When should I update my Life Insurance Policy?

There are many reasons to update an existing Life Insurance Policy. Your life may have changed dramatically since you first purchased your life insurance policy. Contact your life insurance agent if your life has changed in any of the ways we listed below.

Major Purchase: If you make a major purchase you should contact your life insurance agent to set up a review and possibly update your life insurance policy. There are a couple items we consider major purchases. An automobile, swimming pool or boat is not considered a major purchase and should not be reflected within your life insurance review. A major purchase is a new home, refinancing your home, and a College Education. Purchasing a home or a College Education is a substantial investment and should be covered in your death benefit to ensure your family isn't burdened with the expenses.

Relating to a College Education when you have children you should consider a Life Insurance Policy review to ensure their College Tuitions are covered with your death benefit.

Marriage or Divorce: If you get married or divorced you should contact your life insurance agent to possibly change the policy figures but more likely to change beneficiaries. Your life will change when you get married or divorced so in any case of a life changing event you should contact your life insurance agent.

Other life changing events: Any event that will significantly alter your life like an ill family member, changes to you or your families health or coming into a decent amount of money be it professionally or by inheritance. A rule of thumb could be to consider a life insurance policy review when your life has seen a major change.

If you forsee the change in the near future it is better to act now than to wait so be sure you to contact your agent in a timely manner.

Why buy a 5 year term or 10 year term life insurance policy?

Why you should consider buying a lesser term life insurance policy

The title of this article may be a bit off. Not everyone should buy a shorter term life insurance policy however, there are some very good reasons why individuals should if the circumstances match up. In this article, I'll mention some obvious and not so obvious reasons why you or one of your family members should consider purchasing a 5 year term life insurance policy or a 10 year term life insurance policy.

Free Term Life Insurance Quotes

It's cheaper!

Ok, this is the obvious reason one may consider purchasing a shorter term life insurance policy. The longer the term the more expensive your premiums. So a short term insurance policy is quite a bit cheaper. The reasons for this is that it is less risky for the insurance company to insure. Of course your policy premium still has a lot to do with your health but in general the shorter the term, the cheaper the premiums. Saying that, I would not recommend purchasing a shorter term simply because it's more affordable. You would find out that once the policy is up your rates would go up and it would be quite a bit more to purchase three 10 year term life insurance policies back-to-back then to purchase one 30 year term life insurance policy. So why would someone want a shorter term?

It's for certain circumstances

When you know when your burdens are significantly reduced you can purchase a term life insurance policy to end at the right time. For example, if you're last child is a senior in high school and your well on your way to become an empty nester you can assume that your costs associated with education, and every other expense associated with children will be gone in 5 years then why not purchase a policy to cover that period. If you are in your 60's and are close to medicare or possibly cashing out some investments then you may consider a shorter term life insurance policy. Maybe your close to paying off your mortgage and all of your other expenses are covered through a different policy you may want to consider purchasing a 5, 10 or even 15 year term life insurance policy.

I believe we've made our point. It's all about timing and each term life insurance product is designed to meet certain instances and circumstances. Not every life insurance company offers shorter term life policies so you may need to shop around.

Keep your Life Insurance Policy Current!

There are many reasons why a Life Insurance policy lapses. The two most common reason an individual let's a Life Insurance Policy lapse is because they forgot to renew it or they don't think they can afford the insurance premium.

Allowing a Life Insurance Policy to lapse is a very bad thing. You may think you can simply call your life insurance company and reinstate your policy some time after it lapses similar to a cable, cell phone or electricity bill but the fact is you can't. If you allow your Life Insuracne policy to lapse it is very likely you will need to apply for a new policy. This can be very costly as you may have had a term life insurance policy locked in 10 years ago when you were young and healthy. There is no doubt your premium will now go up even with the same death benefit but how much the premium goes up depends on how well your health is. If your health isn't as good or you've taken up smoking or any change in your health will cause an increase in your life insurance premium.

Lets examine the most common reasons a Life Insurance policy lapses. Don't forget to renew it! Most life insurance companies have made it very easy to ensure you never forget to renew it. By implementing automatic withdrawal from your bank account you never have to write a check or mail a payment again. Your premium is deducted from your checking or savings account when the premium's due. The 2nd most common reason individuals allow life insurance policies to lapse is because they claim they can't afford it. This is a bad excuse as you can't afford not to have life insurance. When you die you will have expenses and you should be responsible to cover these expenses. There are ways to make a life insurance policy more affordable. The most common way is to adjust the frequency of your payments. Inquire about yearly, semi or quarterly payments as most life insurance companies will give you a discount for these payment types. Inquire with your insurance company about possibly lowering the death benefit. The most important thing to do is ask your company what options are availble but do not let your life insurance policy lapse.

Reasons why you shouldn't cancel your life insurance policy

Maybe your very fortunate and no longer require life insurance. This can happen for many reasons but a common scenario is when an individual receives or earns a large amount of cash. Enough cash to easily cover all expenses your family may receive when you pass away. If you have millions of dollars in an interest baring account, a home thats paid for and very little other expenses perhaps you don't need life insurance. You should consult with your life insurance agent to see if this is feasible scenario but in certain instances it is.

