Better Credit Network
Do You Need Life Insurance
Life insurance protects you and your family from economic hardship as a result of death. It is an insurance company’s obligation to pay the recipient of your choice a pre-determined amount of money when you die in exchange for timely payment of premiums while you are living.
Do you really need life insurance? Well do you want to provide for your family and loved ones in a manner to which they have become accustomed in the untimely event of your death? If you are the primary breadwinner who will pay the mortgage on the house your spouse and children live in if you pass? Who will provide financially for your family if you are gone? How will your children’s education be financed in your absence? And finally how will your burial expenses be covered?
Do you really need life insurance? Well do you want to provide for your family and loved ones in a manner to which they have become accustomed in the untimely event of your death? If you are the primary breadwinner who will pay the mortgage on the house your spouse and children live in if you pass? Who will provide financially for your family if you are gone? How will your children’s education be financed in your absence? And finally how will your burial expenses be covered?
Now that you have decided you do indeed need life insurance, how much do you need and if you already have life insurance do you have
enough? Some things you will need to consider when making this decision:
Look for a company that has at least an AA-rating or above. You should feel comfortable with any company that has an AA or higher rating.
When it comes to pricing, don’t be fooled into thinking that insurance agents determine prices and that you can negotiate. Insurance companies set prices and they depend on age, gender, health, smoking status, family history, activities such as scuba diving, auto racing, foreign travel, etc. Insurance agents are not allowed to offer customers any pricing discounts or incentives. Insurance companies offer different versions of the same product. Often you will see what appears to be the same product, but at a lower price. Normally, the reason for this is that the lower
priced policy offers a weaker guarantee where the policy is not guaranteed for the full period. For example, a 10 year policy that is only guaranteed for the first 5 years
enough? Some things you will need to consider when making this decision:
Look for a company that has at least an AA-rating or above. You should feel comfortable with any company that has an AA or higher rating.
When it comes to pricing, don’t be fooled into thinking that insurance agents determine prices and that you can negotiate. Insurance companies set prices and they depend on age, gender, health, smoking status, family history, activities such as scuba diving, auto racing, foreign travel, etc. Insurance agents are not allowed to offer customers any pricing discounts or incentives. Insurance companies offer different versions of the same product. Often you will see what appears to be the same product, but at a lower price. Normally, the reason for this is that the lower
priced policy offers a weaker guarantee where the policy is not guaranteed for the full period. For example, a 10 year policy that is only guaranteed for the first 5 years
When choosing a life insurance policy there are important details to consider such as selecting the guarantee period, determining whether or not the policy is convertible and if re-entry is available. The guarantee period determines how long the premium remains at a level rate. Once the guarantee period is over, the premium will increase. It is important to determine how long you will need the
coverage and choose accordingly. Guarantee periods range from 1 to 30 years.
coverage and choose accordingly. Guarantee periods range from 1 to 30 years.
Most, not all, insurance companies will offer the ability to convert your term policy into a permanent policy during a given period of time. During this period, if you choose to convert your policy, you are not required to prove medical insurability.
You will only be required to pay the new premium at your older age. The period of time you have to convert may be the guarantee period or less. It is important to check the policy description or ask your agent to make sure.
You will only be required to pay the new premium at your older age. The period of time you have to convert may be the guarantee period or less. It is important to check the policy description or ask your agent to make sure.
Re-entry refers to the point at which you want to extend or purchase a new policy with the same company. It is important to know if you will be required to take a new medical exam or simply pay the new premium. All companies have different rules and you should understand them before you make your choice.
Another important consideration is choosing your beneficiary. It is normally an easy decision when it comes to your spouse or partner, but not if there are minor children in your family. Minor children named as a primary or secondary beneficiary must have a guardian/custodian appointed to handle and distributions of funds according to state laws.
Another important consideration is choosing your beneficiary. It is normally an easy decision when it comes to your spouse or partner, but not if there are minor children in your family. Minor children named as a primary or secondary beneficiary must have a guardian/custodian appointed to handle and distributions of funds according to state laws.
Choosing a life insurance policy does not have to be a difficult process. It also does not have to be done alone. Today, you have the choice of working with a local agent or shopping online. Internet websites such as Better Credit Network allow you to search hundreds of products and offer you the final decision as to which one to apply for. The companies work with you to process your application and send your policy once approved. Customers can expect to save money this way simply because they are able to choose for themselves instead of having an agent push his/her company’s products
Two Types of Life Insurance Coverage
There is individual coverage and group coverage. You may be able to buy group coverage if it's offered by your employer, union, or association. Otherwise, you can buy individual coverage. Generally, group coverage is cheaper because of the group rates.
