Archive for August, 2009
Tuesday, August 25th, 2009
by John Fagan
The following article is about the things to be kept in mind while purchasing a Life Insurance policy. It also highlights the role of internet in selecting the right type of policy for an individual. People who want to purchase an economical Life Insurance Policy can do so if they keep some crucial points in mind. To ensure that one purchase the most cost effective Life Insurance plan, one needs to buy online, the exact amount of Insurance cover from the best Insurance provider post research and comparison.
Variable Life is an enduring Insurance policy which enables premium money to be invested in different investment funds like Stock, Bonds, Fixed Income Investments or the Money Market Fund. Investments may be switched for two to five times every year by the policy buyer. However it depends on the terms of the Insurance provider. Variable Life Insurance provides absolute control of the investments, unlike Universal Life.
Owners of Variable Life Insurance earn Tax free income. The interest generated through the investments can also be used for paying premium amount. Earnings may get reduced significantly, due to poor performance of the funds. Thus, to keep the policy in vigor one may have to pay an additional amount for the premium. The amount of death benefit may get reduced due to poor performance of funds but such reduction is quite more than the specific level. During the life span of the policy owner, cash value can not be withdrawn.
In comparison to other policies Variable Life Insurance policies are costly. However they have more control and elasticity attached with them. There is significant potential to receive tax free earnings and grant the Beneficiary with a significant amount of tax free money. As one can save on Estate taxes, policy owners acquire Variable Life Insurance for their heirs who can withdraw from the cash value or borrow against it.
Free tools for comparison are provided by a number of reputed financial websites which enables policy buyers to compare the cost, features and different types of policies online. Consequently one does not need to seek help from a financial advisor. Prospective policy buyers can therefore easily select the best suited Insurance policy available at a cost effective price, after exploring the internet for understanding various types of policies.
The weakness of Variable Life Insurance lies in the risk concerned with the cash value component that is affected mainly by the performance of investments. The Insurance providers hold no responsibility regarding investment decisions taken by the policy owners. In addition, no minimum balance with regards to the policy sum invested is guaranteed by the Insurance provider. In case the investments perform badly in the market then the insurance provider will forfeit the cash value towards the premium payments, though if policy buyers invest wisely, they can make substantial earnings in comparison with other policies.
In the unfortunate event of premature expiry of the policy owner, Term Life Insurance is an ideal arrangement. Though, it is impossible to forecast the life span of an individual. Thus, Term Life Insurance is the most appropriate policy cover which offers the desired financial security to the beneficiary if the policy owner expires unfortunately. Individuals having a family history of sudden premature deaths can get secured by purchasing a Term Life Insurance.
Tags: affordable life insurance, guaranteed issue life insurance, insurance agents across the us, insurance quotes online today, life insurance comparisons, life insurance quotes
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Monday, August 24th, 2009
by Susan Reynolds
If you want your survivors to have sufficient funds, in the event of your death, then life insurance is something you will want to look into. Insurance companies pay in a lump sum, which means the funds can be used to handle the immediate expenses involved with estate settlement and funeral costs. However, this also provides help with the long-term needs of your survivors. A life insurance policy allows you to make provisions for your dependents, and some even offer options in case you become disabled. You can also find a few that propose a retirement annuity.
South Africa really has a wide variety of life insurance options and providers. You can easily find policies that offer term, whole and universal life insurance plans.
With term life insurance, your coverage will only last for a specific span of time. When that term of time is over, your policy simply ceases to exist. If you only need extra protection for a short span of time, this policy is ideal. If you feel you only need your life insurance to see you through paying off your home mortgage, then a term policy would work extremely well for you. Being short term coverage also makes the life insurance more affordable, but there is a down side. It does not have a cash value or any investment potential.
