Showing posts with label Best Life Insurance. Show all posts
Showing posts with label Best Life Insurance. Show all posts

Friday, 15 June 2012

How To Buy Life Insurance You'll Want To Keep

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Not everything works in life, even in times of life insurance. If you are paying premiums, your life insurance mistakes - ie hedges. If you are paying for a life insurance and overcome the period of the insurer (maybe 30 days), lapses. Make sure there is an expected consequence is not provided by the deadline, and you can "push" the same life insurance.

If you stop paying for a life insurance policy, you can read more leeway. If you have accumulated cash value in the policy, your insurance is likely to account for the present value to take to cover premiums.

According to the "U.S. individual life insurance persistence Day" in 2007 LIMRA International and the Society of Actuaries (SOA) is the entire report period 3.5 percent for life insurance, 7 percent for insurance Term Life, 4.6 percent for universal life insurance (UL) and 5.7 percent for universal life insurance policy with variable capital (LCV).

Some people pay for decades in their life insurance policies, and then throw in the towel and cancel their policy. What happened?

There are countless reasons someone decide to cancel a life insurance policy. Most do not need to continue to do with discretionary income to pay the premiums. John Dressner, vice president of the LIFE Foundation, a non-profit consumer education, said: "The failures are usually not for lack of desire, but because the financial conflicts to cover."

Experts have seen life insurance, life insurance people in the event of job loss, divorce, large medical expenses or loss of business means that tight budgets have fallen. Or buy a new TV instead of paying your life insurance premiums. (True story).

Other times, policyholders are replacing your existing policy with a new one.

Sometimes the decision is to have effect, is more emotional: The benefits seem to far in the future.

And sometimes losing insured contact with the agent who originally sold their life insurance if you think no one is available to drop your questions to answer.

Dressner points out that "someone bought it for a reason, because they wanted to protect." If you want to abandon the current policy of life insurance, whether you want to cover in the future to think about buying a new policy, a higher rate of life insurance because of their age and cause potential health problems.

Although there are no studies about the exact reasons why people are policy expired, we can learn from the past, life insurance buyers who leave the ship. Here are some tips for shopping for life insurance error based on other buyers.

Choose a guaranteed premium for this coverage need.

If you are looking for term life insurance, consider purchasing a policy of guaranteed bonuses during the period you are insured, instead of a raise after his term premium guarantees. Study LIMRA / SOA show that thermal gradients peak after periods of contribution to the level of guarantees. Maybe assured satisfied wage premiums, but were not prepared with a higher rate of life insurance on.

Consider: dropped 40 percent between its policy buyers in 10 years, when he finished at 15, when premiums were not paid the premium guarantee period and 30 percent of the seats.

In addition, those who are "poor" ratings without (issued by health problems) pay their policy in greater numbers after the first hours of warranty costs by LIMRA and SOA.

Buy adequate life insurance to cover your needs.

Did you buy a life insurance policy with a face value of up? Think if this policy is sufficient to cover you, because history shows that almost half of the people abandoned the policy of life insurance of $ 5,000 or less in the first year (more than 45 percent when to LIMRA / SOA study) . People with life insurance are much more common, rather hold on to them.

This trend extends to other types of policies. For example, buyers of the policy lapse long annual term of less than $ 200,000 more in the first five years that the buyer of broader policies. (After five years, the gap is closed.)

The difference in the size of the life insurance is quite remarkable with UL, where faced about 33 percent of people with the policies under $ 15,000 expiration policies of each of the first three years, compared to about 5 percent of those 10, the high quantities.

If you buy a whole life insurance, long-term commitment.

High thermal gradients for life insurance in the first five years. After that, prices are set within 3 to 5 percent of all life insurance, according to LIMRA and SOA. Do not throw away your money by paying for a whole life insurance policy from one to five years, only to abandon them.

Make sure that you understand what you are buying.

This is especially true if you opt for universal life and variable universal life energy capital in search of many "moving parts" that can have influence on the overdue premium and death benefit.

Achieve coverage of their life stage.

If you are under 30 years and life insurance purchase, carefully check whether you are required to pay the bill for the premium. Others, like you, 20 to 29, leave policies by many as the biggest buyer of LIMRA and SOA.