Two Types of Life Insurance Policies
There is term insurance and permanent insurance
Term insurance. This policy pays a death benefit if you die within a specific period of time (the term of the policy). Like auto and homeowners insurance, term insurance only covers you during the time you're making payments. For this reason, it's less expensive than permanent life insurance. There are four different varieties of term insurance
Convertible term insurance lets you convert the policy into a permanent one at any time. There's no medical exam, but premiums may go up
Term insurance lets you sign on for a new term policy without a medical exam, although the premium may be higher
Level term insurance lets you pay the same premium every year for the length of the term and be entitled to the same amount of proceeds if you die during the term. If you want to renew it at the end, your premium may rise significantly, since you'll be older
Decreasing term insurance pays a death benefit that gradually decreases in value over time. Premiums usually remain the same throughout the term
Permanent insurance. This policy continues until you die (as long as you make timely payments) and may provide a savings feature that
builds up a cash reserve you can use while you're alive. In fact, if there's enough, you can use the cash to pay the premiums, which can be
helpful in times of tight finances. This insurance is more expensive than term insurance. There are a few varieties of permanent insurance
builds up a cash reserve you can use while you're alive. In fact, if there's enough, you can use the cash to pay the premiums, which can be
helpful in times of tight finances. This insurance is more expensive than term insurance. There are a few varieties of permanent insurance
Whole life lets you pay a fixed premium for a fixed death benefit. There is a cash savings feature that, over time, provides you with a cash reserve
Universal life is a little more flexible than whole life. It may let you change the amount of insurance as your needs change. Some changes may require a medical exam
Variable life invests some of your premiums in stocks, bonds, and money market funds. The upside is that your investments may perform well, and provide a larger cash reserve. The downside is the risk that the investments will lose money, but a minimum cash value is seldom guaranteed. Most insurers guarantee a minimum death benefit, although it may not be what you had hoped to receive
Variable-universal life combines the premium and death benefit flexibility of universal life with the investment flexibility and risk of variable life insurance.
Resources
Bad Credit Debt Consolidation
Our goal is to help people get out of debt as soon as possible and give advice
http://www.debtconsolidationlive.co.uk/
Our goal is to help people get out of debt as soon as possible and give advice
http://www.debtconsolidationlive.co.uk/
Affordable Life Insurance
Life insurance instant gratification, courtesy of Life Insurance Rate.
www.lifeinsurancerate.com
Life insurance instant gratification, courtesy of Life Insurance Rate.
www.lifeinsurancerate.com
Health Insurance Online
You know you need it, so come get the Health insurance you need from Health Insurance Quote PRO
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You know you need it, so come get the Health insurance you need from Health Insurance Quote PRO
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Health Insurance Company
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Get Health insurance quickly with Get Some Health Insurance!
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Life Insurance Companies
We did the Life insurance homework for you. See the results at Get Some Life Insurance
We did the Life insurance homework for you. See the results at Get Some Life Insurance
Term Life Insurance
We did the Life insurance homework for you. See the results at Life Insurance Rates
We did the Life insurance homework for you. See the results at Life Insurance Rates
low cost individual health insurance
If you're looking for cheap health insurance, you've found it.
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If you're looking for cheap health insurance, you've found it.
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Life Insurance Quotes
You know you need it, so come get the Life insurance you need from Life Insurance Quotes Pro
You know you need it, so come get the Life insurance you need from Life Insurance Quotes Pro
Life Insurance
Life Insurance that suits you best, you protect your family and loved ones against everything.
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Life Insurance that suits you best, you protect your family and loved ones against everything.
We can help you to choose from the best available offers.
life.insurancequotecompared.com/
Life Insurance is an insurance product that pays at the death of the insured. It really should be called "Death Insurance," but people don't like that name. But it insures the death of an individual. Actually, what is insured is the economic loss that would occur at the death of the person insured.
Those economic losses take a lot of different forms, such as:
- the income stream of either "breadwinner" in a family
- the loss of services to the family of a stay-at-home-mom
- the final expenses at the death of a child
- final expenses of an individual after an illness and medical treatment
- "Keyman" coverage, which insures the owner or valuable employee of a business against the economic loss the business would suffer at their death
- estate planning insurance, where a person is insured to pay estate taxes at death
- "Buy and Sell Agreements," in which life insurance is purchased to fund a business transaction at the untimely death of parties in the transaction
- Accidental death insurance, in which a person buys a policy that pays in case they die due to an accident
- Mortgage life insurance, in which the borrower buys a policy that pays off the mortgage at death - and many more.
