Life Insurance - Learn From an Old Agent

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?
 

Commissions.

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.

Read More

Term Life Insurance - Save Money the Smart Way

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.

Read More

What Type of Life Insurance Policy Should You Get

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.

Insurance

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.

Read More