Posts Tagged ‘life insurance’

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How to Achieve Affordable Life Insurance Premiums

Wednesday, June 30th, 2010

If you are struggling to pay your life insurance premiums, and are even considering dropping your life insurance to save a few bucks each month, take a moment to reconsider your decision. Life insurance is essential for most individuals who will leave behind loved ones and family members. Although paying for life insurance may be inconvenient at best, keep your eye on your ultimate goal of providing a financial gift to your loved ones in the event of your death.

In the meantime, you will want to examine the many ways that you can keep your life insurance benefits while saving money at the same time:

  • If money is a big issue, you may want to choose term life insurance over whole life insurance. Term life insurance premiums are generally much less expensive than whole life insurance policies, yet provide individuals with the protection they are looking for in the short term.

  • Look for no-load life insurance policies, as they usually have fewer fees built into them.  These fees can often be quite expensive; therefore, much of your premium may go towards paying off the fees instead of going towards you.

  • Look online for life insurance deals. There are many websites that are able to provide you with quotes for life insurance. In addition, websites may also be quite helpful when researching your life insurance options. In short, the Internet is a great resource for shopping for life insurance.

  • Take the time to decide how much life insurance you actually need. You may be getting socked with high life insurance premiums because you simply took out too much life insurance. There are a slew of great online calculators that will help you determine how much life insurance you need so that you are not taking out too much - or too little - life insurance.

  • Get healthy and watch your life insurance premiums drop. Losing a few pounds, quitting smoking and dropping your cholesterol numbers all go a long way when speaking of life insurance premiums.

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The Top Five Things you need to Know about Life Insurance

Monday, June 28th, 2010

Life insurance is the ultimate way to plan for the financial well being of your family upon your death. Most of us realize the importance of life insurance, but many of us fail to really understand the ins and outs of purchasing a life insurance policy.

With that said, there are a few things every person should know about life insurance before purchasing it. Here’s our top five:

  1. Life insurance products, like any other type of consumer good, vary significantly when it comes to price and coverage. Therefore, it is always best to shop around for the best policy and the best price. Don’t assume that premiums for similar life insurance products will be similar. Instead, take the time to research your options when it comes to life insurance. Your best bet: start your research on the Internet, as you can find many websites that compare life insurance products, side by side, for easy, one-stop shopping.

  2. Don’t make the mistake or underinsuring or overinsuring yourself. Getting the appropriate amount of life insurance is crucial; have too little life insurance and you risk leaving your loved ones with more debt than they can afford to pay off; have too much life insurance and you could be paying sky-high premiums that you may not be able to afford.

  3. Don’t hold off purchasing life insurance until you get older. Life insurance rates for healthy, young adults are rock bottom; wait just a few years and you can be sure that your premiums will be considerably higher. Why not purchase life insurance now and lock in low rates?

  4. Don’t just buy life insurance and forget about it. The life insurance product you choose today may not suit you in the future. Therefore, it is best to review you life insurance protection at least on an annual basis to ensure that the life insurance you have best suits your budget and your lifestyle.

  5. Don’t assume that the life insurance offered by your employer is adequate. Consider what would happen if you lost your job tomorrow; would your family still be protected by some kind of life insurance product? Also, consider the amount of your employer-based life insurance product; chances are that it is not significant enough to care for your family in the event of your death.

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Your Permanent Life Insurance Options

Wednesday, June 23rd, 2010

You may be interested in permanent life insurance, but quite confused about all of your options. If so, then you’re not alone. There are quite a bit of options when it comes to permanent life insurance.

Some individuals take out permanent life insurance policies because of the death benefits associated with them, while others take them out to build cash value. Whatever your reasons for taking out a permanent life insurance policy or your financial goals, here are your options:

  • Whole Life Insurance - Whole life insurance is the most popular type of permanent life insurance, as the contracts pays dividend from the issuing company, while cash value grows at the same time. The dividends paid out by the issuing company are produced when the company invests the premium dollars.

  • Universal Life Insurance - Universal life insurance is a bit different from whole life insurance, as it features a term insurance component. However, a universal life insurance policy also has a cash component, thereby allowing an individual to use the policy as an investment. The cash earned in a universal life insurance product is similar to that of a bond investment.

  • Variable Universal Life Insurance - A variable universal life insurance product is similar to a universal life insurance product; however, the owner of the account can choose from several sub account and asset allocation. A variable universal life insurance policy is subject to the risks of the market, though, which therefore either increases or decreases the cash available on the policy at any given time. Many individuals choose variable universal life insurance policies as a supplement to retirement income.

