The Best Way To Find The Most Affordable Life Insurance To Fit Your Needs
Life insurance provides financial protection for beneficiaries in the event of the insured’s death. Life insurance benefits can serve as a replacement of lost income to your family or to pay bills and final expenses. The best way to find the most affordable insurance is by understanding what types of insurance are available and what they provide for you.
Life insurance may be divided into two basic classes – Term and Permanent. Term life insurance provides life insurance coverage for a specified term of years for a specified premium. The policy does not accumulate cash value. Term is generally considered “pure” insurance, where the premium buys protection in the event of death and nothing else. There are less expensive premiums for younger people, but rates go up with age.
Permanent life insurance is life insurance that remains in force until the policy matures, unless the owner fails to pay the premium when due. The policy cannot be cancelled by the insurer for any reason except fraud in the application, and that cancellation must occur within a period of time defined by law (usually two years). Permanent insurance builds a cash value that reduces the amount at risk to the insurance company and thus the insurance expense over time.
The three basic types of permanent insurance are whole life, universal life, and endowment.
Whole life insurance provides for a level premium, and a cash value table included in the policy guaranteed by the company. The primary advantages of whole life are guaranteed death benefits, guaranteed cash values, fixed and known annual premiums, and mortality and expense charges will not reduce the cash value shown in the policy.
The primary disadvantages of whole life are premium inflexibility, and the internal rate of return in the policy may not be competitive with other savings alternatives. Riders are available that can allow one to increase the death benefit by paying additional premium. The death benefit can also be increased through the use of policy dividends.
Premiums are much higher than term insurance in the short-term, but cumulative premiums are roughly equivalent if policies are kept in force until average life expectancy. Cash value can be accessed at any time through policy “loans”. Since these loans decrease the death benefit if not paid back, payback is optional. Cash values are not paid to the beneficiary upon the death of the insured; the beneficiary receives the death benefit only.
Universal life insurance is a relatively new insurance product intended to provide permanent insurance coverage with greater flexibility in premium payment and the potential for a higher internal rate of return. A universal life policy includes a cash account. Premiums increase the cash account. Interest is paid within the policy (credited) on the account at a rate specified by the company. This rate has a guaranteed minimum but usually is higher than that minimum. Mortality charges and administrative costs are charged against (reduce) the cash account. The surrender value of the policy is the amount remaining in the cash account less applicable surrender charges, if any.
A universal life policy addresses the perceived disadvantages of whole life. Premiums are flexible. The internal rate of return is usually higher because it moves with the financial markets. Mortality costs and administrative charges are known. And cash value may be considered more easily attainable because the owner can discontinue premiums if the cash value allows it. And universal life has a more flexible death benefit because the owner can select one of two death benefit options. Option A pays the face amount at death and Option B pays the face amount plus the cash value.
But universal life has its own disadvantages, which stem primarily from its flexibility. The policy lacks the fundamental guarantee that the policy will be in force unless sufficient premiums have been paid and cash values are not guaranteed.
Endowments are policies, which mature before the normal endowment age. Endowments are considerably more expensive (in terms of annual premiums) than either whole life or universal life because the premium paying period is shortened and the endowment date is earlier. Annuities are a financial product issued by life insurance companies but are not life insurance policies.
Your insurance needs will change throughout your lifetime and your particular situation.
· Singles: Insurance needs primarily concern final expenses.
· Young parents: Insurance needs focus on family protection, income replacement and final expenses.
· Latter-stage parents: Insurance needs center on preservation of family income and lifestyle, final expenses, as well as funding for college expenses.
· Golden years: Financial and insurance needs focus on income/lifestyle protection for the surviving spouse, preservation of assets, estate distribution and final expenses.
Remember, if your life insurance policy is not doing what you need it to, you are not saving any money. Talk to a financial advisor, do your research and you will find the type of insurance that provides the benefits you need at the lowest cost.
