Life Insurance Journal

Life Annuity Protection

2009-07-09T11:11:00.001-04:00

If I purchase a life annuity or life annuities from a large life insurance company in Canada,what protection do I have for my income and capital?

If you purchase a product from a life insurance company which is a member of Assuris, you are protected by Assuris. If your member life insurance company fails, your life insurance policy will be transferred to a solvent company.

A Life annuity policy that pays a monthly or annual income benefit, is protected under Assuris’ income protection. On transfer, Assuris guarantees that you will retain up to $2,000 per month or 85% of the promised monthly income benefit, whichever is higher. Registered and non registered benefits are protected separately. A joint life policy is protected separately and in addition to the individual lives.

Ownership is not relevant as the protected person is the annuitant ,the individual who is receiving the life annuity benefit.

Is it legal to have two life insurance policies?

2009-07-09T09:22:00.000-04:00

Is it legal to have two life insurance policies?

Yes,you may have,at least in theory,as many life insurance policies as you wish.

And it is certainly a good idea to at least review your life insurance policies at each major life change.You may get married,someone dies,a child is born and events like these could lead you to review your existing life insurance policies

Life Insurance: What to Look For in a Life Policy

2009-06-11T14:00:00.001-04:00

Life insurance means that you are protecting yourself and your loved ones. But how can you be sure you are choosing the best life insurance policy?

6 REMINDERS OF WHAT IS IMPORTANT IN A LIFE INSURANCE POLICY.

1. Choose a company that is strong and stable. When you buy a life insurance policy, you want to be sure the life insurance company will be there when you need it. Check the life insurance companies for a good record.

2. Choose a life insurance company with a good back record and experience. You want to buy a life policy from a reputable company which you can prove that it has stood the test of time.

3. Deal with an experienced professional. Choosing the right life insurance professional is a crucial step in helping you achieve your life insurance goals.

4. What do you want your life insurance to do for you? Do you want a life policy that allows you to access cash value in the future or just provide protection. When it comes to life insurance, one size does not fit all.

5. Choose from all the life insurance companies quoting. That is the only way to get the cheapest life insurance premiums.

6. Make sure your life insurance keeps up with your life changes. As your life changes, so do your life insurance needs.

FAQ on Life Annuities

2009-06-05T10:17:00.001-04:00

Question: Are registered annuities considered life insurance products and are the proceeds at time of death tax exempt?

Answer: Life insurance companies issue registered life annuities. The proceeds at
death are not tax exempt.

FAQ on Life Insurance

2009-06-04T11:19:00.000-04:00

I am looking for an insurance - life/ term insurance + mortgage insurance +
content insurance + house insurance.

I am buying a new townhouse, closing will be on 1 August. My lender offers
me life+mortgage insurance but their rates are high.

I have some life insurance from my employer. I need an additional coverage.
I prefer to buy a package including all insurance I need.

I live in Kamloops BC. I am 48 (will be 49 soon); female,on-smoker, healthy.
Please let me know what information you need from me to send me a quote.

Good morning and thanks for the inquiry.

Life and term insurance and mortgage is the same product; just named differently
for marketing purposes.The other insurances are general and will be handled
separately as there are different risks entirely.

I am giving you a link where you will see a list of all the premiums for the
amount you want.Of course you can call me to discuss any time at,toll free,
1 877 842 3863.

Types of Life Insurance

2008-12-06T15:09:00.000-05:00

There are different types of life insurance available to financially protect your family in case of death of you, your spouse or your child. Insurance policies can range from just covering funeral costs to replacing the salary that would have been earned if the insured had not died. Some of the types of life insurance are term life insurance and permanent life insurance. This kind of financial protection keeps people in their homes, food on the table, children in college and many other financial burdens at bay when a loved one has died.

What is Term Life Insurance?

Term life insurance is an insurance policy that covers a specific period of time. When the policy ends, the insured would need to renew his or her policy. Having a life insurance policy for only one year is possible with term life insurance. The premiums for a term life insurance policy are typically more affordable than a permanent life insurance policy. Unlike a permanent life insurance policy, with term life insurance your policy will not have any cash value.

What are the Options With Term Life Insurance?

You can purchase a policy for a term of one year. At the end of that year, you would need to purchase another policy. Each year, as you get older, your premium will go up or you may become uninsurable. For these reasons, there are two options for term life insurance that you may want to consider. The first is called an annual renewable term life insurance policy, this policy will guarantee that you can renew your policy for a set number of years such as 10 or 20 years. The second is guaranteed level premium term life insurance. Your premium will remain at a set price for a period of between 10 and 30 years. These two policies will carry a higher annual premium from the beginning to off-set the fact that by the end of the set term you may be paying a lower premium annually than you would if you had just purchased a one year term life insurance policy year after year.

How do I get a Term Life Insurance Policy?

Contact an insurance agency or your insurance agent to get a quote on premiums for term life insurance. Some of the factors that will determine your rate are age, health, whether you smoke, and the amount you would like the policy to pay out. Check with other companies also, if you feel the rate is too high.

Take care of your loved ones by providing financial security for them with term life insurance.

