The Ins And Outs Of A Life Insurance Policy

Having life insurance coverage is essential for anybody that has someone dependent upon them, financially or emotionally. Now, before you apply for a life policy, you must understand how the life insurance industry works. Life insurance isn’t hard to understand by any means. There are two entities involved with every life insurance policy process, namely the insured, the company you’ll obtain the life policy through, and the insured, the person that owns the policy, in this case you. You, the insured or covered person, agrees to pay a small amount of money for a fixed number of years. This amount is known as policy premium. In the unfortunate event of the policy holder passing away throughout the policy period, the insurance company will pay out the policy amount to the beneficiaries selected by the policy holder.

A life policy is a lot like a legal contract. There are specific clauses to agree to. For instance, if the insured should commit suicide within the first two years of having the policy, the insurance company won’t pay out the claim. Or if the insured provides details that are discovered to be wrong, the insurance company can declare the policy void.

Policies are priced in such a way that they cover claims to be paid, admin bills and of course, they have to make some profit. So, for each person that applies for a policy, an expert called an “actuary” determines the person’s fatality table. They do this by considering the person’s age, gender, wellbeing, hobbies and behavior. The family health history also plays a role when determining what the person’s life policy premium would be.

This investigation done by the insurance company is called underwriting. They’ll investigate the life policy candidate’s lifestyle by looking into their family history, health and way of life. If the company find the applicant to be too much of a risk to cover, they won’t grant them a policy. The company will, if the person is a high risk, but still insurable, hike their monthly premiums as a result of high risk.

Even though different insurance providers may have different terms and conditions, each of them have specific standard industry clauses as well, for example the beneficiary clause. The clause states that only the policy holder can change, remove or add beneficiaries onto their policies, for apparent reasons of course. Nonetheless, all insurance companies have terms and conditions and it is essential that you go through and understand these clauses.

Upon the insured’s death, the insurance company requires a proof of death certificate before proceeding with payment. If the insured’s death is found to be suspicious the slightest bit, the insurance provider may choose to investigate the death. If there are no signs of foul play, the insurance provider will pay the claim to the beneficiaries in roughly 2 weeks.

Obtaining a life policy is a crucial part of every person’s life and really should not be forgotten. There are ways to make your policy premium cheaper, but always make sure that you’re adequately covered, as being under insured can have disastrous consequences.

Find Life Insurance Leads

People buy life insurance to ensure the financial security of their dependents in case of their untimely death. This means that the risk of death of the policy owner is transferred to the insurance company or the insurer. Insurance agents are representatives of these insurance companies, who assess the needs of the people and help them choose the best insurance plan. Life insurance agents specialize in selling life insurance policies and therefore, posses all the expertise and knowledge to assist their customers in choosing the right policy. These agents have to find such customers for their business and they do so by, generating leads. Leads are nothing but lists of names and contact details of potential customers. There are many companies that specialize in generating and selling these lists to insurance agents as well as brokers.

To find life insurance leads insurance agents and brokers follow various courses of action. They can opt to generate their own leads by following the local resources or they can buy them. There are several companies that claim to provide fresh and unused leads for a price. These leads are usually generated though the list of people who may have requested for a quote online. These leads are considered the best, as such customers, are already looking for life insurance and are more likely to buy a policy. These web-based lead providing companies offer many packages to the insurance professionals. These packages generally include monthly or yearly accounts, pay-per-lead accounts, and customized leads account. Usually the information provided for every prospect is limited to contact details and requirement from the policy. However, more detailed information can also be purchased for a higher price.

Popular ways of generating leads include putting up advertisements on billboards or in newspapers and or having ads aired on local radio stations. People responding to these advertisements will be the leads and potential customers. It is now up to the life insurance agent to convert these leads into policies. Life insurance leads are pivotal for establishing a thriving insurance-based business.

Understanding Supplemental Group Term Life Insurance

What is Supplemental Group Term Life Insurance?

Supplemental group term life insurance is an added benefit if you are already covered under a group policy through your employer. Usually group coverage is not as comprehensive as you may desire as policies are written according to what would benefit the group as a whole. As an individual with a family of your own, you may have different needs that are not covered through a group plan. If you find yourself in this position, buying a supplemental term life policy would be a wise decision.

