you may want to consider a “Waiver of Premium Rider.” By adding this rider to your term life insurance policy, your premiums will be waived should you become totally disabled. This type of rider is ideal for those who work in jobs such as metal or iron work or any hazardous occupation where you have to deal with chemicals, fire or specialized machinery.

Usually waiver of premium riders change along with any term life insurance policy premium changes (such as an increase due to age). The waiver of premium rider terminates on the renewal date closest to your 60th birthday. Learn more about term life insurance by visiting http://www.equote.com/li/termlifeinsurance.html.

Choosing a Term Life Insurance Carrier

If you work in a hazardous occupation, it is important that you do you due diligence when choosing a term life insurance carrier since you are in the “high risk” category. Not only should you make sure to choose an A or A+ rated, but it is also important to check what kind of “mortality table” the carrier uses. Mortality tables help determine the premiums you pay by measuring what kind of risk you are. Many term life insurance companies use older tables, for example, on 30-year old data. If your insurance company stays up-to-date they will employ a method called “clinical medical underwriting.” This method takes into consideration all the current medical advances and lifestyle choices that allow people with medical/disability problems to live long and productive lives.

Getting several quotes for insurance policies will ensure that you get the best term life insurance rates and coverage. Why pay more than you already do working in a hazardous occupation?

Term Life Insurance For Those In Hazardous Occupations

Monday, November 18, 2013

Term Life Insurance - Most Times It"s All You Need

Term Life Insurance – Most Times It’s All You Need

Term life insurance is a temporary life insurance covering specific period of time. In this type of policy the insured or the owner pays a premium for a period. The insurance company provides monetary benefit to the beneficiary in case of death of the insured during that period. It is the cheapest type of life insurance available to the general public. Usually the benefit received on death of the insured is income tax free.

There are four parties in term life insurance. The owner is the one who pays the premium. The Insured is the one on whose death, a death benefit(face value) will go to the beneficiary. The beneficiary is one who will receive the proceeds of insurance on death of the insured. The insurer is the company providing the insurance. Premium is the monthly or periodic payment made by the owner to the insurance company.

For instance, Amanda pays monthly 50 dollars to ABC Company for insuring the life of Bill (her husband) for a period of 10 years. In case Bill dies during the 10 years, ABC company will pay 6000$ to Jack (son of Bill and Amanda). Here the insured is Bill, the owner of the policy is Amanda, the beneficiary is Jack and the insurer is ABC Company. The premium is 50$ and the face value of the insurance is 6000$. In case Bill does not die during the 10 years, ABC Company will not be liable to pay any money to any of the parties involved. Often the owner and the insured are same. That is a person buys a policy to cover his own death and nominates a beneficiary.

Term life insurance is a legal contract with terms and conditions and assumed risks. Sometimes there are special provisions like suicide terms wherein on suicide of the insured there is no benefit accrued to the beneficiary. Term life insurance is based on two concepts, theory of diminishing responsibility and Buy Term and Invest the Difference (BTID). In Term life insurance the responsibility or liability of the insuring company reduces as the policy reaches its maturity. Term life insurance is the cheapest type of insurance policy available because there is no cash value at the end of the period. Studies have shown that the mortality rate in term life insurance policies is as low as 1%. Hence the concept of BTID. Rather than going for permanent life insurance (where on the expiry of period the owner will accrue some cash benefit and there is a savings component in it) it is considered cheaper to buy term life insurance and take care of the savings components by investing in other areas. With the present market giving good returns on investment, buying a term life insurance is a more attractive option than permanent life insurance. Term life insurance is available for a period of 5, 10, 20 years etc. As the age of the insured increases the premium increases. The premium is calculated based on mortality rate which is usually dependent on age, sex and whether the person uses tobacco. Most companies provide annual renewable term where in the term can renewed annually however the premium increases annually.

