Thursday, 29 December 2011

Advantages of a Whole Life Insurance Policy

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To begin, you must understand that life insurance falls into two very broad categories: Whole and term. The basic difference between life insurance and everything is as follows: A life insurance policy is unique.
In life insurance, as long as you continue to pay premiums, the policy does not for a lifetime is made. As the term applies, whole life insurance provides protection for life or until the person reaches the age of 100 years.
Whole life insurance accumulates a cash value (usually beginning after the first year). With whole life, you pay a fixed premium for life instead of the increasing premiums found in life insurance term. In addition, the life insurance has a cash value of the function, which is guaranteed. In temporary and all life, all of the premium must be paid to keep the insurance.

With level premiums and the accumulation of cash value life insurance is a good option for long-term goals. In addition to the protection of permanent life insurance is a life insurance savings element that allows you to create deferred tax money. The policyholder can cancel or abandon the whole life insurance policy at any time and receive the cash surrender value. Some life insurance companies may produce higher values ​​redemption guaranteed amount, depending on the loan interest rates and how the market works. Surrender values ​​of life insurance policies may be affected by the future of a life insurance company performance. In contrast to life insurance policies, which have guaranteed cash values, not guaranteed surrender values ​​of life insurance companies with variable capital. You have the right to borrow against the cash value of your life insurance policy on the loan. Supporters of the life insurance say the cash value of life insurance policy should compete well with other fixed income investments. 
Unlike term life insurance, life insurance provides a minimum guaranteed benefit at a premium that never changes.
One of the most valuable benefits of a life insurance policy is the opportunity to participate earn dividends. The insurance on the overall performance of its investment company based benefit of a whole life insurance policy. In addition, while interest rates for universal life insurance often set the interest paid on a monthly life insurance is adjusted annually. How many insurance companies, life insurance has many policy options. 

Monday, 26 December 2011

Survivorship Life Insurance

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Mr. and Mrs. X have an important heritage considering leaving a legacy to their children. As part of the process of planning, your financial advisor recommends they purchase a life insurance policy for survival.

Mr. and Mrs. Y have a son with special needs. They are worried about their financial security after they leave. His lawyer brought the idea of ​​a life insurance policy for survival.

The two couples decide to share more information about life insurance or life insurance, survival survival, and that is what they have learned to get.

Survivors' insurance life insurance joint survival or life insurance is a policy that insures the lives of two people, usually a wedding, but as a person.

Death benefits of a life insurance policy for survival are not paid to the beneficiary before the surviving spouse also dies. For this reason, life insurance of survival is known as the second die life insurance.

One of the main reasons couples buy the insurance for survival is to impose property taxes and other estate settlement costs. The policy uses marital deduction that allows you to defer payment on all federal estate taxes and death of the surviving spouse.

At this time all the taxes that have made on this important day to pay due to the appreciation of the property value.

This is where the insurance of the common survival stage. The proceeds of the policy will be used by the beneficiaries pay no property taxes, and meet other costs, eliminating the need to liquidate a portion of the estate.

The only drawback is that neither the few secure property rights can have on politics. The beneficiary of the policy must be a third party, as the couple's children insured or a trust.

About life insurance is purchased by couples who have children with special needs to ensure their financial well being. The product of the second to die life insurance to ensure that sufficient funds are available in the event of death of both parents are left for the child.

Sunday, 25 December 2011

Life Insurance - What is Universal Life Insurance?

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Many people are between the benefits and life insurance, whole life insurance provides intelligent. Enjoy the accessibility of imprisonment. They also love its flexibility. Temporary be canceled without significant penalty life insurance, and news began several different death benefits and higher amounts.

On the other hand, life offers something for protection against the risks non-life to death. The policy does not expire after a number of years, because the concept of life, so that consumers do not have to new reports. As a result, the cover can not be denied that in the future due to age or illness. Premiums will not increase. Because of these guarantees, but life is not flexible. The death benefit and the premium is determined at the time of signing the contract.

The solution for many people is a universal life insurance. Universal life has been described as a hybrid between the life and words of life, but this is a misnomer. Universal life insurance is a type of insurance for life. This allows greater flexibility and lower costs for traditional life, but shares characteristics of life: continuous coverage, premiums do not change for reasons of age or health, and the accumulation of value redemption.

The main difference between the life and words of life is the life of the hedge. With Standard Life insurance coverage is limited at a certain period of the term. At some point, either the coverage expires or insured. If the insured dies during the term, the death benefit paid to the beneficiary. If the insured survives the term coverage will cease at the end date of the policy. Some term life be renewed without physical examination, but premiums increase with age of the insured at the time of renewal. With a lifetime to continue indefinitely until the insured dies coverage. Universal life insurance shares this property with life insurance. Both are permanent life insurance forms.