Chris Simons is a freelance writer. You are welcomed to visit life-insurance.cyberinformer.com life-insurance.cyberinformer.com, for more information on
Life Insurance - Tackling The Top Reasons Why We Put Off Buying It
OK, thinking about your own mortality is not a topic anyone enjoys, but our own death is one of the few certainties in life. So why do 35% of Canadians not insure their own life to make sure their family or loved ones are financially protected? While the number of reasons likely match the number of people not insured, the following are the most commonly heard.
Reason #1 – I don’t have a need for life insurance:
Let’s be honest, this reason is by far the most common and for most people untrue. Unless you are an individual who does not have children, has money on hand to cover all debts and funeral expenses, and does not feel the need to offset the loss of their income to a spouse, leave any additional money to family, or to a charity, then it may be true, you don’t need life insurance. But few people have the funds readily available to fulfill all their wishes or meet their obligations after their death.
At the very minimum, if you have anyone who relies on your income for their day-to-day needs like a spouse or children, or if you have debts like a mortgage, then you likely need life insurance.
Reason #2 – Life insurance is too expensive:
If in the past people have found life insurance to be too expensive it could be because of the type of coverage they were seeking, like whole or universal life insurance. Term life insurance is the most affordable of all the products and is very popular because of it.
Term 10 Life insurance, the most popular Term product in Canada, offers a premium guaranteed not to change for 10 years.
A male non-smoker seeking $100,000 in coverage could be paying as little as*:
1 $125 for a 30 year-old
2 $129 for a 35 year-old
3 $157 for a 40 year-old
4 $207 for a 45 year-old
5 $281 for a 50 year-old
A female non-smoker seeking $100,000 in coverage could be paying as little as*:
6 $106 for a 30 year-old
7 $112 for a 35 year-old
8 $133 for a 40 year-old
9 $163 for a 45 year-old
10 $219 for a 50 year-old
As you can see, for very little money a year, you can get $100,000 in life insurance coverage.
* Lowest quote online from October 2005 for a Term 10 policy, one of the most popular life insurance products in Canada. Premiums shown are the rates if paid annually.
Reason #3 – I don’t know anything about life insurance and don’t know where to start:
A number of free online tools have been developed to help you decide which term life insurance product is best for your specific situation and how much life insurance coverage you should get.
1 Term Life Insurance Analyzers. By answering a few simple questions, these tools will assess your needs and let you know what product is most commonly recommended for people with similar lifestyles.
2 Term Life Insurance Calculators. These tools will help you put a dollar value on the amount of coverage you need in order to ensure that your family, loved ones and your debts are covered in the event of your death.
Reason #4 – Life insurance is a hassle to get:
Thanks to the Internet, getting term life insurance quotes is now fast and easy. If you want to shop around first, getting quotes online means you can avoid hard-sell tactics by someone sitting across from you. There is no sales pressure or obligation to buy when you get quotes online. It’s easy, can be done any time at your convenience and is simply a better way to shop for life insurance because of it.
For more information on life insurance, term life insurance analyzers and calculators, or to quotes, kanetix.ca’s kanetix.ca/term-life-insurance/ life insurance service provides instant online quotes from some of Canada’s most recognized and trusted life insurance companies.
Group Health Insurance Coverage
Health is wealth, as they say, and this is particularly true if you are trying to support your family. The good news is that most employers now offer health insurance plans for their employees as part of a compounded benefits package upon signing of contract. But how do health insurance policies, particularly group policies, work? How do they benefit you?
How do health insurance policies work?
Generally, health insurance policies are there to take care of all your medical needs and emergencies without having to pay for them right away in cash. In most cases, you pay a premium, or a monthly fee, to a health insurance agency and in the event of hospitalization, they will pay for the rest of your hospital bill after you have paid a portion of it. This initial payment that you make is called a deductible and it would depend on the plan that is given to you. For example, if your plan stipulates that you must pay, say, $30 a month but your deductible is only for the first two days of hospitalization, that means the insurance company will cover the remainder of the bill after you have paid for your first two days in the hospital. Usually, the higher the premium, the greater the deductible.
