Health Insurance Guide

Health Insurance Cost and Details

noreply@blogger.com (Alice) — Sun, 08 Feb 2009 16:11:00 +0000

We all need health insurance coverage to protect us when medical treatment or prescriptions are needed. Each year the costs of medical treatment and prescriptions are rising, and since the increases are ongoing the premiums of health insurance is increasing to match the change of costs. Thus, policyholders and customers searching for health insurance should learn all they can about coverage, premiums, deductibles, co-insurance, co-payments, and so forth to get the best deals.

Premiums are inevitable and it will include the costs paid toward coverage. Many health insurance providers breakdown the premiums comparing it with the cost of monthly coverage, and finally coming to the actual cost of coverage, combined with deductibles, premiums, co-payments, and so forth. Each time the patient visit’s a doctor or hospital the premiums will often increase. If you work, then you will not have too much worry, since the participants that provide you coverage will often cover the high premiums. Therefore, it pays to keep down medical costs as much as possible, since either way you go you will pay something.

The deductibles are optional in most instances. Meaning that the policyholder will agree to pay $200 to $1000 in deductibles to spare cost of coverage and premiums, and thus help the customer save money. The deductibles are based on a yearly scale, and require that the patient pay the agreed amount before the company will reimburse the healthcare provider. If you have an entire family covered under the health insurance plan, then you will most likely have more than one deductible. Still, the person seeking treatment is obligated to pay the deductible during the healthcare visit. The deductibles are tricky sometimes, because few insurance companies will deduct the deductibles from the balance owed to the healthcare provider before sending payment. Thus, you may not need money upfront if this happens, especially if the remaining balance after the deductible is sufficient to cover the charge of medical treatment.

The co-payments are upfront fees that the patient will pay if he seeks medical treatment. It depends on where you get treatment and what type of coverage you have, but for the most part, co-payments start at $1 to $10, and sometimes more. The HMO plans are networking systems that often require that the patient pay out co-payments; however, few states have eliminated the co-payments to HMO policyholders.

The Co-Insurance is another fee that the policyholder will pay after he pays the deductible. Most insurance companies will pay up to eighty percent of the balance, leaving the patient to pay twenty percent. If the patient seeks medical treatment outside of the networking system (if applicable) then the patient will pay additional charges for treatment. Read your terms and conditions carefully when seeking treatment to find out what the guidelines and rules are under the “reasonable and customary” information. Thus, this will help you to save money in the event you need medical treatment. If you need help understanding, the policy information be, sure to contact your provider and ask them to explain.

Furthermore, if you are seeking insurance coverage learn all you can about indemnity care plans, managed care plans, HMO, and other types of insurance before agreeing to any terms. This will help you to find the best premium rates, co-payment rates, and other rates that come along with health insurance policy. Customers should be aware that there are scammers on the marketplace offer health insurance. Thus, if it appears to be ‘too good to be true’ then get out of there and find another provider. The standard policies can cost anywhere from $13 to $20 and up per month. Thus, having an insight will protect you, since you don’t want to pay health insurance all to find you have no coverage at all. In addition, you may need prescription coverage, since many health insurance policies are abandoning coverage for medicines due to the increasing costs, and some companies will restrict the amount of medicines to cover. Finally, make sure you understand the restrictions and exclusions under the policies to know what you can get from your health insurance coverage plans.

Indemnity Insurance Care

noreply@blogger.com (Alice) — Wed, 28 Jan 2009 19:03:00 +0000

Are you looking for some inside information on health insurance plans? Here's an up-to-date report from health insurance plans experts who should know.

Due to the high cost of medical treatment, and prescriptions insurance companies have designed a strategy to help policyholders find the best coverage. Recently the companies’ have designed a healthcare strategy known as “managed care plans.” Most employers offer this particular plan, since it is one of the cheaper coverage policies. The plans are also found under the title “fee for service plans.”

The indemnity care coverage then differs from the “managed care plans,” since the policyholders have less restrictions while receiving medical treatment. The patient can get treatment for special causes without referrals. In other words, the ‘managed care” coverage is a restricted policy, since the patient must only seek out treatment in a ‘contracted network.” Thus, if the patient requires special physician care, he must get permission from a networked doctor. For example, one plan stipulates that the patient is only obligated to visit networking hospitals and doctors, and most times the patient will not receive the up most care. If the patient has the indemnity coverage then you may go where he wishes, to the best-rated hospitals or doctors for treatment, where he will receive the up most care.

The problem is these plans are often higher than the other plans. The company that offers the indemnity coverage will often handle the claims sent to them under the “reasonable and customary’ policy, which means that will decide if the medical treatment provided to you was reasonable, and if it fits under the usual list. The policy will often pay as much as “80%” of the costs, and the patient is obligated to repay the remaining balance. Therefore, the patient may have the liberty to visit any doctor or hospital of choice, but the best-rated sources are often higher, which takes the policyholder above the ’reasonable and customary’ status. Another disadvantage of the indemnity coverage is that the patient will pay steeper premiums, plus additional costs if it succeeds the stipulations laid out in the policy. There are also deductions required of the patient to repay.

The best time to learn about health insurance plans is before you're in the thick of things. Wise readers will keep reading to earn some valuable health insurance plans experience while it's still free.

The “managed care” coverage is secondary to the indemnity and is often offered by “PPO, or Preferred Provider Orgs.” The plan is often offered an extended networking service to where they may choose physicians and hospitals for treatment. The plans have lower premiums in most instances, and lower rates. The deductible is expected to be met, before a patient can be seen and are covered by medical experts outside of the networking system. For the most part, if you can afford the indemnity coverage then this is the better choice, however, if you live in a small area, most likely most doctors in the area are in this network system, thus the indemnity and expenses for the plan is not really a choice.

If your income falls below the poverty level, there is healthcare services and coverage available to you. Make sure you learn all you can, since everyone of us needs healthcare services and coverage in the event we fall ill. In most states, the Department of Human Services or Welfare will offer health insurance coverage to those with low income. Medicaid or other forms of insurance coverage can protect from high costs in the event you fall sick. Also, if you have lost your job you may want to check into the Cobra Insurance Coverage. Cobra is a temporary coverage until you find work.

At any time you are searching for health care coverage, make sure you understand all the details offered in the package, including the exclusions and restrictions. The exclusions will inform you what the policy will not cover, while the restrictions will let you know how much you will pay on treatment that is restricted under the policy.

Finally, it never pays to hold off getting health insurance coverage, since none of us can predict when the coverage is needed. Medical treatment and prescriptions are the highest dollar making industry for the developers and distributors; therefore, coverage is needed, since these people make more in one day, than what you will pay for treatment and prescription.

I hope that reading the above information was both enjoyable and educational for you. Your learning process should be ongoing--the more you understand about any subject, the more you will be able to share with others.

Health Insurance Covering Families in Michigan

noreply@blogger.com (Alice) — Wed, 21 Jan 2009 22:35:00 +0000

UNICARE health insurance provides individuals and families low rate coverage and comprehensive plans. Few of the UNICARE policies have low cost plans, with “$2,000” yearly deductibles for each family member, thus offering the maximum payout on claims. The plan may offer waivers on deductibles to family members that do not meet the limited doctor visits. In other words, the policy may stipulate that each family member is permitted two doctor visits in 12 months, and if the policyholder does not meet the limits then deductibles may be waived. The plans offer a “$30” Co-payment per member. Be careful, since some plans charge 100 percent on three or more visits to the doctor. The plan may have low pricing with maximum deductibles of “$5000,” however, the doctor limits are increased. This means the higher the deductible the more visits you can spare, with waiver on deductibles and “$30” Co-payments. There may also be co-payments on prescription drugs, usually around $10 per prescription on generic brands.

It depends on the insurer but few offer low cost plans with higher deductibles and “tax deferred” bargains. The insurance provider may pay 100 percent of each visit to the doctor, which will include procedures, visits, hospital stay, outpatient care, and so forth. If the policyholder meets the deductibles then the company may pay the full price on prescription drugs generic brands.

