An Intro To Life Insurance

There are many options available for life insurance, and for most people these options can be somewhat confusing. Below is a brief review of each type and some advantages and disadvantages of each. When choosing a policy it is important to look at the larger picture so that you make a wise choice in terms of cost, coverage and benefits.

Term life insurance

These plans provide monetary benefits only if death occurs within the time period that the insurance is set for. Term insurance is generally most affordable and offers additional savings for younger policy holders.

Permanent life insurance

This policy is a more long lasting option for insurance. The premiums are higher, but there is not a term on the length of time that the policy will pay out. Another benefit to these types of policies is that some companies take the profit and reinvest it and pay dividends to the policy holders. There are no taxes on these dividends unless the holder accesses the cash value.

Whole life insurance

Another type of policy with a cash value is the whole life insurance policy. These types of policies have a set premium for the length of the policy. At policy inception and in the early life of the policy rates are rather high compared to the risk of death, but over time as the risk for death increases the policy remains low and can be more affordable than other types of policies.
Universal life insurance
A universal life policy combines the benefits of a term and whole life policy. The policy provides for accumulation of cash reserves, which can be borrowed against at a later time. Premium payments and coverage amounts can be varied year to year

Variable life insurance

Variable life insurance is a policy that has some similarities to an investment plan. The profits that the company makes are reinvested into stocks and bonds, and these investments affect the cash value that the policy carries. This can provide a greater cash return on your policy, but it can also offer less as the money is tied to market performance.
Single premium policy

The single premium policy is a unique type of insurance. This policy has one premium up front for the amount of the life insurance coverage. This amount, while large, does have some security behind it. It allows someone to give the policy as a gift, or add it to an estate plan. There is no risk that the policy will be canceled due to non payment, and this allows security if it is bought for someone as a gift or as protection for the family for the future.

Survivorship policy

A new type of policy that has been offered recently is a survivorship policy. This is a policy that covers two separate people under one policy. After the first person dies, the remaining person receives no benefits. There is no payout until both parties covered under the policy have passed away. This type of policy might not make much sense to people, until they consider that this policy is a great thing for estate planning for children and other family members.

Now, how to decide what you need and want out of a policy? The best thing is to take a look at your goals. For example, Do you want a policy that remains unchanged, or one that can be adjusted from time to time depending on your current life situation? Do you view insurance as something that you get leave alone, or something that can help you now as well as your survivors in the future?

Talking with a reputable insurance agent can be helpful in terms of narrowing options and addressing the complex array of needs a potential plan might fill. Many times, an agent can do a profile on you and give you exactly what you need without the unnecessary and often expensive extras.

Nicole Soltau is the President and Founder of http://CreditUnionRate.com
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The Mysterious World of Senior Settlements

Ever wonder why your life insurance company doesn’t advertise life or senior settlements? It is actually in their best interest not to say a word because they make less money as a result of people that decide to go with the senior settlement route. But, still, just what is a senior settlement and how can it possibly be of any benefit to you?

Also known as a life settlement, a senior settlement is what happens when you sell your life insurance policy to a third party, such as a bank or similar financial institution. Basically, these life settlements are little more than lump sum insurance settlements that someone pays you for the death benefits your beneficiaries would receive upon your death from the life insurance companyonly you get this money while you are still alive! Confused yet? Don’t worry, senior settlements are only mysterious until you see how simple they truly are.

Basically, a company or individual investor pays you a percentage of the death benefits that your beneficiaries would receive when you die. They clearly cannot pay you what your heirs would receive in a normal life insurance settlement because they would not make any money doing so. Plus, these companies and businesses continue to pay the premiums on your life insurance policy until, well, the time of your death. They are taking a gamble on how long you might live so the younger you are when you enter into a senior settlement, the smaller the percentage is that they are willing to pay upon the total of your death benefits. So, what is in it for you and why even consider getting less money for your death benefits after paying those life insurance premiums for all those years?

The truth is that many of us buy life insurance when we are younger and less prepared for things like retirement. But as we age, we honestly tend to need life insurance less and less because we are generally better able to tend to our financial affairs than when we are younger. Upon our death, our loved ones have less to worry about at this time and therefore you may consider “cashing in” your life insurance policy. But, a senior settlement will generally payout much more than the life insurance company will give you in the surrender value. This is because, unlike senior or life settlements, the insurance company will surrender the money you paid in on premiums but will most likely not give you any of the money that they have made in interest off of your premiums over the years. A senior settlement, however, does give you some of that money and it will almost always exceed the surrender value paid by a life insurance company.