Whole life insurance coverage is a little different, and far more complete. A payout of some kind is assured, and it expires only upon the policyholder’s death, or when it’s is given up. Once you are covered, you do not need to worry about the possibility of becoming uninsurable later in life. The insurance company will invest the premiums, and policyholders can borrow against the policy as soon as it builds cash value. Naturally, it costs more than a term life insurance policy.
An added bonus with a universal life insurance plan is the investment component. You make premium payments, but you receive interest on anything that is above the cost of the insurance. So, you get cash value on that amount each month. There is potential for rapid growth, but it is not guaranteed.
There are several life insurance companies in South Africa. One of those companies is1LifeDirect. Although they have not been around for long, they have made a big impact by providing customers unique products and low monthly premiums. They use a direct sales model, which cuts out the middleman, allowing 1LifeDirect to save their customers on the cost of premiums. Taking its expertise from the medical aid industry, Discovery Life Insurance generates excellent insurance products, coupled with a wonderful loyalty program.
One of the bigger names in the insurance industry, Liberty Life Insurance offers three premium options that can accommodate any need. Moreover, one of the largest varieties of products on the market comes through RMB Insurance. Finally, Sanlam Insurance can provide both personal and group life insurance coverage.
Tags: affordable life insurance, death, disability, finance, health, insurance, life cover, life insurance, people
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Saturday, August 22nd, 2009
by Michael Cobbs
It is inevitable that at some time in the near future you will have to start thinking about burial life insurance. Death is a certainty for everyone and it makes sense to leave appropriate funding behind so that funeral costs and other debts are cleared. This will bring a sense of peace and happiness so you can live out the rest of your days with less stress in your life. These kinds of policies are specifically designed so that your funeral and other expenses are catered for.
There are several different kinds of burial life insurance you can choose from and it is best to research all the options before deciding on one. Different kinds of policies may have different rules to follow and this may affect your decision. Let us take a look at the kinds of burial life insurance you can choose from.
It is a common misconception that they only type of burial insurance you can get is to specifically cover funeral costs for things such as graveside services – and nothing else. There are others, but you can indeed purchase this type of policy which is called a “Pre-Need Insurance Plan”. It will solely only pay for costs associated with your funeral and cannot be used for payments towards anything else. This plan is widely available from funeral homes and the beneficiary can only be a specified funeral home. This way they can ensure that the funds are used for the purpose of the policy. A funeral director can meet with you to arrange the requirements for the actual day and so set your mind at ease. It is recommended that you carefully scan the documents that you are given; it is important to confirm that there will not be any further costs in the instance of your death. The main benefit of this type of plan is that you know that all of the necessary arrangements are in place; friends and relatives can spend the day concentrating on saying goodbye to you.
Policies known as Burial Insurance and Final Expense Insurance are actually the same policy, they just have different names. As well as funeral costs, the funds from these plans can be used to pay creditors and any other outstanding debts in your name. The beneficiary does not have to be a funeral home; it could be anyone you choose it to be, unlike the Pre-Need plans. You can discuss the finer points of where you would like the money to go with the beneficiary and they will see that it is done after you pass on. Burial life insurance policies such as these can be bought from specialized insurance agents and providers.
Insurance with No Physical Required is the final type of policy you can opt for. Generally this policy type is chosen by those people who fall in the 50 to 80 age bracket and are in reasonable good health. As well as choosing to use the funds for memorial services, graveside services or traditional farewells, the money can also be used for other things such as legal expenses. It is possible to use the money to pay off debts and settle large medical invoices too.
If you have no current medical condition, then you may be offered a simplified policy, which is one of the sub-options of the Insurance with No Physical Required policy. It is usually the case that policyholders will not be required to undergo a physical examination or have to answer questions relating to their health. The regular payment you make for a simplified policy is very minimal and the funds that you beneficiary will receive will be paid out swiftly and promptly upon your death.