If you are fall under the low-income guidelines, you may want to inquire about HMO PLANS. Rather, you may want to inquire about other types of HMO plans, since the UNICARE falls under the guidelines of low-income families.

HMO is an abbreviation of Health Maintenance Organization, and the plan is designed to meet the delivery of healthcare. The plan is constructed under a network, meaning that doctors, policyholders, and providers work together to provide coverage at lower cost to families and individuals. It is a managed health care plan that works within a network environment. This means that if you have an HMO plan then you are expected to get healthcare by the participants in the plan. In other words, the doctors have voluntarily agreed to charge less for medical care and have agreed to join the plan. If the doctor is not in the network then you may not be permitted to go out of the networking environment. If you need a specialist then you must ask your doctor for a referral, otherwise you cannot visit a specialist on your own without paying full price out of your own pocket. HMO is a Medicare program that is under rule of the “Federal Government,” following the “Medicare Advantage Program” rule.

At one time policyholders of HMO plans were permitted to go anywhere they choose to get medical treatment under the plan; however, the networking environment has increased restrictions and included exclusions under the plan. If you are in need of specialist care you may want to consider other types of managed care or insurance polices that do not have exclusions or works on a network environment.

If you apply for HMO and are accepted, you will also need to sign up for the “Medicare Part D” to receive coverage for prescriptions. There are two types of plans available, which include the HMO and PPO policies. Thus, if you do not apply for the “New Prescription Drug Benefit” you will need to cover your own medicine costs. Still, you will only get the generic brand with the HMO coverage plans. Furthermore, it depends on the plans, but few HMO plans with prescriptions have no premiums, while others may charge minimal premiums per policy. There are also deductibles in few of the HMO plans, including the D plan.

For more information regarding health insurance, it makes sense to go online and find all information as possible regarding premiums, rates, coverage and so forth. Online you can get several quotes to help you determine cost of health care services. Many insurance policies will include co-payments; however, Michigan is one of the states that offer HMO plans that do not have co-payments. Recently, Michigan HMO plans restored Chiropractic and Dental services to its plan; however, at one time there was no coverage for these services.

The Top Five Health Insurance Plans

noreply@blogger.com (Alice) — Sat, 10 Jan 2009 19:07:00 +0000

by: David Chandler

Since competition in terms of health insurance is on the rise, it is no wonder that more and more forms of health insurance are being designed. Among these, there are few that are popular and they are briefly described below.

Individual Insurance: Ensuring a person individually is a common mode of insurance. One may be selective about what s/he wants in a plan through this process. Accordingly, one has required premium is calculated, and the insurance plan takes effect.

Group Insurance: Another type of insurance is the group arrangement. Through this type of insurance, one is compelled to abide by what others are going for, and this is dependent on the insurance providers. They are the ones that decide what is feasible to include in a plan, and on that basis, a group insurance can take place.

Indemnity Plan: This plan allows one to go to any doctor when one needs to; there are no restrictions on this, and it is believed to be more of a traditional plan. One does not need permission to go to a particular health care provider. However, usually what happens is that the member pays 20% of the total fee for treatment while the insurance provider pays 80%. In addition to this, there is a period through which one pays up in this manner, and then the company takes over paying the whole 100%.

HMO: The Health Maintenance Organization is one that allows a member to select a particular doctor off the panel. It is these selected doctors that will deal will with members' problems. The selected doctor is the one that will be approached for checkups of any kind, and if there are problems with a member that cannot be handled by him or her, the member is referred to specialists.

About the author:
For more information, visit http://www.healthinsuranceinfocenter.com

Health Insurance - Are You Covered?

noreply@blogger.com (Alice) — Sun, 04 Jan 2009 15:18:00 +0000

by: Jeff Lakie

With the ever-increasing cost of health care, procedures and medicines, it's no wonder that the cost of health insurance has also dramatically risen over the past few years. But as that's happened, insurance companies and the government have seen the potential negative impact of families and individuals without insurance. There are some things you can do if you don't have health insurance.

A federal mandate requires that all 50 states have a health insurance program for children. Each state was allowed to create a plan tailored to the needs of children in that state, but there are some things that are the same from one state to the next. The first is eligibility.

Government funded health programs typically have very stringent income guidelines. These health insurance programs have income requirements, but the criteria allow higher income than most programs.

Another criteria for participation is that the child isn't covered by any other health insurance. That differs from most programs in a very important way. Most programs say that if the family has access to insurance, they aren't eligible. That means that parents who have employer-based insurance don't qualify. But many of the employer-based plans are too expensive, and workers sometimes simply can't afford the premiums. This program is designed to help fill that gap.

These programs don't cover families - only children. But there are some great benefits for those who qualify. Some states offer mental health benefits, transportation to and from appointments and dental/vision benefits.

If your children don't qualify for this program, or if you're in the market for individual health insurance for an adult or private insurance for a family, you have some options. Even though insurance is typically very expensive, you can take some steps to control costs.

You can eliminate extras such as vision and dental coverage, and increase deductibles to lower the cost of your insurance premiums. Look for policies that don't include maternity benefits and cancer plans as more affordable general health insurance plans. Basic coverage will likely be less expensive than an all-inclusive health insurance program.

Finally, shop before you make a decision. Even if you're offered employer-based insurance, you might find a better deal elsewhere (depending on the amount of employer participation). Look to professional groups for discounts and advice.

About the author:

Jeff Lakie is the founder of Insurance Resources a website providing information on Insurance

How to Find Affordable Health Insurance

noreply@blogger.com (Alice) — Sat, 27 Dec 2008 17:58:00 +0000

The following article lists some simple, informative tips that will help you have a better experience with Affordable Health Insurance.

Affordable health insurance - it seems, especially today, those words just don't belong together in the same sentence. Health insurance monthly premiums have become the biggest single expense in our lives - surpassing even mortgage payments. In fact, if you have any permanent health problems, such as diabetes, or have had cancer at one time in your family history, your monthly cost could easily be more than the house and car payment combined.

Shopping for affordable health insurance can certainly be an eye-opener. If you have always had a health insurance benefit where you work - especially a state or federal employee - and now have to buy your own, you may not be able to afford the level of health insurance coverage you have become used to.

Affordable health insurance, however, is definitely available -if you know how and where to look.

When you are looking for affordable health insurance, you want the lowest cost per year that will fit your budget, of course. But, even more importantly, you want a company that has a good record for paying without fighting with you on every detail. Just as there is a car for just about any budget, there is also affordable health insurance. You may not be able to afford a "Cadillac" policy - but then you probably don't need all the frills anyway.

Shopping for health insurance on the internet is the easiest and best way to find affordable health insurance. Here are five reasons why.

1. You don't need a local agent to help you submit the claims for health insurance. The medical provider does it for you. You save money because the health insurance company saves money by not paying the agent commission. This could amount to an 8% to 12% savings to you.

If you base what you do on inaccurate information, you might be unpleasantly surprised by the consequences. Make sure you get the whole Affordable Health Insurance story from informed sources.

2. All the top health insurance companies are at your fingertips on the internet. Most local agents can only quote you from the few companies that they represent. They may not offer you what is best for you financially or health-wise but only what they happen to have available.

3. Health insurance companies have to be extremely competitive because it is so quick and easy to compare them with their competitors on the internet today. In the past you would have had to visit physically eight to ten agents to do a similar comparison. Most folks just didn't have the time or desire for that.

4. You can change your coverage, deductibles, and payment options with just a few clicks rather than going through the paperwork delay with a local agent (and then finding out he/she made a mistake - more delay).

5. Charging to a credit card means you aren't going to forget a payment and be without insurance. Also, it gives you another 30 days before you actually have to pay. Also, many companies today give an additional discount for "auto-pay".

The key, however, to finding affordable health insurance is realizing that the purpose of any health insurance is to protect you from a major financial loss - not to protect you from spending small money on clinic visits and sliver removal. These small expenses may be cumbersome but they generally will not hurt you. It's the $100,000 heart operation that will break you. That's the financial disaster health insurance was originally designed to prevent.

