Category Archives: Insurance

Life Coverage Explained

What is life insurance? This is an insurance policy taken out by an individual to provide compensation in the event of a disaster or even death occurring to the individual. The policy is issued by an insurer and the recipient of this policy is the insured.

The terms involved in this type of policy is that the insured would pay a certain amount periodically (monthly, quarterly, annually etc). This payment known as premium is made to the insurer as a contribution towards an agreed upon amount called the sum assured.

Upon taking out a policy, the insured names a beneficiary. The beneficiary upon the death of the insured, receives the sum assured.

There are two main kind of life policies. The whole life and term life coverage.

The whole life insurance as the name implies is whole and last through the life time of the insured while term life lasts for an agreed term.

In term life, if the individual dies or is incapacitated before the expiration of the term, the individual receives the sum assured.

If the term runs successfully through and the insured is still alive, he/she would receive the sum assured.

Many people do not like to think about life insurance as it reminds them of something most people would rather not think about. This caused insurance companies to come up with ways to make life policies more of an investment tool.

Anyone who has dependents he/she cares about should get a life policy.

Talk to your financial adviser or an insurance agent for ways to use this tool for your benefit.

Life insurance can be very expensive so get free life insurance quotes now and find ways to save.

Term Life Insurance Benefits

Term life insurance is called this way because life insurance is limited to a certain period of time, also called term. This type of insurance only offers pure insurance protection, without any additional features like savings that other life insurance policies have.

You can sign such a life insurance, over a period of time that can vary between 1 and 30 years. The 1 year option is of the renewable type and you can only get it for short periods of time, between 1 and 5 years.

For this period of time, the premium remains fixed, and the most popular type of insurance is the one for a 20 year term. In some situations you can choose a term until you reach a certain age, like 65.

The best use out of term life insurance can be gotten by young people, which might need only short-term or temporary insurance. A good example are growing families that are young, that need a simple life insurance coverage but have a smaller income.

Other situations where this type of insurance is good, is the mortgage, where the need for it decreases in time.

Premiums are cheaper as the person getting it is younger. And, since the premiums remain the same during the entire term, a longer term will save you more money. If you’re young, you can get a big insurance death benefit, by paying only a small premium, until you reach the age of 65.

Another thing that is beneficial is the “Return of premium”, a feature in some term life insurances. If you choose it though, you will usually pay a bigger premium and you need to pay the policy until it’s done, or the premium benefit might be forfeited.

Final Expense Life Insurance

The sale of final expense life insurance opens up dormant prospects. Final expense life insurance representatives employ intense selling techniques with a senior.

Looking confident but insecure, the sales agents feature dollar symbol tattoos etched upon their chests. Typically enlarged eyes like low-cost red neon glare as their looks show signs of being famished. In spite of this, these indicated company agents resemble an assassin centering in on the newly generated money target… a senior citizen.

Just about any older senior citizen has gained ample deep-rooted ability by encounters with nonstop sellers. Stricken by a sales figure quota, the sales agent keeps trying to hack continuously for sales closings. Stabilizing in for improved position gets him shifting backward, bordering on dropping back just like a gunshot hare.

The sales agent gives his best presentation. All the same, in all certainty this is absolutely not a quick game, yet this still is an important matter of life and death..By this time many newer career agents get raindrops of anxiety arising swifter than the countless stars in the sky.

The retired weakened senior catches his breath and then takes an object out of his new sweater zippered pocket. Out from an undersized vial of prescriptions, he removes a singular one, more shrunken than an upsetting bug. Without water to drink, the speck of the potent nitrate is centered then below his tongue.

Wonder overwhelms the representative, now aware that this is absolutely without doubt no chunk of sweet stuff. Making a response, the senior citizen starts commenting in a gentle scratchy vocal tone. He replies it was a nitrate pill as previously he had sustained a congestive heart stoppage. Flowing words & phrases bring figures of a full-length account of health circumstances. Then a smile glows, as a gesture to the agent to dismiss the final expense life insurance.

No doubt he had completely been outdone. How could this retiree still be persuaded even if he rips the paperwork form from the agent’s possession? His plans of a high demanding canned sales recital turns to a grinding halt. The newer agent is mum. And then finally he knows that letting a client feel being in a burial place is absolutely cold.

On this occasion with the mild light wind, the conversation adjusts to one of interactive mutual interest. The topic is fishing.. This improved topic activates passion, even if at points the vastness of trophy fish landed most certainly appeared to be expanded.

