Life Annuities

Universal Life Insurance - 3 Attractive Features

2011-02-11T09:13:00.003-08:00

A Quick Overview:

A Universal life insurance policy is a policy that contains two elements; pure life insurance and a savings element. Each month you pay your premium, the pure insurance portion is paid, then administration costs are taken out, and the rest goes into the policy's savings account.

Here are three features that make a universal life policy an attractive financial vehicle:

Flexibility

Universal life insurance policies were made to be flexible. As you pay your premium, most universal policies build cash value over time. Portions of the cash value can be withdrawn or borrowed if needed. If you aren't able to pay your premium, you can skip a premium and the policy will use the cash value to keep the pure insurance in effect. As long as there is enough cash value in the policy to pay the monthly premium, your policy will stay in force.

In addition to skipping payments, you can also pay more than needed each month, adding to the cash value of the policy. You can withdrawal the cash value at a future date, or use it to pay the pure insurance portion of the policy if times get tough.

Longevity

As long as the life portion of the policy is paid up, the policy will pay a death benefit. Unlike term life insurance, which cancels at the end of the pre-defined term, many universal life insurance policies can last for decades (until death), guaranteeing that a death benefit be paid to your beneficiary no matter when you pass.

Ability to Change the Death Benefit

Universal policies allow you to increase or decrease the death benefit/face amount if your needs change. Of course, if you request to increase the face amount, approval is subject to insurability (the increase has to be approved).

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Cash Value in a Life Insurance Policy Explained

2011-02-11T09:13:00.001-08:00

When shopping for life insurance, there are two basic options: term or permanent life insurance. Term insurance will cover you for a certain amount of time. Permanent life insurance covers you for the duration of your life. One of the key selling points to this type of insurance is the "cash value". Let's look at what cash value is and how we can use it.

Along with your lifelong insurance coverage, a portion of your premiums goes towards a cash value account that grows over time. This account also happens to be tax deferred and earns interest.Your cash value will not grow particularly fast early on but after a several years it will begin to accumulate noticeably faster.

When your cash value grows to a point that is useful, you will have a couple options in how you can use best take advantage of it. First off, once you accumulate enough cash value, you can use it to cover your premium payments. This is called, paying up and is a popular use.

You can also access this cash value by taking out a bank loan against it. The advantage to this method is that these loans will have lower interest rates than a traditional bank loan. You are not even really obligated to pay the loan back. Once you pass on, the loan and any interest accrued will be subtracted from your beneficiaries death benefit so it is wise to repay the loan, or your beneficiaries will suffer.

Some people choose to make a partial or full withdrawal of their cash value. Depending on your policy this may reduce your death benefit. In the case of most universal life insurance policies the death benefit will be reduced on a dollar for dollar basis. If you had a $50 000 death benefit with a $10 000 cash value and you withdraw $5 000, then your death benefit would be $45 000.

When deciding on your life insurance, cash value is just one thing to consider. The cash value can be used in a number of flexible ways, that allow you to tap into your life insurance in times of need. When looking for life insurance, make sure you ask your broker about cash value and how it can benefit you.

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How to Find Cheap Life Insurance Policies

2011-02-11T09:12:00.002-08:00

Accidents are a very valid concern for everyone. They are the situations that arise at the most unexpected times and inconvenience each individual terribly. The damages that are caused by each accident are varied in their extent ranging from very minor incidents to devastating catastrophes. Accidents are not only of the vehicular kind, being caught in a freak rainstorm without an umbrella is also an accident of sorts. Preparing for every situation life is going to throw at you can be very difficult. There are certain situations that can occur that you never even considered would happen to you. But just because life has thrown you a curve ball does not mean you cannot go on living. In fact, life really waits for no one. That is the reason why we get insurances. These are contingency measures that we take to protect ourselves from serious expenses that may befall us.

There are several different types of insurances that you can get - life, home or building, car or auto, contents, etc. All these policies are designed in different ways to help you prepare for the future, just in case something was to happen to your life or your house or your car. Every individual needs to get a life insurance policy. It is to protect your family from having to deal with the financial loss that will be coupled with the emotional loss if you were to die. This is important especially if you are the breadwinner of the family. Your loss can be a major blow that your family will find emotionally very difficult to deal with. Do you really want them to be in financial problems too?

Getting life insurance is not as expensive as people might think. Yes, there are a number of policies that can be very pricey and have very high monthly or annual premiums but there are those that are cheap enough to be affordable for the average Joe. The way to get the cheapest premium on this sort of policy is to take quotes from all the different companies before you make your choice. In fact, if you hire an agent, he or she will make sure that you get the best policy at the cheapest premium. You can even avail certain discounts and offers that the agent may be able to get for you.

If a full policy is too expensive for you then you can even opt for a Term Policy. This is a policy that has a coverage validity for a specific term that can be anywhere between 1 year to 20 years even. These policies are way cheaper than the full type because they have a set expiry period. If anything happens to your life during this period then your family will be able to make a claim. Also, if you live past the expiry date then you will no longer be covered. Each of the policies has a number of different terms and conditions that you can get from the company or from your agent.

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Online Insurance Companies Offers Time-Efficient Solutions

2011-02-11T09:12:00.001-08:00

A successful insurance company used to rely on reputation to attract customers. It built its business on the pillars of reliability, trust, personal service, price, and effective processing of claims - not necessarily in that order.

But that was before the internet changed the way of doing business worldwide. Companies that recognised the need to go online did so to attract a new target audience - the youth, and those forward-thinking individuals who were not intimidated by technology or conducting financial transactions online. Those insurance giants who could not transform that fast are mired in red tape, mounds of paperwork, outdated forms and lengthy decision-making processes.

The insurance company that builds its business online has the advantage of being able to respond quickly to demands for new products, customising solutions to suit a broad range of customers who want quick, effective service at the best price - yesterday!

Buying insurance online is simple. Request a quote for the product that appeals to you, whether it's cover for your life, critical illness, accidental death or work disability. All you need do is type in your answers on an electronic form and submit it. You'll receive a quote in less than 60 seconds, with the assurance of a money-back guarantee if you find the same cover anywhere else for less. What's more, premiums are up to 50 per cent cheaper and you get cash back after 10 years. That money is tax free and you can use it at your discretion.

If you like what you see, the online insurance company makes it possible for you to buy the policy in just a few minutes, without the need for a medical examination.

Article Source: http://EzineArticles.com/?expert=Theoline_Rasebotsa

Life Assurance Essential to One's Financial Well Being

2011-02-11T09:10:00.000-08:00

Also known as life insurance, life assurance amounts to a contract between the insured (the policy holder) and the insurer (the company providing the insurance). Primarily, it is a form of cover that provides for the payment of a sum of money to a specified beneficiary or beneficiaries upon the death of the insurance policy holder. It can also serve as a monetary safeguard when it comes to debilitating illnesses or perhaps a serious accident that renders the insured unable to earn a living.

In other words, life assurance equates to financial protection against death, critical or terminal illnesses and disability, and typically it involves the payment of monthly premiums in exchange for a policy that guarantees such protection. The policy pay-out is usually in the form of a lump sum cash amount but can also be in the form of payments made at regular intervals as agreed to in the contract.

Usually, life insurance is taken out by the bread winner or bread winners in a family who want to ensure that their dependents will be supported financially in the event of their being unable to continue providing such support themselves in the future. In the case of critical or terminal illnesses, or of work disability resulting from an accident, say, life assurance pay-outs are in part at least to cover or help cover the cost of medication, hospitalisation and the various care givers required by the insured. Whereas in the case of insurance structured to provide cover in the event of one's demise, the benefit has to do with 'peace of mind', giving the policy holder the assurance that should he or she pass away the financial consequences of such a death would be relieved in part or entirely by way of the insurance pay-out and the effect on the deceased's family and/or other dependents would be less dire.

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Saving Money on Insurance Policies

2010-02-08T06:16:00.001-08:00

The best way to save on your insurance policy is to know what you want and to some degree what is available and the difference between policies. There are ways for you to save money on these policies and still get the best coverage for you and your family.

Of course when you are finding a policy, your state of health is going to be big factor in your decision. If you are going into this being a healthy individual then you should probably stay away from those insurance firms that offer policies that don't demand medical checks. These policies are more expensive because they are at risk of losing more. Because of this risk, they have to pass on the cost to you. Clearing a medical checkup for a cheaper policy is the way to go for a healthier person.

Depending on your goals for this life insurance policy, if you have shorter term thoughts you may want to look into having a term policy. The premiums may be higher but you will benefit more from these whole life insurance policies offering terms spanning from five to twenty years and you can access the funds whenever you need to. It may be more to begin with but you will save money in the end.

The third point is to look for those policies that have the least amount of fees tacked on. These are called 'no load' or 'low-load' policies. You may have to look at the fine-print on these, but they can save you a lot of money in the end.

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Buying the Right Amount of Life Insurance

2010-02-08T06:15:00.004-08:00

To discover the type and amount of insurance that is right for you there needs to be some extra logic and planning in your thinking. You really need to think about the purpose for which you are buying life insurance.

Generally life insurance is purchased to replace the income of one of the members of a family just in case something happens, whether an illness or even worse, a death. This insurance will be there to ease up those troubled times and cover expenses that otherwise could not be paid for.

If you are married, buying enough insurance to cover major expenses such as the mortgage may be sufficient because the other person's income if they work might cover the other costs. However, if the other person cannot work, or if you are a single parent, you might want to consider buying more insurance because if other expenses are not covered they will either leave your spouse in poor financial shape, or leave the bills to your children. For those that are single with no children, purchasing enough insurance to cover debts and leftover expenses may be the right option.

Another point of life insurance for those on the wealthier side of the equation is for those who would like to make charitable donations after dying. This is one way to make sure that this donation actually does occur without any hassle.

Article Source: http://EzineArticles.com/?expert=Catherine_Collete

Top Secrets to Buying Life Insurance

2010-02-08T06:15:00.003-08:00

There are very few individuals who do not realize how important it is to take the appropriate steps to ensure adequate protection, and yet most people try and avoid life insurance quotes because they perceive them to be confusing and frustrating. In reality, life insurance quotes are not really that difficult to obtain and learning a couple secrets can help alleviate the stress associated with the buying process.

Many people simply do not understand that all quotes are not created equal. A consumer needs to carefully read all of the terms and conditions for any policy and pay particular attention to the death benefit and its provisions. Many ridiculously low cost policies are actually indicative of a sub-par product that will pay nothing in the first 5-10 years.

Another thing that many insurers do not typically divulge is that there are often price breaks at certain coverage levels. The life insurance quotes of a $500,000 policy may actually be less than the life insurance quotes of a $495,000 policy. It is important to try several different combinations when looking for coverage in order to obtain the best deal.

Most individuals realize that certain life factors, such as smoking or other hazardous pastimes, can drastically increase insurance premiums. However, there are companies that actually specialize in providing quotes to high risk clients and these insurers can be found quite easily.

Obtaining quotes is not nearly as difficult as most people believe. In fact, it's normally as easy as filling out a brief online form on an insurance comparison website. The best way to achieve the lowest possible price on anything is to compare multiple estimates and the same holds true for you insurance policy.

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The Pros and Cons of Annuities - Is an Annuity the Right Choice For You

2010-02-08T06:15:00.001-08:00

Choosing the best annuity that will best meet your retirement investment needs is sometimes a very complicated and complex process because each type of annuity investment has their own way of providing incomes for the investor depending on the needs of the investor. As what all experienced investors would suggest, timing will always be the key to make your annuity investment a lot more productive. If you are in the market looking for the perfect annuity investment that will best fit your requirement you have to understand first the pros and cons of investing in annuities before you make your first step of investment.

Let's start with the pros. The first main advantage you can get in is financial security and other tax deferment benefits which is always a given factor when it comes to annuity investments. The security you get from depends on the guarantees that come with it. Most of the time, this happens when it comes to fixed annuity rate which allows the investor a guaranteed source of income for the investor's entire life or up until the agreement expires depending on the agreement between the investor and the insurance company. This allows the investor to enjoy the fruits of his or her investments even if the market performs poorly. But always remember that the percentage of your income from your annuity investment will always depend on the financial strength of the insurance company apart from the market condition during the time of your investment.

Among all the available insurance products you can get, annuities is one of the most secured and it can also guarantee you the safest and most secure source of income even during your retirement. Aside from that, you can also enjoy the benefits of tax deferment during the investing stage and during this deferral phase, the government will not impose any taxes on the annuity investment of the individual.

Like any investments there are also some cons you have to concern yourself with and in the case of annuities, there are some disadvantages you have to consider. The thing about annuity investments are the hidden costs that inevitably come with it. Before you sign for any form of annuity investment, always make sure that all the expenses and costs are clear to your understanding so that you will not be surprised when you have reap your rewards, you will know what to expect. This is also why you have to consider all the total costs and evaluate whether it is the right investment for you. There are also some risks involved when it comes to annuity investment and if you are a policy holder, you must be aware of this. As with all types of investments, there are certain pros and cons of annuities you have to consider and by being aware of these facts will allow you to understand whether your choice is the one meeting your requirements for your own nest egg in the future.

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Life Insurance - It is Vital and Effective

2010-02-08T06:12:00.000-08:00

Life Insurance is a term all of us are familiar with. Most of us have had ourselves insured in some form or the other - whether a life insurance or a medical insurance, and definitely a vehicle insurance. Householders Insurance is also an essential part of our lives nowadays. But it is life insurance that it is the most vital of all insurances, since it is meant to benefit not just yourself, but also your family and loved ones after you have gone.

The basics of life insurance remain the same. An annual premium, given over a fixed time period of time, is multiplied at a certain rate of interest. Depending upon the plan chosen, the final amount is disbursed either after the demise of insured person, or after his/her retirement, to augment his pension.

Life Insurance is one of the best ways to save money for the future. There is stability in insurance savings which is not evident in most other savings mechanisms. The peace of mind that comes from knowing that to some extent your loved ones are being cared for after you have gone, adds to the sense of solidity.

There are many companies all over the United Kingdom which specialise in Life Insurance. The packages vary according to the policy undertaken, but all of them guarantee quick service, easy to access customer service and a guaranteed return.

HSBC provides a life insurance or lump sum insurance cover. You can opt to take a lump sum after maturity or take regular payments every month. They also provide an unemployment or sickness cover up to 50% of your gross annual income, in case you lose your job due to an accident or illness. It takes only a few minutes to apply and get an online insurance, hence you can be covered within 6 minutes of applying.

Fortis Life and Synergy Insurance also provide the same kind of insurance policies. They also have the facility of prompt online service, and a knowledgeable and expert customer service team. All insurance companies invite you to get an online quote for free so that you can make a comparison and choose the one that suits both your budget and your requirements.

Barclay, Saga and Virgin Money are among the other leading Life Insurance providers in the United Kingdom. The cover at Virgin Money is flexible, and you can increase it as your finances become easier, and your requirements change. All three of them offer you a Level Life Cover or a Decreasing Life Cover or a Joint Life Cover as alternatives.

There are many sites, where you can apply for an insurance quote and they will do the hard work of finding the best insurance for you. They search among all the leading insurance providers and offer you the best options from among them.

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Seniors Feel More Confident With Final Expense Life Insurance

2009-12-14T02:40:00.003-08:00

For those who are considering retirement or have already retired, their need for life insurance becomes different. A final expense life insurance policy seems to be more urgent and wiser than ever.

Family members do not want the responsibility of handling a financial burden of a loved one who has passed away when they can do otherwise. Putting a plan into action now can save much emotional stress, anxiety and the burden of dealing with the unexpected.

Protecting and preparing yourself or your loved one for death is a topic worth discussing, but most people shy away from it.

This is a whole life insurance policy that is permanent, has a fixed monthly premium and gives the benefit of paying not only funeral expenses, but all other expenses associated with debts, mortgages, car payments, hospital bills, doctor bills, and legal fees.

Senior citizens are primary candidates for a final expense insurance policy because it gives them the relief of knowing that their funeral expenses and other financial obligations will be taken care of in the event of their passing.

A minimum of $3,000 to a maximum of $50,000 is the face value of this insurance policy, which gives the beneficiary a financial cushion to deal with the financial burden that a funeral can cause.

Qualifications and Advantages

To qualify for this type of insurance, the recipient should be between the ages of 50 and 85. As long as the premium is being paid for the life of the insurance, there will be no cancellation of this policy and premiums will remain the same.

The advantage of having this type of insurance puts you and your loved ones in the position of being able to have a smoother financial transition and not have to be burdened by unexpected bills and high funeral expenses.

A final expense life insurance policy is a guarantee that life after death for your loved ones who will be left behind with all the bills and obligations will not be as difficult as it could be without insurance.

There are no medical exams required and this is comforting for seniors who suffer long term with cholesterol, diabetes, high blood pressure and other ailments.

Though the monthly premiums may be different with more serious health issues such as cancer and heart disease, a guaranteed issue policy is also available to seniors.

Other Things To Note

When choosing this kind of insurance policy, you have the option to select the plan that best fits your current and future needs.

With a final expense insurance policy, the beneficiary gets the payment immediately upon the death of the insured while other insurance policies have the beneficiary waiting for longer periods to collect payment.

Whether you want to or not, death is something that all of us have to face and being prepared for this inevitable occurrence is the best way to handle it. You don't want to be caught off guard and not be ready for any unexpected bills and funeral expenses.

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Final Expense Life Insurance Provides Financial Backup

2009-12-14T02:40:00.001-08:00

It is an emotional time when a loved one passes away, but it is especially hard when you have to take care of all the funeral expenses and the bills that are left behind.

Being unprepared for this kind of situation can be quite stressful and on top of your emotions, can be very devastating, especially if you don't have additional financial support.

Even if there are financial resources available, it is not wise to use all your finances on funeral expenses when you can have a final expense life insurance policy to take care of this for you.

Time To Take Action
If you have a loved one that is a senior citizen or retired, you will want to start taking action in securing funds to use in the event that your loved one dies. Funeral expenses are on the increase and so being prepared helps to give you some kind of financial cushion when it comes time to dealing with what comes after the death.