Also, keep this in mind. Health insurance, as with any insurance, is a gamble. You are gambling that you will draw out more than you pay in. Your health insurance company is gambling they will pay out less. The odds are in their favor for two reasons. They have all the facts for millions of families to average out, so they know the risk in advance. Also, they get to set the rules and the prices. The higher you set your deductible, the more risk you take. This is not a bad thing at all. You will most likely be the winner in the long run.

Yes, finding affordable health insurance is much easier than most people think.

Taking more of the risk with higher deductibles, spending a little time on the internet comparing eight to ten different companies, and deleting coverage that you will not likely need (such as maternity for many folks) will make it very possible to find your own affordable health insurance.

Now you can understand why there's a growing interest in Affordable Health Insurance. When people start looking for more information about Affordable Health Insurance, you'll be in a position to meet their needs.

DISABILITY INCOME INSURANCE

noreply@blogger.com (Alice) — Thu, 25 Dec 2008 18:09:00 +0000

When a person becomes disabled and unable to work, at some point their income will stop. It might be sooner or later, but unfortunately, life goes on and daily living expenses continue to mount.

Disability income insurance is available to continue at least a portion of ones income while unable to work. It’s sad, but most people give more attention to life insurance than they do about income replacement should they become disabled.

Disability income insurance is available individually or sometimes as a portion of a group benefit provided by an employer in their group package.

Individual policies are most often sold to self-employed and professional people. The amount of the benefit relates to earnings and is matched as close to after tax income as possible. Generally it is up to 60% of monthly net income and there is usually a cap on the amount.

When included as part of a employee group benefit package, disability income policies are usually more liberal than individual plans as far as limitations and exclusions. It is also much easier to acquire coverage. As a general rule, group plans are much less costly to all parties.

Disability income protection should be an element of your entire financial planning. The importance cannot be overestimated because it relates to your overall family finances. Whatever you situation may be, disability is one of the most important factors when you consider you inability to work and produce income.

Some things to consider when determining disability income needs are:

* Establish the bare minimum required if income stops.

* Determine your retirement needs if work ceases and the ability to pay into the retirement ends.

* Allow for any benefit that might be offset by social security and workers compensation.

Some thought needs to be afforded to the possibility of “total disability.” That definition is important as it is always defined in a policy and different companies may use different definitions.

Interpretation is important as it pertains to the insured’s own occupation and any occupation the insured may be qualified to perform.

The first method used to determine total disability concerns the occupation that the insured is normally engaged in. In this case total disability might be defined as “the insured’s inability to perform any or all of the duties or his or her own occupation.” This is determined by the insured’s occupation at the time that disability begins.

The second method is more restrictive defined as “the insured’s inability to perform the duties of any occupation for which he or she is reasonably qualified by education, training or experience.”

In other words, while you may no longer be able to conduct the duties of your current occupation you may be able to perform activities in a related field.

There are some disability income policies that use another criterion to classify total disability. This is called presumptive disability and automatically qualifies the insured for total disability classification.

These conditions are:

* Loss of use of any two limbs

* Total and permanent blindness

* Loss of speech and hearing

Presumptive disability may also be decided by using a loss of income test. If the earnings after disability significantly drop below pre-disability earnings by a given percentage the insured may be considered totally disabled.

Usually short-term policies cover non-occupational disability but most long-term policies cover both occupational and non-occupational sickness and accidents. Bear in mind, however, that occupational benefits are usually reduced by benefits received form workers compensation and social security.

Other considerations are the probationary period, elimination period and the benefit period.

Some disability policies use a probationary period that begins when a policy goes into effect and no benefits are paid during this period. It varies but is often 15 or 30 days and sometimes up to 60 days for long-term policies.

In addition to the probationary period some policies also include an elimination period. It begins when the policy goes into effect and can last for any length of time even up to a full year. This is usually left to the insured to decide as it is based on how long the insured can go without income after becoming disabled.

The primary advantage to a long probationary period is a low premium and allows the insured to use premium dollars to purchase a benefit that best suits their needs.

The benefit period, which is the length of time, can vary depending on the needs of the insured. They can be as short-term as 13 weeks up to long-term as long as age 65.

As a general rule the longer the benefit period, the higher the premium. Same as everything in life, we get what we pay for.

Benefit amounts for both short-term and long-term policies range from 50% to 66 2/3% of earnings with a cap on the maximum amount to be paid.

Other disability categories are confining vs. non-confining, partial, residual, recurrent, delayed, combined accident and sickness and non-disabling.

We won’t cover definitions of each category here, but do be aware of their existence and check your policy for a definition of coverage for these types of disability.

Most companies offer optional short-term benefits for an additional cost. A typical disability income policy might include all, some or none of the items below so it is important to discuss these with your agent.

These options are:

Supplemental income – sometimes called an additional monthly benefit rider, provides additional income during the first several months of a long-term disability.

Hospital income – pays a stipulated amount per day when hospitalized extending for a certain period and can be up to 12 months.

Different Types of Health Insurance Policies

noreply@blogger.com (Alice) — Fri, 19 Dec 2008 17:58:00 +0000

Health insurance is a legal contract between two or more parties that promises certain performance in exchange for considerations. A health insurance policy is considered a unilateral contract. This is because only one party (the insurer) is required to fulfill their obligation. While a policy owner may decide to terminate premium payments, as long as the payments are paid the insurer must meet their responsibility under the contract.

A health insurance policy can provide just one or any combination of certain benefits:

* Hospital, medical and surgical expenses resulting from sickness or an accident

* Accidental death or dismemberment

* Disability resulting from accident or sickness (sometimes this can also be referred to as “loss of income” or “loss of time”

An accident is an injury that occurs accidentally. A sickness is an illness or disease that is not the result of an accident. Knowing the difference is important because policies may have different provisions that apply to accidents or sickness. Also, there are some companies that sell a separate accident policy that does not include sickness.

The terms accident and sickness are widely used and often interchangeable in any discussion of health insurance. They are often abbreviated as A&H and A&S. Health insurance is also referred to as medical insurance.

As we discussed above, health insurance is designed to protect again two types of economic loss. Loss of income and expenses for medical care which places them in either of two broad policy categories:

* Disability income policies

* Medical expense policies

Disability income policies can also be referred to as loss of income, loss of time or replacement income. This type of policy will pay benefits to an insured who is disabled and can no longer work to earn a regular income. Payments can be weekly or monthly depending on the policy.

Medical expense policies are represented by a wide range of coverage from very minimal to comprehensive packages with multiple coverage. Some include both accidents and illnesses, various hospital expenses and other costs pertaining to medical care such as:

* Accident and sickness policies

* Hospital policies

* Basic medical expense policies

* Major medical expense policies

* Comprehensive medical expense policies

Any of these policies might cover various combinations of the above and may be paid in a lump sum.

Accident Policies. Some policies cover only accidents and not illness. As you might imagine, policies like this are very specific about what is considered an accident.

It is important to understand what is defined as an accident as it pertains to the health insurance industry. . .an accident is an event that is unforeseen and unintended.

Keep in mind that any discussion of this type of policy also applies to any type of policy that includes accidental coverage not just accident specific policies.

Accident benefits are most commonly paid for accidental loss of life (also called accidental death), accidental loss of limb or sigh (dismemberment), loss of time and/or income, hospital expenses, surgical expenses, and medical expenses like visits to the doctor.

Let’s expand a bit on dismemberment. As we said, this would be loss of limb or sight, however, different states have statutes that define dismemberment and they can vary from state to state. This is a subject that you need to discuss with your insurance agent to determine what actually constitutes dismemberment in your state.

Accidental Death Benefit can also be referred to as “principal sum.” This type of coverage should not be confused with life insurance. There is a world of difference between the two. Life insurance policies will generally regardless of the cause of death. An accidental benefit is paid ONLY if the death is accidental as opposed to a death by natural causes or illness.

The person who received the death benefit is called the beneficiary. The policy owner has the right and responsibility of naming beneficiaries. Usually there is a primary beneficiary however he/she can assign a second and even a third beneficiary.