If it is the case that you are already experiencing a serious medical condition, then you may be offered a guaranteed policy. The fundamental difference between this policy and a simplified one is that the insurer may stipulate that there is a waiting period of two or three years before benefit can be paid out. Should you perish before this time is up, the premiums will be refunded; if not the benefit will be paid out in full. Premiums tend to be a bit higher with this policy than that of the simplified option.
Whichever type of burial life insurance policy is convenient for you, it is important that you start to think about your death as early as possible. It is best to have all of the arrangements in place for any type of funeral, from cremations to graveside services. You can contact the appropriate providers in person or browse the internet to find their websites.
About the Author:
FuneralInsuranceCost.com has the answers to all the questions that you were afraid to ask about final expense life insurance! To make sure that you won’t settle for anything less than the full story on death insurance, check out the site right away !
Tags: affordable life insurance, burial, Burial Life Insurance, death, dying, final expense, funeral, Funeral insurance, graveside services, life insurance
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Friday, August 21st, 2009
by Celia Richard
No matter where you go in a public place you will find people discussing health coverage. The cost for health care has skyrocketed making it very necessary for each person to have some sort of health insurance.
Have you ever inquired how much it costs for a regular office visit with your family doctor if you do not have any health insurance? Depending on what that particular office charges, you could find yourself paying anywhere from forty five dollars clear up to or above one hundred dollars.
When you are paying for your office visits yourself, there are no discounts. When an insurance company agrees to send patients to their offices, they agree on a discounted price for the services. You do not get that advantage if you are paying for the visit yourself.
Some medical conditions require the attention of a doctor that is a specialist. In this case the office visit charges and the charges for any necessary procedures will cost you a large amount if you do not have health coverage.
The opportunity to get cheap health insurance can be found and might not even require you to fill out a health questionnaire. Anyone who is unemployed can buy their own policy at a fairly reasonable price.
Having children adds a lot of expense to your health care budget. To start with, they must have proper immunizations in order to stay healthy. This usually requires a visit to the pediatrician several times a year.
Then when they become school age you have to start doing physical check ups yearly. During the checkups they check the child’s eye sight and hearing and give a total physical exam.
If your child is very active and begins to participate in school sporting activities you will have to take them for a sports physical before the start of the sporting season. You may even need student insurance for the children as they go off to college.
Be sure to check the deductible amount on the policy before you make the purchase. Many companies that provide cheap insurance also assign a very high deductible. This should definitely be a factor in the coverage that you chose.
The deductible is a set dollar amount that must be reached by paying out of your own pocket before the insurance will begin to pay a portion of your bills. For someone who does not get sick often and does not need medical attention very often, paying the office fee without insurance may be a cheaper solution.
For people that have severe medical conditions, having insurance coverage is even more necessary. If you need to visit specialists and have tests done on a frequent basis, having health coverage is very necessary. It also is great to have if an unforeseen issue arises that requires you stay in the hospital treatment.
Yes, in that case you would have to pay the entire deductible before the plan begins to pay but what it does cover after your deductible can be substantial. The cost of a hospital stay even for one day can be unbelievable.
To give your family and you some peace of mind, consider purchasing a health insurance policy. If you are in need of student insurance or just want to find cheap health insurance, you can definitely find a policy that is right for you.
About the Author:
This report explains what some of the advantages and disadvantages are. Medical Hip Insurance The first thing you should consider is who your employees are. HMOs oversee health coverage, guidelines and standards for doctors in hospitals.
Tags: affordable life insurance, cobra, coverage, health insurance, hmo, insurance, liability, life, medical insurance, ppo
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Wednesday, August 19th, 2009
by Amy Nutt
A car accident can be a harrowing and traumatic event. One will be shaken and often not thinking clearly. If you are involved in a car accident, you have to think about your condition as well as the events that took place because you will most likely have to file a auto insurance claim.