Of course, this is an issue that families avoid and then when they are faced with it everyone scrambles to pool money together to bury their loved one and then the fight begins as to who will pay off the outstanding debts, which includes credit cards, hospital bills, doctor bills and more.

Usually people who are aging may not want to discuss these issues either and may hide their financial obligations from their children as well as their spouse.

If you want to avoid surprises and any financial burden that your loved one may leave behind, then it is best to consider a final expense life insurance policy for reassurance.

Final Expense Life - Permanent Plan Long Term Benefits
If you or your loved ones are enjoying fair health and don't have major health issues, a simplified issue policy provides immediate benefits that require no waiting period.

A guaranteed issue policy on the other hand helps those who have some type of failing health issues and with a two to three year waiting period, family members would be able to collect full death benefits in the event that the person dies after the waiting period.

When you consider a final expense life insurance policy, you have the benefits of a permanent plan with fixed monthly rates that will never change. Unlike term insurance, these policies never expire. They allow you or your family member to be covered under the plan for the remainder of your life.

When To Consider The Plan
If you are fifty years old or older or you have a family member of which you are responsible for, it is time to consider a plan to execute if you or your loved one dies. It is even more feasible if there are failing issues with health that have not been able to be resolved.

It may be a gloomy topic to talk about, but it needs to be addressed before the unexpected happens. When an ongoing illness takes you or your loved to the hospital, then it is time to think about the idea of putting all your assets in place and making arrangements in case of an unexpected death that could occur.

A final expense life insurance policy is one of the most important things to consider when you have to face these issues.

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Life Insurance - Is "Buy Term and Invest the Rest," The Proper Strategy?

2009-12-14T02:39:00.002-08:00

First things first: We definitely, without a doubt need to carry life insurance!

If we insure our cars, our houses, our jewels, because we fear losing them and the pain that can cause us to lose them is hard, then we must insure ourselves. The value of our lives is priceless, we are the ones that with our ideas and efforts make the enjoyment of those cars, houses and jewels possible, and we are the ones that provide for our dependents and loved ones in pursue of their well-being and happiness.

Once we agree on the prior paragraph, we come to a decision of which type of life insurance to carry. There are two main types of life insurance: Term life and permanent life.

There is a very strong trend of advisers advocating the popular "Buy term and invest the rest" based in the assumption that buying cheap term life insurance will leave you with a good amount of money to invest in different vehicles to achieve fortune. It is also assumed that at retirement age your children will be self sustained individuals enjoying a good amount of wealth and you will be free of debt and owner of a big fortune.

The problem of this strategy is that it has two humongous flaws. The first one is you do not know when you are going to die so spending money for as little as it may be (is not) in term insurance can result in a complete waste of money.

The second one is, by statistics, the percentage of individuals retiring wealthy in most societies is 10 per cent or less. So, all those advisers including famous entertaining gurus like Dave Ramsey and Susie Orman, are talking to benefit whom with this strategy? The top 10% of the population?

Therefore, what do we, the 90% left of the population do? The ones that make mistakes and perhaps do not learn from them, the ones that when opportunity knocks to our door decide not to open it for whatever reason, do we have a chance to reach a decent retirement?

Yes we do! And it is doing exactly opposite as what the entertaining gurus' advice; we can buy permanent life insurance, which offers the opportunity to grow a cash value.

It has been determined that for the average individual, the need for finance is greater than the need for insurance, and by solving for the deficiency of finance; we get to solve the need for insurance.

It would benefit you to find and read "Becoming your own Banker" by Nelson Nash. Nelson teach us in this great book how a well designed whole life insurance policy can help us to provide protection for our loved ones and grow a retirement fund while at the same time have access to a very efficient tool to propel us in our working years by applying a simple process of financing our own needs.

This simple process is basically straightening our banking position where instead of always being a client of a bank, we can become the bankers ourselves.

As simple as this sound, this change brings tremendous advantages to our economies. This provide us more control on our money, the ability to recapture interest that we are normally paying to banks and financial institutions, and overtime recapture the cost of our purchases.

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How to Save As Much As 50% on Your Next Life Insurance Quotation

2009-12-14T02:39:00.001-08:00

Like most types of insurance, the common method of saving money on a life insurance quote is to shop around or, where possible, reduce the risk you pose to the insurer. Unfortunately, the options for lowering your risk with life insurance can be a little more inconvenient than with other types of cover such as car or home insurance. This often requires more extreme changes to your lifestyle such as stopping smoking or giving up risky hobbies or pastimes.

Whilst shopping around should always be included in your research, a relatively new development in the online insurance market can potentially halve the premiums in your quotes for the same type, amount and duration of cover when compared to quotes from high street providers such as supermarkets and banks.

So how is this possible?

Known as 'discount life insurance brokers' these online comparison services offer reduced premiums from leading insurance companies by sacrificing some of the commission they are paid by the insurers they quote for arranging a policy sale. In most instances, the premiums quoted if the broker took all their commission would equal that offered direct from the insurance companies included in the brokers comparisons. But as they sacrifice a large proportion of this commission, the quoted premium is discounted for the same policy.

Many of these discount services offer instant comparative quotes too. So not only can you get discounts from more providers, you can also compare them all in a single quotation. Another, less well known benefit, is that some of the biggest insurers which have pulled their quotes from the major price comparison sites can still be compared and discounted on these smaller broker websites.

The only word of caution is that many of these discount services may not be suitable if you don't already know exactly what type, amount and duration of cover meets your needs best. As the cost of giving advice could have an impact on the discounts offered, many online brokers don't include this in their standard quote and apply service. If you need help and advice choosing the right type of cover, you can either find a service that includes this or consult a professional adviser first.

Where can you find them?

A simple search in Google for 'discount life insurance' or similar can often pull up a list of the main discount broker services. Get quotes from at least two or three services and make sure all are regulated by the FSA before going any further.

Article Source: http://EzineArticles.com/?expert=Marcus_Sharpe

Free Online Insurance Quotes - How to Get Insurance Quotes For Free Online

2009-11-04T03:20:00.003-08:00

Do you still believe that there are no free lunches in the world today? Well, it could be, but not when it comes to insurance quotes. Insurance is a concept that many people cannot do without in the world that we are living in today, bearing in mind that accidents and diseases are on the increase today. In addition, the life span of a human being seems to be dropping by the day. As such, insurance companies know that people are turning to them to take cover for such eventualities. The policies are now being offered at higher prices than it was a few years ago, but this is not to worry you because you can still get free online insurance.

If you are an existing policy holder, you need to be advised that you do not have to wait until the policy is completely expired to renew it. This is the time to start shopping for new insurers if the one you have insured with does not satisfy your insurance needs. That way, you will have time enough to look around and get free insurance quotes, which you might find to be more favorable than what you already have. How do you go about the search? First and foremost, if you are looking for quality coverage and low premiums, you must be specific about the type of coverage you are looking for.

The better the coverage, the more you might have to part with in terms of premiums, but at the end of the day this is cheaper because then, you get compensated at a very high rate. The amount of premiums, however, may be reduced, if you can opt to part with a larger amount of deductible. A deductible is that amount that you pay to the insurer for any expenses incurred before you can be compensated. As you try to get free online insurance quotes, put this into consideration and see to it that it is catered for.

Sometimes you may want to ask how cheap the online insurance is, you need to have first done your market survey to get all the information you can regarding the policies you want to buy. You could obtain the information from friends, or you could carry out an online review about the quotes. Remember that even though you could online insurance for free, the story might be different tomorrow, bearing in mind that the rates are constantly changing depending on the market forces and other factors. You might also find that you might not be accorded those quotes as they are if you have a poor credit history or a faulty driving record. Thus make sure that these two are in good order.

It is important to compare insurance quotes before getting signed up with an insurance policy. When you compare insurance quotes you can rest assured you are saving both time and money because you are guaranteed to get the lowest insurance quote.

Article Source: http://EzineArticles.com/?expert=Matthew_Couch

A Short Guide to the Fixed Annuity

2009-11-04T03:20:00.001-08:00

The fixed annuity is similar in many ways to CDs issued by a bank, but the difference is that they are intended to fund the buyer's retirement. These are for the most part very low in risk and can be converted to cash much easier than a typical CD as well. Their earnings may be deferred for tax purposes and they will generally provide a higher yield than CD's or bonds. They can be classified as either immediate or deferred. The former begins making payments immediately until the interest and premium is spent and the latter does not begin making payments until the end of the term agreed upon.

A fixed annuity will typically feature the following:

* One single upfront premium.
* The contract will lock onto one guaranteed interest rate for a certain number of years, just like a CD. * Offer a low risk because the money invested can only be lost in cases where the issuing financial institution becomes insolvent.
* Are the perfect solution for generating a solid income for retirement.
* Offer pretty solid returns for their low risk.
* Are offered for either short, medium, or long term durations, with the longer terms offering higher yields.
* Incredibly easy to use and feature no hassles. Simply sign the contact and make the required premium in order to start collecting.

Unless you terminate your fixed annuity contract early you can expect to receive a guaranteed investment with plenty of opportunity for growth. When these annuities are deferred you can expect the tax-deferral to compound as well which will earn you much more than a CD or money market account. In addition to receiving a steady income for life, you can count on receiving allowances for withdrawal without penalties, death benefits, and probate insurance.

These annuities are the perfect investment for anyone who is interested in finding a low risk investment; particularly those who have just retired and are looking for a way to protect their retirement fund from the volatility of the market. Although one does not stand the same high rate of return as the variable alternative provides, they will provide a steady stream of income with very little risk. However, it is good to keep in mind that successful annuities will include more than one investment, so diversification is key.

Article Source: http://EzineArticles.com/?expert=Lisa_Cintron

Term Life Insurance - The Best Insurance Plan For a Short Period of Time

2009-11-04T03:19:00.001-08:00

Every person needs to insure his life. He can either go for permanent insurance policies or settle down with term life insurance plans. Any one of these offers a person insurance coverage for a short period of time, which can be 1, 5, 10, 15, or 20 years. The "term" depends on the need and preference of the individual. Due to this reason a term life insurance is also known as a "temporary insurance."

As the this offers coverage to a person for a limited period of time, the price of this insurance is very low. Therefore, it can be easily purchased by a person. If the insurance holder dies within the term, the money is paid to the beneficiary. However, if the person dies even one day after the insurance plan ceases and it is not renewed, then no cash benefits are paid to anyone.

There are various types of term life insurance which a person can go for. The "term" also depends on the age of the person's children, or on the retirement age of that individual. Most people purchase an insurance plan till their children reach the age of 18 or 21, so they can pay off their tuition fees through their life insurance. There are many who purchase an insurance plan till the age of 65, so that they do not face any financial crisis after retirement.

There are different types of policies available. The Annual renewable term insurance enables a person to renew the plan every year. Generally, People go for a 65 years plan, up to which the insurance plan will automatically get renewed every year. In this plan the premiums keep increasing every time the policy is renewed (i.e. every year). This is why it is advisable to buy a plan at a younger age so that the individual gets a substantial coverage by paying lesser premium amount every year.

Another type of term life insurance plan is the renewable. This policy automatically gets renewed after the completion of each term, which is generally from 5 to 20 years. It is a bit costly as a greater financial risk is involved. There are different conditions associated with this renewable term insurance policy, which varies from company to company.

In a Level premium term insurance policy, the premiums paid in each term remains the same. Therefore, a person paying a certain amount of premium today will have to pay the same amount every time his policy gets renewed. A decreasing term insurance offers level premium throughout the term. The cash benefits in this policy keep decreasing every year.

Another type of plan is the Convertible term insurance. With this policy a person can convert his term insurance into any of the other four types of policies offered by the insurance company. It is a little costly than the other annual renewable term insurance policies. There are a range of term life insurance plans a person can go for. He can access his needs and make a choice!

Article Source: http://EzineArticles.com/?expert=Milon_Ruther

Term Life Insurance - Secure Your Future!

2009-11-04T03:18:00.000-08:00

Term life insurance is a type of insurance policy that provides coverage for a limited period of time. At the end of each "term" the insured can either cancel the policy or renew the coverage plan by paying increased premiums. It can be used to cover potential expenses until a person gathers sufficient funds from his savings.

Term life insurance is different from a permanent insurance. Before any person takes any decision he must understand his priorities. If he wants a coverage that will end till he dies, then he should go for a permanent insurance policy. An insurance for term life policy, however good it is, does not guarantee coverage till the insured's death. Moreover, a permanent life insurance plan involves greater premium amounts as it offers coverage for a life time. In this respect, the insurance plans are better, as they involve lesser premium (depending on the length of the term).

Five Types of Term life Insurance:

There are five variations of insurance policies which have different objectives and offer variable benefits.

Annual renewable:- If the insured wants to renew his policy every year he can go for the annual renewable insurance. Generally, people continue this policy for 65 years- till the age of retirement. There are some who purchase this policy for 15 years when their youngest child is just three years old. This way the policy can pay for the child's tuition fees till they graduate. Each time the policy is renewed, the premiums keep increasing. If a person buys this plan in his early years then he would receive significant coverage by paying lower premiums each year.

Renewable- The renewable policy offers automatic renewal at the end of every term. The term for this renewable term insurance policy generally range from 5 to 20 years. This term life insurance is more expensive as the risk involved in this plan is more.

Level premium- The level premium policy involves payment of an equal amount of premium in each term. In this plan, if a person starts paying a specific premium in the early years, he needs to pay the same amount in the later years as well. Hence, the premium amount will seem lesser with the increase in the number of years.

Decreasing- If a person wants to pay lesser he can go for the decreasing term insurance plan. The cash benefits in this policy keep decreasing every year. This way the policy holder can pay a little more in the initial days, but end up paying less in the later days.

Convertible- In this type of insurance plan, one can covert his policy from one term insurance plan to another, according to his needs and convenience. This policy is expensive as there is a greater risk involved.

Article Source: http://EzineArticles.com/?expert=Milon_Ruther

Why Final Expense Life Insurance?

2009-10-05T07:21:00.001-07:00

Many people opt to use their savings instead of buying a final expense life insurance policy but what they do not factor in is inflation and other debts that they may have upon their death. It has been determined that the last six months of a person's life are the most expensive, especially involving medical expenses that exceed health benefits. We have seen people's entire savings wiped out, leaving the family with nothing to provide for funeral and burial expenses.

Although an average funeral costs in 2009 is $6,500 every year this increases as high as 5% per year. If a person does not pass away for another 25 years a funeral at that time could be as much as $18,000. When you include debts and other unforeseen expenses it is best to have a policy in place to pay for all of these expenses. Instead of having to burden your family during this crisis it is important to have an insurance plan to shield your family from a financial burden.

Life insurance is a living benefit for survivors and it can often take weeks sometimes even months to pay. Many final expense life insurance plans are designed to be there immediately upon death. Some plans will pay 24 hours of when the information is received. Funeral homes are businesses and they expect to have their cash right away.

They appreciate final expense plans due to the prompt payments received. This is why final expense plans are considered a death benefit and helps to preserve the survivor's financial future. Life insurance will cover the loss of income for your spouse when you are gone. Final expense life insurance will pay for funeral expenses and other debts usually within 24 hours of when the information is received.

Article Source: http://EzineArticles.com/?expert=Lakeisha_Clayton

Top 10 Things You Must Know About Life Insurance

2009-10-05T07:20:00.002-07:00

The more you know about how your life insurance works, the easier it is for you to seek for the right insurance plan. The more research you have made on life insurance policies, the better for you to avoid any possible pitfalls when it comes to insurance purchase.

Here is a list of 10 key things on life insurance which everyone should be aware of,

1. Shopping around save money

It definitely pays to shop around because premiums vary widely across one Insurance company to another. Getting yourself equipped with the necessary insurance policy information will facilitate your searching for the best optimum Insurance plan.

2. Just get what is needed

Make sure you are not under insured because you are unlikely to get the needed benefits if you are under-insured. Also ensure that you do not over-spend on life insurance because buying more than what you need is a waste of money, just get what you believe is sufficient.

3. What happen in the event of delinquent payments?

You are normally given a grace period of 30 days to make payment on your premium. However if you have not paid within the grace period, your policy will lapse. In the case of permanent insurance policy, if you are late on your payment, your cash value amount will be deducted accordingly by your number of delinquent days.

4. What is the best age to get your Insurance?

The younger you are, the lower your life insurance premiums will be. The reason is because your risk of dying is lower when you are younger.

5. The healthier you are, the better the rates

Healthy people tend to get the best deals when it comes to life insurance.They will be able to get a better rates as compared to those with health problems, e.g, smoking, being overweight or with heart disease.

6. Is the result of my medical exam crucial?

The status of your medical exam results will determine what kind of Insurance rates you will be offered by the insurance company. Your height, weight, health, life-styles are all taken into consideration.

7. Will having more than one policy cancel the other one out?

Not at all. If you have a credit life insurance policy and a whole-life insurance policy, and you paid all the necessary premiums, both policies will pay out according to the initial terms of the policy. The credit life policy will pay off your credit card balance and the death benefits will be paid out on your whole life policy.

8. Can I buy a life insurance policy on someone else?

Yes, if you have insurable interest for that person, normally for a close relative or friend, you can buy insurance for them. However, the official stipulation here is that that person must know about it.

9. Review your coverage regularly

Changes in your life signals the need for a review of your overall financial plan. Always ensure that your coverage is intact with the changes you have gone through such as marriage, birth of a child, impending retirement, retrenchment, promotion have effect on the insurance coverage that you may need.

10. Compare the ratings granted on your finalized list of Insurance companies.

Article Source: http://EzineArticles.com/?expert=J.J._Yong

Progressive Life Insurance Rates - Where to Compare Progressive Life Insurance Rates Online

2009-10-05T07:20:00.001-07:00

Any responsible individual will have some form of insurance policy covering himself and his loved ones. Not to sound morbid, but you should get insurance too, if you do not already have one, even if just to get some peace of mind knowing that your family will not be left with nothing should something bad happen to you. Among the many providers of life insurance is Progressive. With the current economy, however, you might think that purchasing an insurance policy will add more to your expenses and maybe contribute to the difficulty you are now experiencing. Life insurance policies do not have to be expensive; in fact, you can get a program with good benefits and coverage at a very affordable rate.