Term Life Insurance - Most Times It"s All You Need

Term Life Insurance No Physical - Really

Term Life Insurance No Physical – Really

Can you really get “term life insurance no physical” exam? Yes you can. The interesting thing is that most life insurance companies are jumping on the bandwagon. No physical life insurance has always been available to younger people. The older you get the smaller the amount available. What has happened is that one company made $150,000 of life insurance available online. It did very well initially. The actuaries from other companies went to work. They wanted to find out how far they could push the envelop. How much life insurance could they fairly safely offer online and at what ages.

Another carrier came up with policies which offered $250,000 coverage. Soon a few others joined the fray. It seems to be quite a profitable undertaking as the number of offers increase constantly. This, of course, is good for the consumer.

One guy came up with the idea that you can get $500,000 no medical life insurance online. This may be so, but I question whether this is so. I do because what he is doing is suggesting that a person can buy $250,000 from one company and the immediately go and get another $250,000 from another carrier. The problem about that is that when you buy a life insurance policy medical information about you is put into the Medical Information Bureau’s Database. If you apply to one company and they find that you just purchased no medical exam term life insurance from another company they are likely to ask for a complete medical examination.

Incidentally, when you apply for your policy you give the carrier permission to get relevant information on you. You, in fact, permit them to get an Inspection Report.

Why do life insurance companies offer life insurance and ask for no medical exam? It is simply very profitable, if the applicant is in fairly good health. Just think, they eliminate the fee they would need to pay the doctor, paramedic or nurse to check out applicants. In addition they are protected by the “incontestability” clause which states that if the applicant fails to disclose information that would prevent them from issuing the policy they can withdraw it within a specific period of time, usually one or two years.

The no physical term life insurance policies issued are usually level term policies. 10 year term, 15 year term, 20 year term and 30 year term are quite popular. The premiums never increase and the face amounts of the policies never decrease. These are the term policies most selected when the applicant needs a medical as well. The ages at which these policies are issued are usually between age 18 and age 60. The ages and type may vary a bit depending on which life insurance company you are looking at.

So “term life insurance no physical” is a good idea for all parties concerned, as long as the applicant is honest.

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For additional information on no medical term life insurance go here:
http://www.lifeinsurancehub.net/no-physical-term-life-insurance.html

Term Life Insurance No Physical - Really

Term Life Insurance, Providing Your Family With Financial Security

Term Life Insurance, Providing Your Family With Financial Security

When it comes to unexpected death, which is naturally everyone’s favorite subject, term life insurance is the most economic approach to providing your family with financial security. Thanks to low monthly premiums, the amount of benefits offered through term life insurance is significantly higher than whole life insurance. But did you know that not all term life insurance policies are the same or that there are term options that you can include in the your coverage?

The insurance market is filled with various term life insurance companies, and each boasts it’s own set of rules, regulations, and guidelines. And rates, levels and options vary from company to company as well. What may seem like a “real bargain” may in up costing you more in the long run if you do not read the policy terms. Check out a few of the things that you will want to keep in mind when determining which term life insurance plan is right for you.

Annual Renewable Term – Annual renewable term life insurance is renewed every year. The premium is based upon one year of coverage, but the policy is guaranteed to be renewed for a certain number of years. Premiums increase with age. So, if you make it to the ripe old age of one hundred, expect your term life insurance premiums to skyrocket under this insurance plan.

Level Term – Level term life insurance features premiums that are the same amount throughout the length of the policy period. The longer the time frame of the coverage, the greater the premiums.

Conversion Privileges –Various life insurance companies offer an option on their term life insurance that allows the policy holder to convert their coverage into a permanent life insurance policy-these clauses are called conversion privileges Permanent life insurance builds equity for the insured in comparision with term life insurance which simply offers insurance without the option of cash annuity benefits.

Life Insurance Companies – Thoroughly investigate the life insurance company offering you coverage. This is particularly true if you are receiving online life insurance quotes from a third-party website. Visit each company’s website and take a look-see. Is the insurance company listed in your local Yellow Pages? Are there agents representing the insurance agency located in your area? And do they appear to be a viable entity that will be around for a long while?

