Jun
1
Filed Under Insurance | Comments Off
Christian Rios asked:
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 eventually 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 commissions. Depending on the type of policy you purchase, this fee can either remain constant or fluctuate throughout 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 whom the insurer will pay proceeds to should the insured die. This could be your husband/wife, or your spouse. It could also be your children or a perhaps 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 should 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 throughout 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.
RICKER
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 eventually 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 commissions. Depending on the type of policy you purchase, this fee can either remain constant or fluctuate throughout 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 whom the insurer will pay proceeds to should the insured die. This could be your husband/wife, or your spouse. It could also be your children or a perhaps 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 should 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 throughout 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.
RICKER
Apr
30
Filed Under Insurance | Comments Off
Christian Rios asked:
Acquiring life insurance can be a complicated issue. There are many factors involved when purchasing insurance that the policyholder may or may not be aware of. Let’s take a look at a few of the factors that determine whether or not a life insurance policy can be acquired.
Life Insurance Application – Everything begins here. An applicant must fill out a form and provide accurate, complete information to the insurer. Also, information regarding other existing life insurance policies must be disclosed on the application.
Insurable Interest – This is required by law and without it a policy is unenforceable. But what exactly is Insurable Interest? It can be in found in many forms but we’ll try to summarize with a single sentence: An Insurable Interest can be found when financial gains and/or financial loss can be expected from the proposed insured’s death. This could mean loss of income or even existing financial debt. It’s important to note that the amount insured should relate closely to the Insurable Interest – a person can’t simply purchase an overly high life insurance policy without having a relatively equal Insurable Interest. Generally speaking, the Insurable Interest only needs to exist when the policy is issued and not at the time a death benefit is issued. However, some states vary. Check with your insurance professional to determine your particular state’s requirements.
Incontestable Clause – The insurer can void a contract on grounds of concealment, misrepresentation, and or fraud within a period of two years from issuance. After two years, the policyholder is protected from the insurer voiding or otherwise refusing to payout a policy based on such a scenario.
Suicide Clause – If the insured commits ******* within a specified time period from policy issuance, the insurer may cancel the policy and return the premiums. This is typically in the hands of the insurer to determine.
Jurisdiction – The state or local government that is most closely related to the insured individual typically has jurisdiction over life insurance policies. “Closely related” can be interpreted as “where does the person reside the majority of the time?” If a particular state has favorable life insurance laws, it would not be of benefit to an individual to cross the border merely for the sole purpose of purchasing it if that same individual did not reside in the same state.
Date of issuance – Acquiring a receipt or an actually copy of the policy is required before a life insurance policy is considered “officially” issued. Payment should always be accompanied by a life insurance application submittal.
Reinstatement Clause – Should a policyholder fail to pay an insurance premium, they are given a grace period to reinstate the life insurance policy. In most cases, the policyholder simply has to pay overdue premiums to reinstate the policy. Sometimes the policyholder may have to provide evidence of insurability before reinstatement can occur.
Grace Period – This protects the insured in case of a missed payment. The insurer is required to accept premiums for a certain period after they are considered late without requiring the insured to provide proof of insurability again. This grace period is typically 30 to 60 days. During that time, the life insurance policy is considered active. If a policyholder were to die during the grace period, the insurer is allowed to deduct the overdue premiums plus interest from any premium proceeds past due.
STEIN
Acquiring life insurance can be a complicated issue. There are many factors involved when purchasing insurance that the policyholder may or may not be aware of. Let’s take a look at a few of the factors that determine whether or not a life insurance policy can be acquired.
Life Insurance Application – Everything begins here. An applicant must fill out a form and provide accurate, complete information to the insurer. Also, information regarding other existing life insurance policies must be disclosed on the application.