This newer agent notices how swiftly the chitchat among the two flows back & forth. Maybe securing the respect of the potential purchaser to approve of you is much more gainful than fighting disputes? Perhaps confidence evolves into being as potent as facts and results?

Closely after comes a move surprising the agent, similar to a creepy cockroach unveiled to a spotlight. The older senior citizen pulls from inside his wallet a picture of his individual grandchild. Next gently nudging the sales agent he asks, “Will you tell me of the final expense life insurance?”

The company agent holds to his very greedy wants only,. Not at any time does he inform the senior that the final expense life insurance coverage will absolutely be turned down. Still, much like a crafty rat in an infested attic, he scurries finding the insurance application. The good man even asks for being insured for the greatest amount. Not even finishing the all-important paperwork form, the trustworthy big-bellied new buyer goes into a far end passageway. Reappearing, his fist is skintight encircling a roll of cash.

Close to drooling, the agent needs this newest purchaser to merely sign the policy application. Arriving at the office later, the agent knows the final expense life insurance application is not truly guaranteed issue. Quickly he makes an unusual decision. The sales agent, very low on funds, decides to swindle the $700.00 and destroy the application form.

Two years later to the day, the senior has his bright light turn to final darkness. After the burial and coupled with grief, the grandchild finds he does not receive one dime.

Case shut… but not completely. That precise identical time, a young chronic drunk rams through the metal barrier aside a hill. Someone with identity comparable to the former agent’s likeness is at once being engulfed in glowing flames. After his instant cremation, no life insurance coverage is ever located.

Best Way to Find Affordable Insurance

It is everyone’s duty to insure themselves with the right insurance. It gives your family an assurance that no matter what happens, they will always be taken care of. With so many insurance companies available in the market, it is tough to go through each and every single one of their brochures and talking to all the sales representative in order to make a decision. It takes up way too much time and effort.

However, with access to internet, searching for affordable term insurance cannot be simpler. You no longer have to search and talk to individual companies. You can simply get a life insurance quote online.

Most importantly, through the internet, you can find the most affordable term life insurance available in the market with just a few simple clicks. This is because there are places for you to enter all your needs and give you a quote to not just one company, but quotes to all the major companies in the market.

With the convenience of having access to all of it online, you can easily get the most affordable term life insurance for the premium that you would like to have. And…you can have all of that in an instant. No more tedious and time wasting effort required.

Plus, with all the quotes available in one glance, you can simply pick the one that is suitable for your budget or choose the best policy that has the greatest benefit at the lower price.

So if regardless if you are on the first step to getting insured or am determined to get one today, you can have all the information you need in just a few clicks away by getting a quote online.

Insurance Life Settlements

Someone once said that change is the only constant in life. Life insurance, of all places, provides the underlying proof to this remark. Something called a Life Settlement has sprung up in this heretofore stodgy industry.

As one would expect, a Life Settlement is a financial transaction between the policy owner and an entity called a Settlement Provider. The policy owner sells his policy to the Settlement Provider. Thanks to the emergence of this relatively new financial transaction a person in possession of an unneeded or unwanted life insurance policy can sell his policy to a Settlement Provider for more than the cash value offered by the life insurance company.

People sell their policies for a variety of reasons. They range from premiums being no longer affordable to a beneficiary predeceasing the insured. Sometimes the policyholder owns multiple policies and wishes to eliminate one or more of the policies.

Maybe the insured needs money for long term care, ongoing medical bills or wants to replace the policy with a survivorship type of policy.

Estate planning may dictate a change in insurance coverage or the insured may wish to transfer the cash into higher paying investments. Charitable or family gifting arrangements may now be the best means to distribute assets or cash.

Some folks may have experienced bankruptcy forcing a complete revamping of their financial plan. Others may have become unemployed or under employed. The circumstances are as numerous and diverse as the population.

Businesses utilizing a key-man policy may find it is no longer necessary because the
business has folded or the individual is no longer integral to the business’s success.

All in all, the sale of the policy allows the policyholder to maintain a desired standard of living and live out his final years with dignity. Personal welfare and comfort rank high on the policy sale consideration list.

Generally speaking, people with universal life policies make up the bulk of current policy sellers. However because the industry has matured in its ability to perform accurate financial analysis and predictions, term insurance owners are now able to come to the table and receive consideration for what was once considered a worthless form of insurance.

Heretofore, their only options were to let the term-life policy lapse or convert at a premium increase. The only party benefiting from this travesty was the original insurance company. They received premiums for a certain number of years and because of the lapse, they faced no obligation to pay the face amount. Profit in its purest form.