Compare term life insurance policies and companies before you purchase something. Be as picky about the policy parameters and the insurer as life insurance companies are about insuring you. When it comes to life insurance companies, famous names are all apart of the game, but do not let their name recognition lull you into a sense of security. Treat finding the optimum term life insurance plan as you’d treat finding a really killer pair of shoes-shop.

Term Life Insurance, Providing Your Family With Financial Security

Term Life Insurance Quotes Online

Term Life Insurance Quotes Online

Getting a term life insurance quote online is as quick as the click of a mouse. You can avoid feeling pressured by any salesman because you control the whole process.

With so many insurance companies online, you can log onto the various sites and check out the rates for the term life insurance quote you want and compare the prices. But the easiest way to do it with one click, is to find an independent term life insurance broker such as ourselves. With only one click you will receive a term life insurance quote online from all the companies quoting on your life.

What Do I Need To Supply For A Term Life Insurance Quote Online?

When a term life insurance carrier is deciding whether they will issue a policy and how much to charge you, there are certain factors that go into their consideration:

1. Age

2. Occupation

3. medical history

4. smoker or non smoker

The carrier looks to see what factors affect your health. Are you a smoker? Did your parents die young? Do any of your relatives suffer from a heart disease or cancer? Or has some blood relative suffered a stroke?

Younger people will be charged lower premiums because of the unlikely event of their death. Obviously the risk increases as you age.

Your occupation generally does not have a bearing on your term life rate, but it certainly will if you also apply for disability insurance. Again your medical history is important no matter what your age. If you have health problems or your parents died early, you can expect to be rated or asked to supply medical reports.

Smoking is a health hazzard and, when buying even cheap term life insurance, you’ll find it also a financial hazard. Expect to pay up to twice what a non smoker would pay.

Will I Have To Take A Medical Exam For Life Insurance?

The term life insurance carrier will examine your medical history to see any evidence of past injuries, diseases, or operations. Generally the higher the amount and greater the age, the greater the demand for a thorough medical. This levels the risk taken, no matter what type of insurance you buy but that included will not be in the term life insurance.

Term Life Insurance Quotes Online

Term Life Insurance Rates - The More You Know The More You Save

Term Life Insurance Rates – The More You Know The More You Save

If you’re in the market for a term life insurance policy, here are a few money saving tips to help you keep the premiums down.

1. Buy when you are young healthy: Life insurance rates, although they contain fees, and a myriad of expenses, are primarily based upon the statistical chances of a person dying in a given year. Insurance companies use their own experience plus the statistical information collected by the government. The statistics are used to calculate the yearly ‘cost of death’ for each $1,000 of life insurance benefit. As people grow older, the chances of dying increase. At first the increase is slow up until middle age, and then the chance of death increases more rapidly. As the chance of death rise, so do the premiums.

2. Quit smoking: Smokers’ premiums are nearly three times as expensive as non-smokers. Staying away from cigarettes a week or two before your company physical won’t do. Urine tests will detect traces of nicotine (yep, this means chewing tobacco too). Most companies require you to be smoke free for a minimum of one year. Some companies require two years.

3. Lose weight: Companies don’t charge by the pound, but you may be charged more if your weight exceeds a certain level.

4. Buy direct: The internet has made it easy to shop around for life insurance policies directly. By eliminating the middle person, you save on salespersons commissions which are built into the policy premium.

5. Healthy people don’t need ‘guaranteed issue’ policies: People with medical conditions may want to purchase guaranteed issue policies. These policies do not require a medical exam and tend to have higher premiums. The company is taking more of a risk because they don’t know your true medical condition. However, if you are healthy, take the exam. It will prove that you are a good risk and your rates will be lower.

Term Life Insurance Rates - The More You Know The More You Save

Term Life Insurance - Save Money the Smart Way

Term Life Insurance – Save Money the Smart Way

Term life insurance is the easiest type of life insurance to understand. To put it simply, the insured person pays a minimal premium per thousand dollars of coverage on an annual, semi annual, quarterly or monthly basis. If he or she dies within the term of the policy, the life insurance company will pay the beneficiary the face value of the policy.