So you no longer need your life insurance policy. Should you call your life insurance company and tell them to cancel your life insurance policy? Remember, this is the same life insurance policy you've paid $X in premiums every year for however many years. Essentially, it's as good as flushing money down the toilet at this point if you decide to just cancel the policy. Sure it protected you when you needed it but now that you don't need it why keep it?

There are a couple good reasons to keep your life insurance policy. As I mentioned above, you've already invested some money into it. Your family is already covered in the event you pass so why not make the beneficiary someone else? Perhaps leave your death benefit to your brother in law (the struggling actor) or someone else that could really use it. Another good option is to leave your life insurance benefit to a Charity. Personally, I love the Animal Shelters so I would consider leaving the death benefit to a local Animal Shelter. You may want to consult with your Accountant but I believe when the beneficiary is a Charity then your premium payments are tax deductible.

So even if you don't need the death benefit consider keeping your life insurance policy.

What is No Exam life insurance?

A lot of people are talking about the new buzz which is no exam or guaranteed issue life insurance. No exam or guaranteed issue life insurance is a fairly new product in which an individual may purchase life insurance online with a credit card and receive coverage without having the annoying blood and urine tests done.

Get your free No Exam Life Insurance quote.

What does this mean? It means that almost anyone can purchase life insurance today and receive coverage the same day. Some people have problems scheduling time for testing and some people simply don't do needles very well. The convenience of being able to purchase insurance online and receive your policy in your inbox is very attractive.

There are some drawbacks and no exam life insurance isn't for everyone. No exam life insurance usually is limited to a certain death benefit. Most companies I have seen that offer no exam insurance have a maximum of $150,000 in coverage. It's necessary for a life insurance company to set a maximum to cover potential losses. The chance of an insurance company receiving a claim for no exam life insurance is much greater than standard Term or Whole life insurance policies because they make those individuals take medical exams and they only insure the healthy ones or they have such a high premium it's still profitable for the life insurance company.

Another drawback is the policy premium. Since the risk is greater for the life insurance company the premiums for no exame life insurance tend to be higher. To some, the higher premium and lower death benefit are good deals compared to going through a full medical exam.

Whole Life Insurance is Still a Preferred Choice

For a long time in America, whole life insurance was what most people bought. Lately, insurance companies have been offering other insurance at lower rates, but in most cases, whole life insurance is still the most beneficial of all plans.


Good For Life Policy

While term life insurance is for a specified period, whole life insurance is designed for life time coverage. This makes it ideal for someone with a steady income who wants to plan for the future.

Whole Life Insurance Premiums and Death Benefits

Whole life insurance rates have the steady quality that drives long-term policy holders to this option. While term life insurance premiums generally go up each time the holder renews the policy, whole life insurance rates usually stay the same until time of death or cancellation of the policy. Some policies do have increasing rates, but the increases are defined in the contract when the policy is purchased. So there?s no reevaluation and no surprises.

The benefits paid at the time of death stay the same with whole life insurance, so the holders can rest assured that their families are taken care of.

Cash Value Turns Whole Life Insurance Into an Investment

A term policy begins and ends (with the policy holder loosing all the money he or she paid into it). A whole life insurance policy builds cash value. How? A portion of the premium is put towards investment in the company, so the policy holder also becomes a share holder. Over time, this builds into an amount of money that can be used. That amount is called the ?cash value?.

The policy holder can cancel the whole life insurance policy and take the cash or re-invest it in a new policy to better suit his or her needs. Or the holder can take the cash value, and stop payments, but still retain a portion of the death benefits (this is called "Paid Up Insurance").

Loan Values

As the cash value of a whole life insurance policy grows, policy holders can borrow money using the cash value as collateral. This allows whole life insurance policy holders to keep the insurance policy, but still use the money. If the debt is unpaid when the policy holder passes away, the benefits paid might be smaller.

Flexible Payment Methods for Whole Life Insurance

Single Premium: This whole life insurance quote is usually the most beneficial. It involves one single payment, and produces an instant cash value. The death benefits are defined and never change. It’s ideal for anyone who has a portion of money they want to put away for their family.

Limited Payments: This is when the premiums are only paid for a specified number of years. The amount for the premiums is specified in the whole life insurance quote and never changes. The cash value of the whole life insurance policy rises steadily.

Modified Premiums: The premium amounts increase over time, and then level after a specified number of years. All of the specifics are clearly defined in the whole life insurance quotes. The benefits amount stays the same, so it allows someone to purchase a larger policy than they can afford at that time.

Continuous Premiums: Continuous premiums never change and are due for the life of the policy holder. The cash value rises steadily. This is the most popular whole life insurance policy.

Other Whole Life Insurance Options

Whole life insurance companies often offer other options like ‘term riders’, where holders can add temporary policies for short terms. Whole life insurance policies also sometimes offer child and spousal riders, so holders can add someone to the same policy.

Choosing the right insurance policy isn’t always the simplest decision. Ask for the advice of an insurance agent who has the benefit of experience and can help you find decide if whole life insurance is right for you.