A person can cover a number of life insurance policies for eighty or ninety. If an individual term life insurance is renewed or a new request, but the cost of insurance increases, due to increased mortality in the elderly. For example, for a 30-year term insurance for one 20 $ 500 000 years to life for only $ 245 per year, assuming he is healthy, do not smoke, do not participate in sports or extreme activities leisure and travel in dangerous areas of the world. However, serve a 60-year-old health and in similar circumstances, other criteria must always be at least U.S. $ 2,525 per year for the same 20 years $ 500,000 policies. At age 70, $ 10.680 per year will pay for the same policy. If a person develops health problems during the time that the expression of the life insurance premiums do not change. If the person does not have a term life insurance "renewable", then when the time and the person who made the request for term life insurance coverage, increase premiums significantly. If the person has developed or has suffered serious health problems such as cancer or a heart attack, he or she may not be insurable at all.

Not to increase the cost of the permanent life insurance policy over time or changes in health care. Coverage can not be completed, no matter what health problems have insured. Guaranteed insurability is the highest cost of permanent life insurance.

Another important difference between term life insurance and whole life insurance is that life offers saving features, while life is not the end. Term life insurance is "pure". It insured against death, and that's all. Life also insured against death, but also provides a mechanism for the accumulation of cash value or savings. Universal Life also offers saving features.

Early in the life of a whole life or universal life insurance, the cost of insurance against premature death is much less than the amount of the premium. Fewer benefits and rights of society - in a tax-advantaged savings account, the insurance company to file the excess. This amount is known as "cash value." These funds are invested by the insurance company. Investment income is credited to the account, which increases the current value. These funds are available to the insured in the form of a loan or withdrawal. If the insured cancels the contract, you will get the value of the money that the policy of "cash value."

Universal through the difference in the degree of flexibility of the life insurance policy should make adjustments. With whole life, the death benefit is determined premium and the value of the accumulation of cash at the outset. With universal life, the insured has the option to increase or decrease the amount of the premium (within certain limits) and increase or decrease the death benefit. For example, the policyholder can reduce premiums if the starting price priceless. If the insured wishes to accumulate or increase the death benefit plus the cash value, he or she may pay a higher premium.

Saturday, 24 December 2011

Term Life Insurance - Save Money the Smart Way

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Term life insurance is the simplest way to understand life insurance. In short, the insured person pays a minimal premium per thousand dollars of coverage on an annual, semi-annual, quarterly or monthly. If he or she dies within the term of the policy, the insurance company will pay the beneficiary the face value of the policy.

Features of life insurance

To better understand some of the features of term life insurance consider the following points:First, the term life insurance "pure insurance" because when you buy a term insurance that buying a "death benefit." Unlike other types of "permanent insurance" such as whole life, universal life and variable universal life energy capital, there is no additional set monetary value with this type of policy. Term insurance only gives you a certain death benefit.Second, the coverage is for a defined period (the "Term"), such as 1 year, 5 years, 10 years, 15 years, and so on. Once the contract is in force, it is in force, remain until the end of the period - 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 Life Insurance", the death benefit remains the same throughout the term of the policy, but as the insured gets older, the premium will increase gradually. Over time, the cost of a level term care insurance may be more than you are willing to pay for a single death. An alternative is the policy of "reducing term life insurance" in which the premium remains the same, but the death benefit decreases as time passes.Fourth, long-term strategies will be converted to permanent policies within a specific number of years. If you choose, it is important to obtain insurance coverage, converting may be something that should be expected. You can expect the accelerating cost of insurance premiums in the long run and convert your policy before the premiums become unaffordable. It is true that in the short term, the premium is usually higher than if you are with the long-term policy. But in the long run, this difference decreases due to the rapid acceleration of the term insurance premium as you get older. A permanent policy also accumulates cash value of the death benefit paid to your beneficiaries increased.

Popular applications of life insurance

Term life insurance is best suited if you want to protect your beneficiaries from a sudden financial burden as a result of his death. Some of the most common uses of term life insurance.Personal expenses, due to the death - If a family member dies or spouse's be direct costs. Many people buy a small political life care insurance, to cover these costs.Mortgage Insurance - Banks and financial institutions often insist that mortgage holders to maintain adequate life insurance to pay his mortgage. Such policies make the bank the beneficiary of the contract. If the mortgage holder dies before the mortgage is paid, the policy will pay. It is also a great benefit for the spouse whose purchasing power is expected to be reduced by the death of his partner.Business Insurance partner - will buy long term care insurance by employers, outstanding loans with their bank or shares used in the death of a deceased partner, if they had an agreement to do that. Most partnerships have an agreement of this kind, and insurance premiums are paid by the company.Key Person Insurance - When a company loses key individuals due to death difficulties for the company, which can often cause. Key person insurance is purchased by the company to a person as a "key." The company itself is made the beneficiary of the policy. So if a person is "key" dies, the company receives a cash injection to deal with problems related to the exchange of this person.