Find the way to pay.

Consider the payment of the premium account by electronic transfer from your bank account. Policyholders who are to pay this way more willing to keep their policy. Maybe because they do not have to sit down and have a check

Adding a "disability waiver of premium" rider on your life insurance.

Experts from many life insurance companies are no longer an obstacle to the insured gets a job. Disability waiver of premium rider cover your premium payments in this case.

Store in a good life insurance rates from the beginning.

If you issue a directive with a smoker or levels of "bad", make sure you follow the premium payments. The inhabitants of this political class gradient common in the first five years. For example, about 18 percent of smokers ends with life insurance policies in the first year, compared to 11 percent of the Non smoking, according to LIMRA and SOA.

No matter what type of course you fall in the knowledge that got a life insurance policy at a competitive price premium pay your bill easier.

Amy Danise is a staff writer for Safe Visit for a comprehensive array of comparative auto quotes, life and health, including an extensive library of originally written and decision-making tools that are not available from another source articles. dedicated to providing objective information to insurance consumers. Visitors can obtain instant insurance quotes from more than 200 leading insurers, achieve maximum savings and have the freedom to buy from any company shown.

Friday, 30 March 2012

Easy Ways To Get Affordable Term Life Insurance?

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If you are looking for a cheap term life insurance, then this article is for you. Contrary to popular belief temporary affordable life insurance can be a wise choice for many people. In most cases, the only disadvantage of term life insurance is the term of the insurance. Most insurance companies will only lead to a life insurance policy to a maximum of 30 years. With this problem, there are many consumers who opt instead for the Standard Life insurance can also be a policy of monetary value. The monthly insurance premiums or for this type of life insurance payments are usually more expensive compared to a standard of living for the duration of the insurance contract. These guidelines provide a standard value of life insurance policies life and have savings of integrated programs. Whether or not the balance, such a policy to buy a life insurance decision you can make is.

I think you're still interested in the benefits of life insurance and how easy it can be to find a really affordable term life insurance. The best place to buy affordable life insurance is available through the Internet. The ability to instantly and easily compare hundreds of life insurance quotes from many different companies gives you the opportunity to really get the life insurance more affordable with all the features you. Interested in

In fact, many insurance companies offer websites that are easy to use and easy to navigate. Best of all you do not have to worry about talking to an insurance agent that you feel meet only interested in a sale on the spot your life insurance needs. If you use online access to the submissions can view to see quickly compare insurance and insurance quotes, which insurance company offers the best policy for your needs at an affordable price. To expedite the process, should some information about your current health status have available. Information, such as your current weight, blood pressure, cholesterol and medical history, if available, to accelerate the process of life insurance quote and more accurate rate on your life insurance quote without end.

There are some bits of critical information that can help you lower your life insurance rates term, of course. For example, if you are just a checkup (which should be done every year) and can show that you have lost weight or cholesterol reduced so that you can offer insurance quotes affordable term life insurance. Also, if you were a smoker and decided to stop may be entitled to a reduction of the current life insurance.

Other methods to achieve the life insurance costs lower pocket to turn your current insurance. Some offer a small discount if they have a secure web automatically signed payment from your bank account. More and more companies offer significant savings for each additional amount of insurance coverage. Be sure to compare what prices between the amount that $ 250,000 $ 500,000 and more. One thing to consider is your age. As with most life insurance, term life insurance is cheaper the younger you are, so if you are unsure whether or not to purchase an affordable term life insurance, you can do before your next birthday. Finally, if you ever had a type of surgery to be performed in order that you might be a major medical problem in a position to negotiate a shorter life depending on how long you held the operation to treat treat medical condition.

Finding affordable term life insurance should not be a stressful situation. Especially if you have the time to be done with the many ways to effectively reduce the cost of insurance. One thing is certain, it is definitely worth your time, and your pocket to a comparison shopping online to find the best and cheapest term life insurance provider.

Timothy Gorman is a successful Webmaster and publisher of It offers more life insurance counseling to find ways affordable term life insurance [] you can search include your pajamas on his website.

