Nov
13

Level Life Insurance

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Level term life insurance as the name suggests means that the premium for the policy stays the same throughout the term of the policy. That is, they remain leveled.

There are a number of factors to consider when you are taking out level term life insurance. Some people may want a short term policy designed to be put into play till the policy holder’s children graduate from college for instance.

This policy is unlike whole life insurance. With whole life insurance, the cost increases with time – thanks to its investment aspect. With level term life insurance, the premium and hence the cost of policy remains the same throughout so you know exactly what you’re getting when you buy such a policy.

You must decide on how much coverage you will need before you take out a policy. You need to determine how much your family will require, in case of your death, to remain financially stable. This is in turn linked to how much you make yearly.

Another question you will need to address is how much premium you can afford. Even if you have the advantage of a premium that will stay leveled through the tenure of the policy, you still have to pay it and pay it every month.

The next decision you need to make is that of how many years you want to take out the policy for. It is important to decide for how many years you will require coverage. When deciding how long you want coverage for, consider factors like how long your offspring are dependent on you.

You can take out level term life insurance for 10, 20, 30 and 40 years but remember that the longer your time period for the policy, the higher your premium will be. Some insurance companies give you the option of renewing your policy once it expires.

If you are looking to take out a life insurance policy, then level term life insurance will prove to be a cheaper option when compared to whole life insurance. This is because you get a clear picture of how much you will pay every month without the fear of your premium increasing with time as with whole life. Also, because no portion of your money is allocated to the investment option, you know how much you will get back – which is not the case with whole life insurance.

Categories: Personal Loans
Nov
13

The advantages of term life insurance policies

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Term life insurance provides cover for the insured party over a fixed time period or ‘term’. This insurance is valid for the period set, and payments are made during that time up to the level of the premium, and if the insured party should die during that term a death beneficiary payment will be paid out. The length of term generally ranges from one up to twenty.

One of the main advantages to this type of life insurance is that the premium is usually much lower to begin with than with full life insurance and is therefore more affordable to those who need it. It may be difficult for younger persons to be able to pay for full life insurance, and this is especially dangerous financially for those who do not have a high level of job security. Agreeing to a long length of contractual payouts can be a bad option for those who cannot guarantee their future income. This is why it is safer for those in such circumstances to choose term life insurance.

The premiums start at a much lower price and this makes it affordable to younger persons who are usually most in need of the coverage. This is a time when people often have more financial obligations such as mortgages and car loans etc. This is also the time in someone’s life when they have the least amount of personal savings to fall back on if something did happen. The premiums on this type of insurance increase with each renewal as the clients become older and the likely hood of claim increases.

The premium starts at a lower price as the likely hood of a claim is very low. Most companies will require some form of medical examination prior to the insurance being taken out. This is so that they can base the cost of the premium around the individual’s situation and health condition. If you are in good health, then it is good news as it means that the premium should be low. One problem that can occur though is that should you become seriously or terminally ill during the fixed term, when it comes to renew the policy the premium may be too high to afford, or may even not be available. In cases such as this it is often necessary to switch over to a full life cover.

The fact that in agreeing to a fixed term only ties the client into a contract for a certain amount of time means that if your financial situation has significantly changed from the time the term began to the time it ended, you then have more options available to you. For example, if you started a 10 year term life insurance, and at the end of that 10 years you had a significant amount of personal savings, you may not feel the need to take out any further coverage.  However, if you still require coverage you ca arrange the next term based on your current and foreseeable financial situation.

Categories: Personal Loans
Sep
29

The Benefits of Term Life Insurance

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Term life insurance gives you the option of selecting your own length of policy as well as the coverage amount. This is a much cheaper method and many people are not aware that such a policy even exists.

Some of the benefits of you purchasing this policy are:

Like mentioned before, it is a cheaper option. You do not have to invest thousands of dollars but just mere hundreds when you buy term life insurance. Also, in the early stages of your policy, the premiums are also lower than other types of insurance and this allows you to buy higher levels of coverage.

Term life insurance is simple and easy to understand.  Because it is so affordable, specific goals that you want to achieve in your life can be met by purchasing the coverage you require.  It has the option of flexibility which helps you formulate a plan that fits your budget. Usually, it is considered as the best option for families because it is so practical. This money is usually used by families to pay off outstanding bills – like credit cards or any medical expenses incurred.

