Term Insurance

Posted December 13th, 2010 by Admin | No Comments
Life insurance advice |

Term insurance is a level term life insurance product that pays out a lump sum when the insurance policyholder dies or becomes terminally ill. It provides peace of mind to the insurance policyholder that loved ones left behind after their death will be financially secure. Term life insurance can be configured to pay off all existing loans - including the mortgage - and leave a cash sum in the bank to support your spouse and children. If you don't want your family to have to cope with financial pressures during their bereavement, or struggle to find the funds to pay for your funeral then term insurance is the life product to have.

Term insurance is different to mortgage insurance
It is important to realise that term insurance is a different life product to mortgage insurance. Term insurance is a long-term insurance product that can be taken out over a lifetime of 50 years. During this time the insurance premium remains the same as does the amount paid out in the event of death or terminal illness.

Mortgage insurance on the other hand mirrors the life of your outstanding mortgage loan. The insurance premiums remain the same throughout the life of the product, but unlike term insurance the amount paid out upon death or terminal illness reduces in line with the outstanding mortgage loan. So, if you were to die at the point that you owe only 2000 on your mortgage, then the mortgage life insurance product would only pay out 2000.

Terminal illness
Terminal illness cover generally comes as standard with term life insurance polices. The terminal illness clause tends to trigger pay out if the insurance policyholder is diagnosed with a terminal illness named on the term policy and is given 12 months or less to live. Pay out in these circumstances allows the policyholder themselves or someone with power of attorney for the policyholder to receive the full lump sum from the term life insurance policy. They are then free to enjoy the final months of their life with their family free from financial constraints.

When a term life insurance policy pays out for terminal illness the policy will end. Therefore the life insurance company will not be liable to pay anything further upon death of the policyholder.

Term life insurance restrictions
As with most insurance policies there are restrictions and exclusions that apply to term life insurance policies. The main restriction is on pay outs to term life insurance policyholders who become critically ill, yet are not diagnosed as terminally ill. In this case, a standard term life insurance policy will not make a payment, unless a critical illness policy has been added to the term life insurance.

Shop Life Insurance Rate – Getting The Best Coverage For

Posted December 6th, 2010 by Admin | No Comments
Life insurance advice |

Shop Life Insurance Rate - Getting The Best Coverage For The Lowest Rate

The purchase of life insurance is so much easier because of the availability of so much online information. The buyer learn son much by studying the magnificent amount of web content about life insurance. Life insurance rates are easier to comprehend when you get a better understanding about the different types of life insurance. There are basically two types of life insurance that come in many different forms. Term life insurance and permanent life insurance are the two types.

Term Life Insurance is the most inexpensive form of life insurance. Term life insurance is purchased for temporary needs over a specific time period. Once that time period elapses then the policy terminates. The short term benefit is what makes the premium low in comparison to permanent forms of life insurance. Mortgage term life insurance is purchased to cover a mortgage debt over a specific period of time. A thirty year mortgage requires a thirty year mortgage term policy that has the death benefit decrease as the mortgage balance decreases. The policy terminates after 30 years when the mortgage is fully paid. You can also purchase level term policies that provide level death benefits for specific periods of time. These time periods can be as short as five year and as long as twenty years with most companies.

Permanent Life Insurance is different from term insurance because it is designed to stay in force until the death of the insured. This form of life insurance is very popular because of its inside build up of cash value. The cash value of permanent life insurance is what enables the policy to extend until the death of the insured. This cash value account is accessible to the insured. The cash can be borrowed at a very low interest rate. Universal life policies have a partial surrender feature also that requires no pay-back of the borrowed amount.

Do your online shopping for life insurance rates based on these two forms. Compare term rates with term rates and permanent rates with permanent rates and that will make your shopping a whole lot easier.

Senior Term Life Insurance

Posted November 29th, 2010 by Admin | No Comments
Life insurance advice |

We all know that purchasing life insurance at an older age is more expensive than purchasing it while very young. In an attempt to provide affordable insurance to meet the life insurance needs of older insureds, some companies are now offering Guaranteed Acceptance Life Insurance.

Guaranteed Acceptance Life Insurance policy rates are less expensive than the traditional term insurance policies. As the name implies, you are guaranteed to be accepted for this life insurance. There are no health questionnaires to complete and no physical exams to take. As long as you pay the premiums, the policies cannot be cancelled. Additionally, you may lock your premium rate for the policy amount you want. Your rates will not change for as long as you keep your insurance.