Finding a Good Term Life Insurance Quote

2008-12-05T15:19:00.000-05:00

If you have been looking at term life insurance lately, then you know that there are many different types of term life insurance. You know that getting a good term life insurance quote, is determined by what you want in your insurance policy and how long you plan on being covered for. First let’s define what “term” is. “Term” means that there is a specific time period in which you will be covered. When that time frame ends so does the coverage, and you get no value for the money you have put into the policy.

There are many different types of term life insurance policies and you need to know this when you talk to a company and ask for a term life insurance quote. There are policies that only cover you for a five year period, while others can cover you for as long as 30 years. You should also realize that the longer coverage is going to cost more. There are different quantities that the coverage covers, and this depends on the amount you choose.

How Do Insurance Companies Factor Price of Their Insurance Quotes?

The cold hard truth is that insurance companies work off of statistics and probabilities. The longer you live and the older you are, the higher your probabilities are of dying sooner. So, if you are a certain age, an insurance company may only offer term coverage for a small number of years, say 5. If they do offer longer policies your insurance quote is likely to be much higher. On the other hand if you are in your 20´s, the probabilities of you living another 30 years are higher, so an insurance company is more likely to offer you a longer time frame in a policy, at a smaller price.

Getting the Right Term Life Insurance Quote

There are ways you can get a better deal on your insurance quote. First you should get quotes from more than one agent. You can also look online for a good quote, but try for sites that give you an instant quote. Otherwise you will have a ton of agents calling you every day.

When you get an instant quote you get information from several reliable insurance agencies, and you can make an instant decision as to the best type of insurance for you.

Make sure you pay attention to monthly payments, and to the term the policy is for. You want to really think about the type of coverage you need too. Be sure you get enough term life coverage to help your family and cover their needs, if something should ever happen to you.

Types of Life Insurance

2008-12-04T15:08:00.000-05:00

There are several types of life insurance policies available to the public. Choosing the right one for you and your loved ones should be based on your own specific needs.

Whole Life Insurance

Whole life insurance is a type of insurance that covers your entire life. Your premium will remain level and your benefits or coverage will decrease over time, with age, as your risk of dying becomes greater. The benefits are similar to term life insurance except that it covers the entirety of your life.

Universal Life Insurance

Universal life insurance in a policy that allows you to cash in on your own life insurance. You have the ability to pay more than the premium to create a cash value that you can borrow against. If the cash value is not touched, it will most likely go to the beneficiary upon death of the policy holder. Generally the investment is restricted to bonds and mortgages.

Variable Life Insurance

Variable life insurance is almost identical to universal life insurance, except that you have more options when it comes to choosing your investment vehicle. For example, with a variable life insurance policy, you have the ability to use stock funds as an investment product.

Term Life Insurance

Term life insurance is a personal life insurance that covers a specified period of time. In the event that you do not need to use your insurance, your premium would not be paid back to you. It is mainly geared toward younger adults who take out a term life insurance policy to cover expenses like funeral, mortgage, and loss of salary of the policy holder in the event of their death. There are different terms that you can pick but they usually don't last any more than 20 years. Term life insurance policies are not renewable. Most policies contain a suicide clause which terminates the policy if you take your own life within approximately three years of beginning the policy. When it comes to term life insurance, as you age, your coverage decreases. For a 70 year old that has had a 20 year, million dollar life insurance policy, their premiums will stay the same, month to month, but by the time they reach the age of 70, their policy may only be worth 500,000. There are many term life insurance plans that offer no medical exam. Term life insurance has many benefits as it is the most flexible when it comes to your previous health than most other types of insurance policies.

Finding a Good Term Life Insurance Quote

2008-12-03T13:01:00.000-05:00

If you have been looking at term life insurance lately, then you know that there are many different types of term life insurance. You know that getting a good term life insurance quote, is determined by what you want in your insurance policy and how long you plan on being covered for. First let’s define what “term” is. “Term” means that there is a specific time period in which you will be covered. When that time frame ends so does the coverage, and you get no value for the money you have put into the policy.

There are many different types of term life insurance policies and you need to know this when you talk to a company and ask for a term life insurance quote. There are policies that only cover you for a five year period, while others can cover you for as long as 30 years. You should also realize that the longer coverage is going to cost more. There are different quantities that the coverage covers, and this depends on the amount you choose.

How Do Insurance Companies Factor Price of Their Insurance Quotes?
The cold hard truth is that insurance companies work off of statistics and probabilities. The longer you live and the older you are, the higher your probabilities are of dying sooner. So, if you are a certain age, an insurance company may only offer term coverage for a small number of years, say 5. If they do offer longer policies your insurance quote is likely to be much higher. On the other hand if you are in your 20´s, the probabilities of you living another 30 years are higher, so an insurance company is more likely to offer you a longer time frame in a policy, at a smaller price.

Getting the Right Term Life Insurance Quote
There are ways you can get a better deal on your insurance quote. First you should get quotes from more than one agent. You can also look online for a good quote, but try for sites that give you an instant quote. Otherwise you will have a ton of agents calling you every day.

When you get an instant quote you get information from several reliable insurance agencies, and you can make an instant decision as to the best type of insurance for you.