What about group health insurance? Is there anything in particular that I need to know about it?
In the case of group insurance plans, these are offered as a package from the insurance company to all the members of a particular group, or the head of that group. The advantage of this is that people who would normally be denied individual health insurance can be covered by group health insurance. One of the first things insurance companies do is to have you go through a complete physical checkup to determine health risks. If they find that you are a high-risk candidate, they may choose to deny you a policy. However, as regards to group health insurance, as long as you are a member of that group (or corporation, in the example of an employer), you automatically get coverage.
Other important details to consider are whether or not your health insurance policy covers your family as well. Other considerations are whether dental and eye checkups and services are included, and whether the policy has a subsidy for prescription medication. All these factors affect the price of your premium which in turn affects your deductible. In the case of group insurance, the employer is usually the one responsible for paying the premiums on all the people his of her policy covers.
While group insurance does have its advantages, it has its drawbacks as well. The group insurance is generally not as flexible as the individual insurance so it can not be customized to cater to the specific health needs of one of its members. Also, there are restrictions on subscription dates. Most employers require their employees to apply for the group policy within thirty days of starting work. After this period, the employee may be made to submit to a physical done by the insurance company which in turn may cause him or her to be denied insurance altogether.
e-healthinsurancecoverage.com Health Insurance Coverage provides detailed information on Health Insurance Coverage, Individual Health Insurance Coverage, Travel Health Insurance Coverage, Maternity Health Insurance Coverage and more. Health Insurance Coverage is affiliated with e-HealthCareInsuranceQuotes.com Personal Health Care Insurance Quotes.
What Are Life Insurance Beneficiaries?
Life Insurance Beneficiaries are going to be the people who receive the benefits. Many people do not realize that the selection of beneficiaries is a very critical part of the Life Insurance process.
Life Insurance Beneficiaries are the entities that are designated in your life insurance policy to receive the payment of the death benefit in the event of your death. In some ways, this is one of the most important decisions that you make when selecting and setting up your Life Insurance. The first rule to remember is to never make your “estate” the beneficiary. If you do this, then you are consigning your death benefit to probate court and opening it up to your creditors. Remember that the whole purpose of the Life Insurance death benefit is the financial protection of your dependents.
It will pay to be very specific in the designation of your beneficiary. Failure to be specific can lead to all kinds of pitfalls. The use of general terms like your “spouse”, or “children” are not recommended. Changing life situations can make these terms mean something different at the time of your death then they meant when you declared them to be beneficiaries. It is always better to use actual names.
It is also possible to select backup beneficiaries. These are called contingent or secondary beneficiaries. They would become the main beneficiaries in the event that the primary beneficiary predeceases the policy owner. Some people will take this idea three levels deep and select a third beneficiary. Since the purpose of the Life Insurance is to protect dependents, make sure that the beneficiary is either those dependents or someone you are sure is going to act in accordance with your desires and in the dependents best interest.
If the beneficiaries are minor children, it is possible to designate a guardian for them and a trustee to manage the funds until they are of age. Many people consult with the lawyer who prepared their will or assisted in the setting up of trusts to prepare the wording of the beneficiary designation.
A Life Insurance policy is often a long term proposition. During your lifetime your choice of beneficiary may change. It is not difficult to change your beneficiary, but too often people simply neglect to do it. It is wise to review this situation every couple of years and make certain that your beneficiary information is current and in accordance with your wishes.
Read more free ufcamerica.com/life-insurance-information life insurance information at UFCAmerica.com.