Tuesday, 20 March 2012

Life Insurance: The Foundation

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In order to achieve your financial destiny requires financial planning. A financial plan must take into account its good and bad times during a person's life . Buying life insurance accounts for potential bad times during a person's life and that is the main reason for buying ' s life . Yes, I said three malicious words " purchase life insurance . ' Life insurance is the foundation of any sound financial management plan.

Basics of Life Insurance

For many people life insurance is when something is going to buy the "one day" seen . Most people know that they have to life insurance , but never take the time to do basic research .First, the life cover is a replacement income in the event of a spouse or parent dies prematurely be . If you and your spouse to produce income , then it must be protected. Today, most families income of both spouses must , no matter how much they deserve to live their lifestyle needs.Life insurance coverage is at stake when a spouse dies prematurely , and the result is always needed for the family. Most financial experts recommend that a person should have 5 to 10 times your annual salary. This is not a hard and fast rule , but this number will give you a starting point for the amount of coverage .Life insurance is not meant to be your retirement plan or college funds for their children. If you sold your financial advisor you have a policy in order to meet these needs should get a second opinion .

Types of Life Insurance

For a couple , if you look at the political life of three types of life insurance, group insurance , insurance value of cash and long-term care .

Term Insurance Group

Group insurance is the easiest to explain . Group long-term insurance life insurance joint offer by the employer to the employee . Life insurance covers only the employees in the labor market. In general, the cover is responding the annual salary of the employee , not the recommended 5-10 times the annual salary for only one or two times. This type of insurance is a good liability insurance and should not be your primary insurance .Group insurance is cheaper because of the amount of coverage is low and there is little the approval process or not

The cash surplus

The second type ' of life goes by several names : life insurance or permanent insurance cash value. With Cash -QA has two different levels of cover . One is the nominal or real your beneficiaries receive coverage . It also has a second amount . The value of cash The cash value increases over time and their beneficiaries receive the face value and the actual value depending on the payment method.All life has once again become popular in the last decade due to the low profitability of the market. However, the life insurance as described above does not intend your retirement account , but income protection . It is much better to save your money for retirement, as Roth IRA.Of the three types of cash value life insurance policies is the most expensive .

Life Insurance

The last type " of life insurance is insurance. As the name suggests, provides coverage for a certain period or term. A time when less than one year to 30 years or more. At the end of his term of office may re-evaluate your life insurance needs see how . during this phase of his lifeA common long-term many families to buy in 20 or 30 years. A period of 20 years would be years , but be sure about his responsibility to the tip , the next 30 years should be sufficient.One tip that you should be aware of long term care insurance is your choice at the end of the term. Do you find the same policy guaranteed renewable policy with no medical questions. The reason is that you never know what our health can be on the road like 20 or 30 years , have a guaranteed renewable policy is critical to your financial plan.Many cheaper term policies must be new - qualify for life insurance at the end of the term. This means that you have to answer medical questions that have to maintain the supply .Term life insurance costs more than the insurance group , but is generally 2-3 times cheaper than cash value insurance . But do not just look at the cost as the only factor. You have the recommended 5-10 your annual salary at a number of suitably protect your family arrive . Find the amount of coverage that you and your spouse need and price.

What the experts say

I have never enjoyed listening only financial advisors and insurance agents. I like to see what others have to say about these topics. If the question is more productive life insurance company or third persons recommend term life insurance . Read financial magazines like Smart Money and Money magazine and books by Dave Ramsey or Suze Orman or newspapers like the Wall Street Journal and USA Today, for a second or third opinion .The sources said , at one time or another , that long-term care , a better way to protect your family.Foundation Life insurance is a financial plan and a family depends the profit for the financial year plan into reality. Then remove the income of the plan falls apart. Life insurance can protect the financial plan, if one spouse goes ahead .We build our financial future.For more information, please visit financial independence.

Wednesday, 14 March 2012

The Four Chief Types of Life Insurance

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Life insurance, in its essence, is a way to protect the financial security of its own survivors. It is seen as a way to provide general, income replacement for survivors of an employee in case of death. In life insurance is purchased by an insurance company to pay regular premiums on the life of the insured. In case of death of the insured, the named beneficiary will receive an economic advantage.

