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What is Term Life Insurance

admin — Mon, 07 Dec 2009 08:53:21 +0000

Term Life Insurance is a type of life insurance where coverage is provided for a fixed term e.g. 10 years, and a fixed premium. Because the coverage term is fixed, the risk to the insurance company is limited and therefore the premiums can be lower than other types of life insurance.

Contrast this with Whole Life Insurance or Universal Life Insurance where the insurance coverage is for life, as long as the premium is paid. Because the insurer will definitely need to payout, as the insured will definitely die, the insurance premiums will be higher than term life insurance. Term Life Insurance is therefore a form of “temporary” insurance whereas Whole Life and Universal Life are forms of “permanent” life insurance. Strictly speaking, permanent life insurance should be called life assurance because it’s for an event that will definitely occur.

Term Life Insurance can suit people who have finite insurance requirements. For example, a young family might need to protect themselves against the death of the bread winner to cover the cost of the mortgage and kids’ education that might span say 20 years. And because temporary life insurance is less expensive than permanent life insurance, it can be ideal for this purpose.

For an extra premium, some Term Life Insurance policies also offer a guaranteed renewal. This provides some of the benefits of both temporary and permanent life insurance.

Shopping For Annuity Quotes Online :: Best Life Insurance

Tue, 03 Nov 2009 03:57:30 +0000

As everyone knows, the Internet allows easy access to information and the ability for someone to remain anonymous while they search for the exact piece of information that they need.

The search for annuity information and quotes online is no different. The Internet can be very helpful to an investor who is looking to obtain annuity quotes and tips.

However, as with all Internet searching, there are a few things that every potential annuity purchaser should consider before getting any annuity quote online:

1- Is the company/website legitimate?

A big advantage to the Internet is also a big problem. Anyone can put any information they want online, including people who are looking to commit fraud. Make sure that the life insurance company or annuity quote website is legitimate before the information obtained from the site is used in any purchase decision. To verify the insurance company, contact the state department of insurance to check the company’s standing with the agency.

2- Is the company that is offering the annuity financially stable?

Most insurance companies are financially stable, but it does not hurt to check the financial ratings of a company that may be of interest. Independent rating agencies, such as Standard & Poors, A.M. Best, and Fitch periodically rate all major insurance companies.

3- Are the contracts that are being compared the same?

There are only three basic types of annuities: fixed, variable, and indexed. However, many companies call their annuity products by slightly different names. Likewise, the options and fees may be called something slightly different when looking at quotes from two different companies. Take the time to ready the fine print and make sure that the comparison that is being made is a good one.

4- Are there further questions about the annuity products or quotes that are not answered online?

Online annuity quotes offer anonymity which allows potential customers the freedom to browse various insurance companies’ websites and products without the pressure of a sales person. However, the right comparison information to make the final purchase decision may not be available or may be confusing. If this is the case, consult a trustworthy financial planner to help lead the way through the terminology.

When comparison shopping for annuities online, it is important to remember that different annuities are better suited to different types of investors. The Internet can be used as an education tool to help decide what type of annuity is best for you.

For example, an equity index annuity is well-suited for investors who have an investment horizon of five or more years, making it a good choice for retirement planning. Another example is that immediate annuities are for investors that need to start receiving income soon after the premium is paid to the insurance company, i.e., retirees. And, lifetime annuities may be a good choice for a purchaser who has reached retirement age and is looking for a way to insurance against outliving his retirement savings.

Beyond the three basic annuity types, there are a variety of options to choose from with annuities. As such, it is important for any investor to consider their own objectives and needs to make the online annuity experience quicker and easier.

BEST LIFE INSURANCE :: Click here now www.BestLifeInsuranceBrokers.com

Be Careful For Over-insuring Your Life Needs :: Best Life Insurance

Tue, 27 Oct 2009 09:00:10 +0000

One of the hardest parts when shopping for life insurance is establishing how much coverage to purchase. We’re talking about years into the future and many unknowns. In fact, there’s only a few “knowns” and we have to put our faith in these when considering the amount of life insurance coverage. Most people do not consider the possibility (much to their later chagrin) of over-insuring their life needs. Let’s investigate further to avoid life over-insurance.