An employee is eligible for supplemental term life insurance if he or she performs all of their regular duties on a full-time basis (check with your employer as some companies consider “full-time” as 17.5 hours or more while other companies require you work the full 40 hour weeks). Again, you must already be covered under your company’s basic group term life insurance policy. Spouses and dependent children are also eligible for coverage if you buy a policy of your own.

What are the Benefits to Adding a Supplement?

There are a couple of benefits to purchasing supplemental term life insurance. The first is a waiver of premium. If you become completely disabled prior to your 65th birthday, the insurance company will continue to keep your policy intact and active until you become 65 years old. The stipulation is that your disability must last for nine consecutive months before the benefit can begin. If your disability continues indefinitely, the insurance company will not collect any further payments of premium from you. An individual is considered “totally disabled” when that individual is unable to work at any occupation collecting wages because of injury or illness. You must also provide proof of continuing disability annually.

A second benefit to taking out a supplemental term life insurance policy is the Accelerated Living benefit. If an individual is diagnosed with a terminal illness and given only 12 months or less to live, that individual may apply for a percentage of their combined basic group and supplemental term life insurance policies. The percentage is usually paid in a lump sum. Check with your carrier, as the benefit is usually 50% of the active face value amounts or $50,000.00, whichever is less. While an employee and their spouse are eligible for the accelerated living benefits, children of the employee are not. In most cases, coverage is portable — which means you can take your coverage with you if you retire, reduce your hours or change jobs.

The only exclusion is the standard waiver of benefit payment should the employee or their spouse/dependents commit suicide within the first two years that the policy came into effect. Check with your carrier as in some states this exclusion applies to both sane and insane individuals while some states only the sane.

How Age Affects Your Policy

While premiums for supplemental term life insurance are literally just a couple to a few dollars per month, the rates are affected by age. The premium is based on attained age and then increases at various steps. You would have to check with your carrier for their specific criteria. Age 70 is a defining milestone for supplemental term life insurance policies.

Beginning at age 70, your coverage is reduced to 65% of original certificate face value.

Beginning at age 75, you coverage is reduced to 45% of original certificate face value.

Beginning at age 80, your coverage is reduced to 30% of original certificate face value.

One thing to keep in mind is that spousal coverage terminates at age 70. If the premiums are current, your spouse may choose to convert their individual coverage to a term life insurance policy of their own. Your dependents may also choose to convert their policies after their dependent status expires. They can obtain term life insurance policies in the amount of $25,000.00 or $50,000.00.

Supplemental term life insurance is a wonderful benefit as you can give your family an additional benefit of up to $270,000.00.

Instant Life Insurance Quotes

Life insurance is nothing but the protection against financial loss resulting from death. The chief objective of life insurance is to provide a means of financial security to the family of a person, after his death. There are three parties in a life insurance transaction, namely the insurer, the insured and the owner of the policy or the policyholder.

It is easy to obtain life insurance quotes, with the help of the technology of online search engines. These search engines look for insurance providers, to get the best possible rates and the coverage that people look for. There are various companies that offer low premiums. Basically, there are three types of life insurance quotes. They are Term life insurance, Whole life insurance and Universal life insurance. Quotes are available for special risks, such as Health Risks, Hazardous Activities and Legal Circumstances.

Term insurance is the simplest form of life insurance. It provides financial security for a definite time. These policies are comparatively inexpensive and are suitable for insurance protection while paying off a mortgage. However, it is a short-term insurance and it does not offer cash savings.

Universal life insurance and whole life insurance are types of permanent life insurance. These provide long-term financial security, with death benefits and in some cases cash savings. They usually have higher premiums.

Life insurance quotes can be asked for online or personally. There are many reasons associated with the need for life insurance quotes. Mortgage insurance quotes are required for monthly mortgage payments and travel life insurance quotes are necessary for safety while traveling. Quotes for buy-sell agreement funding are necessary for business security while burial insurance quotes are necessary for final expenses. Quotes for estate planning are essential for continuation of legacies. However, buying policies is an option and not a compulsion.