Life insurance has been around for hundreds of years, and in some cases, has become a much better product. The insurance companies have been able to develop mortality tables, which are studies of statistical patterns of human death over time...usually over a lifetime of 100 years. These mortality tables are surprisingly accurate, and allow the insurance companies to closely predict how many people of any given age will die each year. From these tables and other information, the insurance companies derive the cost of the insurance policy.
The cost is customarily expressed in an annual cost per thousand of coverage. For example, if you wanted to buy $10,000 of coverage, and the cost per thousand was $10.00, your annual premium would be $100.00.
Modern medicine and better nutrition has increased the life expectancy of most people. Increased life expectancy has facilitated a sharp decrease in life insurance premiums. In many cases, the cost of insurance is only pennies per thousand.
There is really only one type of life insurance, and that is Term Insurance. That means that a person is insured for a certain period of time, or a term. All of the other life insurance products have term insurance as their main ingredient. There is no other ingredient they can use. However, the insurance companies have invented many, many other life products that tend to obscure the reasons for life insurance. They also vastly enrich the insurance companies.
Term Insurance
The most basic life insurance is an annual renewable term policy. Each year, the premium is a little higher as a person ages. The insurance companies designed a level premium policy, which stopped the annual premium increases for policyholders. The insurers basically added up all the premiums from age 0 to age 100 and then divided by 100. That means that in the early years of the policy, the policyholder pays in more money that it takes to fund the pure insurance cost, and then in later years the premium is less than the pure insurance cost.
The same level term product can be designed for terms of any length, like 5, 10, 20, 25 or 30 year terms. The method of premium averaging is much the same in each case.
But this new product caused some problems. Insurers know that the vast majority of policyholders do not keep a policy for life. Consequently the level term policyholders were paying future premiums and then cancelling their policies. The insurance companies were delighted because they got to keep the money. But over time, they developed the concept of Cash Value.
Cash Value Insurance
With Cash Value insurance, a portion of the unused premium you spend is credited to an account tied to your policy. The money is not yours...it belongs entirely to the insurance company. If you cancel your policy and request a refund, they will refund that money to you. Otherwise, you have other choices:
1. Use the cash value to buy more insurance
2. Use the cash value to pay existing premiums
3. You may borrow the money at interest
4. If you die, the insurance company keeps the cash value and only pays the face amount of the insurance policy.
So, does this cash value product make sense? My response is "NO!"
Cash Value Life Insurance comes in lots of other names, such as:
- Whole Life
- Universal Life
- Variable Life
- Interest Sensitive Life
- Non-Participating Life (no dividends)
- Participating Life (pays dividends)
Many life insurance agents and companies tout their products as an investment product. But cash value insurance is not an investment. Investment dollars and insurance premiums should never be combined into one product. And investment dollars should NEVER be invested with an insurance company. They are middle men. They will take your investment and invest it themselves, and keep the difference.
Think about the methods that agents use to sell life insurance, and compare them to any other type of insurance. What you'll see is that life insurance sales tactics and techniques are ridiculous when compared to other insurance products.
Would you ever consider buying a car insurance policy, or homeowners policy, or business insurance policy in which you paid extra premium that the insurance company kept, or made you borrow from them? But, curiously, life insurance agents have been wildly successful convincing otherwise intelligent people that cash value life insurance is a good product to buy.
Care to guess why insurance agents have aggressively sold cash value insurance and eschewed term insurance?
Commissions.
The insurance companies have become vastly wealthy on cash value insurance. So, to encourage sales, they pay huge commissions. Term insurance commissions can range from 10% to 50%, sometimes even 100%. But cash value insurance commissions can be up to 100% of the first year's premium, and handsome renewal commissions for years after.
But it's not just the commission rate that matters. It's also the premium rates that come into play. Term insurance is FAR CHEAPER than cash value insurance.
Here's an example of a 30 year old male, non-smoker, buying $100,000 of coverage:
Term insurance costs $0.50 per thousand for a premium of $50.00. At 100% commission, the commission would be $50.00.
Cash Value insurance costs $12.50 per thousand for a premium of $1,250.00. At 100% commission, the commission would be $1,250.00.
So you see that it would be easy for an agent to place his own financial well-being ahead of the well-being of his client. He would have to sell 25 term policies to make the same commission as only one cash value policy.
But, in my opinion, that agent would have violated his fiduciary duty to the client, which is the duty to place the client's needs above his own. The agent would also have to set aside his conscience.