Variable Life Insurance

When You're in It for the Long Term

Young, and ready to take on the world. This is who variable life insurance is made for. Variable Life Insurance is the greater way to glory, it's a security and an investment. It's much like whole life insurance, but different in that variable life insurance gives you more control over the cash value and death benefits amount.

How Does Variable Life Insurance Work?

With variable life insurance, the premium may go up or down, depending on the status of the market. Part of this payment goes to pay for life insurance. Another part (usually around 4%, but it depends on the policy) goes to build cash value in your "investment portfolio".

As the variable life insurance policy owner, you decide how to invest this money. You can invest in stocks, bonds, etc. As the market changes, so will your cash value and the death benefits. You'll decide how much of your investment is applied to the policy and how much is reinvested. You have more control over this policy than any other, which means you're more at risk. Then again, you have more potential to receive higher benefits when the market is up.

Each company issuing a variable life policy will issue a prospectus, which will define the policy. You should read it carefully before signing the policy. Both the Securities and Exchange Commission and The Commissioner of Insurance regulate these policies, and the agent must have a NASD in order to sell variable life insurance.

What if the Investment on a Variable Life Insurance Policy Goes Bad?

In extreme cases, when the investment choices for a variable life insurance policy loose their value, the policy can lapse, and it will no longer be considered a valid policy. Most companies offer a guaranteed minimum death benefit to keep this from happening. With these policies, the insured must pay a minimum premium each month.

What else does Variable Life Insurance Offer?

Since variable life insurance isn't a strict investment, all the monetary growth within the policy is tax deferrable. This also makes it an easy way to avoid estate taxes. People often purchase variable life insurance policies for their heirs, who can then either withdraw the cash value or borrow against it.

Withdrawing has the same effect it would with a whole life policy. The more cash value withdrawn, the more the death benefits would decrease.

Variable life insurance also gives you the opportunity to make changes in your investment choices without incurring taxes or transaction fees. Most companies limit the number of transactions to about 12 per year.

Most companies will offer a "survivorship" policy. In this case, two people are covered under the variable life insurance policy, and benefits will only be paid when both of them die. This kind of policy helps many people when they could not obtain life insurance by themselves due to health reasons.

Variable life insurance isn't for everyone. Talk to an agent to find out if it's right for you. The opportunity can be huge, but so is the risk, so review all your insurance options before making a decision.

Talk to your Insurance Agent to ensure Variable Life Insurance is right for you!

Return of Premium Life Insurance

The Alternative to Collecting Death Benefits

We pay for health insurance in high hopes that we'll never need it. Insurance, by its definition, is something we hope not to collect on. And so after paying years and years of life insurance premiums, and being "lucky" for all those years, it's easy to feel like it was all just a big waste of money.

Return of Premium Life Insurance, eliminates this problem because you can collect money without dying. After paying 20 years of life insurance premiums, a person can receive the money they've invested back. Not just a portion of it (as with whole life insurance) but return of premium life insurance offers everything back - 100% of the premiums you've paid.

How Much does Return of Premium Life Insurance Cost?

The premiums for this kind of policy vary from state to state. They generally run between term life policies and whole life policies. Return of Premium Life Insurance has benefits from both of these. It has the affordability of term life and the cash building value of whole life. You can buy it for periods of anywhere from 3 – 30 years.

Most companies can give you an estimate within 24 hours. The cost for return of premium life insurance is based on age, physical conditions, and habits (tobacco use) of the applicant…much like any other kind of life insurance.

Who Needs Return of Premium Life Insurance?

If you want to protect your family, but don't want to throw away the cash necessary to insure your life, return of premium life insurance is perfect. Not only do you get your money back at the end of the policy's period, but you won't have to pay income taxes on that money.

Return of premium life insurance is ideal for someone young who anticipates a lot of change before retirement. Whether you're just starting a family or still single, it allows for changes in the future.

What Happens if I Want to Cancel My Return of Premium Life Insurance Early?

Even if you don't keep your return of premium life insurance for the full term, you can still get a portion of your premiums returned to you. The longer you keep it, the higher percentage you'll get back. Canceling early will give you a small percentage back, and not canceling at all will give you 100% back.

On the other hand, you might want to keep the insurance after the end of the policy's period. Most companies will offer a continuance term after the original one ends. And since you'll be receiving a large sum of cash, it might be a good idea to invest it directly into a whole life insurance policy. The whole life insurance policy will also have a cash value, but not quite the same kind as a return of premium life insurance policy. You'll be able to borrow money against this policy, without loosing the coverage.

Return of premium life insurance is the easiest way to insure yourself without losing money. It's one of the few ways to collect the benefits, without actually using it.

Talk to your Insurance Agent to ensure Return of Premium is right for you!

Term Life Insurance

The Affordable Plan for Life and Family

Term life insurance is the most affordable option for anyone who needs to provide a future course in the event of their untimely demise. It's called "term life insurance" because it lasts for a defined term at the time of the purchase. As long as the premiums are paid each month, the beneficiaries are paid the full death benefit if the policy holder dies during that period.

Term life insurance costs less than permanent life insurance policies like whole life and variable life. The reason is because the policy accrues no cash value (except in the case of Return of Premium Term Life Insurance, where you can get a full refund for all the premiums you've paid at the end of the policy period). Another reason is because the policy is guaranteed to end within a certain number of years. The insurance company hopes this will be before the policy holder dies.