Distinctive Features of Term Life Insurance

To better understand some of the distinctive features of term life insurance consider the following points:

First, term life insurance is “pure insurance” because when you purchase a term insurance policy you are only buying a “death benefit”. Unlike with other types of “permanent insurance” such as whole life, universal life, and variable universal life, there is no additional cash value built up with this kind of policy. Term insurance only gives you a specific death benefit.

Second, the coverage is for a defined period of time (the “term”) such as 1 year, 5 years, 10 years, 15 years, and so on. Once the policy is in force, it only remains in force until the end of the term — assuming you pay the premiums, of course.

Third, most term insurance policies are renewable at the end of the term. With what is known as “Level Term Life Insurance”, the death benefit remains the same throughout the term of the policy, but since the insured person is getting older, the premium will gradually increase. As time goes by the cost of a level term insurance policy may become greater than you are willing to pay for a simple death benefit. An alternative is the “Decreasing Term Life Insurance” policy in which the premium remains the same, but the death benefit goes down as time goes by.

Fourth, most term policies can be converted to permanent policies within a specific number of years. If you decide it is important to retain the insurance coverage, converting may be something you should plan for. You can anticipate the accelerating cost of term insurance premiums and convert your policy before the premiums become prohibitively high. It is true that in the short term the premium will usually be higher than if you stayed with the term policy. But over the long term this difference will decrease because of the rapid acceleration of the term insurance premium as you get older. A permanent policy also accumulates cash value which increases the total death benefit paid to your beneficiary.

Popular Uses of Term Life Insurance

Term life insurance is most appropriate whenever you want to protect your beneficiaries from a sudden financial burden as the result of your death. Here are some of the most common uses of term life insurance.

Personal Costs Due to Death – When a spouse or family member dies there will be immediate costs. Many people purchase a relatively small term life insurance policy to cover these costs.

Mortgage Insurance – Banks and financial institutions often insist that mortgage holders retain a term life insurance policy sufficient to pay out their mortgage. Such policies make the bank the beneficiary of the policy. If the mortgage holder should happen to die before the mortgage is paid off, the insurance policy will pay it out. This is also a great benefit to a spouse whose earning power will likely be decreased due to the death of his or her partner.

Business Partner Insurance – Term insurance is also used by business people to cover outstanding loans with their bank, or to purchase a deceased partner’s shares on death, if they had an agreement to do so. Most partnerships have an agreement of this sort, and the policy premiums are paid by the business.

Key Person Insurance – When a company loses key individuals due to death, this can often result in hardship to the company. Key person insurance is purchased by the company for any individual it deems to be “key”. The company itself is made the beneficiary of the policy. So when a “key” person dies, the company receives a cash injection to handle the problems associated with replacing that person.

Getting a Term Life Insurance Quote

Here are some things to look for when getting a quote for term life insurance:

1. The cheapest rate today will not be the cheapest rate tomorrow. For instance, the cheapest premium today will likely be for a Yearly Renewable Term policy. This policy is renewed every year at which time your premium is also adjusted upwards. This is fine if you intend to convert to a longer term solution (permanent insurance) in a year or two, or if you have a very short term requirement for insurance. But if you think you will need this insurance for a longer period, you would be better to commit to something like a Ten Year Term Policy. This locks your premium and death benefit in for ten years. Your rates will not increase until you renew.

2. Compare coverage and premium projections for different policies. Think about the long term and get the coverage that saves you money in the long run.

3. Make sure you completely understand the conversion options built into the different policies you are considering. Most policies will let you convert part or all of your term insurance into permanent insurance within a specific period of time, and without the need of a medical examination.

4. For some situations you should consider options such as Decreasing Term Life Insurance in which the death benefit decreases as time goes by. This makes sense if the policy is being used to cover a mortgage or business loan.

Term life insurance is not the answer to all life insurance requirements, but it should be part of a sound plan for every person’s financial future.

