The Primary Types of Life Insurance & How Their Cost is determined

There are many forms of life insurance policies available to a potential policyholder but all life insurance policies will always fall under two different categories:

Term Life Insurance – these types of policies are only active for a specified amount of time of your life, called a "term". When the term ends, so does the policy. Payout only occurs should the insured die sometime within the policies defined term. This type of life insurance is best used for temporary or shorter term needs: 20-year mortgage, college education costs for children, and helping to support children and assist with family income needs should one of the parents die.

Permanent Life Insurance – this type of policy covers you for your entire life and will pay death benefits when you ever die. This type of insurance policy is best for "permanent" related needs: burial fees, estate taxes, providing income for a spouse, etc.

Whichever type of insurance policy you choose, there are two factors that determine its cost: Mortality Cost and Policy Expense Cost.

Policy Expense Cost is the cost of insurance company expenses such as office rent, utilities, general staff, and agent responsibilities. Depending on the type of policy you purchase, this fee can either remain constant or fluctuate through your policy's lifespan.

Mortality Cost is determined by the odds of the insured dying at that particular moment. Obviously, the odds of the insured dying increase exponentially with age. To avoid an ever increasing insurance premium that correlates directly with the insured's aging, insurance companies average the increase and adjust the early premium payments accordingly. Essentially, you are paying an inflated premium when the insured is younger and a much lower premium as the insured individual ages, but the actual payment remains constant. This overpayment is called "cash value" and must be reimbursed to the policyholder should he or she cancel an existing permanent life insurance policy early. It is important to note that Term Insurance premiums increase with the policy holder's age but they will never accrue a "cash value". When a Term Insurance policy is terminated early, there is no refund for overpayment due from the insurer.

Additional life insurance terms you should know:

Beneficiary – This is the person or organization to whome the insurer will pay due to the insured die. This could be your husband / wife, or your spouse. It could also be your children or ahaps your favorite charity.

Primary Beneficiary – This is the person or organization that will be paid upon the insurer's death.

Contingent Beneficiary – This is the person or organization to which the proceeds will be paid to the primary Beneficiary be dead or no longer exist (such as a company or corporation named as the Primary Beneficiary). If no Contingent Beneficiary was named in the policy, proceeds will be paid to the Primary Beneficiary's estate.

Face Amount – This is the amount of money payable at time of death. It is usually found on the first page of every Life Insurance policy, whether it's a Term or Permanent policy.

Purchase Options – These are options that can be purchased through the life of the policy regardless of the insured's health. A good example of a purchase option is allowing the policyholder to increase the amount of the policy without having to re-evaluate the health of the insured.

Waiver of Premium – This is an optional coverage that permanently suspends your premium in the event that you are disabled. However, you must first be disabled for six months before the waiver takes effect. Additionally, this option is quite expensive and may not be necessary should the insured have substantial disability coverage.

How to Get Affordable Car Insurance in Ohio

People who live in the state of Ohio may be in for a surprise when they open their mailbox. In this state the Bureau of Motor Vehicles sends out 280,000 requests a year to see proof of insurance. Once someone receives one of these notices in the mail they only have three weeks to prove they have insurance. Although it's obviously mandatory to have car insurance, some people forego it because of the price. There are ways to find affordable car insurance and some are not things most people are aware of including:

o Using one insurance company for all your policies including car, home, health and life. Insurance companies give discounts to individuals who purchase more than one type of insurance from them. Ask your health insurance or life insurance agent about a quote for car insurance.

o Buying a car that costs less to insure. Most people never consider the insurance costs that are associated with a particular type of car before they buy it. Call multiple insurance agents and ask for quotes on a car you are considering buying. You may be surprised to learn exactly how expensive it is, and if you find this out before you finalize the sale, you can save yourself a lot of money.

o Mention that you have a car alarm or consider getting one. A car alarm is a great idea for many reasons including the reduction you are likely to experience in insurance costs. Any effort that you make to keep your car safer is viewed in a good light by the insurance company. You'll have to be prepared to show proof that the car alarm system is indeed installed.

The most important factor in determining your car insurance rates is likely your driving record. If you have been in more than one accident in the last few years or you have a pile of speeding tickets with your name on them, you are obviously going to have a more difficult time getting an affordable rate. If this is the case, make a decision to start driving safe now and you'll see your rates steadily drop.

The Difference Between Health Insurance and Life Insurance

Health insurance is designed to protect you against having to pay large medical bills by offering coverage for a range of medical procedures and treatments. By contrast, life insurance is primarily designed to pay out a lump sum in the event of your death.

Life insurance is typically purchased in one of two forms.

The simplest form of life insurance, and also the least expensive, is term life insurance which pays out only on your death. You can usually purchase term life insurance for as little as one year or for up to 30 years and the policy will only pay out if you die before the policy reaches its end date. You may consider purchasing term life insurance later in life or when you feel that your life is likely to be at greater risk over a short period of time for some reason.