What Will Term Life Insurance Pay

Mortgages, education, cost of living, or burial costs. Term life insurance is typically set up to pay for all the things that the regular "bread winner" of the household would pay. You can also use it to pay the taxes involved in a estate inheritance.

You can purchase term life insurance policies for terms of one to thirty years. The most popular option is for fifteen years. At the end of the term, the policy ends. Some policies come with a guaranteed renewal rate, so you can purchase a new policy when the old one ends. The rates will obviously be higher because of the age increase.

Will I Need a Medical Exam to Qualify for Term Life Insurance

In most cases, companies require policy holders to undergo a brief medical exam before qualifying for term life insurance. Insurance companies try to make it as simple as possible. Some companies will even send a qualified nurse to your home for the exam.

It might be possible to bypass the exam and receive immediate coverage depending on your age. You can expect to pay more for this kind of term life insurance, and if you have serious health problems, it might be unavailable. Remember that insurance is something you buy ahead of time. You couldn't make an accident claim on an auto insurance policy if the accident happened before you purchased the policy. In the same way, if you have serious health risks, term life insurance might be much more expensive or unavailable.

What Else Should I Know About Term Life Insurance

Some policies provide you with accelerated benefits options. They'll pay you benefits before death if you have a terminal illness. This would cost more, but in some cases, the added protection is worth the money.

Sometimes you can lower your premiums by presenting your health profile before purchasing a term life insurance policy. Show the company that you have less risk of dying than an average person.

Term life insurance isn't for everyone. But if you can't afford an investment insurance, but still want to protect your family if you die at an early age, term life insurance might be the answer.

Talk to your Insurance Agent to ensure Term Life Insurance is right for you!

Universal Life Insurance

For the Investor Who Likes To Prepare for the Future

Universal Life Insurance is a lot like whole life insurance, but different in that the cash value of the policy earns interest. This way, universal life insurance becomes an investment, and not just an insurance policy.

With universal life insurance, your premiums are divided. Part of your payment covers the cost of insurance, and the rest becomes part of the cash value of the policy. The cash value in universal life insurance policies earns interest. Some policies offer a guaranteed minimum interest payment.

Universal Life Insurance is Ideal for Your Family

If you want protection for your entire family but want to leave your options open, then universal life insurance is the perfect choice. Universal life offers guaranteed death benefits (as long as the cost of insurance doesn't exceed the cash value amount) along with a solid investment that you can withdraw or borrow against.

Most universal life insurance policies come with optional term riders, so you can temporarily increase your benefits amount without purchasing a new policy. You can also usually add people to the policy, like a spouse or children. This versatility makes universal life insurance great for growing families.

Universal Life Insurance allows you to Invest Tax-Free
You can defer capital gain taxes on your universal life insurance policy. These gains can be kept in the cash value of the policy until the time of death, and will only be subject to estate taxes. To use the cash value amount before death, you can borrow against it without paying taxes and without ending the policy.

Universal life insurance policies often allow you to choose how much of your premium to put into the tax-sheltered amount. Investments can be safe and guaranteed, or you can put them into something more like a mutual fund.

Other Options with Universal Life Insurance
With universal life, there are three kinds of premiums.

1. Single Premium You pay one amount for the entire policy. The policy remains in effect as long as the cost of insurance does not entirely deplete the cash value or investment.

2. Fixed Premium You make monthly payments for the premium for an agreed upon time. Usually, this universal life insurance policy is in effect long after you stop paying the premiums.

3. Flexible Premium You decide when to make payments and how much. If you go for a period without making a premium, the cost of insurance is deducted from the cash value of the policy. This type of universal life insurance gives you the chance to make one large payment when you first purchase the policy, and make sporadic payments according to your financial situation.

Most policies offer a "Waiver of Premium" option. This way, if you’re disabled, you can continue coverage without continuing your premium payments.

Planning for the future is part of starting a family. It means more than just setting a few dollars aside for a rainy day. Universal life insurance gives you the ability to save, invest, and protect your family when you're gone. It helps you now, and it will help them in the future

Talk to your Insurance Agent to ensure Universal Life Insurance is right for you!

Mortgage Life Insurance

Insuring Your Life's Biggest Investment

If you're like most people, your home is the largest investment you'll ever make. And if other people depend on this investment (like your family) then Mortgage Life Insurance could be a perfect safety net for their security. Mortgage life insurance is a term policy (it doesn't build cash value) designed to cover your mortgage in the event of your untimely death.

Your mortgage isn't only your largest investment, it's also the longest financial commitment most people will ever make. A lot can happen during the life of a loan. Health conditions, financial situation, and the value of your home will all change by the time a mortgage loan is fulfilled. A mortgage life insurance policy is long term protection, the kind a family needs.

Different Kinds of Mortgage Life Insurance

There are several ways to open a mortgage life insurance policy. Sometimes, banks and real estate companies will sell a mortgage life insurance plan. The security it provides is beneficial to them, so they often offer it as an extra when you close your loan. In most cases, your benefits decrease as the principal decreases, you're only covered for what you owe on the mortgage. Yet the premiums stay the same throughout the life of the policy.