I know…it’s strange for a life insurance broker to be warning you against buying too much insurance. Shouldn’t I be offering you sorts of plans, riders, and bells and whistles? Well, no I shouldn’t if I’m doing my job. The goal is not to insure against every possible scenario in the aim of covering 100% of risk in a person’s potential future. It’s just way too expensive. You’ll be insured for the future but unable to afford living life today! It’s always amazing to us how many people are either over-insured or poorly insured. If you have coverage in effect right now, there’s a good chance you fit this bill. That’s how prevalent it is. So what is over-insurance?

The first definition of over-insurance is quite simply life insurance that you can’t afford. A large percentage of life insurance policies lapse in the first two years. That’s basically money thrown away and it sets you up for much higher rates at a later date since life insurance rates are based on age at the time of enrollment. There’s a big difference between 35 and 40 years old. You have to keep in mind that every person and every family goes through financial periods of downturn or change during the long range. If your budget is $100 right now, it might be $50 during a rough patch. You can go ahead and max out the $100 but you don’t want any budget items that stand out for the ax during rough financial times. Insurance in general typically comes up during budget review and it’s tough not to consider cutting it since the benefit and protection is for the future (not the present). Taking this into account, you want to safely be able to afford the life insurance premium with a little buffer just in case. Every person has a different threshold for what feels manageable.

Another type of over-insurance is just expensive life insurance. This means you are paying more per 1000 dollars of coverage than you should be. There can be many reasons for this and this makes up a good part of the people we come across who are over-insured. More precisely, they are poorly insured. The most likely culprits are as follows. First, they may have whole life insurance which is quite expensive…usually 5 to 10 times more expensive than term life. We go into detail at our other articles such as comparing term life versus whole why it’s hard to make the numbers work. Another reason is that you may have an older policy. Even though you are older now (and the rate is higher comparing apples and apples) the average cost of life insurance has dropped significantly over the past decade. Run your instant term life insurance quote to see if this is the case. Finally, you may just have a bad life insurance rate. This can be the result of not being able to compare multiple carriers and plans or dealing with a captive agent…a life insurance agent that only shows one company.

Finally, over-insurance for life can just be having too much coverage. Is that possible? Sure. If you earn $50K per year you want 10 years of term, $2M might be too much. You can use our handy term life planner to give you a baseline amount of coverage considering such factors as current income and inflation. If you’re insuring double the amount given, then you may be over-insuring depending on other financial considerations and debts that you owe. We’re happy to walk through your situation to make sure you avoid the costly problem of over-insurance.

BEST LIFE INSURANCE :: Click here now www.BestLifeInsuranceBrokers.com

Everything You Want to Know About Life Insurance Quotes :: Best Life Insurance

Tue, 27 Oct 2009 17:39:28 +0000

It is not mandatory to get insurance, but the price of not having an insurance cover is very high. This is the reason why most of the people in today’s world are insured. In US, the life insurance policy provides financial coverage to the insurer’s family during the death of the policy holder. The policy holder also gets enough security against any income loss or such mishaps through these insurance policies. To purchase an insurance policy, one must know about the insurance quotes offered by various companies.

Some of the popular US insurance companies which offer great life insurance quotes to the public include American General/AIG, Allianz Life Insurance Company, ING-Security Life of Denver, ING-ReliaStar, Jackson National, Indianapolis Life/AmerUs, John Hancock, Jefferson Pilot, Life Investors, Liberty Life, Lincoln Benefit Life/Allstate, Lincoln National, Met Life, Mass Mutual, AVIVA Life, American National, Banner Life, AXA/Equitable, Columbus Life, Principal Life, Prudential, SBLI of Mass, Symetra, Transamerica, US Financial and West Coast Life. There are other popular US companies which offer various life insurance quotes.

