Archive for the ‘Life Insurance’ Category

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Choosing your whole life insurance cover

Wednesday, August 18th, 2010

You are considering buying a whole life insurance policy. The agent prepares and prints out an illustration. It is 10 pages long with rows of columns and terminology you have no idea about. What should you focus on? Let’s take a look.

A whole life insurance policy is a staple of the industry. It is a policy that carries not only a death benefit, but allows you to build up savings within it that are invested to grow tax free in different ways. The policy is more expensive than a term life policy, but comes with the tax free growth advantage that is not available with the term version.

The first thing to look at with these policies is the premiums. A policy is only helpful to you as long as it is in force. If the premiums push the bounds of what you can realistically afford, you are probably going to end up dropping the policy. That more or less defeats the purpose of buying it in the first place!

The second thing to consider is the cash value column. This is projection of how money will grow in the policy as you pay premiums per the dictated schedule. Importantly, this is just a projection and you should treat it as such. I personally tend to view it as a marketing tool in that the numbers tend to entice one to buy the policy with great expectations.

To know what the insurance company really thinks about the growth potential, you’ll need to focus on the guaranteed cash value. This is exactly what it says. The life insurance company will guarantee this growth, which you should then treat as the bottom line value of the policy. Hopefully you will do better, but at least you know this is where the bottom line can be found.

The final column to focus on is the surrender fees. This is an arbitrary fee that the insurance company charges for termination of the policy or, more importantly, the withdrawal of money from the cash value. You want to make sure this fee isn’t going to eat too much of your cash value.

Whole life insurance policy illustrations can be intimidating. Don’t let them be. Focus on these four issues and you should do fine.

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Help with life insurance

Wednesday, August 11th, 2010

People searching for life insurance may be very weary that they are going to become the victim of an insurance scam. Of course, this is always a possibility, but with the right amount of research and information you will be able to make sure that you can get a life insurance plan without wasting your money or falling victim to a horrible scam. The first problem that you are going to face is finding the best provider because there are literally thousands of them in the United Kingdom at the moment.

One of the first things that you are going to need to do is get some advice on life insurance and if you could benefit from it. Thee first thing that you should be doing is taking a look at some websites that are dedicated to providing people with information on life insurance. By taking a look at these websites you are able to get a lot of very useful information about what you should and shouldn’t be looking for and also what you should avoid. This will be very beneficial to you when it comes to finding a good provider for a life insurance plan.

The next thing that you should do is a Google search for websites that offer free advice for those searching for a life insurance policy. Again, there are many of these websites around at the moment, so you could get a lot of useful information from these websites. There are usually sections where potential customers can ask questions about life insurance policies, so this is a good place to look. As well as this you can look at customer testimonials on different websites as you will be able to get an idea of whether or not you should be contacting that company.

A final thing that you can do is take a look at the Frequently Asked Questions sections of as many different life insurance company websites as you can. This is a good idea for several reasons. Firstly, a FAQ section is very likely to answer any questions that you could possibly have about life insurance. This is because the questions are user submitted by customers, so they will usually have a lot of very useful information about the company and life insurance in general in these sections. If you can look through lots of FAQ sections then you are more likely to get some very useful information from them.

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Life Insurance v’s Disability Insurance

Wednesday, August 4th, 2010

It is quite true that life is full of uncertainties’ but mankind has developed its own way to address the issue. “Insurance” is the buzz word here. It promises you to protect you and/or your dependents against the eventualities of life. Risks are associated with every step we take in life and hence insurance companies continue to make insurance policies to cover every possible risk. In fact a common man today has to buy load full of insurance policies to cover the risk of his life, his car, his house, his employment, his medical cost and so on.
Nevertheless all these Insurance policies are very important not only for our peace of mind but to also overcome any practical difficulty we might come up against. In this article we will discuss about ‘Disability Insurance’ which still is in its infancy days and may not be much popular but still absolutely necessary.Life insurance v's disability insurance

People often confuse ‘Disability Insurance’ with ‘Life Insurance’ and fail to understand its importance. In case of ‘Life Insurance’ the insurance company pays a set amount of money in case of early death of the insured to his family. Be it a horrific car accident or a plane crash or even if one was choked to death laughing, insurance company would pay dependents of the person insured a set sum. It will help the family maintain same standard of living even when the main earning member of the family is not around.

