Posts Tagged Premiums
Senior Term Life Insurance
Posted by Admin in Life Insurance on August 27, 2010
We all know that purchasing life insurance at an older age is more expensive than purchasing it while very young. In an attempt to provide affordable insurance to meet the life insurance needs of older insureds, some companies are now offering Guaranteed Acceptance Life Insurance.
Guaranteed Acceptance Life Insurance policy rates are less expensive than the traditional term insurance policies. As the name implies, you are guaranteed to be accepted for this life insurance. There are no health questionnaires to complete and no physical exams to take. As long as you pay the premiums, the policies cannot be cancelled. Additionally, you may lock your premium rate for the policy amount you want. Your rates will not change for as long as you keep your insurance.
Where’s the catch you may be asking. Well, the policies are written for a limited period of time. For example, Colonial Penn’s policies are for a two-year limited benefit period. They are available for people between the ages of 50 and 85 (This age range varies depending on insurance company and state regulation).
Generally, if death occurs during the first few years, a reduced benefit is paid or the company may return the premiums paid plus interest. For instance, with a Gerber Life policy, if death occurs by natural causes within the first two years (during the limited benefits time), the beneficiary will receive all of the premiums paid plus 10%. However, if death was a result of an accident, or if death due to natural causes occurs after the two years, your beneficiary will receive the full benefit amount. In the event of suicide (with certain state exclusions), the beneficiary will receive the amount of premiums paid only.
Most life insurance companies offer a Guaranteed Acceptance Life policy for seniors. There may be variations from state to state, but the basic premise is the same. They all offer an affordable insurance option for seniors.
Please see our list of recommended insurance quote providers below to get free insurance quotes from many providers. These sites also offer pages and pages of free insurance information.
Selling Your Life Insurance (Viaticals and Life Settlements)
Posted by Admin in Life Insurance on August 20, 2010
Selling your life insurance is an option you might consider if you’re in a difficult financial situation for which you don’t see a close end. A terminal illness or old age could cause you to think twice about paying those hefty premiums at this stage of your life. Selling your life insurance carries with it complex implications and substantial risks, so it is important that you educate yourself regarding the big picture. If you’re interested in selling your life insurance, this is a good starting point to obtain some basic information.
Basics: Vocabulary
If you’ve already done any research on selling your life insurance, chances are good that you’ve come across two main terms: viaticals and life settlements. Both refer to the selling of your life insurance to a third party. So what’s the difference? “Viatical” is typically used to refer to the transaction involving a chronically or terminally ill insured, while a “life settlement” is a transaction involving a senior (generally over the age of 65) who is not terminally ill.
Even though you now know the difference, it does not mean that your state does. These terms might be used interchangeably, or your state might use one of them to refer to both transactions. For example, your state could use “Viatical Settlement” to refer to any type of transaction regarding selling your insurance. Be aware that this kind of ambiguity may exist in relation to the vocabulary used in the sale of your life insurance.
How it Works
The owner of the life insurance policy will sell it for a percentage of the death benefit a lump sum to a third party and, in exchange, receives an often substantial lump sum payment. The third party then becomes the new owner andor beneficiary of the policy and pays all of the future premiums and eventually collects the death benefit when the insured passes away.
Those considering selling their life insurance may either directly approach a viatical company or settlement firm, or they may choose to work with a broker. The broker will act as an intermediary and present the information to several different companiesfirms in an effort to find the highest price for the sale.
The settlement firms buy the insurance on behalf of investors. In this situation, the investors become the owners and beneficiaries, and the settlement firm pays the premium until the insured dies. The firm then collects the death benefit and either pays its investors a percentage of the annual return or repackages the policy for sale to another party.
Take comfort in know that the process of selling one’s life insurance is typically very confidential. Most viatical companies and settlement firms understand the discretion necessary to make the process run smoothly and easily. However, a company may act disrespectfully and become borderline intrusive by trying to keep track of the insured’s condition. For this reason, it is important to work with a respectful, experienced organization.
Who Considers Selling
Those with serious, life-threatening illnesses are most likely to consider selling their life insurance to provide cash for various expenses, such as mounting medical bills. For those who are not terminally ill, selling the life insurance might be a good idea for a number of reasons. If the owner’s beneficiary has died or if the owner can’t afford to keep paying the premiums, it would appear that they no longer have sufficient use for the life insurance. Seniors around retirement age may also consider selling their life insurance, even if they are free of debt, in order to receive a lump sum of money with which they may do whatever they please.
