Life Insurance Online

AIG Life Insurance - Agent Marketing Reflections

noreply@blogger.com (share info) — Tue, 20 Jan 2009 09:56:00 +0000

AIG Life Insurance Company, as part of the American International Group, was the global international leader in the financial services industry. This giant has various operations in over 100 countries with additional services that include property casualty insurance, asset management services, and purchasing and underwriting subprime loans. Without the massive and controversial United States bailout, it would be in bankruptcy.

AIG has lost their coveted super high insurance ratings, where the major rating firms annually miscalculated their business practices. Now they have begun a reorganization that will constitute major selloffs while refocusing on once again becomes a dominant insurance company. Stockholders saw stock prices plummeting from its high by over 90% before now starting to stabilize.

Your big AIG question should be: Has AIG learned their lesson? Moreover, if you now or previously represented them, Have You learned your lesson?

Five things contributed to the choice of many American insurance reps to sell their insurance products to clients.

1. GREED Selling term insurance offered by AIG Life Insurance provided representatives with commission payouts often 20 to 30% higher than other major competitors.

2. SIZE Insurance representative implied to prospective clients that dealing with the largest company, meant it had to be the best. Otherwise, how could it be the largest?

3. RATINGS Many insurance reps only will sell products of the highest rated insurers. They tell themselves and clients that means financial security. Well the atomic rating bomb has exploded, injuring millions.

4. PRICE The easiest way to sell term life insurance, is to offer your prospect the lowest price on the market. Do clients buying AIG Life coverage live longer so rates are lower? Are AIG internal expenses lower, so rates are lower? (Like an expensive resort meeting in Arizona funded by American taxpayers) Do they pay their reps less? (See #1) A full combination of these would be the only way rates could be lower then competitors.

5. BUYING BUSINESS The quickest way to jump the ladder to rise upward, is for an insurance company to "buy business". As the insurance company, you attempt to give as many clients now by whatever it takes to get more policies sold, and worry later about when claims have to be paid out. Baiting the hook was easy. Sucker in agents with higher commissions, the lowest term insurance rates, and thinking they were representing the smartest insurer out there.

AIG Life Insurance is still "buying business" today, after all the turmoil of internal problems. Watch television and you will see a closely affiliated company offering term life insurance at rates up to 70% less than others. If you somehow catch the fine print, you will see AIG mentioned as the insurer. An excellent way for AIG Life Insurance to bypass insurance representatives, and still fool consumers. A slight twist, but business as usual for them.

Selling insurance to clients should reflect the conscience of an insurance representative in recommending the right product and the right company. There are over 600 life and health insurance companies offering products in almost every state. If you are selling based highly on commission rates, company size, ratings, or price, you are probably doing a disservice to your clients.

THE BEST POLICY IS HONESTY

Well published author, Don Yerke likes to concentrate on what you don't know or what no one else dares to print. Tell it like it is. The website address is http://www.agentsinsurancemarketing.com Get your FREE "Think and Grow Rich" Ebook by Napoleon Hill.

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Insurance Sales Coach - The Path to Insurance Sales Success

noreply@blogger.com (share info) — Tue, 20 Jan 2009 09:52:00 +0000

If you keep doing what you're told to do you're doomed. If you're like 85% of your fellow producers, your career will end within your first 18 months. Of those making it 5 years the majority will burn out and give up. Thus if you keep doing what you're told to do you aren't likely to succeed.

Doing what you're doing now guarantees a life of chasing after prospects who don't want to talk to you, scraping to cover your bills each month, and living commission check to commission check. Most producers aren't in the business long enough to even get a residual commission. If you want to eat you have to hunt fresh meat every single day.

While it's great for the insurance companies if you continually sell new policies to new people it isn't necessarily so great for you. That's a hard life few can sustain even if they're able to generate a livable income. Of course, the livable income is where the wheel comes off the wagon for most.

Many newbies innocently do exactly what they're told to do by their sales manager because they think the sales manager knows how to succeed in the business. Plus they believe the insurance company wants them to succeed. In other words, you buy into not one but two fallacies. First, the insurance company doesn't care if you succeed there's another new agent coming on line to replace you as you read this. Plus if you fail they get to keep all the on-going earnings the policies you wrote generate long after you're gone.

The second fallacy is your sales manager knows how to succeed in the business. If your sales manager were a super producer that sales manager would have a thriving business and wouldn't want to be a sales manager. They're struggling to pay their bills just like you and they think taking on this sales manager's position will help them cover their expenses.

This is how it is, but it doesn't have to be that way for you.

This is your business, your future, your family that's on the line. Take responsibility and follow a path that leads to real insurance success. If you want to develop a successful insurance business one you can both sustain and enjoy there are a few things you'll need to do. These are the things that will produce a path for your insurance sales success:

* Discover how to market yourself so the people you want to sell to contact you
* Narrow your focus and expand your expertise to better meet the needs of a select group of people
* Develop a message that resonates with what your best buyers want to get, what they want to avoid, or what they want solved
* Develop automated systems that transition strangers to clients
* Develop automated systems to earn both repeat business and referrals from existing clients.