Make sure you pay attention to monthly payments, and to the term the policy is for. You want to really think about the type of coverage you need too. Be sure you get enough coverage to help your family and cover their needs, if something should ever happen to you.

The Term Life Insurance Quote Process

2008-12-02T12:57:00.000-05:00

Once you are married and have children your top priority becomes that of protecting your family. You want to make sure they are never left wanting. You want to be sure that they can cover living and educational expenses should anything happen to you, or should you pass away. One of the best ways of doing that is by getting term life insurance. But how do you find the right term life insurance quote?

Actually getting a good term life insurance quote is not all that difficult, you don’t even have to know too much about the insurance world to get a decent policy. Most of the time you can find a good term life insurance quote right online, from an insurance company that has an online presence.

Term life insurance is much cheaper than whole life insurance because of the type of insurance policy it is. Your family can only collect if you should pass away within the time frame which you have the term life insurance policy in place.

If you have no life insurance, and your company doesn’t help pay for it, then term life is a great option. You can even start out with term life and then change it over to a whole life insurance policy with most reputable insurance companies.

The term life insurance quote you get will depend on the type of policy you get. It will depend on the number of years you want the policy for, and on the amount of payout you want from the policy. It will also depend on your current age. The older you are when you get term life insurance coverage, the more expensive the policy will be.

For instance, a 30 year term life insurance policy for 1 million will be more expensive than a 5 year policy for the same amount. And a policy that covers you for $50,000 for ten years will be less expensive than a policy for $100,000.

Before getting a Term life insurance quote, you should first decide on how long you want to be insured for. Do you want a 5 year coverage, 10 year, or 30 year? Remember the older you are when your coverage runs out, the harder it will be for you to get another term life insurance policy.

Then you should decide on the amount of coverage you need. You need to replace your income, but you also need to cover costs like educational costs, etc.

Have all of these questions settled in your mind before you go looking for quotes. Then you can go online and search for term life insurance quotes. You will see that several companies appear in your search.

You will have to fill in the requested personal information to get a true quote. But you can get quotes from several companies online, then compare what they offer with their price. Be sure you get quotes from reliable, long standing companies. You don’t want to purchase a policy, pay it diligently, only to find that the company goes bankrupt somewhere down the line.

This is all there is to finding a great term life insurance quote. It takes a little diligence, some reading and time to figure out what you want, but the process is pretty simple, and can be done from the comfort of your home.

Types of Life Insurance Pt 6

2008-12-01T11:10:00.000-05:00

Sorting through coverage information to decide which type of life insurance policy is best for you can be confusing. You want to find the best life insurance at the most affordable rate, but calculating the return of premium on a short versus long term insurance plan is best done with the help of a qualified agent.

The Difference Between Whole and Term Life Insurance

Whole life insurance policies, as the name implies, are purchased to cover your whole life, while Term life insurance is purchased for a specified period. Term life insurance , sometimes called death protection only life insurance, can be purchased in increments from one to 30 years, and upon death of the policy holder, pays the face value of the policy.

While term life insurance premiums are low for the stated period, the cost of renewing at the end of the term may be substantially higher. The premiums of whole life insurance, on the other hand, are the same throughout the life of the policy.

Insurance companies offer several types of whole life insurance and vary in the way they invest the premiums . Some allow you to pay above the minimum and let the policy holder choose the way it’s invested.

Determine the Amount of Whole or Term Life Insurance Benefit Needed

There are several factors to consider when trying to determine the amount of life insurance to purchase, including, but not limited to:
* Funeral expenses
* Debt pay off amount
* Amount needed for college funds
* Amount needed for survivors living expenses
* Mortgage payoff
* Value of current assets

The length of time it will take for your survivors to be self supporting must also be taken into consideration before you finalize the life insurance policy.

Convertible Term Life Insurance

If you only feel you need a large amount of insurance until your children are grown, through college, or until the mortgage is paid off, a term life policy for that amount of time may be a part of your complete financial plan.

Some term life insurance policies allow a conversion feature. Seek the advice of insurance agents to see if the possibility exists to obtain less expensive term insurance for now, and if financial or family circumstances may change in the future, change part or all to a permanent plan. Check to make sure the company allows the change with no medical exam.This also applies to term life policies.

Types of Life Insurance Pt 5

2008-11-30T11:04:00.000-05:00

A life insurance policy is a legally binding agreement between the policy holder, and the insurance company. The policy is the document that describes the details of the contract between the parties involved.

There are two basic types of life insurance, temporary and permanent. These two types can be separated into separate subdivisions. Namely: endowment, term, universal, variable universal, and whole life.

Endowment:
Endowment policies are contracts that build up cash value. Endowments are a permanent option. This value equals the death benefit, at a given age. The endowment age is a pre established age that the policy pays the face value. The advantage is that the endowment is paid, whether the insured lives or dies, providing the insured lives to a predetermined, specific date. This type of policy could be considered a form of retirement plan.

Term Life Insurance:
Term life insurance policy is based entirely on a specific term. The term is a temporary situation. The insured purchases the plan for a fixed premium, and a fixed term. At the end of the term, usually 5 to 30 years, the insured may purchase an additional term. At this point, the premium may increase, or the benefit may decrease.. This type of life insurance does not generate income at a later date. It is only payable in the event of a death.