Individuals usually decide which type of permanent life insurance is best for them based on cost. Term insurance, for example, is usually chosen first because it is inexpensive. However, individuals may also consider permanent life insurance because of the accumulation of cash over time.  A permanent life insurance policy will remain in effect for your lifetime, provided you meet your financial obligations, whereas a term policy is for a specific length of time.

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The Importance of Life Insurance for your Business

Monday, June 21st, 2010

Most of us think about life insurance for personal reasons. We want adequate life insurance policies to protect our families and loved ones in the even of our death, and rightly so. However, have you considered the importance of life insurance to protect your business?

Life insurance for your business can protect the business itself, your partners, your family, your employees, and even your customers.

Consider your Business’ Key People

Both small and mid-sized businesses can benefits from life insurance and, as a result, many companies are taking out policies on the owners, partners and key employees of the business. Known in the industry as “key people,” these people are vital to the operations and success of the business. If there is an individual who is instrumental to the success of the business then you should consider life insurance for him or her.

Proper life insurance for a business can provide financial protection, risk management and asset protection, among other things.

Life insurance for a business can solve a myriad of problems: it can keep the business operating in the event of the owner’ death; it can buy out a partner’s share in the business from the family of the deceased; and it can help buoy along the business until a replacement has been found in the event of the death of a key employee.

Preventing the Interruption of a Business

The ultimate goal of a life insurance policy for a business is to eliminate financial interruption. It will ensure that the rent or mortgage continues to be paid, bills and invoices continue to be paid, employees continue to be paid and ordering and other operational activities continue.

One of the biggest questions you should ask yourself when taking out a life insurance policy on a key employee (or yourself) is: how much would I need to keep my business running? What would it cost to replace that key person?

In short, life insurance for a business can help prevent the interruption of a business in the event of a key person’s death. If you have doubts about the survival of your business should a key member of your business die, then you owe it to yourself to consider a comprehensive life insurance policy.

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Is it Time to Reevaluate your Life Insurance Needs?

Tuesday, June 15th, 2010

Each person’s life insurance needs are decidedly different. After all, the life insurance needs of a newlywed will be quite opposite of that of a retiree or head of a family, for example.

As your needs change throughout your life, you should consider that your life insurance needs may change, as well. From getting married to purchasing a home and having children, the amount and type of life insurance you need may change substantially.

Therefore, it is in your best interest to reevaluate your life insurance needs as your needs continue to change. Millions of Americans are grossly underinsured and, unfortunately, they don’t find this fact out until it is too late.

When to Reevaluate your Needs

The best time to reevaluate your coverage is any time you make a significant life change. Are you getting married, divorced or expecting your first child, second child? Did you just buy a home, buy a more expensive home or downgrade to a less expensive home? All of these life changes can impact your life insurance needs, so it is best to pull out your life insurance policies and carefully review them during these pivotal life moments.

Many insurance experts also talking with your life insurance agent and reevaluating your needs every two to three years, minimally.

Marriage

Marriage, for example, can certainly change your life insurance needs, as you will now need to review your monthly income, taking into consideration your spouse’s income. You may also want to consider protecting your spouse and providing him or her with enough money to pay off the house or simply to take the time to grieve.

Home Purchase

When you purchase a home you should definitely reevaluate your life insurance needs, as you will want to provide your spouse or loved ones with enough money to pay off the house and pay for household expenses, at least for the next two to three years.

Outstanding Debts

If you have any other outstanding debts that you don’t want to pass onto your spouse or loved ones, such as second homes, credit cards, cars, and boats, for example, you will surely want to provide enough life insurance to cover these debts.

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Life Insurance and the Stay-At-Home Parent

Wednesday, June 2nd, 2010

As tradition once had it, mom stayed home and took care of the kids and saw to the house chores while dad was out making the bacon. In the modern age,  a change is taking place, and we are seeing a role reversal with some dads staying home as house husbands while the wife plays the role of  breadwinner.

It really does not matter which parent stays home, if this is how the family chooses to live. Obviously, they have the income to do so, and the kids get plenty of TLC and attention. It’s not like the stay-at-home parent doesn’t work. In fact, they have a pretty tiring and often difficult job, albeit with no monetary compensation. Still, stay-at-home parents work at it day after day as taxi drivers, housekeeper, laundry attendant, cook, confidante, comforter and even as teacher of life’s values as well as education, in the case of those who homeschool.