It can also help cover certain needs that occur during tough times in life such as mortgage on your house; which will disappear with time.  That is, term life policy is good for short term needs.  Another common example of this is your children’s education fees.

Most parents would want to purchase a life insurance policy that expires after their children are done with their college education ensuring that this cost is taken care of – if something were to happen to them. The wise thing to do is match the term to your needs.

Also, with term life insurance the pay outs are generally larger than other types of policy. This is because it is unlikely that a claim will be filed during the term so insurance companies can offer larger payouts to the issuers purchasing the policy.

You can invest your money yourself rather than depending on an insurance company. Insurance companies work in traditional ways and are generally conservative with how they invest your money. By choosing a term life policy you cannot only save money but also make more money by being less strict with the type of investment you choose. If you are good with money, then this can work in your favor. You can take your pick according to the your financial situation.

Categories: Personal Loans
Sep
29

Life insurance policy covers

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What any life insurance policy covers is subject to the terms of the individual policy. While term life insurance covers the same causes of death as whole life policies, stipulations can change the coverage and value of the contract.

Accidental Death Coverage

Some life insurance coverage is specified for accidental death, which is good should the insured die in an automobile or work related accident. The weakness lies in the fact that death by natural causes is omitted. The people who depend on the insured’s income for the lifestyle they have will be just as much in need of benefits whether the death was caused by an accident or not.

Strange Situations and Term Life Coverage

The reason why an insurance policy should be studied carefully is because the stipulations of when and if the benefits are paid are non-standard from one policy to another.

No policy is going to pay benefits if the insured commit suicide, but very few pay off when death is the result of acts of war or civil unrest. Most policies stipulate that murder by the beneficiary is not grounds for payment, which is understandable.

Most insurance policies, for all types of life coverage, will not pay out any benefits until cause of death is determined. When a person dies under suspicious circumstances, it throws up a flag that fraud might be involved. An insurance company will seek to protect its own interests.

Special Exclusions

The circumstances of a person’s health at the time of signing a term life insurance policy may lead to certain exclusions that won’t be considered as causes for paid benefits. Although the coverage might be limited for someone with an incurable disease, to any cause except the disease, it is often worthwhile to have a policy anyway. The illness might be treatable and not the only concern for the insured.

Occupational hazards can be reasons for exclusions, too. A racecar driver might be able to obtain coverage for any situation as long as it does not include death by an accident on the racetrack or due to racing in general.

Other reasons for benefits to be withheld include dishonest statements by the insured. The questionnaire that an applicant signs must have correct answers or the insurance company can declare coverage null and void should a beneficiary seek compensation and the false information is discovered.

Coverage for term life insurance is clearly spelled out along with any exclusions, and policyholders should understand the terms and conditions for the policy up front.

Categories: Personal Loans
Aug
20

Understanding Term Life Insurance Quotes

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If you’ve ever read a policy for term life insurance, you probably became confused with some terminologies and had to get a translation into plain English. Aside from questions on terminology, there may also be many questions regarding the policy inclusions and exclusions.

Here are some pointers on understanding life insurance quotes:

Online Quotes for Term Life Insurance

When you seek a quote online, you must provide accurate information about yourself to get a response. The process takes very general pricing structures and applies them for a quick assessment of your current age and health. A quote may end up varying somewhat once more extensive information is made available that effects the true cost of a policy, such as information from a medical exam.

You may be shocked to get a price that is higher than a quote you first received, and you may possibly get a quote that is lower that originally estimated. This is not because an insurance provider is attempting to give an erroneous number just to get your commitment; it’s just that a more in depth assessment of your health and living habits has an influence on premium amounts.

Why Rates Increase for Term Life Insurance

Most of what causes rates to increase are caused by the person insured. The insurance company prefers to insure healthy people who will usually live long lives, unless they are involved in an accident or diagnosed with a health problem, because they are a lower risk. Some of the causes for higher premiums include:

* High cholesterol – There is no industry standard on cholesterol, but above average levels will increase premiums.
* Height to weight ratio – The more variation from the recommended height to weight ratio, the higher the term life insurance rates because of the health problems associated with being overweight.
* High blood pressure – There are a number of health problems attributed to blood pressure, and each points to a shortened life cycle.
* History of family health – This is why your questionnaire asks about the history of disease and health problems in your family.
* Lifestyle activities – If you regularly participate in a dangerous sport or activity, it will increase your premiums, if you can get insured at all.
* Driving history – No one wants to insure someone with tickets for reckless driving or speeding.