Universal Life Insurance:
Universal life insurance was created in order to offer a greater flexibility option in terms of premium payments as well as the probable high rate of return. Universal life is a permanent solution. A universal plan typically includes a cash account. A portion of the premiums is added to the cash account. This could be considered as another form of a retirement investment. The policy itself indicates a either fixed or a variable interest rate on the insured’s investment.

Variable Universal
Variable universal life insurance is a type of insurance that has its advantages with respect to tax exemption. The policy holder creates an account with the insurer. The insurer then creates an account with a financial expert, usually within the same company. The account is then used to buy stocks. In the event that the stocks that the policy holder does well, then the insurance premiums are paid within the accounts. If the investments do not do well, it is up to the policy holder to make the payments himself. The advantage is that the policy holder can generate capital gains, without a tax liability. This is a permanent option.

Whole Life Insurance
The Whole life option is a basic plan. The insurer provides a table of what the policy is worth and when. The premiums are constant. The policy holder can opt to purchase Riders, which will provide maximum benefits, in the event of an accident, and the like.

Types of Life Insurance Pt 4

2008-11-29T10:00:00.000-05:00

There are three basic types of life insurance: term life insurance, whole life insurance, and universal life insurance. Whole life and universal life each use some of the insurance premiums to fund investments for the policyholder. These investments build a cash value, but require larger premiums than term life insurance. Term life insurance, however, uses the entire premium to buy insurance coverage. That is why term life insurance will provide more insurance for the same amount of money.

Term Life Insurance Explained

Term life is an insurance policy that provides life insurance for a year, or a set number of years, for a set premium. Term insurance does not build a cash value. Because term life only provides protection in the event of death it is just insurance and nothing else. There are no decisions required regarding investments or loans against the cash value. There are just three things to compare on a term policy insurance quote: the death benefit, the annual premium, and the amount of time the insured is covered. The benefits can remain level or change, the premium can remain level or increase, and term can be for one or more years.

Annual renewable term life insurance

The best type of life insurance may be annual renewable term life insurance. It is a one year policy that the insurance company will guarantee to renew at the end of the year regardless of the insurability of the insured. Rates for renewable term insurance policies start low, but then may rise over the life of the person. The policy is usually guaranteed to be renewable each year for a predetermined number of years. Depending on the policy this could be from ten to thirty years, and does not change even if the insurability of the insured does.

Renewable Term Life Insurance

Renewable term life insurance is a good choice for providing coverage of personal financial needs or responsibilities. If the insured should die before the term ends then the policy pays out to the estate or the beneficiaries. Caring for dependents, providing a dependent with money for college, paying off a mortgage, and paying for funeral costs are some of the reasons for buying insurance. These cost too much for most people to afford after the loss of the primary wage earner, but life insurance provides them with a solution, and annual renewable term life insurance will provide the largest benefits for the money.

Term Life Insurance

2008-11-28T10:45:00.000-05:00

It is important to buy a term life insurance policy to protect your finances in the event of an accident or diagnosis of a dreaded disease or critical illness. You can get free term life insurance quotes from term life insurance companies. Our term life insurance gives you the best term life insurance rates possible with the various types of life insurance.

Term Life Insurance for your Family

It is a wise decision to buy term life insurance for your family and loved ones. As most of us live from paycheck to paycheck and budget life, we can get more coverage for our money.You need to make sure that your term life insurance coverage,when invested,produces enough after tax income, to replace your financial support.

Choose the Best Term Life Insurance

The best term life insurance is one that is affordable and we should be able to continue to pay in case we lose our jobs or be retrenched. Before buying term life insurance, it is best to check with a few life insurance companies for the best coverage and best deals at minimum cost of premium. It gets more expensive the heavier we are, if we smoke, increase in age or drink too much.. You can pay annually which is cheaper or monthly which can be paid by credit cards with a lot of life companies. Most policies do not require medical examination for a minimum amount of life insurance coverage and based on your declarations.. So it is very easy to buy term life insurance

Get Protected With Term Life Insurance

Based on your age and health, the premiums may vary.. For the policyholder, this is the best investment decision you can make. The insurance agent can give you financial advice on which is the best policy to purchase for your family to get the full protection at an affordable price. The death benefit that your next of kin receives means they don,t have to worry about finances and payments. You can also use a calculator to check your savings with term life insurance as opposed to whole life insurance in the next 10 to 20 years.

Types of Life Insurance Pt 3

2008-11-27T10:40:00.001-05:00

Are you confused by the different types of life insurance? If so, you are not alone. While protecting your loved ones in the event of your untimely death is an absolute necessity, it is one that many otherwise conscientious people put off because they feel they don't have enough information to make an informed decision.

Whole Life and Universal Life Insurance

Whole life insurance is a permanent policy that will last as long as you live or as long as you pay the premium. Not only does this type of insurance offer protection, it also builds cash value. Many people use these policies as a savings account. Universal life insurance is similar to whole life, except that it allows flexibility with rates and premiums. While both policy types offer protection for dependents, they share obvious drawbacks. The most important of these is that they are more expensive than term life insurance.