In order to prepare for the results of a car accident, the following steps should be followed in order to make a proper claim:
1. After an accident, your heart will be racing and you may be disorientated. You need to gather your thoughts and think about how to proceed. If you are hurt, and the car is not a danger such as on fire, retrieve your cell phone and call 911. If there is no emergency such as a serious injury, call the police. Check to see if anyone else is hurt. Ask for people who witnessed the accident to stay and talk to the police.
2. Swap contact information, including phone numbers, license plate numbers, and car insurance details with the other drivers involved in the accident. When the police arrive share all the details you remember about the accident so that they can write an official report that can be given to the insurance companies. Make sure you tell the police officers that you want a report. If the officers won’t do it because the accident took place on the property of an establishment like a store parking lot, then ask the store owner or a security guard to write something up. If you have a camera, take pictures of the accident scene that includes any vehicle damage.
3. Contact your insurance company, even if you are not at-fault. Also, compensation is based on the extent of fault so you need evidence to support your claim. Most insurance providers have a toll free claim number. Make sure you have your policy number available. If the other person is at-fault, you must make a claim. You are entitled to have the insurance company process your claim and resolve any disputes. Your insurance company will advise the other driver’s insurance provider that you are making a claim and seeking compensation. You will have to make a list of all items damaged. If the other driver does not have car insurance, you will have to negotiate directly or go to court. Some experts suggest that if the other party is at fault, you should file claims with both insurance providers.
4. Once you have submitted all of the paper work to the insurance companies, they will sort out the claim. You may have to speak to the other driver’s provider about your recollection of the accident. Your insurance provider will tell you what statement is required. Before you give your statement, write down what you remember about the accident.
5. A claims adjuster will inspect your damaged car in order to assess the costs of the loss. They will also assess if the damage can be repaired or if you require financial compensation. If you are financially compensated, the insurance company will write you a check minus the deductible. A car accident can be a very emotional time in one’s life. It is important to remember that you need to keep yourself together so that you can make the right decisions regarding your physical well-being as well as filing a car insurance claim.
Tags: a, affordable life insurance, auto, automobile;truck, business, c, car, car insurance, e, f, family, finance, h, home, i, insurance, l, legal, life, n, o, p, params, personal, r, roadside assistance, s, society, V, variables
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Wednesday, August 19th, 2009
by Leonard Robbins
Introduction
Most people do not have a clear understanding of the various options available in term life insurance, and consequently make decisions based solely on price. This document was written to help you determine what additional issues may also have a bearing on the best value for you.
The Problem
As consumers, we generally concern ourselves with price because we are most comfortable when comparing something obvious such as numbers. Prices are easy to compare and understand; especially when it concerns products we generally have little experience in purchasing.
Previous Option
Compounding this problem as it concerns term life insurance in particular, is that many popular internet sites allow the consumer to obtain a quote simply by completing several questions about build, health and lifestyle. Once quotes are obtained, it’s up to the buyer to choose their best deal. We know this can be a disservice to the client, and in the pages to follow we give a specific example of why, and what to consider.
The LifeNet Solution
We believe life insurance is too important to your beneficiary’s welfare and your own peace of mind to choose coverage based on limited information and undefined objectives. Certainly there is nothing wrong with checking premium costs to get some idea of the market; however, we believe clients are not well served by a mechanical procedure which does not address issues central to the reason for purchase in the first place, i.e. your beneficiaries’ security.
An Example
Let’s take a case of a 60 year old male, a non-smoker in good health and in need of a $1,000,000 policy to examine how both approaches work, and show why our method is superior and provides more value to you, the applicant. The competition provides you a number of quotes detailing carrier name, carrier rating, health category, and premium. Should you wish to apply, simply pick your carrier and the application appears. No fuss, no bother, and no idea if this offer is the best value. In fact, it is rare to find premiums of the lowest cost carriers to vary widely. The lowest cost provider with an A+ or better rating, which we’ll call Company A has an annual premium of $4755. Two other carriers (Companies B and C) have annual premiums of $4955 and $4980 respectively.
