Many of us buy life insurance because we want to make sure that our loved ones, especially dependents, remain financially secure after we die. Income replacement is the No. 1 reason people buy life insurance.

Non-earning caregivers also have an important – and often overlooked – economic value that should be covered by life insurance.

Life insurance is also purchased by those interested in achieving specific business or estate-transfer goals.

There are many types of life insurance policies depending on your goals, and there are huge price differences among different companies offering identical coverage. Policies are available from hundreds of life insurance companies in the United States. Most financial planners recommend that each family income provider carry no less than 10 times their annual income in life insurance.

Here’s an orderly way to go about shopping for life insurance:

• 1) Assess your needed life insurance amount..
• 2) Decide on the most appropriate policy type for your goals.
• 3) Choose possible companies by setting high standards for financial stability ratings.
• 4) Shop until you find the best price.
• 5) Look at ways to get the best possible life insurance rate.

Life insurance is a long-term proposition, so you should pay particular attention, at time of purchase and throughout the life of the policy, to the financial stability ratings of your life insurance company. Ratings indicate a company’s ability to pay claims.

Assessing your life insurance needs

The first step in life insurance planning is to analyze your life insurance needs – meaning the economic needs of dependents left behind. A great way to determine your coverage needs is to use an online calculator like Insure.com’s Life Insurance Needs Estimator Tool.

• Before purchasing a life insurance policy, consider your financial situation and the standard of living you want to maintain for your dependents or survivors. For example, who will be responsible for your final medical bills and funeral costs? Would your family have to relocate or otherwise change their standard of living after losing your income? The assumption of immediate death is necessary to determine the current life insurance needs for a family or individual.

• Add in the longer term financial needs of the remaining family members, such as: children’s expenses, income for the surviving spouse, mortgage and other debt payoffs, college education funds and an additional emergency fund.

Because life insurance needs change over time, your life insurance amount should be reevaluated periodically. We recommend a review at least once every five years or whenever you experience a major life event such as a change in income or assets, marriage, divorce, the birth or adoption of a child, or a major purchase such as a house or business.

In theory, you should have a declining need for life insurance as you age because fewer people remain dependent upon you for income support. Exceptions would be protecting a business entity or paying taxes on a large estate for heirs. If the purpose of buying life insurance is to pay estate taxes, then you’ll need permanent life insurance, which is in-force as long as you live and pay premiums.

Policy choices

Life insurance policies are divided into two main types:

• Term life insurance, which provides only death protection without any side funds or “cash values” (offering the least expensive cost per $1,000 of death coverage purchased).
• Permanent life insurance, which has “cash value” accounts in which a return-on-investment component becomes an often complex and expensive part of the policy (most expensive cost per $1,000 of coverage).

Term life insurance

The simplest of all life insurance to understand and the cheapest to buy: Term life insurance provides death benefit protection without any savings, investment or “cash value” components for the term of the coverage period.

Term life insurance is available for set periods of time such as 10, 15, 25 or 30 years. With “annual renewable term life,” your policy automatically renews each year and premiums increase as you get older. Choose “level term insurance” if you want your premium to stay the same for the duration of the policy. Also available is “decreasing term insurance,” where premiums remain level but your death benefit declines over time. This is good if you want to cover only a specific debt that decreases, such as a mortgage or business loan.

As long as you pay your premiums, the company cannot cancel you.

Term life insurance is a popular choice because of the long rate-guarantee periods and because of the ability to get a low cost life insurance policy. However, if you get to the end of your policy term and still need life insurance, you’ll need to shop for a new policy, which will then be priced based on your older age and health status.

Choosing an initial rate-guarantee period is easy: Match the period of time your dependents need your income to the available rate-guarantee periods. For example, if your children are young and you have decades to go on your mortgage, try 30-year term life. If your children are leaving the nest and your home is paid off or nearly paid off, 10-year term might fit the bill.

Other policy provisions that drive the popularity of term life insurance are guaranteed renewal and guaranteed convertibility.

• Guaranteed Renewal. Before you buy a term life policy, ask the agent or company to confirm to you that the policy contains a guaranteed renewable option, which grants you the right to continue coverage beyond the initial rate-guarantee period without a medical exam. This feature, found in most term life policies sold today, is extremely important should you become sick and uninsurable toward the end of your rate-guarantee period.

For example, say that you’ve been paying $800 per year on a $500,000, 20-year level term life policy and develop cancer near the end of the 20-year period, thus making you uninsurable. Assuming that you want to continue the coverage, a guaranteed renewable clause would allow you to continue the coverage beyond 20 years on an annual renewable basis without an exam, albeit at a much higher annual premium of, say, $8,000 in year 21, $11,000 in year 22, and so on.

You may have sticker shock right now but these premiums don’t look so high when you are very sick and uninsurable but still in need of coverage.

• Guaranteed Convertible. Another built-in feature of most term life policies is the right to convert your coverage to any cash value policy that the company might offer at current rates without having to take another physical exam. This feature may be of use in the future if you decide you want cash value life insurance.

If you’d like term insurance to cover you for a certain period of time but you’re confident you’ll outlive the policy, consider a “return of premium” (ROP) term life insurance policy. Under this type of policy, if no death benefit has been paid by the end of your insurance term, you receive all your premiums back (tax-free). Return of premium term life insurance generally costs 50 to 150 percent more than a comparable term policy but it provides a way to hedge your bets no matter what happens.

Term life insurance is widely available on the Internet, from direct-to-consumer life insurance companies and from insurance agents and brokers.

Cash value life insurance

If you want more than a death benefit from your life insurance policy and like the idea of a long-term savings account (not insured by any federal agency) or stock market investment, you might consider cash value life insurance such as whole life, universal life or variable life. But be prepared to pay much higher premiums per $1,000 of coverage precisely because you are now funding a cash value account and paying fees and expenses.

In many cash value policies, the annual premium does not increase from year to year. Universal life policies allow you to fluctuate or even skip premium payments, which in turn adjusts your death benefit amounts.

Unlike term life insurance, which is easily compared online, cash value insurance is often marketed by agents and brokers in a face-to-face setting, where needs and strategies can be discussed.

Because of the complexity and dizzying array of possible outcomes for permanent life insurance, regulators insist that cash value insurance be sold using pre-approved illustration formats. These illustrations can run to 15 or more pages. Cash value life insurance illustrations are divided into two major sections: guaranteed values and projected or “illustrated, non-guaranteed” amounts. Illustrations can be complex and hard to compare in an apples-to-apples way.

Pay particular attention to the guaranteed death benefit and premium-payment sections because these columns contain the actual company promises. If you don’t like what you see there, walk away.

Another caveat: Many cash value policies contain harsh penalties for surrendering the policies in the early years. Changing your mind within the first few years is an expensive decision.

Whole life insurance

Ordinary whole life insurance offers “permanent protection” with a cash value account that grows over time. Whole life provides a level death benefit and level premiums throughout your life and for as long as you continue to pay the premiums. For example, a healthy 40 year-old female might pay $4,200 per year for a $500,000 whole life policy. The premium remains level at $4,200 per year for the rest of her life and, in the event of death at any age, the policy will pay $500,000 to her beneficiary.

