Posts Tagged ‘life insurance policies’

Shopping for a Life Insurance Agent: what you need to Know

Tuesday, January 19th, 2010

Shopping for a life insurance agent may not be an easy task. After all, you are looking for a trusted individual who has plenty of experience and a proven track record of client satisfaction. It is because of these factors that you should take the time to make sure you choose the right agent through which to purchase life insurance.

Your life insurance agent should have your best interest at heart, and should understand both your needs and your desires so that the life insurance products you choose are best suited for you, your personal situation, your goals and your budget.

Your Shopping Checklist:

  • Rapport - Regardless of how much experience an insurance has in a particular area, your life insurance agent must be able to communicate well with you and be able to develop a good rapport with you. In other words, a professional relationship with a life insurance agent will simply not work if you don’t feel comfortable with him or her. Your life insurance needs are not “one size fits all,” so your agent must be able to understand your specific needs and customize life insurance policies to suit you.

  • Properly Licensed - Always check with your life insurance agent to make sure he or she has the proper license to sell insurance in your state. You may also check with your state insurance department regarding your agent’s ability to sell insurance in your state.

  • Industry Experience - The bottom line is that your life insurance agent is only as good as his or her experience in the industry.  Experience in the industry does more than show your agent’s knowledge; it clearly shows his or her commitment to the industry and his or her position. In other words, your agent’s industry experience usually means that he or she will be there for you, now and in the future.

  • Sensitivity - Your agent must be sensitive to your needs and your wishes, and must be able to help your loved ones navigate the process of claiming your life insurance policies once you pass. You owe it to your family to find a life insurance agent who will be there for them during this difficult time.

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Your Common Life Insurance Questions Answered

Monday, January 11th, 2010

Life insurance is a frequently misunderstood type of insurance. Although most of us realize that we need life insurance, many of us don’t know where to turn to get the best coverage at the best price.

Don’t let the unknown scare you; protecting your loved ones with comprehensive life insurance is one of the single best things you can do for them.

The following are some of the most commonly asked questions about life insurance:

Q:  Can someone else take a life insurance policy on me?

A:  Only those individuals with an “insurable interest” in you can take out a policy on your life. For example, a parent or spouse may take out a life insurance policy on you. There are also cases in which an employer or a business partner may also take out a life insurance policy on you.

Q: What does a standard life insurance application entail?

A: To apply for a life insurance product you will likely be asked to fill out an application, which often includes your age, your health history and other personal information. Based upon this information, the insurance company may or may not take insure you. Many insurance companies also require that applicants undergo complete health examinations before being eligible to receive life insurance benefits.

Q: What type of life insurance product is best for me?

A: There are many types of life insurance products available, including term and whole life insurance, as well as hybrid policies. The type of life insurance product you choose will largely depend on the following factors: your age; your health; your family situation; and your financial situation. Term policies, for example, are often more affordable than whole life policies, while whole life policies are intact for your lifetime, not just a certain length of time.

Q: Where can I shop for life insurance?

A: Shopping for life insurance has never been easier, thanks to a myriad of life insurance companies that offer online life insurance quotes and life insurance information. Shopping online for life insurance also allows you to compare policies between companies and even between the same insurer.

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How to Choose the Best Term Life Insurance

Tuesday, December 15th, 2009

Term life insurance is often the popular choice for individuals who are looking for quality life insurance with low premiums. Most term life insurance policies are relatively straightforward, as you choose the term (i.e. length of time) you want to carry the policy and the amount of your term life insurance policy.

Term life insurance is ideal for individuals who want to be covered for a specific amount of time. For example, a young parent may choose to take out a term life insurance policy that will protect his/her family until the children are of legal age. Another individual may choose to take out a term policy until his/her home is paid off.