You see you can't sell insurance until you know how to sell insurance. You'll never learn how to sell insurance doing it the way you're told to do it. You can choose to develop a business that produces real results or you can continue to eke out a bare minimum existence one commission check to the next. You can have your sales manager breathing down your neck or you can have your sales manager chasing after you begging you to tell how you're producing the results you're producing. As always the choice is yours.

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Increase Sales Coach Cheryl A. Clausen Gets Results Sales Training Can't BECAUSE it's never just a sales issue

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BC Homeowners Face Tough Times When Flooding Strikes

noreply@blogger.com (share info) — Sun, 18 Jan 2009 15:02:00 +0000

Residents of Southern BC have faced tough weather conditions this winter, with buckets of snow wreaking havoc on transportation arteries throughout the mainland as well as Vancouver Island. Rising temperatures and heavy rains are now causing the snow to melt quickly, which is overwhelming waterways and flooding streets and houses.

Chilliwack, for instance has declared a State of Emergency due to dangerous flood conditions. Mudslides are also hitting some homeowners in the Fraser Valley, putting not only property, but lives at risk. The melting snow and rain have caused an overflow in Victoria's sewage system, which has resulted in untreated waste flowing into the waters of the eastern coastline.

With flood waters hitting so many BC communities, homeowners need to know what to do to protect their homes in the event of a flood.

The first thing that BC homeowners need to be aware of is the fact that natural flooding is not covered by standard homeowners insurance. In the event that your pipes burst or city water mains fail, you will be covered for any water damage incurred, but cases of overland flooding are not covered.

According to the Insurance Bureau of Canada, flood insurance is not available in BC because it would not be cost effective. In general, only those who live in high risk areas are willing to pay for flood insurance, which means that insurance premiums would cost homeowners a mint. Flood insurance would only be feasible if more people were willing to pay for it; it would even out the mix of high- and -low risk policy holders, making it a more viable venture for providers.

Some areas are now eligible for financial aid under the Disaster Financial Assistance Program, which is run by the Ministry of Public Safety. This plan is designed to assist homeowners and small business owners whose property has been damaged from an event that is not covered by standard insurance, such as overland flooding. Those who qualify for assistance can receive up to 80% coverage for damages that are between $1000 and $300,000.

Areas that have been approved for assistance from the recent floods and mudslides include Abbotsford, Chilliwack, Surrey, Langley, the Fraser Valley Regional District, and communities along Southern Vancouver Island. If you live within one of these areas, you must submit an application within 90 days of the approved event. To apply, visit the Provincial Emergency Program website at pep.bc.ca.

If you're concerned about flooding in your own home, the best thing you can do is to minimize the amount of water that can get inside the house. If possible, have sewer backflow valves installed to keep floodwaters and sewage from backing up into your drains. If this isn't feasible, you can minimize backflow by stopping all drains with drain plugs, weighing down your toilet lids to keep them closed, and disconnecting dishwashers and washing machines.

Line up sandbags around the perimeter of your home and in front of any vents or openings. If you can't find sandbags locally, fill pillowcases with soil from your garden.

Move everything of value (including important documents) to higher ground. If you have more than one story, move everything to the highest floor. Appliances and furniture should be raised as high as possible, and you should be prepared to turn off gas, water, and electricity. Make sure to have food supplies, bottled drinking water, flashlights, medications, batteries, and a first aid kit with you on an upper floor, and don't forget to grab your pets, some food for them, and a litter tray.

At http://www.VancouverPropertyFinder.com, the best Vancouver houses are at your fingertips. You can browse real estate listings or perform a customized search for homes throughout the Greater Vancouver area, including the East Hastings real estate market.

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Disaster Preparation - Flood Insurance

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

Many people are unaware or apathetic to the risk of a flood in their area. Flood damaged homes and businesses can cost hundreds of thousands of dollars if proper protection is not taken. Most people living in highly risk areas for flooding will inevitably purchase flood insurance. But what kind?

It is often hard to know what kind of a policy you should invest in. Many home and business owners are unaware of what the typical cost for such coverage is and what the benefits of the coverage can be. To find the right insurance for you, it is important to understanding a little bit about what flood coverage is, what kinds of policies exist, and, most importantly, what coverage fits for your particular flood risk.

What is Flood Insurance?

There are three basic types of flood insurance:

Dwelling
"Dwelling" insurance usually covers residential buildings that contain no more than four families, residential condominium units, manufactured homes, and the storage contents of the insured building's tenants.

General Property
"General property" policies tend to cover larger residential buildings like those that house more than four family units as well as certain commercial buildings, such as churches, schools, and small businesses.

Preferred Risk
"Preferred risk" policies are generally offered at a lower cost to residential and commercial building owners with a low to moderate flood risk levels.

Why Get Flood Insurance?