Whole life also contains a cash value account that builds over time, slowly at first and gaining steam after several years. You can withdraw your cash value or take out a loan against it, but remember, if you die before you pay back the loan, the death benefit paid to your beneficiaries will be reduced. For example: Susan has a $500,000 whole life policy in force and, over the years, has borrowed continually from the cash value. Her total loan amount and accrued interest totals $300,000. When Susan dies, her beneficiary will receive $200,000 because the life insurance company will first pay itself back from the death benefit.

Understand what your beneficiaries will receive upon your death. If you have a traditional whole life policy, your beneficiaries receive only the death benefit no matter how much cash value you’ve built up. Other payout options available for higher premiums are:

• Death benefit plus cash value
• Death benefit plus return of premium

Whole life policies can be issued as “participating” or “nonparticipating.” Participating policies typically cost more but may return annual dividends if the insurer has a good financial year. Dividends are never guaranteed. Nonparticipating whole life insurance offers no dividends.

Buyers of whole life insurance like the certainty of fixed premiums with a known death benefit for life. They also appreciate the “forced savings” component and watching their cash value account build up.

Universal life insurance

This kind of policy offers greater flexibility than whole or term life. Universal life has many moving parts to understand before you buy.

After your initial premium payment, you can reduce or increase the amount of your death benefit. Also, after your initial payment, you can pay premiums any time and in any amount, as long as you don’t miss a minimum payment level. In some cases, there are limits to how much extra you can pay in advance. If you choose to increase your death benefit, you may have to provide medical proof that your health has not deteriorated.

You will need to manage these policies to maintain sufficient funding, especially because the insurance company can increase charges.

Some new universal life policies perform like term life insurance: They can be configured at the time of purchase to provide both level death benefits and level premiums that are guaranteed for life as long as you pay the scheduled premium.

Variable life insurance

Variable life offers a death benefit with a side fund that operates like an investment account. It shifts the uncertainties of investment gains and losses to the policyholder.

The insurance company invests your premiums and offers you a choice of funds in which your money will be invested. Returns are not guaranteed. The amount of money your beneficiaries will receive and the cash value of your policy depend on how well the underlying accounts perform. Theoretically, the cash value can go down to zero and, if so, the policy will terminate. Some variable life policies will guarantee a minimum death benefit.

Other permanent life insurance considerations

When your cash value account grows large enough, it can be used by the insurer to pay your premiums for the rest of your life. This is known as being “paid up.” You can still withdraw your cash value, but you’ll have to resume premium payments to keep the policy in force or settle for a reduced benefit that the remaining cash value can support. Your policy illustration will show you how long it may take for your whole life policy to be “paid up.”

If you no longer want your whole life policy, you can surrender it to receive the current cash surrender value or convert it into an annuity, but keep in mind that cashing in a permanent policy after only a couple of years is an expensive way to get insurance protection for a short time.

Riders add benefits

You can add riders to your life insurance policy that guard against a number of unpleasant situations. Your insurer will have its own list of available riders, but here are a few:

• Accelerated death benefit rider (aka living benefits rider): Pays the benefit early if you become terminally ill.
• Accidental death benefit rider: Pays an extra benefit if you die as the result of an accident.
• Long term care rider: Pays for long term care expenses should you not be able to do some of the “activities of daily living,” such as dressing or toileting.
• Waiver of premium rider: Waives premium payments should you become totally disabled.

How life insurance is priced

Your life insurance rate is based on your life expectancy, the face amount you request and the length of the policy, whether it’s the duration of your life (whole life) or a specific period (term life). Obtaining a low cost life insurance policy depends, in large part, on your current and past health.

Because your current and past health conditions impact your life expectancy, insurers want to know as much as possible about your health condition. Common conditions such as high blood pressure, heart disease, obesity, cancer and depression can all raise your life insurance rate or even result in a declination.

Based on your medical history, you’ll be grouped into a category such as “preferred plus,” “preferred,” “standard” and “substandard.” Your category ultimately determines your premiums.

Insurance buyers with severe health conditions or a combination of conditions can find it hard or impossible to find life insurance. They are known as “impaired risks.” Local agents may not be experienced enough to find a company that specializes in insuring people with certain medical conditions. Fortunately, impaired-risk specialists have expertise in knowing where to direct applications for folks with medical conditions.

The life insurance buying process

The life insurance applications process is paper-intensive, can take weeks and often seems intrusive for people who value their privacy. A face-to-face paramedical examination is generally required for policies in excess of $100,000, which means, at minimum, giving of both blood and urine samples to the paramedical professional.

Expect questions in detail regarding your lifestyle, intended foreign travel destinations, your family health history and your personal health history. Do you intend to scuba dive? Have you had parents or siblings with heart disease or cancer before age 60? Have you ever taken any medicine for anxiety or depression? These, and more, are the kinds of questions to expect.

Sometimes multiple interviews are required in order to verify your information. The paramed examiner typically asks these questions face-to-face and often insurance companies will conduct follow-up telephone interviews so that you can verify the first set of answers. Regardless of the type of life insurance you buy, most policies require you to meet certain guidelines regarding your lifestyle and health history.

If it sounds tempting to shortcut this process by fudging on an answer or withholding information, don’t do it. It’s a crime in all 50 states to lie about or conceal information on a life insurance application. Besides, policies obtained through fraud can be voided at claim time.

Insurers will likely report your medical exam results (reported as numbered codes) to the Medical Information Bureau (MIB), which maintains a database of those who have applied for life insurance in the last seven years. If you’ve given different answers to medical questions in the past, it will raise a red flag with the MIB. The goal of the MIB database is to reduce fraud.

All standard life insurance policies generally cover death by any cause at any time in any place, except for death by suicide within the first two policy years (one year in some states).

If you don’t care to go through the underwriting process, you have two other, more expensive, options:

• Simplified issue life insurance can be purchased after answering only a few medical questions. There is no medical exam required. However, if you report health problems, you will likely be declined. Also, if you are healthy, or even if you have some negative medical history, an underwritten policy is still going to be your least expensive.
• Guaranteed issue life insurance is sold to anyone who applies (up to an age limit) and is by far the most expensive way to purchase life insurance. This should be considered only by those who are declined for everything else but still need life insurance. These policies have graded death benefits, meaning your beneficiaries won’t receive the full death benefit until several years into the policy.

In naming a beneficiary, keep in mind that the life insurance company will want to see only the names of those who are financially dependent upon you. An acquaintance, friend or relative, absent of a financial relationship, will not do.

Working with an agent

After reviewing the various life insurance policies available, you might still be unsure about which best meets your needs. The American Council of Life Insurers (ACLI) recommends consulting an insurance agent. ACLI spokesman Jack Dolan says an agent can recommend policies that will meet your needs. “Look at the recommended policy with care to be sure it fits your personal goals,” Dolan says.

