Many of us buy life insurance because we make sure our loved ones, mostly family members, remain financially secure if we want to die. Income replacement is the No. 1 reason why people buy life insurance.
Carers do not deserve an important - and often overlooked - the economic value that should be covered by life insurance.
Life insurance is purchased by all concerned to implement specific activities or transfer of immovable property Objectives.
There are many types of life insurance, depending on your goals, and there are huge price differences between different companies, with identical coverage areas. Guidelines are hundreds of life insurance in the United States are available. Most financial advisers recommend that each provider of family income of less than 10 times their annual income in life insurance lead.
Here's an orderly way is to go about shopping for life> Insurance:
1) Assess the necessary amount of life insurance ..
2) decide the type best suited for your political goals.
3) You can select companies from the ratings high standards of financial stability.
4) shop until you find the best price.
5) See the opportunity to evaluate the best insurance for life.
Life insurance is aLong-term rates, so you should pay particular attention to the time of purchase and for the duration of the policy, assessments of financial stability in your life. Evaluations show the ability of a company to pay claims.
Assess the need for life insurance
The first step in life insurance for your life insurance needs - in other words, the economic needs of members of analyzing left behind. A good way to determine yourCoverage of needs is a calculator online to use as Insure.com life insurance needs estimator tool they want.
Before purchasing a life insurance policy, consider your financial situation and standard of living is not considered dependents or survivors. For example, responsible for the final medical bills and funeral expenses? Want to relocate your family or otherwise change their standard of living after the loss of your income? TheAcceptance of immediate death is necessary to determine the current life insurance needs of a family or individual.
Add the long-term financial needs of other family members, such as: expenses for the children, the income for the surviving spouse, guides and other debt payments to finance higher education and a fund for emergency.
Why does he need life insurance over time, if your life insurance amount will be reassessedat regular intervals. We recommend a review at least once every five years or, if there is an important event in life, as a change in income or assets, marriage, divorce, birth or adoption of a child or a major purchase as a home or business.
In theory, you should have a reduced requirement for life insurance, and the age, because fewer people remain dependent on you for income support. Exceptions to protect a trade body or the payment of taxes on a large estate toHeirs. If the purpose is the purchase of life insurance to pay estate taxes in a permanent life insurance, which is necessary in force as long as you live and pay premiums.
Policy decisions
Life insurance policies are divided into two main groups:
Term life insurance, which provides only death protection without any side effects or money "cash value" (with the least expensive cost per $ 1,000 of coverage purchased) of death.
Permanent life insurance, money has a value "stories in which a return on the investment component is a complex and often expensive) part of politics (most expensive cost per $ 1,000 of coverage.
Term life insurance
To understand the simplest of all policies of life insurance and purchase the cheapest for: Term life insurance provides death protection with no savings, investments or "cash value" components for the duration ofthe period of coverage.
Term life insurance is for a certain period of time, such as 10, 15, 25 or 30 years. With the annual period to "automatically renew your policy each year and the increase in premiums as you get older . Insure term select the level "if you want to keep the premium for the same for the duration of the policy. There is also "declining term insurance, where premiums remain level, but decreases the death benefit over time. This iswell if you want to cover only a specific responsibility that, as a mortgage or loan business.
As long as you pay the premium, the company can not terminate you.
Term life insurance is always a popular choice due to long periods of guaranteed prices, and the possibility of a low life insurance cost. However, if you terminate the contract and still need life insurance, is buy a new policy that will have a price Based on his advanced age and health.
The choice of an initial rate guarantee is simple: Organize your family need time income for the period available rate guarantee. For example, try, if your children are young and have decades to go on your mortgage, 30 years old. When your children leave the nest, and your house is paid for or nearly paid off, 10-year period could fit the bill.
Other policy provisions to determine the popularity of the concept LifeDrive> Renewal of Insurance Guaranteed convertibility and guaranteed.
Guaranteed renewal. Before buying a term life policy, ask the agent or company, you certify that continuing the policy contains an option to guarantee that renewable gives you the right to report on the initial rate guarantee period without a medical examination. This feature, which has sold into the EU's longer-term life found today, it is extremely important, you should become ill and uninsurable at the end ofThe warranty period of price.
For example, suppose you paid $ 800 a year to U.S. $ 500,000, 20 years in terms of long-term policy of life and suffering from cancer at the end of the period of 20 years, so that they are not insurable. Suppose you want the cover, a guaranteed renewable clause still allows to calculate the 20-year period may be renewed annually, without further consideration, although in a much higher annual premium of about $ 8000 in 21 years, $ 11,000 in22 years, and so on.
It is now possible to have sticker shock, but these premiums do not look so high when you are very sick and uninsurable, but still need coverage.
Guaranteed Convertible. Another built-in function of the political life of the longer term is the right to protection: the implementation of a policy cash value that the company can offer at current prices, without further physical examination. This feature can be useful in the future if you decide to cashValue of life insurance.
If you want insurance cover term for a while, but I'm sure it takes to survive in politics, a "return of premium (ROP) life in the long term. With this policy, if not death was paid by the end of insurance period, you will return all premiums (tax free). Return of premium term life insurance typically costs 50-150 percent more for a similar conceptPolicy, but provides a way to protect your pages, no matter what happens.