It is not a tough job to get the best of the life insurance quotes. But, for this one needs to do an extensive research in the market and evaluate the rates offered by different insurance companies. The life insurance quotes might also vary from one individual to another, depending upon his age, family history or health problems. There are specialized life insurance policies for overweight, diabetics or for those who have a past history of heart disease or Cancer. Therefore, before settling down with the insurance broker or agent, one must do his own homework and get the details about the different policies and insurance quotes offered by different companies.

Points to Remember Before Settling Down With an Insurance Policy

There are certain points one should keep in mind before a person plans to purchase an insurance policy for himself and his family. If he abides by the following points, he might avoid falling in the pitfall and end up purchasing the best of the insurance quotes available in the market. The several points to remember are as follows:

1. A lowest term rate might sound interesting, but one must avoid purchasing them as he must also consider other benefits of other terms available.

2. One must not go for an inferior amount of coverage as he might need to cover for his college tuition, mortgage payments and other future expenses which he had not thought of during purchase of the insurance plan.

3. One must now assume that the life insurance quotes offered to him by the company is the best available. Every insurance company tries to convince their customer that he gets the best rates, which is actually not true. Therefore, an insurer must negotiate with the agent or broker and get a better rate for his policy.

4. As the insurance quotes and products are continuously changing, it is a better practice to review one’s policies periodically.

5. One must find out the actual value of his policy before canceling his insurance.

By knowing everything about the life insurance quotes one get a better insurance plan and can make better profit out of it.

BEST LIFE INSURANCE :: Click here now www.BestLifeInsuranceBrokers.com

Tax Advice: How to Get a Raise by Owning a Home :: Best Life Insurance

Sun, 25 Oct 2009 08:59:24 +0000

If you’re a new home owner, you’re probably thinking it certainly would be nice to get a raise in your paycheck. It would come in handy to pay for everything that comes as part and parcel (no pun intended) of home ownership. Read on: You can give yourself a raise.

Most people, when they take a new job, pay little attention to the withholding forms they complete for federal and state taxes. Now is a good time to take a look at the standard payroll deductions you opted for. Maybe it’s time to adjust them.

The amount deducted for federal and state taxes decreases as your number of exemptions increases. That means if you are in a family of four and you have declared zero exemptions, there is a higher deduction from your paycheck. This usually results in a better tax refund in the spring.

But ask yourself if that’s really beneficial. Yes, you get that nice refund in the spring. But what if you took that extra money in your paycheck right now? You could put it into your own savings account and earn interest on it. It makes more sense for you to get the interest than for Uncle Sam.

Raising your exemptions will lower your income tax refund, it’s true. But homeowners are eligible for a variety of tax credits, and they will offset the reduction in your tax refund.
In simpler terms, you will see more of your own money in your paycheck each week. And normally, you would get less of a refund. However, because of the tax credits you qualify for as a homeowner, you will not get a smaller refund-the tax credits will preserve your current expected refund.

If you’re timid, try it from now through the rest of the year by just adjusting your deductions by half. For example, if you have a family of four and you are declaring zero deductions, raise it to 2. When you see how this change is offset by your homeowner credits, you can change it again from 2 to 4.

You can also try first to change the federal deductions only, and then later change the state withholding. Be careful with this, however, because many state withholding tables are calculated pretty closely, and you don’t want to end up owing.

Take a look, too, at your other withholdings. What about health insurance? If you and your spouse work, be certain you are not double-covering yourselves and your children. Only one of you needs to pay through employer-acquired health insurance. Compare the employee’s share of health insurance premiums at each company before you change. Also, check to see if either of these employers offers a cash bonus to employees who opt out of health insurance.

What are you putting into your retirement fund? Certainly it’s important to save for later in your lives, but you want to put your money where it will earn the highest returns. With many employer 401(k) or 403(b) plans, it makes little sense to contribute more than the amount that they will match. Maybe you should adjust your contribution. Save your money in a place that earns you better interest or dividends.

Last but not least, look at the life insurance you’ve taken out through your employer. No matter what you are paying into it, think about the fact that it will vanish if you leave that company. Also, look at the fine print in your policy carefully. Some companies offer employees a life insurance amount equal to their yearly salary or maybe twice that. They offer the option to purchase additional life insurance. But many of these add-on policies only pay in the event of accidental death and not in the case of illness. You’re better off to quit paying for that type of insurance and just buy a policy on your own.