The primary beneficiary is the first person in line to receive the benefit in the event of the death of the policy holder. They can also name a second beneficiary who would receive the benefit in the event the primary beneficiary dies before the insured. Some policies can include a third beneficiary who would be in line after the first two.

There is much more to be learned about accidental death policies, but we would like to mention one important element before we move on. An accidental death may not be instant. A person can die as a result of an accidental injury months after the accident occurrence. Read your policy carefully because most stipulate that the accidental death benefit will only be paid if death occurs within three months of the accident.

Q&A-Concerning Whole Life Insurance Cash Value

noreply@blogger.com (Alice) — Sun, 14 Dec 2008 03:14:00 +0000

Here are a number of questions and answers concerning whole life insurance cash value and cash surrender value. This article may help you to gain a better understanding of certain aspects of a cash surrender value.

Question #1: What is a cash surrender value?

A cash surrender value is the sum of money that a life insurance company pays the insured if she decides to stop the life insurance policy before she dies. The cash surrender value of a life insurance policy is not founded upon its real value, but upon its reserve value. This is the face amount of the contract discounted at a precise rate of interest in relation to the life expectancy of the assured person. Certain administrative expenses may also decrease the total cash surrender value.

Question #2: How does cash surrender value work?

The insured person receives the cash surrender value in the event of her life insurance policy being abandoned. This event frequently involves a whole life insurance policy. This normally results in a whole life insurance cash value payment being collected by the insured party.

Question #3: Why is a cash surrender value necessary?

The cash surrender value should not be confused with the face value of a life insurance policy. The face value of the life insurance policy relates to the sum that will be paid out to the listed beneficiaries provided that the terms of the policy were satisfied. Cash surrender value, on the other hand, is to be paid to the insured when she decides to cancel the life insurance policy. The cash surrender value will be a much smaller amount than the face value amount of the policy.

Question #4: When does the cash surrender value become payable?

The cash surrender value becomes payable when the policyholder decides to end the life insurance cover of her life insurance policy before it pays out due to the death of the policyholder.

Question #5: Where do you find the cash surrender value?

The cash value can be found in the investment section of most whole life insurance policies. The cash surrender value pertains to the savings aspect of a whole life insurance policy that is due prior to the death of the assured person.

Question #6: How does whole life insurance cash value function?

A whole life insurance policy normally consists of life assurance as well as an investment or savings section. A part of the life insurance premiums you pay may be invested by the life insurance company in stocks and bonds. This part builds up a cash value that the policyholder can remove or have a loan of.

The amount of the whole life insurance cash value relies upon the type, size and current age of the whole life policy. The increase in the whole life insurance cash value is tax deferred under existing federal income tax law.

You may have a loan of money from the whole life policy’s cash value in the form of a policy loan at the contemporary policy loan interest rate. The death benefit and cash surrender value is diminished by the borrowed amount. If the policy loan is not repaid, the death benefit is decreased by the sum of the loan plus interest.

Juvenile Life Insurance

noreply@blogger.com (Alice) — Wed, 10 Dec 2008 15:37:00 +0000

Should you consider buying juvenile life insurance for your children? After all, children rarely die when they're young. However, it is an inexpensive way to protect your family just in case. And if you buy a whole life policy, you can provide your child with a nest egg for later in life.

Why Would I Buy Life Insurance for My Children?

The main reason for buying life insurance is to replace income in case a breadwinner dies. Most children don't earn an income, so do they still need insurance? In fact, there are several reasons for buying insurance for your children:

* To lock in a rate so that life insurance remains affordable for your children if they choose to continue the policy when they are adults.

* To ensure that your children will have it if they later develop an illness and become uninsurable.

* To help with future financial needs by providing a cash value policy that adult children can borrow against to pay for college, buy a home, etc. Alternatively, adult children can close the account and withdraw the money.

Finding Affordable Rates for Life Insurance

If you have life insurance for yourself (and you should be fully insured before you buy it for your children), you may be able to add a child death benefit rider to your existing policy. Such a rider usually provides only $5,000 to $10,000 worth of coverage, but can be enough for funeral expenses and is very cheap

Another option is to buy a separate policy for your children. The best way to find an affordable policy is to go to an insurance comparison website. On such a website you can fill out a simple online form and you'll then receive rate quotes from multiple A-rated insurance companies. You'll be able to compare those quotes at your leisure and choose the most affordable policy with the best coverage.

How To Calculate How Much Life Insurance You Need

noreply@blogger.com (Alice) — Sat, 06 Dec 2008 19:37:00 +0000

Life insurance protects you and your family from economic hardship as a result of death. It is an insurance company’s obligation to pay the recipient of your choice a pre-determined amount of money when you die in exchange for timely payment of premiums while you are living.

Do you really need life insurance? Well do you want to provide for your family and loved ones in a manner to which they have become accustomed in the untimely event of your death? If you are the primary breadwinner who will pay the mortgage on the house your spouse and children live in if you pass? Who will provide financially for your family if you are gone? How will your children’s education be financed in your absence? And finally how will your burial expenses be covered?

Now that you have decided you do indeed need life insurance, how much do you need and if you already have life insurance do you have enough? Some things you will need to consider when making this decision:

How much can your family afford to pay off your mortgage loan or your rent if you die?

How much debt will you leave behind to include credit card balances, car loans, student loans, personal loans etc.?

How much annual income will your death remove from your household?

How much will the funeral you desire cost?

Do you want to leave behind a charity fund in your name?

Do you have special family members you would like to leave a financial gift behind for?

How much will your spouse need to care for a family member with special needs?

How much do you want to leave behind for your children’s education expenses?

Once you calculate how much money you want to leave behind consider how much you currently have in terms of individual or group life insurance along with your other assets such as savings accounts, CDs, mutual funds, stocks, bonds, 401K, retirement plans or pension plans and subtract that amount to decide how much life insurance you currently need to purchase.

Life Insurance Beneficiaries

noreply@blogger.com (Alice) — Thu, 04 Dec 2008 21:02:00 +0000

You should be able to find several indispensable facts about insurance beneficiaries in the following paragraphs. If there's at least one fact you didn't know before, imagine the difference it might make.

Naming a beneficiary for your life insurance policy can be a difficult decision to make, not to mention a tricky procedure. A person needs to research the different types of beneficiaries and the different ways to go.

In naming a life insurance beneficiary, a person should always specifically name and individual or organization and state the proceeds go to the beneficiary.

Multiple beneficiaries may also be another option to your life insurance policy. There is no limit to the number of beneficiaries on a life insurance policy. But, again, they need to be specifically named and the proceeds that they are to receive are to be indicated on the policy.

A contingent beneficiary is the person to whom a person bequeaths their assets to in the event that their primary beneficiary also dies. It is extremely important to ad a contingent beneficiary to your life insurance policy. If there is not one named and the primary beneficiary does die, allot of unnecessary taxes and fees will be charges to your estate.

If you don't have accurate details regarding insurance, then you might make a bad choice on the subject. Don't let that happen: keep reading.

If your beneficiary happens to be a minor child, a guardian has to be named and designated to supervise all the insurance proceeds.

Another issue with your life insurance beneficiary is to make sure in any life changing event such as divorce, death of your primary beneficiary or the birth of your child, that the beneficiary is changed to fit the new events.

You can change a revocable beneficiary at any time by filling out the necessary paperwork with your life insurance agent. However, if you named an irrevocable beneficiary to your estate, the beneficiary cannot be changed without there consent. If that person refuses, nothing can be done about it.

Before deciding on a type of beneficiary as well as naming your beneficiary to your life insurance policy, it is recommended that you consult with an insurance professional.

As your knowledge about insurance continues to grow, you will begin to see how insurance fits into the overall scheme of things. Knowing how something relates to the rest of the world is important too.