Where's the catch you may be asking. Well, the policies are written for a limited period of time. For example, Colonial Penn's policies are for a two-year limited benefit period. They are available for people between the ages of 50 and 85 (This age range varies depending on insurance company and state regulation).

Generally, if death occurs during the first few years, a reduced benefit is paid or the company may return the premiums paid plus interest. For instance, with a Gerber Life policy, if death occurs by natural causes within the first two years (during the limited benefits time), the beneficiary will receive all of the premiums paid plus 10%. However, if death was a result of an accident, or if death due to natural causes occurs after the two years, your beneficiary will receive the full benefit amount. In the event of suicide (with certain state exclusions), the beneficiary will receive the amount of premiums paid only.

Most life insurance companies offer a Guaranteed Acceptance Life policy for seniors. There may be variations from state to state, but the basic premise is the same. They all offer an affordable insurance option for seniors.

Please see our list of recommended insurance quote providers below to get free insurance quotes from many providers. These sites also offer pages and pages of free insurance information.

Selling Your Life Insurance (Viaticals and Life Settlements)

Posted November 22nd, 2010 by Admin | No Comments
Life insurance advice |

Selling your life insurance is an option you might consider if you're in a difficult financial situation for which you don't see a close end. A terminal illness or old age could cause you to think twice about paying those hefty premiums at this stage of your life. Selling your life insurance carries with it complex implications and substantial risks, so it is important that you educate yourself regarding the big picture. If you're interested in selling your life insurance, this is a good starting point to obtain some basic information.

Basics: Vocabulary

If you've already done any research on selling your life insurance, chances are good that you've come across two main terms: viaticals and life settlements. Both refer to the selling of your life insurance to a third party. So what's the difference? "Viatical" is typically used to refer to the transaction involving a chronically or terminally ill insured, while a "life settlement" is a transaction involving a senior (generally over the age of 65) who is not terminally ill.

Even though you now know the difference, it does not mean that your state does. These terms might be used interchangeably, or your state might use one of them to refer to both transactions. For example, your state could use "Viatical Settlement" to refer to any type of transaction regarding selling your insurance. Be aware that this kind of ambiguity may exist in relation to the vocabulary used in the sale of your life insurance.

How it Works

The owner of the life insurance policy will sell it for a percentage of the death benefit a lump sum to a third party and, in exchange, receives an often substantial lump sum payment. The third party then becomes the new owner andor beneficiary of the policy and pays all of the future premiums and eventually collects the death benefit when the insured passes away.

Those considering selling their life insurance may either directly approach a viatical company or settlement firm, or they may choose to work with a broker. The broker will act as an intermediary and present the information to several different companiesfirms in an effort to find the highest price for the sale.

The settlement firms buy the insurance on behalf of investors. In this situation, the investors become the owners and beneficiaries, and the settlement firm pays the premium until the insured dies. The firm then collects the death benefit and either pays its investors a percentage of the annual return or repackages the policy for sale to another party.

Take comfort in know that the process of selling one's life insurance is typically very confidential. Most viatical companies and settlement firms understand the discretion necessary to make the process run smoothly and easily. However, a company may act disrespectfully and become borderline intrusive by trying to keep track of the insured's condition. For this reason, it is important to work with a respectful, experienced organization.

Who Considers Selling

Those with serious, life-threatening illnesses are most likely to consider selling their life insurance to provide cash for various expenses, such as mounting medical bills. For those who are not terminally ill, selling the life insurance might be a good idea for a number of reasons. If the owner's beneficiary has died or if the owner can't afford to keep paying the premiums, it would appear that they no longer have sufficient use for the life insurance. Seniors around retirement age may also consider selling their life insurance, even if they are free of debt, in order to receive a lump sum of money with which they may do whatever they please.

Keep in mind that different companies may have different eligibility requirements to be able to sell your life insurance policy.

Advantages to Selling Your Life Insurance

It might be easy to see some of these benefits, but others are a little less obvious.