Medical Insurance - A Healthy Way to Face Sickness
We all have often heard and quoted the adage ‘health is wealth’. But, what exactly is the essence behind this popular and commonly used saying? Its essence can be best explained by a person who has all the money in the world, but at the same time is afflicted with an incurable disease. All his wealth cannot give him the satisfaction or the contentment that comes from living life to the fullest and in the bets of health. In today’s fast paced modern lifestyle, we often ignore God’s most precious gift to us, our health. With medical facilities advancing, but the cost of availing them hitting the roof, a medical insurance policy is the best way to deal with medical exigencies.
The main requirement in order to avail the best medical facilities and attention, apart from well equipped hospitals and good doctors is finance. Sometimes due to a sudden health problem or complication developed by a person, or even an unfortunate accident or mishap may require immediate medical attention, a surgery or even a prolonged treatment. In all these cases immediate arrangement of finances is extremely necessary to ensure and facilitate medical aid. A medical insurance policy makes sure that the necessary financial help is available to the insured in times of need.
Most medical insurance policies cover small and minor ailments, while there are a few that do touch upon critical illnesses. The policy covers all the expenses incurred staying in a hospital room and all other expenses of medication as well as the doctor’s personal visitation and consultation fees. The best part is that medical insurance can even be used by the insured to bail out his family members and other relatives out of health issues as well. These days insurance companies also provide travel medical insurance to cover any medical problems that may occur while travelling.
People are becoming increasingly aware of their health issues and wish to avail the best facilities available in medical care. The assistance rendered by a medical insurance policy has been proven, hence this is the reason that more and more people are availing the policies that cover medical needs and expenses.
The author is associated with UK’s leading healthcare and medical insurance broker, Essential Health Ltd, which provides medical benefits, to its clients in UK and around the world, for Cancer, essentialhealthltd.co.uk/personal-plans/medical-insurance/ Medical insurance, Sickness insurance, Accident insurance, Life, Term Assurance, Income protection insurance, Healthcare, Health insurance and even dental insurance. She writes on various topics and latest news related to medical, insurance and most importantly on Cancer and latest developments related to its treatment.
Tips for Selling Life Insurance: Q&A Tactics
The insurance agent shakes hands with the potential client, sits down, smiles and says, “I have a product here that I believe to be the best life insurance package I have ever seen. In all of my years in the insurance business, I have never been so impressed with a product. I’d like to tell you all about it.”
The salesman knows the ins and outs of his offering and no one who listened in on his sales pitch could doubt his love and support of the insurance product for even a split-second. What happens when he concludes his impassioned pitch? More often than not, nothing happens. No policy is written. No sale is made.
In the office across the street, an agent meets with potential client. After pleasantries are explained, he asks “So, what do you want from all of this? What are the things you’d like life insurance to accomplish for you? He listens attentively to the prospect’s answers, asking follow-up questions for clarification and to elicit more information to help him understand the prospect’s needs and wants.
As the conversation progresses, the agent gets to know his potential client better. He is able to establish a rapport with the person and can determine what might be appealing. The agent, who has been noting fact after fact during the interview, is able to then explain exactly what can be done to best meet the needs of the prospect. Yes, he pitches his life insurance product, but he does so based upon the expressed interests and concerns of the potential client. What happens when he finishes? More often than not, a new policy is written. A sale is made and agent will find himself with yet another commission.
These two examples reveal the power of using a “question and answer” (Q&A) approach to selling life insurance. Those who sell life insurance using methods rich in listening and questioning invariably outperform agents whose focus in on their own opinions and expertise. In addition to helping to establish great agent-client rapport, Q&A tactics are a powerful strategy for selling life insurance for two reasons.
Initially, it keeps the focus on the one thing that must always be front and center in any sales situation: the buyer. Instead of creating a product focus, the Q&A methods allow those selling life insurance to keep the meeting’s attention directed to the buyer. People, by nature, consider themselves and their interests of paramount importance. This method allows the insurance agent to make sure the meeting unfolds in a manner that will interest and motivate a potential buyer.