When you take action to adjust your own paycheck, be certain that you’re acting as an informed tax payer. That means you need to be knowledgeable about all the tax credits available to you as a homeowner.

BEST LIFE INSURANCE :: Click here now www.BestLifeInsuranceBrokers.com

There is a Major Difference Between Term and Whole Life Insurance – Find Out Before You Buy :: Best Life Insurance

Sun, 25 Oct 2009 07:14:09 +0000

Have you wondered what the difference is between term and whole life insurance?

If you’re planning on purchasing either you better know which one is right for you. I know I didn’t when I was first looking for life insurance. And the difference could cost us big bucks.

Let’s start off with Term Insurance.

1. Term Expires after a given amount of time. Could be 5, 10, or 30 years.

2. Term has adjustable premiums. Could be fixed or variable.

3. Term is used to protect against large debts like a house.

4. Term is much less expensive than whole life insurance.

Term can also be used to protect for a few years close to the end of your life. It will be expensive but whole life is almost impossible to get after 65.

Whole Life has some different traits.

1. It is much more expensive than term.

2. It builds a cash value

3. Normally bought in lower amounts than term to pay for after death expenses as well as inheritance.

Now they do both have one thing in common. They are vastly cheaper when purchased young. Unlike anything else insurance rates skyrocket after the age of 25. Then pretty much every year after that the premium will go up. The good thing is that if you act on it when you think you need it you can lock in that premium for life.

No matter which one you choose make sure you get multiple quotes before making a decision.

Warning: Most people ignore this step and waste thousands of dollars.

BEST LIFE INSURANCE :: Click here now www.BestLifeInsuranceBrokers.com

Overview on Life Settlement :: Best Life Insurance

Sat, 17 Oct 2009 09:00:26 +0000

Life settlement means that the senior citizen can sell the unwanted life insurance policy in return of a single cash payment. The senior citizen will receive a cash amount which would be greater than that he would have received on surrendering his life insurance policy to the insurance provider. He can use this lump sum amount for paying his dues or buying a house or a car, for a vacation etc.

In times of need, money can be received from the secondary market, instead of going to Life Insurance Company. After this you do not have to pay any premiums and there is no obligation to the life insurance policy. It becomes difficult for the policy holder to pay premiums or his heath condition changes, while he purchases the new insurance such as long term care coverage, retired key man, surrender policy, resolution of company or partnership, liquidity of assets due to bankruptcy.

Call the life settlement company and express him your interest. The life settlement company will be able to quickly analyze based on the self report information. That is according to your age and the health status. The type of the insurance policy selected and what is its value. When the Application form is completed: The policy holder should have completed the form and given details to the life settlement company regarding the type of insurance and medical information. It is important for the policy holder to give the life settlement company, personal information with signed authorizations. The medical records will also be evaluated. The life settlement company will collect all the information from the doctors and insurance company and provide this information to qualified buyers. The life settlement company will provide upto date information to the policy holder regarding his best proposal. The closing process will close when the documents are presented by the buyer and seller and all the formalities are fulfilled.

Senior life settlements can be eligible for citizens who are 65 or older. The face value of the insurance policy should at least be $250,000. All types of insurance policies are eligible like the variable life insurance, key-man life insurance, universal life insurance, term life insurance.

A viatical settlement means the sale of a life insurance policy. If a person has terminal illness he/she will give the insurance policy to the viatical settlement company for a lump sum cash payment. The viatical settlement company may sell the policy to the third party investor. The vertical settlement company or the third party investor will pay the premium amount; collect the face value amount after the original policyholder dies.

The viatical settlement company will set its own rules before it decides to buy the life insurance policy. He will buy only those policies which is owned by the policy holder for a minimum of two years, when he is terminally ill or when the policy holder can beneficiary sign a release or a waiver. This product has helped thousands of seniors tap the liquidity of an unwanted asset.