Keep in mind that different companies may have different eligibility requirements to be able to sell your life insurance policy.
Advantages to Selling Your Life Insurance
It might be easy to see some of these benefits, but others are a little less obvious.
mean that you’re definitely robbing your beneficiaries of their gift.
- Risks of Selling Your Life Insurance
- You might lose your eligibility for some public assistance benefits, especially those based on your income and assets (such as food stamps, welfare, Medicaid and some Social Security benefits).
- There could be tax issues. Selling the policy will
result in a tax bill if the settlement amount exceeds your cost basis. - With improved medical care, the ill person may live longer than expected.
- You might face unhappy heirs. This might not be a problem for you, but it could lead to a long road of (possibly legal) complications and battles. Some settlement actually companies require the beneficiaries to also sign off on any sale, which could be good or bad, depending on whether or not you’re dealing with a cooperative beneficiary.
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- Borrow against your insurance policy
- Cash out the policy if it has surrender value
- Look into accelerated benefits or living benefits
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- Borrow money (from family or friends perhaps) and use the life insurance policy as collateral
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- If you believe that selling your life insurance policy is the right decision for you, make sure you deal with a dependable, experienced broker or settlement company to ensure that you get the best service and results from your transaction.
Other OptionsIf you come to the conclusion that selling your life insurance policy is not for you, there are other options (though none that would provide you with such a large lump sum). An insurance agent should be able to help give you more information on some of these ideas.
Understanding the risks associated with selling your life insurance will help you make an informed decision. Be sure to consult a financial advisor or tax attorney to make sure you understand the implications of the sale.
Pennsylvania life insurance company
Posted by Admin in Life Insurance on June 25, 2010
Five things you need to know when getting an auto insurance policy
Did you know that since 1998, New Jersey law has been requiring drivers to have at least a basic insurance policy?
Driving without coverage is illegal in New Jersey, when caught, you risk paying expensive fines, suspension of your drivers license and even time in jail. For residents and visitors alike, not knowing the basic things about your auto car insurance can hurt you. So if you are planning to head out to the Garden State anytime soon, read on!
New Jersey auto insurance is considered as the most expensive in the city. This is due to the fact that the state adopts a no-fault policy wherein the automobile insurance company will pay your medical bills, lost wages and damaged property regardless of who caused the accident. In1998, through the Automobile Insurance Cost Reduction Act, people can now buy the basic policy which covers 5,000 for damages and 15,000 for medical expenses for anyone who makes a claim against you. Unfortunately, the insurance company is not liable if you get into an accident with a driver who is uninsured or whose insurance has lesser coverage than yours.
Now New Jersey car insurance varies not only in prices and also in coverage. Before you decide to get car insurance quotes, there are several things you will need to know. The New Jersey Banking and Insurance has prepared a guide for motorists who are renewing their insurance or are buying new insurance policies.
1.Understand your needs.
If you are renting your house, or have assets to protect, then you have to consider those too. You need to check of your life insurance company covers accident-related injuries or if you will need to get a separate policy for that. Aside from this, you will of course, need to know how much insurance coverage you can afford since you will be paying premiums monthly at the least.
2.Understand your options.
When shopping for auto insurance, it is important that you are familiar with the words and phrases used by insurance companies. In most cases, the terms are the same so you will need to ask your agent or you can take note of the terms you do not understand and check them out in the internet once you get home.
3.Understand consumer protections.
As a consumer, you have rights such as the right to fair and equal treatment and the right to get the information you need which can help you make intelligent decisions. You need to make sure that you understand the advantages of a certain policy over the other one and you can also ask about your additional options.
You have the right to purchase insurance and in cases that you are denied insurance coverage, it is important that the insurance company state a reason. The state of New Jersey provides legitimate reasons why a person is not eligible for coverage.
You also need to know that you can change or cancel your insurance at any time even when your policy is not yet up for renewal. If you find more affordable car insurance in New Jersey, you can cancel your old policy and get a refund of your unused premium.
4.Knowing your obligations as a New Jersey driver.
As the old adage goes with great power comes great responsibility, as a consumer, you get a lot of rights, but you need to understand that you also have obligations to keep. In order for you to maintain your auto insurance coverage, you need to make sure that all premiums are paid for and that you abide by the rules of traffic and driving in the state.
No Medical Life Insurance
Posted by Admin in Life Insurance on June 4, 2010
When applying for life insurance many life insurance companies require you to answer medical related questions and or to undergo a medical examination as part of the application process. These medical examinations are often required as proof of your health status as given on your application form. They are used by the life insurance companies to help them decide upon the insurance premium you’ll be charged for your life cover, and in some instances, as to whether you will be given life insurance at all.