Now think of a situation where you are involved in that horrific car accident or a plane crash and by God’s grace manage a miraculous escape but unfortunately get disable for rest of your life. Now not only it will be difficult for you to support your family while you are in this trauma, but even after you have recovered mentally out of this situation, your permanent disability would restrict your capability to earn money. Further, your immediate family members will also need to spend more time with you to take care of you, which in return will also affect their earning ability. In this situation you cannot lay a claim on your ‘Life Insurance’ company because you are still very much alive and your Life Insurance policy will prove to be of no use.

Ideally there should be a single policy which covers both of the above situations but world still remains an imperfect place and the only option available to you would be to take both these insurance policies separately. There is also a possibility that your employer has covered you for a Disability Insurance and you do not know about it. So please check with them before taking as Disability Insurance policy.
We all must understand that ‘Disability Insurance’ and ‘Life Insurance’ are not substitute of each other. In fact these both complement each other and have completely distinct features to cover two different eventualities of life.

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How critical is Life Insurance

Thursday, July 29th, 2010

Immortality is no big deal. Just imagine getting up on a Monday morning 52 times a year for the rest of eternity. Really only two advantages of eternal life spring to mind – you could start reading ‘War & Peace’ and know that you would have time to finish it, and you wouldn’t need life insurance. However, as mere mortals, maybe we shouldn’t start on a very long book and we should take out life insurance, because we none of us know just how long we have got.

Not particularly cheerful advice, but very practical. Can you really face the idea of departing this life and leaving behind little more than the memory of you? If you have family or other dependants, it is vital that you provide for their futures especially if you are the main breadwinner. The trauma of the loss would be quite enough for anyone to cope with, without having to worry about how they are going to manage financially, and maybe even contemplate the loss of their home.

So if you haven’t got adequate life cover or perhaps have no life insurance of any sort, you should take action to correct that situation without delay. Perhaps you have considered it and perhaps you have even had a look at what is available, and then put off doing anything about it because there are too many options and it is difficult to know which to opt for. This is absolutely understandable because there are so many variations that anyone could be forgiven for being confused – but procrastination will not put food on the table for your dependents when you are gone.

So you need information. The following is a general guide to what is available, which should enable you to decide more or less which types of cover may be best suited to your needs. The fine detail is avoided because that is best left to the experts, whom you should be able to approach with a rough idea of what you are looking for, and equally important, which types would not be suited to your needs.

Term insurance in one of its forms is likely to meet most needs. Its name indicates that it provides cover for a period which is agreed between the company providing the policy and the insured individual. At the end of that term all cover ceases and there is no cash value remaining. Payment against the policy will usually be in the form of a lump sum on the death of the insured.

There are a variety of different forms of cover available under the umbrella name of term insurance, of which the following are the more usual examples.

Family Income Benefit is one of the best and must have been developed with bereaved families in mind. The death of the policy holder during the term of the insurance releases a tax free sum which will be paid every year right through to the end of the term. Costs for this type are at a minimum because the term during which the payments would be made is constantly reducing.

Level term insurance is very straight forward. It is well suited to covering the capital portion of an ‘interest only’ mortgage, because the value of cover is determined at the outset and is retained for the whole of the term.

A Decreasing Term policy on the other hand is better suited to covering a repayment mortgage, as it decreases in value over the term to nil at the end, effectively shadowing the reducing balance of the mortgage. The premiums are correspondingly low.

An Increasing Term mortgage maintains its value throughout the term by taking the effects of inflation into account, and is best suited to fulfilling a lump sum requirement at a constant value. The premiums are correspondingly high.

