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.


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