Insurable Interest – This is required by law and without it a policy is unenforceable. But what exactly is Insurable Interest? It can be in found in many forms but we’ll try to summarize with a single sentence: An Insurable Interest can be found when financial gains and/or financial loss can be expected from the proposed insured’s death. This could mean loss of income or even existing financial debt. It’s important to note that the amount insured should relate closely to the Insurable Interest – a person can’t simply purchase an overly high life insurance policy without having a relatively equal Insurable Interest. Generally speaking, the Insurable Interest only needs to exist when the policy is issued and not at the time a death benefit is issued. However, some states vary. Check with your insurance professional to determine your particular state’s requirements.
Incontestable Clause – The insurer can void a contract on grounds of concealment, misrepresentation, and or fraud within a period of two years from issuance. After two years, the policyholder is protected from the insurer voiding or otherwise refusing to payout a policy based on such a scenario.
Suicide Clause – If the insured commits ******* within a specified time period from policy issuance, the insurer may cancel the policy and return the premiums. This is typically in the hands of the insurer to determine.
Jurisdiction – The state or local government that is most closely related to the insured individual typically has jurisdiction over life insurance policies. “Closely related” can be interpreted as “where does the person reside the majority of the time?” If a particular state has favorable life insurance laws, it would not be of benefit to an individual to cross the border merely for the sole purpose of purchasing it if that same individual did not reside in the same state.
Date of issuance – Acquiring a receipt or an actually copy of the policy is required before a life insurance policy is considered “officially” issued. Payment should always be accompanied by a life insurance application submittal.
Reinstatement Clause – Should a policyholder fail to pay an insurance premium, they are given a grace period to reinstate the life insurance policy. In most cases, the policyholder simply has to pay overdue premiums to reinstate the policy. Sometimes the policyholder may have to provide evidence of insurability before reinstatement can occur.
Grace Period – This protects the insured in case of a missed payment. The insurer is required to accept premiums for a certain period after they are considered late without requiring the insured to provide proof of insurability again. This grace period is typically 30 to 60 days. During that time, the life insurance policy is considered active. If a policyholder were to die during the grace period, the insurer is allowed to deduct the overdue premiums plus interest from any premium proceeds past due.
STEIN
Apr
7
Filed Under Insurance | Comments Off
Christian Ward asked:
Here’s an easy one. What have June Whitfield, Frank Windsor, Gloria Hunniford and Sir Michael Parkinson all got in common?
You guessed it, these TV celebs have all advertised over-50s life policies. Their trusted faces, familiar from the box, presumably give older people the reassurance they need to splash out on these policies.
Over-50s life insurance plans offer guaranteed cover for a low monthly premium. Axa Sun Life, Engage Mutual, Liverpool Victoria, Marks & Spencer and the Post Office all sell these plans, which have been a tranquil backwater of financial services for what seems like forever.
War Breaks Out
Then suddenly supermarket giants Asda and Tesco start offering them and war breaks out.
Asda Financial Services launched its Over 50s Life Cover policy in mid-May, with Tesco Life Insurance diving in just a couple of days later. Within days, their competitive instincts had spilled into the genteel world of the over-50 life policy – and a good thing too, as it turns out.
To understand the dispute, you first have to understand how this niche of the life insurance market works.
The main attraction of over-50s life policies is that if you are aged between 50 and 75, you are guaranteed to be accepted onto the policy. Unlike traditional term assurance, you don’t have to complete a lengthy questionnaire or take a medical before you get cover.
This makes them attractive to people who are in poor health or have suffered a serious illness, who face sky-high premiums for term assurance — if they can get cover at all.
Over-50s plans are whole-of-life policies, designed to last for as long as you do. Like term assurance, they have no cash-in value. If you cancel your policy or stop paying your premiums, you’re no longer covered, and your premiums won’t be returned.
People mostly take out these plans to cover the cost of their funeral, which Asda research shows now averages £2,620 for a burial and £2,260 for a cremation. Or the policy may be used to leave a small cash sum for their loved ones.
And believe me, it will be a small cash sum. Tesco gives a 50-year old man paying £10 a month life cover worth £3,171. At age 65, his £10 monthly premium would buy just £1,351.
Why is the payout so low?
Largely because the plans cover anybody who wants one, regardless of their state of health. So if you’re healthy, you’re paying more to fund the extra risk of covering all those unhealthy people tempted by these plans.