Finally it is worthwhile mentioning Whole of Life cover which is not actually term insurance, as the cover provided is effective to the end of the life of the insured person, subject only to the premiums being paid as due. The insured amount, plus the value of any benefits accruing to the investment, is paid out on the death of the insured

The above few examples give a generalised guide to some of the policies which are available, and should allow you to talk to a broker and discuss your needs in detail. It may well be that more than one type of cover will be required to meet all your needs, but find a brokers via the internet (which is an excellent source), and they will provide guidance.

Once settled you can relax, content that you have taken care of your dependents needs, and if you are really adventurous you could start reading ‘War and Peace’!

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Life Insurance – 10 reasons why you need it.

Monday, July 19th, 2010

Insurance coverage is designed to guard an individual and the family from disasters and financial burdens. There are many sorts of insurance coverage of which, the basic and most essential is taken into account to be life insurance. It gives for the dependants after your death.

Since there are specific financial commitments it is advisable to meet all through life and do contribute not directly to the family income, you could present something even in loss of life-to safe the house, assist the household meet expenses for a while, defend dependant dad and mom, or secure the children or spouse.

Monetary obligations could embrace funeral bills, unsettled medical payments, mortgages, business commitments, assembly the faculty bills of the kids, and so on.

How much whole life or term life insurance coverage an individual needs would vary, relying on way of life, financial needs and sources of earnings, money owed, and the variety of dependants? An insurance coverage adviser or agent would recommend that you take insurance coverage that amounts to 5 to ten occasions your annual income. It is best to take a seat down with an skilled and undergo the the reason why you should take into account insurance coverage and what kind of insurance planning would benefit you.

As an necessary a part of your financial plan insurance coverage provides peace of thoughts for any uncertainties in life.

  1. Life insurance appropriately deliberate will on untimely dying present funds to cope with monies due, mortgages, and living expenses. It provides safety to the family you permit behind and serves as a cash resource.
  2. It secures your hard earned property on demise by offering tax free cash which could be utilized to pay estate and loss of life duties and to tide over business and private expenses.
  3. Life insurance coverage can have a financial savings or pension element that gives for you throughout retirement.
  4. Some insurance policies have riders like coverage of essential illness or term insurance coverage for the kids or spouse. There are certain rules relating to eligibility for riders which you have to to find out clearly.
  5. Having a sound insurance coverage is considered as monetary belongings which improves your credit rating when you need medical health insurance or a home mortgage or enterprise loan.
  6. In case of chapter, the cash worth in addition to dying benefits of an insurance coverage is exempt from creditors.
  7. Life insurance coverage might be planned such that it’ll cover even your funeral expenses.
  8. Term life insurance coverage has double benefits, it protects and you may get your a refund throughout strategic points in your life.
  9. Insurance coverage protects your small business from monetary loss or any liabilities in case a business companion dies.
  10.  It may contribute towards maintaining a household’s life fashion when one contributing accomplice suddenly dies.

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Comparing Whole life and Term life insurance

Wednesday, July 14th, 2010

A whole life insurance clarification should be desired reading for anybody going to get life insurance. Whole life, in my opinion, has lately received a nasty reputation. Folks seem to buy term life insurance as it’s less expensive. Although I believe that a good term insurance can deal with the insurance wants of most individuals, a first-rate whole life insurance coverage is worthwhile having a look at.

The death benefit of a whole life insurance coverage is guaranteed to remain level with the period of the policy. If you consider it, that means a lifetime. That sort of promise cannot be taken lightly. The premiums of your whole life insurance plan is also assured never to rise. This is moreover a very necessary characteristic. The coverage won’t ever be cancelled by the insurance company.

Once you evaluate the whole life insurance rates you have got, probably the most affordable shouldn’t be at all times the very best one to decide on. They are often somewhat reasonable on account of the payment of premiums stretches out over an prolonged interval of time. When you are comparing the online life insurance quotes you get, you should not simply think about the amount of the month-to-month premium but the length of time that you must pay the rates for.

As the majority of whole life insurance policies are participating policies, you gain dividends on your policy. Every year the life insurance firm declares a dividend, some of which goes to policy house owners who possess a whole life plan. You may take your dividend in cash, the company can ship you a check each year, you’ll leave the dividend to build up interest, or else you can select to buy paid up additions alongside together with your dividends. Paid up additions are single premium policies of the identical kind, that is whole life insurance.