Get a term life insurance quote

Here are some things to consider when getting a life insurance quote:1 The cheapest rate is the lowest fare today not tomorrow. For instance, the cheapest premium today will likely be for a renewable annual policy. This policy is renewed every year and in that time the establishment of the premium. That's fine if you want to convert to a long-term solution (permanent insurance) in a year or two, or if you want a short-term insurance. But if you think you will need this insurance for a longer period, it would be better to commit to something like a political than a decade. This blocks the premium and death benefit in ten years. Not raise their prices until you renew.

Thursday, 22 December 2011

What Type of Life Insurance Policy Should You Get

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The main purpose of obtaining a life insurance policy is always to protect the people you love, in case something should happen. How much capital to pay debts, to support their families, or take care of all his affairs?

After understanding what the priorities should be protected from a life insurance policy is fairly easy to determine the right amount of coverage.

What type of life insurance

The next question is, what kind of coverage best suits your needs. To get the right amount of coverage also ensure that the premiums to fit comfortably within your budget.

Term disability insurance
Term life insurance is less expensive than life insurance because you hire an insurance policy. Your coverage is considered pure insurance, in this case, because they do not grow the cash value or participate in dividends from the company.

Instead, you can get the right amount of protection for lower premiums available. Term life insurance has also developed over the years to provide more comprehensive options. You can have a return policy premiums you pay over the term of the policy, but the insurance of all refunds of premiums at the end of the period.

There are also long-term strategies that you can provide to your age and health for the rest of your life, so you may have locked up the coverage and premiums for the rest of his life. This is an excellent and inexpensive way to get a permanent insurance.

How long should lock your premiums
The more you can lock your premium will be cheaper in the long run. The insurance company takes into account the risk of death during the term level. If you are 35 and get 20 political level and long-term fixed interest rate of up to 55 years. And because it is in the process of premiums at a younger age, the average risk and the prices will be lower than if you set the premiums on 55th

Most people need insurance that will last for the rest of their lives. If you can not permanently block a portion of your insurance at a younger age, it can greatly save on premiums. It happens very often that people need to seek new coverage after the fixed rate expires on your current policy, and because they are older now and have to pay much more in premiums.

Your health is also blocked in the first time you take the policy out. Many people are looking for insurance in the fifties and sixties that there is a kind of disease that makes the cost of the double or triple the cost of life insurance. The same logic applies to lock in your age is also good to keep in mind when you close your health. We do not know what will happen to us, and if we have locked in our secure and our insurability and premiums will not be affected by a medical event.


I always recommend always begin a long-term policy instead of a level to lower premiums and increase each year. Long-term policies, you can block his age and level of health for the rest of the time, while more expensive policy premiums increase each year based on their new era.

As term insurance is less expensive to get the right amount of protection means, I think this is the best choice for a large majority of people, life insurance.

Surrender value of life insurance policies: considering

First, a word of warning on the Functioning of the life insurance

An agent that suppresses a company on the other doing their clients a disservice. Each company has its strengths and weaknesses, and each company focused on certain demographic to try to create a competitive advantage. There are 17 life insurance companies in the Fortune 500 only. These companies have similar investment portfolios and business in a way that is more common than not. Eight of these are mutual companies, nine are companies and they operate to make a profit. The most important thing anyone can do is a means to help the market purchases of the company that will meet your needs can make. Someone who is a smoker with high blood pressure have better options outside company that. Onto non-smokers without health problems Find the cheapest airline market for his age and health can save you thousands of dollars.

I used for an insurance agency which sells a triple-A-rated insurance worked. When I worked for this agency, my comrades and I taught mainly the benefits of life insurance companies. This situation is not unique.

The agencies Administrators friend captured agents to grow a business, you earn commissions when their agents sell these products. Do not assume that life insurance agent experts about the benefits of different types of companies and insurance companies, because many of them are not aware of the benefits-about their own business. Instead of consulting with their customers and make purchases on the market are pushing a product that is not always coincide. Too many people were agents tips for life insurance, as they are trained to look at supply these products to every customer.

When considering an insurance company, it is always beneficial for some and difficult for others

When you sit down with an agent who is on a list of benefits for a single insurance company, keep in mind that most of the benefits of compromise are real. For example, if an insurance company is to be noted that a triple-A companies are likely to be conservative, to put with them. A triple-A rating is great, but it is really necessary if you plan to dividends from corporations, or in other words, part of the purchase of life insurance. No need to pay more for the privilege of paying with a triple-A credit rating company, as many agents to exist. AM Best part as a company with an A-regarded in excellent financial health and there are many qualified companies with the best deals of insurance if you have no intention in life.

Whole life insurance is a good idea

For some people, life insurance can be a great addition to your financial security. I sold a life insurance policy based on the following advantages.
1) It has a guaranteed return that is constantly creating the cash value of the policy.
2) There are permanent insurance during their lives are insured.
3) You may pay more premiums for a number of years, because the company's dividend will be sufficient to keep the policy in force.
4) It allows policyholders to take money from the policy in the form of a loan, if you select another option if you need money.
5) the development of policy on deferred taxes and tax-free as long as the policy remains in force.