How Not To Let Your Life Insurance Be Taxed

noreply@blogger.com (Alice) — Tue, 02 Dec 2008 19:39:00 +0000

2011 seems like a long way away. Heck, 2008 isn't even two months old. But if you're looking at it from an estate tax point of view, 2011 is just around the corner. Failure to plan ahead could result in more of your money going to the government instead of your family.

First, let's look at the current state of the estate tax. This year, everyone has a two million dollar estate tax exemption. This means every individual can pass up to two million dollars to their heirs free from tax. Next year that exemption goes up to three and a half million, and in 2010, there is no estate tax. Sounds great, but in 2011, under current law, the exemption drops down to one million dollars. In 2011, a lot of people that have nothing to worry about over the next three years will suddenly have a taxable estate. So why worry about that now? Because of the three year look-back period used by the IRS.

Of all the assets in an individual's estate, life insurance is probably the easiest to remove. Life insurance proceeds are not subject to income tax, but they are subject to estate tax if they were owned by the deceased at the time of death. So, by transferring the ownership of the life insurance it is possible to eliminate the proceeds from the estate and reduce the estate tax. However, if this is done within three years of death, the IRS can pull it back into the estate and the death benefits will be taxed as part of the estate. Few people buy life insurance with the intent of giving almost half to the government.

Therefore, if you have an estate that does or likely will exceed one million dollars in 2011, it's not too early to begin thinking about adjusting your assets to ensure more goes to your heirs, and less goes to the government. Please be aware, transferring ownership of life insurance can create a lot of unintended consequences. Be sure to consult with your financial advisors before making any transfers.

Taking The Guesswork Out Of Buying Term Life Insurance

noreply@blogger.com (Alice) — Sun, 30 Nov 2008 18:55:00 +0000

Are you looking for some inside information on term life insurance? Here's an up-to-date report from term life insurance experts who should know.

Protecting your family is the single most important thing any individual can plan for during his or her life. Buying life insurance can be confusing, and a frustrating process. As an insurance agent, I am well aware of the details a customer must know to make the decision easier. In this article, I will offer practical advice on how to simply purchase life insurance.

Look for a company that has at least an AA-rating or above. Independent agencies such as Moody’s and Standard & Poors rate insurance companies on financial strength., there’s little or no difference in two companies with the same exact financial rating. You should feel comfortable with any company that has an AA or higher rating.

When it comes to pricing, don’t be fooled into thinking that insurance agents determine prices and that you can negotiate. Insurance companies set prices and they depend on age, gender, health, smoking status, family history, activities such as scuba diving, auto racing, foreign travel, etc. Insurance agents are not allowed to offer customers any pricing discounts or incentives. Insurance companies offer different versions of the same product. Often you will see what appears to be the same product, but at a lower price. Normally, the reason for this is that the lower priced policy offers a weaker guarantee where the policy is not guaranteed for the full period. For example, a 10 year policy that is only guaranteed for the first 5 years.

You may not consider everything you just read to be crucial information about term life insurance. But don't be surprised if you find yourself recalling and using this very information in the next few days.

When choosing a policy there are important details to consider such as selecting the guarantee period, determining whether or not the policy is convertible and if re-entry is available. The guarantee period determines how long the premium remains at a level rate. Once the guarantee period is over, the premium will increase. It is important to determine how long you will need the coverage and choose accordingly. Guarantee periods range from 1 to 30 years.

Most, not all, insurance companies will offer the ability to convert your term policy into a permanent policy during a given period of time. During this period, if you choose to convert your policy, you are not required to prove medical insurability. You will only be required to pay the new premium at your older age. The period of time you have to convert may be the guarantee period or less. It is important to check the policy description or ask your agent to make sure.

Re-entry refers to the point at which you want to extend or purchase a new policy with the same company. It is important to know if you will be required to take a new medical exam or simply pay the new premium. All companies have different rules and you should understand them before you make your choice. Another important consideration is choosing your beneficiary. It is normally an easy decision when it comes to your spouse or partner, but not if there are minor children in your family. Minor children named as a primary or secondary beneficiary must have a guardian/custodian appointed to handle and distributions of funds according to state laws.

Choosing a life insurance policy does not have to be a difficult process. It also does not have to be done alone. Today, you have the choice of working with a local agent or shopping online. Internet websites such as CompleteLifeQuote.com allow you to search hundreds of products and offer you the final decision as to which one to apply for. The companies work with you to process your application and send your policy once approved. Customers can expect to save money this way simply because they are able to choose for themselves instead of having an agent push his/her company’s products. I hope this article has shown you that making this important decision does not have to be a difficult process. Best of luck!

There's no doubt that the topic of term life insurance can be fascinating. If you still have unanswered questions about term life insurance, you may find what you're looking for in the next article.

Critical Illness Insurance

noreply@blogger.com (Alice) — Sat, 29 Nov 2008 21:12:00 +0000

There are three main types of insurance cover you can buy to protect yourself and your family: life insurance, private medical insurance and critical illness insurance. If you want your financial health to be completely bionic then you could choose all three types of insurance, but if your family finances are more restricted, it might be better to insure yourself with critical illness insurance and life insurance. Critical illness insurance should not be confused with private medical insurance or even income protection insurance and it’s important that you do a full evaluation of your needs before you pursue the different insurance options.

The purpose of critical illness cover (CIC) is to fill a gap that is left by traditional life insurance policies, which will only provide a pay-out on the death of the policy holder. CIC provides a tax free lump sum following the diagnosis of one of a number of life-threatening illnesses or certain types of surgery. The sorts of situations usually covered include the diagnosis of cancer, a stroke, a heart attack, the loss of a limb and many other serious disabilities.

Critical illness insurance policies are typically sold to cover mortgage repayments and are often sold alongside a life insurance package to ensure the borrower can repay the loan in all circumstances. It is worth noting that if a combined life insurance and critical illness cover package is taken out, then it would not be unusual for an insurer to pay out for only one of the events. Therefore if the policy holder suffers a critical illness and then dies at a later date, there will only be one pay-out – for the initial illness. It is essential whenever you take out a policy that you make sure it covers all of your needs and those of your family. Don’t estimate how much cover you may actually need. You will additionally need to consider the period for which you want critical illness cover, such as a set number of years to cover the mortgage or no fixed period at all, so you can maintain the policy as long as you need it.

The critical illness insurance market has come under increasing pressure in recent years, as the number of claims has soared, survival rates increased and medical science has made it far easier to detect serious conditions much earlier. These factors have prompted some serious questions about the viability of critical illness cover, particularly guaranteed products.

For the majority of people, the most important benefit of critical illness insurance is to protect their mortgage and most mortgage protection policies allow you to include life insurance and critical illness cover. If you already have life insurance in place, you can buy an additional, separate critical illness insurance policy.

Choosing a Life Insurance Company In The UK

noreply@blogger.com (Alice) — Fri, 28 Nov 2008 21:08:00 +0000

More than 150 insurance companies offer thousands of life insurance products in the UK.

Choosing the right company and right product from this bewildering choice is challenging. Fortunately, there are some common sense guidelines that will help you narrow the field to a more manageable selection of companies and products.

Looking at the Cost

The UK life insurance business is highly competitive, but the industry tries to avoid price competition whenever possible. Instead, companies attempt to make their products sufficiently different from their competitors so that price is less of a factor in product selection.

However, there are ways you can keep your premium rates to a minimum without affecting the quality of your cover.

•Consider Term Life Insurance - Term Life Insurance is the cheapest form of life cover available and premiums are very competitive.

•Shop around - in particular, if you know exactly what type of cover you require and don’t need advice, you can reduce your premiums by applying through a discount life insurance broker such as Life Saver. These broker's discount the insurance companies standard premiums by rebating the majority of the commission paid to them as an agent for the company. This reduces your monthly payments below the premium you would pay by applying direct to the insurance company.

•Stop smoking - premium rates for smokers are 30-40% higher than for non-smokers. If you can or are thinking of quitting you will save hundreds on your premiums over the term of the policy.

•Only pay for the cover you need - If you are looking for term insurance and critical illness, you can make big savings by buying a combined policy. These only pay out one lump sum rather than the two that separate policies would pay, if you suffer a critical illness and then die.