With a purpose to see just how much of a death benefit you might like through whole life insurance, you must sit back and consider how much cash your family would need to survive after you will be gone. You have to have a look at the truth that the bills nevertheless should be paid and your salary will no longer be around. The amount of the death benefit is among the facets that does affect the value of the whole life insurance estimates you collect. Different factors comprise your age, occupation and physical condition.

For a whole life coverage, you’ll be able to put in an accidental death benefit rider which says that for those who might pass on in an accident the insurance firm can pay your benefit to the value of two times the quantity of life insurance you made an application for.

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Life Insurance Plans – Learning the difference

Monday, July 5th, 2010

Today, almost everybody owns a Life Insurance policy. It could be for various reasons like investment purposes or for tax benefits, but the key point is that it provides complete peace of mind. With life insurance plans, one does not have to worry about their family’s future security in their absence. Life insurance plans provide financial security to the surviving family members after the death of the insured.

Life insurance is a must for anybody who has financial dependents. The age bracket to buy a life insurance plan is approximately from 18 – 75 years of age. Most of the banks have a minimum and a maximum amount of money to be assured.

Types of Life Insurance Plans

Broadly, the two main types of life insurance policies are term life insurance and whole life insurance. Term Life Insurance Plans are the most basic and simplest plans. These plans provide a cover for risks only for a short period of time. After the term comes to an end, you can renew the plan but chances are that the premiums will rise. Term life insurance plans are economical.

On the other hand, Whole Life Insurance Plans are expensive but these policies continue for as long as the insured lives. Whole life insurance plans are sometimes treated as investment options because one does not receive any money till the death of the insured.

Other insurance plans include unit link life insurance plans that offer great investment options along with financial security. Usually, one has to pay two separate premiums – one for the life insurance and one for investment. These plans are beneficial as they provide financial solutions during your lifetime as well as after your lifetime to your family members.

There are retirement life insurance plans available for senior citizens too. Life insurance policies are extremely important for such people as these plans offer security and freedom to the surviving spouse.

Child plans are another choice in life insurance plans. These policies provide financial aid for your child’s education, marriage, etc. Another option in life insurance plans are the health insurance policies. Health insurance policies provide a cover for medical expenses. These plans are suitable for people who suffer from health problems like diabetes, cancer, etc.

Riders in Life Insurance

Riders are the additional benefits that one can add to their life insurance policies. However, the premium amount increases with the inclusion of these riders. There are several types of riders in life insurance plans offered by banks. The most popular of all are:

Critical Illness Benefit Rider: It offers financial aid in case the insured gets diagnosed with critical diseases like cancer, heart attacks, kidney failure, etc.
Accidental Death and Disability Benefit Rider: In case the insured becomes disabled following an accident, this rider covers this risk.

Tax Benefits

Tax benefits as per the Income Tax Act, 1961 offer a deduction in the premium amounts, investments, dividends, etc. However, these benefits are subject to amendment regularly.

Life Insurance Plans protect the needs and requirements of your loved ones in case of unfortunate events. It helps keep your family safe and secure even when you are not around.

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Life insurance after being diagnosed with cancer

Tuesday, June 29th, 2010

The American Cancer Society estimates doctors will diagnose over 1.4 million new cases of cancer in the U.S. in 2007, with more than 559,650 cancer-related deaths. If you are among the majority of cancer patients and survive for at least five years following your diagnosis, you may face another fight: buying life insurance.

Buying life insurance for cancer patients is challenging, but not necessarily impossible. Your chances for securing a policy depend greatly on the type, stage and grade of the cancer, and even on the treatment plan. There is a relationship between the rate you’ll receive and the curability of your cancer. Certain types of skin cancer, for example, are considered very low risk by life insurance companies and a skin cancer history may not even impact premiums.