All three have convertibility options, but each company’s conversion rules vary and can result in very different opportunities for the insured. In each case, conversion will be at the same health rating that the insured received at the time of the original purchase. In essence, this guarantees the health rating at conversion without evidence of current insurability. This is extremely important since health tends to worsen as we grow older, you could even be uninsurable. In addition, most carriers will allow a partial conversion. That is, a $1,000,000 term may be converted into a permanent policy of any size up to the original face amount of $1,000,000. Most permanent policies have a minimum face of $100,000. Now back to our example. Company A is relatively small compared to others. Its market is low cost term insurance, and they allow conversion to a whole life policy. You may convert to this policy at anytime your term policy is in force up to your 70th birthday.
Company B’s policy is also convertible up to age 70; however conversion to several policies is available. Among them is a flexible premium universal life policy with a guaranteed premium. This type of policy is designed to have the lowest possible premiums. It is guaranteed to stay in force for your lifetime as long as premiums are paid on a timely basis. Both the premium and the face amount of the policy never change. These policies are designed without any cash accumulation, and have considerably lower premiums than whole life.
Finally, Company C has identical conversion policy choices as Company B, however the conversion option stays in effect for an additional five years to age 75. This additional 5 years can mean a great deal because the older we become, the more likely our health rating will change in a negative way. If you find you need lifetime coverage, the extra 5 years of convertibility can make a big difference in protecting your beneficiaries. Any financial plan is just that, a plan. It is based on what we consider reasonable in light of what we know now. However, anyone in their 50′s or older knows how plans can change for many reasons, some under our control, but many not.
To summarize, both company A and B have identical conversion time periods, while company B has better choices than company A. Company C has the same conversion choices as Company B and extends the window of opportunity an additional five years to age 75. Now comes the interesting part. As the owner of the policy, you may have the potential to sell this policy if your need for coverage has decreased or disappeared. This transaction is called a “Life Settlement”. Life Settlements have become a multi-billion dollar market in the last few years and it’s easy to see why as we now look at all three carriers. Legitimate Life Settlements should not be confused with “Stranger Originated Life Insurance (STOLI)” which is illegal in many states. Company A Company B Company C
Annual Premium $4,755 $4,955 $4,980 Total Premiums (15 yrs) $71,325 $74,325 $74,700 Sale of Policy -0- -0- $200,000 (est*)
*This estimate is based on a composite of real cases, but will be dependent upon actual conditions at the time of potential sale, and in no way is it to be considered a guarantee of future results. Remember, you should never attempt to sell a policy if you still need coverage or your health has declined. This type of transaction is designed for individuals whose objective has changed due to financial circumstances different from when the policy was purchased.
For a term policy to be considered a good candidate for sale, it must be convertible into a universal policy with little or no cash value and guaranteed level premiums.
Implementation
1. Contact an independent agent with access to the majority of highly rated insurance companies. Once you find someone you feel comfortable with, check their status with your state insurance department. This is quite easy to do. Just go to your state insurance department website.
2. Remember, agents cannot guarantee you a premium cost! They can only use their best efforts based on the health, lifestyle and the family health history you provide. Omitting information does a disservice to both you and the agent. Life insurers deal with fraud or incomplete information regularly. When you withhold information, you hurt your chances for the agent to advocate on your behalf. Additionally, it may harm your ability to obtain coverage with another carrier.
3. Discuss your objective with the agent. Agents can suggest approaches to coverage you may not have considered.
4. Make sure you ask about conversion options.
5. Be prepared to have a paramedic exam, typically done at your home, your office or at the exam company. Most carriers require blood and urine collection and an EKG to be performed by an independent paramedic company. In some instances, it is possible to purchase coverage without these tests, however be prepared to pay higher premiums for smaller amounts of insurance.
6. Ask questions. Good agents are in the service business and want to do a good job for you. So let them!
About the Author:
Leonard Robbins has written additional articles that can help you choose the best policy for your current and future needs. You may contact him at at http://www.lifenetinsurance.com/to read all you’ll need to know.