Obviously, the cost of monthly premiums is going to be a major factor in your choice of insurer but, it should not be your only consideration.

Product Quality

There can be major differences between UK life insurance policies so it is important that you compare like with like and check the small print. This is particularly important if you are including extra’s such as Critical Illness Cover. Always read the Key Facts document carefully and look for some of the following benefits:

•Are the premiums Guaranteed? This means the premiums are guaranteed to remain the same throughout the term of your policy. This is opposed to `Reviewable´ premiums which, as the name suggests, are reviewed usually every 5 years and can increase dramatically.

•Check that the policy has terminal illness benefit included. This is a valuable extra which is now included in most Term Life Insurance policies for free and will pay the life insurance amount early if you suffer a terminal illness.

•Can the policy be written in trust? This will avoid any delay in the money going to your dependants and the risk of inheritance tax being charged on the benefit.

•Can waiver of premium benefit be included in your plan. This is a valuable extra which, if you become too ill to work for a number of months, will ensure your cover continues without you having to pay the premiums.

Claims History

No matter how good the policy it will all be for nothing if your insurer is difficult or obstructive if you should have to make a claim.The industry pays out over £166 million a day in pension and life insurance claims and all insurers have procedures in place to process claims on their policies.

Before taking out a policy it is advisable to contact your prospective insurer and ask about their claims history. Note their willingness to provide this information and the attitude promoted by their response. Do they look for reasons to pay claims or excuses to avoid them?

Financial Strength

When selecting or evaluating a UK life insurance company, a logical place to begin is by reviewing the ratings given by major insurance company rating services such as Standard & Poors and AM Best. In a rating, the rating company or agency expresses its opinion of the life insurance companies financial condition.

Best Places to Compare Life Insurance

noreply@blogger.com (Alice) — Thu, 27 Nov 2008 15:51:00 +0000

To help you get the most life insurance for your money it's important that you take time to compare life insurance rates. And the best place to do that is on the Internet. Here's how to do it quickly and easily.

The Internet as Your Source for Life Insurance

The Internet is an ideal place to search for life insurance because it's easy and fast. Unfortunately, it can also be overwhelming. There are hundreds of insurance companies available for you to choose from. How do you know which companies are financially stable? How do you know which companies offer good service? How do you know which companies offer the best rate?

To help you sift through your many choices use an insurance comparison website. Such a website offers several advantages:

* All the companies on the website are A-rated or higher, so you know they are financially sound and stable.

* You can get fast quotes from several companies at one time, so you can compare them and see the differences in their rates.

How an Insurance Comparison Website Works

When you go to an insurance comparison website, you'll begin by filling out a simple questionnaire. This questionnaire will ask questions about how much and what type of insurance you want, as well as questions about your health and lifestyle. It's important that you be accurate and truthful.

Permanent Life Insurance

noreply@blogger.com (Alice) — Tue, 25 Nov 2008 22:28:00 +0000

Unlike term life insurance, permanent insurance policies such as universal life, variable universal life and whole life provide long-term financial protection. This type of insurance will cover you for the duration of your life and continued on time premium payments. Permanent policies provide you with not only a death benefit but in some situations a cash savings. It is because of these extra perks that permanent life insurance tends to be more expensive than term life.

Some features of permanent life insurance also include level premiums so you want to purchase this type of insurance while you are considerably young and in good health. This will help decrease the cost of your premiums.

Permanent policies can also produce dividends. You earn dividends when your premiums turn out to be higher than your actual life insurance costs. If this is the case your insurance company may opt to pay you the difference in the form of a dividend. Because it is difficult in predicting your actual costs, dividends are not guaranteed.

Guaranteed cash values are another plus to purchasing permanent life insurance. Some of the cash you pay into your policy may accumulate as a guaranteed cash value. This means if you cancel your policy these cash values become yours. Or you could simply borrow against them as a policy loan while your policy is still in effect. The actual quantity of your guaranteed cash value is dependent upon the kind of policy you purchased, its size and the length of time you’ve had it. When borrowing against your cash value you must remain cognizant of the fact that the amount you borrow will decrease your death benefit and your guaranteed cash value.

Although permanent life insurance is more expensive than term life insurance there are methods of getting the most included in your policy for the least amount of money. Don’t just purchase the first policy you are offered, as with anything else you purchase shop around for the best rates. Purchase an appropriate amount of life insurance; don’t buy an excessive amount if not absolutely necessary. As stated earlier buy insurance while you are young and in optimal health, don’t wait until you find out you have a medical condition and suddenly decide you are not invincible and may need to purchase life insurance after all. If you smoke quit, if you drink do so in moderation. If you are overweight start exercising and watch your diet. If your employer offers life insurance, take it. These group insurance plans often are much cheaper than individual policies and in most cases you may not have to submit to a physical health screening.

Mortgage Life Insurance

noreply@blogger.com (Alice) — Mon, 24 Nov 2008 18:30:00 +0000

The following article includes pertinent information that may cause you to reconsider what you thought you understood. The most important thing is to study with an open mind and be willing to revise your understanding if necessary.

Owning a home is a dream for most of us, although it is an expensive one. The monthly payments usually take up a big slice of our monthly income, and the sudden loss in the event of you or your spouse's early death may leave your survivors unable to make payments. To make your family is protected from financial hardship, consider Pick-a-Term Mortgage Protection insurance.

Pick-a-Term Mortgage Protection has a descreasing death benefit to match your mortgage balance at the beginning of each year. And because the death benefit decreases along with your mortgage balance, the cost of Pick-a-Term is less expensive when compared to non decreasing term life insurance.

The information about mortgage life insurance presented here will do one of two things: either it will reinforce what you know about mortgage life insurance or it will teach you something new. Both are good outcomes.

Life Insurance: Decreasing Or Not?

If you go to your local bank, along with the mortgage they will try and sell you what they call "mortgage insurance". This is not "mortgage insurance" but "life insurance" where they protect themselves by having you buy their policy. You need to be clear how this operates; you are paying for an expensive policy which they own and in which they are the beneficary. Further, the amount of the policy decreases though the premium remains the same. If they decreased the premium along the coverage, it may not be too bad, but they don't. The way it is now the policy decreases, you pay for it, they own it, control it and will benefit from it.

If you've picked some pointers about mortgage life insurance that you can put into action, then by all means, do so. You won't really be able to gain any benefits from your new knowledge if you don't use it.

Beginners Guide to Life Insurance

noreply@blogger.com (Alice) — Sun, 23 Nov 2008 17:40:00 +0000

Death is a subject that most of us don't like to ponder on too often. Unfortunately, death is something that happens to us all, so it pays to be prepared.

Having adequate life insurance provides you with the peace of mind in knowing that in the event of your death, loved ones will be provided with financial support.

The different types of life insurance available include...

Level term insurance - this type of cover is designed to pay out should the policy holder die during the term of the policy. The payout amount is guaranteed to remain the same throughout the term.

Decreasing term life insurance - the amount made available decreases at the same rate that the mortgage is paid. This type of insurance ensures that in the event of terminal illness or death, a lump sum that can adequately cover the mortgage is made available. For example, if the policy holder has a 25 year mortgage for £125,000 and the policy holder dies 20 years into the mortgage with £10,000 left to pay, then the life insurance would pay that remaining £10,000

Convertible term insurance - this is the same as level term insurance with the added option to revert it to an endowment policy

Renewable term insurance - this option allows you to renew the police on the date it expires without the need of taking a health review.

Index linked term insurance - this policy means the life insurance payout increases each year in relation to the RPI (Retail Price Index).

Apply Online For No Medical Term Life Insurance

noreply@blogger.com (Alice) — Sat, 22 Nov 2008 20:41:00 +0000

When you think about medical term life insurance, what do you think of first? Which aspects of medical term life insurance are important, which are essential, and which ones can you take or leave? You be the judge.

