Category Archives: Life Insurance
Life Insurance Companies
Life Insurance Companies
Insurance is all about the evaluation of risk and it is something that life insurance companies know a lot about. Every time life insurance companies receive an application for a life insurance policy, the companies decide how much of a risk that applicant poses to their business. This is to say that the insurance companies make an educated estimation of how long the applicant is likely to live versus how many insurance premium payments they are likely to make before death occurs.
If they believe that the applicant will live long and will therefore make a substantial number of insurance premium payments during his/her life, then life insurance companies see the applicant as low risk to their business. However, if life insurance companies believe that an applicant could die soon, and therefore make relatively few insurance premium payments while they are alive, that candidate will be seen as a higher risk by the insurance companies.
How life insurance premiums are calculated
When calculating life insurance premiums two factors are considered by life insurance companies. The first factor involves an evaluation of the general likelihood of death occurring at a particular age, and involves the scaling of applicants against normal life expectancy. This sets the ‘average’ risk level that different age ranges attract; needless to say that the closer you are to your average life expectancy then the higher the risk level that you’ll be measured against.
The second factor is based on whether the applicant is above or below their average risk level for their age. Someone who has an unhealthy lifestyle, suffers from pre-existing health conditions and is in a stressful job is likely to be classified as ‘above average’. On the flip side, someone who goes to the gym regularly, does not smoke and eats a balanced diet is likely to be seen as ‘below average’. Naturally, those who are below average risk will see keener insurance premiums on their life insurance policy for their age than people who are classified as ‘above average’.
Cheaper life insurance?
While there is often little we can do about pre-existing health conditions, there are ways in which to tip the scales in our favour of cheaper life insurance. This we can do by altering our lifestyle and striking a better work-life balance in a stress-free environment. Changing lifestyle habits though can be more effective for some than it can for others.
For instance, a person in their 20s living out an unhealthy existence is likely to be seen as less of an insurance threat for their age to life companies than someone in their 50s with the same unhealthy lifestyle. This is because the body of a 20-year-old will respond more efficiently to improvements in lifestyle than will the body of a 50-year-old. In essence therefore, there are different degrees of being above average and below average, making the calculation of life insurance premiums for each individual definitely a job for the experts at the life companies!
Considering Life Insurance? Read This Advice First (2)
Considering Life Insurance? Read This Advice First
If you need help finding cheap life insurance quotes, look at our tips and learn how to get affordable life insurance that suits you best. Understanding how life insurance companies work is crucial when looking for the cheapest insurance quotes. We will teach you how you can lower your premiums.
If you are thinking about purchasing life insurance, you should talk to someone that’s an independent broker. An independent broker will have access to many different options, then a broker that’s affiliated with one specific company.
Before investing in a life insurance policy, learn the pros and cons of each of the four types. These are term life insurance, whole life insurance, universal life insurance, and variable life insurance. In order to help you understand the differences, you may want to hire a financial professional. Not only can a financial professional explain each type of life insurance to you, but he or she can suggest which one best suits your needs.
Look for a decreasing term life insurance policy. This policy will supplement your investments if anything happens to you before your investments reach a predetermined amount of money. Since you will also pay less as your investments do better, this policy is a great choice for individuals who wants to save money over time.
Be honest about any health conditions or smoking habits when you are purchasing life insurance. In the event of your death, if it is discovered that you withheld information, your insurance company could deny benefits to your loved ones. In the long run, it’s not worth the risk to withhold the truth.
Get yourself a policy that has a “conversion to permanent” clause. This refers to the fact that at any time, the policy holder can switch their term insurance into permanent insurance without further medical exams. While this may not save money at first, it will eventually save money if you start suffering from poor from health problems before the policy runs out.
When getting life insurance, you will need to find out how much the premiums are. All insurance policies have different premiums and you need to be certain that you will be able to afford the coverage. If you lapse on payment for the policy and someone passes away, you could find that the coverage you were counting on is not available because of the lapse.
Some people try to lie on their insurance applications and end up losing their life insurance once that lie is exposed. Never lie on your application. Someone will find out that you’re only trying to save money, and then you lose your premiums and the entire policy in the blink of an eye with no recourse.
Learning how the insurance system works is very important when dealing with insurance companies. As you can see, it is possible to have a good life insurance policy that is both reliable and affordable. Follow our tips, and you will find exactly the policy that you want, need, and can count on.
Easy Ways To Simplify Your Life Insurance Search
Easy Ways To Simplify Your Life Insurance Search
Are you looking to get get life insurance but you do not have enough information? Maybe you already have life insurance but there are things you do not understand about it? Either way, the following article is going to provide you with crucial life insurance information that everyone should be told about.