Which Type of Life Insurance Suits You?

The ultimate reason for buying life insurance is for paying a benefit (i.e. a dollar amount) to a beneficiary when you die. It can also help you save money. Life insurance policies take one of several basic types. This article summarizes each type and some of the benefits it offers to your situation.

Life insurance is priced by the insurance companies based on your age and health. Life insurance companies expect you to live statistically so many years more at a given age and health status and gear their costs accordingly. Because of this, your acceptance by the insurance company depends on how the condition of your health fits into their costing scheme.

The types of insurance available may offer additional living benefits such as a savings vehicle. Choosing the policy type that best addresses your needs is the name of the game. Here are the classic policy types to choose from.

Term insurance:

It offers no savings component to it which leaves no ‘cash value’ associated with the policy. Therefore its premiums (i.e. the payment you make to own the policy) covers only the risk of death during that year. I.e. you’re paying for what is called ‘pure’ insurance.

Many insurance companies offer level premium term insurance. Premiums may remain level (i.e. constant) for a period of 5, 10, 15, 20, 25 or even 30 years. These policies are inexpensive and can provide relatively long term coverage.

Some level premium term policies contain a guarantee of level premiums, while others don’t. Without a guarantee, the insurance company can surprise you by raising your premiums (the amount you must pay to keep the policy in force), even during the time you expected your premiums to remain level. Make sure you understand the terms of your policy.

Whole Life Insurance:

This is a form of permanent insurance because it’s designed to remain in effect throughout one’s lifetime. Generally, the premiums for this type of policy remain the same throughout the life of the insured. During the early years of the policy, premiums are much higher than those of term insurance policies. That’s because these policies develop a cash value (i.e. it has a savings component) which the policy owner can access through surrenders or policy loans.

Return of premium term insurance:

This is new type of coverage that generally combines low, term-like premiums with a guaranteed refund of the premiums paid during the level term period assuming the insured is still living at the end of the level term. They are often significantly less expensive than permanent types of insurance. But, like many permanent plans, they may still offer cash surrender values if the insured doesn’t die.

Universal Life Insurance:

It’s also a form a permanent insurance but differs from Whole Life because it delineates and itemizes the protection element, the expense element, and the cash value element. This adds more policy flexibility for the policy owner to modify the face amount or the premium in response to changing needs and circumstances.

A Survivor or Second to Die insurance:

This is offered either as Universal Life or Whole Life and pays a death benefit at the later death of two insured individuals, usually a husband and wife. That way it can pay estate taxes when they occur – at the second person’s death. Most individuals arrange to pay little or no estate taxes at the death of the first person because of the unlimited marital deduction in the estate tax. This coverage is widely used because it is generally much less expensive than individual coverage on either spouse.

One of these types may best suit your situation. Understanding all its options is the next step to deciding which.

How To Get The Best Rates on Life Insurance in Illinois

When looking for the best rate for life insurance in the state of Illinois, first make sure the insurance company is licensed to do business in the state by contacting the Illinois Division of Insurance. Secondly make sure the company is financially stable. If you have purchased a life insurance policy and the insurance company you purchase your policy from goes out of business you are protected up to $300,000 in life benefits per insured life. In other words, if you have 5 life insurance policies totaling $1,000,000, you will only be guaranteed $300,000 in benefits.

If your insurance company is no longer in business, contact the Illinois Division of Insurance to track down the original policy. They will do this by forwarding the name and address of the succeeding insurance company to you. If that information is inadequate to enable you to determine if the new insurance company has your policy, contact the Illinois Division of Insurance in writing. They will investigate and respond.

To avoid such an unfortunate situation, make sure you know the financial stability of your life insurance company before signing on the dotted line. You can find out their financial stability rating by checking their AM Best rating. AM Best tracks the financial stability of insurance companies for all lines of coverage (not just life insurance). Although checking the financial stability does not guarantee the company will be around 20 years from now, it will give you a good indication as to its current stability.