Term Life Insurance

With term life insurance, the consumer is paying for just life insurance;pure protection. They don't have to worry about investments or whether they are getting a competitive interest rate. Because term life insurance has no investment component, the premiums are much lower for the same premium level as other types. People agree to pay a fixed premium for a term of time to be insured over that time. Most financial advisors recommend this type of life insurance.

Protection You Can Afford

If you want to protect your family and children by getting the highest level of life insurance you can afford, term life insurance is the perfect choice for you. Many people have found the right company and policy for by using an online calculator. Others like to get advice from a real agent. There are a wide variety of options for people who want to protect their family's future.

"Do I Qualify for Term Life Insurance?"

Many people wonder if they can become a policyholder if they fall into certain categories. Whatever your specific situation, there is sure to be a company and policy that is just right for you. For example, some companies will not insure a smoker or someone with an unfavorable medical history, while others will. Some will not insure people without a medical exam, while others instantly approve everyone who puts in an application.

Dying is not just traumatic for those left behind, but expensive. Survivors are left to pay medical bills, funeral bills, and still deal with everyday bills like a mortgage. It is essential to plan ahead with apolicy like term life insurance.

Choose Your Best Term Life Insurance With Care

2008-11-19T15:11:00.002-05:00

Term life insurance is suitable for those who wish to get life insurance with a limited budget as this type of life insurance, being affordable, provides you with outstanding coverage. It is in fact different from those type of life insurance policies, which charge you with large premiums With term insurance, the only thing you are required to pay is a small amount of premium which insures you for a fixed period of time.

Types of Term Life Insurance

Term life insurance, today, provides you with a lot of choices. There are many kinds of term life insurance such as straight term, decreasing term, increasing term, non-renewable term, renewable term, non-convertible term, convertible term and many more. So it is important for you to choose the one which suits best to your needs.

Salient Features of Term Life Insurance

Term life insurance provides you with flexible premiums and terms. The amount of money to be paid will not rise or fall depending upon the changes in company’s persistency, investment earnings, expenses and mortality. But the premium can not increase above a fixed amount stated in the policy. It is best for younger people looking for some cheap insurance as the premiums increase with the age of the insured. These policies guarantee death benefits and involve lesser complications at the time of claim.

Term life insurance provides an instant death benefit for the least amount of premium as compared to other traditional life insurance policies. Hence term life insurance is considerably less expensive and can be afforded easily by the consumer. Term life insurance covers a person for a fixed period of time such as ten years, 20 years or 30 years. As the name itself states, it is a temporary kind of insurance, for a limited span of time.

Term life insurance has a wonderful feature called a convertibility benefit, which allows you to convert your existing term policy into a permanent insurance policy. The best part is that in doing so, you do not even require a further medical exam.

Decreasing term life insurance helps in covering mortgage debts. An online search can help you to find and compare the quotes of different companies. Term life insurance is in fact one of the best deals available in the market and is often recommended by agents or brokers.

How Much Term Life Insurance Coverage Do you Need?

2008-11-17T11:13:00.002-05:00

If you have seriously thought about buying a term life insurance policy, then you are on the path toward protecting your family, in the event of your passing away. The problem that now another question may be gnawing at you. How much life insurance should you get?

As a rule of thumb, some life insurance financial advisors will tell you to multiply your actual income by seven. But still other advisors tell you to only buy a term life insurance policy to replace your current income, and others will tell you, that you only need enough insurance to cover you debts. Now which do you think is the real truth?

Every Term Life Insurance Policy is Different to Meet Different Needs
The truth is that everyone is different, so before you head out the door looking for that term life insurance quote, you need to analyze your personal situation and determine which is the best policy for you. So, getting the right term life insurance policy means you need to really sit down and do your finances. You need to think about the amount of money your loved ones will need to continue with their current life style. You should also think about future college cost, etc. The following method will help you determine the real amount of term life insurance coverage you will need.

Determine Short Term Life Insurance Needs
First you should determine what your family’s short term needs will be. This means determine what the final expenses, the outstanding debt and what the emergency expenses will be. You need to figure out the amount that should be covered for attorney fees, court costs, and taxes.

Determine Long Term Life insurance Needs
Next you need to cover your long term debt. By this we are talking about mortgage costs, college tuition etc. You can use college projection costs to determine the cost of college tuition. It is estimated that the cost of college rises by about 5% every year.

Every Day Needs
Then you need to determine what the family maintenance cost is going to be. This includes food, clothes, utilities, transportation and entertainment.

Think About Your Resources before Ordering Term Life Insurance
Once you have all of the numbers that tell you what income you need, then you have to figure out what your existing resources are. This means add up your savings, scotch, social security benefits, etc.

Realistic Term Life Insurance Coverage
To get a true estimate of what type of term life insurance coverage you want, you will need to subtract your resources from the needed income. This is the amount of coverage you really need. This way you don’t have to buy a term life insurance policy that is too large and you don’t get stuck with “too little” coverage either.

Once you have determined your needs, then you are ready to shop around and get different term life insurance quotes. The amount you pay will be adequate for the amount of term life insurance you buy.

Is a Term Life Insurance Policy Really Necessary?