The key to getting the best deal is to compare Progressive life insurance rates and finding the cheapest with the best coverage. The most convenient way to do this is through websites that provide insurance estimate comparisons. These online tools, aside from making the process far more convenient, can help you get a good idea of the rates offered by Progressive.

It is relatively easy to find these websites; all you need to do is a computer, a web browser, and an internet connection. You can start your search and come up with results for websites that provide insurance quote comparison. Choose one that you think is credible and legitimate. It is important to find one that is of good reputation as some of these websites will use the information you provide them and sell the data as leads. Once you are comfortable with your choice of website, provide the information required, submit the form, and wait for your results to come.

Online estimate comparison services will not only give you information on the rates and costs of the policies, you will also be provided with information about the policy coverage - and all in just a few minutes. These online tools totally eliminate the effort needed to gather estimates from insurance companies.

One other benefit you can get from using an online tool is the absence of an insurance agent or salesperson. You can go over the estimates provided and the coverage information without being pressured into making a decision and purchasing the policy offered by the agent. You can take as much time as you want and make the decision at your own pace. There are many other benefits you can take advantage of when shopping for insurance via the internet, just be sure to exercise caution if you shop online.

It is important to compare insurance quotes before getting signed up with an insurance policy. When you compare insurance quotes you can rest assured you are saving both time and money because you are guaranteed to get the lowest insurance quote.

Article Source: http://EzineArticles.com/?expert=Matthew_Couch

Learn About Life Insurance Brokers

2009-09-11T00:13:00.002-07:00

Life Insurance Brokers can be regarded as agents who helps others in finding appropriate policies and charge minor commissions from insurance seeker as well as the insurance provider in lieu of their services. Although these agents take a small chunk of money in form of commission from your pocket, they can help you in cutting short on the overall money spent upon purchasing a good life insurance coverage.

Utility of Life Insurance Brokers

As catastrophe/calamity cannot be predicted in individual's life, it becomes to survive the financial crunch during such times, more so when the entire family relies completely upon his/her earnings. Bereavement in a family necessitates the importance of an insurance policy as a great savior. For obtaining the best policy from the insurance market, the life insurance brokers can be consulted as they can assist the insurance seeker to choose the apt and the best policy. The chief responsibility of an agent is to claim the money due from the policy subsequent to the death of the policy holder, and make sure that the customer doesn't face any problems while he/she is still alive.

A good agent should be able to guide the client in selecting the right policies. More often than not, the life insurance brokers try to persuade the insurance seekers to purchase unilateral insurance policy.

Are Professional Brokers and Brokerage Firms Worth Your Money?

It is recommendable to seek professional assistance from professional brokers and brokerage firms for keeping abreast of all the latest market developments in insurance market. Brokerage firms turn out to be a handy option for the insurance seekers, wherein a number of professional brokers are available at their disposal.

You may surely need to pay minor commissions, but all in all, these brokers can help a great deal in finding affordable life insurance coverage pertaining to the needs of particular customer. Moreover, there are a number of websites present over the internet, which can also help you a great deal in this regard.

Here's a good link to find all the necessary information to understand how the life insurance brokers can help you in saving money on your annual insurance premiums.

Article Source: http://EzineArticles.com/?expert=Lana_Leicester

Should You Buy Life Insurance Leads?

2009-09-11T00:13:00.001-07:00

If someone walked up to you in the street tomorrow and said "I have something I'd like to sell you. It's a machine that prints money - real money - and if you pay me $20 for it now, it's yours forever!" would you believe them? Probably not. After all, if this machine is so perfect, why on earth would they be looking to sell it to someone they don't know. Even if they have another ten of them in their pockets, they'll still be letting someone else have the thing that makes them unique and - by comparison to others - rich. The moral of the story is that if something sounds perfect and faultless, then there are probably big faults with it that need a magical story to cover them.

It is with this in mind that you should approach any individual or company which offers you the opportunity to buy life insurance leads. It's not absolutely the same situation - of course - but the exaggeration is necessary to make a point. Don't believe someone who tells you they can deliver you a potentially six- or seven-figure wealth creation stream for a one-off fee in the region of $50 or less. Chances are - indeed, it's practically a certainty - that they're exaggerating. Exaggerating through their teeth, more than likely. After all, if these "opportunities" actually worked, we'd all be wealthy beyond our wildest dreams.

So does this mean that you should always pass up the opportunity to buy life insurance leads? Definitely not. But you should certainly do a good bit of research into the claim before you take it to be true. After all, if these leads are so golden, why are they passing them up for a fraction of their eventual worth?

Yes, they may have their reasons. They may have retired from the insurance game and want to make sure that their hard work doesn't go to waste, while making themselves a nice little income stream. They might just have so much business that they're absolutely snowed under. There's also the possibility - and a betting man would likely say that it's worth putting money on it - that they're being very generous with the truth. Take any bold claim that someone can make you rich as being highly suspect. It's not that people aren't that nice or that kind, more that people don't tend to give money away, which is essentially what this amounts to. If they do, it's usually to charity.

Of course, it's also important to note that legitimate life insurance lead salespeople do exist. Usually, they generate their leads from informative websites on the subject of life insurance and they'll sell them to you either in bulk or as an exclusive lead. Purchasing these leads can be a good way to jump start your business during slow periods, although they aren't nearly as targeted as leads you find yourself. But before you sign up to buy these leads, be sure you understand the company's terms - you may only have a certain amount of time before your exclusive leads turn into the less valuable bulk shared leads.

So before you buy life insurance leads, you need to go into the situation with both eyes not only wide open, but also darting around at given intervals looking for holes in their story. If a story sounds too good to be true, it probably is. By doing your research, you may just find the grain of truth in what they're telling you that puts you on the right foot. But if there's any way that you'll end up on the losing end of the deal, politely decline their "kind" offer for those valuable life insurance leads.

Article Source: http://EzineArticles.com/?expert=Bob_I_Richards

Understanding Life Insurance Policies

2009-09-11T00:09:00.000-07:00

The various life insurance terms are confusing. It's all very well for the professionals to be quoting life, whole of life and term, but many people simply don't understand the actual meaning of the words. It's a good idea to ascertain the basic meanings to help you to understand exactly what you're getting, or being offered.

Not everyone actually needs life insurance but the chances are that if you have anyone who depends on you or maybe a young family to support, it's an extremely sensible move. In the event of your death a life insurance policy will support your dependants and offer them financial security at a time when they have enough to cope with, without worrying about how to pay the bills.

Life insurance is basically in two forms - whole of life and term. Whole of life would pay out on your death, whenever that happens. It covers you for the whole of your life. Term insurance policies are taken out for a fixed term, which is agreed at the time which you take the policy out. Frequently you'd take these out for a specific time - maybe to cover the length of your mortgage. If you were to die during the term of the insurance, then the insurance would pay out to dependants. At the end of the term, the cover ends. You would then be wise to re-assess the situation regarding your personal circumstances.

This, very briefly, describes the insurance cover as far as your demise is concerned. However, there are other types of insurance which can give you peace of mind. One that many families have been extremely grateful for is critical illness cover. This is designed to cover you if you were to suffer a critical illness from which you would hopefully recover, but which could leave you in financial distress. Some of the serious conditions mean long periods of treatment whilst you're unable to work, or even unable to continue your current job.

A lump sum is paid when the condition is diagnosed. This can be used in any way you choose. Many people settle the mortgage or pay for adaptations to the home that the illness requires. When taking out this type of cover, you need to sift through the small print and discover just which conditions are covered. Cancer, for instance, is no longer the death sentence is used to be. Very many cancers are treatable and indeed curable and these would not fall into the critical category. Life expectancy has very much improved due to improved treatments and expectation of recovery.

If you're applying for this type of insurance it's especially important to fill in the application form most carefully and disclose any illnesses from which you have suffered in the past. If you have a claim, the first thing an insurer will do is to check your details and if they find a pre-existing condition which you've not told them about, your claim will be at risk.

It's always wise to compare lots of insurance products on a like for like basis. The easiest way to do this is via the internet. Find an independent adviser, who will automatically compare the market and find the right product for you.

Article Source: http://EzineArticles.com/?expert=Michael_Challiner

Life Insurance Rates Are Dropping This Month - Take Advantage of the Recession

2009-08-23T07:05:00.005-07:00

Life insurance companies often change their fees, and it can sometimes happen every single month. The recession is actually benefiting consumers, because it causes a lot of competition amongst life insurance companies. These companies are fighting to get as many customers as they can, so you are in a good position to get a great deal.

New websites are now open to the public that show you which companies have the lowest prices. These online tools are very quick and easy to use, and best of all, free. It will only take about 20 seconds to find the prices of all the major companies, and the chances are that you will be shown a lower rate than your current one.

These tools can be used without the need to ever speak to insurance sales reps, who are only going to persuade you to pay even more, and can often take many hours. These websites are here to save you time and money, and let you find all the information you need in seconds.

We are lucky that the poor condition of the economy has provided us with good prospects of money saving. Customers benefit from businesses lowering their prices to beat their rivals. Because of this, it is now easy to get a lot of money off your insurance.

You don't need to look around for hours on end to find a better insurance quote anymore. Use these new online tools and you will be saving money within seconds. You may even notice that the company you currently use for your life insurance has a cheaper policy that they have not told you about.

Article Source: http://EzineArticles.com/?expert=Trey_Augusta

About Senior Term-Life-Insurance

2009-08-23T07:05:00.003-07:00

Senior term life insurance is one of the better options available for elderly people who want to buy an insurance policy. Many people argue that senior people don't even need an insurance policy since they are already retired but there are cases when this need is genuine.

Till some time back, there were hardly any companies which offered insurance products for this category of people. But now they have realized that this is a growing market and they should have products catering to this population. The main reason why companies are offering insurance policies to senior people is that over 90% of life insurance policies never make a pay out because policy holders allow them to lapse.

Senior people need insurance for different reasons than younger lot. Younger people buy insurance thinking long term and the coverage amount is usually pretty high. But in case of insurance policies for seniors, the coverage amount is smaller. Even the duration of the policy is much shorter which is usually between 5 and 10 years. The premium of insurance policies for senior people is often much higher due to their age and health issues.

There are various reasons why senior people choose to buy an insurance policy. They may want to buy a funeral insurance policy so that they don't become a burden on their family after death. They may want to leave some extra cash for their children and grand children or they may still have some loan pending in their name which they want to cover. For any of these reasons, a senior term life insurance policy is a very good option.

The insurance companies have come up with new and different types of policies for this category of people. These include guaranteed acceptance life insurance, term life insurance for seniors, whole life insurance for seniors and single pay insurance for seniors. Senior people have the option to choose the best policy as per their need.

Article Source: http://EzineArticles.com/?expert=Vav_Karter

All About Over 50 Life Insurance

2009-08-23T07:05:00.001-07:00

Over 50 life insurance was not a very common thing till some years back. But gradually, the trend of older people buying life insurance has picked up. A lot of people ask the question as to why older people need insurance especially after retirement but there are some genuine reasons why they should buy it.

Older people especially after 50 years may want to buy a life insurance policy due to various reasons. They may have retired but their home mortgage is still pending. They may want to leave some extra money for their children. Since funeral expenses are rising very rapidly, they may want to arrange for their funeral expenses since they don't want it to be a burden on their children. Sometimes children buy policies for their parents and grand parents which ultimately help them financially after parent's death.

Having said that, over 50 life insurance is not cheap and it is also not very easy to get. The insurance companies are very particular about a thorough health check up and they may want to know the health details for as back as 10 years from current date. The premiums are high and they are even higher for smokers.

There are a few types of policies available for elder people. Many people call them insurance policies for baby boomers or insurance policies for seniors. One type of policy is called burial insurance policy or funeral insurance policy. This is a whole life policy with shorter duration. There is another type of policy called simplified issue life insurance policy which is relatively easier to get. Another type of policy is called guaranteed life policy which is also easy to get but there may be a waiting period of 3 years before any claim can be made.

Insurance policies for seniors are not easier to get especially over the internet. Older people can check out various websites and compare the quotes, eligibility, terms and condition and find out a suitable policy for themselves.

Article Source: http://EzineArticles.com/?expert=Vav_Karter

Acquiring a Cheap Life Insurance Quote

2009-08-23T07:04:00.000-07:00

Normally every one looks for a cheap life insurance which insures them against any unfortunate risks and does not demand a very high rate of premium. This is the reason why insurance companies are in great demand and why people leading low to high risk professional and personal lives can hope to secure their future and that of their families.

The insurance companies can charge you a very heavy rate of premium if you fall in to the high risk category. But there is no need to panic at the thought of paying heavy rates of premium because there are ways to bring down the premium rates and getting a cheap life insurance.

A low premium is in your hands

Your low rate of premium is in your hands just as your health is in your hands. Physical fitness is some thing one can not stress enough on. If you are physically healthy you are looked upon as a low risk liability by the insurance company.

Suppose you suffer from diabetes and the insurance company will want to sell you a not so cheap life insurance cover. You will need to consult with your medical practitioner about the ways in which you can reduce the level of diabetes, so that your medical tests suggest that you can control and effectively bring down the level of diabetes to a non threatening level. This will make your medical profile look a lot like that of a low risk liability and will get you a cheap life insurance cover. The same is true of cholesterol which can directly lead to a heart attack.

Mental fitness counts

Insurance companies are very smart and look not only at your physical fitness and age to determine your risk factor. They also consider your mental health and take a very strict view in case you are on drugs or some kind of medication that can affect your daily behavior patterns. For example if you are on anti - depressants for even a short period of time, the insurance company will think twice before giving you a cheap life insurance cover. The insurance underwriters will insist that a person with a mental condition is a threat to themselves and to society.

Lower your high risk job profile

In case you have a high risk job description that makes you vulnerable to unnecessary risks like working in a nuclear facility or being exposed to radiations etc, you will still get insured but at a higher price. You need to prove to the insurance company that such exposure is temporary to bring down the premium. If you are engaged in life threatening sports activities, you may have to curtail them in order to get a cheap life insurance cover or prove to your insurance company that you have taken more than necessary precautionary measures to minimize risk of loss of life.

The same premise holds good for when you drive on the road. Insurance companies are always interested in finding out how good a driver you are or do you suffer from road rage? Always ensure that you drive with a clear mind and are not under the influence of alcohol, obey traffic rules to minimize getting booked for traffic violations.

Article Source: http://EzineArticles.com/?expert=Herbert_Flintoff

Whole Life Vs Term Life Coverage

2009-08-18T23:56:00.003-07:00

It's something that none of us like to think about, but one day we will all leave our loved ones behind. Life insurance is a great way to make sure that your family isn't stuck paying the debts you leave behind, and it can also provide financial stability for them long after you're gone. There are two main types of life insurance- term coverage, and whole or permanent life insurance. Each type of coverage has its benefits and drawbacks. With today's tough economy, you might think that it's not financially feasible to buy life insurance. However, if you think of it as an investment in your family's future, the decision will be much easier to make.

The Pros of Term Life Coverage

It's less expensive than whole life coverage. Its low rates allow people to purchase policies that have a higher face value than they would otherwise be able to afford. Here's an example- a 45 year-old man that doesn't smoke could buy a $1,000,000 policy with a 30-year term for a little less than three thousand dollars a year. That's about four times cheaper than a permanent policy with a similar face value. Term life insurance is easy to buy. All you have to do is decide how much coverage you need, and how long you'll need it. Then, you can compare prices and plans to find out which will suit your needs.

Term life insurance is meant to bridge a gap. Keep in mind, life insurance is meant to provide for your family after you're gone. After your kids are grown and gone to college, and you and your spouse are retired, you won't have any dependents at home. Term life coverage is ideal for this situation-it covers you and your family when you'll need it most.

The Cons of Term Life Coverage

Unfortunately, as its name implies, term life coverage expires. If you buy a term life policy that expires, and you still need coverage, you'll have to start all over again. And, the older you are when you apply for coverage, the harder it will be to find it. If you aren't in the best of health, you may not be able to get coverage at all.

If you live longer than the limit on your policy, or if you cancel it, you get nothing back. Assuming that nothing major happens to you, you'll still be alive and kicking when your policy runs out. That means that you've paid thousands of dollars for a policy you got no benefit from, and you won't get anything in return.

However, if you invest the money you've saved by going with term life insurance over a more expensive whole life policy, you will most likely come out ahead. If you'd rather have the reassurance of knowing that the policy amount will be there when your loved ones need it most, then a whole life plan may be just what you need.

The Pros of Permanent (Whole Life) Insurance

Permanent coverage has cash value that will grow over time, and it's tax deferred. If you've set the plan up properly, you might accrue enough cash value to be able to stop paying premiums once you reach a certain age, or you may be able to borrow against the cash value at a reduced tax rate. Unlike term life insurance, in which premiums will rise after an initial period, the premium on a whole life policy will remain the same.

Whole life insurance is an easy, albeit more expensive way to make sure that your family isn't burdened by any debts or final expenses you leave behind. Say you have a young child and you want to make sure that they are able to afford to go to college- if you buy a whole life policy when they are a newborn, by the time they reach college age, you will have enough cash value in the policy to finance their tuition.

The Cons of Permanent (Whole Life) Insurance

As we said before, permanent coverage requires a higher initial investment than a term policy. However, if you wait to start a family until you are older, the extra expense may be worth it.

With permanent coverage, you aren't able to choose separate accounts to invest the money in. The insurance company decides how, when, and where to invest the premiums that you pay. Whole life policies are pretty rigid- the premiums and face values are pretty much non-negotiable. The plan you buy today is the same one you'll have twenty years from now, so choose carefully.

No matter what kind of insurance you choose, life insurance is a sound investment in your family's future. Whether you are thinking in the short term, or planning for your later years, life insurance is something that no family should be without.