BEST LIFE INSURANCE :: Click here now www.BestLifeInsuranceBrokers.com

Choosing Cover Life Insurance :: Best Life Insurance

Sat, 17 Oct 2009 09:58:01 +0000

Before you choose a cover life insurance policy, there are several factors about your own life that you should consider. If you know where you stand in each of these categories, it will be easier for you to determine which life insurance policy is best for you and to feel secure in the choice you eventually make.

Your Finances

Your first consideration when it comes to cover life insurance should be your current financial situation. Are you at a place where things are mostly secure but you want to add to that? Or are thinking about life insurance because of how insecure your finances feel right now? How you answer these questions often determines what you’re looking for in life insurance.

If you’re in a place of financial security, you probably have a little extra money each month to spend on life insurance premiums. If you’re in an insecure economic place, you’ll often have less money to spend on your premium.

Knowing how much you have to spend can help you choose to slow down, take your time, and find the policy that best fits your budget.

Considering Your Needs

After you’ve assessed your financial needs, consider what else you need in a cover life insurance policy. Do you need a long or a short term policy? Are there any exclusions that need to be present or absent in a policy for you to purchase it?

Often, you will want a shorter term policy if you are older and a longer term policy if you are younger, to maximize the chances that your heirs will be able to collect the death benefit. If there is a propensity in your family history to die in a certain way, you will need to make sure that it is not among the exclusions of any policy you purchase.

List your needs, so you have them in front of you when speaking with the insurance company or their representative. Add the amount you can afford in a premium to this list, as it is another sort of need.

Taking Into Account Your Desires

Finally, before you purchase any cover life insurance policy, consider your desires. Maybe you would desire a longer-term policy than is absolutely necessary, or there are certain exclusions you’d prefer not have have attached to your policy.

Especially consider any riders you would like to have attached to your policy. While there is no guarantee that your insurance company will add these, it can be nice to know your policy will pay in case of a terminal diagnosis, for example, instead of just in case of death.

Pick Your Policy

When you find the cover life insurance policy that is right for you, it will have everything you need and as many of the items you want as are possible. Note that your wants are places where you can compromise, but any policy that does not meet your needs is not right for you or your family.

BEST LIFE INSURANCE :: Click here now www.BestLifeInsuranceBrokers.com

All You Need to Know About Premium Financing :: Best Life Insurance

Thu, 15 Oct 2009 09:02:47 +0000

Premium financing is a process wherein the permanent life insurance policy premiums are being paid by some of the third parties or third party lenders and it is an excellent marketing idea. In other words it can also be put forward as premium financing is a process which aims to increase your insurance needs by the method of financing the insurance. Thus premium financing enables individuals, business firms and the large companies to purchase the insurance without having to sell or lock up the various assets.

The working of the premium financing works in the following way consider for example you are owning an insurance policy worth X amount of dollars and you can use the value of your insurance policy as a mode of collateral security which will enable you to finance other insurance policies. Thus in this way premium financing allows you with a wide range of insurance options open to you. There is no doubt that premium financing is very much cost effective. It is a very favorable financing option as you can secure a huge loan amount against the life insurance policy. It is quite important to understand that you are going to get a much better option or in other words you will get much better rate of interest and the term of loan for the secured and the unsecured financing. However it is important that before getting a premium financing option you need to have a look at your financial needs and get proper advice before you go on with a financing option. There is this one question which many people have as to will it be required for them to purchase a new insurance policy or can they get the service of premium financing on their existing insurance policies. Well the answer to this simple question would be that at the time the practice of premium financing came into existence it was a requirement that you will have to purchase new insurance policies, but now this is not the case as you can get this option of premium financing on your existing insurance policy and there is no requirement for you to take the strain of going for a new insurance policy. This will again provide you with a very much better option that would not ask for your valuable possessions to be given as collateral security.

Some other people who really take the benefit of premium financing are the wealthy investors or the business owners. It is an extremely good option for the companies that do not want to tie up their assets to purchase the large amount of insurance policies. It is also a technique which is offered for the employees to be offered as a part of their wages. It allows the firms to attract new employees and help them retain their valuable employees. Premium financing is also used as a technique for estate planning, company expansion, attracting new employees and retaining their valuable employees.