Term Life Insurance - Save Money the Smart Way

Term Life Insurance vs. Permanent Life Insurance

Term Life Insurance vs. Permanent Life Insurance

Choosing a life insurance plan is difficult; it takes a lot of time and research in order to ensure that all aspects are thoroughly examined before making a final decision. There are basically two forms of life insurance to choose from: term life insurance and permanent life insurance.

Below you will find valuable information regarding both forms of life insurance as well as other helpful information which will assist you in deciding which form of life insurance is best suited for you and your situation.

The first thing to do is to research and understand the concept of both forms of life insurance. These two forms of insurance have been compared to buying or leasing a car. Term life insurance is much like leasing a car, you can purchase insurance for a specific number of years, but once those years are up, so is your insurance coverage. Permanent life insurance is similar to buying a car. When you buy a car, it’s yours and you can drive it forever if you like. Permanent life insurance stays with you until you die.

Depending on your situation, each form of insurance can be very beneficial and offer many great opportunities. Below you will find a more in-depth explanation of each form of insurance providing advantages and disadvantages of both.

Term Life Insurance

Benefits
•    Term life insurance is inexpensive and can cost a considerable amount less than permanent life insurance.
•    There are no strings attached with this form of insurance and you are free to stop paying whenever you want.
•    You can begin using term insurance and if you feel like you want more coverage, you can then convert to permanent life insurance if you wish.

Downfalls
•    Term life insurance only provides coverage. There are no other rewards and there is no cash value.
•    Yes you are free to stop paying whenever you please, but should you choose to do so you will no longer have any life insurance coverage.
•    Term prices increase at a rapid pace as you get older and as you get older, your need for this type of insurance will become more and more crucial.

Permanent Life Insurance

Benefits
•    Permanent life insurance can accumulate into cash value and savings. Any cash value which you receive will be tax deferred.
•    There is no risk involved in this form of insurance. Your loved ones will receive a death benefit regardless of when you pass away, whereas term life insurance will only pay out if you happen to be covered when you die.
•    You can borrow the cash value you receive to pay for college, a vehicle, etc. You can do this without receiving a penalty for doing so.

Downfalls
• The most noticeable disadvantage to permanent life insurance is the cost. This form of life insurance will cost you a great deal more than term life insurance.
• Should you decide to forgo your permanent life insurance coverage, you will be required to pay a large penalty which will be bounded by law.

Term Life Insurance vs. Permanent Life Insurance

Sunday, November 17, 2013

Term Life Insurance With No Exam

Term Life Insurance With No Exam

Everyone wants a painless and easy approach when it comes to purchasing life insurance. That can actually be a reality if you know what to look for when shopping for life insurance. The painless part has every thing to do with the cost. Term life insurance is by far the least expensive of all forms of life insurance. Easy has everything to do with making a life insurance purchase that is simple and time saving. That points to purchasing insurance that requires no medical exam. These are called the non-medical limits by most insurance companies. That’s the good news. The bad news is that the non-medical limits get very restrictive as you get older. Life insurance companies need examinations to underwrite policies as we get older.

If painless and easy is your goal then it behooves you to shop for the largest face amount of life insurance that you can purchase without a physical exam. The medical insurance bureau is used by almost all life insurance companies to investigate the medical background of all of its applicants. The MIB may have medical information on an applicant that may eventually require a medical examination or a rejection of the application. Do not seek a non-medical insurance policy to hide a pre-existing condition. A future claim may be denied because of misrepresentation on the application.

Try the marketplace and research the non-medical limits. If you are in good health and have no pre-existing condition then a life insurance purchase without an exam is a definite time saver and will make life easy for you and the insurance company. Make sure that you divulge all of your medical history on the application as well as your primary care physician. Annual physical exams and regular medical check ups are viewed as a positive by life insurance underwriters. There you have it. You have enough information to implement a painless and easy strategy for your next term life insurance purchase.