Many people don't feel the need to protect themselves with flood insurance because of their location or the construction of their home. What these people don't understand is that even a few inches of standing or moving water can cost thousands of dollars in infrastructure and restoration work. Flood insurance not only helps cover the financial burden of flood damage but many providers can help you find other disaster relief services, such as document restoration specialists.

Questions For Your Agent

Like any major purchase, it is important to understand what you will get and what the complete costs are up front. Take the time to ask your agent questions so that it is clear how your coverage will work.

Here are questions you should make sure you know the answers to when discussing policies with your insurance provider:

• Do I live in a flood zone? If so, how will my location affect the cost and benefits of my policy?
• What will be covered by my new flood policy and what won't be covered?
• How much is the cost of the policy fee and premium, and are there hidden expenses or fees I need to know about?
• Do I need coverage for my building only, its contents only, or both?

Filing a Flood Damage Claim

Contact your insurance agent or company as soon as you realize that you have flood damage. Make sure you have the name of your insurance company and your policy number in an easily-accessible place. This will help speed up the filing process. You insurance provider will then schedule a visit with a claims adjuster and advise you on how they will proceed with your claim.

After you've contacted your agent you will need to make a list of all damaged or lost valuables. Separate your damaged goods from the undamaged ones and, with the help of your adjuster, start itemizing and calculating the value of the destroyed property.

Purchasing the right flood insurance doesn't need to be an overwhelming experience. With a little research and an honest agency you can find an affordable plan that will cover your valuables should the unthinkable occur.

~Ben Anton, 2008

Restoring your home after a natural flood water disaster is overwhelming. Talk to a professional at Rapid Refile about recovering damaged documents, photos and materials after a flood.

Article Source: http://EzineArticles.com/?expert=Ben_Anton

Water Damage FAQ

noreply@blogger.com (share info) — Sun, 18 Jan 2009 14:58:00 +0000

What causes water damage?

The most obvious causes of water damage, and those that cannot be avoided, are severe forces of nature, such as hurricanes or floods. Water damage also can occur when a fire is extinguished, from leaking pipes, and malfunctioning washing machines and heaters, as well as leaks in your roofing and siding and from defective gutters, which will cause water to pool around your property and potentially leak into your basement.

What areas of my property should I watch regularly for damage?

Water damage can occur in every area of your home and property, but there are certain areas that, if damaged, are more problematic and should be watched closely. Check the plumbing pipes and connections in your home's bathrooms and kitchen as well as any pipelines in your basement or crawl spaces for standing water and leaks.

What are some hidden signs of water damage?

Some of these signs include peeling paint and wallpaper, splotches of mold, moisture and condensation, a musty smell and moisture in your carpet or other flooring.

Are there any tools or pieces of equipment that are important for detecting and dealing with water damage?

Moisture detectors are important since moisture can cause mold growth and poor air quality. Leak detectors are used for finding hidden water leaks, including those in walls and crawl spaces. Other tools you can use are dehumidifiers and water extractors to help repair water damage.

What actions do I take when I first notice the damage?

Immediately following a water-related incident, call your insurance provider to inform him/her of the damage. If your home is severely damaged, determine whether it is structurally safe to enter. If not or you are unsure, immediately make arrangements to stay elsewhere.

What steps can I take to minimize the damage?

If your home is structurally sound and before the restoration professionals arrive, turn off your home's power, water and natural gas supplies. Cover damaged windows, doors, walls and roof areas with plywood or plastic sheeting to protect your interior from the elements.

Does water damage cause mold?

Water damage certainly has the potential to cause the growth of mildew and mold. Because mold thrives in moist and warm environments, any place that is wet (and especially humid) is a perfect place for mold to grow.

How can I prepare for expected water intrusion from a storm?

The best way to keep water from becoming a major problem is to prepare your property before the damage occurs. One thing you should be sure to know is how to cut-off the power in your home in case of a flood. Water and electricity are a deadly combination.

How can I help speed the repair of my home and property after a storm?

Documenting your property's damage and relaying the information to your restoration professional can make for a speedier repair. Inspect the exterior of your home for damage. Check out your roofing structure and document any shingles missing or in need of repair. Also note if your chimney or the flashing surrounding it is damaged or missing and list any damages to your gutters. Check your home's siding for warped or loose boards. Note signs of water intrusion through your home's windows and doors and don't forget to check the access points to your basement.

How can I remove standing water easily?

The first step to removing standing water from within your home is to sweep it outdoors. Any standing water left on carpeted areas should quickly be removed with a wet-vac. The removal of standing water is crucial for salvaging your home's carpeting and could save you money.

How does the water removal process work?

Several steps are taken to remove water from your property in the event of a flood, hurricane or other water-related disaster. First, the water will be removed from the property. Once the water is removed, a dehumidification process will begin to dry the wet areas. Next, evaporation of the water will occur, and, finally, the air will be tested to ensure that all water and moisture is gone from the property and won't cause any further problems.

Other processes involved with water damage restoration include wet carpet restoration, odor control, fabric restoration, mold remediation, and dry wall and wood floor restoration.