Responsible parents can find information about getting no exam life insurance at the FedPrimeRate.com website.

Article Source: http://EzineArticles.com/?expert=Amanda_L_Allen

Understanding the Basics of Term Life Insurance

2009-08-18T23:56:00.001-07:00

If you are looking for an economical and a simple option to get your life insured then term life insurance is the best option. It's not only the cost effectiveness and the simplicity of this policy that counts but it is also the financial stability that this policy provides by supporting the family of the insurer after his/her death, hence providing a peace of mind. Usually the life insure policy covers the insurer for a fixed time span that may vary from 5 years to 30 years. Term life insurance policy is not same as other life insurance policies because in this you don't have to build up a cash value at the end of the tenure.

There are many considerations that need to be taken into account when you are requesting for term insure quotes. One major consideration is the annual salary. The right thumb rule is that you need to be insured for approximately ten times your annual salary. For example, if you are earning $60,000 in a year, then the policy amount must be approximately $600,000. After you have decided on the policy amount, you need to find a good insurance company that gives you good and cheap term life insure quotes.

Usually it's the level term life insurance policy that is the most popular among all the various types of term insurance policies. In this case the premium amount remains the same throughout the selected tenure of the term. To get the insurance quotes is quite simple these days, you no more need to stand and wait for it in long queues. These quotes are easily available at just a click in just few minutes because most of the insurance companies offer online services.

Some examples of life insurance are renewable term life insurances, convertible insurance and decreasing life insurance. In the case of a renewal term life insurances, you have the option to get the term renewed at the due date. It is not difficult to get the renewal done neither it is a pestering process nor it takes too much of time. In the case of the convertible term insurances you can get the life insurance policy converted to a permanent insurance policy. In case of the decreasing term insurances as per the terms the death benefit reduces.

Medical examinations, medical tests, it's all become a past now when it comes to pursuing a term insurance. Today most of the companies offer these insurance policies without any medical test but you may be subjected to several questions related to your family and health. These days it is very easy and simple to get a term life insure policy, at times you apply for the policy in the morning and you get it by evening.

Because most of the processes are computerized these days the processing gets faster. Customers want to cut down the time requirement and don't want to wait for long intervals in the process of getting a insurance policy. Things have also become easy in case of the medical examination that is involved for the procurement of a term insurance policy because when required the licensed medical professional can come at your house at your convenient time and do the medical examination at your house itself.

Some medical examinations that are to be done for the insurance policies are:

* A urine sample
* A blood test
* Weight and height
* Family history
* Blood pressure

Due to various reasons like economic slowdown and increased competition, the term life insurance rates have dropped down significantly in the recent years. You can also seek the help of an insurance agent who would give you a good deal with the term life insure rates. It is always good to go for an independent insurance agent for all the requirements of your term life insurance. Independent insurance agents give you the option to choose from various insurance companies the one that offers you the cheapest and best insurance rates and premiums.

When choosing a insurance agent you need to check if he or she is trustworthy. A good insurance agent must have a lot of experience in the field of term life insure and he or she must have access to a wide selection of insurance policies. When you zero down on a insurance agent, make sure that you stick to him or her for all other insurance needs.

Article Source: http://EzineArticles.com/?expert=David_Livingston

Why Buy Life Insurance?

2009-08-18T23:53:00.000-07:00

It is staggering how many individuals do not have life insurance today. This is because they do not realize the importance of having life insurance. Then again, a lot of people have the "I will do it tomorrow" mentality because they do not think anything is going to happen to them anytime soon. The truth is that tomorrow is not guaranteed, but the continuation of your family and your debts is.

So why buy life insurance?

First of all, what is it?

Life insurance is what pays your expenses after you die. Just imagine not having any sort of coverage that will pay off your expenses. Who is responsible for these things? The answer to that question is YOUR FAMILY.

It is your family's responsibility to make and pay for funeral expenses. It is their responsibility to make sure all of your debts are paid off. It is also their responsibility to make sure they can fend for themselves when you are gone. Basically, it is a rather sticky situation.

Do this for your family

So if you do not have life insurance, you are sticking your family with tens of thousands of dollars in expenses. When they have to pay these costs, they may have to sell the house, they may lose the house, or they may lose cars. In other words, your family could lose everything in the event of your death.

So here is what life insurance can do for your family:

Provides them with enough income to make sure they are financially secure while getting life in order.

Funeral, burial, probate, and any administrative costs are paid for. Also paid for are any medical expenses that are not covered by medical insurance.

You do not have to worry about your family having to liquidate assets or take a smaller inheritance because they are unable to pay any federal or state death taxes. Life insurance takes care of this as well.

If you have a charity that you are passionate about, you can make a considerable contribution to that charity.

A life insurance policy can also be a type of savings for you. When you invest in a policy such as a whole life policy, it accumulates cash value over the years. You can choose to borrow from this when you need the money or you can make the decision for the cash value to pay for your premium so that you do not have to worry about it.

How do you find life insurance?

If you are not sure where to start, you have all sorts of options. There are companies offering quote forms on their websites. This enables you to see which insurance company is the best investment for you. You may even go as far as comparing both online and offline companies by picking up the phone and checking locally.

Nevertheless, you do not have to choose a company locally. You can choose a company that is anywhere in the U.S. The important factor here is the coverage that you receive and the premium that you pay for that coverage. Compare, compare, compare and find the policy that fits your needs.

Article Source: http://EzineArticles.com/?expert=Jane_B._Reynolds

Life Insurance For Smokers - Getting the Best Rate

2009-05-23T07:14:00.003-07:00

Just about everyone knows that smokers are charged more for life insurance. They will charge you even if you smoke one cigarette a year. Insurance companies are concerned that smoking will affect your life expectancy, and cause you to develop any one of many fatal illnesses. They want to be sure that you are not going to die before they can get enough money to cover your policy value.

Insurance companies classify even smokers differently depending on how much you smoke. They are classified as heavy or moderate smokers, and people who smoke moderately,often have lower premiums that people who smoke heavily. The insurance company decides if they classify based on amount you smoke, or just that you smoke at all.

If you are a smoker, and otherwise healthy, you will most likely fall into the preferred category. If you have recently quit smoking, you may fall into the non-smokers' category, depending on the company and what their rules are. Some companies offer graduated scales, with rates that go down, the longer a person remains free of tobacco. You may be able to reach non-smoking status within one year.

Remember that shopping around for the best policy is the most assured way of getting the best rate on a policy. One company may consider you a heavy smoker, and another might think of you as a moderate smoker, and give you lower rates.

Getting the lowest rate with the best coverage is important to all of us, particularly smokers, since their rates are always higher that nonsmokers rates. Looking at different companies, and the rates they offer, is the best way to find one that is right for you. You can get a good rate on insurance; it is just a matter of looking in the right place, and asking the right questions.

Article Source: http://EzineArticles.com/?expert=Mark_Daoust

Low Cost Life Insurance - How to Find Low Cost Life Insurance

2009-05-23T07:14:00.001-07:00

Low Cost Life Insurance Rates have actually been falling over the past few years. This is great news if you are about to take out a plan or already have one that you wish to review. You might just find exactly the same cover at lower costs somewhere else.

Here is a batch of little known insider secrets to finding a lower cost policy and save yourself money.

Always purchase your low cost life insurance from a company that competes on their low price. Recent trends have seen many insurance companies relying on their sales agents to try and sell as many policies as they possibly can, but there are also many companies out there that compete based on their low cost life insurance rate.

There are savings to be made if you research well amongst the top companies that are battling to offer the best policies online.

Always choose a plan that asks you to answer medical questions and do actually agree to a medical exam if they ask you for one. Although it is possible to by pass taking a medical by buying an "instant issue" policy, you will end up paying very high premiums. Also, the possibility of qualifying for acceptance of such a scheme is relatively small so they really are not worth the hassle.

Compare policy rates before you buy.

Level Term Assurance is the cheapest available plan. With term assurance you pay premiums for a certain period of time. Hence the name. The longer that period is then the higher the monthly premium. The reason for this is that once the company issues the plan it cannot withdraw it later. This is regardless of the state of your health as you get older.

Level Term Assurance policy premiums are generally much cheaper than any type of plan that builds up savings or investment element. Those schemes are called whole of life, endowment or universal plans. Avoid them like the plague unless you are rich. The premiums might start out low but they skyrocket in ten years time when they are "reviewed" as the companies call it. They are not the way to find low cost life insurance.

A Level Term Assurance policy does exactly what you expect it to do by financially taking care of your beneficiaries if you die. Quite simply, your family will receive a death benefit if you die during the schemes period of running. They offer very good value especially if you are young and in good health.

These days you can instantly view a comparison of low cost life insurance rates from the best companies online. You can then easily apply for a low cost life insurance policy from the company with the best life insurance rates.

Article Source: http://EzineArticles.com/?expert=John_Francis_Higgins

Compare Term Life Insurance and Save Money!

2009-05-23T07:12:00.000-07:00

You can reduce your monthly outgoings if you compare term life insurance. People check the costs of all sorts of other things so it makes sense to keep an eye on this one, too. After all, any savings can add up to a substantial amount over a period of time. Here you will learn how to quickly compare term life insurance and still keep the cover that you need

Rule 1 - know your term assurance types. One of the biggest savings that you can make is by simply choosing or switching to the right plan. Make sure you choose wisely and take advice if you are uncertain.

You can opt for a simple life insurance if you are running on a budget. Term Assurance provides death benefits for a specific period. This period may be one or more years but the benefits are paid only in the event of death of the insured person during the length of the plan - no investment amount is built up or repaid at any time.

Some types of this type of policy can be "renewed" for more than one additional term. However, if you do so, your premiums will increase every time that you renew because you will be older, so tread carefully. Most people are best off avoiding renewable policies.

There are five types of this type of plan:

1. Level term assurance: Ensures that your premiums will not go higher whilst the plan runs (often between 5 and 20 years) of your policy. This is the most usual one for providing the family with life cover and is your starting point. Use this, together with number 2. below to provide excellent life cover for your family. You can easily compare term life insurance from different companies when it is set up on this basis.

2. Decreasing term insurance: Your premiums stay level throughout while the life cover decreases each year. Such policies are usually used to cover mortgages and loans. Use 1, above, to provide cash to help the family survive without your income and this plan to pay off the mortgage.

3. Annual renewable: Allows you to renew your term insurance every year until you reach a specific age, usually, 65. Most often used in business, but pretty rare these days. Level term assurance is so cheap it has less use.

4. Renewable: The insured person can automatically renew the policy, even their health condition has worsened, at the end of the term of the policy. Usually runs in periods of 5-20 years. It is very similar to the annual renewable policy but is normally for a longer time period. It is much more difficult to compare term life insurance set up on this and the following basis because benefits differ from policy to policy.

5. Convertible: Allows the insured person to convert their term insurance into any other type of life insurance policy that the company offers. Quite rare these days especially as the option to convert costs quite a lot.

Rule 2: Find a decent website to compare term life insurance. The old ones were designed years ago and ask too many questions. Some even make you wait for the life insurance quote by email or telephone. The new style ones will compare term life insurance in a few seconds.

Article Source: http://EzineArticles.com/?expert=John_Francis_Higgins

A Warning to Women About Life Insurance - Your Husband is in No Rush to Buy!

2009-05-09T22:59:00.002-07:00

Attention married women. I write this article to convince you that if you do not find a way to convince your husband to purchase life insurance, you may be waiting a long time before he wants to buy it. The odds are that when he is ready, it will be extremely costly because he will have been told by someone in the medical profession he has some type of condition which will finally convince him that he is not immortal. Either the medical condition or his age will make the premium much higher than it would be if he simply purchases the coverage now.

After 33 years in the insurance business, 70 per cent of my clients are women with an average age of 42. If you ask any life insurance agent what per cent of their clients are women, I would be willing to bet most have the same ratio of men to women. Men simply refuse to think about their mortality. I can think of no other reason why men have such a difficult time discussing the topic of life insurance.

One sad man I spoke with many years ago was age 27 with 5 children. He not only was disinterested in life insurance because "the government would take care of his children"; but said no one could stop him from working, so he had no need for disability insurance.

To make a long story short, three months after I tried to set the appointment, he was injured in an auto accident which prevented him from working for two years. When he finally returned to work, he needed two jobs to recoup all of his losses. Shortly thereafter, he was killed in another auto accident while working his second job.

I am certain any women reading the above feels her heart going out to the wife and children of this man and how they must have suffered. Read those words to your husband and his first thoughts are more likely to be "Don't worry, that will never happen to me".

So, the question becomes "how do you convince your husband he needs some (or more) life insurance.

Here are a few suggestions which may help.

Do not nag or insist. Your husband will probably think you want him dead. He will say it as a joke, but it will be what he is thinking.

Discover what motivates your husband. I am not talking sex, but then again, if it works!... Would discussing his love for you and your children motivate him? Some are motivated by greed so discuss how whole life will force money aside for the future.

Tell him you made a "tentative" appointment with a life insurance agent on a night you know he will be home.

When all else fails, do all of the research by yourself. Meet with a life insurance professional and discuss your options. You only need your husband to be available for a physical at your home and to sign the paper work agreeing to be insured. The physical will not be on the night you meet with the agent.

However you convince your spouse to agree, get him to agree. Use this time to renew your relationship and love. Start dreaming about where you and he want to be in 20 years from now. Then discuss how life insurance will guarantee that at least one of you will live the dream for both of you.

Article Source: http://EzineArticles.com/?expert=Joseph_Chappine

HOME::Insurance/Life-Annuities X Is Life Insurance Needed? By Christina Pomoni Christina Pomoni Christina Pomoni Level: Basic Like most of the

2009-05-09T22:59:00.001-07:00

No one has made a contract with God that they won't get sick. Most people are aware that life can be unfair and that being financially comfortable today doesn't guarantee being comfortable in the future. It may all come as a result of a sudden death. Anything is possible for anyone, but what about the insecurity that will knock on your door and will deprive you from your goals and dreams?

It is a fact that some people think they don't need life insurance because they assume enough money by the time a death occurs in the family. However, this assumes either that the time of death is predetermined or that the family will have sufficient funds at any given time to pay for any expenses related to an unexpected death. The first challenge that arises from this perspective is related to the cost of life, which increases from year to year while income levels remain stable. Therefore, a family that depends on job income to live will certainly not be able to afford the expenses of a sudden death.

Life insurance provides enough coverage and assists a family to anticipate financial burdens should a death occurs in the household. Although, people don't like to think about dying, loved ones should be protected and their financial future has to be taken care of.

Life insurance offers security and protection. There are people that believe that the monthly cost of life insurance is excessive and that premiums are paid for no reason if the unexpected event never occurs. It is a fact that insurance money seems wasted if insurance policy is never used. It is also true that it may exceed the cost of life thus burdening the family's budget even more. However, there is no guarantee that this will be the case. Death is inevitable and unpredictable. Wouldn't it be better for the family to have a large sum of money at hand?

Life insurance works for single people as well. A low-risk life insurance would cover funeral costs; at the same time you can invest the premiums you would have paid should you had a high-risk insurance. In that sense, life insurance is a wealth optimizing tool. It can provide liquidity to pay off personal or business loans or good returns on investment, which could be a beneficial way for saving necessary funds for retirement years.

If still you are not convinced that we need life insurance ask yourself simple questions. What immediate financial expenses will your family face upon your death? How long would your dependents need financial support? How much would you want to leave behind to fund your children's education? Would you want your family to be financially doomed because of your sudden death?

Article Source: http://EzineArticles.com/?expert=Christina_Pomoni

More Weight Higher Rate in Life Insurance

2009-05-09T22:58:00.000-07:00

If you are planning to finally have your life insurance and you noticed that you gained just a little weight, then you might still have greater chances of having a normal premium rate. But if you think that you have gone overweight and it becomes so noticeable, you have to prepare your budget because you might have an insurance rate that will higher than usual.

According to consultants on life insurance, the probability of being denied for this insurance policy when you are overweight or obese is most likely. This is true even if the person is just overweight having no related health problems or diseases. If ever they will have the ability to be granted the life plan that they are purchasing, it will be definite that they will be charged for higher premium rates. A person who has this condition will usually pay an amount that is 15 to 20 per cent higher compared to a person that is fit looking.

It is true that the insurance companies are applying the principle that says that higher the weight above normal, the higher the premiums will also be. This is because they believe that being overweight or obese is unhealthy and this people are more prone to different types of diseases. Medically, this is acceptable and that is a fact that we need to accept. So if you are applying for a life insurance, make sure that you are healthy and fit to have the ideal life insurance rates that you want.

Article Source: http://EzineArticles.com/?expert=Florida_Dy

Why You Want to Get the Truth About Whole Life Insurance

2009-04-04T03:16:00.003-07:00

Whether you are looking at the different whole life insurance policies available on a number of internet websites, or you are going to see companies in their offices in town, you will want to get the full amount of information that they are offering on what it is and how one of their policies can be right for you.

Making the decision to invest in a whole life insurance policy will be a good decision, as you will want to make a conscious effort in choosing the right one if you are paying in thousands over the course of a few years. A generic policy just won't be good for you, and you will want to take out a policy that offers some things that will meet your persona.

There many be some terms that you don't quite understand in the whole life insurance policy literature, and this is quite understandable, at the end of the day you're not an expert. So, you should speak to some of the experts and ask them what the different conditions are and how they can help you in your own particular situation.

Everyone is different and so will need and want a different plan from the next person. Therefore, it will be important for you to get a detailed explanation of what goes into the plan, what you get and what you have to give, and what the plan will cover you for - as many people become confused with whole life insurance policies.

Information is abundant on the internet, whether on the whole life insurance companies web pages or on different comparison sites that will supply you with information on the different types of whole life policies available, what they have included, and who supplies the best value one. This means that you have some information before you that you can read and digest to make sure you are choosing the right one.