Term Life Insurance With No Exam

Term Life Insurance With No Exam – Can You Even Get That?

Term Life Insurance With No Exam – Can You Even Get That?

The answer to that question is often no. Term life insurance is not usually, if ever, something you can just pick up the phone and order – and if it is, be skeptical! Most reputable term life insurance companies require potential policy holders to undergo a medical exam as part of the application process; however, this is not something to worry about.

Depending on your physical condition, your location, and the term life insurance company you are making your application to, you may be able to receive the medical exam in the comfort of your own home. The medical exam required of term life insurance applicants is usually not a long process – all in all, expect the exam to last anywhere from 15 to 30 minutes. More good news is that your term life insurance medical exam is usually free.

When you head out for your term life insurance medical exam, you can expect several things – all of which are normal of any general medical exam. The doctor will weigh you and measure your height, take your blood pressure, and will most likely take samples of both your blood and your urine. You will be asked questions about your medical history so you may want to take certain information with you for easier reference. Be prepared to discuss any past or current medical conditions you have, any surgeries you have had, medications and/or medical treatments you are currently taking or have taken in the past, and possibly your family’s medical history. You may also be required to provide contact information of previous and/or current health care professionals by whom you have been treated.

You may be a bit hesitant to provide such personal information to a doctor that you may not even know; however, rest assured that all information is confidential and used only for your term life insurance application. The doctor will send the information directly to the insurance company.

Term Life Insurance With No Exam – Can You Even Get That?

Term Life Insurance With Return Of Premium

Term Life Insurance With Return Of Premium

Term life insurance has always been known as a “pure insurance” because it is strictly paid upon death with no cash value if left unused. Term life insurance is relatively inexpensive for this very reason. You are paying for peace of mind and protection, knowing your family would be financially secure upon your untimely death. In the event that you are still alive at the end of your “term,” any premiums paid over the years are basically gone. Ultimately, you paid for something you did not end up needing. Those who are unhappy with that notion typically end up buying other types of life insurance such as permanent life or whole life insurances. Unlike term life insurance , these two options are “owned” and develop cash value over the years. You can even borrow against some of the policies if you have accrued enough credit.

The beauty of term life as opposed to permanent or whole life is of course the lower premiums. Cash value policy premiums are significantly more costly. Because many applicants were unhappy that they had to choose one or the other (no cash value versus something that offers some type of savings account), many insurance carriers developed a happy medium. This new offering is called Term Insurance with Return of Premium (ROP).

Benefits of Term Life with ROP

Term Life Insurance with Return of Premium (ROP) actually has more in common with forms of permanent life insurance than with true term life with a pure death benefit.

A Term life insurance with ROP policy offers partial or complete return of premiums in a lump sum if the insured is still alive at the end of the guaranteed level period, usually 15, 20 or 30 years. As with traditional term life, if the insured dies during the term, the death benefit is paid as with traditional term life insurance without a return of premium.

Term life with ROP works almost the exact same way as any other cash value policy. Premiums on this type of policy are much more costly because policy owners are refunded the premiums paid over the term if said policy owner is still alive. Like permanent life insurance, extra premiums are set aside in a savings account accumulating to an amount of money equal to the premium paid by the end of the term. While Term life with ROP serves as a type of savings account, keep in mind that the return is substantially less than other investment arenas such as stock potentials.

Aside from acting like permanent life insurance in terms of being a savings vehicle, some ROP products also allow loans on a percentage of accumulated premiums already paid. ROP policies are appealing to people who lead healthy lifestyles as they believe they will live past the term and receive the large refunded sum. Healthy owners of the ROP products plan to apply their lump sum amounts toward future expenses, such as college tuitions, weddings, opening a business, trips or a house down payment.

Check with your financial advisor if you think Term life insurance with Return of Premium might be the right choice for you. You may also obtain an online quote in minutes.

Term Life Insurance With Return Of Premium

Term Life Insurance With Return Of Premium

Benefits of Term Life with ROP

Term Life Insurance with Return of Premium (ROP) actually has more in common with forms of permanent life insurance than with true term life with a pure death benefit.