Life Insurance Provider Choices

Price and performance are the two top reasons people give when asked what they want from a life insurance company. It is possible to get many varying prices for term life insurance based on the companies that quote coverage. Pricing comes from factors like the rating of the company and who underwrites the policies. A rating of A or A+ identifies high financial stability for an insurance company.

Categories: Personal Loans
Jun
22

Are you too fat for life insurance?

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By Susheela Bhat, Life Quotes, Inc.

First the good news: if you’ve picked up a little weight over the winter, chances are your life insurance won’t be too badly affected. Any more than that, then you’ll have to cut the fat, or your insurers will charge you for it.

The bad news is, as a nation, we’re getting fatter. This is a huge problem for the life insurance companies, because obesity leads to a host of other serious health problems.
What’s the cost of being obese in insurance premiums?

“People who are obese are at a higher risk for serious conditions like heart disease, Type 2 diabetes, osteoarthritis (a common joint disorder) and certain kinds of cancers,” said Dr. Don Behan, Senior Research Associate at Georgia State University’s Center for Risk Management and Insurance Research. “When insurers are evaluating a person, his or her length of life is often discussed in terms of life expectancy. Mortality depends on age, gender, health status, habits such as smoking and drinking alcohol and participation in dangerous activities. Mortality rates may be estimated on the basis of these characteristics.”

Obesity is determined by the amount of body fat a person has relative to their muscle, bone and organ tissue. The sum of body mass is a simple mathematical calculation determined on your height and weight, and compared to a standardized body mass index (BMI) chart. The Centers for Disease Control and Prevention list an overweight adult having a BMI between 25 and 29.9. An obese adult would have a BMI of 30 or higher.

Hypothetically speaking, if a male nonsmoker, age 55 wanted to get about $250,000 of life insurance and had a BMI of 38, he would be paying an estimated annual premium of $4,256. If a 55-year-old nonsmoker male with a BMI under 30 wanted the same amount of life insurance, he would pay $3,767 annually, according to Dave Redpath, Assistant Vice President of Underwriting at Hartford Life. While these are estimated numbers the fact remains; the higher the BMI, the harder your wallet will get hit—not just for life insurance, but paying for potential health problems down the line.
Women at risk

Now for the worse news: If you are an obese female, you are at higher risk for endometrial, breast and colon cancer.

“Adult females seem to be impacted more by obesity than males when it comes to certain cancers, because there hasn’t been a link between prostate cancer and obesity,” said Behan.

Although some experts believe BMI is not the best way to measure if a person is obese, “It is possible for a person to have an ‘unhealthy BMI’ because they are very muscular, but in a general population, this is an exception to the rule and BMI is a good standardized tool to gauge healthy weight,” said Behan, who also said life insurance companies would not use BMI as a sole measurement, but would also take into account things like family history and body fat percentage.

If you would like to know your BMI, you can check out the National Heart Lung and Blood Institute’s free Body Mass Index Calculator.

To get low cost life insurance and avoid potentially devastating medical bills in the future, the answer is fairly straightforward. A healthy diet, exercise and a healthy weight are the best way to go. Also, if you join a wellness program at work or hire a personal trainer to lose weight, document your progress and tell your insurer. This will help your agent evaluate a fair assessment of your current health status, and could land you in a lower rate category. Keep in mind, that folks who are underweight can also be charged higher rates for insurance, said Redpath. The key to getting good rates is obtaining a healthy bodyweight.

While nothing beats a well-made hamburger, you’re generally better off grilling out at home than heading to a restaurant to get your burger fix. Like many delectable items found on a restaurant menu, the hidden calories in restaurant burgers can have you eating twice as much than you would normally in one sitting. So before you sink your teeth into that juicy piece of meat read this list of the top 7 worst burgers in America and weigh your options.

*Note: The nutrition information was verified using the nutrition charts of each restaurant.

#1: Denny’s Smokin’ Q Three Pack With a combined 2,020 calories, 110 g fat (22 g saturated, 3 g transfats) and 3,570 mg sodium, this “little” snack stacks up to being the equivalent of three meals, with more than the daily requirements of fat and sodium in each bite.