Life insurance products where intensive medical questioning and or a medical examination is required effectively penalise you for pre-existing medical conditions, pushing up the cost of life cover. Taking a medical examination may also prove stressful, especially for the elderly who are looking for life insurance coverage later on in life.
Increasingly though, life insurance companies are offering life insurance products where no medical is required. What’s more some life companies even guarantee acceptance before you apply!
What is no medical life insurance?
No medical life insurance, to use a well-known phrase, does exactly what it says on the tin! It is a life insurance product where no medical examination is required. You may not even have to answer medical questions and yet still be guaranteed acceptance for life insurance. No medical life insurance is open to people of all ages, so whether you’re 20 or 65, no medical life insurance can give you the peace of mind that your loved ones will be financially secure in the event of your death during the term of the life insurance policy.
You may be questioning the ethics of such a life insurance scheme at this point? If you are don’t worry! No medical life insurance is all above board, and is in fact offered by some of the most well-known insurance companies in the UK. Even supermarkets like Tesco for instance now have a no medical insurance policy available for the over 60s.
The premiums on life insurance where no medical is required are competitive too. Life cover can be acquired for as little as 7 per month, with some life companies guaranteeing that the insurance premiums on no medical policies will not rise through the life of the policy. Of course, how much you pay into the life insurance policy each month will affect the final life insurance total available upon death. Generally, there are no issues involved with increasing the life insurance premiums later on of your own accord should you wish to do so.
Life Insurers Use The Body Mass Index To Tighten The Belt On Fat People
Posted by Admin in Life Insurance on April 23, 2010
Life Insurers Use The Body Mass Index To Tighten The Belt On Fat People
Overweight people are in the firing line again. Life insurance companies are increasing premiums up to four fold for fat people. They’ve always charged more for those of us who over-eat, but during the last year the penalties have got worse.
In moves to tighten the belts further, the life insurers are lowering the weight limits they use to categorise people. This tougher move means that those who are merely overweight and would have previously qualified for a standard premium, are now penalised with higher premiums and the premium rapidly rises the more overweight they believe you are.
Height and weight are just two of the questions you have to answer when you apply for life insurance. From them, the life company calculates your Body Mass Index and if that exceeds the limits they define as acceptable, they might ask for a doctor’s report. In bigger cases they might ask you to have a medical examination. If this confirms that your weight is of concern, then you can expect your premium to be loaded by at least 50% and as much as 400% if you’re really obese. Recent research shows that around 25% of applicants will experience problems getting life cover due to their weight. In extreme cases the insurer will even refuse the application.
In an acknowledgement of normal middle age spread, the insurance companies do take your age into account when deciding your premium. They accept that people naturally tend to put weight on as they age. If you’re young and overweight, however, they’ll certainly hit you hard. So overweight and 38 will be hit much harder than overweight and 58.
For example, a non smoking healthy man aged 35 asking for 150,000 level cover over 25 years will currently be quoted 18.77 by Scottish Provident but this could easily jump to 35 if he is overweight and up to 47 if he’s obese.
And obesity is certainly a growing problem. Over the last 20 years obesity in adults has rocketed with more than 60% of men and 50% of women being judged as overweight or obese. And signs are that the problem won’t improve. In children aged between 2 and 15, 28% of girls and 22% of boys are overweight.
How do you rate on the Body Mass Index?
Calculate your own BMI.
Note your weight in pounds and multiply it by 703.
Divide the result by your height measured in inches
Again divide the resulting number by your height in inches
The result is your BMI
The typical insurance company considers a BMI of between 18.5 and 24.9 to as normal. Above 25 classifies you as overweight. Over 30 and you’re obese.
To give you more of a fix on what this means for you, here are the BMI’s for twelve famous people:
Under weight
Paula Radcliffe Marathon Runner – 18.0
Victoria Beckham Footballers Wife – 17.0
Jennifer Aniston Actress – 17.5
Normal weight
Alan Shearer Newcastle Footballer – 24.4
Davina McCall TV Presenter – 20.8
Cilla Black Presenter – 20.7
Overweight
Russell Crowe Hollywood Actor – 25.6
Ann Widdecombe MP – 25.1
Charlie Dimmock Gardening Presenter – 26.0
Obese
Norman Schwarzkopf US General – 30.5
Michelle McManus Presenter – 34.4
Dawn French Comedienne – 43.8