But watch out, many of these policies contain the mother of all catches — and this is the nub of the spat between Asda and Tesco.
If you live long enough, you could actually pay more in premiums than the policy returns when you die. So if our 50-year old man paying £10 a month to Tesco lives until 77 his premiums would total £3,240 — £69 more than the £3,171 payout.
If he lives until 90, he will pay out £4,800, or £1,629 more than he receives. At that point, Tesco finally stops taking his monthly premiums, while continuing his cover until death.
And that’s what Asda is kicking up a fuss about. Its plan guarantees customers who maintain their premiums will never pay in more than they get out, says Head of Insurance Gideon Ingham. “We are asking Tesco to review its offering and introduce a cap.”
I’ve called this a spat, but it’s more like a one-way public assault from Asda. I asked Tesco to respond to its criticism, and its spokesperson said they had “nothing to add”. But at least Asda has highlighted the serious flaw in many of these plans, and hopefully people will take note.
Do you really want an over-50s policy at all?
You might, if you’ve been ill, can’t afford standard term assurance, haven’t got any savings and are fretting about who is going to pay for your funeral.
Tesco says its target market is “those customers with fewer assets and savings”, who are buying peace of mind. But that’s also a vulnerable market, who are unlikely to take financial advice to examine all their options.
If you’re in reasonable health, term assurance is almost certainly a much better deal, particularly if you have a big debt to cover such as a mortgage. Direct Line would charge a healthy 50-year old non-smoking man £30.53 a month for £100,000 worth of level cover to age 65. His premium with Direct Line is 200% higher than the £10 he would pay Tesco for £3,171 cover, but his payout is a whopping 3053% higher.
(That said, the term insurance’s cover will expire at the end of the term whereas the over-50 policy will continue to provide cover until death — as long as the premiums continue to be paid.)
So over-50s policies aren’t always inappropriate, they still have a place for people who can’t get or afford term assurance. The older — and unhealthier — you are, the better value they represent. But, in my view, most people should look to term assurance.
JAMES
Here’s an easy one. What have June Whitfield, Frank Windsor, Gloria Hunniford and Sir Michael Parkinson all got in common?
You guessed it, these TV celebs have all advertised over-50s life policies. Their trusted faces, familiar from the box, presumably give older people the reassurance they need to splash out on these policies.
Over-50s life insurance plans offer guaranteed cover for a low monthly premium. Axa Sun Life, Engage Mutual, Liverpool Victoria, Marks & Spencer and the Post Office all sell these plans, which have been a tranquil backwater of financial services for what seems like forever.
War Breaks Out
Then suddenly supermarket giants Asda and Tesco start offering them and war breaks out.
Asda Financial Services launched its Over 50s Life Cover policy in mid-May, with Tesco Life Insurance diving in just a couple of days later. Within days, their competitive instincts had spilled into the genteel world of the over-50 life policy – and a good thing too, as it turns out.
To understand the dispute, you first have to understand how this niche of the life insurance market works.
The main attraction of over-50s life policies is that if you are aged between 50 and 75, you are guaranteed to be accepted onto the policy. Unlike traditional term assurance, you don’t have to complete a lengthy questionnaire or take a medical before you get cover.
This makes them attractive to people who are in poor health or have suffered a serious illness, who face sky-high premiums for term assurance — if they can get cover at all.
Over-50s plans are whole-of-life policies, designed to last for as long as you do. Like term assurance, they have no cash-in value. If you cancel your policy or stop paying your premiums, you’re no longer covered, and your premiums won’t be returned.
People mostly take out these plans to cover the cost of their funeral, which Asda research shows now averages £2,620 for a burial and £2,260 for a cremation. Or the policy may be used to leave a small cash sum for their loved ones.
And believe me, it will be a small cash sum. Tesco gives a 50-year old man paying £10 a month life cover worth £3,171. At age 65, his £10 monthly premium would buy just £1,351.
Why is the payout so low?