Explanations on company websites are generally quite good. You should navigate to the area that has more information on whole life insurance policies as this will provide you with the necessary information to ensure that you are buying the best policy, not only for you, but also for you bank balance! Many people tend to print off this information so that they can compare different companies and also read the content without looking at a computer screen for a long time.

You could, of course, choose to visit the local office of the insurance company and choose to look at the information in print, this also has the added benefit that you would be able to discuss with someone about the different aspects that are contained within their whole life policies.

Making sure that you have all of the relevant information on the different policies that the company may have will mean that you will be able to take out a whole life insurance policy without having any uncertainties hanging over it. Being confident and sure that you have made the right information will be clear here.

You need all of this information because should you need to discuss the policy with the company at a later date then you will be able to have a thorough understanding of the policy and what you agreed to in the first place.

Article Source: http://EzineArticles.com/?expert=Jack_Dentwood

Tips on Finding the Best Whole Life Insurance Quotes

2009-04-04T03:16:00.001-07:00

You may be one of the many people who have forgotten or genuinely don't know that they should have a whole life insurance policy to cover them in case of their death. It will then pay off all of their debts and expenses and then leave their family with an amount of cash to help with further financial worries.

You will want to take care of your family and you will also want to make sure that you have the opportunity to understand how much this type of policy will help your family after you have gone. When you are shopping for life insurance, you should make sure that you know what benefits are included for the premium that you are paying out.

Together with understanding what is included within the terms of the whole life policy, you should be certain to understand and know what the best rate for whole life insurance will be. It will be more expensive than term life insurance, but it will also be worth the extra cost that you are paying out for it.

You are most likely aware that whole life insurance is a little more costly than term life insurance, but that shouldn't stop you from looking and knowing that you could secure yourself a reasonable premium price for cover.

You should shop around for a deal, as you will probably be able to get one of the best deals on a whole life insurance policy from a number of different companies. When you do have a look at the different prices that are out there your probably will be surprised with the amount that you could be saving if you go with one insurer and not another.

One of the very first things that you will want to do is to recognize that there are a number of different insurance companies that offer whole life insurance cover to help you get a policy that is right for you. Therefore, you will need to start calling these different companies for their prices and terms of their whole life insurance policies.

After you have made all of these calls, and made sure that you have noted down the different terms that they include, to see if any of the companies' policies fit with your needs, you should take your time to review what you have noted. You should also take a look at the quotes that you have recorded and see which would be the best fr your monthly budget.

In the end, if you have doesn't enough thorough research and made sure that you have received some quotes from the top insurers in the country, then you will make sure that you will then get a whole life policy that will be good for both you and your family.

Article Source: http://EzineArticles.com/?expert=Jack_Dentwood

How You Can Find Perfect Whole Life Insurance Policies

2009-04-04T03:15:00.000-07:00

Many people will not take out any type of life insurance policy because they consider it a waste of money, and this may be the case with you. However, what you should do is think about taking out a whole life insurance policy as this type of policy will mean that not only will your funeral costs be taken care of upon your death, but your family will also receive some financial payout too.

You should think about the possibility of the worst happening and so, you should look to take out a whole life insurance policy and be able to be confident that your family will be looked after if anything happens to you. When you look at the different companies on the market and see the different offers that they have, you should consider looking into variable whole life insurance, as this type of insurance offers the possibility for you to invest some of your money to ensure that your family will receive some funds when you pass on.

Variable whole life insurance does exist in the market, but many different life insurance companies will want you to ask for the actual policy. Also, it will depend on the different company as to what is available. You should always shop smart when you go out on the market. It doesn't matter if you are going to an office or whether you are going to shop online for a variable whole life policy. The main thing that you need to be concerned with is that you are seeing the number of additional benefits that can be gained from having this type of policy.

You should always be concerned with getting the best terms of a whole life policy, but you should be equally concerned with getting a good rate from a company; therefore, you should consider shopping around for one of those great deals. When you go out to the market and complete your research for the different companies that are offering variable whole life insurance policies, you will notice that a number of companies will be selling their policies at a considerably higher rate than others. This means that there will be much competition, but more importantly, there will be a number of different added extras to the differing policies.

It is your responsibility to conduct proper research into the different companies offering variable whole life insurance, as you will need to ensure that the companies you are researching are offering a good deal for you. Recognizing where a good deal is actually a good deal will come once you have looked at the different policies and prices in the market.

Article Source: http://EzineArticles.com/?expert=Jack_Dentwood

Non-Disclosure - How it Could Stop Your Policy Paying Out

2009-03-16T00:38:00.004-07:00

When you complete an application for insurance you will be asked questions relating to the risk that you're asking the insurer to insure you against. That only makes good sense really, doesn't it? You will be asked to disclose any material fact that could affect the risk that you're asking the insurer to cover. This is based on the long-established principle of English law that the contract between insurer and insured is one based on the principle of something called uberrimae fidae, which is a Latin expression meaning "uttermost good faith", under which the insured must disclose to the insurer any matter that may possibly affect the risk of loss. Moreover, that obligation extends to all material information, whether asked for or not.

This puts the onus on you, as the insured person, to disclose to an insurer anything at all that could affect the risk you're asking him to insure against. Even more critically, any non-disclosure by you of any material information or fact can allow the insurer to declare the contract null and avoid in law. In that case, nothing is paid out in the event of a claim under the policy you thought you had.

Material facts

As you can readily appreciate, this principle has a pretty significant bearing on any life assurance policy you might want to take out. What are the "material facts" that might possibly affect the risk of you dying within the term of the proposed life cover? What are the material facts from your medical history or from your lifestyle choices? It's difficult, isn't it? Especially when you remember that the onus is on you to decide what is material, whether the insurer asks a specific question about it or not.

The question gets even more complicated when you're also thinking of taking out critical illness insurance. Just how much of your medical history and also how much of your lifestyle should you disclose? The insurer certainly won't go through the expense of scouring your medical records for you (though he will probably ask for access to those records should the need arise at some future date). The burden is on you and non-disclosure of anything that the insurer later determines to be non-disclosure of a material fact might be enough to enable him to reject a claim under the policy.

Five things to remember

Whenever you're completing a proposal for life insurance or critical illness cover, it may be helpful to pay particular attention to the main types of question which insurers themselves have complained that people too often fail to address. The following are the five principal conditions that insurance companies have identified as being insufficiently disclosed by people seeking life insurance or critical illness cover:

- Treatment (which will include tests and investigations) for multiple sclerosis, affected vision, numbness or disorientation;
- Any current medication or treatment (or tests and investigations which might lead to medication or treatment);
- Whether or not you are a smoker or drinker of alcohol and whether you have been advised to reduce your use of either tobacco or alcohol;
- Whether you have suffered any depressive illness; and
- Whether you have received any medical treatment at all during the past year.

If a claim is rejected because of a non-disclosure, the usual recourse of insurance companies is to return to the customer all premiums that have been paid and so put both the insurers and the customer in the same position as they were before the insurance policy was issued. This will be precious little comfort to you, the intended insured, however, because by then it will be too late.

Remember that:

- The onus of disclosure is on you, the policy holder;
- Material facts and information must be disclosed, whether or not the insurer specifically asks about them;
- Failure to disclose any material fact or information can invalidate the policy and lead to claims under it being rejected by the insurer.

Article Source: http://EzineArticles.com/?expert=Kate_Tee

Make Your Life Insurance Fit For Your Needs

2009-03-16T00:38:00.003-07:00

Once you have a family or assume responsibility for another person's welfare, you need to think about life assurance. This doesn't just apply to people in employment, but to everyone in the position of 'head of the family'.

There are many different policies out there and you need to find one that suits all your requirements. So first you need to do the research. The first thing to consider is whether to go for one policy to cover all eventualities, or whether you would be better off with two or more policies to cover separate categories, which may be cheaper.

Next decision - do you figure it all out yourself or do you take advice from someone qualified to help. There are Independent Financial Advisors (IFAs) and brokers who can advise you and sell policies, although some brokers only deal with certain companies' products.

If you go it alone you can deal with an insurance company over the phone or via the internet, which is often the cheapest method. Brokers Online has a finance forum called 'Finance Talk' where you should get useful information about what cover you need to help you make your mind up.

The cost for any policy varies according to different factors, among them your sex, your age and smoking habits. The younger you are when you start a life policy the better as premiums are lower than for an older person. Women are usually charged less than men also.

One example shows a level-term policy for 100,000 pounds cover for a non-smoking 29-year old woman costing 8.07 pounds a month, and for a man 9.68 pounds. But let them age another ten years before taking out the policy and the woman pays 12.44 pounds and the man 15.55 pounds.

Smokers get hit in the wallet harder. Not only are the price of cigarettes prohibitive, but insurance premiums are higher as well. That's why you really need to shop around. At age 39 our example male smoker could pay 45.50 pounds a month for the same type of policy as mentioned above and that is a big increase. But another company could charge as little as 23.50 pounds, a saving of 22 pounds a month. Extrapolate that figure and you could be saving 264 pounds a year, or 6,600 pounds over 25 years - and that can pay for an awful lot of cancer-sticks!

The state of your health will have a bearing on the cost of your life insurance and you need to be upfront about any medical problems or risk a later claim being denied. If you have a particular condition cover may be harder to find but you should still be able to purchase a policy. A specialist broker that caters for people with health problems is The Insurance Surgery, so give them a call.

Another idea is to approach the charity associated with your condition for advice. Cancer sufferers can get information from Cancer Research UK, for example. A word of warning - be careful not to let any existing life cover lapse while you are looking around for a new policy.

Article Source: http://EzineArticles.com/?expert=Michael_Challiner

How to Work Out How Much Life Cover You Need

2009-03-16T00:38:00.001-07:00

How long is a piece of string? It's a bit like asking how much life insurance you need. The answer can be almost any number and will depend on your own personal circumstances, the needs of your family and dependents, and, quite simply, how much you can afford in monthly life insurance premiums. No one size fits all.

Nevertheless, there are any number of online calculators, into which you key some basic details about yourself and your family, and which then help you to calculate a reasonably good ballpark figure. These calculators will also help to ensure that you don't overlook a particular element of expenditure that should be covered in your life insurance provision.

Mortgage - probably your biggest single current outgoing is your mortgage repayment. A mortgage is something you're unlikely to want your loved ones to have to assume in the event of your early death and you've probably already made some provision for it to be repaid in such an event. Most lenders are likely to have requested some form of life security on the loan in any case. But now is the time to check that you have sufficient cover against both capital and interest repayments on the mortgage.

Other loans - the same goes, of course, for other loans you may have taken out and which are not already covered by some form of life insurance. Once again, you are likely to want to ensure that your family is not left with large debts to pay off in the event of your death.

Childcare - if you have a young family, it's not just your role as a breadwinner that is going to be missed. You will want to consider all the many unpaid responsibilities you currently perform as a parent or guardian and whether alternative, additional childcare arrangements might need to be made in the event of your death. Just how much cover is likely to be needed and for what period of time, will of course depend on the number and ages of any children.

Education expenses - once again, you will probably want the peace of mind that your children will be able to continue at the same schools or be able to complete their university education in the event of your death. School fees and university expenses should therefore be included in your list of provisions to be made.

Income replacement - if you were no longer there as principal breadwinner, how much money would your dependents need to continue in the enjoyment of a lifestyle and standard of living that you want for them? This is the most difficult calculation of all, of course, since it involves taking your current salary and attempting to project into the future the family's likely needs. The most common "rule of thumb" in this instance is to provide a figure that is ten times your present salary. Depending on your personal circumstances, the number and ages of any of your children for instance and the way you envisage the proceeds being used, however, there may be an argument for increasing this provision up to 25 times your annual salary.

To work out how much life cover you need:

• Take into account all your current financial commitments and those you will continue to have in the future
• There is no hard and fast rule about the amount of money it is appropriate to leave behind, but there are a number of major headings of expenditure that you will probably want to take into account
• Remember that there are a number of online calculators that should help you to arrive at a ballpark figure for your likely needs and help you to ensure that none of the major headings of expenditure are overlooked.

Article Source: http://EzineArticles.com/?expert=Kate_Tee

Searching For Life Cover Deals Online

2009-01-30T04:44:00.001-08:00

When looking for the best life cover deals you can do so from the comfort of your own home online. There are specialist brokers you can use to not only compare the premiums but also the key facts of the cover you are considering taking out. If you are the main wage earner in the family then life insurance should be considered as it would provide your loved ones with some financial security.

One of the cheapest forms of taking out life insurance is with term life assurance. You would insure your life for a certain amount over a certain period of time. If you as the policyholder were to pass away during the term of the policy your loved ones would receive the sum of money insured. If you outlive the policy it would simply end and there would be no payout. This is one of the cheapest and easiest ways of leaving your family with some security.

You would have to decide on the amount you wanted to insure when applying for quotes for life cover deals and this would affect how much you would have to pay for the premiums for the insurance. Factors to take into account when deciding how much to protect your life for include any outstanding mortgage you owe, if you have any children and whether you are the sole income earner. If you are then you would have to take such things into account as childminder costs if your partner had to look for work. You would also have to take into account the rise in inflation when deciding how much to insure. As a rough guide you could multiply your annual income by between 10 and 20 or more times and this would give you an idea of how much you could insure your life for.

If you wanted a policy that would guarantee a payment for your loved ones when you passed away whenever that may be, then you could consider taking out whole of life insurance. You would again insure your life for a certain sum and as long as you continued paying the premiums for the policy payout would be guaranteed. This form of life insurance is dearer than taking out term life.

If you are worried how your loved ones would manage to maintain the mortgage repayments then you could consider taking decreasing term assurance. You would insure your life for the outstanding balance on your mortgage and for the term left on the mortgage. For example if your mortgage was £100,000 with 20 years to repay then this is what you would insure your life for. As you payoff the mortgage the amount that would payout on your life insurance would decrease along with the mortgage balance. If you were alive by the time the mortgage was paid off then there would be no payout.

All forms of life cover deals come with the key facts and these will tell you the details of the insurance policy you have chosen to take out. It is essential that you check these over before taking on the policy so that you know the terms of the insurance you are taking out.

Article Source: http://EzineArticles.com/?expert=David_H_Thomson

Find a Life Insurance Provider Online

2009-01-30T04:43:00.000-08:00

Gone are the days when you had to search manually for a life insurance provider through the yellow pages or on the high street. Now you can search with some of the top UK insurance providers online without even having to leave your home. The beauty of shopping for and buying life insurance online is that you can not only compare the cost of insurance but also take your time comparing the key facts of the policy you are considering.

A life insurance provider online will usually offer cheaper premiums for cover because they have no overheads like high street providers have so they can pass the savings onto you. A specialist insurance broker could help you to save a great deal on the cost of your life insurance once you have decided on the type of insurance most suitable.

One of the cheapest ways of protecting your life is by taking out term life insurance. You choose the amount of life insurance you need and how many years you want to take out the policy over. If you were to pass away during this time then your loved ones would be paid the lump sum you chose to protect. If you should outlive the policy then it would just cease to exist and there would be no payout.

If you were looking for a guaranteed payout on your life insurance then you could choose to take out whole of life assurance. Again you would work out how much life insurance you needed and then pay the premiums. However unlike term life insurance while ever you continue to pay the premiums your loved one would get a payout no matter when you passed away. This is one of the dearest types of life insurance because there would be a guaranteed payment on the policy.

If you have a mortgage to repay and want to ensure that the amount left outstanding would be paid off upon your death then you could choose decreasing term assurance. You would insure the amount left outstanding on your mortgage and insure your life for the term left on the mortgage. If you were to pass away during this period of time your loved ones would get a lump sum payment which could be used to pay off the mortgage.

A life insurance provider will take many different factors into account when deciding how much the premiums would be for life cover. Your age is one of the main deciding factors and the younger you are when you take out life insurance the cheaper the premiums will be. Whether you have any ongoing illnesses would also be taken into account as would your family history. The provider will also want to look into your background history to check to see if you smoke and how many units of alcohol you drink each week. Your height and weight will also be deciding factors as to how much the premiums for life insurance will be. The fitter and healthier you are the cheaper you would be able to secure life insurance.

Article Source: http://EzineArticles.com/?expert=David_H_Thomson

Life Insurance - Buy When You Can - Not When You Need

2009-01-23T03:39:00.001-08:00

Occasionally we read comments people write in various online forums and blogs, complaining they are being rejected by their life insurers, following either deterioration in their health status, or after they have been diagnosed with some illness.

Most of these people are right: life insurers evaluate risks professionally, and regard the medical state of a person applying for cover as a key factor in evaluating the life expectancy, based mainly on their own statistics and their reinsurers restrictions.

These two colliding truths cannot be solved by a frustrated correspondence over the web, and though people can have the sympathy, empathy and consent of other readers, they are in most of the cases beyond the non-return point, as far as the consideration of insurers to accept them into cover.

The solution is, or better should be: buy when you can, not when you need.

Many times we meet with insurance marketing personnel: insurance agents and brokers, direct insurers personnel. Most of them have the same complaint: people that are not in need, do not buy insurance willingly.

It is a human instinct to decline thoughts about risks, illnesses, disasters. We tend to think: It will not happen to me! This motto is the danger of one protection against future risks.

When you are younger, healthy and able, purchasing protection against rainy days is easy, cheap and worthwhile. Try doing the same at older age, when you have already some medical difficulties, and the daily expenses demands any penny you make, and it is difficult, much more expensive, and sometime even impossible.

It is quite rare that medical problems, that are preventing you from getting insurance, are found in a newly born child. Every day we postpone getting the insurance protection after that, is a risk we should consider.

So what can one do? Buy when you can not when you need.

And what about those thousands and millions who did not buy it in time? Well, for some of them there is no insurance solution, but for most of them, there are some solutions. They are more expensive, but not necessarily uneasy to get. Both life and travel insurance can be obtained online with some insurers.

Article Source: http://EzineArticles.com/?expert=Les_Blake

Low Cost Life Insurance - 7 Ways to Cut Expenses

2009-01-23T03:38:00.000-08:00

1. Don't buy life insurance if you don't need it.

The purpose of life insurance is to replace your income if you die before accumulating sufficient assets to make life insurance unnecessary. So, if you have someone depending on you to earn a certain amount of income during a period of time, life insurance is the way to go. On the other hand, if you are single with no dependents or retired and living on investments or retirement income, you probably do not need life insurance.