If you would like more than one life insurance policy, whether you don’t qualify for a policy of a high amount or because you would like extra coverage, you may want to think about the purchase of a group life insurance policy. This could be a great deal cheaper than purchasing several different policies, and can suit your needs just as well if not better.
If at all possible, you should try to avoid start-up companies and there life insurance policies. You just never know when a new company is going to bite the dust and take your investment with it. The insurance market is very unpredictable and there is a chance however small that you could be a casualty.
You should beware of an advisor who claims to know everything before purchasing life insurance. An advisor who answers every single one of your questions without researching anything, then it’s likely that he or she is incorrect about certain details. Because insurance policies are very complicated, even top-notch insurance advisors do not know everything without research.
Look into premium discounts. Surprisingly, most companies offer a rate discount for a specific amount of insurance. For instance, 0,000 of life insurance may actually have a smaller premium than 0,000. This is because the rate discount tends to kick in at a higher amount, in increments of 0,000. Likewise, 0,000 of insurance may cost you less than 0,000.
Try to buy your life insurance policy as soon as you need it. It is definitely best to do this when you are young and healthy because the policy’s premiums tend to be much cheaper. If you wait till later when you are older or when you are in poor health, the premiums can be very expensive.
When selecting a life insurance policy, remember to calculate coverage for both fixed and ongoing expenses. Most people think of life insurance as a way for their family to pay living expenses, such as the mortgage, after the title holder’s death. But life insurance funds are also used for one-time expenses such as estate taxes and funeral costs, which can be quite high.
Beware of universal life policies. The cash value of these insurances can decline over time, and what your family will be paid out will not reflect at all what you invested in this insurance. You should get a whole life policy, which guarantees your premiums and how much the insurance is going to pay out.
In conclusion, getting information about life insurance is important. You want to know what you are going to be committing yourself to. The above article provided you with important life insurance advice. Take this advice and use it in order to help you get the best life insurance plan possible.
Advantages Of Whole Life Insurance
Advantages Of Whole Life Insurance
Whole life insurance also known as “permanent” or “straight” life insurance is one of the most applied forms of insurance. This life insurance policy covers one’s entire life. This is much in demand because of its ability to provide financial protection and accrue cash value and pay dividends to the insured. In other terms, you can say it as an investment, that you make to secure your future build up finance that helps you in your indigence.
Taking a whole life insurance policy leads to a number of benefits and advantages. Few of them are listed below.
1. The first advantage is The Death Benefit.
The whole life insurance policy guarantees you the death benefit that never decreases. Moreover no federal income taxes are charged upon death. And if you desire, death benefit can be taken as a monthly income instead of a lump sum.
2. Consistency of premium level.
Unlike term life insurance’s premiums, which increase at the time of renewal, the premium you pay in whole life insurance remains consistent. There’s no increase. However, use of dividends can minimize the premiums that you pay and contracted for.
3. “Cash value” is another beneficial feature of whole life insurance.
Unlike other life insurance policies, whole life insurance policy accumulates the useable cash reserves. This increase as one pays premiums and also accumulates tax deferred. And if you decide to surrender the policy, you receive your cash values.
4. Participation in whole life insurance policy earns you the dividends.
You are eligible to earn dividends if you own a participating whole life insurance policy. You receive this dividends in cash, which you can further use to either purchase a paid up additions, to minimize premiums or you can keep it within the policy to generate interest.
These advantages of whole life insurance policy are really worthwhile. If you are not confident you should consult an expert before taking up any policy.
Busting the Top 6 Life Insurance Myths
Busting the Top 6 Life Insurance Myths
Term life insurance has many advantages. But understanding term life insurance and its benefits means sifting through the myths surrounding it; and there are many myths about life insurance. These life insurance myths and misconceptions can result in too little coverage causing financial hardship for families suffering the loss of a loved one.
To avoid this from happening to you, we’ve taken a look at the most common misconceptions about life insurance to set the record straight–helping you to make the right life insurance choice for you and your family.
Myth #1: I don’t work outside the home so I don’t need life insurance.
False! Just because there’s no paycheck to replace, doesn’t mean life insurance is unnecessary. A life insurance policy that provides coverage for a stay-at-home parent isn’t so much about the money they bring in to the household, but instead about the money they keep in the household.
In fact, have you ever considered how much it would cost to pay for childcare and housekeeping in the absence of a stay-at-home parent? Don’t underestimate how much this would require, child care is expensive and is a growing cost.
Myth #2: I’m young so odds are I won’t need life insurance.
Some people are gamblers by nature and choose to take their chances by skipping out on life insurance completely. Although it is unlikely you’ll die during your working years, you’re not insuring for what’s likely to happen but instead, for the worst-case scenario.