You can also open a mortgage life insurance policy directly with an insurance company. Working with an insurance company, in most cases, offers more advantages than the policies sold by banks and real estate companies. One benefit, is that the benefit amount often stays the same instead of decreasing (depending on the policy).

Other Differences in Mortgage Life Insurance Policies through Insurance Companies

Beneficiary In most cases, you have the option to choose your beneficiary. Mortgage life insurance from other sources almost always name the mortgage owner as the beneficiary. Also, the beneficiary can choose how to use the money.

Conversion Options Companies can usually offer mortgage life insurance policies with a pre-defined option to change coverage and payment in the future, one without regard to age and health conditions.

Guaranteed Premiums Sometimes, a mortgage life insurance policy doesn't guarantee the premiums. Using an insurance company gives you more options to set a defined premium or a variable one.

Freedom of Lenders Since other options make your lender the beneficiary of your mortgage life insurance policy, you loose the policy if you decide to refinance with a new lender. This can be a problem if your health conditions have changed since your policy started, obtaining a new policy might be impossible. But many insurance companies offer you the option of keeping your policy even if you switch lenders.

Mortgage life insurance is the right move for most because it offers a discounted rate for a term life policy. It's secure for you and secure for your family. Among the millions of home owners in America, few can guarantee their stability for the next thirty years. Mortgage life insurance changes that, so anyone can feel secure that their families won't lose their home when the worst happens.

Talk to your Insurance Agent to ensure Mortgage Life Insurance is right for you!

Key Man Life Insurance

For the Sake of the Company

If your business relies on one or two key players, key man life insurance might be an important part of your future. Whether that key player is you, one of your star sales persons, or an office manager, you owe it to your shareholders to insure the "key man". This way the company won't end in bankruptcy if the unthinkable happens.

What Is Key Man Life Insurance

Key Man Life Insurance is a life insurance policy written to help a company when its survival rests on one or two people. The company pays the premiums and is the beneficiary if the person dies.

Small companies often purchase key man life insurance when the owner's relationships with clients and vendors are what keep the company working. But it's not always the owner who is insured. Sometimes an owner retires and leaves the company in the able hands of someone else…and that person becomes the "key man".

Key man life insurance policies sometimes cover a main salesperson. In small companies, clients often get used to dealing with one person and refuse to do business with anyone else. And sometimes a company relies on an employee's personal relationships for clients or discounts from vendors. In case of a sudden death, key life insurance would give the company a cushion to fall back on.

What Happens to the Benefits in a Key Man Life Insurance Policy

The money is generally either used to keep the company afloat while finding a replacement, or to make it easier to liquidate the company, pay off debts, and split the proceeds between shareholders (often the owner's family).

Owners insure themselves because several of their employees are dependent on the company, even though the company wouldn't exist without the owner. The key man life insurance policy would guarantee the employees a salary while they searched for another job.

Do Companies Really Need Key Man Life Insurance

In a small company, there's often a "one for all, all for one" mentality. For some, the lack of office politics makes it a more enjoyable atmosphere, and perhaps a more reliable one. People feel like they're less likely to undergo the mass layoffs commonly associated with large corporations.

Small companies are also more likely to hire people with certain situations that intrude on their work lives. A single mother might have to take off work if a child is sick or if school is canceled due to bad weather. Someone with chronic health problems may have to call in sick often. Small businesses often offer the flexibility to deal with such problems when large corporations do not.

For the reasons above, small business workers are often more dedicated to their employers. It's not uncommon to find cradle to grave employees, who never consider switching jobs, so they're completely dependent on the company. And if the company is dependent on one person, not having key man life insurance on that person is an injustice to the company on a whole.

Remember, you're not the only one who relies on your business. Key man life insurance is the protection you need for your company, your employees, and your family.

Talk to your Insurance Agent to ensure Key Man Life Insurance is right for you!

Guaranteed Issue Life Insurance

When Your Medical History Doesn't Look So Good

Guaranteed issue life insurance is a policy that's guaranteed to anyone... without regard to health conditions. You might think this sounds awfully risky for the insurance companies. They get around it in two ways.

Guaranteed Issue Life Insurance

First of all, guaranteed issue life insurance policies have "graded benefits". This means that if the insured person dies within a specified amount of time, the beneficiaries only receive a portion (or none, in the case of contestable periods) of the death benefits. Most guaranteed issue life insurance policies only pay full benefits after the first two years of the policy. So if John Doe purchases a guaranteed life insurance policy in 2006, and dies of cancer in 2007, the beneficiaries will only get a portion (or none) of the benefit.

Another way companies make money off guaranteed issue life insurance is by charging more for the premiums. They also set age limits on the policies (typically, they won't insure someone over seventy years old.)

What Kind of Insurance is Guaranteed Issue Life Insurance

It's a whole life insurance policy, but the premiums are higher because no-one can be turned down. This means that guaranteed life insurance policies accrue a cash value over time (usually after the first couple of years). A portion of the premiums pay the cost of insurance, while the rest builds the cash value.