Senior settlements are not for everyone. But if you no longer need a life insurance policy that may have become obsolete and if you are looking to boost your nest egg or just have some more cash to invest for your retirement, you should consider a senior settlement. Senior, or life settlements, are not as mysterious as you may think and you will make out better than if you simply cashed in your life insurance policy. Just find out what your life insurance surrender value is and then shop around for some senior settlements and you will could be very surprised at how much more profitable they are in comparison. And just like any of your other investments make sure you know the real value of your life insurance before you sell.

Jim Prescott, CPA business consultant for over 30 years specializing in small and medium size businesses that range from closely held to publicly traded companies. Jim is a Partner in CPA firm Prescott Chatellier Fontaine & Wilkinson, LLP that offers audit, accounting, investment advice, tax planning services, estate plans, pension plans consulting and insurance advice. In addition to the CPA firm’s web site Prescott Chatellier Fontaine & Wilkinson, LLP you can find more information and Articles on Life Settlements at http://www.yourlifesettlements.com.

Homeowners Insurance - What Is Guaranteed Replacement Cost?

Many times when you apply for a homeowners loan, the bank requires you to insure the home for the entire amount of the loan. The value of the land, which may be substantial, is included in the purchase price, and in the event of a catastrophe, the land generally is not going anywhere. To get around that, insurance companies came up with a guaranteed replacement cost policy.
If you reasonably insured your house for $100,000, and after totally burning down it cost $150,000 to rebuild it, the insurance company would be on the hook for the entire $150,000. This relieved the homeowner of the responsibility of insuring his home for the entire amount of the loan if it exceeded the replacement cost of his home.

Due to several recent natural disasters, many insurance companies have discontinued their guaranteed replacement cost policies. Some will provide a percentage of the policy coverage amount at no extra cost, but many will only pay up to the policy limits to rebuild your home in the case of a loss. I strongly urge you to determine the replacement cost of your home, contact your insurance company to see if your current policy will cover that value and increase coverage if need be.

Douglas T. Zinkevicz has had over a decade of experience servicing the auto,home and life insurance needs of his clients.Let him help you with your insurance questions by visiting http://www.insuranceplus.blogspot.com.

Term Life Insurance Company - How to Compare Them

Types of Term Life Insurance Plans Available

You can go in for “Decreasing Term” or “Annual Renewable Term” or “Level Term” insurance policies depending on your needs. A “Decreasing Term” policy is usually between 10 to 30 years. The face value of such insurance decreases over a period of time. This insurance is suited for people having little financial liabilities.

The “Annual Renewable” policy has to be renewed every year with increase in premium every year. It is best suited for people whose conditions changes very often. “Level Term “policy has a fixed rate of for a specific period. This insurance plan has a low premium. This is more suited to young people. Consider a policy which includes critical illness clause. Compare the same type policies offered by different companies before making a final decision.

Majority of insurance companies sell both term and permanent life insurance. However, a few companies deal in term life insurance only. Purchasing insurance is not difficult but what is difficult is to choose the right company and plan for your insurance.

The most important consideration in selecting the right insurance company is the type of service the company is providing. Professional companies deal through qualified and trained agents, which is a preferred choice by some but some like to deal directly with customer care service.

You must find out about the legitimacy of the company. Another factor is easy approachability and contact with the insurance company. Rating about the insurance company as per it financial soundness can be obtained from the rating bureau book available in most of the libraries.

Details of insurance and insurance companies are available online also. Purchasing term life insurance online has its own advantages and disadvantages. The advantages are - Salesman is eliminated who may convince you to buy an insurance policy not suited for you.

Vast amount of information is available on different websites which allows you to compare different policies and offer you a wide choice to select a policy most suited for you. Term life insurance carries no cash value therefore it is easier to compare similar type policies of different insurance companies.

The disadvantages of buying insurance online are - You are devoid of any personal advice. There is no one to guide you through type of policy that you should buy. You are on your own. Special rates given through agents are not available when you buy insurance online.

Now that you know the advantages and disadvantages of different policies and the modes of purchase, you can take an informed decision and select the right insurance policy as per your requirements.

Joe writes for several quality article directories, even foreign-language ones like these: Articulos Espanoles and Spanish Articles

How Do I Lower My Auto Insurance Rates?

Since there are many factors that go into determining your auto insurance rates, there are many chances to lower your rates.

If you change jobs and your drive to work changes or you stop working or you work from home, you should contact your insurance company.

If you have a teen driver and they go to school over 100 miles away without a car then you should be able to get a discount.

If you get married and are in your teens or twenties call your insurance company and see about combining your policies.

Take defensive driving if your state allows it for a discount.

See if increasing your comprehsive and collision deductibles will save you a lot of money. You need to compare what you’re saving and how much more you will have to pay if you file a claim. For example, if you go from $500 to a $1000 deductible and it lowers your insurance $50 per 6 months then it saves you $100 a year.