The problem may be that many of these benefits are state life insurance as an asset or investment. Life insurance should always be taken into consideration for the provision of the first death. If you have both your IRA and Roth 401 (k), at least three months expenses in savings available and are already maxed out for something else to accumulate savings, life insurance search can be a good option. The fact is that life insurance is a good option if you maximize the possibility of their retirement funds and qualified in terms of their savings with a conservative tie to complement your life insurance.

Lifetime can be a mistake for two reasons

There are risks, put your money into life insurance. The risks are not clearly explained, because the agents increase focus on the present value of the guaranteed dividend each year. However, buying a significant risk of all life insurance premium payments for a number of years, and then not be able to cope with future premiums. Bank insurance on what happens to a certain percentage of the insured.
When this happens, you are accumulating in danger of losing thousands of dollars in premiums without profit to a present value. If an expiration or can not keep up with the premiums of the life insurance is to keep your premiums without accumulated cash value or without insurance in force.
These global life insurance policies are structured so that substantial costs have before and it takes at least two years before their premiums begin collecting cash value. It will take a decade before the premiums that you will be accommodated in the policy equal to the present value of the contract.

What jobs joint life insurance cash value
The other risk in life is to understand how the surrender value of the policy and too much of it. The residual value of the contract is liquid, but the insurance company will allow you to make 97% of it to protect itself from the expiration of the policy. The money removed from politics politics lends interest.

Suppose you are in the first 20 years of his life and politics take a loan from the cash value of the contract. The interest rate is 8.0%, the interest rate paid no dividend is 6.85% and the interest paid dividend yield is 7.9%. Note intensified that the insurance the interest rate on the amount borrowed or lent amount of its cash value. This reduces the cost of credit, but the credit an obligation to continue to pay interest. For example, the cost of borrowing in this case 6.95%.

(The interest rate on loans (8.0%) + (dividends interest (6.85%) - when lending interest rate of dividend (7.9%)) = cost loans (6.95%).

The surrender value of the policy is a double-edged sword, in fact, because it means that you will not be able to keep up with a significant risk premium. It is for people who practice, determined to repay the loan quickly, so grows the policy on dividends rather than the obligation to pay interest. It is ideal for people who are always trying to borrow from the policy because dividends are amplified and eventually be able to cover the costs of annual premiums. When this occurs, the risk of loss is negligible. However, it takes a long time to make, and it really depends on how disciplined you can afford to be with the additional cost of these premiums. If you want to have control of your money up front, is not an argument that you can buy term and invest the rest in place to take advantage of the general fund of the insurance.

Your personality profile and the budget should be consistent

I suggest you take a look at your budget and the amount of the order that you want your money for at least the next ten years, if you are considering a lifetime. Since long-term care can now permanently on the age and health in the same way that the whole of life insurance, the most important question is whether you want to control which block invest premium difference. Many people prefer life insurance because they do not have to think about investing the difference, the insurance for them. You can also make your death benefit by the amount of growth of the cash value and as his own creditor, if you ever want to borrow money from the policy.

A few other points about life insurance
The component of the cash surrender value of a life insurance policy must be addressed. The first is that the present value is based on the capitalization of dividends. So the more you continue to pay premiums is the cheapest. The second is that if you go with a reliable insurance pay dividends usually unsecured on the results of the investments of insurance companies base. This is where notes is important to note, as they are now involved in such dividends. Also, if you have activated the cash value growth and modest debt ratio policy in the future will probably be enough to keep pace dividends beyond the requirement of continuing interest. However, if you leave the political gains will be taxed as capital gains, and you have to pay a redemption fee also. If the policy is and die while it's still excellent in force, the death benefit to cover the cost of borrowing has to be paid off politics.

Wednesday, 9 November 2011

Common Life Insurance Traps And How To Avoid Them

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Beware of these common pitfalls that life insurance can reduce your value to your family ... or allow the payment of compensation to the IRS.

Trap: With life insurance too long. To work over the years and a family, you probably have a lot of life insurance to protect your family against the possible loss of your income.

But like his approach more years - with her children grow, the mortgage and retirement accounts funded paid - Your insurance can be greatly reduced.

For many, the justification for owning life insurance is to pay estate taxes. However, this requirement has been reduced in recent changes in tax laws, the mass and the amount of the gift tax for individuals to raise $ 1 million exemption.

After payment protection insurance unnecessary past the possibility of higher yielding assets to acquire.


Check your insurance needs based on changes in their personal circumstances and their inheritance tax exposure. If you find that you are getting the hint ..

* Exchange rate of life insurance policies issued on a tax-deferred annuity from an insurance company to get a better return. This can be organized through a tax-free exchange, whereby any taxable gains from the sale of the insurance policy.

* The gift of your insurance policy to charity. You receive a tax deduction for the costs under the policy, the premiums you have paid.

* Enter a political gift for your child or grandchild. The advantage of the policy is tax-free to the recipient, the child and provides valuable benefits to financial security. The gift will also remove your taxable estate policy, assuming you survive three years after the donation.