Applicants with common and treatable forms of breast and prostate cancer may be able to get a “standard” rating under ideal circumstances. But patients with a history of leukemia or colon cancer may fall into a “substandard” or “high substandard” rating at best, or receive declines. Anyone with cancer that has metastasized likely won’t be able to obtain a policy.

Dr. Charles Levy, senior vice president and chief medical director of AIG American General Domestic Life Insurance Cos., says, “We’re better and better able to differentiate the risks of individual cancers.” Life insurers like AIG American General have sophisticated tables to determine premiums, where they can factor in cancer types and treatments. The end result is better premiums because applicants aren’t lumped together as an “average.”

Most insurers will not offer a policy to someone who is still undergoing treatment for cancer. Depending on your type of cancer, the life insurer may also want to add a surcharge, also called a temporary flat extra. For example, AIG American General sometimes charges temporary flat extras for two to five years, depending on the applicant’s cancer and treatment. The good news is that although these extra premiums can be expensive, they will automatically disappear after a set period of time.

Cancer insurance risk specialists

While a dedicated life insurance agent will search cancer insurance companies to find insurers that will sell you a life insurance policy, in some cases you may be better off seeking out a broker who specializes in finding life insurance for people who have a history of cancer.

These brokers will know the specific questions underwriters will want answered when considering your application. Many brokers have developed relationships with several insurers, so they know which companies offer the best-priced life insurance policies for cancer survivors. Some brokers have experts who specialize in gathering your medical records and organizing them.

By directing your application to life insurers that will view your application most favorably, these brokers will help you find the most accurate price quotes and the lowest premiums for life insurance. Always check the financial strength of the insurer before you buy any policy and be sure that the agent or broker you choose is licensed in your state.

Life insurance strategies for cancer survivors

If you are a healthy cancer survivor, life insurance is even more feasible, even if you are looking for smokers life insurance. There are things you can do to ensure you’re getting the best premium offers possible for your situation.

1. Gather all possible medical records before you apply, from the first pathology report to medical records to treatment records. That ensures medical underwriters have the most complete picture of you, your health, and your cancer history. Having all those records before you apply for cancer insurance will reduce delays in your application process, because your life insurer is going to request them and will wait for them. The information you provide can garner you better premiums in the end: The less life insurer underwriters knows about you, the more likely they are to have to assume you are the highest risk and offer you high premiums accordingly. According to Levy, “If it’s fuzzy, we’re more likely to err on the side of conservatism.”

2. Make sure you have complied with your doctor’s treatment plans. For example, says Levy, if your doctor asked to see you back in one year and you haven’t been back in four years, get to your doctor for your check-up before you apply for life insurance. Your life insurer is not going to offer you a policy without before seeing the results of that check-up. Similarly, if you’ve had breast cancer and you’re due for a mammogram in December and you apply for cancer insurance in October, your life insurer will likely wait for the results of your next mammogram.

3. Get prices from several companies. Policy costs can vary a great deal among companies.

4. See if you can get group life insurance through a professional, fraternal, membership, or political organization to which you belong.

5. Consider a “graded” policy (one with limited benefits) if you cannot get full death benefits. In the first few years of a graded policy, the company pays only the premiums and part of the face value if the insured person dies of a condition, such as cancer, that existed before the policy took effect. If the insured person dies after the specified grading-in period, the company will pay the full face amount of the policy.

If your cancer has been successfully treated, and you are otherwise in good health, you can likely obtain a cancer life insurance policy. If you can show that you are healthy and your treatments have gone well, several insurers may compete for your business.

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Obtaining affordable Over 50s Life Insurance

Saturday, June 19th, 2010

People have lost their companies, their jobs and their life savings because of the financial crisis. Even if the economy is beginning to shape up, people are still struggling to get back on their feet. People greatly affected by the recession have to cut down on their expenses just to make ends meet. During these tough economic times, looking for affordable over 50s life insurance may be hard but necessary.