Although all life insurance policies maintain those consistent characteristics, there are different paths to the same destination. Four types of life insurance policies have been developed and are in common use.

Life Insurance

Life insurance is probably the simplest form of life insurance. Term life insurance is purchased for a specific period of time (duration). The term can be very different. There are term policies that are effective for more than twenty years, while some only for a period of one year. A regular premium is paid for a lifetime. If the insured dies at any time during the designated beneficiary receives the death benefit. If you survive the term, but no compensation policy and simply ends.

Whole Life Insurance

Life insurance has a long history and remains very popular. The cost of the premiums, as long as the policy guarantees in place. Are collected as premiums, the insured accumulates a policy of money the insurer to determine the present value of the interest rate. It can be "removed" to keep his whole life policy, or so survivors' benefits in the event of death of the insured will be paid. Insurance companies have long life "norm" in the insurance industry.
Universal Life Insurance

Universal life insurance is considered to be a flexible approach to life insurance. The amount of the periodic premium is required, as long as the policy a cash value over the cost of the policy vary. The insured can change the future payment of the policy, while the policy remains in force, making it safe for those who may be more complex or rapidly changing needs and respond with flexible solutions to all of life temporarily.

Universal life insurance Variable Capital

Universal life insurance variable capital flexibility of universal life insurance, and adds that offers investment options. Surrender value of the policy is not determined simply on an interest rate by the insurer. Instead, the value of the policy is calculated on the performance of individual plants. The insured assigned his rights from a range of investment options with a variable universal life insurance.

Despite all the assurances common features four different types of insurance have some notable differences. Each type of insurance has its advantages and disadvantages. For some, a simple political expression more than enough to meet your needs for life insurance. Others may benefit from comprehensive insurance that includes an investment component and the ability to change the nature of performance and quality.

Evan C. Davis works in Medicare customer service and is the webmaster and owner of Instant Health Insurance. Find health insurance online quote

Tuesday, 13 March 2012

Life Insurance Troubleshooting: Your Policy Problems Answered

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While many of us understand the basic functions of life insurance, it is not uncommon for problems that arise long after he bought the policy.

To resolve the political problems we are four of us frequently asked questions to help you gain the understanding and control of your life insurance life insurance policy.

Answers to questions

How can I apply for life insurance?

To start the claims, you get a few copies of the death certificate of the insured. If you have problems, have copies of the death certificate from the hospital or the coroner's office, the undertaker should be able to obtain a copy.

Then you need to contact your life insurance agent. Your agent will help you fill out the necessary paperwork to make the request. If you are not sure who was the agent of the insured, you can contact the insurance company directly and someone will help you submit the claim. Do not forget to bring a copy of the death certificate of his agent, because you will need to ensure fast claim submission.

How do I receive the death benefit?

Once the life insurance application is submitted, you must decide how to provide the life insurance agent.

According to the Institute of Insurance Economics of Information (III), in general, there are four ways to distribute the death benefit:

    Lump Sum. You get all of the death benefit in a lump sum.

    Give a special interest. The insurance company pays the principal and interest on a fixed schedule.

    Join life. You will receive a guaranteed income for life. However, the amount you receive depends on your benefit amount, gender and age of the insured at the time of death.

    Interest income. The insurance company has the product, but you pay interest on the policy. Therefore, the death benefit remains intact and goes to a second receiver after his death.

Whichever option you choose, you should get some benefits policy after days of filing the complaint. Insurance companies are required by law to pay claims in this way. For more information on the guidelines, under which the insurer must pay a claim, contact Division of Insurance in your state.

What should I do if I can not find the policy?

Unfortunately, there is no database of life insurance policies purchased. That is why it is very important to know that the life insurance of the insured at any time. However, there are some things that you try to find a lost policy.

You can by trying to start the following set:

    Which company would have issued the policy
    What police officer would have issued
    If the insured person had life insurance through a group of employers, trade unions or other

The I.I.I. you should try this information about you:

    To search records, storage space and a safe. Here you will find documents relating to insurance, checks, receipts for payment of premiums or policy announcements.

    Contact the legal and financial advisors of the insured. Current and former consultants have some information on the life of the deceased.