BEST LIFE INSURANCE :: Click here now www.BestLifeInsuranceBrokers.com

A Perfect Investment – Could This Be It? :: Best Life Insurance

Sun, 04 Oct 2009 19:25:54 +0000

Did you know that there is an investment that allows you to invest safely, provides a guaranteed growth rate, doesn’t fluctuate based on the stock market or the economy, and best of all it can provide a guaranteed return in the event of you untimely death? So what kind of investment can do all that? Would you be surprised if I told you that it was permanent life insurance?

I know what your thinking, “when did life insurance become an investment?” With the recent decline of the stock and real estate markets, many are rethinking insurance as an asset class. Products like whole life, universal life, and indexed universal life have maintained their values when other assets like stocks, mutual funds, variable annuities, and real estate haven’t.

So why would you consider investing in life insurance over other investment options? First, insurance can and often does provide a guaranteed death benefit. The death benefit can ensure a positive return for your family on your investment, made via your premium payments. At life expectancy this return is often in the 6-8% range and is income tax free to the beneficiaries. That’s the equivalent of a 7.5-11% taxable return at assuming a 28% tax bracket.

Second, just like annuities and retirement accounts, the cash accumulation inside of a life insurance policy grows tax-deferred. This tax-deferral allows the money to grow faster due to the effects of compounding interest on the premiums and the subsequent gains.

Finally, similar to a ROTH account, income produced from an insurance policy can be received tax-free. So why not just use a ROTH account? Well, a ROTH account isn’t insured and the growth isn’t guaranteed. ROTH’s also have contribution and income limitations, where cash value life insurance doesn’t. Basically, a life insurance policy has the same advantages as a ROTH without the limitations, plus it offers a minimum guaranteed interest rate and a death benefit.

Let’s recap – life insurance, while not technically an investment, provides all of the following:

1. Long-term protection via a death benefit.

2. Income tax-free return on your investment (premiums) at death.

3. Tax-deferred growth on the internal cash values of the policy.

4. Potential for tax-free income from the policies cash values.

5. No contribution or income limitations.

6. A minimum guaranteed interest rate on the policies cash values.

That’s a pretty nice list of benefits for any “investment”, especially when it’s not considered one by most people. I know what you’re thinking – if permanent life insurance does all that, why do prominent advisors like Suze Orman and Dave Ramsey tell you to never use it? The simple truth is that many “old school” advisors – especially those that no longer actively practice their professions, have lost touch with current products, capabilities, and in many cases, laws and regulations that pertain to insurance and investment products.

Additionally, the advice offered by most prominent advisors is intended for “mom and pop” middle America. As such, it is often generic in nature and focuses on families with median incomes of under $50,000 per year – plus it doesn’t hurt that by making dramatic statement like “never” or “always” creates media attention and provides an audience for their message. This isn’t wrong; it is just the facts of the situation and should be heard as a “word of caution” for those needing more specific advice or one-on-one help.

To learn more about augmenting your current assets or investments with cash value life insurance, find a true “Financial Professional”. He or she will be able to discuss the pros and cons of using life insurance as an asset in your current investment portfolio. Don’t wait – there is never a good reason to delay making your financial future better.

BEST LIFE INSURANCE :: Click here now www.BestLifeInsuranceBrokers.com

Best Life Insurance Brokers » Best Life Insurance

What is Term Life Insurance

Shopping For Annuity Quotes Online :: Best Life Insurance

Be Careful For Over-insuring Your Life Needs :: Best Life Insurance

Everything You Want to Know About Life Insurance Quotes :: Best Life Insurance

Tax Advice: How to Get a Raise by Owning a Home :: Best Life Insurance

There is a Major Difference Between Term and Whole Life Insurance – Find Out Before You Buy :: Best Life Insurance

Overview on Life Settlement :: Best Life Insurance

Choosing Cover Life Insurance :: Best Life Insurance

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All You Need to Know About Premium Financing :: Best Life Insurance

A Perfect Investment – Could This Be It? :: Best Life Insurance