Carefully study your agent’s recommendations and ask for a point-by-point explanation. Make sure the agent explains items you don’t understand. Because your policy is a legal document, it is important that you know what it provides.

Insure.com offers these recommendations for deciding which type of life insurance to purchase:

If your agent recommends a term life policy, ask:

• What is the Standard & Poor’s, A.M. Best, Fitch, Moody’s and Weiss ratings of this insurance company?
• What is the initial rate-guarantee period? Is this policy renewable past the initial rate-guarantee period without a physical exam? If so, what are the premiums?
• Is this policy convertible to permanent insurance without a physical exam? If so, for what period of time do I have the right to convert?

If your agent recommends a cash value policy, ask:

• What is the Standard & Poor’s, A.M. Best, Fitch, Moody’s and Weiss ratings of this insurance company?
• Can you tell me, in writing, why you are recommending cash value insurance for me at this time?
• Why should I combine my life insurance protection needs with my investment objectives?
• Can you please prepare an analysis for me that shows the true cost of this cash value insurance policy over 5, 10, 15, 20, 25 and 30 years vs. buying term life and investing the difference in long term bonds over those same time periods?
• How much is your first-year commission on this proposed cash value policy vs. your commission on an equivalent term life insurance policy?
• Are these proposed annual premiums within my budget?
• Why do you think that I can commit to paying these premiums over the long term, perhaps decades?
• How much will I receive if I surrender the policy?

Additional Resources

• Consumer Federation of America’s Insurance “Rate of Return” Service
• Insurance Information Institute: Learn about life insurance
• Your state’s department of insurance may also have life insurance buying guides online
• For a free life insurance quote or more information on the types of life insurance available, please visit Insure.com.

Amy Danise is a staff writer for Insure.com. Visit Insure.com for a comprehensive array of comparative auto, life and health quotes, including a vast library of originally authored insurance articles and decision-making tools that are not available from any other single source. Insure.com is dedicated to providing impartial insurance information to consumers. Visitors can obtain instant quotes from more than 200 leading insurers, achieve maximum savings and have the freedom to buy from any company shown.

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Obtaining a term life insurance policy without having to take a medical exam is an attainable goal. There are plenty of options available to you regarding no medical term life insurance; all it takes is knowing exactly where to look. Life is the most sacred thing we have, as well as being the most important to the loved ones around us. Commercial term life insurance companies offer several different kinds of term life insurance products in an attempt to better subsidize the loss of life or the life of a loved one. However, there is a wide variety of insurance plans available, so therefore, a number of different requirements involved. Because of this however, the recent trend in no medical life insurance has become an even better option worth pursuing.

Term life insurance plans have always been a feasible way of securing the financial stability of your loved ones for the future. Purchasing no medical term life insurance may appear to be an expensive prospect in the beginning, but buying this type of term life insurance is probably one of the most important and most practical investments that you will ever make in your entire life. Not only are you protecting your loved ones by purchasing a no medical life insurance policy, but you are also creating peace of mind for yourself.

Types of No Medical Life Insurance

There are two main types of no medical life insurance: no medical whole life insurance, and no medical term life insurance. Term life insurance tends to be more economical when it comes to premium rates, because it only covers a particular period of time, but people still tend to opt for this type of coverage. Term life insurance is considered a better option as it can present a much more comprehensive form of coverage without forcing you to give up other options in the process. What term life insurance does, is allow the policyholder to make small payments toward the insurance policy, rather than the larger payments required by other life insurance companies. In times of crisis, it’s a much more economical to pay into term life insurance as a much more appropriate investment.

No Medical Term Life Insurance

Many term life insurance plans typically require that you undergo a thorough medical examination before your coverage kicks in, to safeguard the investment being made by the insurance company. It is actually a well-known fact that anyone who is in poor health is going to try to pursue term life insurance as a method of obtaining life insurance. Insurance companies want to avoid clients who they will obviously have to reimburse, which is why they tend to require medical examinations for anyone who is purchasing a policy. This is why no medical term life insurance is becoming so popular!

Medical examinations protect both the insurance company, and the policyholder. This is because an insurance company can better tailor your insurance benefits based on your medical needs. However, because many people view medical examinations for insurance purposes to be cumbersome and unnecessary, opting for a no medical life insurance policy is an excellent option to pursue. There are many companies out there that offer term life insurance without requiring a medical test, all it takes is learning how to find them. The first step in locating these insurance companies is to do your homework by searching online, asking around and even checking your local area through the phone book or referrals. The second step in the process involves shopping around and comparing all of your options for no medical term life insurance before you select the right insurance provider.

Sharon Taylor is a professional writer for eQUOTE Life Insurance. eQUOTE is an excellent online resource providing online quotes with no medical life insurance to families in 42 states.

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Doesn’t it seem like most life insurance conversations are related to the motivation of the accused killer in a syndicated “Law and Order” episode? Yet life insurance is a critical concern deserving of your limited time. Given an unfortunate circumstance, missing just this one element of an otherwise solid financial plan can add financial ruin to the lives of your survivors.

What appear to be the natural complexities of life insurance prevent many of us from making a wise choice to purchase an appropriate type and amount of life insurance. But when you get down to it, life insurance can be boiled down into answering four relatively straightforward questions. Take one at a time and before long you’ll be checking life insurance off of your “to-do” list.

Question # 1: Do you need life insurance?

It’s completely possible to answer “no” to this question. Think about who will be harmed financially by your untimely demise. If it’s only your stylist, you don’t need life insurance. Don’t worry about Bruce; he’ll find other clients. But if you’ve got children, or have a significant other or parent who depends on your income, life insurance is critical.

It is not only those making an income who need to be insured. Even if you work full-time in the home and receive no salary, there is a tremendous financial cost to the survivors resulting from your early death. As you told your spouse during your last argument, it would cost big bucks to replace the childcare, cleaning, and personal chef responsibilities-in addition to everything else you do.

How would your surviving spouse be able to keep his job and perform all your responsibilities if you were gone? Quite likely, it would be impossible. It is life insurance on the homemaker spouse which would enable the surviving spouse to keep the job he has and afford to hire others to help with the tasks you formerly performed.

Question # 2: How much life insurance do you need?

The basic goal is to satisfy your family’s needs for a specific period of time after you are gone. For example, you might purchase enough insurance so that your husband would not have to work for the rest of the time your children were expected to live in the home. You might further choose to purchase enough to pay for your children’s expected college expenses. If you also purchased enough insurance so that your spouse would never have to work again and could afford to purchase the Yankees, you’ve probably purchased too much insurance. Take advantage of the tools available to assist you to estimate an appropriate amount of insurance to purchase at various web sites, including Total Candor: http://www.totalcandor.com/calculators/life.php

Question # 3: What kind of life insurance should you buy?

Although can’t tell you exactly what to do, I can provide you key considerations and inform you what to be most cautious of. With that information, you will probably know what makes the most sense for your situation.