This meant the policyholder simply lost everything no matter how much money he now needed to pay medical bills, living expenses or meet long term care obligations. Thanks to the secondary market, Life Settlement, the opportunity for term life insurance owners has improved. They too now enjoy a liquidity almost on par with whole life policy owners.

Since they can be sold with a life settlement as long as the policy still can be converted, their face value can be lower. This has transformed them from a worthless program to one gaining value in the eyes of the Settlement Provider.

Life Settlement is, and will remain, an individual choice. It may not be right for everyone but it is an important option on the personal welfare menu that could possibly increase the return on a policy owner’s life insurance program.

Beneficiary Insurance Life

A major issue in planning is who to name as beneficiaries on life insurance policies. The beneficiaries of a life insurance policy will generally receive the death benefit proceeds federal income tax free. A beneficiary is the one who receives the proceeds of a trust, retirement plan or life insurance policy. Most policies and plans will not directly transfer assets to minors until a trustee or a court approves a guardian. A trust may be a prudent beneficiary choice, if a surviving spouse cannot manage a large sum of money. It is of utmost important to name secondary beneficiaries. If an individual dies without a valid will then that state’s law specifies the order of legal beneficiaries to whom assets are distributed. Most of us tend to name minors as our beneficiaries when we buy a policy. For their sake, minors cannot receive or control proceeds.

In most jurisdictions, state law determines when children are entitled to receive the insurance proceeds. Remember, if you list descendants among your beneficiaries, you’ll need to add new children or grandchildren when they’re born. And divorce and remarriage should always spur a review of your policies and beneficiaries. Even updating relatively minor points such as changing a daughter’s last name after she marries should not be overlooked. Naming your estate the beneficiary of life insurance proceeds rather than naming specific individual beneficiaries is not the best option. It’s smart to name contingent beneficiaries in case something were to happen to your primary beneficiary. If you name children, you may want to address whether their children should inherit proceeds if they’re not living.

It is wise to consider a number of situations of your family when it comes to choosing beneficiaries. Moreover, it always better to consult your attorney or investment consultant for specific and unbiased advice.

Texas Health Insurance

Just a small delay in relaying medical information can cost the life of a patient. With nurses spending more time with patients than in the workstations, it is unavoidable that there would sometimes be a delay in getting information from the nurse to other health care providers. According to Myra Davis, the vice president of the information services at Texas Children’s Hospital (TCH), they are having trouble establishing an effective communication system. Since TCH understood how important communication can be, they started using the popular Apple iPhone to help.

TCH placed a community charging station where nurses get an iPhone at the start of every shift. Nurses need to update their work status whether they are busy or available. To inform the physicians about the current condition of the patient, they only need to send a text message. The alarm management system installed in the iPhone automatically prioritizes and delivers critical care alerts. It will also send a message if someone tries to text a user who is offline.

According to Davis, rules were given to prevent nurses from being flooded with alerts because that could desensitize them resulting in reduced effectiveness. The alerts need to be based on the severity of the case and what type of health care is required. They will only receive alerts that are pertinent to them based on the degree of severity. Davis hopes that this new project will result in faster and more effective communication so that patients will receive better health care.

While some of the life-and-death choices like how to relay critical information may be out of your hands as a patient, the life and debt choices are yours to make. Just as miscommunication in health care can be a matter of life and death, not realizing the limits of your Texas health insurance coverage can result in major medical debt.

TX health insurance plans come with a complicated mix of co-insurance, co-payments, one or more deductibles and sometimes multiple exclusions and limits. Not taking the limits of your coverage into account or not recognizing what may be excluded under your TX health insurance plan can leave you with a mountain of unexpected debt. Take the deductible, for instance.

A deductible is the amount of money that you have to pay out-of-pocket before your health insurance coverage starts. Basically this is an annual amount that you need to be spend on health care in a given year before your coverage starts. This year, states that didn’t get a waiver allowing them to delay meeting federal health care reform standards, offer plans that pay for preventive health care without charging anything beyond the premium. That means it doesn’t matter what the plan’s deductible is. You can get free preventive care before the deductible is met as long as you use a provider within the plans’ provider network.

For services beyond preventive care, you still need to meet the plans’ deductible before coverage begins. And, that’s where you could really get into trouble if you don’t clarify how the deductible is being applied. One family, for example, believed their plan had a $5,000 deductible, but they could have ended up spending four times that amount to meet the plan’s deductible. It was actually per person rather than per year. A couple with two children could, in a very bad year, need to spend $5,000 per family member before coverage was available for services beyond preventive health care.