    Contact the employer of the insured person (s). Former employers and / or current can tell you if the policyholder is a life insurance group.

    Review of tax returns. During the review of previous tax returns, interest income or you can pay a life insurance company.

    Checking the mail. Although the policy is enabled, the insurance company will send an annual bonus or a notice of dividends in respect of the policy.

    Check north of the border. If there is a possibility that the policy was purchased in Canada, please contact the Canadian Health Insurance Company at (800) 268-8009 or visit their website.

    Querying the MIB. While there is no database to purchasers of life insurance, there is a database for life insurance applicants. For $ 75, you can use the MIB, and rarely worth (MIB is about one-fifth of the action is), it may be worth a try.

If this does not result in not finding a lost policy, contact your agent, a lawyer or a financial advisor because they may be time sensitive.

What if I can not pay my life insurance premiums?

Economic difficulties can fall any. If this happens and you can not pay the premium for your life insurance, you should know what to expect.

In general, if you have a life insurance policy, do not pay your premiums in the lead expiration policy, which means that the policy canceled and you will probably not see a product of politics.

If you have a permanent life insurance policy, says the III have one of the following options:

    Treasury policy. If you pay, you stop paying the premiums and collect any amount of money available. However, if the sum of the cash surrender value is more than what you paid the premiums, this money can be raised.

    Indeed. "Reduced paid" an option available to you so that you. Longer pay full premiums lower death benefit and no cash savings You may also be able to convert a permanent policy extended run time.

    Policy expired. If you want to choose your policy lapse rates of the police, you should be able to get his recovery. Some insurance companies you can do if you do within five years after its expiration. However, recovery can undergo on its ability to undergo a medical examination and pay the overdue premiums back plus interest from.

If you fall from grace, do not forget to contact immediately to achieve with your life insurance agent to reach an agreement. Depending on the situation, it is usually best not to let a completely permanent policy expires, you can use the cheap that if you had bought the life insurance lose.

Do not let your unanswered questions!

If you have questions about your life insurance, it is always a good idea to talk with an insurance agent. To get there is a new update and state-specific information, your life insurance if you do not have surprises on the way!

About InsureMe

Megan L. Mahan is a writer and insurance information expert with InsureMe in Englewood, Colorado. InsureMe links agents nationwide with consumers shopping for insurance. Specializing in auto, home, health, long term care and life insurance quotes, InsureMe network provides thousands of agents with insurance leads every year. For more information, please visit

Wednesday, 18 January 2012

Life Insurance - Learn From an Old Agent

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Life Insurance is an insurance that pays for the death of the insured. It should really be called "death insurance", but people do not like that name. But he said the death of an individual. Actually, what is covered, what is the economic loss resulting from the death of the insured.

These economic losses have many different ways, such as:

- The proceeds of each "head of family" in family
- The loss of the services of the family of a housewife, mother
- A final cost of the death of a child
- The final cost of a person after an illness and medical treatment
- Envelope "Keyman", which means that the owner or employee of a company worth against the financial losses the company would suffer the death ensured
Estate Planning insurance pay when a person is insured in case of death of inheritance tax -
Is purchased "purchases and sales agreement" in the life insurance to fund a commercial operation in the premature death of the parties to the transaction -
- Accidental death in which a person buys a policy that pays in the event of death due to accident
- Mortgage life when the borrower a policy that pays the mortgage on the death insurance purchases - and much more.

Life insurance has been around for hundreds of years, and in some cases a better quality product. The insurance companies have actuarial tables to develop the study of statistical models of human mortality in the time ... Usually a life span of 100 years. These tables are surprisingly accurate and allow insurance companies to accurately predict the number of people of all ages die every year. From these tables and other data obtained insurance companies, the cost of insurance.

The costs are usually brought as an annual cost per thousand of coverage expression. For example, if you want to buy $ 10,000 coverage and cost per mile was $ 10.00, the annual premium would be $ 100.00.

Modern medicine and nutrition has increased the life expectancy of most people. Increased life expectancy has led to a sharp decline in life insurance premiums. In many cases, the cost of insurance are just a few cents per mile.