Tags: affordable life insurance, cheap insurance, converting term insurance, family protection, Financial Planning, life insurance, term conversion, term insurance, term insurance conversions, term insurance white paper, term life insurance conversion
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Monday, August 17th, 2009
by Susan Reynolds
There is a difference between life insurance brokers and life insurance agents. Agents generally work for one company. When you work for a specific company, it is understood that you will sell their products. Because of that, an insurance agent does not sell products for a rival company.
Life insurance brokers are actually intermediaries between the customer and the insurance companies. So, they do not work for one specific company. Instead, they look at all the insurance companies, searching out the least expensive life insurance policy, which matches whatever specifications you have set.
Having the right broker is very important when choosing a life insurance policy. They do the work for you, searching out the greatest value. Some agents may charge fees as an alternative, however most brokers receive a commission from the insurance companies if they pass on a customer. This is how insurance brokers make their money, and the insurance companies set the commission rates. The insurance broker’s commission percentage has already been factored into the cost of the premium. Even so, if you should decide you wanted to purchase the same policy, directly from the insurance company, you would still pay the same price.
Rebating is a practice that is prohibited in many places. Still, you will always find some brokers that still use this practice. Rebating is when an insurance broker lowers their commission rates, and then passes that savings on to their customer. Although the saving could be very enticing, it is just not a wise choice to deal with an insurance broker that rebates. The main reason is, of course, that it is illegal. Aside from that, the rebated amount is taxable income. You would have to declare it as such.
Having a good life insurance broker is a very important piece of the insurance puzzle. Not only will they have a liaison with several different companies, which will allow you to have a wider range of options, they can also guide you through the maze of information, as well. When deciding on your broker, do not be afraid to ask some questions.
You will want to determine their level of experience, and naturally, the more the better. Newer brokers just do not have the same level of experience, nor have they developed depth in their practice. Inexperience can be very costly. A less experienced broker will not have as extensive a contact portfolio, either. This means, you may well miss out on the deal that would be most advantageous for you. It is not uncommon for inexperience to result in misinformation, and that can be very costly.
Determine the qualifications of your insurance broker. It’s also a good idea to find out how many companies they work with. The more companies they are involved with, the more options there will be. Also, it’s important your broker knows the peculiarities of each company. The bottom line is this, the more your broker knows the market, the better the chance of securing a great deal.
Tags: affordable life insurance, d, death, disability, e, f, family, finance, h, health, i, insurance, life cover, life insurance, n, p, people
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Sunday, August 16th, 2009
by Leonard Robbins
Most people consider cost the primary reason for choosing one insurance policy over another. While certainly important, there are additional and by no means less important factors. Among them are some questions to consider.
How strong is the insurance company?
In today’s uncertain financial climate the quality of your insurance company takes on new meaning. While no insurance company simply goes out of business due to highly regulated reserve requirements of the various states they operate in, those carriers in danger from poor investment results or real estate loans may well be taken over by stronger carriers. While this generally means the new owner will abide by the guarantees of the original policy the “devil may be in the details.” When this happens the new carrier generally considers this a so-called “closed” book of business, a severely restricts your future options.
What options do I have?
The short answer is “yes”. While you may feel this is silly, it’s not. Why, because the insurance company has the right (and some say obligation) to deny your beneficiary’s claim based on fraud, and this is a relatively easy way to show that you, the insured, tried to deceive the company when you applied for coverage. Note that policies have a 2 year period of contestability. This means the company may fail to honor a claim during this period based for fraud or suicide. Subsequent to this time, a claim is paid even if the insured failed to disclose an issue, or died by their own hand.
I’m not a smoker, but I enjoy a cigar every once in a while. Should I tell my agent?