Secondly, the technique provides the seller with a great deal of valuable information. Those selling life insurance with Q&A techniques find themselves armed with client-specific responses to frequent purchase objections. They are also able to better explain the policy and its advantages in ways that are meaningful to the prospective client. An insurance agent can also make sure they are offering a product that truly meets the unique needs of the prospect.
Even the most well delivered product-centered sales pitch can fall on deaf ears. Prospects long to be at the forefront and are far more likely to be motivated to purchase life insurance if the agent focuses attention on their specific needs. Methods that make use of significant Q&A to sell life insurance put clients on center stage and motivate them to purchase policies.
Evan C. Davis works in Medicare customer service and is the webmaster and owner of Easy Insurance Finder. Find out about easy-insurance-finder.com/ cheap term life quotes online and easy-insurance-finder.com/ low cost term life premiums at easy-insurance-finder.com easy-insurance-finder.com
You Don’t Know And Car Insurance Companies Aren’t Telling
I almost crapped my pants when I found out that I was paying more in car insurance simply because of my occupation. Before you get all up in the air you may be in the lucky group of people that pay less for car insurance. When I first discovered this information I was flabbergasted to say the least.
I researched my information by reviewing the results of the Comparison Market’s 2006 Occupation Report. This report stated that your occupation can greatly impact your car insurance premium. Hold on to your seats because I haven’t even began to scratch the surface.
The Comparison Market also stated as an example that scientists, pilots, actors and a host of others pay the lowest insurance rates at an average of $935.76 per year. On the flip side of the coin we have job occupations such as attorneys, lawyers, judges, executives and business owners pay the highest insurance rates at an average of $1,383.63 per year.
That news made no since to me what-so-ever, but I had to get to the bottom of this. Mr. Roush, CEO of Comparison Market stated that attorneys, lawyers, judges etc… have extremely stressful jobs, which require them to spend more time in their cars and talk more frequently on their cell phones than the average driver.
Ok now we are getting somewhere. It’s all starting to make a little since to me. Now for the other group that I spoke of earlier, i.e. the scientist, pilots, actors and so forth. Their occupations are viewed as being very meticulous and detailed-oriented, which the powers that be feel lead to good driving habits.
For those of you in the know you already realize that receiving discounts on auto insurance is not a new concept. For years major insurance companies have been giving discounts to members of affinity groups, i.e. AARP, AAA, alumni groups and other associations.
Below I have listed the top 10 occupation that pay the least amount in premiums. Unfortunately I do not fall in this top 10 list.
1. Scientist
2. Retired individuals
3. Unemployed (I guess because they cannot afford gas… Just kidding)
4. Pilots and or Navigators
5. Disabled
6. Actor, Performers, and other types of Artist
7. Librarian/Historian
8. Farmer
9. Student
10. Public Official
Here is another little piece of irony for you. Number twelve on the lowest car insurance premium list was a bartender. That totally blew me away.
For more insider trade secrets, or to get your free car insurance quote, check out a1carinfo.com
Tim Beachum is an author, speaker, success coach, actor, independent film producer, movie editor, and a successful Internet Marketer.
Don’t Ignore This Otherwise You Will Lose Everything
Each and every type of business whether big or small needs insurance protection. Insurance is of equal importance for all business activities, assets and individuals working in it. Insurance capacity of a business firm depends upon its nature and size. There are number of risks all around us and we don’t know their time, date of their happening. So, to cover such events, insurance is needed.
Purchasing business insurance is very important task and such decisions are to be formulated properly. The business insurance should be of such type, which covers each and everything of your business. If the business needs were not properly investigated before taking or applying for business insurance, it would result into wastage of money or death of your company.
There different types of insurance policies available for your business include: Property insurance means protection of your assets or business properties from theft, natural calamities or physical damages. General liability insurance protects business proprietors and its operators from various liability coverages. Workers’ compensation insurance protects a business to wrap different job-related damages or sicknesses. Auto insurance is designed to insure business vehicles. The other type of business insurance includes health insurance, key person life insurance, business interruption insurance, excess liability coverage, employment practices liability coverage and travel insurance.