Although term life insurance is pretty straightforward and easy to understand, there are a few things you should keep in mind when shopping for a term life insurance policy:

  1. Guaranteed renewal term life insurance policy - Look for a term life insurance policy that gives you the option of renewing it once the original term has ended. In particular, make sure you can renew the policy regardless of your health; after all, we don’t know what the future holds, so it is best to keep your options open regarding your term life insurance. Also, make it a point to think through your decision regarding your loan’s term. In other words, don’t get caught with a term policy that simply won’t protect you for a long enough length of time.

  2. Fixed premium term life insurance policy - It is generally best to only take out a term life insurance policy that offers a fixed premium for the life of the policy. Many term life insurance policies will offer super-low premiums for the first, few months and then raise them afterwards. However, it is probably best to choose a policy that offers the same premium for the life of the policy so that you can better plan your finances.

  3. Shop around and save - Not all term life insurance policies are created equal; and that goes for price, too. Make it a point to shop around when searching for a term life insurance policy. In addition to comparing prices, compare companies, as well. In other words, choose a company with a strong financial history so that you can be sure your term life insurance policy will be valid during the duration of the policy.

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Can Your Life Insurance Policy Protect Your Pets?

Monday, November 2nd, 2009

While life insurance policies are certainly ideal for individuals seeking to protect their loved ones from financial distress in the aftermath of one’s death, some policy holders have expressed interest in extending coverage to include their beloved pets as well.  While each life insurance policy will vary, some life insurance providers have created new forms of pet life insurance to help offer protection against the financial burdens associated with a pet’s demise.

Life Insurance for Pets

If you are interested in pursuing life insurance protection for your pet, then an array of major companies may be able to offer you unique policies with personalized features.  Often known as pet replacement insurance, pet life insurance can offer compensatory amounts of varying values, with some plans even providing benefits up to the amount of $10,000 or more.  With this coverage feature, a policy holder is compensated for the loss of their pet in order to regain financial standing for their “investment.”

Ideal Candidates for Pet Life Insurance

As each pet owner invests unique costs and efforts into the training and maintenance of their animal, not all pet owners may benefit from animal life insurance protection.  Generally, ideal candidates for pet life insurance are individuals with large vet bills, training costs, grooming costs, and other major expenses invested in their animal’s upbringing.  For example, individuals with pure-bred dogs opting to have their dog compete in competitions often carry large financial burdens and expenses for this pursuit.  As a result, the loss of one’s animal can force a pet owner to be subjected to potential financial losses from various competition rewards and prizes.  In such case, compensation for the loss of one’s pet can help trainers and owners regain their footing in order to potentially re-invest in a “show dog” for future competitions.

To find out if you may benefit from pet life insurance policies, ask your current provider about any available programs or contracts.  Since pet life insurance is a relatively new and unique insurance option, some pet owners may need to research new companies to find the most optimal coverage for their personal pet-based needs.

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Retired With Life Insurance? Avoid Getting Ripped Off With Insurance Provider Schemes

Thursday, October 15th, 2009

If you’re flipping through channels on any given afternoon, you may undoubtedly come across various advertisements geared towards older retirees promoting life insurance policies.  Oftentimes, these ads may include celebrity spokespeople and appealing incentives; however, many experts warn consumers about the potential of getting ripped off when opting for unreliable life insurance packages for older citizens.

Life Insurance Schemes: Looking for the Warning Signs

Accepts Anyone-With No Medical Questions or Exceptions

A life insurance plan that promises to provide coverage without asking any medical questions should usually stand out as a company that needs to be questioned.  Often known as “guaranteed issue policies,” these life insurance packages are advertised to be sent directly to your home once you send in your payment.  While these policies may certainly provide benefits for many individuals, some policy holders commonly confuse these “guaranteed issue” with “quick issue” and / or “simplified issue” policies.  If you find yourself opting for a “guaranteed issue” life insurance plan, then you should be aware that this form of coverage should only be reserved as a last resort.  “Guaranteed Issue” policies offer fewer benefits and come at a much higher price than companies that require a physical exam and / or a brief report of your medical history.