The short answer is “yes”. While you may feel this is silly, it’s not. Why, because the insurance company has the right (and some say obligation) to deny your beneficiary’s claim based on fraud, and this is a relatively easy way to show that you, the insured, tried to deceive the company when you applied for coverage. Note that policies have a 2 year period of contestability. This means the company may fail to honor a claim during this period based for fraud or suicide. Subsequent to this time, a claim is paid even if the insured failed to disclose an issue, or died by their own hand.
Why do premiums vary so much?
This usually has more to do with the insurance company than it does with you. Assuming the same health category, you may find premiums differ by 100% or more. While logic may tell you the stronger the carrier, the higher the premium, just the opposite can be true. Today, stronger insurers are using their clout to increase market share. Premiums can also depend on the investment yield the company has experienced, their average bond maturity, mortality experience and other factors. All good reasons to shop before you buy.
How strong is the insurance company?
This usually has more to do with the insurance company than it does with you. Assuming the same health category, you may find premiums differ by 100% or more. While logic may tell you the stronger the carrier, the higher the premium, just the opposite can be true. Today, stronger insurers are using their clout to increase market share. Premiums can also depend on the investment yield the company has experienced, their average bond maturity, mortality experience and other factors. All good reasons to shop before you buy.
What is the first step?
Talk to an experienced independent agent who deals with many carriers. Ask for references, and check the agent’s disciplinary record. All states have these records displayed on their insurance department website. Like the purchase of any important asset, let the buyer beware.
About the Author:
Leonard Robbins has worked in financial services for over 30 years; first as a stockbroker with major NYSE brokerage firms and later owning a securities firm which specialized in investments and insurance for individuals and small businesses. You may contact him at LifeNet Insurance
Tags: cheap insurance, guaranteed insurance, guide to life insurance, life insurance quote, smokers insurance, universal life insurance, whole life insurance
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Sunday, August 16th, 2009
by Michael Cobbs
It is a fact that all of us perish in the end and this is why it is crucial to think about burial life insurance. It is important to ensure that all the debts and cost relating to death are sorted out sooner rather than later. This will give you peace of mind and create less hassle for those loved ones who are left to organize. By having these kinds of policies you can rest easy in your bed at night, knowing that everything is taken care of, as it provides the funds you need.
The type of burial life insurance you can have differs and so it is important to know what you want before you start any kind of policy. There are vital differences between the policies you can purchase and there may be some stipulations that you have to follow. Read on to find out more information about the various types of burial life insurance that you can have.
It is a common misconception that they only type of burial insurance you can get is to specifically cover funeral costs for things such as graveside services – and nothing else. There are others, but you can indeed purchase this type of policy which is called a “Pre-Need Insurance Plan”. It will solely only pay for costs associated with your funeral and cannot be used for payments towards anything else. This plan is widely available from funeral homes and the beneficiary can only be a specified funeral home. This way they can ensure that the funds are used for the purpose of the policy. A funeral director can meet with you to arrange the requirements for the actual day and so set your mind at ease. It is recommended that you carefully scan the documents that you are given; it is important to confirm that there will not be any further costs in the instance of your death. The main benefit of this type of plan is that you know that all of the necessary arrangements are in place; friends and relatives can spend the day concentrating on saying goodbye to you.
Burial Insurance and Final Expense Insurance are one in the same thing. With these policies you can ensure that your funeral costs are met but any other debts and payments can be made from the funds too. It is also possible to name the beneficiary, unlike the Pre-Need Insurance Plan. You can stipulate where the money is to be used or just leave it as a lump sum to be divided up after your death. These burial life insurance policies can be found through life insurance agents and can even be bought online.
The last option of burial life insurance available is known as Insurance with No Physical Required. This type is generally the first choice of those who range from the ages of 50 to 80, who are in a reasonable state of health. As well as using the money for graveside services, cremations or a traditional funeral, it can be allocated to pay off debts including things such as medical bills and mortgages.
