Category Archives: Life Insurance
Are You Getting The Most From Your Life Insurance? Find Out Here!
Are You Getting The Most From Your Life Insurance? Find Out Here!
Life insurance is one of the most important safeguards you can get to protect the welfare and support of your family in the event that something dire were to happen to you. But figuring out the best type of policy for you and your family can seem like a maze sometimes. Consider these tips as you work through your own decisions.
Know what life insurance was meant for. Life insurance was meant to protect your estate and family if something should happen to you. It is not meant to be an investment in the usual sense. If it sounds more like investment, you should be wary of the terms of your policy.
Term life insurance is the most effective for a single parent. Whole life completely disregards the reason you are looking for insurance and that is to take care of your children in case of tragedy. Term life is much more affordable than whole life and it provides all of the protection you need to care for your family.
If you would prefer a permanent life insurance policy but can only afford term insurance, buy a convertible policy. At any point during your term policy, you can choose to convert to permanent life insurance. This helps keep rates lower when you are younger, and as you advance in your career your budget might have more room for permanent coverage. You will not have to take any medical exam to convert, which is important if you have developed any health conditions.
To make your premiums as low as possible you should purchase life insurance immediately when it is needed. The reason is because life insurance is cheaper when you are young and healthy. As a result, if you wait to purchase life insurance when you are older and in worse health, your premiums will be higher.
Buy the right amount of life insurance to cover all of your needs. Skimping on life insurance is not a good idea. Term insurance, especially, is very affordable, so make sure you get as much insurance as you need. For a rule of thumb, consider buying insurance that equals approximately 6 to 10 times your income.
When you are choosing life insurance, make sure you are only paying for what you need. Think about what your life insurance will need to cover. It may need to pay for the funeral, a mortgage, or college for kids. Or if you have a separate account for your children’s college, you would not want to pay for that.
When setting up a life insurance policy, be aware of the holder of responsiblity for the funds. The “adult payee” determination has no legal standing. Simply naming someone as the “adult payee” on behalf of someone else on a policy does not require the payee to spend those funds in care of the intended recipient.
Now that you are armed with specific tips to help you select the best policy for your needs, you can feel more confident about moving forward. Once you do so, you will enjoy the profound peace of mind that comes from knowing you have done your very best to assure that your family is protected and secure.
Are You Shopping For Life Insurance? Read These Tips! (6)
Are You Shopping For Life Insurance? Read These Tips!
In order make sure that your final expenses will all be paid for, it is crucial for you to have a life insurance plan that is reliable. Becoming educated about life insurance is the first step in getting that reliable plan. The following article is going to provide you with vital life insurance information.
When you are planning on purchasing a life insurance policy, select an independent broker. Independent brokers can generally offer more selection in terms of policy and cost than a broker who works exclusively for a specific insurance company. Company brokers are limited to the products their company sells, and may also be pushed by the company to recommend a particular product.
Always be honest when you are getting a life insurance policy. If you are found to have lied on your application for the policy, you could be denied coverage and your money will be lost. You will find it more difficult to get a low rate for a policy with a history of lying to providers.
If you already have life insurance, you should review your policy at least once a year. This way you can make sure that it is still adapted to your needs. This also allows you to compare what you have to new products available on the market. You might be able to find a cheaper or better plan.
If you are buying a life insurance policy for the first time, remember that insurance is for protection, not for investment. Term insurance provides only protection without a savings component, and is therefore much less expensive than whole or universal life insurance policies. It is almost always better to purchase term insurance.
Do not miss a single payment of your life insurance. If your have a payment coming up but cannot afford it, get in touch with your insurance company as soon as possible, and see if you can establish a payment plan. If you miss a payment, your policy could be canceled.
When preparing for a life insurance medical exam, be sure to follow all instructions carefully. At the same time, drink plenty of water the day before the exam and be cautious of what foods you eat. Taking these two actions can impact blood panel results and help you receive a better classification on life insurance rating.
Find out how to pay less for more when it comes to life insurance. Many companies give their customers a price break if they choose a certain amount of coverage. For example, you may pay less money for a policy that is worth ,000 more than the one you were originally looking at.
When purchasing a policy, your insurance agent is required to ask you if you are interested in purchasing “riders” to your policy. Do not purchase these. They are expensive and ultimately do not have a large impact on your overall policy or its effectiveness in the long run and are an expense.
As was stated in the beginning of this article, it is very important that your life insurance plan is a good, reliable one. The above article gave you information that will help get you the best life insurance plan possible. Use this information when shopping around for a good life insurance plan.
Want To Know About Life Insurance? Keep Reading
Want To Know About Life Insurance? Keep Reading
Life insurance is an essential part of financial planning, but understanding it, and buying the right policy can be tricky. There are whole and term life, riders and convertibility clauses to make sense of, and then you nave to choose the right one. Here are some steps you can take to ensure you get the perfect policy for the best price.
Be sure to tell the truth when applying for life insurance. The company you are applying for a plan with will more than likely verify that the information given on your application is the truth. Being caught in a lie with these companies could prevent you from getting life insurance.
If you find life insurance too expensive, you should consider term life insurance. You can subscribe to term life insurance for a certain number of years, which is perfect if you do not expect to live beyond this point. If you do, you can always renew your term life policy.