What are the different categories of water?

There are three basic categories of water. The type of water in your property will help determine the extent of the damage and how the water will be removed.

The first category of water is clean water than poses no harm to people. This includes water damage caused by a sink or bathtub overflow or an appliance malfunction.

The second category of water is called gray water. This category includes water that has a significant amount of contamination, which can be chemical, physical and/or biological. Gray water can cause harm and illness to those who are exposed to or drink it.

The third category of water is known as black water. This water is very unsanitary and contains pathogenic agents coming from other contaminated water sources. It can cause discomfort and illness to those who are exposed to or who drink it. Black water can come from sewage and flood waters from rivers and streams.

What should I do to protect my valuables?

If your home is too damaged to secure, remove valuables to a storage facility or the home of a trusted friend or family member. If your home is secured against intrusion, transfer valuable belongings to a safe and dry place within your home. Relocate water-damaged items, such as furniture, clothing and rugs, to an area of your home that is dry.

Does home maintenance really make a difference in preventing water damage?

Even the most highly conceptualized and well-built home cannot protect you 100 percent from water intrusion and the resulting damage, but a well maintained home can protect you from most water incidents, excluding severe emergencies. Routine maintenance and seasonal inspections of roofing and siding as well as other vulnerable areas can pinpoint potential problems before they can allow for water infiltration and damage.

How do I hire a professional restoration company?

Hiring a professional restoration company is important to ensure proper care for your property. Most insurance carriers will specify a list of restoration companies available to you and some may allow you to choose a restoration company from your own research.

Professional restoration companies will have available to you a list of industry organizations to which they belong and certifications they carry. Many professional restoration companies will also have examples of their work for you to view. In the case of disaster restoration, checking references may not be advantageous. But, rest assured that industry associations have strict guidelines and verify that members follow them.

ACCORD Restoration specializes in clean-up, repair, restoration and rebuilding after fires, floods, storms or natural disasters. We offer reliable, 24/7/365 emergency services carried out with expert craftsmanship.

To learn more visit http://www.accordrestoration.com/

Article Source: http://EzineArticles.com/?expert=Frank_Nemshick

Flood Damage Update - Top 10 Mistakes When Buying Flood Damage Insurance

noreply@blogger.com (share info) — Sun, 18 Jan 2009 14:56:00 +0000

What do you mean I'm not covered for flood damage? Unfortunately that's what millions of homeowners are saying each year with shock and sometimes horror.

Of course they never thought it could happen to them, after all they don't live in a flood zone. But nevertheless they experienced a record rain storm, sewage backup or county flood control failure. The good news was know one was injured, the bad news is they didn't purchase the right flood insurance policy or worse - they had no policy at all.

To help you avoid this fate, here's the top 10 mistakes most people make when it comes to buying flood damage insurance.

1. Assuming you need to live near a large body of water, a flood zone or low lying areas to benefit from flood insurances.

Most floods are caused by several different causes aside from living near a large body of water. For example, rain, snow or ice storms, hurricanes, and water or sewage backup, in addition to dam or other flood control failure and more.

2. Assuming your standard home insurance policy covers flood damage.

This is one of the biggest reasons why it's so important to stay educated and up-to-date on insurance matters. Why? Because most people assume they're covered by flood or water damage in their standard insurance policy. Surprise! You're not.

The fact is most standard policies don't cover flood or most water damage. For this you'll need a separate policy or rider.

3. Assuming you can't buy flood insurance if you've been turned down by traditional insurance companies.

You can buy flood insurance as long as your community participates in the National Flood Insurance Program.

4. Assuming all flood insurance is too expensive.

The average flood insurance policy costs as little as $353 a year for coverage.

5. Assuming Federal Disaster Assistance will pay for flood damages.

Federal disaster assistance doesn't pay for flood damages. At best it can help to provide low interest loans if you qualify - and only if the President declares the area you live in a disaster.

6. Assuming you don't need flood insurance if you live in a low to moderate risk area.

Almost 25 percent of all flood insurance claims come from areas with low-to-moderate flood risk.

7. Assuming you must purchase a full flood insurance policy.

You may qualify for the Preferred Risk Policy (a lower-cost flood insurance policy) that provides contents coverage beginning at $39 per year.

8. Not finding out what's covered by Replacement Cost and what's covered by Actual Cash Value?

It's important to find this out to make the best informed decision of what kind of policy to purchase and who to purchase it from.

9. Assuming you're covered from flood damage if you rent.

Your landlords policy only insures the building not your personal property. However, you can purchase an insurance policy for your personal possessions.

10. Taking The First Policy You Come Across.

The best method of buying the most coverage for the best price is to comparison shop at least three different companies. You may be surprised at the price and/or service difference. By taking the time to follow and remember these 10 guidelines you'll avoid the mistakes many people make when buying flood damage insurance.