It is recommended to check their rating periodically during the policy term (which can span in excess of 15 years) to ensure the rating is still as originally purchased. If your company’s rating slips, you might want to keep an eye on it to see if it corrects itself. If not, and you find the trend continuing, it makes sense to shop around for more stable life insurance companies. You do not want your beneficiaries to be on the investigating end of finding who will pay death benefits in the case of your demise.

How to Get the Best Rates on Life Insurance in Missouri

No one likes to think that they are going to die one day – but, as the old saying goes, there are only two things certain in this life, death and taxes. There isn’t much we can do about taxes, but we can make life easier for our loved ones after our death by purchasing a life insurance policy now.

There are several factors which determine how much you will pay for your life insurance in Missouri. The size of the policy you take out, your age at the time you take out the policy, your health, your lifestyle, whether you buy a term insurance policy or a whole life policy…even your credit rating affects the amount you pay for your life insurance.

Let’s start by discussing the two basic types of life insurance – term and whole life.

A term policy is good for a certain time period (the term of the policy). At the end of that time period your insurance lapses and if you want more coverage you will have to purchase a new policy – at a higher premium.

A whole life policy covers you for your…whole life. Whatever premium you pay when you buy the policy is the same premium you will pay for your entire life. A whole life policy also builds a cash-value savings account over time, which can be used for a variety of purposes and may even be borrowed against.

Initially the monthly premium payments on a term policy are lower than a similar whole life policy. The problem arises once your term policy runs out and you need to buy a new policy – at a higher rate. This could conceivably happen several times during your lifetime, requiring you to pay more and more for your insurance as you get older and older.

The choice is yours. But before you hop online to find the best rates on life insurance in Missouri perhaps you should take a few moments to consider ways of keeping your monthly premiums as low as possible regardless of whether whole life or term insurance is best for you.

First, buy a policy before your next birthday. Every year that passes means a higher insurance premium.

Get and maintain a healthy lifestyle. It doesn’t take a genius to realize that the healthier you are the less your life insurance is going to cost. If you smoke or use tobacco products in any form you need to stop. Period. Using tobacco in any form substantially raises your monthly life insurance premium.

The same goes for being overweight. You know the health risks associated with being overweight. Losing weight can be extremely difficult, but for most people it can be done given the proper mind-set. Let saving possibly hundreds of dollars a year for many, many years be the impetus you need to finally lose those extra pounds.

Maintain your good credit rating. Whether that means paying off several credit cards, or simply making payments on-time each month, just know that most life insurance companies base your premium rate at least in part on your credit rating.

Finally, go online and start making comparisons between different life insurance policies and different life insurance companies. Remember, the exact same policy for the exact same person can cost considerably less from one life insurance company than it will from another.

When making comparisons on the internet make sure you take the extra time and effort to enter all of your required information onto the form at a minimum of 3 different websites; this will insure that you are seeing true comparisons from as many different insurance companies as possible.

Yes – it is a lot of work, but the reward of saving hundreds of dollars, perhaps several thousand dollars over your lifetime can make all the trouble you take today well worthwhile.

Mobile Phone Insurance More Important To Britons Than Life Insurance

A study by Legal and General has found that Britons think it is more important to protect their mobile phone from loss or theft than it is to insure themselves against critical illness, accident or death.

The most surprising result from the survey highlights the fact that possessions are more likely to be insured than the person owning them. Most people surveyed, over 54%, had no protection policies whatsoever, while 22% had their phone insured compared to 17% who had critical illness and life assurance. Income protection was considered important by only 14% of those questioned.

Furthermore the survey finds that significantly more people have insured their home contents than their life, with over two-thirds of those questioned saying they have insured their home against 41% who say they have insured their life. Time and again the insurance industry reports that there is a huge gap between the amount of cover that UK citizens have taken out and estimates how much should actually be taken out to cover everyone, and this survey suggests that gap is in no danger of closing.

Legal and General’s protection sector Marketing Director Bonnie Burn’s thinks it is a worrying trend. She said:

“The priorities of the nation seem mis-guided, with people more concerned about the loss of their mobile phone than how they would cope financially if they could not work, through illness or serious accident. We all hate facing up to our mortality, but when insuring our life is considered less important than insuring our possessions, then perhaps it’s time for something to be done.”