#2: Cheesecake Factory Ranch House Burger This monster of sautéed onions and bacon weighs in at a staggering 1,941 calories, 48 g saturated fat, and 2,877 mg of sodium. Not as bad as the #1 contender, but when compared to the Cheesecake Factory’s alternative; The Factory Burger, with its 737 calories, 15 g saturated fat and 1,638 mg sodium it looks a little obscene.

#3: Chili’s Jalapeno Smokehouse Bacon Burger Although compared to its predecessors above, this burger’s 1,750 calories don’t seem too bad, it makes up for this with a whopping with 123 g fat (40 g saturated) and an salt mine’s 5,250 mg sodium, almost four times your recommended daily allowance of sodium.

#4: Ruby Tuesday Triple Prime Havarti Burger This “gourmet” burger may look skinny (relatively) with its 1,465 calories, but it’s got 116 g fat that are anything but, and 2,404 mg sodium.

#5: Red Robin A.1. Peppercorn Burger Like the Ruby Tuesday burger, Red Robin’s has a measly 1,433 calories, and 97 g fat. The catch to this burger is its 5,618 mg sodium, making it the most sodium-laden burger in this list!

#6: Applebee’s Quesadilla Burger You guessed it, they replaced the bun with a tortilla. At 1,420 calories, 104 g fat (43 g saturated, 3 g trans) and 3,740 mg sodium, this thing is a huge plate of fatty disaster. Not to mention…burger purists might not classify it as a burger if it’s not on a bun.

#7: Wendy’s Triple Baconator Considering how “little” a fast food burger is, this one’s 1,350 calories, 90 g fat (40 g saturated, 3.5 g trans) and 2,780 mg sodium are a huge shock. Especially considering Wendy’s has a healthier alternative in the Wendy’s Double Stack with 3 strips of bacon at 400 calories, 21 g fat (9 g saturated, 1 g trans) and 990 mg sodium that won’t have you scheduled for coronary bypass surgery after eating it.

This article was originally published at Life Quotes, Inc.

Categories: Personal Loans
Jun
22

Life Insurance For Seniors

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Senior life insurance is more expensive than life insurance for younger individuals because seniors are more of a risk to insure. That may sound unfair, but the biggest factor that determines life insurance rates is life expectancy.

Life insurance companies go through a process they call underwriting. This process involves taking a good look at the applicant’s life, including hobbies, health, health history, family health history, age, sex, height, weight, and even DMV records.

This may seem like a lot (and even an intrusive look into your life), but the point behind it is that the life insurance company has to make sure you are not too much of a risk for them to insure. If they insure too many people that are too great of a risk, they put themselves in a bad situation where too many death benefits are being paid out and the company loses financial stability.

Because life insurance companies have to pay death benefits to the beneficiaries of policy owners that have died, people who are more likely to die will always end up paying more for life insurance—if they are able to get a policy at all. (Yes, there are many people that get turned down because they are too much of a risk to insure).

In short, because seniors are older and closer to passing on, life insurance will be more expensive for them.

Now, just because life insurance will be more expensive does not mean that you should just apply with anyone.

There are many life insurance companies. Each company has favorable rates for different cross-sections of the population.

To make sure you apply with one of these companies, you need to apply with a life insurance agent or agency that understands which companies are the best for people like you.

Categories: Personal Loans
May
14

Term Life Insurance Policies

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Term life insurance is so called because it is for a specified ‘term’ – this could be for 2, 4, 12, 16 or 20 years. It also sometimes referred to as ‘temporary’ insurance. If the issuer passes away during the time of the term, then a cash payment is made to beneficiary. If the policy holder passes away after the specified term period, then no cash payments are made out to the beneficiary. Also, once the term is over and the policy is not renewed or availed, the coverage ceases.

Term life insurance covers you for a certain amount of time – the term. The term that is suitable for each individual depends on different factors such as how many years of schooling the children have left and how many years until you retire. Sometimes people will make sure they’re insured until they retire. Others will want insurance until their children finish and graduate school so that they can cover those tuitions fees.

There are different types of term life insurance policies and they have different courses of action for when the term is over. They are:

Annual renewable term insurance – this policy is renewed after every year up to a specified age say 60 for example. Chances of you dying also increase as you get older. Because of this reason, it is easy to understand why the premium on your policy also increases as you renew. However, if you purchase your policy when you’re young and in good health, you can take advantage of a comparatively cheaper premium than you would have to pay when you grow older.