Broadly speaking, there are two types of life insurance: whole life insurance and term life insurance. Whole life insurance is further divided into other types of policies with buzzwords such as universal, variable, and single premium. Whole life insurance features an investment component that salespeople love to talk about. It also pays a much higher sales commission, which is less likely to come up in conversation. While there are, of course, circumstances where whole life insurance policies make sense, most young families with limited budgets need to maximize their protection per dollar spent and a whole life insurance policy is typically not the best way to do so.

On the other hand, term insurance is the purest kind of insurance. You pay premiums for the specific length of time (the term) the policy covers. If you pay your premiums and you die during the term of the policy, your beneficiary receives the life insurance proceeds. If you do not die during the term of the policy, you get nothing. It’s quite simple.

Partly due to this simplicity, it is relatively easy to compare policies among the various companies selling term life insurance. There just aren’t as many numbers (especially when compared to the many variations of whole life insurance policies) to confuse you. Plus, you’ll see you can afford much more protection for the same dollar amount buying a term policy compared to a whole life policy.

Question # 4: Where do I buy life insurance?

Even if your employer offers you a life insurance benefit at work, you owe it to yourself to get a quote for a private policy. Especially if you are young, healthy, and a non-smoker, you’ll likely find that a privately purchased policy will be less expensive than the one offered to you at work.

In addition, life insurance you purchase privately does not depend on your continued employment at your current job. When you go to work for another company or take some time out of the workforce, you can keep your privately purchased life insurance. This advantage is known as portability. Life insurance purchased through your employer is typically not portable, since it is usually not available to you should you leave your job. In most cases, this is true regardless of the reason you leave: quit, layoff, or disability.

I know that talking about death isn’t fun. But failing to put life insurance in place is among the riskiest things you could do to your child. You’d never leave your son alone on a bridge. You’d never look the other way while with your daughter on a boat. Life insurance is much more that just the safety railing or the life raft. Life insurance is you looking after them, just in case, some day, you’re not.

Michael B. Rubin, CPA, CFP, MBA is the author of “Beyond Paycheck to Paycheck: A Conversation About Income, Wealth, and the Steps in Between” – http://www.paycheckbook.com

Michael is also the founder of Total Candor http://www.totalcandor.com a financial planning education company, which may be best explained by what it doesn’t do: sell financial products. Rather, Michael and Total Candor simply provide the unbiased financial education you wish you had already received.

As a true expert gifted in simplifying money matters, Michael has appeared in various media, including Fox News Chicago, radio stations across the country, and national media such as latimes.com, The Wall Street Journal, SmartMoney, Financial Advisor Magazine, and Investment News.

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Win – Win Financial Solution for Seniors!

A Life Insurance Settlement is the sales of a life insurance policy to a third party in exchange for a cash settlement in excess of the cash surrender value of policy – even if none exists! This is also called as Life settlement, Insurance settlement and also Senior settlement.

Typically, a Life insurance settlement or senior settlement is about three to five times the cash surrender value of the policy.

Life settlement: When an individual who does not have a terminal or chronic illness sells a policy for other reasons, including changed needs of dependents, wanting to reduce premiums, and cash for meeting expenses, that is known as a Life settlement.

Viatical settlement: When an individual with a terminal or chronic illness sells his or her life insurance policy that is known as a Viatical settlement.

Hitherto, elderly senior Americans with life insurance policies they do not need or cannot afford to keep up have had very little option. They will let the policies lapse or sell them back to their insurers. Now lots of them are glad to have an alternative, i.e. Life Insurance Settlement or Senior Settlement. Seniors may now be able to sell their policy for far more than the cash surrender value the insurance carrier would offer.

When you go for Life Insurance Settlement or Senior Settlement, the life insurance policy owner sells his or her contractual rights under the policy at its present market value in exchange for a lump sum cash payment, which payment exceeds the cash surrender value of the policy.

The purchaser of the policy will then become the new owner and the new beneficiary of the life insurance policy and is then responsible for making all of the future premium payments. The new owner now collects the full amount of the death benefit when the insured dies.

Life Insurance settlement or Senior settlement present a unique opportunity to the senior policy holder to extract the maximum possible value from an existing life insurance policy and repurpose those funds for whatever financial needs may exist.

Seniors can use the money received from Life Insurance Settlement or Senior Settlement, to purchase new insurance, travel the world, start a business, buy a property or fulfill their dreams. The money is theirs to simply enjoy and use it for any reason they can think of. In fact, seniors can use the cash settlement for medical expenses, living expenses, or anything they desire-with no restrictions.

There are various reasons why seniors sell their life insurance policy and opt for Life Insurance Settlement or Senior Settlement. Why Sell Your Life Insurance Policy?

1. If you are chronically ill, selling your current life insurance policy provides needed funds to cover financial burdens caused by your illness. A viatical settlement gives you the ability to regain needed financial security.

2. If you are over the age of sixty-five, a life insurance settlement or senior settlement maximizes your current assets by eliminating premiums and getting funds that can be used today.

3. Pay off debts.

4. Make funds available for other investments.

5. Turn a lapse insurance policy into cash with Life settlement.

6. Pay your medical care bills.

7. Finance your retirement.

8. If you are a corporation, selling corporate owned life insurance lets you regain back premiums paid on no longer needed policies.

9. If you are a non profit organization, selling a gifted life insurance policy provides funds that can be used now and also eliminates premiums.

10. If you managing an estate, selling your current life insurance policy will help manage changes in estate size, eliminate premiums, and liquidate policies that no longer are needed.

What Insurance Policies Qualify for Life Insurance Settlements?

To find out whether you qualify, here are some of the requirements.

(A) Must be at least 65 years of age

(B) The face value of the policy is at least $50,000

(C) The insured has experienced deterioration in health since the insurance policy was issued; life expectancy is under 15 years

(D) The insurance policy is in effect beyond the two year contestable period

(E) You Are Over 21 with a Life-Threatening Illness – Viatical Settlement

But any policy owner, including individuals, corporations, charities or trusts, may sell any life insurance policy, including group and term policies.

What types of polices are purchased?

1. Government issued policies

2. Term Life

3. Universal Life

4. Survivorship policies

5. Many Group types of policies

6. Corporate Owned Life Insurance

7. Whole Life

8. Basically All Types of Life Insurance Policies

The life insurance settlement value could be potentially much higher than the cash settlement of your life insurance policy. Do not continue to pay expensive premiums for coverage you no longer need, and do not surrender the policy or let it lapse. The Life insurance settlement, Senior settlement or Viatical settlement solution is typically the Win-Win scenario that you have been looking for.

About the Author: Paul Sherman is a Cash Flow Consultant. He offers free, professional and independent advice to Individuals, Business owners and Seniors regarding Life Settlements, Structured Settlements & Lawsuit funding. To secure your Life Insurance Settlement or Structured Settlement funding please visit http://www.Financial-Ease.com

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It is unfortunate that when you get a whole life insurance quote online much of the important details are omitted. The average person knows little or nothing about this policy. If people had more information they could make a more informed decision on what they are about to purchase. I am one of those who tout whole life insurance with no apology, as this policy has it’s place in the insurance portfolio of many people. This policy fits some needs that term life insurance simply cannot fulfill.