The fact that people are willing to pay for relatively expensive phone insurance, but not for life or critical illness cover is particularly depressing news for the UK life insurance industry. When you compare life insurance cover pound for pound against mobile phone insurance the figures make sobering reading. For example paying an average premium of £4.99 a month would result in paying almost £60 a year for a phone worth around £150 – over a third of its value in one year. Many people take out this insurance unaware that they may also be covered for mobile phone loss or theft on their home contents policy. On the other hand a 30 year-old man wanting £200,000 life cover would pay on average only £13 per month; a lot more cover for your money! It appears that even through the majority of us have it ahead of any other protection cover mobile phone insurance most definitely works to the benefit of the insurer.

This news comes on top of the news issued by government that estimates that almost seven million working Britons are not making enough provision for their pension. That combination of inadequate income, critical illness and life cover, and pension provision suggests that many Britons are financially ill-equipped to face the future, and could face real hardship if the worst should happen.

Cashing Life Insurance Settlements

Life insurance is taken to provide security to an individual?s life against events like accidents or death. A life insurance policy is a contract between the insurer and the company that offers such a policy. Herein, the company agrees to pay an agreed sum of money or cash in case of an accident or death. Cash Life Insurance Settlement policy could be surrendered at times when there is a shortage of money. Hence such policies are sold for cash to meet expenses like medical treatment, inability to pay premium on time, and so on.

When such insurance documents are sold, policy sellers benefit by converting these assets into liquid money, which can be invested as and when needed. It proves profitable to sell off a policy, as it could be worthless if premiums are not paid in time.

Cash life insurance settlement companies offer a high amount on insurance settlements than what insurance companies offer. Usually such cash life insurance settlement companies buy policies from general public, and trusts and offer a fixed rate amount to policy sellers. Cash life insurance settlement company may be the principal beneficiary on the amount at the event of death of a document holder or when the policy matures.

Senior citizens who are above the age of 65 years may be required to sell cash life insurance settlements at times. This could meet emergencies when senior citizens may require money for their medical treatment and other needs. Hence, these cash life insurance settlements are sold to companies for a price that is a little higher than the purchase value. At times brokers bid for policies and whichever is the highest amount, is paid to such citizens. Policyholders may have the right to choose whether to opt for this amount or not as these policies may be worth approximately one hundred thousand dollars.

Health And Life Insurance – Knowing How To Get It

You would be happy to learn how you can get lower rates on your health and life insurance policies. Won’t you? I’ve spent some time looking around for ways to effectively lower anybody’s health and life insurance rates. Here are a few tested ways you can ensure you pay much less.

In deciding what you pay, certain factors are used. Although each insurer has a different weighting for each of those factors, they all factor them in while calculating how risky it is to insure you and, consequently, how much it would cost you. Your rates will be increased greatly by the following…

Smoking or using any tobacco based substance does only one thing to your life or health insurance rate: Shoot it to the roof. Smoking has caused so many deaths and is the major cause of cancers and other terrible diseases worldwide.

Many people have quit smoking. You too can do it if you really mean it.
You can get all the help you need from people who love you or groups that are set up to help you quit smoking. This will lower your life insurance rates. Furthermore, you’ll live a healthier life if you quit smoking.

Participating in dangerous sports make you a great risk to any insurer. To protect themselves insurers will slam you with high rates. You can’t keep up your involvement with such sports and expect anything like low rates in life insurance.

While I do not intend to force my opinion on you, I think the grief you’ll cause your loved ones (If you have any) far outweighs any pleasure you derive from such sports. Well, that’s my opinion.

You pay higher life insurance rates if you are part of a high-risk profession. That is an occupation that exposes you to hazards. You can lower your rates if you change to another occupation — A safe one.

You can get lower rates on life insurance now by visiting at least three insurance quotes sites. Each site will take you around 5 minutes or less to request a quote.

Some people fill in details that are not really correct about them. That isn’t a smart move as the quotes you’ll get won’t do you any good.

You’ll have to choose what represents the best life insurance quote for you from the list of quotes returned. That’s all there is to it. But you could easily save over $1,000.