Largely because the plans cover anybody who wants one, regardless of their state of health. So if you’re healthy, you’re paying more to fund the extra risk of covering all those unhealthy people tempted by these plans.
But watch out, many of these policies contain the mother of all catches — and this is the nub of the spat between Asda and Tesco.
If you live long enough, you could actually pay more in premiums than the policy returns when you die. So if our 50-year old man paying £10 a month to Tesco lives until 77 his premiums would total £3,240 — £69 more than the £3,171 payout.
If he lives until 90, he will pay out £4,800, or £1,629 more than he receives. At that point, Tesco finally stops taking his monthly premiums, while continuing his cover until death.
And that’s what Asda is kicking up a fuss about. Its plan guarantees customers who maintain their premiums will never pay in more than they get out, says Head of Insurance Gideon Ingham. “We are asking Tesco to review its offering and introduce a cap.”
I’ve called this a spat, but it’s more like a one-way public assault from Asda. I asked Tesco to respond to its criticism, and its spokesperson said they had “nothing to add”. But at least Asda has highlighted the serious flaw in many of these plans, and hopefully people will take note.
Do you really want an over-50s policy at all?
You might, if you’ve been ill, can’t afford standard term assurance, haven’t got any savings and are fretting about who is going to pay for your funeral.
Tesco says its target market is “those customers with fewer assets and savings”, who are buying peace of mind. But that’s also a vulnerable market, who are unlikely to take financial advice to examine all their options.
If you’re in reasonable health, term assurance is almost certainly a much better deal, particularly if you have a big debt to cover such as a mortgage. Direct Line would charge a healthy 50-year old non-smoking man £30.53 a month for £100,000 worth of level cover to age 65. His premium with Direct Line is 200% higher than the £10 he would pay Tesco for £3,171 cover, but his payout is a whopping 3053% higher.
(That said, the term insurance’s cover will expire at the end of the term whereas the over-50 policy will continue to provide cover until death — as long as the premiums continue to be paid.)
So over-50s policies aren’t always inappropriate, they still have a place for people who can’t get or afford term assurance. The older — and unhealthier — you are, the better value they represent. But, in my view, most people should look to term assurance.
JAMES
Feb
22
Filed Under Insurance | Comments Off
Christian Rios asked:
Permanent Life Insurance comes in two distinct forms:
Whole Life – This type of Life Insurance policy is immune to factors that would otherwise cause an insurance policy’s premium to increase. Two factors that determine insurance premiums are mortality rate and expense costs. As you age, your mortality cost increases and should therefore increase the insurance premium. But with a Whole Life policy, this isn’t the case. The same applies for an insurer’s operating expenses. If an insurance company has to increase its general staff or perhaps rent a larger office space, the cost is usually passed down to policyholders. This would not be the case for Whole Life policy holders. Those who purchase a Whole Life policy are buying a permanent life insurance policy without risk. The disadvantage to a Whole Life policy is if the policyholder decides to add additional coverage, he or she will be required to purchase an additional life insurance policy.
Universal Life – This type of policy is in direct contrast to a Whole Life policy. It is flexible in nature where a Whole Life policy is not. The two factors that determine a Universal Life insurance premium (mortality cost and expense cost) are passed directly on to the policyholder: if expense costs decrease or general interest rates rise, the policyholder benefits by having his or her insurance premium lowered. However, the opposite is also true: should expense costs increase or general interest rates drop, then the policyholder is subject to ever-increasing insurance premiums. Additionally, Universal Life policy holders are allowed the flexibility of increasing or decreasing policy limits without purchasing additional policies. Should you experience difficult times and be unable to afford the premium, you can simply lower the limits in order to decrease your policy premium. Increasing the benefit is also possible but may require the insured to prove good health to the insurer.
Other life insurance terms you should be aware of:
Variable – Variable means the policy holder is allowed to invest the cash value of the policy into areas such as the stock market. This can be beneficial if the cash value is invested wisely and the investment is profitable. However, if a poor investment choice results in a decreased cash value due to unexpected losses, the policyholder will be required to deposit additional funds to cover the cash value loss.