Don’t Get Caught by a “Catch”

To gain greater profit without loss, many life insurance companies may include various “catches” in their coverage agreements.  For example, while the life insurance policy may agree to cover all funeral costs, the policy may include the “catch” that costs will only be covered if a funeral occurs prior to the age of, for example, 75.  In this case, if you live beyond 75 years, then you’re insurance investment for your funeral may be a complete loss.

Consider the Long Term Benefits

Some life insurance plans provide policy holders with “graded benefits,” which essentially gives the insurance provider greater power over adjusting the terms and costs of coverage.  With “graded benefits,” insurers are permitted to simply pay refunded premiums for up to 3 years after the purchase date of the policy.  With this power, an insurer can simply offer a 3 year refund instead of the full policy benefits / payments upon the death of the policy holder.

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Do Your Kids Need Life Insurance Protection?

Tuesday, October 13th, 2009

Although its considered to be a somewhat debated option, some parents opt to purchase life insurance policies on behalf of their children.  As policies for kids can provide many parents with low-cost coverage for their child’s future, some experts argue that parents now have better financial options that investing in early life insurance plans.

Children and Life Insurance: Evaluating the Benefits

For those in favor of purchasing life insurance protection for their kids, there are certainly specific benefits and advantages.  Primarily, some parents invest in life insurance for their children in order to prevent their children from being refused coverage at an older age (in case a child is later denied coverage due to an illness and / or questionable health history).  By purchasing coverage early, parents can essentially insure that their adult-children will be able to enjoy full coverage without any anxiety or concern.  Additionally, investing in a child’s policy allows parents to cut back on their adult-child’s insurance expenses, as some parents opt to pay for their child’s full-life coverage.

Considering the Cons

Although there are certainly perks that apply to a child’s life insurance plan, many experts argue that life insurance for children is an outdated and ineffective option for protecting a child’s future.  According to some financial experts, parents can instead opt to invest in more advantageous savings options, such as a 529 plan, money market investment, or a CD.  Adding to this, some argue that the actual coverage included in a child’s insurance policy is quite small; in fact, some children’s policies simply provide a small compensation in order to cover the costs of a child’s unexpected burial.  Typically capped at around $5,000, these particularly small-coverage life insurance policies are not an ideal option for parents who are seeking to invest in their child’s long-range future and security.  To find out if this option is right for you, meet with a financial advisor to compare coverage benefits and costs, as your advisor may be able to more thoroughly guide you towards the greatest investment for your children and family.

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Has Your Loved One Lost Their Life Insurance?

Monday, August 24th, 2009

Upon an unexpected death, the details of one’s life insurance policy can be difficult to access. Oftentimes, amidst paperwork, unorganized records, or other distractions, life insurance policies can be overlooked and almost forgotten. If you’ve recently found out that you or a loved one has access to a policy’s unclaimed benefits, find out how you can determine if the funds are still accessible.

Unclaimed Benefits of a Life Insurance Policy

If a beneficiary to a life insurance policy is unaware of a policy, or for another reason neglects to claim the benefits of the policy, then he / she may still be able to access the policy funds within a few years of the policy holder’s death. Typically, if a life insurance policy is unclaimed, and the insurance company cannot find the listed beneficiary, then the money will be transferred to the state in which the policy was originally purchased. According to most state laws, an unclaimed insurance policy must be returned to the state within three to five years of the policy holder’s death. Once the policy money is transferred to the state, the state controller department will place the funds into an “unclaimed property” bank account.

Once the policy funds are protected in this account, the state controller department will enter the policy information into a database; therefore, if you’ve discovered that you are due access to a policy that has been unclaimed, contact your state controller’s office! Most state controller databases are accessible online, can be attained through the state controller / treasurer, or can be found in public unclaimed death benefits records.

Can’t Find the Policy in the Database?

If you are looking to gain access to a policy but cannot find the policy information in the state database, then the policy holder’s insurance provider may have never been informed of the death! If the insurance company is unaware of a policy holder’s death, then they will most likely not transfer the policy funds to the control of the state. In cases such as this, an entitled beneficiary can contact the insurance company to find out how to gain access to the insurance policy savings.

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