It will take you 5 years to break even from what you are saving compared to how much more you have to pay.

Now, if it saves you $250 every six months then it would be more worth your while.

See if combining your auto and home insurance polices will qualify for a multi policy discount with your current company. This could be a substantial discount.

One of the biggest ways you could save $200-$500 or more a year is shopping around for insurance. The auto insurance industry is very competitive and this is great news for smart consumers like yourself. Shop for auto insurance quotes here and see how much you can save.

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A. Chris Tijerina has over 3 years of experience in the auto insurance industry and has seen many different people deal with auto insurance related problems. http://www.insurance-for-cars.com answers many of the questions facing drivers today.

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Long Term Care Insurance Advice - Some Tips for Getting Low Rates and Good Coverage

The purpose of buying insurance is to transfer risk. In the case of long term care insurance, you are transferring the cost of long term care whether it is in-home residential care or nursing home care, to the insurance company.

Long term care is expensive. The goal of long term care is to pay for the care of chronically ill patients. Unlike traditional medical insurance, where payments are made in order for the patient to eventually get well, insurance companies that provide long term care know that in most cases the patient does not get well. The medical expenses can conceivably last for years and care costs are extremely high. As a result, the premiums are expensive.

Diseases like Alzheimer’s or Parkinson’s may prevent some people from being able to purchase long term care insurance because of the underwriting requirements of the insurance company.

Why by the insurance? If you have sizeable assets that you would like to protect, long term care insurance is for you. If you have an estate and would rather not to see it get squandered away by paying the high cost of in-home or nursing home expenses, an insurance policy will protect your assets. There is a peace of mind that accompanies the purchase because the costs are pretty much contained within the policy and your assets are free to be passed on to the next generation.

In the event you don’t have sizeable assets you have the option of applying for Medicaid. Medicaid is insurance for low-income families and individuals who fit within the criteria set by the government and the state in which you live. Medicaid is funded federally and administered by the state. Guidelines for obtaining Medicaid vary from state to state. Check with your state for qualification.

Whether you have assets to protect or not, it pays to buy long term health care insurance for peace of mind that it affords.

View our Recommended Source for Insurance Quotes it is a simple site that provides free quotes for all types of insurance.

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Disability Benefits: Representative Payees

A representative payee is a third party Social Security pays your disability benefits to on your behalf. The representative payee is responsible for ensuring your bills for food, clothing, and shelter are paid on a monthly basis. Here is what you need to know about representative payees for Social Security.

A representative payee is intended to help individuals who are unable to manage their finances due to a disability. Social Security benefits are paid directly to this third party on behalf of the disabled individual. A representative payee can be almost anyone you choose: a spouse, family member, friend, or non-profit organization can all handle your Social Security benefits on your behalf. Your local Social Security office can appoint a representative payee for you if they feel you are unable to manage your finances for yourself. This causes problems for some disabled individuals that do not want a third party managing their money.

If you have a representative payee and want to become your own payee, there is only one way to do this. You must have a doctor that is familiar with your situation fax a letter to your local Social Security office stating that you are capable of managing the Social Security check for yourself and do not require a representative payee. Once the local Social Security office has this documentation from a doctor or psychologist, it takes about thirty days for the local office to process the payee change for you.

If you would simply like someone else to be your payee, that person needs to visit the local Social Security office with their identification and fill out the application to become your representative payee. To learn more about Social Security benefits visit the website “Social Security Laid Bare” using the links below.

Jack Burton specializes in helping people understand Social Security programs for Retirement, Medicare, Supplemental Security Income (SSI), and Disability Benefits. The website Social Security Laid Bare presents information on all of Social Security’s programs in an easy to read format, without technical jargon. For more information visit Social Security Laid Bare: http://www.socialsecuritylaidbare.com

Top 10 Ways To Get Cheap Car Insurance Rates - Part 1

Car insurance is a very necessary, but also expensive part of owning and driving an automobile. There is no telling when you might find yourself in an auto accident, so you have to be prepared with reliable auto insurance coverage. But there is no reason that the coverage you get has to be any more costly than absolutely necessary. Here are ten ways that you get cheap car insurance rates and still maintain great coverage at the same time:

1. It really goes without saying that the better driving record you have, the cheaper your car insurance rates will be. But some folks just don’t seem to get that. Constantly speeding and driving recklessly will not only put you at a much higher risk of hurting yourself and others in an auto accident, but it also will eventually lead to your paying a much higher car insurance rate as the traffic citations mount. So slow down and drive carefully to save money.

2. Shop around thoroughly to get cheap car insurance rates. There is absolutely no reason that the average person cannot get several auto insurance quotes quickly and easily today because of the internet. You really don’t even have to pick up the phone and make any calls to do it these days. Just log on and search for car insurance quotes in your favorite search engine, and go down the list provided getting as many quotes as you can. Just be sure to choose from the best and highest rated insurance companies, and avoid newcomers that haven’t been around long enough to establish much of a record yet.