There are numerous providers of business insurance so, it becomes important to select best insurance company providing all insurance services under one roof and on cheap rates. A business firm has to pay insurance premium, which is based on the degree of risks involved. Firstly the insurance company appraises the situation and then decides the premium rates.
Author presents a website on mybusinessinsurance.info/ business insurance. This website provides information about meaning of business insurance, types of business insurance and its importance. You can visit his site for more gminsuranceguide.com/ insurance guide
How to Find the Best Rates on Life Insurance in Washington
When you’re in the market for life insurance in Washington never lose sight of one thing. You are completely control of what you need and what you buy. In Washington, life insurance companies have to provide you with a policy summary and a buyer’s guide before they give you a life insurance policy. Knowing this will help you when it comes time to make a decision about which company is going to serve your needs the best.
There are several approaches to finding the best rates on life insurance and they all rely heavily on one premise. The insured has to know what they need. Contacting a life insurance agent and simply stating that you need insurance, is likely going to result in you purchasing a policy that is beyond what you realistically need. Instead enter the arena of life insurance prepared.
You’ll need to provide some basic information before you can even obtain a quote. Even though you may be tempted to alter information to get a better quoted rate, don’t. Be as truthful as you can, including sharing your age, your weight, whether you are a smoker, and your health history. You may feel uncomfortable answering these types of questions, but insurance companies need this information so they can weigh the risk that goes along with insuring you. Being honest and forthright is the best approach to finding a rate that will be as accurate as possible.
Although you may think it’s prudent to wait until a serious health concern arises before you search for life insurance coverage, this isn’t wise. Your rates can rise dramatically with a diagnosis of something as simple as high blood pressure to something more serious, such as cancer. Getting coverage while you are still in great health is the best approach to finding the lowest possible rates.
My recommended sites here:
ezquoteguide.com Best Rates on Life Insurance in Washington
myquoteguide.com/Term-Pros.shtml Instant Term Life Insurance Quotes Online
Introduction to Annuities
Insured investments are an important part of any financial plan. An annuity is one such aspect.
An annuity is a legal contract whereby one party pays in a lump sum of money to another and receives regular payments in return over an extended period of time. There are several various types of annuities, but the basic idea remains the same. Annuities are a deferred investment contract. They are a financial instrument that is sold by the same companies that sell life insurance policies.
In some ways, the annuity is like a life insurance policy in that the risks and uncertainties are transferred from the insured to the insurer. The insurer reduces his own risks by pooling a large number of annuities. One of the common examples of an annuity is the deferred payments after winning a lottery. The lottery winnings can be paid out in a lump sum or spread over a number of years with equal guaranteed payments. The equal payments are in the form of an annuity.
Another use of annuities is after the roll over or distribution of a retirement plan. The lump sum can be used to purchase an annuity that continues to pay a set amount of money on a monthly or yearly basis for the remainder of the owner’s lifetime. In some cases, the payouts can continue after death to a designated beneficiary.
An annuity can also be used as an investment tool for retirement planning. The Internal Revenue Service limits the amount of money that can be put into tax deferred retirement plans like a Roth IRA. If a person has extra cash or income and is seeking a long term investment beyond the limits of his retirement plans, the purchase of an annuity can be a very attractive option. Knowledge of the types of annuities and how they can be used in formulating a successful personal financial plan can be a valuable asset in making long term financial game plans.
The Insurance Company invests the annuity funds in a wide variety of different investments. The idea of “pooled” annuities gives the Companies a large amount of investment capital that can be used to generate a profit and cover the payouts that are due to the owners of the annuity. The payments begin at a specified time called the annuitization date. The owner of the annuity is called the annuitant. Although they are not as well known as Individual Retirement plans, the annuity is one of the most attractive long term investment opportunities available.
Read more ufcamerica.com/annuity-information annuity information at UFCAmerica.com.