Even after the deductibe has been met, you could still have out-of-pocket costs. Co-insurance is the amount of a medical claim that you need to pay if your coverage is less than 100 percent. For instance, it is common for Texas health insurance policies to have an 80/20 split, but other splits exist, like 70/30. Depending on your TX health insurance policy, you may have to pay for a percentage of charges after you’ve spent enough to cover the deductible.

Not all policies are created equal, at least until the Texas health insurance exchange is available in 2014. At that time, plans will be more standardized to help the public figure out what they’re buying. Right now, you still need to watch out for exclusions and limits on benefits. For example, a policy with a $500 limit on hospital expenses per day would surely be a ticket to bankruptcy for many people in the event they needed prolonged hospital care. Until the state exchange is available, it might be a good idea to get a second on any policy that looks good on the surface. Unlike company insurance agents, independent health insurance brokers can compare policies from different Texas health insurance companies. Looking them up online may be your best bet to get help comparing your coverage options.

Life Insurance-Life Settlement

They fought over seas for their country during World War 2; they helped build this nation economy with their own hands. they worked very hard in cooperate America for decades and now they live off their social security , savings , investment and pension funds. God bless the senior citizen of America.When they were young they knew that one day they will have to retire. They tried to prepare themselves to that day and worked very hard for it. Now they know that their current income will not be enough to support them since they are going to live longer.With advance in technology and medicine the life expectancy of all American has been raised to a point where people now live 5-10 years longer than they expected.At the bottom line it means they need more money for retirement. How do they get more money? They have been out of the work force for years now. Whatever solution they may come up with, it must be legal and fast.

Today’s financial market offers many tools and programs to support those senior citizens and satisfied them with their needs. Program such as home equity loan and reverse mortgage have been around for a while now. The only problem with those programs is the price that the senior is paying. In most cases they lose their anchor asset, their home. Other tools would be annuities which will generate fixed income but require a deposit of cash. Life settlement, which is the sale of an unneeded life insurance policy and lately there is a new option that has to do with one home equity.

Equity key option provides an entirely new estate planning tool for high-net-worth individuals.
The Equity Key Estate option is designed for clients whose home is valued at $2 million or more, and who have a net-worth of at least $5 million.The senior home owner gets cash payment, based, in part, on how many homeowners are participating, and in exchange, they share any future appreciation with the Equity Key program.If one homeowner participates, Equity Key option usually pays 10% to 15% of the current value of the property today, and basically share the future appreciation with the client.If there are two qualified homeowners, and both choose to participate, they would collect anywhere between 20% to 30% of the property’s current value now, and Equity Key option program would receive 100% of any future appreciation.
Equity Key option program offers senior’s citizen a new way to address basic estate planning, including a shortage of cash.

Clients have used the funds they received to diversify their assets. Some can choose to invest in other real estate while some choose to invest in various financial markets.

Other Equity Key Estate clients may pursue an Equity Key option in order to experience the benefits of charitable giving now, while they’re in a position to witness the fruits of their generosity.

In conclusion I must say that as due to my interest in both real estate and life insurance I have found this program to be very beneficial to the senior. Since the whole option is being backed up with a universal life insurance where the bank is the owner and beneficiary of the policy and the senior act as the insured and a key man. Due to the fact, that the senior has been approved by a life insurance company and found to be insurable, will open few more option to the seniors. One option will be to apply for a life insurance policy and use the proceeds from the equity transaction to pay for it or to apply for a carrier approved premium finance program and finance the high premium. By doing so the senior will protect the estate from the estate tax and will have more money to live on while alive and more money will be left to the heirs.

Protecting Your Family – Health Insurance

A recent survey by Harris Interactive for America’s Health Insurance Plans (AHIP) found that most Baby Boomers underestimate their risk of missing work for an extended period of time due to a disability. Yet they believe that they are more likely to suffer such a disability than to die prematurely. What’s wrong with this picture? Like most breadwinners, Boomers buy family health insurance and life insurance to protect their families while skimping on long-term disability insurance.

How far off are the disability risk guesstimates of most Americans? A study sponsored by the Life and Health Insurance Foundation for Education called “The Real Risk of Disability in the United States” found that a white-collar worker between 35 and 65 years of age has a 27 to 31 percent chance of becoming disabled for 90 days or longer. Unfortunately, the duration of disabilities has increased substantially in the past few decades. In the 1970s and 80s, a 35-year-old male with such a disability would have been out of work, on average, almost four years. Today it’s six, because better medical care means that people with terminal illnesses are living longer. It does not, however, mean they are able to pull in their pre-disability income while they’re ill.