That’s why term life insurance is inexpensive for young, healthy people. Buying life insurance now means you’ll be providing financial security without spending a lot of money for it.
For example, online quotes show that a 0,000 10-year term policy for:
• a healthy 35-year old woman costs as little as 5 a year
• a healthy 35-year old man costs as little as 5 a year
What’s more you may even be eligible for preferred life rates that mean the annual premiums are even less! Preferred rates are lower premiums – for the same coverage – offered by an insurer based on your health. The good news is that eligibility for preferred rates is common and could save you up to 30 per cent off the standard rate.
Myth #3: If it’s really so cheap there must be a catch.
There’s no catch to term life insurance. Your basic term life insurance policy will offer you coverage so long as you pay your premium. You buy term insurance coverage for the duration of time you’ll need life insurance, whether that’s until the kids are out of school or until your mortgage is paid off.
Plus, your premiums are fixed for the length of the term. They won’t increase even if the status of your health changes.
Myth #4: I don’t need life insurance once my children are self-supporting and my mortgage is paid off.
Everybody’s insurance needs vary. But how would your spouse manage daily living expenses without your help? And what if your spouse outlived you by 10, even 20 years?
Even if your children are no longer living at home and you no longer have large debts, like a mortgage, there still are questions you should consider before deciding that life insurance is unneeded.
Myth #5: I have life insurance through my job. I don’t need any more insurance coverage.
False. The truth is your life insurance coverage through your work may not be protecting yourself and your loved ones as much as you think. Review how much your employer-paid insurance provides and calculate whether this is enough to keep your family comfortable through the difficult times if you’re not around.
What’s more, when you leave your job for any reason, including retirement, your coverage usually stops.
Myth #6: It’s such a hassle to get life insurance.
Thanks to the Internet, getting quotes is fast and easy. There are a number of online life insurance quote services and usually, all you have to do is answer a few simple questions to get quotes. Sometimes, you can even buy a policy online.
Final Fact:
From the time you marry, buy your first home, start a family and enjoy retirement, having life insurance means you and your family have the security knowing you can reach the long-term financial goals you have set out.
Life insurance policies provide you with customized coverage for your family’s needs. Comparing quotes on the Internet can help you find affordable life insurance that will protect you and your family in the years to come.
Several Ways You Can Save On Your Life Insurance Policy
Several Ways You Can Save On Your Life Insurance Policy
Many people say that choosing the right life insurance plan can be intimidating and exhausting, especially since so many plans are on the market today. If you know what to look for in your life insurance plan, it becomes much easier to narrow down your choices and understand which plan is best. This article outlines the key tips in selecting a life insurance plan.
When purchasing life insurance be sure you trust the people you are buying from. Selling insurance is very lucrative and regulation is relatively slim. Be sure that you have done your research about a company and the individual before you purchase a life insurance policy from them. Do not become a victim.
Some smaller life insurance policies out there, like those that are less than ,000, might not require you to have a physical, but these are also usually costly for their size. The companies offering these policies are assuming that unhealthy people are opting for this option so they can be insured, so the prices are steeper per month.
If you need more life insurance, try to get a rider instead of getting a new insurance policy. These are amendments or additions to existing insurance policies. They tend to be less expensive than purchasing a second insurance plan. If the holder is healthy, it is advisable for them to try to buy a second insurance policy, as it may be cheaper than a rider.
When shopping for life insurance, be sure to shop around. Check a number of different policies online and investigate each company you are considering to be sure you are choosing an honest, reliable company. Fly-by-night life insurance is surely not a desirable commodity. You want to be sure your policy will be there and will pay out as promised in the event it is needed!
If you are considering purchasing whole life insurance, keep in mind that this insurance is more expensive, but it will cover your entire life span. If you live to be 100 years of age, you will still have coverage to benefit your family left behind after your death. A term life policy is effective only for a determined amount of time and will expire eventually. Keep in mind, a term life policy is usually less expensive and more affordable than a whole-life insurance policy.
When considering purchasing life insurance, do not be afraid to ask questions. The sales representative is there to help you out through the purchase process by helping you understand what you are purchasing. Do not buy anything until you fully understand everything about it, and feel comfortable doing it.
To get life insurance that you can really rely on, check the rating of every company closely. There are four major insurance rating agencies, and some designate their top ranking in different ways, so knowing what each rating means for each agency is a good way to determine which providers are the most reliable. The very best insurance providers have earned top ratings from all four agencies.
As the beginning of the article stated, choosing the right insurance plan can be a very difficult affair. However, if you have a better understanding of exactly what to look for in a life insurance plan, the process becomes much easier. Use this article’s tips and tricks, to help you select the best life insurance plan for you and your family.