Term life insurance is very popular on the Internet, direct-to-consumer and business life insurance intermediaries and brokers.
Cash value life insurance
If you have more than a death benefit from your life and how the idea of a long-term savings account (not insured by any federal agency) or stock market investments;could examine the value of life insurance cash, such as whole life, universal life or variable life insurance. But be prepared for significantly higher premiums for every $ 1,000 of coverage, why pay now funding a cash value account and the payment of fees and costs.
In politics many cash value, not increase the annual premium from year to year. Universal life policies can vary or even the payment of premiums, which has set, turn the death benefit is skipped.
UnlikeTerm life insurance, which is the light line for comparison, the cash value of insurance agents and brokers, often in a face-to-face setting, in which the needs and strategies can be discussed and will be marketed.
Because of the complexity and dizzying array of possible outcomes for permanent life insurance, insist that the regulators to sell insurance cash value, with pre-approved illustration formats. These examples can be run at 15 or more pages. Cash value life insuranceThe images are divided into two main sections: the guaranteed values and projected or represented, non-guaranteed "amounts. Illustrations can be very complex and difficult to compare in an apples-to-apples way.
Pay particular attention to the guaranteed death benefit and premium payment sections because these columns contain promises of today's society. If you do not like what you see there, on foot.
Another caveat: Many cash value policies provide for severe penalties for submittingPolicy in the early years. Changing your mind in the early years is a costly decision.
Whole Life Insurance
Ordinary whole life insurance provides "permanent protection" with a cash value account that grows over time. Life is a level death benefit and level premiums for life and as long as the premiums further. For example, a healthy 40-years woman might pay $ 4200 a year for a $ 500,000 lifePolitics. The premium will remain at $ 4200 a year for the rest of their life, and in case of death at any age, it is the policy of the 500,000 dollars to pay for their recipients.
Life also contains a cash value account that builds over time, slowly at first to gain steam after several years. You can withdraw your cash value or take a loan against it, but I remember when they first return the loan to pay your beneficiaries the death of the allowance is reduced. For example, SusanU.S. $ 500,000 whole life policy in force and has taken over the years, the cash value. Your total amount of the loan and interest amounting to U.S. $ 300,000. When Susan dies, the beneficiaries will receive U.S. $ 200,000, as the benefit of life insurance becomes first to repay after the death.
Understand what your beneficiaries will receive on your death. If you have a traditional whole life policy, your beneficiary will receive only the provision of death, no matter howCash value that you have accumulated. Other payment options available for the higher premiums are as follows:
Death plus cash value
Death benefit, plus return of premium
Whole life insurance may be issued as "participants" or "disinterested." Participating policies generally cost more, but the dividends paid back each year if the insurer has a good year. Dividends are not guaranteed. Aloof life insurance dealsno dividends.
Purchaser of whole life insurance, as the safety of fixed premiums with a known death benefit for life. They also enjoyed the "forced savings" component and see how you build your account value in cash.
Universal Life Insurance
This type of policy offers more flexibility than whole or in life. Universal life has many moving parts to understand before you buy.
After the first premium payment, you can reduce or increase theAmount of the benefit of death. Even after the first payment you can pay premiums at any time and for any amount, until you lose a minimal amount for the level of payment. In some cases, there are limits to how much extra you can pay in advance. If you choose to increase the death benefit, it is necessary that the medical evidence that your health has not deteriorated to offer.
It is necessary for the implementation of these measures of funding, especially because the insurance company may increaseTaxes.
Some of the new universal life measures of conduct, such as term life insurance: You can configure the time of purchase so that the death and the level of premiums for life, unless you pay to provide guarantees for the prize expected.
Variable Life Insurance
Variable life offers a death benefit with a side length of the Fund, which functions as an investment account. It shifts the uncertainty of investment gains and losses of Insured.
The insurance company invests your premiums and offers a choice of funds in which to invest your money. Income is not guaranteed. The amount of money your beneficiary will receive the cash value of your policy and will depend on how they perform the operations. Theoretically, the cash value can go down to zero, and if so, will the policy be discontinued. Some variable life insurance policies guarantee a minimum pension of death.
Other forms of permanent life> Insurance Considerations
If your account value for money is large enough, can be used by the insurer to pay the premium for the rest of your life. This will be paid as well known as "." You can still withdraw at any time and worth of money, but you must take to resume payments for the policy in force or conduct that a benefit reduced the residual value of money can support. Their policy illustration shows how long it takes for your whole life policy to be "paid".
IfThey no longer want the policy to whole life, you may get waiver on the current value of ransom, or they may walk in a pension, but consider that cashing in a permanent policy after only a few years of an expensive way to obtain insurance protection for a short time.
Riders add benefits
You can driver in your life insurance, which provides protection against a number of unpleasant situations. Your insurance company may own list of availableDrivers, but here are a few:
The pilot accelerated death benefit (also known as living benefits rider): Pays benefits if you are terminally ill first.
The accidental death benefit rider: Pays an additional benefit if you die because of an accident.