Steven Crawford, a Maryland-based disability insurance specialist, believes that a well considered policy is the keystone to any sound financial plan. Unfortunately, he notes, most financial advisers, not to mention the media at large, rarely mention the subject, even though a person’s ability to generate income is by far their most valuable asset.

“Everybody should have the maximum [benefits] they can afford,” Crawford says. “Somebody 20 years old-their liability is huge. A 55-year-old’s liability is less.”

Figuring out how to find quality, low cost health insurance suited to your specific needs is a time-consuming process. First, you have to determine how much you’ll need to maintain your lifestyle, remembering to factor in new expenses that could arise due to your disability. Then, you calculate what income you’ll receive from sources beyond a private health insurance plan. These include benefits from your employer’s group plan, your personal savings, and possible government benefits such as social security disability insurance.

“If you’re making a six-figure income, you really shouldn’t be covered by a group long-term plan,” Crawford says. The coverage is cheap, but you’re not going to receive nearly enough of your pre-disability income to sustain your current lifestyle. Sixty percent is the standard rate of income replacement on most plans. Why not higher? According to Crawford, the insurers want to pay “the maximum amount needed for you to get by without removing your incentive to go back to work.”

The subject is unpleasant for many, which may explain why so many people think of injury when they hear the word “disability.” In fact, according to AHIP’s Guide to Individual Disability Income Insurance (www.cap.org/apps/docs/insurance_programs/AHIP_Guide_Individual_Disability.pdf), 89.5 percent of claims are caused not by injury, but by illness. The guide is a great source of information about the many types of policies out there and the enormous variety of choices within each and every one of those policies. It also contains a checklist of questions to ask a reputable, knowledgeable agent when you’re ready to face the realities of your disability insurance needs.

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Life Insurance

While reverse mortgages are becoming increasingly popular, there is another venue by which senior citizens can have extra cash that may be much needed or wanted simply to enjoy. Are you age 65 or older? Do you have any health problems? Do you still own a life insurance policy that has not yet matured? If you answer yes to these three questions, you may be a good candidate for a life settlement.

In a nutshell, a life settlement is simply selling your life policy for a cash amount greater than its cash value but less than the death benefit or face amount. The particulars can get complex so if you seriously pursue settling your policy, you will need experienced advice. To help make your decision, let us look at some advantages of selling a policy:

  • Immediate cash for needs or wants.
  • No more premiums.
  • Extra monthly cash on hand.

The disadvantages of selling a policy include:

  • The settlement money is taxable.
  • The cash can jeopardize eligibility for social services benefits, such as Medicaid.
  • No tax-free death benefits for survivors.
  • Future insurability can be jeopardized.
  • Confidential information can be compromised.
  • No control over policy ownership.

Life settlers look primarily for clients who are age 65 and older, have a life expectancy of 3 to 15 years and own a policy with a face amount of at least $250,000 to $1 million. As this industry grows it is expected to reach for smaller policies but at the moment, only large policies are generally sought. The basic rules to remember are:

  • Sell a policy only if you no longer need or want it and do not anticipate needing life insurance in the future.
  • Consider alternatives to selling, such as using your cash value to buy reduced, paid-up coverage or an extended term insurance. Your advisor should go over the alternatives with you.
  • Compare the financial benefits of selling the policy with keeping it. Again, an experienced advisor has the tools to show you today’s value of future money so you can see if ‘holding’ or ‘folding’ is better for you.
  • Sell only to institutional buyers. This will give you the best price because these companies compete with each other for policies to buy. In fact, they bid for them much like you bid for items on eBay.

If you decide to inquire about a life settlement, seek a life settlement broker or life settlement firm. The fewer people in the chain, the more money for you. If you decide to sell your policy, expect the whole process to take 3 – 6 weeks. At the very least, you will be expected to:

  • Provide your medical records for analysis.
  • Undergo at least one physical examination.
  • Have your finances thoroughly examined.

In addition, you may be asked to certify that selling your policy is not going to bring later legal action. Too many life settlers have been sued by angry heirs claiming that the policy owner, “did not know what he was doing”. Because of this, your own mental competency will be the first thing to be certified.

In working with the broker or buyer, keep in mind:

  • Insist on disclosure of the broker’s fees and all offers that are made.
  • Insist on confidentiality. Your policy may be resold more than once and subsequent buyers do not need to know who you are or where you live.
  • Pre-settlement expenses are part of the investment costs and the buyer should pay them.
  • Once you sell the policy, the new owner pays the premiums. Also, once you have sold your policy, expect to be called periodically about your health.