Almost everyone was affected by the financial recession, and as an adverse effect, people begin to think that they can do away with some things like life cover. It is not practical in the long run. Even if you are struggling to pay off debts, you should still get an over 50 insurance policy, because in the event of your death your family will end up having to pay for all of your debts. Getting life insurance for over fifties takes care of debts, provides college education for dependents, and takes care of mortgages in the event that the insured dies. If you don’t get over fifties life insurance, your family might end up having to pay for all of these things, and since the recession has resulted in lesser equity and savings, it might be a huge financial strain for them to have to raise money for these things. Getting over 50s insurance, even during a recession, is necessary. There are several options in getting an affordable life insurance contract.

Looking for an inexpensive life insurance might seem hard, but if you are knowledgeable and if you know what to look for, it can be really easy. Below are some of the things you need to take note of when doing your research:

When doing your research, you must only look in reliable and unbiased websites where you can consult an agent who can help you in getting an affordable over 50s life insurance. Use a quote service on a reliable website to make it easier to look for insurance. However, it is important that you only use this quote service as a standard, because there are some that advertise low rates for insurance that have a lot of policies that you may not meet. Don’t just settle for the lowest rates you can find as they might lack the necessary features to meet your needs. Use an online multi-carrier agency, as they usually give you the chance to talk to them about insurance options.

Don’t rely on group term plans that are funded by your employer. Most people don’t know how long they can keep their jobs, or if their company can even survive a recession. If you end up losing your job, you will become uninsured, so it is best to get cover independent of the company you work for.

Remember that a medical exam is important when getting life insurance. The more health problems you have, the higher you have to pay your insurance company, so make sure to prepare for your medical exam by eating a healthy diet. Do not compromise your health.

Choose monthly payments if you cannot afford to pay for your insurance all at once. While premiums are discounted if you pay it all at once, if you feel like monthly installments are better for your pockets, then choose this payment option. After all, you are looking for an affordable life insurance.

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Will Life Insurance cover funeral expenses?

Monday, June 14th, 2010

While funerals or other final expenses are not usually explicitly covered by a life policy, the cost is one of the reasons that many older people want to purchase a policy. It is not uncommon to see funerals and burials costing $8,000 – $10,000 or more these days. That is a large amount of cash. If the older people cannot put it aside, they also do not want to burden their children or grandchildren with this expense. And so many seniors, or their kids, look for a funeral insurance policy or over 50 insurance. This is one way to plan for this expense by making a monthly payment.

What Is Senior Life Insurance?

Senior life, also called final expense policies, are usually smaller face value whole life policies. You can usually buy them for amounts from $2,500 – $2,5000. Because the face value of the policies is smaller, underwriting is generally relaxed. They have been designed, by insurers, to be simple and easy for older people to apply for. They are generally marketed to people from about age 50 to age 80. I have even seen some policies that accept reasonably healthy people up to age 85.

Simplified Acceptance Life Insurance

These policies do ask health questions but they do not ask a lot of them. They will generally take applicants in reasonably good health, They provide immediate death benefits, and more affordable premiums. I would always suggest this type of policy to cover an older person in fairly good health. They will usually only ask if the applicant has a terminal disease or lives in a nursing home.

Guaranteed Acceptance Life Insurance

These policies will, as advertised, accept all applicants within the age group. They must be popular because I see them advertised on TV all the time. That means that the insured person could already be quite ill, live in a nursing home, or even have a terminal disease. If that sounds too good to be true, it may be.

Here is the “catch”. They usually have a graduated death benefit or waiting period before the full death benefit will be paid. This varies, but a typical policy may not pay the full amount to the beneficiaries unless the insured person survives for 24 months after the policy is put in force. If the insured person passes away this time, they may return premiums, sometimes with interest, so a family will not really lose anything.

Premiums are usually higher than the premiums for simplified issue policies. That is why I suggest checking into simplified issue policies first. Also the simplified issue policies have an immediate death benefit without a waiting period.

Who Buys Senior Life Insurance?

Sometimes older people purchase these for themselves. Other times, the family will purchase them. The older person would be the insured person, but a grown child, for example, may be the owner and beneficiary. This may be a hard subject to bring up because nobody likes to think about their loved ones passing away. But in my experience, everybody is relieved that this important event has been planned for.

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