2. Buy cheap term life insurance.

There are two kinds of policies: Term and whole life (or permanent or cash value). Term is pure insurance for a set number of years, 10, 15, 20, or 30 and it only pays a death benefit. Whole life, on the other hand, may provide interest and dividends. Since there are no dividends or interest involved, term insurance is generally less expensive than whole life.

3. Get low cost group insurance through your employer.

Some employers offer free life insurance as an employee benefit. In some cases, the employer may offer a designated amount free and the employee has the option of purchasing additional coverage. Since this is group coverage, the premiums are usually real low and it's a good deal for the employee.

4. Check your credit score before applying.

If there are problems, clear them up before applying for insurance. Otherwise, you could wind up either being denied coverage or charged a higher premium.

5. Quit smoking.

In addition to saving $1800.00 per year (a pack per day @ $5/pack x 365 days), you will also save on life insurance premiums. Most companies charge twice as much as to insure a smoker as they do a nonsmoker.

6. Make fewer premium payments.

The fewer premium payments you make in a year, the lower your annual premium. Some companies add as much as 20% to the annual premium if you make monthly payments. You can reduce the total premium by paying quarterly, semiannually or annually.

7. Get free life insurance quotes.

There are over 1500 life insurance companies. Premiums vary by hundreds of dollars for the same amount of coverage. For example, for $100,000 worth of term life insurance for a 35- year-old male, I recently found annual premiums that ranged from $886 to $2194.

Article Source: http://EzineArticles.com/?expert=Vernon_L_Williams

Why Would You Want to Receive Instant Life Quotes Online?

2009-01-23T03:37:00.000-08:00

Life insurance is something that everyone should have, or at least look into getting. It is a safe and reliable thing to have in the event that you pass away. Prior to deciding on one particular type of life insurance, it is always best to receive quotes first. This allows you to find the best policy for you within your price range. There are a few different ways you can receive instant life quotes.

When pursuing life insurance, you can talk to an insurance company, talk to a broker or agent of some sort, or search online. Each has its benefits and downfalls making it all the more important you take the time to research on your own. Do not be afraid to talk to friends and family for advice.

However, more and more people are deciding that receiving instant life quotes online is the best route. There are numerous benefits to searching for life quotes online over any other options available.

The first reason you would want to get quotes online is because of the wide range of quotes you can receive fairly quickly. As oppose to calling a plethora of different companies, you can quickly pull up different pages and have a number of different policies within minutes.

You never want to settle on a life insurance policy without comparing your options. There are far too many policies for you to choose from for you to settle on the first one you see. Take notes to help you remember which ones stood out the most for you.

The next benefit to finding quotes online is that it is free to do and from the comfort of your own home. Typically it is going to be free to receive quotes anywhere you go. But finding quotes online allows you to sit in your office and find the best policy for you in comfort.

When searching for instant life quotes online, you can look at any time of the day. This gives you the flexibility to search when you have some free time as oppose to feeling pressured to do it on your break from work or right when you get off of work. There is no rush as the internet never sleeps.

Receiving instant life quotes is a must as you look into getting life insurance for yourself. Although there are a number of routes you could take to receive quotes, looking online presents a number of benefits. It allows you to search at any time of the day from the comfort of your home while being able to quickly compare your options.

Article Source: http://EzineArticles.com/?expert=W_A_Henderson

Paid Life Insurance Quotes Vs Free Life Insurance Quotes

2009-01-08T21:38:00.001-08:00

Take some time to read this brief but useful review about paid and free life insurance quotes. This is just to help you find the best option and make the right choice for your life insurance.

Paid life insurance quote

The first and most important point has to do with money. There are some life insurance quotes that you get at fee and there are those that you will often get free of charge. The ones that are paid for are normally those which are organized by and agency on your behalf.

Here you get charged for the extensive work done, as these agencies will often provide the guarantee periods involved, waiting periods, details on the cover so you can make a well-informed decision.

Most agencies will refund you only if you decide to take out the policy through them. Otherwise you forfeit it if you change your mind or if you find a better alternative to what they offer.

Free life insurance quote

With a free life insurance quote you don't get to pay for a quote. In order to get a free quote you often need to visit the life insurance website yourself and provide some few details about yourself and then you'll get a quote instantly or in your inbox within 24 hours.

With this free life insurance quote, you can apply for as many quotes as you desire from as many different companies without paying for anything. Interestingly there are also some insurance comparison websites that enable you to compare quotes from a number of insurance companies in one place.

Article Source: http://EzineArticles.com/?expert=Mesi_Dankei

Rated Life Insurance Extras

2009-01-08T21:37:00.001-08:00

When you have decided to purchase a protecting product it is important to note what various terminologies mean, choosing to remain ignorant could potentially cost you a pretty packet when it comes to the pricing of your policy. Life insurance and all of its protecting features come with a number of excluding factors and exceptions to the 'general' rule. Finding out whether an extra premium has been added because you have been declared 'sub-prime' is essential so that; on the one hand you do not feel you are being over charged or swindled by the company and on the other hand you are comparing policies on an equal footing.

Rated premiums

If you find the premium you are paying for your life insurance policy is somewhat steep you may be paying an extra premium to cover your 'rated' status. If your premium has been rated it means that the insurance company have provided the policy for you on the basis that you pay an extra amount to accommodate for the extra risks associated with your person. This can come about because you smoke or drink above their weekly allowance for someone of your age and sex, or because you work in a particular industry. In short it is because following your application it was deemed that you were above the average risk and in order to accommodate for this the company needs to charge you extra; a 'balancing of the books' as such.

While it may be a frustration to you to discover that your risk levels are affecting the amount you pay for the benefits of life insurance coverage, the fact that you are still 'insurable' is a blessing. If you had an elevated risk level because of something more extreme you may find that companies refuse to insure you all together. With that in mind it may not be the wisest move to 'jump ship' simply because you are facing a 'rated' version of a policy. One underwriter's 'moderate risk' may be another one's 'extreme', potentially leaving you in a position that if you jump from one ship you may not have another one to receive you.

Which quote is mine?

In the era of modern technology the majority of information is exchanged in a virtual fashion. Most people source their information from websites, for some it is directly from the product provider, however many are making exhaustive use of the ever popular comparison website. Using the comparison site allows you the ability to search multiple offerings from various providers simultaneously, however the majority of these 'one size fits all' products do not provide the best fit. It is for this reason that you may still need to contact a provider to give additional information if any 'risk areas' are flagged.

It is important that people aren't scared of being "rated", or worried when a comparison site informs them they need to contact a provider directly as more information is required. Recent studies have shown that only about 12 per cent of people applying for life insurance find that their case has been "rated" and thus they will have to pay a higher premium. That leaves a huge portion (88 per cent) of customers finding that because they are of average health have few risks associated with them and thus are in a position to make a saving on their life insurance policy considering the plummeting prices within the sector.

Article Source: http://EzineArticles.com/?expert=Onome_Okwusa

Reasons Why You Should Buy Life Insurance

2008-12-16T03:51:00.003-08:00

A lot of people do not voluntarily go and purchase life insurance. It has to be through friends, relatives or family members, or a sales agent. This is probably brought by misguided thinking or limited knowledge of the reasons why you should buy life insurance. But if they can make to understand the benefits and advantages of getting insured, then they have a different opinion about it. The reasons why you should get yourself insured is enormous in terms of your financial road map. The more popular types are term life insurance and whole life.

If you ask most financial gurus and experts, they will tell you that life insurance is the cornerstone of a sound personal financial planning. This cannot be further from the truth. If you are preparing your financial road map, you better include how you will insure yourself so that your family and business is well protected. Getting insured will give the needed financial protection and security of your family and love ones as well as your business.

There are many reasons why insuring yourself would provide the necessary financial security and protection should you unexpectedly die. The first thing you should consider is your final expenses. If you are insured, the insurer will pay your final expenses such as funeral and burial cost. Any debts and loans that you have can also be paid by the insurer. Your medical expenses that are not covered by your group health insurance will also be paid. The insurer may also pay probate and other estate administration cost and your family will have to be burden by it.

The biggest reason why you should get insured is to replace the income for your family and love ones as well as your business. Your dependents will be well protected financially if you are insured. The one single most important reason is your dependent family and love ones. You can provide them with financial income replacement if you are no longer there to provide it. The last thing you would like to happen is for your family to carry the burden of paying for your final expenses. It also provides your dependents the lifestyle they are used to.

If you decide to purchase a type of permanent life insurance such as whole life, it creates a cash value. For people who somehow do not have the discipline to save some money, this can act as a force savings. The added feature of this type of insuring can help you immensely should you need money to borrow. It is little bit more expensive than a term life but the savings component is so enticing to some people.

It can also create and inheritance for your heirs even if you do not have any property or assets to pass on. Just by simply naming them as your beneficiaries if you are the policy holder can give them inheritance should you pass away. It can also pay federal death taxes and state death taxes and thus avoid your heirs to liquidate some of their assets.

So there are many reasons why you should purchase life insurance. Whether you take term life insurance or a whole life it all depends on what really suits your needs and circumstances. You have to remember too that the life insurance companies you are inquiring should be in sound financial health and a highly rank insurer. You like that these companies would still be around when the time comes. What is the point of getting insured if the company is no longer there to pay the death benefit? Thus, ensuring that these companies are highly rank and financially stable is a must when buying your family and love ones protection.

Article Source: http://EzineArticles.com/?expert=Shellaine_Enfesta

Understanding How Much Does Life Insurance Cost

2008-12-16T03:51:00.001-08:00

Far too many people do not have the understanding how much does life insurance cost. Understanding how much does it cost to get insured is not actually easy to do. There are many factors to consider if you want to know how much it will cost insuring yourself. If you want to get insured, you need to know first what type of life insurance you would like to purchase.

Then you need to determine what amount of policy coverage you would like to purchase. Life insurance quotes greatly help you to know some quotations or estimates as to how much it will cost you.

Some people will always ask for the price instead of trying to determine what type of insuring themselves. There are many types of getting insured and the most popular ones are term life insurance and whole life insurance. These two are the most sought after type of getting insured. Term life is a temporary type where you can get insured from one year to thirty years. Depending on your circumstances and needs this is the cheapest you can find on the market. You will be covered for the stipulated period of time on the policy. For term life, you will only be covered for a specified period of time.

A whole life is a permanent type of insuring yourself. Whole life will provide coverage for the whole of your life and your premiums will not change. The good thing about this is you will have the coverage for life and do not have to contend with ever increasing premiums or renewing your policy again. It is more expensive though but you are covered for life. The other advantage of this is the savings component attached to this which accumulates in value. So before you go out or go online and search for the price of insuring yourself, it would be smart to determine first the type and the amount of what you want to get insured for.

The cost of insuring yourself varies from person to person and each of their circumstances. Understanding how much does it cost you will have these types of factors to be considered. Your age and gender will always be a huge factor as well as your occupation. The older you are the higher the cost of insuring yourself. You need to also consider if you smoke or not. If you are a smoker for the last twelve months and wanted to get insured, you may find your premiums to be higher. Your occupation can affect it too if your work place environment is considered high risk.

If you are going to use life insurance quotes online, you will need to provide some personal information. Your date of birth, age, gender, complete address, email address and the amount of coverage are almost always needed to get the quotations. You should get them from amongst the many life insurance companies that are highly rank and in sound financial status. Some reputable companies do not translate into high ranking and sound financial status right away so you have to do your homework.

Once you have gathered all the quotations from amongst the many insurers, compare them and see which has the closest or the right cost or price to what you need to protect your family and love ones. After all, understanding how much does life insurance cost is not actually difficult but it just entails a lot of online searches and getting life insurance quotes to compare and have a better idea of what is the cost that best suits your needs. Understanding how much does life insurance cost and knowing the financially sound and highly rank life insurance companies can make you the right protection coverage that you are looking for.

Article Source: http://EzineArticles.com/?expert=Shellaine_Enfesta

Life Insurance - How it Works and Its Importance in Your Life

2008-11-04T03:05:00.000-08:00

What is Life insurance? The answer to this question is simple but varies depending on person to person. Simply stated it is a policy that will be the care taker and be the provider of your family when you are gone. The world that we live is very unpredictable and any unfortunate accident can ruin the future of your bright kid. Not to forget the sense of security your loved ones will know that they have to deal with just emotional loss of you and not the financial strain.

Many don't value the importance of purchasing themselves a life insurance policy, for quite a few it is just waste of time and money. But in life today getting yourself insured has become one of the cost effective way to have tax benefits. Any life insurance agreement is very easy and all you have to do as a user is to pay the agreed upon premiums and the insurance company agrees to pay a certain sum of money to your beneficiary upon your death. This agreement constitutes of three entities, one the insured; the person whose life is being insured. Second is the insurance company who take responsibility of taking care of your dependants and last is the owner.

Now many may be intrigued if I'm taking the policy then who is the owner, well marriage is one such commitment till death do us apart and hence the better half may want to take care of the partner by taking a policy in her name. However there is a clause there has to be a reason behind if the owner and insurer are not the same, they have to justify the reason to insure; otherwise the contract is no longer valid.

If something unfortunate was to happen then the insurance company needs proof of death before you can make a claim. Many companies are very stringent when it comes to frauds and you have to show a death certificate as a proof for your claim to be taken into consideration. Now all the proceeds of your policy may be taken all at once or dividing into smaller portions for the rest of your life. Imagine the love the insurer must have shared that his dependants will not have to worry about the financial part for the rest of the life. You can feel his or her love all the time in terms of the policy.

Article Source: http://EzineArticles.com/?expert=Manuel_Manolo

Life Insurance - Choosing Life Insurance Made Easy

2008-11-04T03:04:00.000-08:00

Every human should get himself an insurance policy, if you thought it is not for you then you have to wake up before it is too late. For those who don't have one already it's high time they get one for themselves. The ideal time is to start early right when you are graduating, and have taken a study loan. This way you are securing the dependants and the rest of your family a lifetime of trouble.

If you have a look at the options then there exist many life insurance policies that you can choose from in the market. Like every commodity you purchase, the spectrum lies from the most cheapest to the higher end most expensive policies. It can be an overwhelming job to decide for a first time buyer. Nowadays investors concentrate a lot on getting a participant without knowing his needs. As a buyer you should answer a few questions prior to purchasing a policy. Decide how long you want the policy to cover you. If your choice is to cover you till you die, then whole life plan is the ideal policy for you and your family.

Ask for life insurance quotes, these quotes will give a fair idea of the amount of premium you have to pay them. No two humans are the same; the premium is dependent on many factors, your age, health and number of dependants. A safer bet is to always do some ground work, when it comes to money matters you should ensure that you get a better value for your money. Get quotes from as many policy insurers you can and then sit and don't ask hastily and analyze the pros and cons of the policy.

Find out the credibility of the company; use every source possible, if it is online then all you have to do is visit its consumer review websites. Internet has changed the world we live in and has made things a lot simpler for us; hence use the power of this global search to find you the best policy. If you have any concerns feel free to talk it out with them its better that way. Know the facts about data privacy, how is the company maintaining client confidentiality matters. Ask the analysts questions, the more you ask the clearer you are about your decision to finalize the policy. Shortlist and choose a policy that works in your favor to protect your loved ones and gives them security in future. Every human wants to make sure that he made the right decision in money matters.

Article Source: http://EzineArticles.com/?expert=Manuel_Manolo

Tips For the New Life Insurance Agent - How to Speak to Your Client

2008-10-22T06:29:00.002-07:00

Life Insurance is a commodity most people take for granted until they actually need it. People are usually wary about discussing Life Insurance with an agent because they believe it is a morbid topic. They feel overwhelmed by the topic of Life Insurance in general, and the multitude of different products that are available in the insurance market today. Life insurance agents often encounter various hurdles with overcoming the doubts of their clients. Not only does this stop them from communicating with their clients more effectively, it also hampers their earning ability. Here are 5 easy ways for the new agent to converse and approach the wary client with sound planning advice, and practical knowledge.

1. Schedule An Appointment with your Client - The first step in getting to know your client is actually speaking with them. Schedule an appointment with your client. Whether its an in-person appointment or over-the-phone conversation, select a time that is convenient for you and them. Scheduling a time that is convenient for your client lets your client feel more at ease with your phone call or visit.

2. Speak With Ease - Clients will often have better rapport with agents that speak confidently and at ease with them. Many times clients observe the agent before conversing with them, and a lot of times figure out their personalities when the agent says something. Always speak confidently and with ease. After all, you are the professional, and need to adapt a more confident approach.

3. Show you Care - Ask questions about the clients past, present and future goals, to determine what insurance product would best fit their needs. Listen to clients questions and answer them confidently. See your clients perspective and discuss options with them that will bring you both eye-to-eye.

4. Know the Product - People have more confidence with an agent that knows what they're talking about. Be sure to be familiar with the products you sell. Whether it's a whole life product or term life, basic accident, or disability, have knowledge about all aspects of the product so you can discuss effectively which products fit your client best.

5. Follow up - The agent client relationship doesn't end at the delivery of the policy. A courtesy call by the agent is always appreciated! Let your client know that you are there to hear them out, even after they have received their policies in case of any problems they may have. Let them know of any other resources available to them, or of any contact numbers they can use in the future.

Maintaining a good customer/client relationship is the key to becoming a successful Insurance Agent. Not only will you have a better understanding of your clients' interests, you will also know how to service your client in the future with products that suit them. The rapport you build with your client will help foster new customer-client relationships, and will help your business grow.

Article Source: http://EzineArticles.com/?expert=Anurita_Verma

Term Return of Premium Life Insurance For Free

2008-10-22T06:29:00.001-07:00

With the state of our current economy being what it is, we are all looking for ways to save some money, right? Have you ever heard of term return of premium? It is most often referred to as "ROP" or just return of premium life insurance.