There has been a relatively overwhelming demand for no medical term life insurance policies all over the world, especially in the United States. Most people seeking life insurance coverage are not interested in dealing with the hassles associated with facing medical exams, because dealing with a doctor and the out of pocket costs that may be associated with the medical exam is a waste of time and money in the eyes of most people.

Who Benefits from No Medical Term Life Insurance?

Senior citizens, who in the past have been risky or difficult to insure because of the commonality of medical issues, are now finding it easier than ever to get the insurance that they need. This is because it can be applied for through a variety of term life insurance companies and providers. In fact, most these policies are open for people aged between 25 and 80.

There are a variety of different options available to you when you decide to explore life insurance policies. However, there are some pitfalls in place that you need to keep in mind. There are a lot of unscrupulous providers out there who are looking to lure you into their traps. Some no medical term life insurance policies seem attractive at first but do not offer everything that they promised.

Choosing an Online No Medical Term Life Insurance Company

You can see that there's practical value in learning more about medical term life insurance. Can you think of ways to apply what's been covered so far?

While there are relatively no risks involved with obtaining term life insurance quotes online from a reputable company, the Internet has made it easier than ever for people to find quotes. With the ease and the convenience of a simple click of the mouse, one can find a wealth of information regarding policies and all of the options that are available to you.

You find multiple options for term life insurance with no medical exam to choose from online. You will also find a wealth of information relating to the providing agencies and the different policies that you can choose from. You need to make sure that you go over all of the conditions and terms relating to the insurance policies that you choose so that you do not end up with hidden expenses. For example, make sure that you understand everything involved before you sign on that dotted line.

Obtaining no medical term life insurance quotes has become so simple now, that it can take five minutes or less to obtain the quote that you need. You should pursue credible online companies for quotes that have had a web presence for at least a few years. If you look closely at their site it should say somewhere how long they have been online and make sure there is a toll free number to call. Good Term life insurance rates can vary depending on the provider that you choose, so make sure that you choose a company that demonstrates they will be with you for the long term. That is, online for at least five years, a number you can call and actually speak with someone and pay particular attention to whether or not they have an educational content section that help you understand what you are purchasing.

Term Life Insurance Application Process

The application process for no medical exam term life insurance can be done completely online. You may be asked a series of basic questions relating to your health overall, but this questionnaire is not nearly as invasive as the medical exam that is required for most traditional term and whole life insurance policies. Once you select a plan, you can apply using basic information about yourself, and then you will most likely be approved as long as you meet the basic requirements for the plan you are applying for.

Applying for no medical term life insurance policies online is simple, straightforward and easier than ever for people of all ages. And the best part of all it only takes about five minutes to complete the process.

Now you can understand why there's a growing interest in medical term life insurance. When people start looking for more information about medical term life insurance, you'll be in a position to meet their needs.

Senior Life Insurance

noreply@blogger.com (Alice) — Fri, 21 Nov 2008 20:27:00 +0000

In today's world, it seems that almost any topic is open for debate. While I was gathering facts for this article, I was quite surprised to find some of the issues I thought were settled are actually still being openly discussed.

Senior life insurance has become a hot topic lately and has really gained a lot of popularity. The fact of the matter is if you're going to purchase life insurance, the older you get the more expensive it will be. However, this does not mean that you do not have options. In this article, we'll talk about some of the different aspects of senior life insurance.

There is no denying that life insurance benefits are a great way to provide financial assistance for your loved ones after you pass away. Even if you already carry insurance, this can give you additional coverage to your beneficiaries.

In fact, many seniors have found that the policy that they purchased years ago is now inadequate and insufficient for the current times. With inflation and the cost of living increasing over the years, it may be time to consider extending your coverage.

It seems like new information is discovered about something every day. And the topic of life insurance is no exception. Keep reading to get more fresh news about life insurance.

Also, the costs and expenses of a funeral and everything associated with it have continued to increase year after year. Because of all these reasons, senior life insurance has become increasingly necessary for many of today's retirees.

A term life policy is the best low-cost option for most all seniors. However, keep in mind that it will expire after a certain term, usually 10, 20 or 30 years. This is an ideal situation for those who feel that they will be free of their obligations financially, in the near future.

Other options you have include guaranteed life insurance or final expense life insurance. These are very similar to whole life policies and do not expire. The only requirement is that you'll need to continue paying on the premiums in order to keep the policy paid up. In fact, you can pay many years in advance so that you do not have to worry about covering the premium.

These final expense policies do not require medical exams before being approved for them. The fact of the matter is that the face value of these policies is lower, so the requirements to get these policies are also lower. The insurance companies take less risk and so therefore it is easier for you to qualify and get good rates on these types of insurance policies. These are generally your best option when you only need coverage for a funeral.

Now that wasn't hard at all, was it? And you've earned a wealth of knowledge, just from taking some time to study an expert's word on life insurance.

Turn Your Annuities To Cash Quickly

noreply@blogger.com (Alice) — Fri, 21 Nov 2008 15:52:00 +0000

When you're learning about something new, it's easy to feel overwhelmed by the sheer amount of relevant information available. This informative article should help you focus on the central points.

Converting your annuities to cash is a great choice if you don't want to wait for monthly installments. There are many good reasons to sell your annuity - you may want to buy property, pay for college, or simply save it for emergencies. But for most people, the reason is obvious: you can get your money now use it any way you want.

It's also a good alternative to bank loans if you need immediate cash. You can sell your annuity in as little as two weeks, while a bank will make you wait a month or more. And it doesn't leave you with debt, since you are not borrowing - you're just converting your own annuity to cash.

Still, annuity selling is always a major decision; after all, you're basically giving up an assured income for the rest of your life. But if you plan ahead and know how to go about it, changing your retirement annuities to cash can be even more profitable. Here's how it works.

Selling your annuity starts with finding a buyer or investor, whose job is to assess and change annuities to cash. To do this, they will consider several factors such as interest rate, balance, running time, and payment history. Not all buyers will give you the same quote, so it's best to ask around to get the best prices.

One thing to remember is that cash payouts are always lower than the annuity's face value. When you convert your annuity to cash, your buyer assumes the risks that come with it, such as inflation and falling interest rates. If the annuity loses value, your buyer will have to pay the difference. This risk is calculated against the purchase price of your annuity.

It's really a good idea to probe a little deeper into the subject of annuities. What you learn may give you the confidence you need to venture into new areas.

But despite the lower payout, many people still opt to change their annuities to cash. This is because of the time value principle: money is always worth more today than it will be tomorrow. Getting your money today is not the only advantage to selling - it also gives you more room to earn. Here's how.

For example, an annuity worth $100,000 may have depreciated to $70,000 by the time it matures. If you convert your retirement annuities to cash for about the same amount, you can invest it somewhere else and let it earn interest. That way, in the time it takes to get the full payout, your new investment will have earned enough interest to make up for the difference.

If you don't need a large lump sum for now, you can also sell just a portion of your annuity. In a partial sale, you exchange part of your annuity to cash and leave the rest of the payments intact. This is also a great option if you want to keep getting monthly payments, or would like to keep the interest rate on your current contract. It's also possible to convert several annuities to cash in one payout.

Look for a buyer who works with different cash flow notes such as mortgage, business notes, and land contracts. This way, you can pool all your investments into one for easier management and less risk. There are many other ways to arrange the sale, so make sure your buyer discusses them all with you.

Remember, how much you make from the sale depends largely on your buyer. Make sure your buyer is a professional buying company, preferably with extensive experience in converting annuities to cash. Ask for client references, check with the Better Business Bureau, and don't agree to pay any upfront fees. Most professionals won't charge to review your annuity and give you a quote.

Changing your retirement annuities to cash can help you protect your investment and do more with your money. A steady income may sound more practical, but you never know what opportunities you'll miss with your money locked in.

Hopefully the sections above have contributed to your understanding of annuities. Share your new understanding about annuities with others. They'll thank you for it.

Two Main Types Of Annuities

noreply@blogger.com (Alice) — Wed, 19 Nov 2008 17:21:00 +0000

Are you thinking about buying an annuity? Before you make a decision, search some main terms.