2008-11-16T11:12:00.002-05:00

We have all seen the disasters that happen! The news broadcasts them day and night! We’ve seen the unexpected plane crash, the tornado victims, the car pile ups, the store shoot outs! So why are we blinded by these events, and why do we assume that nothing like this will ever happen to us?
Tell me, when was the last time you even thought about getting a term life insurance policy? If you are like many, you don’t think about it, and continue on with your daily activities, assuming that nothing will ever happen to you. But what if it does? Do you have children, a spouse? Do they need the income you bring in? What would they do, if you weren’t available? How would they survive? Do you really want to leave these questions unanswered…?

SHOPPING FOR TERM LIFE QUOTES

Have you ever shopped for term life insurance quotes? Have you shopped for whole life insurance quotes? Anyone that has looked around online, can easily be confused by the two different types of insurance policies. Obviously the premiums for term life insurance are lower, than the premiums for whole life insurance, but why?

Finding the Right Type of Life Insurance policy

Now that you know that life insurance is a necessity. If you want to provide well for your family, its time you choose the right type of insurance policy for you, or, for both you and your spouse. This is not a decision that can be taken lightly. The wrong type of life insurance can hurt your financial future. Let’s define what term, whole, or a combination of both life insurance contracts are, and how they can help you.

Details Of Life Insurance Plans

Term life insurance policies are insurance plans where you pay a low monthly or yearly payment, and in exchange the insurance companies pay the amount agreed upon at the signing of the contract, but only in the event that you should die. This type of life insurance plan does not return any money to you and there is no value to the policy itself, except for the death benefits. The advantage is that it is a relatively inexpensive plan. If you do decide to buy term life insurance, then you want to find a plan that is renewable, or that is a longer term. Most long term life insurance plans are going to be a bit more expensive than short term life insurance coverage.

Term Life Insurance Vs. Whole Life Insurance
Ok, we have gone over what term life insurance is, but now let’s go over what permanent life insurance policies are. Whole life insurance policies offer death benefits, but they are also a type of “savings account.” This means the policy has a cash value, and you can get some of what you paid into it back. You can either cash in the policy or borrow on it. Obviously, this type of policy is more expensive than a term life insurance policy.

Getting Either a Term Life Insurance Quote or a Whole Life Insurance Quote
Getting a life insurance quote is really simple. All you have to do is look online. But be careful, you really need to know what you are buying before you make your purchase. Read about the length of the term, find out if it is renewable, and what the requirements are. In the case of whole life insurance, choose a reliable insurance company and check on the cash value of the policy.

Term Life Insurance Rates

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Term life insurance is the lowest cost life insurance offered on the market today to be able to accommodate anyone’s budget and any age. Term life insurance rates are usually dependent upon age due to these policies only benefit an insured for a period of time determined when the policy is issued. These insurance policies are usually issued with few health questions and seldom are medical exams required to get a policy unless for older ages. However, renewal underwriting sometimes depends on results of a medical exam that evaluates the health of an applicant. Free quotes are offered by life insurance companies and rates may differ considerably. With the existence of so many insurance companies, people seeking coverage should review several companies and compare rates. Low rates are usually offered to younger applicants as well as those who have good health. This is an incentive for individuals to be smoke free as well as physically fit.

Quotes On Term Life Insurance

Those individuals seeking term life insurance can find life insurance companies by phone book, Internet, or friend referral. Quotes with various terms are provided free by phone call or Internet from a majority of insurance companies. Once purchased, term life insurance provides an insured individual a guarantee benefit in the event of death. Only applicants can determine their insurance needs and should not be swayed otherwise by insurance agents.

Term Life Insurance Information

Once an applicant has been issued a term life insurance policy, most insurance companies offer access to policy and benefits online. Consumers of these companies can register online for free to be able to make premium payments or file a claim. These online services offer a convenience to those who have purchased term life insurance and want to keep their policy in force or renew for a higher death benefit. Insurance companies can be contacted through several methods such as by phone, email or mail and offer help on how to use Internet resources to those not familiar with the Internet. This customer service of life insurance companies offers anyone the ability to effectively manage their policy.

Term life insurance has several benefits such as a guaranteed coverage and low costs. With so many benefits, as well as knowing funeral costs are paid with no financial burden for the family means, there is no reason why term life insurance should not be purchased.

Term Life Insurance Questions You Need to Ask Yourself

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Decisions…decisions – Sometimes they can be so hard to make! Do I need life insurance? Which is better, term life insurance or whole life insurance? Because these decisions can be complicated, we often don’t ever really decide, and just let things stand as is. If the thought of whether you need life insurance or not, doesn’t bother you, maybe it should! Maybe it should bother you enough to really analyze whether you need it, or not! Don’t worry! Not everyone needs life insurance, so you may fall in that category of the population. But before deciding, you should really ask yourself some important questions.

Does Everyone Need Either Whole Life, or Term Life Insurance?
No, not necessarily! Not everyone needs life insurance. The main reason you buy life insurance, is to protect loved ones that depend on your income. So, term life insurance would replace your lost income for them, if you should pass away. This gives your spouse and children great peace of mind.

If you don’t have any children, and aren’t married, then you probably don’t need either term life insurance, or, whole life insurance. If you are married, and each of you works and earns a decent income, then you probably do need to get some term life insurance quote in anticipation of children or debt obligation.