Do not get confused by the name; it is just a term life policy just like any other term policy. The one difference being that term return of premium (ROP) will give you back a huge percentage of the money you paid for the policy if you out live the term. Then you would actually have been covered with life insurance and paid next to nothing for it. In fact, there are some "A" rated carriers that return 100% of the premium. This would probably be the cheapest way of having life insurance unless you can find someone who is willing to pay for your policy for you.

The other great advantage to these (ROP) policies is the forced savings plan if you do not pass away. What is that suppose to mean? Imagine, if you will, that you purchased a 20- year, million-dollar term return of premium policy today. Now, lets say that your premium for this policy is fifty dollars a month or six hundred dollars a year. Alright, now in twenty years you are still alive and feeling great maybe even getting close to retirement. The only thing that matters is you are still alive so now you get a check from the insurance company for twelve thousand dollars. To recap you were covered for a million dollars if you passed away for twenty years of your life and it cost you nothing. This is a product that people should take a closer look at!

Warning: There are some companies that do not give as much money back as others so make sure you do your homework before you buy. When it comes to these types of products I would always suggest talking to an insurance agent first to make sure you fully understand it. You can get an instant life quote off of a website but if you are serious about a term return of premium policy you should use the contact information on the website and ask the agents questions. A professional agent should always be happy to give you as much information as they can to help you make an informed decision.

Article Source: http://EzineArticles.com/?expert=W_A_Henderson

Instant Life Quotes - Why Don't You Care?

2008-10-15T03:46:00.001-07:00

This is a question that I ask myself almost on a daily basis, Why Don't People Care about their families? Getting instant life quotes is one of the easiest and most important decisions you can make for your family and their future and yet it seem like everyone thinks they can just put it off until tomorrow...Why?

Do you know the exact day that you are going to die? Will it be today? Maybe tomorrow, next week or maybe you'll die of old age. Do you know what the cause of your death is going to be or are you just guessing or even worse yet just ignoring the fact that you are going to die. This is the question that is so frustrating to me because we all know we are going to die. There is no doubt about that fact so we should prepare ourselves and families for that day now! We should try to protect our families from the financial disaster that could occur after we are no longer able to provide for them especially when it can be as easy as an instant life insurance quote.

So instead of taking two minutes of your time to get an instant life quote you just gamble with your family's financial future. Do you realize they are called instant life quotes because they are shown instantly to you? You can even decide what life insurance company you would like to deal with as they are all shown to you at the same time with the price for your policy right next to it. Then you can decide what price range fits your budget the best and apply for it without ever even talking to an insurance agent. With all of this technology you can not say that you were just to busy to get a life insurance policy only that you truly did not care enough about your family to get one.

Now, that you have all this information about life insurance and how long it will take to get an instant life quote you should get your policy. If you still think that you do not have the time or money to get a policy then you should call a family meeting. The living room will probably work, then all you have to do is admit that you really do not care enough about them or their futures to make getting a life insurance policy a priority.

You may think that this is a pretty harsh article and maybe it is or maybe I am trying to help you except the fact that we are all going to die and you should care enough about your family to purchase a life insurance policy. Insurance agents have to tell people on a weekly basis that they are uninsurable because they waited to long and their health is now so poor that insurance companies will not insure them at all. You see after you have had that conversation enough times you would just like to smack people and wake them up so the understand you are taking a serious gamble every day you do not get an instant life quote.

Article Source: http://EzineArticles.com/?expert=W_A_Henderson

Family Life Insurance

2008-10-15T03:45:00.000-07:00

Everybody faces the risk of the unpredictable mishap, illness, accident, disability and death or some others. These unwanted tragedies may result in heavy medical bills to pay, loss of income, financial crisis and bring hardship to the family. Family life insurance is designed to provide security for families if this should happen.

New parents have more burdens and responsibilities, if you were to take care and continue to support your growing family, family life insurance is the ideal plan, and it is a financial resource that you can provide your loved ones in the event of your death.

Looking after a family is not an easy thing to do, it brings hardship, but any how everybody hopes for a sweet home. We want to keep the sweet home to be safe and out of harm, and family life insurance is here to be.

Provide coverage for your family

Family life insurance provides coverage for your spouse and children. With this policy all your family members are covered, this include your spouse, your dependent children under age 22, (dependent children also include adopted children and stepchildren), or if older than 22 incapable of self-support.

What a sweet home needs?

A growing family needs a bigger house, some comfortable furniture, cars and many necessities in daily life, which mean the bread winner has very large responsibility to maintain the standard of living.

Would you be here with your family until they are self-support?

If something happened to you family life insurance can help to pay off your car loans, house loan, your children's educational fees and other expenses. In order to provide your family security it is important for a bread winner to own a policy. Moreover funeral expenses can incur a prodigious sum too.

Singles also can purchase this policy

Someone who is single can take up this policy too. When he gets married he can include his spouse and his children into the policy. The insured children can transfer their insurance to their own personal policy when they grow older.

In order to know more about this policy please visit the relevant sites, compare the advantages and disadvantages, and make sure it is the policy that is suitable to you, and you can obtain free quote from many of the life insurance companies.

Article Source: http://EzineArticles.com/?expert=Vincent_Funfatt_Yeong

No Exam Term Life - What is It?

2008-10-15T03:44:00.000-07:00

Okay, we all understand the way life insurance companies work. Traditionally they fill out a very lengthy life insurance application and then send it off to the insurance company so their underwriters can double check all the information. Then the insurance company calls you at your home and sets up an appointment for a nurse to come out and give you a physical exam including a blood draw, urine specimen and in some cases an echocardiogram. After the insurance company receives the exam results, the underwriters review it and in almost all cases have your doctor's records sent to them for further review. Once this is all said and done, four to six weeks later the underwriters will issue you a policy based on the information they receive. What some people may not understand, even though it should have been explained to you, is that in all that application paperwork is a form that gives the insurance company the right to examine your Medical Information Bureau (M.I.B) reports. The MIB's primary purpose is to detect fraud for the insurance companies. You should not waste your time worrying about this because they have been doing it for years, but I wanted to explain that part of the traditional process so I could explain the newer, faster "No exam term life".

When you see the words "no exam term life insurance"; what do you think they mean? Do you think the insurance company is just going to issue you a life insurance policy without checking your health history? I guarantee you that they are going to check out as much as they can before they issue a policy. Instead of the inconvenience of waiting for a nurse to come to your house to do a blood draw, urine sample and the rest of the physical exam; they count on your medical records, prescription records and in some cases your driving records...hence the Medical Information Bureau and Department of Motor Vehicle reports.

While these policies due tend to be issued much faster than traditional policies you should use a website that offers you instant life quotes with both no exam term life and the traditional life insurance policies compared on them. The reason I suggest this is that, like anything else in life, you may pay more for convenience and if you use a website that offers instant life quotes you will be able to see them side by side and then make the decision as to which policy you want. Generally these policies are issued at a "standard" rate. With that being said, approximately 50% of life insurance policies are issued "standard" anyways.

Along with the no exam term life policies, another new type of policy you may see is called "Smart Life". This is actually underwritten the same way as the no exam term life policies are with the biggest difference being issue time. Smart life policies are actually issued in minutes while you are still sitting at your computer and you can even print the policy using your own printer. A Smart Life policy is a great policy for the people who are just too busy to have the time to go through all the motions of the traditional life insurance application process. These Smart Life quotes can also be found on a good high- tech life insurance website that offers instant life quotes.

Article Source: http://EzineArticles.com/?expert=W_A_Henderson

Life Insurance, As an Investment? You Decide!

2008-10-13T02:43:00.001-07:00

Okay, maybe you can not get on the stock market and purchase a share of your own life insurance policy but what do you think makes a good investment? What kind of a return on investment are you looking for? You already know that you have to risk big to even stand a chance of earning big. The problem with that is the "risk"! I know you do not want to lose all your money but that is part of the risk.

Then another good question that you should answer for yourself is; what are you investing for? Most people in the market have to understand that an investment may take years and years to give any return on their investment. So are you hoping to make some money to put toward your retirement or just in case anything happens to you so your family will not be left high and dry without your income. What happens if you pass away and the market is in a down turn and your family can not get to the money without taking a substantial loss? I guess that can be one more big risk of investing.

Alright, let's say that instead of investing in the stock market as heavy as you currently are and used some of that money to purchase a life insurance policy. Your objective for your family can still be taken care of. If you would pass away, except with the right life insurance policy instead of taking any risk, you would have a guarantee. That's right. It may not be as sophisticated or dramatic but it is guaranteed and it will probably be cheaper than your stock market investments. Now if you want a real good return on your investment all you have to do is increase your death benefit. This may not sound like an investment but if you think about the reality of your death and being able to leave a bunch of cash for your loved ones that is completely guaranteed it does make sense.

In closing I would hope if nothing else you may now look at life insurance as a possible investment and not as an expense. If you buy the right life insurance policy it will pay your family and that is all written in a legally binding contract. If you think that you will have to talk to an agent just to find out that it will be more than you want to invest than you can always use the internet. There are websites that will let you get instant life quotes from multiple insurance companies all at the same time without ever talking to anyone. They are free and you can get as many quotes as you want until you find a quote within your budget, so give them a try!

Article Source: http://EzineArticles.com/?expert=W_A_Henderson

Universal Life Insurance - Is it a Good Investment Strategy?

2008-10-13T02:42:00.002-07:00

Universal Life Insurance, also called Permanent Life insurance, is the type of policy where you also hear the term, "cash value". The cash value is the difference between the amount of your premium paid, and what the insurance's actual "costs" are. The difference accrues into a cash value, and the insurance company pays interest on this cash value it accumulates. Often times, in the earlier years of the policy, your premiums heavily outweigh the insurer's "costs", so you are basically accruing "cash value" on a tax-deferred basis. Your death benefits and premiums are flexible, without having to rewrite the policy, if you decide to make changes. The cash value can be used to have your premium deducted, if you have enough value. You also hear about people borrowing against their "cash value", however, these loans will be deducted from the death benefit, it not repaid and also will become taxable.

Many people chose Universal Life or Permanent Life as part of an investment strategy, they build cash value with tax deferment, if interest rates are high-they will earn interest above the insurer's costs, and some policies are written as Variable Universal Life policies, where you can even direct investments in mutual funds and other stock and bond issues where the risk of return (or loss) may be available. You can also borrow against the cash value, in the event of an emergency, and they offer flexibility on the benefit or premium.

The advantage of Universal Life policies is the flexibility they offer. You can invest, borrow, and set premiums and benefits to fit your budget. The disadvantage is that you can lose cash value through a downturn in the basis investments, low interest rates or if the insurer's costs deplete the cash value, making the policy worth nothing. If the cash value gets depleted due to downturns in investments or the insurer's costs exceeding the cash value, the policy is expired, your premiums lost and you have no death benefit.

In contrast, Term Life Insurance is a policy that is purchased for a set death benefit amount, with set premium payments and a guaranteed payment to your beneficiaries, as long as you keep the premium payments current, no matter how the insurer's costs or investments perform. It is a much safer and guaranteed life insurance policy, if your goal is to have a benefit paid after your death, to help your loved ones with expenses. Term Life Insurance is not really part of an investment strategy, but a protective strategy. Universal Life Policies, as you can see are basically, a financial investment growth strategy, with risks involved that may or may not take care of expenses after your death. It is often called permanent, because, "it is permanent, as long as your cash value pays the premiums, or you pay the premiums, but your death benefit is not a guaranteed value, but it assumes it will be permanent as long as premiums exceeds costs, but it is NOT guaranteed your whole life". As you can see, life insurance can be confusing, but may not be the best investment strategy.

Article Source: http://EzineArticles.com/?expert=Julie_Shields

High Risk Life Insurance

2008-10-13T02:42:00.001-07:00

Most people generally understand that some people are higher risks than others in the minds of life insurance companies, and people who are higher risks will have to pay higher premiums for the same amount of coverage than other people who are about their same age and the same gender (and in extreme cases they may be denied coverage altogether). However, many people don't know just how easy it is to be classified as a higher risk.

Most people who have ever applied for life insurance policies know that the industry has three broad categories for assessing risk and setting premiums that figure automatically into someone's policy: Preferred Plus, Preferred, and Standard. Then, on top of that, there is another pair of risk ratings that everyone gets either one or the other of: Smoker and Non-Smoker. Just because you smoke doesn't mean you are fated to be a mere Standard risk. Many people are underwritten as Preferred Smoker.

People are well aware that smokers are higher risks than non-smokers and that people who are applying for more than a minimal amount of life insurance (usually above
$70,000 on average) have to take a physical in order to see what premiums they qualify for (except in cases where people apply for "guaranteed issue" life insurance, but the premiums on this type of policy are so high, and the upper limits on their face amounts so strict, that they aren't worth it unless you have no other life insurance option due to some kind of severe condition). But, most people don't realize that many life insurance companies consider any kind of tobacco use, and that includes "social smoking" or the use of chew for instance, the same as the use by a two-pack-a-day regular cigarette smoker. And here's another thing: some life insurance companies have actuaries and underwriters who are more worried about your lifestyle than they are about your health or your medical records.

For instance--are you fit as a fiddle, in the prime of youth or your middle years, never smoked a day in your life, always drink your daily V-8, and have an excellent family history from a medical standpoint...but, you love to kayak in whitewater rapids, climb mountains, and ski black diamond moguls? Guess what? You may very well be categorized as "High Risk" and be forced to pay very high premiums by many life insurance companies.

William Carroll, an actuary with the American Council of Life Insurers (ACLI), says, "The healthy bungee jumper scares me more than the well-medicated money manager in midtown Manhattan."

Here's another factor related to your medical condition: some life insurers care more about your mental health than your physical health. Let's say you're just like the person mentioned above physically, but instead of downhill skiing or the other activities you are on anti-depressants. Even if these medications are working fine, you will probably have to pay a higher premium than you otherwise would without the medications. Why? Well, actuaries know that people who are on anti-depressants are more likely to fall into depression than others, and people who get depressed are more likely to kill themselves and thus pose a greater risk to the finances of the insurance company. It sounds cold-hearted to think about this matter in such a calculated way, but that's the job of actuaries and underwriters--they have to accurately assess risk and price for it accordingly or else they put the company in danger of going bankrupt through too many high claims and then nobody is covered at all.

And even though it is a federal offense for life insurance companies to try to claim you are a higher risk based on where you live, they can and do make risk assessments based on where you like to travel to. Got relatives in the Sudan that you go to visit three times a year? You'll be paying a higher premium than your next door neighbor of the same age and gender who hardly ever leaves the state.

The good news is that you can use life insurance brokers and online rate comparison services to find life insurance companies that aren't as frightened of your daring personal life or your pharmaceutical use, and you can even through them find life insurance companies that specialize in underwriting people like you. If you think you're a higher risk, set up an appointment with your local broker and check out places online like Progressive Insurance and AccuQuote.

Article Source: http://EzineArticles.com/?expert=Julie_Shields

Western National Life to Develop Fixed Annuity for Home Savings of America

2008-09-30T05:53:00.001-07:00

Western National Life Insurance Company reported today it is teaming up with Griffin Financial Services, a sister-company of Home Savings of America, to develop a proprietary fixed annuity that will be offered to customers throughout the bank's 348 financial service centers in California, Texas, Florida, and Arizona.

Western National Life, which is the principal subsidiary of Houston-based Western National Corporation (NYSE: WNH), is a leading provider of fixed annuity products to the financial institution market and was one of the first to provide proprietary and private-label fixed annuities. The agreement with Griffin Financial Services is one of the largest of several announced by the 51-year-old life insurance company over the last 13 months.

Launch of the new annuity, which has been named the Griffin Income Builder Annuity, is expected in early May. Western National Life and Griffin Financial Services co-designed the flexible premium deferred annuity. Under the agreement, Western National Life will issue the product and provide marketing and administrative support. The annuity funds will be managed by Griffin Financial Services under specific guidelines provided by Western National Life.

Home Savings of America is headquartered in Irwindale, California and is the principal subsidiary of H.F. Ahmanson & Company (NYSE: AHM). The financial institution has assets totaling approximately $50 billion and deposits of $35 billion. In addition to its 348 financial service centers in four states, Home Savings of America operates 121 mortgage lending offices in 10 states.

Western National Corporation, headquartered in Houston, is the parent of Western National Life Insurance Company. With statutory assets of $8.6 billion, Western National Life is one of the largest life insurance companies in the United States. Founded in 1944, Western National Life is a leading provider of retirement annuity products.

Scottish Annuity & Life Holdings, Ltd. Declares Fourth Quarter Dividend

2008-09-30T05:50:00.000-07:00

The Board of Directors of Scottish Annuity & Life Holdings, Ltd. (NYSE:SCT) declared a quarterly cash dividend of $0.05 per ordinary share outstanding to be paid on March 12, 2002 to shareholders of record as of February 26, 2002.
Scottish Annuity & Life Holdings, Ltd. is a global life reinsurance specialist and issuer of customized life insurance based wealth management products for high net worth individuals and families. Scottish Annuity & Life has operating companies in Bermuda, Charlotte, North Carolina, Dublin, Ireland, Grand Cayman and Windsor, England. Its flagship subsidiaries, Scottish Annuity & Life Insurance Company (Cayman) Ltd. and Scottish Re (U.S.), Inc., are rated A (strong) by Fitch, A- (excellent) by A.M. Best and A- (strong) by Standard & Poor's.

Pacific Life's Variable Annuity Materials Ranked #1

2008-09-28T04:08:00.001-07:00

NEWPORT BEACH, Calif. -- Pacific Life Insurance Company's variable annuity materials were ranked #1 by financial professionals in an independent study conducted by the marketing consulting firm, Marketing Matrix International.