If you are in reasonable health you can take out what is known as a simplified policy option. It is typically the case that the insurer will start a policy without asking for you to have a medical examination or answer queries relating to your medical history. The payment amount that you will be asked to make will be small but must be paid on time. In the event of your death the death benefit will be paid out to the beneficiary as soon as possible.
If you do have an existing medical condition, then you could take the guaranteed policy option. This means that the insurer may stipulate a waiting period before any funds are released. If you die before this period has ended then your premiums are returned. If you die after this period has ended, then the death benefit will be paid out as normal. Generally the waiting period totals two or three years and the premium may be slightly higher than that of a simplified policy.
Whichever type of burial life insurance policy is convenient for you, it is important that you start to think about your death as early as possible. It is best to have all of the arrangements in place for any type of funeral, from cremations to graveside services. You can contact the appropriate providers in person or browse the internet to find their websites.
About the Author:
No site but FuneralInsuranceCost.com gives you all the tips and info on final expense and related subjects. Whether you are new to the subject or an expert, make sure to check out funeral costs by following the links above !
Tags: affordable life insurance, burial, Burial Life Insurance, death, dying, final expense, funeral, Funeral insurance, graveside services, life insurance
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Friday, August 14th, 2009
by Leonard Robbins
Most people consider cost the primary reason for choosing one insurance policy over another. While certainly important, there are additional and by no means less important factors. Among them are some questions to consider.
Why do premiums vary so much?
This usually has more to do with the insurance company than it does with you. Assuming the same health category, you may find premiums differ by 100% or more. While logic may tell you the stronger the carrier, the higher the premium, just the opposite can be true. Today, stronger insurers are using their clout to increase market share. Premiums can also depend on the investment yield the company has experienced, their average bond maturity, mortality experience and other factors. All good reasons to shop before you buy.
I’m not a smoker, but I enjoy a cigar every once in a while. Should I tell my agent?
In today’s uncertain financial climate the quality of your insurance company takes on new meaning. While no insurance company simply goes out of business due to highly regulated reserve requirements of the various states they operate in, those carriers in danger from poor investment results or real estate loans may well be taken over by stronger carriers. While this generally means the new owner will abide by the guarantees of the original policy the “devil may be in the details.” When this happens the new carrier generally considers this a so-called “closed” book of business, a severely restricts your future options.
Why is convertibility so important?
Typically, our health declines with age. We may gain some weight, take a medication or two, or generally not be in the same shape we were at a younger age. However, once you have a term policy in force, you have “locked in” your health category with regard to convertibility. Many people drop their term policies only to find their new options severely restricted.
Why is convertibility so important?
The short answer is “yes”. While you may feel this is silly, it’s not. Why, because the insurance company has the right (and some say obligation) to deny your beneficiary’s claim based on fraud, and this is a relatively easy way to show that you, the insured, tried to deceive the company when you applied for coverage. Note that policies have a 2 year period of contestability. This means the company may fail to honor a claim during this period based for fraud or suicide. Subsequent to this time, a claim is paid even if the insured failed to disclose an issue, or died by their own hand.
How strong is the insurance company?
Typically, our health declines with age. We may gain some weight, take a medication or two, or generally not be in the same shape we were at a younger age. However, once you have a term policy in force, you have “locked in” your health category with regard to convertibility. Many people drop their term policies only to find their new options severely restricted.
What is the first step?
Talk to an experienced independent agent who deals with many carriers. Ask for references, and check the agent’s disciplinary record. All states have these records displayed on their insurance department website. Like the purchase of any important asset, let the buyer beware.
About the Author:
Leonard Robbins has worked in financial services for over 30 years; first as a stockbroker with major NYSE brokerage firms and later owning a securities firm which specialized in investments and insurance for individuals and small businesses. You may contact him at LifeNet Insurance
Tags: cheap insurance, guaranteed insurance, guide to life insurance, life insurance quote, smokers insurance, universal life insurance, whole life insurance
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