You can avoid paying gift tax on the transfer of your annual gift tax exclusion (currently $ 10,000 per recipient, or $ 20,000, where donations are made by a couple) and, if necessary, with a portion of your property and the amount of gift tax exclusion .

* Enjoy the policy. This money is in your pocket, but you will the tax base to the extent that the amount of the police as to what he realized get paid by premiums.

Estate Planning Tax: If you find that you still need life insurance to cover the possible find Erb, you should use a second order policy that covers you and your spouse and pays benefits on death of the victim die.

The estate tax marital deduction, all assets of a spouse estate tax free to the surviving spouse, making it the death of the surviving spouse's tax liability on the death of the couple is due to password.

A second, can die policy funds for a tax bill that significantly lower cover the cost of the goods purchased two insurance policies on each spouse separately.


* With insurance on your own life. This may be the insurance benefits are subject to estate tax at rates up to 55%. Because if you have a policy on his own life income in your taxable estate include the

Avoid this trap by the beneficiary of the insurance that you have, or the creation of a life insurance trust to support the policy and distribute the product to your specifications.

You can always pay the premiums for the policy, donations to the contractor (or trust beneficiary) with its annual gift tax exclusion for tax havens gifts.

Advantage: With his life insurance, which is the beneficiary of the insurance holding tax-free property.

The mistakes to avoid ...

* With insurance on your own life, and you name your spouse as the beneficiary. Insurance benefits escape inheritance tax his death because of the unlimited marital deduction - but if her husband dies ownership, the product may be taxed in his / her heritage.

* Possession of a life insurance a person and the appointment of a third party beneficiary.

Example: One spouse has a life insurance on the other spouse, and the names of a child as a beneficiary.

The catch is that because the owner of the control strategy beneficiaries pay the benefit to the recipient is a taxable gift by the contractor received.

Also avoid this trap beneficiary of the life insurance policy or a life insurance policy in trust.

Important: If you define a life insurance trust to his own insurance, make sure that the trust developed by an expert in the field. Trust documents, non-specialists are made easily confused contain profanity, not the technical requirements, which the trust fails.

* Borrowmg against life insurance. It can be tempting to borrow against life insurance because the loans can be a source of money tax-free and low interest rates.

But some of the pitfalls of borrowing against insurance lead ...

* If you borrow against the insurance company reduced the insurance benefit for any insurance, so that they more exposed to financial risk families.

Dangerous Scenario: In general, interest on a loan against the insurance is not paid in cash but will be deducted from the policy. If the loan is not repaid, and the compounds of interest can reach the loan equal to the value of the policy. Then the policy will end, and you get the tax base in the amount of the loan is not paid (a "forgiveness") minus your basis in the policy, despite receiving no cash needed to implement payment of income taxes.

* If you borrow against the insurance company and then transfer the contract to another person for the benefit of the policy are subject to income tax.

Why, if a policy was loaned by gift, the recipient will have purchased the policy as to the outstanding loan obligation with the amount of the loan is to accept the purchase price.

And by the Tax Code, the purchase of an insurance benefit from the current political life is taxable income to the purchaser if the purchase price is higher than the base of the dispenser in politics.

Example: A father has his own life, which has a cash value of $ 100,000 to $ 500,000 insurance policy on his /. It has a cost basis of $ 60,000 in politics. He borrowed $ 90,000 from the cash surrender value of the policy reduced to $ 10,000 then made a gift of a child policy.

The result is that the child shall have acquired as the policy to take over the loan obligation of $ 90,000. Therefore, this policy, the $ 410,000 income tax base for the child when paid rather than tax-free.

Sunday, 30 October 2011

Everything About Life Insurance!

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I want to start by 2010 with an article about life insurance. Many people find this morbid subject, but believe me when I say that this contract be taken as important as the will and needs to seriously say health insurance. Due to the length of the details of this article, I have provided chapters for easy reading. I hope this will teach you life and the importance of their need. (Note: For a better understanding of "you" is the policyholder and the insured)


1 = Presentation

2 = If / When you life and

3 = the difference between an insurance agent and broker

4 = type of policy

5 = What are popular types of runners and riders

6 = The medical examination

1) on life insurance in general:
It is a contract between you and an insurance company a certain amount to pay (the premium) to a company in exchange for a performance (the so-called death benefit, value, or policy number) receiver (the person you want to pay at the time of his death ). This can vary depending on the type of policy (see a time), your health, your hobbies, the insurance, the amount you can pay premiums and the level of performance. It seems overwhelming, but not if you. The right agent or broker

Now many people can say that life insurance is like gambling you bet he will die in a certain time and do not bet the insurance. If the insurer wins to stay bonus if you win ... so that they die, the death benefit is the beneficiary. This is a very morbid way of looking at things, and if this is the case, you can say the same for health insurance, car insurance and rental insurance. The truth is that you have to reduce the burden of his death, a life insurance policy. Example 1: A married couple, both professionals who make a good living and have a child like any other family monthly expenses and a spouse has died. The probability that the spouse to return to work the next day is very thin. Chances are, in fact, that their ability to function in his career, which reduce the risk, because you can not pay, or the use of savings and investments to pay for these costs before death and taxes funeral expenses. This can have devastating effects. Example 2: lower middle class family, the death occurs in 1 of income groups. As capable of its current financial lifestyle to preserve the family upright?