When it comes to life insurance, the spouse who does not work outside the home is often uninsured or under insured.

Insuring Your Stay-At-Home Spouse

These days, it’s a given that any family with children should carry some level of life insurance, just in case the unimaginable occurs. Unfortunately, a lot of families make sure to insure the working spouse while leaving the other with little to no coverage. This is acceptable, right? After all, if the non-working spouse happens to die an early death, there’s no income lost.  Unfortunately, This is a terrible assumption to make. There are plenty of reasons why you need to make sure that your non-working spouse has adequate life insurance coverage.

Your spouse provides a valuable service, taking care of the household needs, the child care, and often so much more. How will you handle this loss? Can you afford to pay someone to handle the chores and daycare or are you going to try and do it all yourself while still working a full-time job?  Adequate life insurance can help pay these expenses, at least until the kids are out of school or at an age where they can look after themselves and help out with the household tasks.

What about the kids? They have lost an important part of their lives. They may have emotional problems, and if attention is not paid, this could lead to trouble later on. In this case, you may find that you need to take some time off work to be there for the kids. The life insurance benefits can help to keep things going during this time, and if the kids need professional therapy, well, it can help with this too.

For the sake of your family, it is best to ensure that both parents are adequately covered by life insurance.

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The Risk of Life Insurance Company Failure

Tuesday, June 1st, 2010

Life insurance companies are a business, like any other. We count on life insurance to be there for our families in the worst time of their lives. The idea that your life insurance company could fail is a harrowing thought.  It is possible for a life insurance company to go under. Fortunately, it isn’t common, and the risk is low.

Why Low Risk?

There is really only a handful of life insurance companies that have ever failed. The biggest and the best are reputable companies who have proven their worth and their staying power. While the risk of insurance company failure is low, the smart consumer will always know the possibility does exist, even if unlikely to actually occur. The best protection you can afford yourself and your family is to recognize the possibility and know in advance what to do should this eventuality befall you.

What to do Should Your Life Insurance Company Fail

If the unlikely does occur, it is important for you to know what to do. Should your life insurance company unexpectedly fail or you see the signs that it’s heading in that direction, you need to be aware of what comes next. First, your state is going to try and help the insurance company to save itself. If this action fails, the state will take over, liquidating the company’s assets.

The good news is that most states have a guarantee association that will protect policy holders. Typically, you will be covered up to $100K. You might lose any benefits that exceed this, but your policy will be bought, and you can reinvest in another life insurance plan, should you choose to do so. It is also an excellent idea to put a good portion of said money aside for the inevitable; allotting even more financial protection for your family.

The best defense is a god offense. The first thing you should do is to choose a reliable and reputable insurance company to begin with. Little known hole-in-the wall companies can be a great success, but are also just as likely to face failure. If you are happy with your company, but don’t feel you have adequate protection or are afraid of what might happen in the future, you can always choose to carry multiple policies with different companies.

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Life Insurance and the Importance of Choosing a Beneficiary

Thursday, May 27th, 2010

Life insurance is a gift; a monetary legacy you leave behind to help your loved ones at the time of your unfortunate demise. It is one of the kindest things you can do for your family, setting them up for the future. Without life insurance, debts could go unpaid and your family could find themselves struggling just to get by. This can be a difficult and stressful situation, especially if financial stability was what they were used to prior to your death. Hopefully, there is some savings to fall back on, but life insurance is a smart move in addition to any other assets that exist.

Your Beneficiary

Choosing a beneficiary is not a task one should take lightly. You need to give this careful thought and consideration. If you are in a strong marriage, your spouse is the obvious choice. If your spouse is no longer living or you are divorced when you take out your policy, you might consider adding one or all of your children as beneficiaries. Practice caution with this. You want the benefits to go to a responsible person. However, singling out one child could cause family conflict, unless all is discussed and explained openly. Even then, there could be issues.

If your children are young, consider seeing to it that the money is put into a trust that they can take ownership of when they are of a certain age. The money can then be overseen by a trustworthy trustee, to help take care of their needs until they are old enough to take care of themselves.

For those without children or a spouse, you can choose a friend or other family member or even a charity to name as your beneficiary. The choice is yours. So long as you trust the person and they had nothing to do with your cause of death, benefits will be paid out shortly after your death is verified. Then, it is up to the beneficiary to decide how the money will be used. Hopefully, it is used to pay off your final expenses, any remaining debts and then the remainder of the money can be used for other purposes.