Roy Primm has written dozens of articles helping people save on the rising cost of insurance. To read more of his amazing insider tips and shortcuts go to HomeInsuranceAdvice.net

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Flooding - A Serious Hazard During Winter Months

noreply@blogger.com (share info) — Sun, 18 Jan 2009 14:52:00 +0000

Heavy rains are the source of major troubles throughout the world every year. Even individuals who believe they live a substantial distance from flood zones can find themselves in danger when rivers outgrow their banks or rain comes too rapidly for drainage canals to handle. Do you know what you would do if your home was assaulted by damaging floodwaters?

Even in locations away from flood zones, basements are notorious for water leakage when the winter snow melts or when the soil is completely inundated with water. One of the most significant things a homeowner with a basement can do is to make certain his or her furnace is installed on concrete blocks at least 12 inches off the ground. In many residences, furnace systems are installed directly on the floor. If your basement floods, your furnace is one of the most costly systems to replace. The elevated water will extinguish your pilot light causing a grave, if not dangerous, state with any gas-fired appliance. Electric furnaces and oil fueled furnace systems are potentially dangerous as well. It's also significant to keep water heaters, washer, dryers and other appliances out of reach of floodwaters.

If your home in not equipped with a basement, floodwater can still enter your home. During times of exceptionally heavy rain, water can accumulate and turn streets and roads into waterways where water pours into a home through thresholds. You should make certain that electrical plugs and light switches are at minimum a foot greater than ground level in your home. Think about adding ground fault interrupter switches to your outlets as a defensive measure if you live in areas where flooding is a general concern.

In certain instances, people do not even realize that they live in proximity to or in a flood zone. As rivers alter their size and shape due to erosion, flood maps also change. While living in a flood zone is supposed to be revealed during a home sale, some sellers are unaware they are in a flood zone and do not know to disclose it. Check local maps and authenticate this information to be safe.

If the home is located in a flood zone, you will be wise to purchase flood insurance. Flood insurance is costly, but if your home floods, it can save you thousands of dollars in the long run.

There are precautions you can take to help reroute any floodwaters that may come your way. Brick or stonewalls can be built. They do involve a little time, but they boost your home's value, are aesthetically attractive and can keep water from rushing towards your property.

If you live near a road that floods or where water runs off into your yard during heavy rain or snow melt, consider excavating a drainage ditch. The water will flow away from your home to the nearest stream or river and avoid flooding. Most towns and cities establish the drainage systems, so if you believe your dwelling is in danger, talk to the road commissioner about your apprehension.

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Term Life Insurance

noreply@blogger.com (share info) — Thu, 08 Jan 2009 04:33:00 +0000

Term life insurance or term assurance is life insurance which provides coverage for a limited period of time, the relevant term. After that period, the insured can either drop the policy or pay annually increasing premiums to continue the coverage. If the insured dies during the term, the death benefit will be paid to the beneficiary. Term insurance is often the most inexpensive way to purchase a substantial death benefit on a coverage amount per premium dollar basis.
Term life insurance is the original form of life insurance and is considered to be pure insurance protection because it builds no cash value. This is in contrast to permanent life insurance such as whole life, universal life, and variable universal life.

Term insurance functions in a manner similar to most other types of insurance in that it satisfies claims against what is insured if the premiums are up to date and the contract has not expired, and does not expect a return of Premium dollars if no claims are filed. As an example, auto insurance will satisfy claims against the insured in the event of an accident and a home owner policy will satisfy claims against the home if it is damaged or destroyed by, for example, an earthquake or fire. Whether or not these events will occur is uncertain, and if the policy holder discontinues coverage because he has sold the insured car or home the insurance company will not refund the premium. This is purely risk protection.

Usage

Because term life insurance is a pure death benefit, its primary use is to provide coverage of financial responsibilities, for the insured. Such responsibilities may include, but are not limited to, consumer debt, dependent care, college education for dependents, funeral costs, and mortgages.

Annual renewable term

The simplest form of term life insurance is for a term of one year. The death benefit would be paid by the insurance company if the insured died during the one year term, while no benefit is paid if the insured dies one day after the last day of the one year term. The premium paid is then based on the expected probability of the insured dying in that one year.

Because the likelihood of dying in the next year is low for anyone that the insurer would accept for the coverage, purchase of only one year of coverage is rare.

One of the main challenges to renewal experienced with some of these policies is requiring proof of insurability. For instance the insured could acquire a terminal illness within the term, but not actually die until after the term expires. Because of the terminal illness, the purchaser would likely be uninsurable after the expiration of the initial term, and would be unable to renew the policy or purchase a new one.

This issue is frequently overcome by a feature in some policies called guaranteed reinsurability included on some programs, that allows the insured to renew without proof of insurability.

A version of term insurance which is commonly purchased is annual renewable term (ART). In this form, the premium is paid for one year of coverage, but the policy is guaranteed to be able to be continued each year for a given period of years. This period varies from 10 to 30 years, or occasionally until age 95. As the insured ages, the premiums increase with each renewal period, eventually becoming financially inviable as the rates for a policy would eventually exceed the cost of a permanent policy. In this form the premium is slightly higher than for a single year's coverage, but the chances of the benefit being paid are much higher.