Life insurance is the ability to reduce the risk of financial burdens. This may simply be due to estate planning in the form of cash or taxes.

Important definitions:

The Insured: The person who is covered by insurance (he / she is not the owner of the policy)

The (political) Owner: The person who ordered the premium paid beneficiaries, and basically is the owner of the contract (the insured must not ... I hope you understand that it is either a /).

Review: Also known as the death benefit. The amount to be paid to the beneficiary.

The beneficiary: The person / people / organization who receive the face value (death benefit)

2) If / When a life insurance policy:
First, you should your beneficiaries once a year to review its policy every 2-3 years. It's free! You need to ensure that beneficiaries are paid to people / person you want! Divorce, death of a disagreement or something you do change your mind about a particular person to be able to receive benefits, so make sure that the right people, real estate / trust, and / or organization (preferably non-profit) to to get the benefit. In addition, it is necessary to check every 2-3 years, because many companies can offer a premium decrease or increase, see the profit when you renew your policy or if you are a subscriber, you can pay premiums sees compete for your company. Anyway, this is something that you consider to save money or increasing the amount of policy should! It's a win-win situation for you, so you should have no reason not to have.

3) life insurance broker or agent, what is the difference?:
The main difference is that an agent usually is an independent businessman who usually works with various insurance companies to give customers the best possible policy while the broker works for a specific company. My personal advice: Always choose an agent. Not because I am myself, but because the agents can work to your advantage by offering various products, and prices look like drivers are available (see below), as well as the advantages / disadvantages of each insurance company. If you do not like a particular insurance company should notify the agent to move to the next door (if they persist for some strange reason, fire). Note: The agent must complete the payment by the company you choose, you will get particular. When an agent asks for money up front for anything, RUN! There are also insurance consultant salary, but to keep things simple, see an agent. Consultants and agents are also very good at reviewing existing policies to reduce premiums or increase benefits.

4) types of activities:
There are two major categories: temporary and permanent insurance. In each of these two categories have subcategories. I will let you know at a glance whether you can make the best choice for you and your family. Remember, you have real estate / trust or organization as a beneficiary. (Note: There are more sub-categories within these sub-categories, but the difference is so small and clear that I included in this article as soon as you speak with an agent has sufficient knowledge in this article, you know what questions to. questions and whether the Agent is for you).

Nursing care: A term policy where the receiver only after the death of the insured (you) in a certain period of time (hence the word "Term") shall be paid. Term life insurance is usually less expensive with a lower death benefit. Some do not require medical tests, but expect to pay a higher premium because the risk of insurance is unknown. In addition, long-term care usually do not accumulate cash value (explained in permanent insurance), but can at the top of your permanent policy (for those who may have a lid) to buy:

Convertible: ability to convert permanent policy. There are some very good policy, provided no medical exam, play or dangerous driving at some point need to convert a durable cover with all the benefits it has to offer permanent insurance guarantees.

Renewable Term: You can renew a term policy without evidence of insurability.

(Are ideal for those who are young adults and wait 10 years to get a raise) fixed premiums for a period of time, increased: Journeys.

Increase / decrease in term increase or decrease in the cover of the total, while the premium remains the same.

Group of mostly used by employers or associations. It involves many people to reduce the premiums. (Ideal for small business)

Permanent Insurance: As the name suggests, provides coverage for the entire life of the insured. It also creates cash value for tax purposes is great because when you borrow money to find out about any tax consequences of the redemption value. Few policies may have on the general retreat of taxes. However, in most cases, if you remove the value of money in taxes only to the premium (the higher amount), which is fantastic to pay. Make sure that your agent knows not the present value of death benefit grows also subject to 10% VAT! Check Shipping costs may apply for retirement, so please check with an agent who can help you with this information. You should consider permanent life insurance if you have a family and do not mind an increase in premium (the amount you pay) for a few dollars compared to term.

Traditional living room: pay a fixed premium throughout the life of the insured, including the accumulation of cash value cover.

Single premium life insurance: life insurance for a fixed amount (usually one that is very large sum for a large death benefit).

The whole life: like any traditional life, unless you dividends that can be used as payment or to pay dividends for you! There is no guarantee that dividends will be paid, this will depend on the performance of the insurance company.

Limited Payment Whole Life Insurance: limited payments for life, but requires higher because you are, in fact, paying a premium short time. This is about the amount of payments (10, 20, 30, payments, etc.) or a specific age (life is payable until age 65, 75, 85, etc.).