Long-term care rider: Pays for the costs of long-term care not to do in the situation, some of the activities "of daily life such as dressing or toileting.
Waiver of premium rider: it should be completely waived premiums for disabled.
How are the rates of life insurance
Your life is on your life expectancy, the face amount you need and the length of the policy, if it) for the duration of life (life) or a specified period (life-long term. The issue of a low cost of life insurance will depend largely on current health and past.
Because your current and Historically, the health affects life expectancy, insurers want to know as much as possible about your health. Common diseases such as hypertension, heart disease, obesity, cancer and depression may increase the rate of life insurance or even a decline.
Based on your medical history, it comes in a category such as "preferred plus are grouped together," "preference", "standard" and "inferior." Your category ultimately determines your premium.
> Buyers of insurance with serious health conditions or a combination of conditions will be difficult or impossible to find the activity of life insurance. They are considered "risk of impairment are unknown. The local staff may not have sufficient experience to find a company that specializes providing people with certain diseases. Fortunately, the specialist risk expertise compromised, must know where to draw a petition for people with medical conditions.
Life insurance BuyTrial
The process of life insurance application is paper-intensive, can take weeks and often appears for people who value their privacy intrusive. A face to face with paramedical examination is usually for the policy in more than $ 100,000, which means, at minimum, so that blood and urine tests, medical staff.
Expect detailed questions about your lifestyle, to foreign destinations, your family and your medical historypersonal medical history. Are you going to dive? Already have parents or siblings with heart disease or cancer 60 years ago? Have you ever taken medication for anxiety or depression? These and more are the types of questions to expect.
Sometimes multiple interviews are required to verify the data. Paramed The examiner usually asks these questions face to face, and often insurance companies to conduct follow-up telephone interviews, soReview of the first set of answers. Regardless of the type of life insurance you buy, most policies require you to answer some guidelines for your lifestyle and health history.
If it sounds appealing, this linking process fudging an answer or storage of information, do not. It is a crime in all 50 states to hide or lie on an application for life insurance. In addition, the politics of fraud, you will receive error that indicates the time.
InsurerHis report is likely that the results of medical examinations (referred to as code numbers) for the Medical Information Bureau (MIB), a database that supported the demands of life insurance in the last seven years. If you gave different answers to questions doctors in the past, will be a red flag with the MIB. The goal of the MIB database is to reduce fraud.
All insurance living standards generally relate to death from any cause at any time, any place, with the exception ofDeath by suicide in the first two years of policy (one year) in some states.
If you have interest in the subscription process to go, there are two other more expensive options:
Simplify life insurance can issue after answering a few questions doctor to be purchased. There is no medical supervision is necessary. If you report health problems, however, will probably be rejected. Even if they are healthy, or even if you do a little 'bad history, aComprehensive policy is still the least expensive.
Guaranteed issue life insurance is for anyone (refers to an age limit), and is by far the most expensive to buy life insurance to be sold. This should only be those who went for everything else, but still need life insurance to be taken into account. This policy has classified the death, which means that your beneficiaries do not receive the death benefits of up to several yearspolitics.
When the designation of a beneficiary, remember that life insurance they just want the names of those who are financially dependent on seeing you. An acquaintance, friend or relative who is missing a financial relationship does not work.
Working with a broker
After examining the various life insurance products available, you may still not sure of what will best suit your needs. The Council of American life insurers (ACLI) recommendsAdvice of an insurance agent. ACLI spokesman Jack Dolan said an agent may recommend policies that meet your needs. Be "safe in the recommended caution Wikipedia policy, it fits your personal goals," said Dolan.
To examine with care, your agent and ask for advice from a point by point explanation. Make sure the agent explains items you do not understand. Because your policy is a legal document, it is important that you know what he sees.
Insure.com provides thisRecommendations for the decision to acquire the type of life insurance:
If your agent recommends a term life insurance, ask:
What is the Standard & Poor's, AM Best, Fitch, Moody's and Weiss Ratings for this insurance?
What is the first rate guarantee period? This policy is renewable after the first rate guarantee period without a physical examination? If so, what are the prizes?
IsThis policy convertible to permanent insurance without a physical examination? If so, for what period of time, I have the right to convert?
If your agent recommends a cash value policy, ask:
What is the Standard & Poor's, AM Best, Fitch, Moody's and Weiss Ratings for this insurance?
Can you tell me, in writing, so we recommend insurance cash value to me are now?
Why should I join my life with my insurance needs investment objectives?
Please create an analysis for me is that the actual cost of the system shows the net present value over 5, 10, 15, 20, 25 and 30 years, against my long-term life and invest the difference in long bonds term in the same period?
What is your first year of the Commission on this proposed policy cash value against its Commission is acorresponding term life insurance?
If the annual prize offered for my budget?
Why do you think I can commit to pay these premiums in the long term, perhaps decades?
How much will I find if I give the policy?
Additional Resources
Insurance Consumer Federation of America's "Rate of Return" service
Insurance Information Institute: More about life insurance
The state insurance department may also buy life insurance online quick
For a free quote for life assurance or more information about the different types of life insurance available, please visit Insure.com.
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