Level Term Life Insurance

Much more common than annual renewable term insurance is guaranteed level premium term life insurance, where the premium is guaranteed to be the same for a given period of years. The most common terms are 10, 15, 20, and 30 years.

In this form, the premium paid each year is the same, and is based on the summed cost of each year's annual renewable term rates, with a time value of money adjustment made by the insurer. Thus, the longer the term the premium is level for, the higher the premium, because the older, more expensive to insure years are averaged into the premium.

Most level term programs include a renewal option and allow the insured to renew for a maximum guaranteed rate if the insured period needs to be extended. It is important to note that the renewal may or may not be guaranteed and the insured should review their contract to see if evidence of insurability is requierd to renew the policy. Typically this clause is invoked only if the health of the insured deteriorates significantly during the term, and poor health would prevent them from being able to provide proof of insurability.

Payout Likelihood and Cost Difference

Both term insurance and permanent insurance use the exact same mortality tables for calculating the cost of insurance, and a death benefit which is income tax free, as long as the policy is in force and premiums are current; however, the premiums are substantially different.

The reason the costs are substantially different is that term programs may expire without paying out, while permanent programs must always pay out eventually. To address this Permanent programs have built in cash accumulations vehicles to force the insured to "self insure" making the programs many times more expensive.

Insurance industry studies have shown that the probability of filing a death benefit claim under a term insurance policy is unlikely.[citation needed] One study placed the percentage as low as 1% of policies paying a benefit. The low payout likelihood allows term insurance to be relatively inexpensive. The low payout percentage is a combination of there being a low likelihood (in the aggregate) of a random, healthy person dying within a short period of time. Because of the low likelihood of an insurer having to pay a death benefit, term insurance seems better when considered in terms of coverage per premium dollar basis - by a factor of up to 10.

Source

Term Life Insurance - Don't Buy Insurance Until You Read This

noreply@blogger.com (share info) — Wed, 07 Jan 2009 16:05:00 +0000

Term Life insurance is the least expensive type of life insurance available, but still provides excellent coverage. Term Life has become the most popular type of life insurance policy because of it's flexibility and low cost.

Term Life is what is known as pure life insurance coverage. This is because, unlike some other policies, where you pay more in order to have a savings account, with Term Life you're only paying for life insurance coverage and nothing else.

You can buy several different types of Term Life. These are as follows;

Non-Renewable/Non-Convertable Term, Renewable Term, Convertible Term, Re-Entry Term and Deposit Term. In addition to these, there are also Types of Term Life Insurance where the face value of the policy remains constant or changes. These types of Term Life are Level Term, Decreasing Term and Increasing Term, which is sold only as a Rider.

The most common of these is a Level Term policy. This is what you'll mostly see online when you get a Term Life insurance quote. Level Term policies provide coverage for a stated period of time, such as 10 Year Term, 20 Year Term, 30 Year Term and provide the same constant amount of face value. This means that if you buy a 20 Year Term policy for $100,000 worth of coverage, then that policy will have a constant face value of 100,000 for the entire 20 years that you own it. It won't go up or down during that time period.

Term Life insurance is recommended by many financial advisors as the "way to go" for buying life insurance protection. Go grab a free Term Life insurance quote right now and then talk to an agent about which Term Life insurance policy might be best for you and your family.

Joe Stewart Is A Webmaster And Former Life And Health Insurance Agent. He's Made Understanding Life Insurance Easy For Others. You Can Get Free Life Insurance Quotes At His Website http://TheLifeInsuranceGuys.com or by clicking on Term Life Insurance

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How Does A Term Life Insurance Work?

noreply@blogger.com (share info) — Wed, 07 Jan 2009 16:03:00 +0000

The functions of term life insurance is almost similar to any other kind of insurance

People think of an insurance to save themselves from aftermath of certain untoward circumstances like thefts, accidents, natural calamities and even death. It becomes therefore important to think of your loved ones after you. they might be put through a financially rough phase should something happen to you. death is inevitable but you can play it safe and secure yourself and insurance thereby reducing the damage which could be done to your family after you.

A term life insurance as the name rightly suggests is a fixed term of coverage agreed upon by the insurance provider and the insured. a term life insurance is a pure death benefit wherein the benefits are paid out to the beneficiary should the insured die during the policy term. it imposes no cash value on its takers. A term life insurance is broadly classified into two->Annual Renewable Term- here the premium is paid annually once for a one year coverage. However if the policy holder decides to extend the policy he has to agree to pay the appreciating premium each year. > Level Term Life Insurance- the premium here would the same for all the years in the contract. Level term can be purchased for 1, 5, 10 or 20 yrs or even longer.

A term life insurance works like any other life insurance policy. The only difference here is that this is for a fixed period of time, a permanent or whole life insurance. however you can convert the term life into a whole life insurance policy by extending the policy and paying the flexible rate of premium. Usually people go for life insurance policies so as to secure their children’s future or to financially secure their loved ones should something happen to the insured in the due course.