  • You'll receive a lump sum cash payment right now. As mentioned above, this is especially useful to the terminally ill who have mounting medical bills.
  • You will receive more by selling your life insurance than you would if you simply surrendered it to the insurance company. It is possible for an insured person who is 65 or older or who is terminally ill to sell a policy with little or no cash value for a 100,000.00 or much more.
  • You won't have to pay any more insurance premiums. If your financial situation is becoming strained with no end in sight, eliminating premiums is a way to alleviate the burden.
  • You don't have to repay the money, like you do when you borrow against your insurance policy.
  • Even though your life insurance benefits won't be available once you die, you can still leave money to a certain person or organization it will just come from the money that is leftover after using the funds from selling your policy. So, selling your life insurance does not
    mean that you're definitely robbing your beneficiaries of their gift.
  • In some cases, the money you receive is tax-free.
  • There are no regulations or restrictions on how you make use of the money you receive. You may spend as much of it or as little of it as you wish, however you please.
    • Risks of Selling Your Life Insurance

      Understanding the risks associated with selling your life insurance will help you make an informed decision. Be sure to consult a financial advisor or tax attorney to make sure you understand the implications of the sale.

    • You might lose your eligibility for some public assistance benefits, especially those based on your income and assets (such as food stamps, welfare, Medicaid and some Social Security benefits).
    • There could be tax issues. Selling the policy will
      result in a tax bill if the settlement amount exceeds your cost basis.
    • With improved medical care, the ill person may live longer than expected.
    • You might face unhappy heirs. This might not be a problem for you, but it could lead to a long road of (possibly legal) complications and battles. Some settlement actually companies require the beneficiaries to also sign off on any sale, which could be good or bad, depending on whether or not you're dealing with a cooperative beneficiary.

      • Other Options

        If you come to the conclusion that selling your life insurance policy is not for you, there are other options (though none that would provide you with such a large lump sum). An insurance agent should be able to help give you more information on some of these ideas.

      • Borrow against your insurance policy
      • Cash out the policy if it has surrender value
      • Look into accelerated benefits or living benefits
      • Borrow money (from family or friends perhaps) and use the life insurance policy as collateral
        • If you believe that selling your life insurance policy is the right decision for you, make sure you deal with a dependable, experienced broker or settlement company to ensure that you get the best service and results from your transaction.

    • Second to Die Life Insurance Policies

    Posted November 15th, 2010 by Admin | No Comments
    Life insurance advice |

    Usually, the death benefit from a second-to-die life insurance policy is intended to go to the children , a charity or pay taxes owed after both spouses pass away.

    In the U.S. there is a marital deduction permitting you to leave an unlimited amount of assets to your surviving spouse with no taxes payable at your death. Those assets then become part of the estate of the spouse and if it includes a second to die life insurance polciy it could help pay any taxes. In Canada, there is more lenient tax treatment.

    There are also tax ramifications for small businesses, which is why business partners also purchase second-to-die policies.

    THE REASON TO BUY SECOND TO DIE LIFE INSURANCE POLICIES

    With a second-to-die life insurance policy your beneficiaries can pay debts with the proceeds of your policy, so they won't be forced to sell your house or liquidate assets to pay the bill.

    A second-to-die life insurance policy can help to construct a financial plan reducing the tax burden of wealthy individuals by creating trusts and using second-to-die life insurance as part of the estate-planning process.

    ADVANTAGES TO SECOND TO DIE LIFE INSURANCE POLICIES

    1.Less expensive. Second-to-die life insurance is usually less expensive than life insurance but depends on the blend of the ages. The premium is based upon the joint life expectancy.

    2.Estate Preservation. A second-to-die policy appeals to individuals who feel strongly about preserving their estates with the life insurance paying the taxes.

    3.Easier to buy. It's easier to qualify for a second-to-die policy than for individual life insurance. Since both insureds must die before the benefit is payable, the insurance company is less concerned that one of them might not be in good health.

    * Builds your estate. In some cases, second-to-die life insurance is marketed as a way to build an estate, not just insulate it from taxes. Much like individual life insurance, the death benefit of a second-to-die policy can ensure that certain people receive money, even if you spend every nickel.

    4.Second-to-die life insurance might make sense for people who don't have a lot of money but want to leave an estate for their children.

    Second to DIe Life Insurance

    Posted November 8th, 2010 by Admin | No Comments
    Life insurance advice |

    Usually, the death benefit from a second-to-die life insurance policy is intended to go to the children , a charity or pay taxes owed after both spouses pass away.