In the 2007 Marketing Matrix "Best Practices in Variable Annuity Sales Literature" study, Pacific Life ranked #1 in:

Best Overall
Visual Elements
Readability
Usability
Information Substance
Comprehension
Motivation

"Pacific Life consistently produces outstanding VA kits that advisers can use effectively with clients," said Marcia Selz, Ph.D., president and chief research director of Marketing Matrix. Serving the financial services industry since 1987, Marketing Matrix conducts a series of research studies on topics of interest to the investment, insurance, and banking industries. For the "Best Practices" studies, financial advisors participate in individual two-hour sessions that include literature assessment questionnaires and in-depth interviews.

According to Kathleen McWard, CFP[R], vice president, marketing, Annuities & Mutual Funds Division, "Pacific Life is committed to offering financial professionals the most informative and educational materials for their clients. We will continue to make enhancements to produce easy-to-understand marketing pieces to aid them in the sales process."

Founded in 1868, Pacific Life provides life insurance products, annuities, and mutual funds, and offers a variety of investment products and services to individuals, businesses, and pension plans1. Pacific Life counts more than half of the 50 largest U.S. companies as clients2 and is a member of the Insurance Marketplace Standards Association (IMSA), whose membership promotes high ethical standards for the sale of individual life insurance and annuities. For additional information about Pacific Life, including its current financial strength ratings from A.M. Best, Fitch Ratings, Standard & Poor's, and Moody's, visit the company Web site at www.PacificLife.com.

1 Product features and availability vary by state.

2 Data compiled by Pacific Life using the FORTUNE 500[R] list as of April 2007.

Pacific Life Insurance Company is licensed to issue individual life insurance and annuity products in all states except New York. Product availability and features may vary by state.

Variable insurance products issued by Pacific Life Insurance Company and mutual funds issued by Pacific Life Funds are available through licensed third-party broker/dealers and distributed by Pacific Select Distributors, Inc. (member FINRA & SIPC), a subsidiary of Pacific Life.

Phoenix Names Buckingham Senior Vice President For Life and Annuity Product Development

2008-09-28T04:07:00.002-07:00

HARTFORD, Conn. -- The Phoenix Companies, Inc. (NYSE: PNX) today announced that Thomas Buckingham has been promoted to senior vice president, Product Development for Life and Annuity, reporting to Philip Polkinghorn, senior executive vice president and president, Life and Annuity.

"Innovative products are the heart of our business and we are committed to continuing this competitive advantage for Phoenix," Polkinghorn said. "Tom has the knowledge and skills as a product actuary and, over the past few years, has deepened his leadership skills and expanded his perspective through a variety of corporate rotational assignments, including as chief of staff to the CEO. His recent experience launching and leading the operational transformation of our Life business gave him unprecedented access to evaluate and improve the entire service platform for our customers and advisors. I've worked closely with Tom and it is gratifying we can fill this critical position with such strong in-house talent."

Buckingham previously was vice president, Life and Annuity Operations Transformation, responsible for leading the transformation to a new operational structure for serving life insurance clients and their financial advisors. Operations Transformation created service teams aligned to the company's distribution channels, implemented process improvement within those channels, and oversaw technology improvements to support the new model.

In his new role, he will be responsible for product creation, pricing, analysis and implementation. Also reporting to Buckingham are research and concept development, which is responsible for the annual Phoenix Wealth Survey of high-net-worth investors, and SEC and state compliance.

Buckingham joined Phoenix as an actuarial assistant in 1999 and served in increasingly senior actuarial positions, including distribution compensation, life product development and strategic development, before serving as chief of staff to Dona D. Young, chairman, president and chief executive officer.

He is a fellow of the Society of Actuaries and holds a bachelor's degree in mathematics and an M.B.A. in management from Rensselaer Polytechnic Institute.

Phoenix offers a full portfolio of life insurance products including universal life, variable universal life and term products, and the company's underwriting capabilities accommodate a range of customers and risk situations and address clients' estate, business and retirement planning strategies. Phoenix also offers a complete suite of annuity products with a full spectrum of optional guarantees, and with expert technical analysis of complex annuity contracts to help customers own the right products to fit their unique needs.

NATURAL HEDGING OF LIFE AND ANNUITY MORTALITY RISKS

2008-09-28T04:07:00.001-07:00

The values of life insurance and annuity liabilities move in opposite directions in response to a change in the underlying mortality. Natural hedging utilizes this to stabilize aggregate liability cash flows. We find empirical evidence that suggests that annuity writing insurers who have more balanced business in life and annuity risks also tend to charge lower premiums than otherwise similar insurers. This indicates that insurers who have a natural hedge have a competitive advantage. In addition, we show how a mortality swap might be used to provide the benefits of natural hedging.

If future mortality improves relative to current expectations, life insurer liabilities decrease because death benefit payments will be later than expected. However, annuity writers have a loss relative to current expectations because they have to pay annuity benefits longer than expected. If the mortality deteriorates, the situation is reversed: life insurers have losses and annuity writers have gains. Natural hedging utilizes this interaction of life insurance and annuities to a change in mortality to hedge against unexpected changes in future benefit payments.

The purpose of this paper is to study natural hedging of mortality risks and to propose mortality swaps as a risk management tool. Few researchers investigate the issue of natural hedging. Most of the prior research explores the impact of mortality changes on life insurance and annuities separately, or investigates a simple combination of life and pure endowment life contracts (Frees, Carrière, and Valdez 1996; Marceau and Gaillardetz 1999; Milevsky and Promislow 2001; Cairns, Blake, and Dowd 2004). Studies on the impact of mortality changes on life insurance focus on "bad" shocks, while those on annuities focus on "good" shocks.

Wang, Yang, and Pan (2003) analyze the impact of the changes of mortality factors and propose an immunization model to hedge risks based on the mortality experience in Taiwan. However, life insurance and annuity mortality experience can be very different, so there is "basis risk" involved in using annuities to hedge life insurance mortality risk. Their model cannot pick up this basis risk.

Marceau and Gaillardetz (1999) examine the calculation of the reserves in a stochastic mortality and interest rates environment for a general portfolio of life insurance policies. In their numerical examples, they use portfolios of term life insurance contracts and pure endowment polices, similar to Milevsky and Promislow (2001). They focus on convergence of simulation results. There is a hedging effect in their results, but they do not pursue the issue.

Our paper proceeds as follows: In Section 2 we use an example to illustrate the idea of natural hedging. In Section 3, using market quotes of single-premium immediate annuities (SPIAs) from A. M. Best, we find empirical support for natural hedging. That is, insurers who have better naturally hedge mortality risks tend to have a competitive advantage over otherwise similar insurers. In Sections 4 and 5 we propose and price a mortality swap between life insurers and annuity insurers. Section 6 is the conclusion and summary.

2. Introductory Example

If mortality improves, what happens to the insurer's total liability? We know that, on average, the insurer will have a loss on the annuity business but not on the life insurance business. And if mortality declines, the effects are interchanged. This section illustrates the idea of a natural hedge.

2.1 The Portfolio

At time 0, consider an insurer's portfolio of life contingent liabilities consisting of whole life policies written on lives at ages 25, 30, 35, 40, 45, 50, 55, and 60 and single-premium immediate life annuities written on lives at ages 65, 70, 75, 80, 85, 90, 95, and 100. The interest rate is flat at 8%. Life insurance premiums and annuity benefits are paid annually. Death benefits are paid at the end of the year of death.

The net annual premium rate for one unit of whole life benefit is determined so that the present value of net premiums is equal to the present value of benefits. The annuity policy is purchased with a single payment. The expected loss of the portfolio is zero. However, this expectation is calculated under the assumption that the mortality follows the tables assumed in setting the premiums. If we replace the before-shock lifetimes with the after-shock lifetimes, what happens to the loss?

The overall mortality shock effect on an insurer is determined by its business composition, that is, the ratio of annuity business to life business. To study different outcomes under different business compositions and illustrate the idea of natural hedging, we introduce a variable r that is the ratio of annuity business to whole life business. For example, given r = 1 at time 0, if death benefits and annuity annual payments follow Table 1 for different ages, the present values of liabilities (or premiums) of whole life insurance and of annuities are equal. Suppose there is a mortality shock striking all ages evenly. We expect that an insurer with such a balanced business (where r = 1) will have the lowest volatility in cash flows. If r = 0.5 (or r = 2), it means the annuity business is half of (or twice) life business. A mortality shock in this case may impose a bigger problem in cash flow stability than when r = 1. However, in reality mortality operates within a complex framework and is influenced by socioeconomic factors, biological variables, government policies, environmental influences, health conditions, and health behaviors (Rogers 2002). Therefore, we use past mortality shocks to illustrate our idea of natural hedging.

Protect Your Family Against the Loss of Your Life

2008-09-25T03:43:00.002-07:00

As if the trauma of losing a loved one isn't massive enough, subsequently finding out that the deceased was not insured against unexpected death and therefore made no financial provision for their family or dependants makes the situation far worse.

The primary concern of any life insurance is the consideration of those left behind following the death of an insured person. Certainly, anyone who owns a mortgaged property which houses their family and is a joint or main breadwinner to that family should take out life insurance or assurance to protect their family's future.

On the other hand it may not be appropriate for everyone. For example a single person with no dependants and enough savings to cover the cost of their funeral may be ill-advised to take out a life insurance policy as they would be paying a premium in order to provide a cash sum merely to their estate.

While you cannot insure against death itself, you can insure against the potential financial misery that would ensue from an untimely death. Such life protection gives peace of mind to everyone involved; both the insured and their family know they are protected should the worst happen. Although the pain of losing a loved one takes time to get over, at least with the finances sorted there is one less thing to worry about.

Most insurers offer some form of life protection with benefits paid either as a lump sum or as a regular income to the beneficiaries. There will be considerations affecting the level of the premium paid for cover, such as whether the insured is a smoker or non-smoker, their age and medical history. But, once the risk is established most insurers offer a fixed premium and guaranteed payout for as long as the insured person requires the cover.

However, there are many different types of life insurance and the need for it varies according to individual circumstances, so anyone who may be thinking of taking out a policy to protect their family should get advice before they sign on any dotted line and commit themselves.

Reasons to Buy Life Insurance at Early Stage of Life

2008-09-25T03:43:00.001-07:00

Buying life insurance is a way to protect our loved ones if anything should happen to us, touch wood, but mishap is unpredictable, we often see in the newspaper that those who are not insured asked for donations when something happened, of course we definitely don't want to fall into this category, we provide our loved ones the best we can.

Some may say I am single and why should I buy life insurance?. But would you want to get insured only after you got married? Some people bought their life insurance when they were young, and they may buy another one as a supplemental policy when they have more responsibilities. You might also want to buy life insurance to pay off debts and expenses; you have to think of your retirement and your children, and it is cheaper and more affordable to own a policy at an earlier stage of life.

Make a calculation

When you are getting a life insurance for yourself you need to make a calculation, you can pay your premium monthly or yearly, and after some years (depends on what type of policy you buy) you will have some cash value and it can pay for your premium automatically. You can also decide the duration, for example if you want to buy life insurance for yourself you can choose the coverage you need and make the term to be 20 to 30 years. If you are buying it for your children until they are independent or for their future education then it is better to make the term at 15 to 20 years.

The longer you delay the higher the premium

If a person buys a policy at the very early stage of his life he will pay only very little premium, unlike if a person buys a policy at the age of 40 or 50 he definitely needs to pay a very much higher premium with the same amount of coverage as the former. We can start off with a low coverage policy so that we find it affordable, in future if we earn a better income we can consider an additional policy if we find it necessary.

How to get free quote?

You can obtain free life insurance quote online, it is absolutely free, the insurance companies are happy to help you, all you need to do is to fill in the form, it is simple, and just choose the policy you want. The life insurance agents also can recommend suitable policy to their customers, they are happy to provide free quote for any one who is interested in knowing how much premium he has to pay according to his age.

Understanding Life Settlements

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A life settlement is the sale of ownership of a life insurance policy to another outside third party. The proprietor of a life insurance policy receives monetary funds for the policy. The buyer turns into the new proprietor as well as the beneficiary of the policy, is responsible for payment of all future premiums due, and is the one to collect the death benefit in its entirety which the original insured party passes away.

Individuals come to the decision to sell their life insurance policies for a variety of reasons. Some typical reasons include: changed financial needs, changed needs of dependents, inability to afford premium payments, and needing cash for present expenses.

Life settlements should be entirely comprehended prior to selling a life insurance policy. Any potential policy owners considering a life settlement should contact their life insurance agent or company for further information, consult a trusted financial advisor who is familiar with the individual financial necessities, and get in touch with the state insurance department for any additional information about current insurance laws.

Life insurance policy holders should also find out if they have any cash value in their policy. If there is cash value, the policy holder might be able to use a portion of it to meet any immediate financial needs and still retain the policy for any beneficiaries. The cash value may also be utilized as a form of security to obtain a loan from an outside financial institution. It is also essential to consider any and all sources of cash that may potentially meet any financial necessities at a lower price than a life settlement.

A tax advisor will be able to help policy holders to understand the tax implications of a life settlement. Proceeds from these types of settlements are not tax-free and creditors can claim any proceeds. A cash settlement can also cause policy holders to be ineligible for public assistance they were previously eligible for. In addition, policy holders will have to provide personal medical information, which may be a concern. They buyer will be aware of this information, so it is crucial to find out beforehand exactly what information is required and who else might be the recipient of that information other than the buyer. This will be very different from providers advertising life insurance no medical exam policies.

There are important decisions a policy holder must make prior to making a life settlement such as whether they want to sell their life insurance policy directly to a provider or a broker who will perform comparison shopping for them. If a policy holder opts not to use a broker, they should make sure to do the comparison shopping on their own and to not settle for the very first offer.

When working with a provider, make sure the provider will agree to place the settlement proceeds in escrow with an independent financial institution to ensure that all funds are kept safe during the course of the transfer. It is a good idea to check with state laws to determine whether there is a grace period of time to reverse the life insurance sale in the event that a policy holder changes their mind. Obviously if this happened, any funds accrued would have to be returned in addition to any and all premiums the buyer paid.

Why People Prefer to Get Instant Life Quotes?

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When you want to get life insurance it is always a smart move to get life insurance quotes. This will help you find the best policy for you at a price that you can afford. Now when you want to find instant life quotes there are a couple of different ways that you can use to accomplish this. You can visit insurance companies, talk to a broker or an agent or go online. Most people prefer to get online life insurance quotes for many different reasons.

Do you know why so many people prefer the instant life insurance quotes online? Here are some of the more common reasons but definitely not all of the reasons.

One: The first reason is one that is obvious, you can get life insurance quotes for free from the comfort of your own home. Getting anything for free these days is a big plus but being able to stay home to do it is another big plus.

Two: The internet makes it very easy for anyone to find online life insurance quotes at anytime of the day or night. So, this gives you flexibility in finding quotes without being pressured. You can get the life insurance quotes you need when you have time and then take time to make a decision.
Three: One of the best reasons to get instant life quotes is because you can compare the different quotes that you get. There are so many different sites online that you can get quotes from. You want to get as many quotes as you can before you make any decisions. This will help you find the best price for you. You don't ever want to get any type of life insurance without first comparing them because each one is different, which means each one will have different life insurance quotes for you.

These are just a few of the more common reasons that many people prefer to get instant life quotes. You just want to remember that before you decide to get any life insurance you have to take the time to get quotes, even if you don't want to do it online. Getting life insurance quotes is just being smart and making sure you are getting a policy that you can afford. So, don't rush your decision, compare them until you find the one that is best for you. Otherwise, you will end up wasting a lot of money you don't have to pay and could be using for other things.

Life Insurance Terms - "S" - "W"

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Settlement Option: How a beneficiary is given disbursement of the death benefit. The company might pay one lump sum or institute a money market account in the recipient's name and supply the recipient the option of leaving the funds in the account or withdrawing some or all of it.

Suicide Clause: A life insurance policy will not disburse a death benefit if the owner of the policy commits suicide within the initial two years after purchasing the policy.

Surrender Charge: If you cancel an annuity or life policy ahead of time, the company may subtract a fee from the sum it owes you.

TAMRA: Technical and Miscellaneous Revenue Act. A 1988 Federal law that formed a new category of life insurance contracts. The contracts' policy loans and surrender costs are subject to taxation regulations comparable to deferred annuities.

Term Life: The most basic form of life insurance, it normally offers no cash value element. You pay a premium and the company guarantees to pay your beneficiary if you pass away. The policy lasts for a particular length of time or "term," such as 1, 5, 10, 15 or some odd years, or to an elected age like 65 or 100. If you are still alive at the close of the term, the policy terminates unless the company concurs to restore it. Renewal premiums are dependent on your current age. Sometimes called "temporary insurance."

Underwriting: The insurance company's procedure for deciding whom it will insure. An underwriter's verdict may be based on your application, physical exam, health records, and other information to conclude whether you meet the company's standard.

Universal Life: A flexible-premium life insurance contract which accrues values and pays a death benefit. You select the policy's premium and face total and you can alter these permitting the policy is in effect. It is feasible that the cash value will produce more than the guaranteed lowest interest rate. It is also feasible that the cash value will develop more rapidly than is necessary to cover the price of insurance.

Vanishing Premium: An insurance company's prediction on an illustration signifying that your policy could accomplish a position where you would not have to pay premium payments because the policy would have sufficient cash value to encompass the premiums.

Variable Life: A sort of whole life insurance in which the face quantity and cash value count directly on the investment performance of a particular fund. Reserves are put in investment accounts that are disconnected from the company's universal account. Most policies promise a lowest face sum, but a cash value minimum is hardly ever guaranteed.

Viatical Settlement: A concurrence to sell the rights of your life insurance policy to a different, unrelated person who becomes both the possessor and beneficiary of the policy.

Waiver of Premium: A stipulation that postpones your duty to pay premiums when you are immobilized or you meet some other policy prerequisite. This is a frequent feature in life insurance polices.

Whole Life: Life insurance with a savings aspect. Premiums normally are the same (rank) annually. When you are youthful, your premiums are more than the price of insuring your life at that point in time. The surplus amount builds up and resembles a savings account, called "cash value." This surplus is utilized by the company to insure you in the future, when your level premium is not sufficient enough to cover you.