Renewable term insurance – ensures that insurance company allows you to renew your coverage at the end of your term – even if you haven’t been doing well health wise and are ill. This is similar to annual renewable term in principle but it has the added advantage of extended, extra time on your policy. However, this policy is more expensive than annual renewable because it has more risk to the insurance company for extending the policy. Premiums will also increase when renewed.

Level premium term insurance – this type of insurance policy makes sure that your premium stays the same “level” for the duration of the term –usually for 6 to 20 years. Companies calculate the average of what they would charge you for annual renewal and this is what they charge you on level premium. The big plus of this policy is that your premium remains the same throughout the tenure of your policy.

Decreasing term insurance – this is usually used when purchasing entities whose price reduces over time. With this kind of policy, the cash payments reduce over time while the premium remains level.

Convertible term insurance – these allow you to convert your current policy into any other policies offered by the insurance company. The advantage is that it gives you an option of switching according to your policy needs – which do change or need to be altered according to needs over time. However, this comes with comparatively more cost.

Categories: Personal Loans
May
14

How does the process of getting life insurance work

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How does the process of getting life insurance work?

1. Compare various life insurance quotes and make a decision by cost, insurance carrier rating, customer service, and who best meets your specific goals.

2. Select an insurance company and apply. An insurance agent will assist you in completing and processing the insurance application you chose. (Effective date of policies can be when initial payment to carrier is made during application process as long as you insurance application are approved by the insurance carrier and accept by you, the consumer, at the end of the process.)

3. Complete a brief medical exam. An insurance representative will schedule a medical exam by a mobile medical assistant at your home or office.

4. Application processed and underwritten. Your application is processed by your agent and then underwritten by the insurance company you chose to verify policy and rating classification. Determination is made whether to issue policy.

5. Policy issued. If approved by insurance carrier and accepted by consumer a life policy is issued and then payment is made by your option either monthly, quarterly, semi annually, or annually to the insurance carrier. Policies can be returned and refund of any premiums paid for up to 30 days (depending on state law)

6. Review the policy binder with your insurance agent. Your agents job is not only to find you the best insurance carrier for your health/age. He/she is also responsible to make sure any questions your may have on the policy may be answered, so you are clear on your coverage and its limitations.

Categories: Personal Loans
Mar
23

Understanding Term Life Insurance Quotes

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If you’ve ever read a policy for term life insurance, you probably became confused with some terminologies and had to get a translation into plain English. Aside from questions on terminology, there may also be many questions regarding the policy inclusions and exclusions.

Here are some pointers on understanding life insurance quotes:

Online Quotes for Term Life Insurance

When you seek a quote online, you must provide accurate information about yourself to get a response. The process takes very general pricing structures and applies them for a quick assessment of your current age and health. A quote may end up varying somewhat once more extensive information is made available that effects the true cost of a policy, such as information from a medical exam.

You may be shocked to get a price that is higher than a quote you first received, and you may possibly get a quote that is lower that originally estimated. This is not because an insurance provider is attempting to give an erroneous number just to get your commitment; it’s just that a more in depth assessment of your health and living habits has an influence on premium amounts.

Why Rates Increase for Term Life Insurance

Most of what causes rates to increase are caused by the person insured. The insurance company prefers to insure healthy people who will usually live long lives, unless they are involved in an accident or diagnosed with a health problem, because they are a lower risk. Some of the causes for higher premiums include:

* High cholesterol – There is no industry standard on cholesterol, but above average levels will increase premiums.
* Height to weight ratio – The more variation from the recommended height to weight ratio, the higher the term life insurance rates because of the health problems associated with being overweight.
* High blood pressure – There are a number of health problems attributed to blood pressure, and each points to a shortened life cycle.
* History of family health – This is why your questionnaire asks about the history of disease and health problems in your family.
* Lifestyle activities – If you regularly participate in a dangerous sport or activity, it will increase your premiums, if you can get insured at all.
* Driving history – No one wants to insure someone with tickets for reckless driving or speeding.

Life Insurance Provider Choices

Price and performance are the two top reasons people give when asked what they want from a life insurance company. It is possible to get many varying prices for term life insurance based on the companies that quote coverage. Pricing comes from factors like the rating of the company and who underwrites the policies. A rating of A or A+ identifies high financial stability for an insurance company.

Categories: Personal Loans