    In the U.S. there is a marital deduction permitting you to leave an unlimited amount of assets to your surviving spouse with no taxes payable at your death. Those assets then become part of the estate of the spouse and if it includes a second to die life insurance policy it could help pay any taxes. In Canada, there is more lenient tax treatment.

    There are also tax ramifications for small businesses, which is why business partners also purchase second-to-die policies.

    THE REASON TO BUY SECOND TO DIE LIFE INSURANCE POLICIES

    With a second-to-die life insurance policy your beneficiaries can pay debts with the proceeds of your policy, so they won't be forced to sell your house or liquidate assets to pay the bill.

    A second-to-die life insurance policy can help to construct a financial plan reducing the tax burden of wealthy individuals by creating trusts and using second-to-die life insurance as part of the estate-planning process.

    ADVANTAGES TO SECOND TO DIE LIFE INSURANCE POLICIES

    1.Less expensive. Second-to-die life insurance is usually less expensive than life insurance but depends on the blend of the ages. The premium is based upon the joint life expectancy.

    2.Estate Preservation. A second-to-die policy appeals to individuals who feel strongly about preserving their estates with the life insurance paying the taxes.

    3.Easier to buy. It's easier to qualify for a second-to-die policy than for individual life insurance. Since both insures must die before the benefit is payable, the insurance company is less concerned that one of them might not be in good health.

    * Builds your estate. In some cases, second-to-die life insurance is marketed as a way to build an estate, not just insulate it from taxes. Much like individual life insurance, the death benefit of a second-to-die policy can ensure that certain people receive money, even if you spend every nickel.

    4.Second-to-die life insurance might make sense for people who don't have a lot of money but want to leave an estate for their children.

    Save Money By Getting A Term Life Insurance Quote Online

    Posted November 1st, 2010 by Admin | No Comments
    Life insurance advice |

    Save Money By Getting A Term Life Insurance Quote Online

    When deciding or choosing what life insurance is best for you, you can avoid feeling pressured into a policy by searching for a term life insurance quote online. The service is terrific and it can be a fast turnaround because you control how fast or slow the process can be. Getting a term life insurance quote online is as simple as the click of the mouse. With so many life insurance companies now operating on the Internet, all you have to do is log onto the various sites and check out the rates for term life insurance.

    When you check for a term life insurance quote online, you do not have to pay for the quote. This service is free and you should request quotes from at least three different companies. This way you can do a comparison of online life insurance quotes. Each of the companies has a form that you fill in and they will respond to you with the quote- usually in less than 24 hours.

    Some of the required questions you will have to answer to get a term life insurance quote online are your age, occupation, medical history and whether or not you smoke. All of these factors affect the price the online quote you receive. A younger person will certainly get a much lower premium than an older person because the likelihood that heshe will die within the term of the policy is much less.

    Your occupation is also a deciding factor in getting the best possible online life insurance quotes. This is because the life insurance company looks at the dangers involved. If you do work at a dangerous occupation, then it is possible the company will have to pay out a settlement on the insurance before the term runs out. One thing you do have to remember with getting term life insurance quotes online is that these quotes are for a specified term, such as 10 or 15 years. If you are still alive at the end of the term you do not collect any money from the policy.

    Whether or not the life insurance company needs you to have a medical depends on your medical history. If you have a record of heart disease for example, it will affect the term life insurance quote online that the company will give you. You many get a policy with a clause inserted saying that should you die of this illness, there not be any settlement paid out. You so have to be honest in answering the questions for the online life insurance quotes because it could result in cancellation of your policy down the road. Then you are left with no policy and you will have paid out money in premiums for nothing.

    However before getting a term life insurance quote online make sure you have found out exactly what type of life insurance you need.

    Online Life Insurance Protection How Much Do I Need?

    Posted October 25th, 2010 by Admin | No Comments
    Life insurance advice |

    Online Life Insurance Protection How Much Do I Need?

    There are a lot of people getting quotes for life insurance online. The quotes requested are usually for standard amounts of 50,000 to 500,000. The amounts requested often indicate that most people have not taken the time to calculate the amount of life insurance that they need. This often leads to early policy terminations because a real need was not established at purchase. It is very helpful to determine actual needs and then purchase amounts accordingly.

    Basic Needs Purchase an amount of life insurance to cover the basics.