In a term life insurance the most important factor to consider would be the duration of the contract. For e.g. if you know you are suffering from a terminal illness you could choose the period accordingly. Renewable option with this plan gives you more flexibility in terms of maintaining the duration of contract. So by the end of the contract upon qualifying events you get a guaranteed amount of capital which you can leave behind for your loved ones.A cost of a term life insurances increase as the policy ages, so the wiser option here would be to choose a fixed term, and if you feel your needs show a decreasing trend over the policy term, you can terminate the contract early or renew the policy if need be. Now, after understanding the way the policy functions it gets easier for you to decide on what kind of insurance plan would best suit you. Remember term life insurance works almost on the same grounds as like other life insurance policies. The concern here is how well have you understood the meaning of it and the way it functionsFree Web Content, post which you could take a step ahead and protect yourself with the best in the market.

Source:ArticlesFactory.com

Quotes for Term Life Insurance

noreply@blogger.com (share info) — Wed, 07 Jan 2009 16:01:00 +0000

We all know very well that the term life insurance looks really very much cheaper when we request for free quotes on life insurance. A quote for whole life insurance can really be well worth getting.

As long as you live do pay the premiums regularly and the cost of the life insurance policy is really stretched over a long period of time, so you are very truly paying much less in your premiums monthly.

You can also pay these premiums for some specific period of time if you want to. The main reason behind this is that a large number of people like to pay the premiums for around 20 years or 30 years or some other time period. The main reason is that they will not be able to pay the premiums after that time period as their working life will be over and they will not be earning much more money that they were earning before. So in this way they can make their retirement life full of enjoyment.

Even though everyone knows that the premiums are low in case of full life insurance. Also if you get the full life insurance at an early age, then the cost will surely be the same to much extent. There are also a large number of added profits and benefits to get full life.

Even if you are not in a state to afford a payout that is really very much high, then you can also very easily choose a lower death profit and benefit. And also you can upgrade it in the future when you can be really able to afford it.

So in this way you can get life insurance policy at comparatively very low and affordable rates. One thing that must always be kept in mind while comparing all the different life insurance companies, agencies and providers is that you must always go for the highest payout that is possible to get the insurance at low rates.

If you think that you cannot afford a life insurance policy, you must look at the life insurance quotes and search for them online. And you will surely get some schemes by various different life insurance companiesArticle Submission, agencies and providers as they can provide you with insurance policies at very low and also affordable rates which will really be affordable to you. You can also very easily contact an insurance agent or a broker who will tell you that how can you get life insurance at low and affordable rates.

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Understanding Your Term Life Insurance Policy

noreply@blogger.com (share info) — Wed, 07 Jan 2009 15:53:00 +0000

Vital Facts You Need to Know to Protect Your Money

It is true that life insurance can be a little confusing the first time you deal with it. But let's see if we can't clear up some confusion and get you on the road to understanding your term life insurance policy.

Term insurance, like renting, gives you the use of an asset - the company's promise to pay a benefit - for a period of time until the coverage terminates.

In other words, term life coverage lasts for a specified period of time (the "term"), usually one, five, 10 or 20 years.

During this term the insurance company will pay a death benefit only if the insured dies during the specified coverage term of the policy.

Term Insurance Is Pure Insurance

Simply stated, term insurance is "pure insurance." No benefits are paid if the insured lives beyond the term of the policy and there is no investment, or earn dividends or cash value feature inherent in this type of policy like there is in a whole life policy, universal life insurance or variable life insurance policy.

When To Choose Term Life Insurance

Generally term insurance is the least expensive form of life insurance for people under age 50 because of the short period of time the person will be insured. Premiums for term insurance policies are lower and often have a higher death benefit than other permanent life insurance products.

A good rule of thumb is to choose a term policy when you need coverage for 30 years or less, and when the cost of permanent insurance is more than your budget allows.

This is also a good product to use as a supplement to your employer's life insurance if their coverage isn't enough.

The Rest Of The Story On Understanding Your Term Life Insurance Policy

Buying life insurance is arguably one of the most important financial decisions you can make, and one of the most confusing. Whether you're shopping for term or permanent insurance, the number and types of policies to choose from can make comparison-shopping difficult, if not impossible. Fortunately there is a great resource available. Click to http://affordable-term-life-insurance.info a popular resource site for consumers to discover the different types of life insurance.

Article Source: http://EzineArticles.com/?expert=James_Pentington_III

How to quickly find the best term life insurance quote?

noreply@blogger.com (share info) — Wed, 07 Jan 2009 15:51:00 +0000

The concept of term life insurance is very easy to understand. Term life insurance remains effective for a limited, predetermined time span...

A term life insurance holder pays regular premium during the term of his life insurance policy. If the insurance holder dies during the term, death benefits directly go to the beneficiary.

Most of the life insurance policies offer variety of options but term life insurance offer only limited flexibility. Additionally, term life insurance does not make any cash value or any residual. After the expiry of term life insurance policy, there is no use of it, you just need to renew it or purchase a new one.