Permanent Life Insurance

Whole life insurance can be described as permanent life insurance. This suggests that you can keep this policy for as long as you choose, even if it is to age 100. A term life policy simply cannot guarantee that.

Cash Values

Whole life insurance have what is called “guaranteed cash values”. Some people like this idea because they may choose to use these values as a sort of saving to assist with the college costs or even for a supplemental retirement fund.

Whole Life Insurance Dividends

All whole life policies are not the same. Some life insurance companies have a great history of paying dividends to their policy owners on a very regular basis. This does not say that they always will be in a position to pay a dividend. Dividends are not guaranteed. There are some life insurance companies that do not perform very well.

If a life insurance company is generally successful with their investments and do a good job at keeping expenses down they usually can pay a dividend.

There are several options that you can choose from but most people have a tendency to apply their dividends to the purchase of “paid up additions”. These are little single premium whole life insurance policies.

The other available dividend options areas follows. You can leave your dividends to accumulate interest or you can use them to reduce premiums. You can also take them in cash each year.

Why Cash Values And Dividends Are Important

If at some time in the future you should need to put your hands on some emergency cash and that money is available through your cash values plus dividends you may take a percentage of this in the form of a policy loan. Even though you decide how you repay this loan you need to keep in mind that there is interest charged on this loan. In addition the death benefit of your policy is reduced by the amount owed and any unpaid accumulated interest. Another thing to note is that if you have an outstanding loan on your whole life insurance policy the amount of dividend paid will also be affected.

Nonforfeiture Values

Another important consideration when buying whole life insurance policies are nonforfeiture values. These options allow you to protect yourself from loss in the event you are unable to continue premium payments.

Automatic Premium Loans

With most whole life insurance policies if a premium payment is missed the automatic premium loan is timely activated to prevent the policy from going into a state of lapse. In other words, you do not lose your insurance as long as there is sufficient cash value to keep it in force. Interest is charged on this amount just like any other premium loan.

Extended Term Insurance

Instead of using an automatic premium loan to keep your whole life insurance policy in force you may choose to use what is called Extended Term Insurance to keep the policy in force. This is a Term Life Insurance policy for as many years as the cash value of the policy will purchase. If you should die during this period the full face amount of the policy will be paid to your chosen beneficiary. The only disadvantage is that with this option your cash values plus any dividend earned will dissipate over time.

Reduced Paid Up Policy

Another option you have if you are unable to pay the premiums for your policy is to elect to keep a reduced amount of life insurance in force rather than the full amount you initially purchased. This policy, though for a reduced amount, will be fully paid up and you will never pay a premium again. The reduced death benefit will be paid upon the death of the insured.

Cash Surrender Value

You may also surrender your policy for its cash value plus any dividends as another option. If there is any outstanding indebtedness on the policy it will be deducted from the amount you receive.

Waiver Of Premium Rider

When purchasing your whole life insurance policy you have the option of adding the “waiver of premium rider” an a very minimal cost. You may find it beneficial as if you should become disabled the life insurance company will waive your premiums for as long as you are disabled even if it is for the rest of your life. You must, however, be disabled for a minimal period of time, usually six months. Whenever you are able to return to your job you continue payments of your policy. Nothing is owed for the period you didn’t pay.

Accidental Death Benefit

Another valuable rider you can add to your whole life insurance policy is the “accidental death benefit rider”. If you should die in an accident the life insurance company will pay twice the face amount to your beneficiaries. Some life insurance companies allow you to purchase an additional unit of the accidental death benefit rider. In other words, your family would receive three times the face amount of your whole life insurance policy if you died in an accident.

Whole life insurance premiums are higher than term life insurance premiums. If you feel the abovementioned benefits are worth the additional cost this type of life insurance may be for you.

For additional information information on whole life insurance go to:

http://www.lifeinsurancehub.net/whole-life-insurance.html

For more than 40 years Donald has been known for his extensive knowledge of the life insurance business. He has represented some of the largest and most admired life insurance companies in the United States as well as Canada. His advice is invaluable.

Donald’s website is: http://www.lifeinsurancehub.net

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Here are the top four life insurances listed from most expensive to the least expensive.

Universal life insurance

Whole life insurance

Return of Premium life insurance (R.O.P.)

and least expensive of all – Standard Term life insurance

The least expensive may sound good but it may not necessarily be the best insurance for you and your family. A lot of people may have different policies. Two or even three. Each one covering a specific need.

Okay, let’s get to these important tips that could save you money when shopping for life insurance.

Buy life insurance while you’re young.

The younger you are when you purchase a life insurance policy the better. Your rates will be much lower. Buying life insurance for your children when they are young will keep their premiums low for the rest of their lives. Up to 10 times lower!

Find a life insurance policy that meets all your needs.

In other words, a policy that is’ tailor-made’ just for you and your family. Everyone has different needs.

You have a home with a 30 year mortgage that you would want to protect with a 30 year policy. You are 30 to 40 years of age. You should consider a small Whole life insurance policy with an additional 20 year Term life policy. Perhaps you are close to retirement. A 10 year Term life insurance policy may be right for you.

If you are a smoker, you want to consider a short term life insurance policy. (Just quit smoking!! Get a new policy! Many policies are much cheaper for a non-smoker. You will not only get healthier, but think of the money you’ll be saving! Not just on your premiums, but on all that you spend on tobacco!! )

How much life insurance should you purchase to meet your needs and the needs of your family?

First, you need to sit down and figure out what your needs are and the needs of your family.

You need to be prepared when dealing with insurance companies. Their goal is to make money off you. They will do their very best to try and sell you more coverage than you really need. Only purchase enough coverage that will take care of your family if something should happen to you. Such as, burial expenses, out-standing debts, mortgage, etc. Enough insurance for them to live on in a way they have become accustom to. (Note: An average standard is 10 times your yearly gross income plus any large debts you may have.)

The reason one should need to purchase more life insurance than needed is if you are leaving behind a large estate. This would be to keep the assets of your estate from being taxed.

If an insurance company is trying to push you to buy more coverage than you need, move on to another insurance company! There is no trick to buying life insurance. It’s not only fast and easy; It’s free on the internet! You can get many different quotes from many different insurance companies in no time at all and save you a lot of money.

Save money by matching the right insurance company to your lifestyle
Let’s say that you have a high risk occupation. Such as an airplane pilot or construction worker. Or perhaps you have a high risk hobby. Such as jumping out of an airplane rather then piloting one. Insurance companies are well aware that they are taking a big. Therefore, they will charge you much higher rates figuring that you may not be paying them premiums as long as they had planned on.

The insurance companies will still insure ‘high risk’ people. But the amount of those individuals is limited. Example: An insurance company, let’s say, has a limit of 10,000 policies that they will issue to a ‘high risk’ individual. Each individual pays $1,000 per year for their policy. Now, after the insurance company reaches their limit of 10,000 policy holders, a ‘new’ high risk individual, (#10,001), is going to pay double for that exact same policy. Why? Because insurance companies are NOT going to exceed that limit and put their assets at risk. They need to compensate by charging higher rates to everyone over that limit.