My opinion is that life insurance agents operate from one of three positions:
1. Ignorance - they simply don't know how cash value insurance works.
2. Greed - they know exactly how cash value insurance works and sell it anyway.
3. Knowledge and Duty - they sell term insurance.
Which agent do you want to do business with?
How do I know this stuff? Because I sold cash value life insurance early in my career.
When I started as an insurance agent in 1973 I knew absolutely nothing about how life insurance worked. The insurance company taught me to sell whole life insurance, and to discourage clients from term insurance. But, after some time of reading and research, I learned that cash value insurance is a bad deal. I began to sell only term insurance. I refused to set aside my conscience. I also went back to some early clients and switched their policies from cash value to term.
The insurance company fired me for that decision.
I found a new insurance company that only sold term insurance and also paid high commissions. I made a good living selling term insurance, so I know it can be done.
So, as you shop for life insurance, please accept the advice of an old agent. Never, never, ever buy cash value life insurance. Buy term insurance.
Those economic losses take a lot of different forms, such as:
- the income stream of either "breadwinner" in a family
- the loss of services to the family of a stay-at-home-mom
- the final expenses at the death of a child
- final expenses of an individual after an illness and medical treatment
- "Keyman" coverage, which insures the owner or valuable employee of a business against the economic loss the business would suffer at their death
- estate planning insurance, where a person is insured to pay estate taxes at death
- "Buy and Sell Agreements," in which life insurance is purchased to fund a business transaction at the untimely death of parties in the transaction
- Accidental death insurance, in which a person buys a policy that pays in case they die due to an accident
- Mortgage life insurance, in which the borrower buys a policy that pays off the mortgage at death - and many more.
Life insurance has been around for hundreds of years, and in some cases, has become a much better product. The insurance companies have been able to develop mortality tables, which are studies of statistical patterns of human death over time...usually over a lifetime of 100 years. These mortality tables are surprisingly accurate, and allow the insurance companies to closely predict how many people of any given age will die each year. From these tables and other information, the insurance companies derive the cost of the insurance policy.
The cost is customarily expressed in an annual cost per thousand of coverage. For example, if you wanted to buy $10,000 of coverage, and the cost per thousand was $10.00, your annual premium would be $100.00.
Modern medicine and better nutrition has increased the life expectancy of most people. Increased life expectancy has facilitated a sharp decrease in life insurance premiums. In many cases, the cost of insurance is only pennies per thousand.
There is really only one type of life insurance, and that is Term Insurance. That means that a person is insured for a certain period of time, or a term. All of the other life insurance products have term insurance as their main ingredient. There is no other ingredient they can use. However, the insurance companies have invented many, many other life products that tend to obscure the reasons for life insurance. They also vastly enrich the insurance companies.
Term Insurance
The most basic life insurance is an annual renewable term policy. Each year, the premium is a little higher as a person ages. The insurance companies designed a level premium policy, which stopped the annual premium increases for policyholders. The insurers basically added up all the premiums from age 0 to age 100 and then divided by 100. That means that in the early years of the policy, the policyholder pays in more money that it takes to fund the pure insurance cost, and then in later years the premium is less than the pure insurance cost.
The same level term product can be designed for terms of any length, like 5, 10, 20, 25 or 30 year terms. The method of premium averaging is much the same in each case.
But this new product caused some problems. Insurers know that the vast majority of policyholders do not keep a policy for life. Consequently the level term policyholders were paying future premiums and then cancelling their policies. The insurance companies were delighted because they got to keep the money. But over time, they developed the concept of Cash Value.
Cash Value Insurance
With Cash Value insurance, a portion of the unused premium you spend is credited to an account tied to your policy. The money is not yours...it belongs entirely to the insurance company. If you cancel your policy and request a refund, they will refund that money to you. Otherwise, you have other choices:
1. Use the cash value to buy more insurance
2. Use the cash value to pay existing premiums
3. You may borrow the money at interest
4. If you die, the insurance company keeps the cash value and only pays the face amount of the insurance policy.
So, does this cash value product make sense? My response is "NO!"
Cash Value Life Insurance comes in lots of other names, such as:
- Whole Life
- Universal Life
- Variable Life
- Interest Sensitive Life
- Non-Participating Life (no dividends)
- Participating Life (pays dividends)
Many life insurance agents and companies tout their products as an investment product. But cash value insurance is not an investment. Investment dollars and insurance premiums should never be combined into one product. And investment dollars should NEVER be invested with an insurance company. They are middle men. They will take your investment and invest it themselves, and keep the difference.