It is also true that options are more readily available with other insurance solutions. Despite simplicity and limitations, term life insurance is still sensible among many customers.

Those who need temporary life insurance protection should prefer term life insurance policy. Some times it happens that an individual is not covered by any life insurance policy due to some reasons, under such circumstances, a term life insurance can fill the gap, protecting the financial interests of their family. If you also need life insurance coverage for a short period, term life insurance comes in picture.

Term life insurance is mostly meant for young working people with families. You can quickly find the best term life insurance quote using Internet. While searching for online term life insurance quotes you should keep some points in mind like the premium to be paid, term of the insurance, term life insurance rateFree Reprint Articles, authenticity of the company etc. You can find affordable term life insurance by searching online life insurance companies. By comparing life insurance policies of different companies you can find the best term life insurance policy suitable for you.

Source:ArticlesFactory.com

How to profit from term life insurance

noreply@blogger.com (share info) — Wed, 07 Jan 2009 15:43:00 +0000

Term life insurance is a type of temporary life insurance. The purpose of term life insurance is to reduce financial risk for a fixed period usually between one to twenty years. One example will make things clear. Sarah buys a life insurance policy to insure her husband John's life.

She pays 20$ premium per month to the life insurance company. The period of life insurance is for 20 years. So if John dies within 20 years, Sarah will get 4800 dollars. However if John doesn't die within 20 years Sarah will get some money after 20 years which will be much less compared to 4800 dollars.

However if she buys a term life insurance of 4800 dollars for 20 years, she may have to pay premium of less than 20 $, say 10 $ a month. If John dies within 20 years Sarah will get the death benefit of 4800 dollars, however if John doesn't die within 20 years, Sarah will get no cash value at the end of 20 years. However since she has paid only 2400 $ as premiums, her 2400$ are saved as compared to the permanent life insurance policy which she can invest and make profit. In the US market the 2400$ if invested wisely would have yielded much more than 4800$ to Sarah in 20 years.

The idea behind term life insurance is to buy a life insurance policy for a period usually one year. The premium (the amount you pay to the life insurance company) is much less compared to a permanent life insurance premium. The insurance can be renewed after the expiry of the life insurance term, but the premium keeps increasing as the insured ages. The higher the age of the insuredFind Article, the higher is the premium.

Term life insurance is the cheapest life insurance available on coverage to premium dollar basis. The death benefit is non-taxable in the United States and the premium is also deductible from the income to save income tax.

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What is Term Life Insurance?

noreply@blogger.com (share info) — Wed, 07 Jan 2009 15:39:00 +0000

Term Life insurance is available in four different policy types; renewable, convertible, level term and decreasing term.

There are two different types of life insurance, term life insurance and permanent life insurance. Term life insurance is the easier of the two plans. This plan supplies you with death protection for a pre-determined amount of time, anywhere from one to 30 years.

If you happen to die while paying on this type of policy your beneficiary will be paid the amount of money you specified when purchasing the policy. If at the end of the term you are still living your death protection coverage will cease unless of course you renew the policy. You can purchase this policy on a minimum budget and it is particularly perfect for providing coverage while your children are still in the home or while paying off a mortgage or other large loans.

This plan is merely a quick fix. It is similar to leasing a vehicle. You pay a lower cost for the privilege of driving the car knowing you will return it after a short period of time. However, just like when leasing a vehicle there is an option to buy. If you are purchasing term life insurance because you need protection now but can t afford the higher payments of permanent protection in most cases you can switch your plan over to permanent protection when your situation changes (be sure to verify this before purchasing any policy). You can also look at term life insurance as an efficient means of protecting your family while using your remaining finances for savings or other investments.

Although this type of coverage is less expensive than permanent life insurance your premiums will increase at renewal periods as you grow older. Normally at renewal periods you will also be required to obtain a physical in order to qualify for the lowest rates.

There are four different types of term life insurance policies one of which is renewable term insurance. This policy will delete your need to submit to a physical when renewing your policy. The company agrees to renew your policy even if your health has declined however, be prepared to pay higher premiums with each renewal when purchasing this plan.

Convertible term insurance will allow you to switch from term to permanent life insurance without succumbing to a health exam first. Of course this convenience will more often than not come with the expense of higher premiums. On the bright side once you convert to permanent your premiums will not increase as with the renewal of the term plan.

Level term insurance presents a permanent premium for a pre-determined number of years, usually 10 or 20, and the death benefit remains the same. With this policy you will lock in a particular price for the duration of the policy. The down side to this plan is that the rate will rise significantly if you decide to renew with subsequent level policies.

The remaining plan is the decreasing term insurance policy. Throughout the term of this policy the death benefit will decrease. You may start out with $250,000 worth of coverage however for the first 10 years each year your benefit will be reduced by $10,000. The premiums on this policy will also vary over the term of the policyFree Web Content, it is for these reasons that this policy is not highly recommended nor sold very often.

Source:ArticlesFactory.com