Cash Value Choices – Whenever a policy holder decides to terminate a permanent insurance policy early and that policy has established a cash value, the policyholder has several options available: receive the funds in cash, accept a prepaid permanent insurance for life (but at a decreased death benefit), or accept a term life insurance policy for the full death benefit.
Policy Loans – There is a fourth option to cash value called Policy Loans. The policyholder may borrow against the accrued cash value of his or her life insurance policy. If you decide to take a loan against your cash value and should you die before the Policy Loan is paid back, the insurer will deduct the unpaid loan amount from the death benefit. Although Policy Loans do have an interest rate, it is usually quite low in comparison to conventional loans (it may be as low as 3 to 4 percent when dividend payouts are also factored).
COOKS
Permanent Life Insurance comes in two distinct forms:
Whole Life – This type of Life Insurance policy is immune to factors that would otherwise cause an insurance policy’s premium to increase. Two factors that determine insurance premiums are mortality rate and expense costs. As you age, your mortality cost increases and should therefore increase the insurance premium. But with a Whole Life policy, this isn’t the case. The same applies for an insurer’s operating expenses. If an insurance company has to increase its general staff or perhaps rent a larger office space, the cost is usually passed down to policyholders. This would not be the case for Whole Life policy holders. Those who purchase a Whole Life policy are buying a permanent life insurance policy without risk. The disadvantage to a Whole Life policy is if the policyholder decides to add additional coverage, he or she will be required to purchase an additional life insurance policy.
Universal Life – This type of policy is in direct contrast to a Whole Life policy. It is flexible in nature where a Whole Life policy is not. The two factors that determine a Universal Life insurance premium (mortality cost and expense cost) are passed directly on to the policyholder: if expense costs decrease or general interest rates rise, the policyholder benefits by having his or her insurance premium lowered. However, the opposite is also true: should expense costs increase or general interest rates drop, then the policyholder is subject to ever-increasing insurance premiums. Additionally, Universal Life policy holders are allowed the flexibility of increasing or decreasing policy limits without purchasing additional policies. Should you experience difficult times and be unable to afford the premium, you can simply lower the limits in order to decrease your policy premium. Increasing the benefit is also possible but may require the insured to prove good health to the insurer.
Other life insurance terms you should be aware of:
Variable – Variable means the policy holder is allowed to invest the cash value of the policy into areas such as the stock market. This can be beneficial if the cash value is invested wisely and the investment is profitable. However, if a poor investment choice results in a decreased cash value due to unexpected losses, the policyholder will be required to deposit additional funds to cover the cash value loss.
Cash Value Choices – Whenever a policy holder decides to terminate a permanent insurance policy early and that policy has established a cash value, the policyholder has several options available: receive the funds in cash, accept a prepaid permanent insurance for life (but at a decreased death benefit), or accept a term life insurance policy for the full death benefit.
Policy Loans – There is a fourth option to cash value called Policy Loans. The policyholder may borrow against the accrued cash value of his or her life insurance policy. If you decide to take a loan against your cash value and should you die before the Policy Loan is paid back, the insurer will deduct the unpaid loan amount from the death benefit. Although Policy Loans do have an interest rate, it is usually quite low in comparison to conventional loans (it may be as low as 3 to 4 percent when dividend payouts are also factored).
COOKS
Feb
18
Filed Under Insurance | Comments Off
Christian Ward asked:
Term life insurance can be a confusing topic and purchasing life insurance can be a daunting task, to some. With so many options out there, it may seem impossible to fully understand where to start. While some consider universal life insurance, many have turned to term life insurance. Either way, however, smoking can severely affect the amount that you pay. Term life insurance rates will affect people who smoke.
How smoking affects term life insurance rates
Something important to understand about term life insurance rates is that they’re easily affected by multiple lifestyle habits that affect your health. One of the major things that life insurance companies look for is the health of the individual. Depending on your health, and the things you do that affect your body, your term life insurance rates may go up or down. Life insurance companies focus on health for good reason. They want their customers living long, prosperous lives. This benefits both parties. For the insured, the longer that you stay insured, the longer you can be protected by your policy. For the insurer, the longer the insured pays for insurance, the more money the company accumulates. With that being said, it becomes more obvious as to why health plays a part in term life insurance rates.