Take notice of fluctuating rates as your insurance policy increases
Some insurance companies are willing to give you a bit of a price break when you increase the amount of your coverage. It is possible to get a $300,000 policy from one insurance company for less than a $275,000 from another insurance company, even if both insurance companies charge the exact same price for that $275,000 policy.

It really pays to check both above and below the coverage you are looking at. You may be surprised at what you might find when you compare.

Are you paying too much for life insurance through you place of employment?
Chances are, yes! You see your employer and the insurance company work together to agree on one set ‘group’ rate. Meaning, all employees’ pays the same price for their life insurance policy. They are going to figure in the number of ‘healthy’ and ‘unhealthy’ employee’s. Now, we already know that a person who is unhealthy will pay more.

Not the case through work. Everyone pays the same rate. The ‘group’ rate’. Therefore, if you are one of the ‘healthy’ employee’s, chances are, you are pay too much because you are paying a portion of the ‘unhealthy’ employee’s premium payment.

Let’s say that in a normal situation, an insurance companies rate would be $50 per week for a healthy person and $100 per week for an unhealthy person. In a ‘group’ rate situation, a set rate would be $75 per week for everyone. Every employee whether healthy or not.

That means that a healthy employee is getting an extra $25 per week taken out of their paycheck to help pay for a portion of the ‘unhealthy’ employee’s premiums.

If this is your case, the wise thing to do, if you are one of the ‘healthy’ employee’s, is to take that $75 per week out of your paycheck yourself and invest it in a life insurance policy that is tailor-made just for you. You would now be in control. You must also keep in mind that if you should ever leave this job, or retire, most likely you would lose any life insurance benefits you had through the company. By investing in your own policy, (and as long as you pay your premiums,) you would never be in fear of losing a policy that you may have paid many, many years in to.

You may save money by paying your premium payments annually.

By making annual premium payments, your life insurance company may give you a discount rate. After all, they are saving money with less labor and less paper work compared to those who pay monthly. If annual payments won’t work for you, ask the insurance company if they will offer a discount on your monthly premium if you pay by credit card. Many insurance companies don’t just willingly offer a discount. So don’t be afraid to ask!

Watch out for “Age Nearest” in your policy

When an insurance company raises your rates as you get older, these increases may not occur on your birthday as most would assume. The fact is, most insurance companies will raise the rates of your policy six months prior to your birthday. They call this ‘Age Nearest’. This could end up costing you a lot of money over the length of your policy. Make sure that you ask your insurance company ‘how’ and ‘when’ they increase their rates.

When to reevaluate your life insurance policy

There are several reasons for reevaluating your life insurance policy every year or so. Insurance rates are dropping, mainly because the internet has made it so easy for everyone to get life insurance quotes. This is resulting in a fierce competition between insurance companies. People are also living longer these days. That means longer policies for the insurance companies and longer premium payments.

It is possible to double your existing policy without paying any more than you are now. Anytime there is a substantial change in your life, you need to reevaluate your life insurance policy. You could be paying for coverage that you no longer need such as, your mortgage, your debts, or you no longer have dependants living at home.

Or, You may need to increase your coverage because, you had a child or purchased a new home. Very, very few insurance companies will ask you on a yearly basis if there are any major changes in your life. You need to inform them and ask them to reevaluate your policy. You can get a cheap life insurance quote but you have to ask and compare.

Please visit our web site for free in-depth information on a term life insurance quote You can also read free information on a whole life insurance quote or universal life insurance quotes. We will help you decide what’s best for you and your family.

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Basically, all life insurance policies are either term insurance or whole life insurance, or a combination of the two. However, there are many different forms or variations of life insurance policies.

With universal life insurance, you are able adjust the premium and the policy to the amount you think you need.

For a person who wants to have control of the financial and investing aspect of their insurance policy, their option will be a variable life insurance policy.

So, What Is A Term Life Insurance Policy?

As the name suggests, a term life insurance policy provides insurance protection for a precise period of time, such as 5, 10, or 20 years. At the end of the term period, the policy expires with no accumulated cash value, and no benefits are payable. The death benefit is only paid if you die during the term period. Term insurance policy can also be defined as “insurance that is actuarially designed to expire before you do.”

Although the premiums on term insurance are generally low, they increase substantially as your age increases. Due to this reason, a term life insurance policy is the most economical when purchased at a younger age and when the term is longer. Although the short term renewable policies would initially be less expensive, the premiums start to increase significantly after middle age.

As an illustration, in an annual renewable term insurance policy with a $200,000 death benefit, the annual premiums might look something like the example below. Remember, these are just examples to show the difference of cost with age.

$300 / year age 35

$900 / year age 50

$2,500 / year age 65

What Is A Whole Life Insurance Policy?

Whole life insurance is the most common type of life insurance sold. A whole life insurance policy remains in force until you either die or reach age 100, as long as you pay the premium as scheduled. Whole life insurance is also known as ordinary life, or permanent insurance. The main characteristics of a whole life insurance policy are level premiums, level face amounts, guaranteed values, and a relatively high degree of safety. Whole life insurance builds a living benefit through its guaranteed cash value. This enables the policy owner to access this cash for emergencies, as a supplemental source of retirement income or for any other needs.

Another important feature of whole life insurance is that it includes both insurance and a savings aspect. Whole life insurances are often used for long term financial planning. The policy’s other positive feature is the level premiums. So basically you always know what the cost of insurance will be, and you never need to be worried about your monthly premiums going up, thus giving you some peace of mind.

The risk factor of a whole life insurance policy and company is much different than it is for something like an auto policy. When an insurance company issues an auto policy, it hopes that the policy holder will be a safe driver and will never be in an accident. On the other hand, when an insurance company issues a whole life insurance policy, it knows it will someday be called upon to pay the claim.

It is now very easy and convenient to shop around and compare the many different companies and policies online. This will ensure that you get the best premium that meets your needs. It is worth it to take time to get several life insurance quotes and check to see how they are rated with the BBB. It’s important to look into the financial standings of the insurance companies you are considering before you sign up for any type of life insurance policy. If you do your part of getting all the necessary information, you will easily get the best whole life insurance policy online.

Dean Shainin offers free online life insurance quotes. For more information, articles, news, tools and valuable resources on life insurance, visit this site: http://life-insurance.deans-knowledgebase.com

Get free valuable online tips for saving money from his: Life Insurance Policy website.

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While many of us understand the basic functions of our life insurance policies, it’s not uncommon for questions to arise long after you purchased the policy.

To help address your policy problems, we’ll answer four of the most common life insurance questions to help you gain understanding and control of your life insurance policy.

Questions Answered

How do I file a life insurance claim?

To begin the claim process, you’ll need to obtain a couple copies of the policyholder’s death certificate. If you have trouble obtaining copies of the death certificate from the hospital or coroner’s office, your funeral director should be able to get you a copy.