The second form of life insurance is whole life insurance which is a combination of both a term life insurance policy and an investment plan. Your monthly (or annual) premiums are divided between the two parts of the policy, with one part of the premium providing you with insurance cover should you die during the period of the policy and the reminder being paid into an investment vehicle, such as a mutual fund or stocks and bonds. Whole life insurance is a popular choice as it provides you with both protection for your family and a savings vehicle, possibly to meet college tuition fees or to add to retirement funds. These policies are however normally heavily loaded with both fees and responsibilities and, if you are looking at a whole life policy principally as an investment vehicle, then there are certainly better options available to you.

The cost of both a life insurance policy and a health insurance policy depend to a large extent upon your age and health and the younger and healthier you are the cheaper they will be.

Perhaps the most important thing to understand is that life insurance and health insurance are designed to cover two very different situations and it is not a case of choosing one or the other, as many people think, but it is a case of deciding as two separate issues whether you need either or both.

Life Insurance to Pay Taxes of the Rich

A life insurance can actually be used in many ways, not only to replace income like where it is typically used. Some rich individuals will no longer consider having this kind of insurance policy because they believe that they already have lots of money and properties and they even have certain trusts for their family in case they die. This is the reason why some wealthy individuals would not consider having insurance policy because they thought that income replacement after death is the only use of this insurance. But they are only misinformed.

Life insurance has many uses especially when you are rich and you have a large estate. Having a large estate will also mean having a large estate tax when you die and this can give a great impact to your properties. Having no life insurance prepared for this, your loved ones and relatives may still pay off this large amount and they may be forced to sell some of the valued properties just to pay these taxes. But having an insurance policy like this can become a protection to your estate against those taxes.

Another thing is when you have been donating regularly to a charity work. Donations, even charity debts, involve tax on your part and this can be protected by having this insurance policy. If you want the contributions to continue when you die and you do not want the burden of taxes to affect your family, then this insurance policy can help you get through it.

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What Is An Accelerated Death Benefit On Life Insurance?


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Preparing For A Successful Paramedical Insurance Exam

In preparation for your life insurance exam, we recommend the following in order to obtain the most favorable results.

Ask that the medical exam be scheduled for early in the day when possible, rather than the afternoon because:

  • Most people have lower blood pressure and pulse in the morning, before the day's activities (and caffeine in take) take hold
  • It allows you to fast (no eating or drinking) for 12 to 14 hours before the exam. If this is not possible, you should be very careful about what you eat or drink the morning of your exam. If possible you should only have water. YOU SHOULD CONTINUE ALL REGULAR MEDICATIONS REGARDLESS OF THE TIME OF YOUR EXAM.

Dietary Considerations & Fasting:

  • The best results are obtained when you watch your diet take for a few days before the exam, as we want favorable lab test results. You should avoid fatty foods, excess sugar, etc.
  • Optimal lab results are obtained when the blood draw occurs at between 12 and 14 hours after the most recent meal. These times optimize lipid and blood sugar results. Times outside of this can affect the total cholesterol, HDL, LDL and triglyceride levels, glucose, BUN, creatine, total protein, as well as serum albumin.
  • Caffeine. Do not have any coffee or other form of caffeine the morning of the exam, and as little as possible the day before. Caffeine, of course, can stimulate your heart and throw off various tests.
  • Alcohol. It is best to avoid altogether for a few days prior to the exam.
  • Salt. It is best to avoid altogether for a few days prior to the exam.
  • Water. Drink lots of water the day before and the morning of the exam, as this gives optimal urinalysis results. This will also keep you hydrated, which will make it easier for the nurse to take the blood specimen.

Clothing: You Should wear comfortable clothing. Especially comfortable shoes.

Exercise: While this may be counter intuitive, you should not exercise within 24 hours of the exam. Strenuous workouts within 24 hours can result in false elevated liver function tests and poor urine results.

Still Insurable With Multiple Sclerosis

Trying to shop for life insurance when you have multiple sclerosis can be daunting. It helps to consult experts in life insurance for people with MS, so they can guide you through the process. But it also helps to know what the actual insurance companies look for when underwriting this type of policy.

What do life insurance underwriters look for when they determine the rating for someone with multiple sclerosis?

  • Type of multiple sclerosis. A person with Relapsing/Remitting Multiple Sclerosis is most likely to get a medically underwritten policy like someone of good health can get. The rates will be higher for people with multiple sclerosis, but rates vary widely from company to company. So it is very important to use agents experienced in writing life insurance for people with MS in order to get the lowest rate. There are several No Exam policies that work well for people with the Progressive forms of multiple sclerosis, as well.
  • When diagnosed. Most companies like to wait a year after diagnosis so they can see the pattern the person’s MS takes before making an offer. However, there are also policies that one can get shortly after being diagnoses with multiple sclerosis.
  • Symptoms. It seems that no two people with MS have exactly the same symptoms, and therefore underwriting life insurance for those with multiple sclerosis is complicated. The fewer the symptoms, the better the rate will be, and the more life insurance choices one has. Symptoms considered are: need of assistance for walking, depression, incontinence, nerve pain, memory loss, and whether one needs home health or institutionalized care. Whether or not you are capable of working fulltime is also a consideration for medically underwritten policies. There are policies to cover almost every symptom, so never assume you are uninsurable due to MS!
  • Treatment. Medically underwritten products are easiest to get by people who have had good results with Copaxone, Rebif, Avonex, and other approved MS treatments. However, there are policies for people with no treatment, all the way to people who have had a stem cell transplant.