There is really only one type of life insurance that is a temporary insurance. This means that a person is assured for a certain period of time or a period. The rest of the products life insurance long term care insurance as the main ingredient. Any additional components which may be used. However, insurance companies have many, many other lifestyle products invented to conceal the reasons for life insurance tend. Also greatly enrich the insurance companies.

Term life insurance

Life insurance is a basic annual renewable policy. Each year the premium is slightly higher than the person ages. Insurance companies have developed a level premium policy, which stopped the annual premium increases for policyholders. Insurer essentially add up all the raw 0-100 years and then divided by 100th This means that in the early years of the policy, the insured person pays more money to finance the cost of pure insurance, and in the years after the premium is less than the cost of pure insurance.

Product level term itself can be designed for the conditions of length 5, 10, 20, 25 or 30 year term. The process of the average premium is equal.

But this new product has caused some problems. Insurers know that the vast majority of members do not have a policy for life. Therefore, the holders of long-term measures in the future and then terminate pay their policy premiums. The insurance companies were happy because they have kept the money. But over time, the concept of surrender value developed.
The cash surplus

Insurance with a cash value portion of the premium will not be credited to an account associated with your policy. The money is not yours ... This is the exclusive property of the insurance company. If you cancel your contract and request a refund, we will return the money to you. Otherwise, you have more options:

1 Use the value of money, buy more insurance
Two. Use the value of money to pay premiums on existing
Three. You can borrow money at interest
April. When you die, the insurance company keeps the cash value and pay only the face value of the insurance policy.

So make the cash value of the product make sense? My answer is "NO!"

Surrender value of life insurance, there are many other names, such as:

- Whole Life
- Universal Life
- Variable life
- Interest-sensitive life
- Life is not involved (excluding dividends)
- Participating Life (dividends)

Many insurance agents and companies trying to sell their products as an investment product. But the expression value for money is not an investment. Investment dollars and insurance premiums should not be combined in a single product. And more investment dollars should be invested in an insurance company. They are the intermediaries. You take your investment and invest and keep the difference.

Think about the methods being used by agents to sell life insurance, and compare them with any insurance any other kind What you see is what life insurance sales tactics and techniques are ridiculous compared to other insurance companies.

Would you consider buying a car insurance or insurance or insurance in which you have paid additional premium support from the insurance company, or you have to meet them? But curiously, have a life insurance agent was a great success, to convince intelligent people that the cash value of life insurance is to buy a good product.

Care to guess why insurance agent sells insurance cash value and aggressively prevents temporary insurance?

Insurance companies have become immensely rich insurance cash value. Thus, in order to promote sales, they pay huge commissions. Of long-term insurance costs can vary from 10% to 50%, sometimes even 100%. However, cash value insurance commissions of up to 100% of the premium for the first year and renewal commissions can be beautiful for years after.
But not only the commission that counts. Rewards also come into play term life insurance is much cheaper than cash value insurance.

Here is an example of a 30 year old man, Non smoking, buying $ 100,000 coverage:

Term life insurance is $ 0.50 per mile for a premium of 50.00 USD. A 100% commission, the commission would be $ 50.00.

Actuarial present value is $ 12.50 per thousand for a price of $ 1,250.00. A 100% commission, the commission would be $ 1,250.00.

So you see, it would be for an agent to place their own future financial well-being of its customers easy. It is 25 long-term policy for the same board to sell, that only a policy of monetary value.

But in my opinion, that the officer had violated his duty of loyalty to the client, it is the duty of placing the client's needs above you. The agent will also put aside their conscience.

My opinion is that life insurance agents to work from any of three positions:

1 Ignorance - they do not know how insurance cash value.
Two. Greed - know exactly how the cash value of the insurance and sell anyway.
Three. Knowledge and work - that care to sell.

What do you want to do the business agent?

How do I know? Because I was selling life insurance cash value at the beginning of my career.

When I started as an insurance agent in 1973, I knew absolutely nothing about how life works. The insurance company told me discourage sell life insurance and long term care insurance to customers. But after a while of reading and research, I learned that the insurance cash value is a bad thing. I started selling long-term care only. I refused to let go of my conscience. I went back to some customers and changed their original cash value of the policy over time.

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.


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