Next, you’ll need to contact your life insurance agent. Your agent will help you complete the necessary paperwork to file the claim. If you’re not sure who the insured’s agent was, you can contact the insurance company directly and someone will help you file the claim. Remember to bring a copy of the death certificate for your agent as it will be needed to ensure quick claim submittal.

How will I receive the death benefit?

Once the life insurance claim is submitted, you’ll need to choose how the life insurance proceeds will be allocated.

According to the Insurance Information Institute (I.I.I.), there are generally four ways to distribute the death benefit:

Lump Sum. You receive the entire death benefit in one payment.

Specific interest provision. The insurance company pays you both principle and interest on a prearranged schedule.

Life income. You receive a guaranteed income for life. However, the amount you receive depends on the benefit amount, your gender and age at the insured’s time of death.

Interest income. The life insurance company holds the proceeds but pays you interest on the policy. Thus, the death benefit remains in tact and goes to a second beneficiary after you die.

No matter which option you choose, you should receive the proceeds from the policy within days of filing the claim. Life insurance companies are required by law to pay claims in this fashion. To learn about the guidelines under which your insurer must pay a claim, contact your state’s division of insurance.

What should I do if I can’t find the policy?

Unfortunately, there’s no database for purchased life insurance policies. That’s why it’s very important to know where the insured’s life insurance policy is at all times. Nonetheless, there are some things you can try to locate a lost policy.

You can start by trying to determine:

• Which company might have issued the policy
• Which agent may have issued the policy
• Whether the policyholder had life insurance through an employer, union or other group

The I.I.I. recommends trying to locate that information by:

Searching records, storage areas and safe deposit boxes. There you may find insurance-related documents, old checks, premium payment receipts or policy notices.

Contacting the policyholder’s legal and financial consultants. Previous and current consultants may have some information regarding the deceased’s life insurance.

Contacting the insured’s employer(s). Previous and/or current employers will be able to tell you if the policyholder had a group life insurance policy.

Checking tax returns. By checking past tax returns, you may find interest income from or paid to a life insurance company.

Checking the mail. Even if the policy was paid up, the insurance company will send an annual premium or dividend notice in regard to the policy.

Checking north of the border. If there’s a possibility that the policy was purchased in Canada, you can contact the Canadian Life and Health Insurance Association at (800) 268-8009, or visit them on the Web.

Probing the MIB database. While there’s no database for life insurance policyholders, there is a database for life insurance applicants. For $75, you can search the MIB database, and while it rarely pays off (MIB finds about one in five policies), it might be worth a shot.

If these tips still don’t result in the location of a lost policy, contact your own agent, lawyer or financial consultant as they may have additional recommendations.

What if I can’t pay my life insurance premiums?

Financial hardship can fall on anyone. If this happens to you and you can’t pay your life insurance premium, you should know what to expect.

Generally speaking, if you have a term life insurance policy, not paying your premiums will result in a lapsed policy, which means that the policy will automatically be cancelled and you probably won’t see any proceeds from the policy.

If you have a permanent life insurance policy, the I.I.I. says you’ll have some of the following options:

Cash out the policy. When you cash out, you’ll stop paying the premium and collect any available cash value. However, if the sum of the cash value is more than what you’ve paid in premiums, that cash may be taxed.

Non-forfeiture. A “reduced paid-up” option might be available to you, allowing you to stop paying premiums completely for a reduced death benefit and no cash savings. You may also be able to convert a permanent policy into an extended term policy.

Lapsed policy. If you choose to let your policy lapse, you may be able to get it reinstated. Some insurance companies allow you to do this if you do so within five years of lapsing. Reinstatement, however, may be contingent on your ability to pass a medical exam and pay back the premiums owed plus interest.

If you fall on hard times, be sure to contact your life insurance agent right away to work out an arrangement. Depending on your circumstances, it’s generally better not to let a permanent policy completely lapse as you may forfeit the cheap life insurance you had when you bought the policy.

Don’t Let Your Questions Go Unanswered!

If you have questions about your life insurance policy, it’s always a good idea to discuss them with an insurance agent. They can give you new, up-to-date and state-specific information about your life insurance policy so you won’t have any surprises down the line!

About InsureMe

Megan L. Mahan is a copywriter and insurance information expert with InsureMe in Englewood, Colorado. InsureMe links agents nationwide with consumers shopping for insurance. Specializing in auto, home, health, long-term care and life insurance quotes, the InsureMe network provides thousands of agents with insurance leads every year. For more information, visit InsureMe.com.

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When shopping for term life insurance, you want to find the right amount of insurance coverage at a reasonable price with a company you can trust. But for many people, getting started is the hardest part. That’s where the following Life Insurance Checklist can help.

1. What you would like your policy to achieve?

Ask yourself what it is you want your life insurance to do. For example, do you want to have insurance coverage that will:

• Pay funeral arrangements?

• Pay the outstanding balance owing on a mortgage and other debts?

• Offset the loss of your income? And if so, for how long?

• Contribute to the future education of your children?

• A combination of all or part of the above?

Knowing what you would like to accomplish with your life insurance policy and approximately how much you need to achieve these goals will help you determine how much life insurance you should consider purchasing. Online life insurance calculators are available to help you put a dollar value on the amount of coverage you need.

2. Who would you like to insure under the life insurance policy?

Most insurance companies offer a variety of life insurance products to suit your lifestyle and family needs. You can get an insurance policy on your own life, or you can get one policy for both you and your spouse (called a joint life insurance policy). The most common joint life policy provides coverage when the first partner dies, leaving the life insurance benefit to the surviving spouse.

3. How long will you need life insurance?

Consulting a psychic isn’t necessary, although it does require that you estimate the timing of your life insurance needs. For example:

• When will your mortgage be paid off? The amortization period of your mortgage will often determine how long your term life insurance policy should be.

• When will your children be finished school? One day they’ll finish their education and having enough life insurance coverage to pay their educational expenses won’t be necessary.

• When are you planning to retire? You will have less income to replace at that time.

Knowing how long you’ll need life insurance coverage before you begin shopping will ensure you’re comfortable with the life insurance product you end up purchasing. Online tools are available to help you figure out which term for your life insurance policy is most recommended for people with similar lifestyles.

So now that you’ve got the how much, who and how long questions answered, you’re ready to shop.

1. Compare life insurance quotes from multiple companies:

It pays to shop around because life insurance rates can vary considerably depending on the product you choose, your age, and the amount of coverage you request. This is the easy part, because with the Internet you can compare life insurance quotes easily, online, anytime.

2. Which life insurance rate has been quoted – standard or preferred?

There are two basic life insurance rate groups you should know about when shopping for life insurance coverage: standard rates and preferred. Standard life insurance rates are the rates the majority of Canadians qualify for, while about one third of the population is eligible for preferred rates.

Preferred life insurance rates are typically offered to very healthy people and means you may pay a smaller premium than most. Usually preferred rates are offered only once the results of the medical information and tests are known. It will depend on your blood pressure, cholesterol levels, height, weight, and family health history. But preferred rates are worth it. They could save you up to 30-35% off your quoted premium.