If you need a lot of coverage for a smaller premium, you will probably benefit most from a term life insurance plan. This plan will not build up equity, but will pay out a higher death benefit. They do have an ending date though, thus the title “term life insurance.” Make sure you have other plans in place for when this coverage runs out.
When considering life insurance, be sure to look outside what your employer provides. While this may be easier and you may assume they are providing what is best for you, it is not always the case. Make sure that they rates and coverage are competitive or better than other offers that you could go with.
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.
Consider getting the advice of a professional as you make the decision about which policy to go with. Your needs may change over time as various factors in your life change, and having someone to advice you about updates to your policy that might make the most sense can be invaluable.
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.
Rather than paying two separate life insurance policies for you and your spouse, think about subscribing to a survivorship life insurance. No matter who dies first, the surviving spouse will be able to keep the entirety of the assets, and this type of insurance costs much less than two separate policies.
As you read, life insurance is incredibly important to your current and future financial planning and so is understanding all the different kinds. With this understanding, it makes it easier for you to determine what policies fit your personal needs. Following these simple tips, is a very good starting place.
5 Quickest ways to lower your Life Insurance Premium
5 Quickest ways to lower your Life Insurance Premium
Worried about the spiraling life insurance premium? We have enlisted 5 quickest ways to lower your life insurance premium. Well, keep these points in mind but do tread with caution and act prudently.
Shop around and Bargain
Shop, Compare and Bargain! Well, the oldest principle, old as dirt, but still going strong. Once decided on your coverage, don’t just sign up for the first plan that crosses your eye. Ensure that you shop around (internet is a great place to start) and get a feel of the market. This would help you to bargain hard and get the greatest coverage at the lowest possible price.
Opt for Term Life Insurance – The quickest way to lower your life insurance premium is to opt for Term Life Insurance policy instead of a whole-life policy. The idea is to keep insurance as what it is and not turn it into an investment product. Thus, you can get yourself insured under term life policy at the fraction of the cost of a whole-life scheme with typically the same coverage amount. However, do not forget that Term Life Insurance covers you only for a pre-defined period of time.
Keep yourself Fit – Be a low risk proposition for your insurance provider by maintaining a healthy lifestyle and keeping yourself away from addictions such as smoking, drugs and alcohol. A good health record will result in considerable reduction in your life insurance premiums.
Consult an Insurance Advisor – To reduce your life insurance premium, the easiest thing you can do is to consult a good Insurance Advisor. Since the advisor will be pro in the insurance marketplace, he/she would be able to get you to the most affordable deal in line with your coverage requirements. Essentially a good insurance advisor would compare different market rates for you and would also negotiate the best rates on your behalf. Well, internet is a great place to identify an agent.
Start at a young age!
Insure yourself at a young age. Life insurance premium at a young age is only a fraction of what it could be when you are well into your middle-age. The premise is young and healthy people are the lowest risk segment. The low mortality risk is a great incentive for insurance companies to insure you at lower premiums.
Life Insurance- What You Need To Know
Life Insurance- What You Need To Know
Having life insurance means you are looking out for those of whom you take care. You are giving them money when you pass to make sure they are okay. This article will give you a lot of tips about life insurance, and you will want to make sure you purchase this necessity.
When shopping around for a life insurance policy, be aware that certain occupations and hobbies are considered risky and can increase your premium. Some of these occupations include commercial fishing, logging, helicopter or airplane piloting, and roofing. Even a business executive position can be considered risky if it requires you to travel to certain perilous countries. Hobbies that are considered hazardous to your health include hang-gliding, parachuting, skiing, and motorcycling. Make sure to disclose this information to prevent your claim from being denied if the insurance company decides to investigate it.
If you are considering purchasing life insurance you may want to look into possible coverage that is already offered by your employer. It’s common for employers to offer basic life insurance plans at good rates for their employees. You should make sure that the coverage is adaquate for your needs and purchase supplemental policies if additional coverage is desired.
Getting life insurance does not stop at simply purchasing it. A good insurance company will make it easy for you to get in touch with their customer services or even with an adviser in certain cases. If your company does not offer these services, you should consider switching to another service.
When purchasing a life insurance policy it is vitally important that you are completely 100% honest when answering questions about past medical history and other items raised such as drug use. An insurance claim can be declined if it is ever determined that the initial information provided was not true.
When purchasing life insurance, make sure to be truthful about all your personal information. Don’t leave out any details that can be used against you at a later date. The insurance company can deny and contest your claim after your death, if it has any reason to believe that you withheld information.
Don’t be afraid to shop online when looking for a life insurance policy. When shopping online, it’s much easier to compare and contrast the different policies than it is when you are strictly meeting with insurance agents in person. Not to mention, an insurance agent will only give you one side of the story. Take your life insurance shopping online to look for the best deals.
Life insurance is nearly a necessity with funeral costs being as high as they are. When you are looking to take out a life insurance policy consider a lot of factors, like how old you are, your state of health, and even if you are a smoker. All of these can affect your rates.
You learned what life insurance can do for those you love. It can set them up with some extra money that can help them out tremendously. You read many tips on life insurance, and now it is time for you to purchase your own life insurance policy. Make sure you fully understand the different types, and purchase the policy that best fits your needs.
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.