Universal life insurance: Premiums flexible flexible nominal value (death benefit) to a number of factors unbundled price. Example: If you pay X amount, you will be a lot of X. covered

Indexed universal life: premium / benefits with flexible repayment value is linked to the development of a specific financial index. Most insurance companies rate (% growth) does not go below zero credit.

Variable life insurance death benefit and cash value fluctuate according to the investment performance of a separate account investment options. Usually, insurance policies guaranteeing the provision falls below a specified minimum.

Variable Universal Life Insurance (also known as flexible life insurance policy with variable capital and universal / 2 life Premium II): A combination of variable and universal, that premium / flexibility death benefits and flexibility of investment.

Last survivor universal life insurance (also known as survival or "second to die" Insurance) covers two people and the death benefit is paid only if the two insurers were killed. This is fantastic and a bit of a must for families who pay property taxes (usually high net worth).

5) broker life insurance, what it is and why it's important:
Rider is the name of a function that is added to your policy. This results in specific increases for policies that can be mixed and put into effect. There are several types of runners would need another article about Riders (insurance and new types of drivers often) to write, but I at least, the most popular name (and in my opinion the most important), you should consider when choosing a policy. Riders to the cost of the premium, but not easy to take the runners, but it can be a life saver!

Accidental Death (AD & D): Supplementary death benefit paid to the beneficiary if you die from an accident (eg traffic accidents, falling down the stairs). This is especially important if the insurer is often relatively young and has a family. Please note: You can purchase separate insurance and AD D.

Accidental Death and Dismemberment Rider: As above, but if you lose two or view members pay a death benefit. Some policies may offer smaller quantities, if the loss of one eye or one limb. This is ideal for those who work with their hands.

Disability Income Rider: You will receive a monthly income if you are totally and permanently disabled. You are guaranteed a certain income level. Pay attention to detail, according to the police or will be paid for the duration of the disability or the date of the driver.

Guaranteed insurability rider: a chance to earn additional coverage in increments of age and years of the policy without checking the eligibility of insurance.

Level term rider: it gives you a fixed amount of addition to your permanent term insurance. This supplement can add 3-5 times the death benefits or policy. Not a bad deal!

Waiver of premium rider: If you are disabled, which deserve to incapacity / income, the waiver will relieve you of the payment of contributions, while the policy remains in force! There is a huge gap between policy and business insurance as well as the devil in the details with this jumper.

Advantages of family income: In case of death of the insurer, this change provides an income for a specific period of your family.

Accelerated Death Rider of the service, an insurer who has been diagnosed with a terminal illness, receive 25-40% of the death benefit of the policy (the decision is between the insurer and the insurance companies based). Thus, the death benefit will reduce, but depending on their economic situation or lifestyle, this term should not be taken lightly and should be seriously considered.

Long-term care rider: If the health insurer forced to stay in a nursing home or receiving care at home, this pilot project will provide monthly payments. Please note: The long-term care insurance can be purchased separately for more benefits.

6) Medical Examination:
This section is not to scare you, but mentally (and perhaps physically) to prepare for a medical examination in order to know in this way, what to expect and can get the lowest premiums in order to receive the maximum death. This really should not be a problem if you work out regularly and maintain a healthy eating habit (Notice I said habit and not a diet. Diets do not work long term).

The test is required by most insurance companies. Many temporary insurance requires only expect a small death benefit and / or more premium. The idea that the test is not only to see if you are insured, but also see how they pay the owner insurer / policy. The test is going through an "Ambulance" professionals, independent contractors are hired by the insurance company or home or have an office in the / insurer conducted the visit. They are professionals who know what to look for licensed! In rare cases, the insurer for a "medical certificate (APS)," ask their doctor of this should be prescribed by your doctor and make a copy for you. TIP:. 'S job, "paramedic" is that insurance is a reason to raise premiums is any details that are not provided.

First party (called Part 1 or A) is filled in by the agent or by you. Part 2 / Part B is a nurse or doctor. It is best to contact your travel agency specialized in mobile clinic exam exam easy for you. Paramedic will contact you to arrange an appointment. The review is not an option, so it is not a question of yes or no, but when and where. This comprehensive review will not cost you anything except time, so that time, life insurance is important to us!

The nurse / doctor your medical history (questions), physical measurements of height and weight, blood pressure, pulse, blood and urine. Other tests varies according to age and number of contracts (yes, provided the greater the benefit of death = more tests available). Well, if the policy is important, insurance can not send an ambulance, but requires a medical examination you. Of course, he was covered by the insurance, so do not forget my advice before! This test may even be a stress test and crazy complementary tests to see if you are eligible for significant amount and low quality. On the other hand, if you choose an insurance policy under which only a simple test, the paramedics, no further tests above.