3. Shop for insurance before you buy your car. Unfortunately many have not done this and suddenly find out that the car they just bought that they can barely afford will now cost them even more because it raises their car insurance rates significantly. Remember that auto insurers base their rate calculations on many things and some of them have nothing to do with you and your driving record. For instance, they consider the sticker price of the vehicle, how costly it is to repair, how prone to theft it is, and so forth. So before you buy, make sure you know how any car purchase that you make will affect your car insurance rates and avoid those vehicles with rates that are out of your price range.

4. Raise your deductible. The deductible of a policy is the amount that you agree to pay out of pocket for each claim that is made. The more that you agree to pay, the less risk that poses for the insurance company and therefore the lower rates you can enjoy. However, just make sure that you don’t exceed the amount that you actually can pay in the case of a claim.

5. If your car is older you may consider eliminating collision coverage that pays to repair your vehicle if it is in an accident. If the car’s value is very low, you will most likely be paying for more insurance than you really need, and eliminating this part of your coverage could result in serious savings on your car insurance bill. Of course, in this case if the car is ruined in an accident you will most likely have to buy another one. Just check out the worth of your car at kbb.com and decide for yourself whether this makes sense for you or not.

Be sure to read through Part 2 of this article to find out what the next 5 tips for getting cheap car insurance rates is.

Jim Johnson writes on many consumer related topics including autos. You can find out more about how to get cheap car insurance rates and the best car insurance quote by visiting our Auto Review website.

Define Term Life Insurance - Understanding Life Insurance

Life insurance is a wonderful product. It has been with us for a long time and has provided security for so many people. Term life insurance is arguably the purest form of life insurance. The average insurance buyer probably recognizes term insurance because of its reputation for being the least expensive of all the life insurance policies. The public has surely caught on to this aspect but is sometimes hard pressed to define the product that they purchase. How do you define term life insurance? The name itself actually defines the policy. Term indicates a definite time period. Term also tells us that there is a date in time when the policy terminates. Term life insurance provides protection for a defined period of time and then terminates. That definition about sums it up.

What do term policies look like?

1. Decreasing Term - This type of term policy provides protection over a stated period of time. The initial face amount of the policy will decline over that stated period of time. Mortgage term life insurance is usually a decreasing term policy because the coverage declines gradually just like the mortgage.

2. Level Term - This policy also has a defined period of time but the face amount of the policy remains level. There are commonly 5, 10, 15, and 20 year level term policies. These are excellent policies to cover short term or intermediate term debt obligations.

3. Annual Renewable Term - This term policy insures for a specified face amount with annual increases in premium. The rates are very low at the beginning and very high in the later years.

4. Credit Term - This type of term insurance is rarely discussed but it is purchased all the time when we buy our automobiles, furniture and other household goods. The term life protection is purchased to protect the lender. It is optional at the time of purchase. The lender is the beneficiary.

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Finding a Cheap Life Insurance

If you want to make your family financially secured after your death, the only answer is, own a life insurance policy. Moreover these life insurance policies help to keep alive the plans you made for your family and the career of your children even after your death. So now you could see the priority of life insurance policy in one’s life.

Now with the availability of so many life insurance policies you might ponder for the right and cheap life insurance policy a well as that which works best for you. Many people consider term life insurance policy to be the cheapest and simplest way to cover their beloved one’s future in the event of their death. For instance, if the term life insurance policy matches the repayment term of your mortgage, the life insurance lump sum can be used to clear your mortgage debt in case you die before the mortgage repayment term cease.

The more you go with convoluted insurance policy the more premium you are required to pay. That’s the reason why many people prefer term life insurance policy.

Since the premium you pay is very less (as there is no investment element), Term life insurance becomes the most affordable and cheapest way to cover your life. You get the payment as lump sum if you die within a specified period.

However, it is seen that life insurance premiums are now up to 40% cheaper than they were before.

It is also advisable to get as many numbers of life insurance quotes before you apply for a policy as it decides how much your premium will be.

Term life insurance quotes can be collected from banks, any financial organization or any reliable consultants. However it is best to get online term life insurance quotes and then make a comparison based on your budget and requirement. However check for the authenticity of online companies before investing in any of them.

However, these quotes can change once you complete with the application. If you are unhappy with the premium, you may not carry on with the policy.

Policies generally require a medical clearance test, but if you don’t want to wait for a medical report you can go for term life insurance no exam policy, which is also affordable and cheap.

We have made an independent research on life insurance. Find it only on the Instant issue life insurance research. All about life insurance on LeanderNet - http://www.leandernet.com