    1.Final Expenses This your basic burial expense need. Choose an amount and enter it into a calculator.

    2.Mortgage Balance Add your mortgage balance to the final expense amount.

    3.Short Term Debt Add your entire installment loan and credit card balances to your final expense and mortgage balance totals.

    Now you can purchase a basic need life insurance policy amount based on actual needs.

    Additional Income Needs The next level of a needs based plan might include a life insurance amount to replace income during an adjustment time period of your choice. You may want to leave your beneficiary a total of five years of your current income in the event of your death to allow your family the time needed to find other sources of income. You can now add this income need to the basics need amount to see if combining the two will fit into your budget.

    Educational Needs You can also purchase an amount of Life insurance for an educational fund. You can estimate future college costs based on inflation and then multiply the amount by the number of children in your household.

    These are a just a few basic needs and reasons for the purchase of life insurance. It isnt that difficult to do a mini-need analysis. You may save yourself some premium pounds because you have taken the time to determine how much life insurance that you actually need instead of purchasing a random amount.

    Low Cost Term Life Insurance We All Want It,

    Posted October 18th, 2010 by Admin | No Comments
    Life insurance advice |

    Low Cost Term Life Insurance We All Want It, This Is How You Get It

    Life insurance is probably the most misunderstood of all insurance purchases. It is by far the most selfless insurance purchase that you will ever make. Life insurance was designed to take care of the people that we love the most. The equity based plans have sometimes unintentionally misguided us away from the original concept of life insurance. Term life insurance is the purest form of that original concept. Term policies are also the most affordable forms of all life insurance. You can actually say low cost and term life insurance in the same sentence with no conflict of interest.

    Term life insurance is low cost for a number of reasons. Term policies are temporary. That means that the insurance company is on the hook for a shorter period of time. That reduces the rates and makes the product affordable .Sometimes the benefit decreases and that reduces the premium even more. Term life insurance is perfect for young families because they can purchase large face amounts at very low cost. Term life insurance is an excellent purchase for partnerships in business. Buy and sell agreements funded by term life insurance is an excellent option for new business start ups.

    There are three basic forms of term life insurance. Decreasing Term insurance has been a popular policy to cover a home mortgage. The Mortgage decreases and so does the insurance coverage. Level Term insurance is used to cover short term or intermediate term debts. Annual renewable term has a level and continuous face amount with an annual increase in premium. Shopping for term insurance is much easier that the permanent plans. Permanent life insurance has a lot more variables because of the equity build up and cash value accumulation. Choose term policy most appropriate for you and shop with confidence. The simplicity of low cost term life insurance will make your job a lot easier.

    Life Insurance Policy For Child Why Buy Life Insurance

    Posted October 11th, 2010 by Admin | No Comments
    Life insurance advice |

    Life Insurance Policy For Child Why Buy Life Insurance For A Child?

    There are a few of pros and cons about purchasing life insurance on children. Life insurance must have an insurable interest. There has to be good reasoning behind the purchase of life insurance on children. The first priority is to first make sure that the income producers in the household have an adequate amount of life insurance. Large amounts of life insurance on children with little or no life insurance on the bread winners will make little sense to an insurance company underwriter. Life insurance underwriting departments will often require a certain ratio of life insurance on parents to children. There are advantages in purchasing life insurance on children after the parents are insured properly.

    Most companies have children term riders that a very inexpensive. Children term riders will protect the insurability of the child. These term riders can be converted to permanent forms of life insurance when the child reaches the ages of 18-21. This is a valuable feature if the child is uninsurable because of health reasons.

    Permanent Life Insurance on Children Some parents have purchased permanent life insurance policies on children so that they can use the cash value accumulation later in life. Permanent life insurance is relatively inexpensive and should be considered on a child once the parents have taken care of their own life insurance needs.

    Why Buy Life Insurance on a Child?

    1.Protect Insurability Purchasing life insurance on a child will protect the Childs insurability.

    2.Cash Value Accumulation Purchasing permanent life insurance and funding it with adequate enough premium to produce cash for college education or future needs. Universal Life policies are excellent policies for this purpose.

    3.Final Expense This is the basic purpose for all life insurance.

    There is the added benefit of teaching the child about life insurance. Parents that show their children the benefits of life insurance prepare the child to take responsibility for their own financial future.

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