If you have a child, that child probably doesn’t need any type of life insurance contract in his name, as loss of child is emotional not financial.

Do I Need Term Life insurance if I Don’t Work?
Many people believe that they don’t need any type of life insurance, because they aren’t in the work force. But if something should happen to you, as the stay at home parent, your spouse will have to hire someone, or use some type of care service for your children, and this could cost as much as $20,000 a year, or more.

Will I Ever Need Term Life Insurance?
Hopefully, you won’t ever need it! Because most people who are still in the work are in good health, some people just decide to take their chances, and avoid making a decision with regards to term life insurance or whole life insurance. It’s also why any term life insurance quote you get, if you are still working, will be a small monthly or annual payment. Most term life insurance policies run about $200 a year, if you are in your 20´s and 30´s. You want life insurance, just in case something does happen to you, so that your family will be cared for. You cant ever be sure, that you wont have a car accident, a plane accident, or any type of personal injury accident. You better be prepared. You want to be able to provide well for your family, in the event of something happening to you.

The point is that acting like an ostrich--hiding your head in the sand, and never making a decision on life insurance is not going to get you anywhere. Either you really, need it, or you don’t need it at all. You are the only one that can decide how important it is to you, and whether or not your family is worth providing for, through a term life policy in the event of your passing away.

Term Life Insurance Quotes

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Term life insurance is a major purchase for many consumers. This type of life insurance provides coverage for a limited period of time. Many employers provide some level of term life insurance for their employees.

Who Needs Term Life Insurance?

People who have either insufficient coverage or no coverage through an employer need to purchase a separate life insurance policy. Insurance is not a gamble. Premiums are paid in order to have insurance coverage when needed. Insurance companies employ actuaries to make sure that they will take in more premiums than they will pay out in benefits.

Term life insurance is usually more affordable than whole life insurance for younger people, because it is cheaper. As people get older, they will need to pay more for term life insurance, and may not be accepted by some insurance companies. There comes a point in life where it makes sense to buy a whole life insurance policy that does not expire, so that one will be covered in old age when insurers may decline new policy coverage due to age and health reasons.

How to Get Better Term Life Insurance Quotes

Get better term life insurance quotes by shopping around. Do not just accept the first quote that you receive from a carrier to insure you, your spouse, or your child. Many term life policies are offered online.

A number of life insurance companies offer internet users the chance to apply for term life insurance while online. Often there is no medical exam requirement in order to qualify for a policy. Coverage may be offered for a term of 5, 10, 15, 20 or 30 years, although this depends on the age and health of the applicant.

When applying online for term life insurance, the carrier will ask some health-related info questions. Be truthful in answering these questions. If it is later determined that answers are not honest, the insurer will not cover the claim. The financial health of the insurer’s business requires it to manage its business profitably.

While there is nothing that can be done to make an applicant’s age younger, it is always a good idea to do everything possible to improve one’s health. In some cases, those with poor health will not even be offered coverage. Remember better health will save you money on rates for term life insurance.

Types of Life Insurance

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There are many types of life insurance available on the market today, and choosing among them can be difficult. With that in mind, one should seek the life insurance product that best fits one's situation and needs.

General Information on Term Life Insurance:
Term life insurance is one of the most widely available and useful life insurance products on the market today. In general, the term life product is more affordable than whole life or universal life products, which allows one to obtain a larger face amount or death benefit for a lower amount of premium. Rates for term life insurance are driven by a number of factors, primarily the age of the insured, the face amount of the policy and the rating tier of the policy. Most companies have a rating tier system by which they rate their life insurance applicants. Younger applicants who are healthy and who are willing to have a paramedical screening in which their blood pressure, pulse, etc. are verified by a health professional, will get preferred rates which are lower than the standard rates.

Types and Uses of Term Life Insurance
A very common type and use for term life insurance is a mortgage protection policy. The basic logic behind the mortgage protection policy is to obtain a term life policy that matches the amount of one's mortgage to pay it off in the event of one's death. For example, if one has a two hundred thousand dollar mortgage on a thirty year term, then one would get a corresponding thirty year term life policy with a two hundred thousand dollar face amount. Traditionally, the popular type of term life for mortgage protection has been decreasing term. Decreasing term life policies have a decreasing face amount that falls as one's mortgage balance falls over time. However, this product has fallen out of favor due to the fact that statistically, people do not stay in one house for 30 years and that the premium stays the same, while the benefit or face amount decreases. Many insurance professionals now recommend a regular level benefit, level term life policy for mortgage protection purposes that will be useful at any time in the policy period.

Term Life Insurance: Summary
Younger applicants will always get better rates than older applicants and those with medical conditions regardless of the insurance company. Some medical conditions such as forms of diabetes will prevent an applicant from obtaining a standard term life insurance policy.

How to Find the Best Term Life Insurance

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Choosing the right kind of life insurance can be difficult. It is especially difficult if you don’t understand the difference between term life insurance and whole life insurance is, and why there are different term life insurance rates for different policies.