And since it's a permanent life insurance, the premiums do not change, nor does the death benefit. As long as the premiums are paid, guaranteed issue life insurance is good for as long as you live.

Are There Exceptions to the Graded Benefits with Guaranteed Issue Life Insurance

Most policies will still pay the full amount of death benefits if the insured dies in an accident. But this is generally the only reason. In other words, if you find out you've only got three months to live, guaranteed issue life insurance won't help you.

What Else Should I Know About Guaranteed Issue Life Insurance

Since the policies are open to anyone, guaranteed issue life insurance doesn't require a medical exam or even a medical history. The questions asked are very general, like name, age, address, etc.

Most guaranteed issue life insurance policies have a limited death benefit amount (you'll have a hard time finding a policy for more than $50,000). Guaranteed issue life insurance policies are most often sought to cover burial expenses, debts left in the estate, and medical bills.

You can use the cash value in a guaranteed issue life insurance policy to cover emergency expenses while you're still alive. You can withdraw the money, and end the policy or accept a lower death benefit. Or you can borrow against the cash value and keep your benefits the same once you've paid the loan.

Guaranteed issue life insurance isn't for everyone. But if you have trouble obtaining other insurance policies because of a health condition, and expect to live for at least two years, guaranteed issue life insurance might be your only option.

Talk to your Insurance Agent to ensure Guaranteed Issue Life Insurance is right for you!

Group Life Insurance

Does your company offer group life insurance? If not, you might be ignoring one of the most cost effective ways to make your benefits package more attractive to potential and current employees.

Is Group Life Insurance Important

Today's employees expect more than a salary from their employees. In a recent survey by Wall Street Journal, participants were asked if they would rather: have no pay increase but retain current benefits, or get a raise and see benefits decrease. Fifty six percent of respondents said they would rather keep their benefits. This illustrates how important it is for employers to offer a competitive benefits package, aside from a decent salary.

Among the many benefits an employee can offer, group life insurance serves as an excellent way to attract new employees. It also increases the morale of current employees and creates loyalty within the company.

Who Will Group Life Insurance Cover

Group life insurance policies can apply to any existing or new employees and associates. And most policies can offer extra benefits that employees can opt for at a discounted rate if they want to pay for the added expense. This makes it easy for employers to offer more than one plan, but still only pay a minimum for premiums.

How Does Group Life Insurance Costs Compare to Individual Life Insurance

Group life insurance is often cheaper than individual life insurance for several reasons. First of all, it's a form of collective bargaining - it's buying in bulk. So you're getting bulk rates, and everything is cheaper in bulk. It involves less paper work for the agents and less time selling to each individual. These are the incentives for insurance companies to give lower rates on group life policies.

Employers especially benefit from group life insurance in a unique way. There's no mandatory medical exams in order to be qualified. For some, this is the difference between being able to obtain insurance and not being able to. Chronic diseases make getting life insurance difficult. The fact that they can obtain life insurance through your company could be enough of a reason to persuade hard working employees to stay in their positions.

What other Benefits does Group Life Insurance Offer

* Since group life insurance is part of the wages you pay, it's tax deductible. If you're going to use a tax write-off, it may as well do something for you. Adding benefits to employee packages increases morale and, consequently, work productivity.

* Many plans offer a Waive of Premium benefit. If an employee is totally disabled, he or she can continue group life insurance coverage without paying the premiums. This (again) is a tangible sign of appreciation for your employees.

* You can customize group life insurance policies to fit your company needs. Many plans offer customization to fit specific employees (per salary, years with the company, etc.)

Your company's benefits package is the main attraction to the work force. Adding to it will attract a better working class, and help you retain your hardest workers. Take steps now to add group life insurance to your benefits package.

Talk to your Insurance Agent to ensure Group Life Insurance is right for you!

Child Life Insurance

The death of a child isn't something parents want to think about. But life insurance isn't necessarily all about death. Child life insurance is about the future and preparation. Taking steps today can help create a better tomorrow. And as parents or grandparents, our chief concern is making the future better for our children.

How Does Child Life Insurance Help a Child

Right now, when a child is young, strong, and healthy, life insurance is obtainable at a minimum cost. But if a child develops a problem like a chronic disease, life insurance can be almost impossible to obtain. So signing up for a low premium term life insurance policy now, with a guaranteed periodic purchase option, will make it possible for them to have life insurance as adults.

Another possibility for them is to purchase a whole life insurance policy, which will last for the rest of their lives. Their age and health status won’t make any difference…nor will it matter if they serve in the military or have dangerous occupation hazards.

Such child life insurance is perfect for planning for the future because of the cash value the plan would accumulate. As an adult, they could borrow against this value or stop the policy and withdraw the money (to pay for college or any number of things).

Who Can Purchase a Child Life Insurance Policy

Parents, grandparents, and legal guardians can all purchase child life insurance policies. New parents often have heavy financial burdens during the first few years of a child's life, and buying insurance is difficult. So grandparents (who might be more financially stable) purchase insurance for their grandchildren.

When Does Coverage Start for a Child Life Insurance Policy

When you start a life insurance policy for a child, the coverage begins immediately. There are no necessary medical exams to go through,just a few health related questions on the application is generally enough to get a child qualified.