Check with your financial advisor if you think Term life insurance with Return of Premium might be the right choice for you. You may also obtain an online quote in minutes.

Term Life Insurance With Return Of Premium

Term Vs. Whole Life Insurance

Term Vs. Whole Life Insurance

Life insurance as a risk mitigation element provides protection against casualties in life. The history of life insurance began with providing coverage for a particular period of time, and if the insured died during the period, the beneficiary got the death benefit. The disadvantage was that the period was limited, which led to the innovation of new products that gave death protection coverage for the entire life of the individual.

In term insurance, the premium increases during the time, as the chances of death are greater. The term policies include renewable, which means the policies can be renewed after the period with a higher premium; decreasing policy in which coverage lessens each year; and convertible in which the policy can be converted to cash value policy after the period. In whole life, the premium remains constant for the entire life. Generally, the premium for the whole life is higher than that of term.

The premium for term increases to cover the cost of the insurance. Therefore, in the beginning, the premium is less and it increases thereafter. In whole life insurance, the premium is higher than the cost of the insurance in the beginning. This extra amount is kept as a cash value component, which is invested to get an annualized return of 5-6%. In the latter years, when cost is more than the premium, money is taken from the returns of the cash value component and the cost is recovered.

The benefit of term is that since the premium is less, the extra money can be prudently invested elsewhere to get a higher return by the individual. Whole life provides cash value, which can be used to borrow money to spend for other purposes such as education of children. There are many innovative policies that provide many features such as guaranteed returns and dividend payments.

Before deciding between term and whole life insurance, it is important to consider the financial resources and the objective of the insurance policy. It depends upon the age of the insured, his or her future needs and the number of dependents.

Term Vs. Whole Life Insurance

Term vs. Whole Life Insurance - Which Is Best For You?

Term vs. Whole Life Insurance – Which Is Best For You?

If you are looking into purchasing life insurance, you have probably heard about both term life insurance and whole life insurance. Before you decide on one or the other based on what you have heard or what your insurance agent tells you, you need to understand the meanings of “term” and “whole,” and familiarize yourself pros and cons of each one (and how these pros and cons will affect you).

First, we have term life insurance. It covers its policyholders for a certain amount of time, and that time can be up to 30 years. It costs much less than whole life insurance and policyholders can be covered by level-term premiums and annual renewable premiums. With level-term premiums, the premiums stay the same throughout the duration of the policy, whereas with annual renewable premiums, the premiums increase as the policyholder ages.

Next, we have whole life insurance, which combines term life insurance with an investment component. There are two elements involved with whole life insurance—the mortality charge, which pays for the insurance coverage, and the investment component, which earns interest and claims to act as a savings mechanism. However, as the policyholder ages, the mortality charge increases and the investment component decreases. Plus, the cash surrender value (the amount you would get back if you cashed in your policy) is not always what it appears to be. It fluctuates with markets, making its relation to reality a difficult one.

In the end, if you are on a budget and in search of a good, affordable life insurance policy, term life insurance is probably the best option for you. It is affordable and does not include more coverage that what you actually need. However, if you are wealthy enough to purchase whole life insurance, it can act as an estate-planning vehicle, applying the proceeds to your estate taxes rather than leaving your family to fight in out with the government.

Another problem is that whole life is extremely expensive, and if you’re on a limited budget, you may not be able to afford all the insurance coverage you actually need.

Wealthy people sometimes use whole life policies as an estate-planning vehicle. They can set up an insurance trust, which applies the proceeds of the policy to their estate taxes when they die. That can save their heirs the considerable expense of settling the estate with Uncle Sam.

Term vs. Whole Life Insurance - Which Is Best For You?

Term vs. Whole Life Insurance – Which Is Best For You?

Another problem is that whole life is extremely expensive, and if you’re on a limited budget, you may not be able to afford all the insurance coverage you actually need.

Term vs. Whole Life Insurance - Which Is Best For You?