It can be frustrating for people with MS to buy life insurance when they are able to do what anyone else does, yet still find themselves paying more than someone with no health problems. But even people with perfect health pay higher rates if they have a parent with heart disease. There is no way around paying more, but agencies that specialize in multiple sclerosis life insurance can help you pay a lot less.

Preparing For A Successful Paramedical Insurance Exam

In preparation for your life insurance exam, we recommend the following in order to obtain the most favorable results.

Ask that the medical exam be scheduled for early in the day when possible, rather than the afternoon because:

  • Most people have lower blood pressure and pulse in the morning, before the day's activities (and caffeine in take) take hold
  • It allows you to fast (no eating or drinking) for 12 to 14 hours before the exam. If this is not possible, you should be very careful about what you eat or drink the morning of your exam. If possible you should only have water. YOU SHOULD CONTINUE ALL REGULAR MEDICATIONS REGARDLESS OF THE TIME OF YOUR EXAM.

Dietary Considerations & Fasting:

  • The best results are obtained when you watch your diet take for a few days before the exam, as we want favorable lab test results. You should avoid fatty foods, excess sugar, etc.
  • Optimal lab results are obtained when the blood draw occurs at between 12 and 14 hours after the most recent meal. These times optimize lipid and blood sugar results. Times outside of this can affect the total cholesterol, HDL, LDL and triglyceride levels, glucose, BUN, creatine, total protein, as well as serum albumin.
  • Caffeine. Do not have any coffee or other form of caffeine the morning of the exam, and as little as possible the day before. Caffeine, of course, can stimulate your heart and throw off various tests.
  • Alcohol. It is best to avoid altogether for a few days prior to the exam.
  • Salt. It is best to avoid altogether for a few days prior to the exam.
  • Water. Drink lots of water the day before and the morning of the exam, as this gives optimal urinalysis results. This will also keep you hydrated, which will make it easier for the nurse to take the blood specimen.

Clothing: You Should wear comfortable clothing. Especially comfortable shoes.

Exercise: While this may be counter intuitive, you should not exercise within 24 hours of the exam. Strenuous workouts within 24 hours can result in false elevated liver function tests and poor urine results.

Computers and Technology: Shop for Insurance Responsibly

Today's advances in computers and technology make many tasks easier than they were years ago. Computers and technology aid us in our personal lives as well as professional lives. Most young people probably can not imagine a world without computers and technology, and most older people probably can not imagine going back to that world. Thanks to computers and technology, we work online, we play online – we do just about everything online!

A popular trend today is the act of purchasing insurance policies online. Health insurance, life insurance, auto insurance – you name an insurance, and it can probably be purchased online thanks to computers and technology. This is a great convenience for some folks. Think about it: who wants to make a detour on their commute home from a long day of work to talk with an insurance agent about purchasing an insurance policy? Would not most people rather go home to spend time with their families and relax before the next day begins?

While computers and technology make it much easier to spend more time enjoying these kinds of leisure activities, they also make it much easier for us to lose connection with real people. By purchasing insurance online, you're saving time and effort, but you're also losing the important, yet overlooked, benefit of speaking with an insurance agent one-on-one, face-to-face. At the very most, the only human interaction you're going to have by purchasing insurance online is speaking with a representative over the phone.

This is not to say that you should avoid the perks of today's computers and technology, such as purchasing insurance online; However, you should make sure you have the chance to get some one-on-one time with an insurance agent – even if that one-on-one time is only over the phone. Rather than the conversation consisting solely of a brief synopsis of the coverage and your credit card number, ask specific questions, and make sure to get wellly detailed answers.

Cashing Life Insurance Settlements

Life insurance is taken to provide security to an individual?s life against events like accidents or death. A life insurance policy is a contract between the insurer and the company that offers such a policy. Herein, the company agrees to pay an agreed sum of money or cash in case of an accident or death. Cash Life Insurance Settlement policy could be surrendered at times when there is a shortage of money. Hence such policies are sold for cash to meet expenses like medical treatment, inability to pay premium on time, and so on.

When such insurance documents are sold, policy sellers benefit by converting these assets into liquid money, which can be invested as and when needed. It proves profitable to sell off a policy, as it could be worthless if premiums are not paid in time.

Cash life insurance settlement companies offer a high amount on insurance settlements than what insurance companies offer. Usually such cash life insurance settlement companies buy policies from general public, and trusts and offer a fixed rate amount to policy sellers. Cash life insurance settlement company may be the principal beneficiary on the amount at the event of death of a document holder or when the policy matures.

Senior citizens who are above the age of 65 years may be required to sell cash life insurance settlements at times. This could meet emergencies when senior citizens may require money for their medical treatment and other needs. Hence, these cash life insurance settlements are sold to companies for a price that is a little higher than the purchase value. At times brokers bid for policies and whichever is the highest amount, is paid to such citizens. Policyholders may have the right to choose whether to opt for this amount or not as these policies may be worth approximately one hundred thousand dollars.