When comparing prices, make sure you’re comparing ‘standard to standard’ or ‘preferred to preferred’ life insurance rates. If you’re not sure, ask the broker. It would be disappointing to find out you were quoted preferred rates at the beginning, only to find out you don’t qualify for them later.

3. Review the life insurance broker’s availability:

How easily can you get a hold of the broker? What are their hours of operation? Whether it is through their website or telephone, the life insurance broker should be easily accessible to you should you ever have questions or need to speak to them about a change in your life insurance needs. Look for toll-free numbers and extended hours of service as guides.

4. Review the medical information required to obtain the policy:

Typically the more medical information you provide, the better the price. For a policy that asks few or no medical questions, you can bet the premium is higher for the same coverage then a plan asking for more information. Depending on the company, your age, and the amount of coverage you want, you could be asked to provide blood and urine samples. To obtain the samples, a nurse will visit at not cost to you.

5. Consider a life insurer’s financial stability and strength:

A company’s financial stability is something to consider if you are planning on making a long-term purchase like life insurance. There are organizations out there, like A.M. Best, that evaluate insurers and provide a rating on their stability and strength.

6. Ask about renewal options and requirements:

Once the initial premium is set, it is usually guaranteed for the length of the policy (often 10 or 20 years). But what happens when the policy expires? Most policies are renewable until you are 70 or 75 so don’t forget to ask your broker if you will have to take a medical to renew your policy. While your premiums will be higher on renewal, find out if they will also be guaranteed to remain level for the second term of the policy.

7. Confirm the policy can be cancelled without penalty:

Most term life insurance policies can be cancelled at any time without penalty. Make sure to check with your broker to see if the life insurance company has any unusual cancellation policies.

8. Consider the conversion options and restrictions for the policy:

As your life changes so do your life insurance needs and you may want the option to convert your coverage some day.

To convert a term life insurance policy means to transfer all, or part of, the death benefit of the policy into a permanent life policy without a medical. For example, say you originally bought a term policy to protect a mortgage and child. Once the mortgage is paid and the child grown, you might find it desirable to convert the policy into one that will give you a new level premium for the rest of your life, and a death benefit that is guaranteed not to expire as you age.

When you purchase your life insurance policy, find out if there are any limitations on your age at the time of conversion. In most cases, you have the option of converting up until you are 60 or 65. As well, ensure you are given several options of the type of policies you can move into, the more the better.

Final tip – choose a life insurance broker you trust:

While it doesn’t necessarily impact the type of policy you choose to purchase, a rapport with your broker is critical in feeling comfortable with the life insurance policy you buy and the information you’ve received.

For more information on life insurance, or to get quotes, kanetix.ca’s life insurance quote comparison service provides instant online quotes from some of Canada’s most recognized and trusted life insurance companies.

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http://EzineArticles.com/?Buying-Life-Insurance:-A-Shopping-Checklist&id=154157

One of the most important things you can do as parents is to ensure the financial welfare of your children in the event of your death. Life insurance is the best way to be rest assured that your children will be taken care of if you die. Although we never like to think of that kind of thing happening, but it does.

What is Life Insurance

Life insurance is a policy that you can enter with your insurance company, which promises a certain amount to your beneficiary(ies) in the event of your death. Usually, a spouse will name the other spouse as well as their children as beneficiaries of the policy. As part of the agreement with life insurance, your insurance policy will be a monetary value, that you will in return, pay a monthly premium for. Premiums usually depend on your age, gender, occupation, medical history and other factors.

There are other types of life insurance that may provide benefits for you and for your family while you are still living. These policies can accrue a cash value on a tax-deferred basis and can be used for future needs such as retirement or your child’s education.

Do I Need Life Insurance

Earning an income allows you and your family to do many things. It pays for your mortgage, buys cars, food, clothing, vacations and many other luxuries that you and your family enjoy. However, certain situations can cause you to lose your income, and those who depend on you also depend on your income. If any of the following statements about you and your family are true, then it is probably a good idea for you to consider life insurance.

1) You are married and have a spouse.

2) You have children who are dependent on you.

3) You have a parent or relative who is aging, or disable and depends on you.

4) You have a loved one in your life that you wish to provide for.

5) Your 401K retirement plan, pension and savings aren’t enough to insure your loved one’s future.

What Are My Life Insurance Options

There are four basic types of life insurance that can meet you and your family’s needs:

Term Life Insurance

This is the least expensive type of life insurance coverage, and at least at the beginning, the simplest. Term life insurance policies do not accrue cash value, and are fixed over an extended period of time – usually one to 0 years, and they can be renewed. This life insurance policy pays the beneficiary of your policy a fixed amount in the even that you die in the period of time that your policy includes. The premiums of term life insurance are lowest when you are young and increase as you get older

Whole Life Insurance

This type of life insurance is similar to term life insurance, as well as provides cash value. Over time, whole life insurance generally builds up a cash value on a tax-deferred basis, and some even pay it’s policy holders a dividend. This type of life insurance is popular, doe to the cash value that is accessible to you or your beneficiaries before you die. Used to supplement retirement funds, or to pay for your child’s education, whole life insurance should be used for protection, rather than for accumulation.

Universal Life Insurance

This type of life insurance is a flexible kind of plan. These policies accrue interest and allow the owner to adjust the death benefits and premiums to their current life situation. You decide the amount of premium for universal life insurance, and of you skip a payment, this will be deducted from your death benefit. Universal life insurance stays in effect as long as your cash value can cover the costs of the policy. These rates are subject to change, but they can never fall below the minimum rate that is guaranteed when you sign up for universal life insurance.

Variable Life Insurance

This type of life insurance is designed for people who want to tie the performance of their life insurance policy to that of the financial market. The policy holder gets to decide how the money should be invested, and your cash value has the opportunity to grow more rapidly. However, if the market is poor, your life insurance policy’s death benefit will be poor. As with whole life insurance and universal life insurance, you may withdraw against the cash value. Be reminded that withdrawals of this life insurance policy will be deducted from the cash value.

How Can I Save Money With Life Insurance

Below you will find some suggestions on ways to save money while purchasing the life insurance policy that is right for you.

1) If you don’t need life insurance, don’t buy it. Don’t buy more insurance that you actually need in order to provide financial security for your family.

2) Shop around for competitively-priced life insurance policies while you are healthy. Don’t smoke, or do anything that might increase your rates. Take care of yourself by exercising regularly and maintaining a moderate and healthy weight.

3) If you purchase a term life insurance policy, look for guaranteed and renewable policies. That way you won’t have to periodically continue to shop around for those life insurance policies.

4) You should only buy optional forms of coverage such as riders only if necessary.

5) Shop around and compare life insurance policy rates and coverage. There are thousands of life insurance companies to choose from. It is advised that you get at least three separate quotations of life insurance, and then decide which is the best for you.

Brian M. Gardner is the Founder of Financial-Articles.com – An Online Money Making Resource. Learn how to make money and acquire wealth by investing in stocks and mutual funds, as well as how to be successful in sales, marketing and advertising.

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