What is an annuity?
How are annuities different from life insurance?
What is a deferred annuity?
What is a immediate annuity?

In its most general sense, an annuity is an agreement for one person or organization to pay another a stream or series of payments. Usually the term "annuity" relates to a contract between you and a life insurance company, but a charity or a trust can take the place of the insurance company.

Both annuities and life insurance should be considered in your long-term financial plan. While both include death benefits, you buy life insurance in the event you die too soon and an annuity in case you live too long. In other words, life insurance provides economic protection to your loved ones if you die before your financial obligations to them are met, while annuities guard against outliving your assets.

There are two main types of annuities-deferred and immediate. There are two main types of life insurance-term and whole life.

A. The main reason for buying term life insurance is to provide income for dependents. Pays out when you die.
B. The main reason for buying whole life insurance is to provide income for dependents or meet estate planning needs. Pays out when you die, borrow the cash value or surrender the policy.
C. The main reason for buying deferred annuities is to accumulate money in a tax-deferred product. Pays out when you make withdrawals
D. The main reason for buying immediate annuities is to assure you don't "outlive your income"

Pays out when one period after you buy the annuity, stops paying when you die* There are many categories of annuities. They can be classified by:

* Primary purpose - accumulation or pay-out (deferred or immediate)
* Nature of the underlying investment - fixed or variable
* Nature of pay-out commitment - fixed period, fixed amount, or lifetime
* Tax status - qualified or nonqualified
* Premium payment arrangement - single premium or flexible

ULIP's-Unit Linked Insurance Plan

noreply@blogger.com (Alice) — Tue, 18 Nov 2008 17:57:00 +0000

UNIT-linked insurance plan which is popularly known as 'ULIP' is the flavour of the season. The conventional Insurance policies have a fixed relationship between the premium and the sum assured. Whereas ULIP allows the policyholder to choose his own sum assured within certain limits, for any given premium. The policyholder may then have the right to adjust his sum assured up or down, again within certain limits according to his circumstances.

Features of a Unit Linked Insurance Plan
Unit linked insurance plan (ULIP) is life insurance solution that provides for the protection and flexibility in investment. The investment is denoted as units and is represented by the value that it has attained called as Net Asset Value (NAV). The policy value at any time varies according to the value of the underlying assets at the time.

ULIP provides multiple benefits to the consumer. The benefits include:
" Life protection
" Investment and Savings
" Flexibility - in Sum assured, to increase the sum assured, investment, etc
" Adjustable Life Cover
" Investment Options
" Transparency
" Options to take additional cover against - Death due to accident, Disability, Critical illness etc
" Liquidity
" Tax planning

Unit linked Insurance plan provides insurance protection against the risk of death combined with a provision for long term investment in the equity market, which are structured differently. ULIPS are basically an investment type of plan, wherein the Life assured decides the quantum of contribution which he can set aside on a regular basis towards premium. He also has the flexibility to decide the risk cover, i.e the Sum Assured for his policy.

Based on the Sum assured and the contribution for the policy, insurer deducts charges towards life insurance mortality charges i.e, risk premium, administration charges and fund management charges. The rest of the premium is invested in funds that invest money in stocks or bonds.

The policyholder's share in the fund is represented by the number of units held in his account. The value of the unit is determined by the total value of all the investments made by the fund divided by the total number of units.

At any point of time i.e., maturity or surrender, the cash value will be equivalent to the number of units held by the insured multiplied by the unit price. In case of death claim, it will be unit value, plus the sum assured if any under the policy.

Pricing of Units

Method of pricing the units depend on whether the company is purchasing or selling assets (stocks). While purchasing of assets the units will be priced on Appropriation basis and while selling of assets the Expropriation basis of pricing will be applied.

Different method of pricing is adopted to safeguard the existing policyholders from the inflow and outflow of funds due to purchase/sale of units.

Appropriation Price
This will be applied when the fund is expanding. In this method of pricing, the unit price is calculated as follows:

Unit Price = (Market value of fund + expenses for purchase of assets + current assets + income - charges - current liabilities) / Number of units in the fund.

Expropriation Price
Expropriation Price will be applied when the fund is contracting. In this method of pricing, the unit price is calculated as follows:

Unit Price = (Market value of fund - expenses for sale of assets + current assets + income - charges - current liabilities) / Number of units in the fund. The bid/offer spread

There are two different prices for a stock. One is a Bid price and the other is Offer price. Bid price is the price at which you can sell the shares and the offer price is the price at which you can buy them. The first is always lower than the second, and the difference between them is called the spread.

Insurance companies offer a range of funds like Growth Fund (Equity Fund), Balanced Fund, Secured Fund, Income Fund etc. The insured can direct the company to invest his contribution in the fund of his choice.

Balanced Fund

This type of fund buys a combination of common stock, preferred stock, bonds and short-term bonds, to provide both for income and capital appreciation while avoiding excessive risk. Such diversified holdings ensure that these funds will manage downturns in the stock market without too much of a loss.

Growth fund

This fund aims to achieve capital appreciation by investing in growth stocks. They focus on companies that are experiencing significant earnings or revenue growth, rather than companies that pay out dividends. The hope is that these rapidly growing companies will continue to increase in value, thereby allowing the fund to reap the benefits of large capital gains. In general, growth funds are more volatile than other types of funds, rising more than other funds in bull markets and falling more in bear. Income fund

This fund emphasizes on current income in the form of dividends or payments from bonds, rather than emphasizing growth. Income funds are considered to be conservative investments, since they avoid growth of stocks.

How is it different from conventional insurance plan?

Unit-linked insurance plans are distinct from the more familiar 'with profits' policies sold for decades by the Life Insurance Corporation. In conventional insurance plans, the sum assured is decided by both the insured and insurer jointly. Insured will opt for a sum assured based on his family's requirements and the insured will agree to that sum assured based on the insured's repaying capacity. 'With profits' policies are called so because investment returns (profits) are distributed to policyholders in the form of a bonus, which is declared on a yearly basis based on the Company's performance in a year.

In 'with profits' policies, the insurance company credits the premium to a common pool called the 'life fund,' after setting aside funds for the risk premium on life insurance and management expenses.

Every year, the insurer calculates how much has to be paid to settle death and maturity claims. The surplus in the life fund left after meeting these liabilities is credited to policyholders' accounts in the form of a bonus.

In both 'with profits' policies as well as unit-linked policies, a large part of the first year premium goes towards paying the agents' commissions and other expenses of the management.

But Unit linked polices has an edge over other forms of insurance because -
" Liquidity is high,
" Return on Investment is high,
" investor knows exactly what is happening to his money,
" investor can choose the assets in to which his funds are to be invested
" investor gets the same returns that the fund earns, he also bears the investment risk.
" transparency makes the product more competitive.

ULIPs claim to give an investor the best of both worlds - high returns and risk cover.

Top Ups

Insurance companies allow an insured to make lump-sum investments in excess of the regular premiums. They are called top-ups and are charged at a much lower rate - usually one to two per cent. The expenses incurred on a top-up including agent commissions are much lower compared to the regular premiums.

Some insurers, like Aviva, also give credit on top-ups. For instance, if you pay in Rs.100 as a top up, the actual allocation to units will be for Rs.101 instead of Rs.100. If we keep the regular premiums to the minimum and increase the top ups, we can save up on charges, enhancing returns in the long run.

Switching

Most of the Insurers provide switching facility. Switching refers to sweeping of funds either partially or fully from one fund to another. This is subject to certain charges and completion of minimum period from inception of policy. Normally insurers maintain multiple funds consisting of varied portfolios and the policy holder is free to choose his fund type.

After sometime if the assured wants to move his fund to another fund owing to the increased returns, security of funds etc. he is free to switch his funds.

Conclusion

In the changing scenario of economic development where the globe has shrunk to a village, everyone has to seek the ways and means of exploiting the opportunity to one's best ability. Insurance companies give this opportunity to small investors who have money but lack intelligence in the field of investment in the capital market. Unit linked products help small investors also to play a role in the share market with minimum risk and maximum profit.