Fine Details

Keep your life insurance policy updated. Make sure you have the coverage that will be needed in the end. See to it that the information for contacting your beneficiary is always up to date, including and social security or necessary identification numbers (as in the case of a charitable organization). Otherwise, the benefits might not wind up being paid as planned.

Because life can be so unexpected, you need to ensure that as life changes, the beneficiary is always up to date. Unfortunately, the beneficiary you name could pass on before you, a relationship could end, etc. You want top be prepared, so always stay on top of things.

Choosing a beneficiary is an important part of owning a life insurance policy. consider your options carefully and choose wisely.

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Hazardous Occupation Life Insurance

Wednesday, May 26th, 2010

Hazardous occupation life insurance is obviously not for all of us. While sitting behind a desk, meeting deadlines and dealing with hassles can often be stressful and feel like a hazard, your life is not really on the line. However, there are people out there who risk their lives every day, working dangerous and difficult jobs that they often love very much. For those in these occupations, hazardous occupation life insurance is important if you have a family and the bills have got to be paid.

What Kind of Job is Considered a Hazardous Occupation?

Construction, roofing, major manufacturing, anything requiring climbing to heights or heavy lifting. If you do road work or electrical work, you will want to consider hazard insurance. Those working with heavy equipment will also want this insurance too.

It goes without saying that those in law enforcement, the medical field and those who fight fires are definitely candidates for hazard insurance. They put their lives on the line each and every day to help save the lives of others. Their families need that added peace of mind to know that things are covered should the unthinkable occur.

Deep sea fishing employees are out there and they choose this occupation knowing the risks. Nonetheless, the job pays well, is hard work and provides the public with the delectable seafood that they love. This job is loaded down with risks, so hazardous occupation insurance is a must for those who need to prepare for the future of those who depend on them. Oil rig workers, over-the-road truckers, farmers and farmhands are further examples of hazardous occupations. There are many people out there in occupations that must be done but are extremely dangerous.

Costs: Financial and Beyond

Anyone who works any kind of job that comes with its share of risks should consider adding hazard cover to their life insurance. There is a price difference, but when you think of the value that these kinds of occupations add to the world, the economy and the lives of the people, there really is no comparison. On top of that, most hazardous jobs pay quite well, and your family will definitely need help to keep going and get back on their feet if and when the time comes.

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How Cause of Death Affects Life Insurance Benefits

Wednesday, May 19th, 2010

If you have a life insurance policy and you die from the complications of a medical condition or natural causes, it’s a pretty cut and dry case. Benefits will typically be paid to your beneficiaries as quickly as the death certificate can be issued and your death is verified by the insurance company. However, if your death is caused by other circumstances, your loved ones might face quite the hassle when trying to collect benefits and could be denied altogether in certain cases.

Accidents

Most accidents are typically covered by life insurance. However, accidental death often brings some added expenses and burdens to a family. You can help to ease this by opting to pay a higher premium that pays a larger benefit should your death be caused by an accident. In order for a claim to be paid, the insurance company will have to determine if, in fact, your death was caused by accident. Your contract should state reasons why an accidental death claim might be denied. In some cases, accidental death caused by your willing participation in risky activity could result in a delayed claim full of hassles or denial of benefits. If you are a risk taker, you might consider high-risk insurance, which recognizes this lifestyle more than the other guys.

Suicide

It is a sad event to see someone who has given up on life and ends it all by their own hand. An already devastated family now faces and even harder road. There was a time when most insurance companies would not even consider paying benefits if the insured party took their own life. While some companies still do observe this policy, the majority have come to realize that suicide does happen and has begun to pay benefits, under certain conditions. For the most part, a policy needs to be in effect for at least two years before benefits will be paid on this cause of death. That does not mean one should be considering this plan to end their life and wait it out to ensure benefits are paid. If you are suicidal or you think a loved one is, don’t wait until it is too late. Get help now!

Foul Play

Murder. A devastating, cold and callous event. In an ideal world, this would never happen. However, in reality, it does and we have to consider what would happen to and for our loved ones in that event. If foul play is suspected in your demise, the insurance company will hold up the payment of benefits until the investigation into your death is complete. They want to ensure that your beneficiary had no part in your death. While murder for insurance money happens more in movies than in real life, it is a felony crime and the insurance company does not want to see anyone wrongly benefit from your untimely and tragic death.

It is important to be aware of these provisions in your life insurance policy, but it is even more important to try and plan ahead to protect the ones you love.

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