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

Tuesday, 13 March 2012

Life Insurance Troubleshooting: Your Policy Problems Answered

Be The First To Comment
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

Thursday, 29 December 2011

Advantages of a Whole Life Insurance Policy

1 Comment
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. 

Thursday, 22 December 2011

What Type of Life Insurance Policy Should You Get

Be The First To Comment
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.


© 2011 Life Insurance - Designed by Rashid Khan