The rates for child life insurance vary. Whole life rates stay the same. Term life rates depend on the policy, how old the child is, and several other factors. Policy renewal agreements can vary also, so make sure it’s spelled out before signing up for term policies. Some times you can purchase a term policy and then switch it to whole life at the end of the policy’s period.

Child life insurance policies can last as long as you wish to sign for. Again, whole life policies for children don't ever end, while term policies are defined before you purchase it.

Who Receives the Benefits

In child life insurance policies, the parents or legal guardians are the beneficiaries. But the one who benefits the most is the child. He or she benefits from the security of a life insurance policy that will continue even if he or she is diagnosed with a life threatening disease. Secure your children's future now with child life insurance. It's good for them, it's good for you

Talk to your Insurance Agent to ensure Child Life Insurance is right for you!

Retirement Planning and Estate planning with Insurance

Retirement Planning and Estate planning with Insurance:
Insurance coverage for Retirees and Seniors

Retirement sounds exciting and liberating but be sure to plan accordingly to limit your headaches. Retirement planning is a big deal and without help it can make your retirement a bad experience. Plan your insurance needs before you retire! There are certain insurance policies you need to maintain and certain policies you could consider changing once you retire.

Life Insurance
Your life insurance needs may change once you retire. You've worked most of your life to accumulate enough money to last the rest of your life. When accumulating or planning your retirement did you assume costs associated with taxes on your estate or costs associated with your funeral would easily be covered with your retirement savings? What about other expenses you may have? If you've assumed these expenses within your retirement savings then you may not necessarily need a life insurance policy. If you have accumulated enough retirement savings to pay for all your final expenses plus whatever else you wish to do with it then chances are you are covered. It's a good idea to consult with your retirement specialist to ensure your covered and depending on your assets and liabilities perhaps a short term life policy will cover you. Most of the time retirees have paid off their homes. If this isn't the case and there are only a few years on the mortgage you may want to consider a 5 or 10 year term life policy to cover any expenses the asset may not. Life insurance for retirees is case-by-case and truly depends on the size of your assets.

Homeowners Insurance
As I mentioned above there are often instances where retirees have paid for their homes and no longer pay a mortgage. You still need to cover your home in case of a loss. Likely your retirement savings aren't enough to pay for your retirement and completely replace your home so it's imperative you maintain your home insurance policy once your retired.

Auto Insurance
Like your homeowners insurance you should continue to insure your automobile. The last thing you should consider is paying for a new car or liability claims due to a car wreck. If your driving significantly less because your retired and no longer drive to work then you should talk to your Insurance company about discounts available to those that drive less than a certain amount of miles per year.

Health Insurance
You need to apply for health insurance as soon as possible. The longer you wait the older you get and the harder and more expensive health insurance costs. If you're retiring before 65 you will definitely need coverage. Once you reach age 65 you will be eligible for Medicare. So if you retire early at age 50 assume you will need enough retirement savings to cover at least 15 years of health insurance premiums. There are ways to adjust your premiums but that would entail higher deductibles or finding a group to join. Individual health insurance policies are expensive and especially for those over age 50 so do your diligence and start receiving quotes now.

Long Term Care Insurance
You like many others may consider purchasing Long Term Car Insurance when you retire. Long Term Car Insurance is an insurance policy that covers things generally not covered by health insurance or Medicare. Long Term Care covers things such as a live-in Nurse who would be hired to help do regular daily activities such as bathing, dressing and eating. Long Term Care does not cover health issues directly such as a heart problem or doctors visits. It is a great opportunity to purchase a policy that will allow you the liberties of staying and living at home and knowing you won't burden your loved ones with your daily activities. So Long Term Care Insurance is a policy that one should consider when planning retirement.

Organize your Insurance Policies

Keep your Insurance Policies organized in case of an emergency

Be sure to organize your insurance information yearly. Organizing it yearly will keep you fresh on coverages and most important it reminds you what you have and where you have it. The last thing you want to do after a car accident, a health issue or a death in the family is to search for any information regarding insurance coverage.

Ideas for keeping Insurance information organized.

Write down or type out the contact information for each type of insurance you own. So for your Auto Insurance write down the contact person's name and phone number. Do the same for your Health Insurance, Life Insurance and any other Insurance policies you own. Give a copy of the contact information to several friends or family members in case of an emergency. Build a folder for each type of Insurance you own and save policy information in the folder. Consider keeping the folders in a fireproof safe or in a safe deposit box at your local bank.

Consider consolidating all your insurance needs with one insurance company. One point of contact can make getting the information you need significantly less stressful. In addition to having one point of contact most Insurance companies provide rate discounts for those that carry multiple lines of insurance with the company.

What factors affect Health and Life Insurance rates?

Rates or policy premiums are affected by two major influences. The main influence is one's personal health or family health history. The second major influence that affects one's life or health insurance policy premium is age.

Not knowing exactly how much weight age holds in determining life and health insurance policy premiums we do know that two individuals (one 18 years old and the other 60 years old) with the same health and health history show that the 60 year old will always have higher health and life insurance premiums. The amount of weight age holds is likely calculated into a quoting algorithm put in place by actuaries.