What is Term Life Insurance?
Term life insurance is a type of life insurance policy, but there is only a certain period of time in which the owner has coverage. When that time period ends, then the coverage also ends. This doesn’t really mean you should worry because many term life insurance policies offer coverage to people well into their 70´s and 80´s, but the yearly policy price also increases, and you need to be aware of that. There are also policies that can convert into whole life insurance policies. You should ask about this when you get a term life insurance quote from an agent.

Finding the Best Term Life Insurance Policy
When you are looking for the best term life insurance policy for your money there are several key elements you want to focus on.

Look at the Length of Time the Policy Covers
Some term life insurance contracts only cover you for a period of 5 to ten years, while other policies cover you for as long as 30 years. Keep in mind that the longer a term is, the more expensive the product will be. This doesn’t necessarily mean “bad.” Obviously, you don’t want to get a cheap policy that will only be expensive in the long run, and you don’t want an expensive one, that won't cover you for a longer period.

Look at the Type of Term Life Insurance Program
There are about five types of term insurance that can’t be renewed, or converted to any other type of life insurance. The policy contract ends when the coverage period terminates, and that is that!
But, there are other types of term life insurance, which can either be renewed or can convert to whole life insurance when the policy owner wants to change the type of coverage.

There are also policies that are renewable. This means it can be renewed at the end of the coverage period without a medical exam. These are called “re-entry” policies. These are among the cheapest type of term life insurance, but you have to meet the “re-entry” conditions, whether those be based on age or on medical conditions.

There are actually many types of term life insurance, and you should consider several options before making a decision. You should also read the fine print of the contract to know what the policy covers and what it doesn’t. To make sure you get the best type of term life insurance.

Types of term life insurance (part 2)

2008-11-10T11:02:00.001-05:00

Life insurance is very important for anyone with dependents to consider. Many people wait until they are old or dying to purchase life insurance, but this can be expensive or impossible as life insurance companies are unlikely to accept applicants they know will die soon. Also, accidents can happen any time, and people of all ages need to protect their families from the perils of an untimely death. Even a simple policy can help one's wife and children cover the cost of a funeral and give them enough money to adjust to their situation. With that in mind, many people purchase term life insurance, especially if they believe that they will be entering a high-risk situation or occupation.

What is term life insurance?

Term life insurance is a type of life insurance which is dictated to provide coverage for a limited time for a single fee. This is generally a once-a-year fee which pays for a single year. The fee is calculated based on the health of the customer and the customer's age; older people in poor health will, of course,pay more than young, healthy people. The advantage of term life insurance is that it costs less than whole life insurance which goes on until death, since of course such a life insurance plan necessitates that the insurer must pay out at some point, and the rates are thus higher.

How do I find good term life insurance?

The simple answer is to shop around. The term life insurance market is vast, and many companies offer it. Term life insurance tends to be a good investment for both the purchaser and the insurance company, since most people take good care of themselves and are in an age bracket that is not likely to die soon. As such, anyone looking for term life insurance can easily get lots of insurance quotes online. Calling the company on the phone and talking to a representative is a good way to find out more about the company and it's policies, and anyone looking for term life insurance can find a policy which is perfectly suited to their needs if they just keep shopping around.

Life insurance is an essential component of modern life, as it allows one's dependents to carry on even if they die in an accident. Life insurance can also ensure that someone's funeral wishes are carried out, and that causes and charities that they care about receive a donation from them even after they have passed. Term life insurance is thus a great option for anyone who needs to buy protection.

Types of Term Life Insurance

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Term life insurance is guaranteed life insurance that provides coverage in the event of a death for a specific period of time, which differs from permanent life insurance which has no time constraints.

Most often term life insurance is purchased to protect the financial debts of the insured to pay off a mortgage, auto, or other debt so that no financial burdens are left to dependents or other family members of the deceased. The shortest period of coverage most frequently offered by an insurance company for an applicant to buy is a one year policy.

After coverage has ended on a term life insurance policy, a feature of term life coverage is that the policy is renewable. However, some insurance companies require proof of insurability; underwriting a policy then will require a medical exam. At the time of renewal, if a policy is issued, premiums for the insured will be determined based on current age and the cost is usually higher for older applicants due to increased risk of death.

Term Life Insurance is for all

Today, there are several options for interested applicants as to which insurance company to select to apply for term life insurance coverage. With all the options available, applicants can have multiple questions as to what to look for when searching for term life insurance.

First, applicants rarely think to look at financial ratings of insurance companies. Ratings of insurance companies allow applicants and customers to know their financial stability, which is their ability to pay out a benefit in the event of a death or accident. Second, the amount of coverage should be compared among different companies. Almost all insurance companies offer free quotes to applicant, which can be obtained through mail, phone, or Internet. In obtaining a term life quote, an applicant needs to be aware of the amount of protection they are being quoted for and determine if that amount is enough for their life insurance needs. Third, applicants need to look at affordable payment plans for their term life insurance policy. Plans can sometimes be more affordable if paid by the month versus yearly.

Term Life Insurance needs updating

Once someone purchases a term life insurance policy, the policyholder should follow up and review their policy to make sure that it contains the important information regarding his/her benefits. And most importantly to continue coverage, the policyholder will need to ensure that no late payments are made on their term life insurance policy.