What we are looking for Nurses / Doctors and health conditions that can shorten your life. Remember, there are insurance companies, to conduct business, and if you are a debt, then it may not be a danger to drink or increase the premium for the tolerable risk. It takes blood and urine for the following:

- The antibodies or antigens of HIV

- Fat and cholesterol related

- Antibody to hepatitis

- Severe liver / kidney

- Diabetes

- Impaired immunity

- The prostate specific antigen (PSA)

- Drug testing and cocaine

Results: We ship directly to the subscribers of the Ministry of Interior of the insurance company for review. Often you can apply (must request in writing) to receive a copy of the results, but many insurance companies do this automatically. Anomalies are often, but usually follow a problem and talk to your doctor (remember, the insurance company will see in these tests with a "cone of fine teeth," look what the risk). Subscribers can use the test results and the application (remember Part 1 / a? Ok, now want to know if his lie to be seen) and determine the amount of the premium. Smokers pay more, all the nicotine in the system as a smoker, but only socially.

The premium is a category you fit in. It really depends on how the insurance as determined, but the general rule is that if you are a higher risk, you may pay a higher premium. If you are a standard-risk pay a standard premium, and if you are a practical risk, you pay a lower premium.

You can change the policy after receipt of the final budget after taking into account declining, but remember: All results will be part of the group of MIB (Medical Information Bureau) data. It's a clearinghouse of medical information, insurance, information on the application of the Life / Health use / Disability Income / Long Term Care / Critical Illness Insurance can store. Seven years is therefore database. You can have a free report a year (eg, a credit check) on their website that I included at the end of this article.

Thursday, 15 September 2011

The History of Life Insurance

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The history of life is not very difficult to understand. Today, life insurance is simply a contract established between a person and an insurance company that the company must pay the beneficiaries of the insured if the insured dies. But where does the idea of ​​death is insured? Who were the first to put this idea into practice? What do they do if the amounts are not as high as that of companies in the life insurance today? When did the current life insurance industry? These are all very interesting questions and the fact of the matter is that some of them can not be answered with a high degree, but we know a lot about the history of this wonderful thing, now covers people in the world.

History The first signs of life

Historians have sought the true beginning of a lifeinsurance as we know, but have decoded the first small steps that eventually ended in the cash payment of the death benefit. Store by ancient Chinese sailors Financial Network hackers steal their possessions carries many other freighters prevent in this way, if a hacker stole the cargo of a ship, do not lose the entire load. A little later in Babylon traders simply loans that are returned when the work content is delivered safely was granted.

So what does this have to do with life insurance? For these two civilizations prevent losing everything. They made baby steps that would help in the long run. Life insurance as we know, however, began in the city of Rome. The inhabitants of this civilization decided to form what they called "burial clubs". These clubs are designed for one purpose, to help in the event of an unexpected death of a member of the club, everyone would pay their funeral expenses and the family survive with little money. The concept of life insurance because they knew that the spectacular end in 450 AD when the Roman Empire fell and practices have been abandoned for a long time. It is also important to note that many historians agree that about the same time, Rome, the empire of India and its citizens as "burial clubs" to help pay for the funeral and educated people with expenses. A key to this game shopper Financial Network is the "Yogakshema the name of the Life Insurance Corporation of India Headquarters" the Vedas.

Great Britain and Step History of Life Insurance

Modern life insurance, but do not begin until the British decided to try to make it work. The practice of life insurance was banded in the entire European continent, with the exception of England and it was only the British who are the largest life insurer known European countries started today. It was the middle of the 17th Century decided the streets of London, England, a group of people in the house of Lloyd coffee collected and come up with ideas about life insurance. The cafeteria is a famous place for merchants, ship owners and merchants, then that would be the perfect place to know about life insurance is that most of these people had to talk money.

History of life insurance in the United States

With the British know the basics of life and the things that might help people such as life insurance, decided to try it in the United States of America. After talking about how they decide to go on the first life insurance, decided that the best currently known is the British model. The first life insurance policy was founded on American soil in the colony of South Charleston, South Carolina in 1735.

Some 20 years later saw the whole colonies, it was a good idea when the Presbyterian Synod of Philadelphia has decided to sponsor the first life insurance company in the United States, wrote their first policy year in 1761. The problem with life insurance at the time was that many, in contrast, because religious groups that it is as if anticipating the death of the religious zeal of the self and in the colonies of North America would in time, but it proved a challenge to be all began.

The life insurance industry as we know it today really started in 1840 settled because of religious groups, and not to interfere with the government on matters. Another reason that life insurance companies found in New York and Chicago Fire, which killed many people in both cities. Then more and more life insurance companies began to come and in 1900 the company has really grown. People want to be protected in the event of accidental death.

The year 1900 proved to be a period of growth in the life insurance industry. Two wars have continued, and many people have decided to make sure to establish a secure future for their families money. It is also said that after an attack on the country that most people buy life insurance. No one can resist simply because after Pearl Harbor, many people panicked and decided to open the political fear for their lives. The same thing happens after the beginning of this century, when the attacks on the World Trade Center. The people have decided that it is not worth protecting and small bonus every month was better to leave their families of the financial burden.


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