Think about the methods that agents use to sell life insurance, and compare them to any other type of insurance. What you'll see is that life insurance sales tactics and techniques are ridiculous when compared to other insurance products.
Would you ever consider buying a car insurance policy, or homeowners policy, or business insurance policy in which you paid extra premium that the insurance company kept, or made you borrow from them? But, curiously, life insurance agents have been wildly successful convincing otherwise intelligent people that cash value life insurance is a good product to buy.
Care to guess why insurance agents have aggressively sold cash value insurance and eschewed term insurance?
Commissions.
The insurance companies have become vastly wealthy on cash value insurance. So, to encourage sales, they pay huge commissions. Term insurance commissions can range from 10% to 50%, sometimes even 100%. But cash value insurance commissions can be up to 100% of the first year's premium, and handsome renewal commissions for years after.
But it's not just the commission rate that matters. It's also the premium rates that come into play. Term insurance is FAR CHEAPER than cash value insurance.
Here's an example of a 30 year old male, non-smoker, buying $100,000 of coverage:
Term insurance costs $0.50 per thousand for a premium of $50.00. At 100% commission, the commission would be $50.00.
Cash Value insurance costs $12.50 per thousand for a premium of $1,250.00. At 100% commission, the commission would be $1,250.00.
So you see that it would be easy for an agent to place his own financial well-being ahead of the well-being of his client. He would have to sell 25 term policies to make the same commission as only one cash value policy.
But, in my opinion, that agent would have violated his fiduciary duty to the client, which is the duty to place the client's needs above his own. The agent would also have to set aside his conscience.
My opinion is that life insurance agents operate from one of three positions:
1. Ignorance - they simply don't know how cash value insurance works.
2. Greed - they know exactly how cash value insurance works and sell it anyway.
3. Knowledge and Duty - they sell term insurance.
Which agent do you want to do business with?
How do I know this stuff? Because I sold cash value life insurance early in my career.
When I started as an insurance agent in 1973 I knew absolutely nothing about how life insurance worked. The insurance company taught me to sell whole life insurance, and to discourage clients from term insurance. But, after some time of reading and research, I learned that cash value insurance is a bad deal. I began to sell only term insurance. I refused to set aside my conscience. I also went back to some early clients and switched their policies from cash value to term.
The insurance company fired me for that decision.
I found a new insurance company that only sold term insurance and also paid high commissions. I made a good living selling term insurance, so I know it can be done.
So, as you shop for life insurance, please accept the advice of an old agent. Never, never, ever buy cash value life insurance. Buy term insurance.
Helpful Advice from an Old Insurance Agent...Never, Never...
For more information on Life Insurance visit: Russell Longcore at; http://www.insurance-claim-secrets.com/
Affordable Term Life Insurance
Affordable term life insurance quotes at Florida life insurance independent agent Storick Group
www.storickgroup.com/get-a-quote/term-life
Affordable term life insurance quotes at Florida life insurance independent agent Storick Group
www.storickgroup.com/get-a-quote/term-life
Family Health Insurance
At HealthInsuranceQuotes.com we provide online health insurance quotes from nationwide health insurance companies along with impartial news, consumer tips and more.
www.healthinsurancequotes.com
At HealthInsuranceQuotes.com we provide online health insurance quotes from nationwide health insurance companies along with impartial news, consumer tips and more.
www.healthinsurancequotes.com
Health Insurance Quotes
At HealthInsuranceCoverage.com, you can find all kinds of affordable health insurance coverage fast, simple and free!
www.healthinsurancecoverage.com
At HealthInsuranceCoverage.com, you can find all kinds of affordable health insurance coverage fast, simple and free!
www.healthinsurancecoverage.com
Health Insurance Grand Rapids
Berends Hendricks Stuit Insurance Agency offers business, auto and health insurance in cities like Grand Rapids, Holland, Hudsonville & Grandville, MI
www.bhsins.com
Berends Hendricks Stuit Insurance Agency offers business, auto and health insurance in cities like Grand Rapids, Holland, Hudsonville & Grandville, MI
www.bhsins.com
Austin Insurance
J. Nate & Associates, LLC is an Austin, Texas based insurance agency offering life and health insurance for individual, family and group. We also specialize in disability, long term care and short term health insurance.
http://www.jnateinsurance.com
J. Nate & Associates, LLC is an Austin, Texas based insurance agency offering life and health insurance for individual, family and group. We also specialize in disability, long term care and short term health insurance.
http://www.jnateinsurance.com
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