Personal health and family health history is a major contributor when calculating health and life insurance premiums. More common for life insurance due to fraudulent activities most life insurance companies will request blood and urine samples to ensure no pre-existing conditions exist. A licensed professional will come to your home to draw blood and collect a urine sample as well as ask dozens of health related questions. Some policy questions involve high blood pressure, heart disease, cancer, diabetes, cardiovascular disease and other serious health risks. Now, there is a Guaranteed Issue Life Insurance policy where the life insurance company has taken an average assumption regarding risk and they will insure any healthy person without blood or urine samples. These Guaranteed Issue Life Insurance policies are capped to a certain benefit meaning the most life insurance you could get is $150,000 or so. If you have perfect health you will find that a standard term policy will have more affordable premiums than a Guaranteed Issue simply because you are paying for some risk with the Guaranteed Issue. The Guaranteed Issue is a good option for those that don't have time or don't deal with needles very well. Please note that with a Guaranteed Issue Policy you still have to answer health related questions and not telling the truth usually ends up with a voided policy or a policy that will not pay death benefits.

Unfortunately, one's health and family history isn't always controllable. Some diseases are hereditary and perfect health which equals affordable health and life insurance policies is not possible. Be in the best health your body or family history allows for and buy health insurance that provides good benefits and is still affordable.

Average Insurance Costs - average cost of auto, home, health & life insurance

As we all know, costs of insurance premiums differ depending on dozens of different factors. I will remind you that this is not concrete data, the figures below are what estimate to be average costs of auto, health, life and homeowners insurance premiums. How do we get our estimates? We take average cars, average home costs, average family size and ages to determine what we feel are sound averages.

So insurance costs differ and some of the reasons insurance premiums differ are related to ones location, ones age and even the frequency of payment can fluctuate an insurance premium. Yes, in some instances if you agree to pay for the whole year in advance you can get a discount on your insurance premium. Those that pay monthly will likely miss out on the discounts provided by paying less frequently. Location seems to play a big role in how actuaries and underwriters determine insurance premiums. This makes sense in certain instances such as a home insured in a coastal state where damage from catastrophes such as hurricanes and earthquakes are more common than inland states. In fact there are many reasons why ones homeowners insurance premium may differ. Health and Life insurance premiums differ depending mostly on one's age and current health state while auto insurance rates are determined mostly on vehicle type, drivers age and driving history.

So now we have the basic reasons why insurance costs differ lets look at some averages.

Average cost of Homeowners Insurance - $1000 per year
Average cost of Auto Insurance - $800 per year
Average cost of Health Insurance - $1800 per year for adult individually and $4800 per year for a family.
Average cost of Life Insurance - $500 per year

One thing we didn't mention above was the different types of insurance products one can purchase that effect an insurance premium. For example, Term Life Insurance is less expensive than Whole Life Insurance policies. An HMO or PPO is less expensive than an Indemnity Health Insurance policy.

Of course, your cost for insurance policies will not be the exact averages we've listed above so be sure to receive your own free insurance quotes.

Determining the Amount and Type of Life Insurance to Purchase

In this day and age, you are likely to see numerous advertisements, no matter where you go, offering low cost life insurance polices. Some of these advertisements may be perfectly legit, and others may be less useful. The following paragraphs will provide you with information to help you to determine which type, as well as how much life insurance coverage will suit you best.

When you are trying go determine how much life insurance you need to purchase, you should take many factors into consideration. These factors can include:

• your income level prior to death
• amount of income needed for surviving spouse
• burial/funeral expenses
• debt level prior to death

While these factors alone do not determine the amount of life insurance you may need to purchase, this data can help you to come to a reasonable figure. Other factors that can play a role in determining the amount of life insurance you may need to purchase are any income you may receive from sources other than employment, as well as any income producing assets you may own.

When you have specific reasons for purchasing life insurance, such as to be sure all of your debts are covered upon your death or to pay off a mortgage, determining the amount of coverage you need may not be as difficult. Calculating the amount of life insurance coverage you will need may only be a matter of adding up these figures.

Once you are able to determine the amount of life insurance you want to purchase, you need to decide on the best type to suit your individual needs. There are two basic types of life insurance known as term life insurance and permanent life insurance. While term life insurance policies only cover the insured for a set period of time, permanent insurance policies cover the insured for their entire life ... no matter how long they live. While a permanent life insurance policy may be more expensive, term life insurance later and life can be even more expensive. It is important to consider carefully, the duration you wish to be covered under your life insurance policy, before making any final decisions about which type of policy to choose.

If you feel that making these decisions about your life insurance on your own is just too difficult, there are professionals, as well as professional services available to assist you every step of the way in your decision making process. You can locate these service providers by searching the internet, or by calling and requesting the information from some of your local life insurance providers.

Having a life insurance policy is a wonderful way to plan ahead, and to help your surviving family members meet your financial obligations after your death. Without life insurance, the responsibility of paying your debts will likely fall upon the ones that you love most, who are already grieving. The right life insurance policy will help protect them from this, as well as provide them with the same financial security they were accustomed to while you were living