But how exactly does smoking affect term life insurance rates? It’s common knowledge that smoking is bad for your health. The affect that smoking has on the individuals who smoke is impossible to ignore. There are many illnesses, many resulting in death, that are linked to smoking. The life expectancy of smokers is shorter than those who do not smoke. When life insurance companies identify that an applicant is a smoker, it automatically raises red flags. The person is considered to have a shorter life span, and is expected to possibly have health issues later in life. Because of this, term life insurance rates for that specific individual, are likely to be higher.
How can they tell if I smoke?
There are multiple ways that life insurance companies can tell if someone is a smoker. First, there is a questionnaire that is given to every individual looking into term life insurance rates. Some of these questions include smoking. Many see this and think that it would be easy to lie to the company, saying that you do not smoke. That is untrue. One of the other steps in the process of getting life insurance is to have a medical exam. The company is looking for specific things through this exam. Because there are chemicals left behind in your body by smoking (such as nicotine), the company can easily tell if you are a smoker. This is why it is important to understand that you should never lie on the questionnaire, under any circumstances. All of your life insurance (and policies) can be revoked if they find out you lied.
How can I lower my term life insurance rates?
While it is easier said than done, managing to quit smoking can lower your rates. If you are already locked into a life insurance policy, you are allowed to update your medical exam at any time. If you have quit smoking, updating this exam can be a way to show that you’ve quit. While quitting smoking can be difficult, managing to do so can help you out in lowering your term life insurance rates.
COVERT
Term life insurance can be a confusing topic and purchasing life insurance can be a daunting task, to some. With so many options out there, it may seem impossible to fully understand where to start. While some consider universal life insurance, many have turned to term life insurance. Either way, however, smoking can severely affect the amount that you pay. Term life insurance rates will affect people who smoke.
How smoking affects term life insurance rates
Something important to understand about term life insurance rates is that they’re easily affected by multiple lifestyle habits that affect your health. One of the major things that life insurance companies look for is the health of the individual. Depending on your health, and the things you do that affect your body, your term life insurance rates may go up or down. Life insurance companies focus on health for good reason. They want their customers living long, prosperous lives. This benefits both parties. For the insured, the longer that you stay insured, the longer you can be protected by your policy. For the insurer, the longer the insured pays for insurance, the more money the company accumulates. With that being said, it becomes more obvious as to why health plays a part in term life insurance rates.
But how exactly does smoking affect term life insurance rates? It’s common knowledge that smoking is bad for your health. The affect that smoking has on the individuals who smoke is impossible to ignore. There are many illnesses, many resulting in death, that are linked to smoking. The life expectancy of smokers is shorter than those who do not smoke. When life insurance companies identify that an applicant is a smoker, it automatically raises red flags. The person is considered to have a shorter life span, and is expected to possibly have health issues later in life. Because of this, term life insurance rates for that specific individual, are likely to be higher.
How can they tell if I smoke?
There are multiple ways that life insurance companies can tell if someone is a smoker. First, there is a questionnaire that is given to every individual looking into term life insurance rates. Some of these questions include smoking. Many see this and think that it would be easy to lie to the company, saying that you do not smoke. That is untrue. One of the other steps in the process of getting life insurance is to have a medical exam. The company is looking for specific things through this exam. Because there are chemicals left behind in your body by smoking (such as nicotine), the company can easily tell if you are a smoker. This is why it is important to understand that you should never lie on the questionnaire, under any circumstances. All of your life insurance (and policies) can be revoked if they find out you lied.
How can I lower my term life insurance rates?
While it is easier said than done, managing to quit smoking can lower your rates. If you are already locked into a life insurance policy, you are allowed to update your medical exam at any time. If you have quit smoking, updating this exam can be a way to show that you’ve quit. While quitting smoking can be difficult, managing to do so can help you out in lowering your term life insurance rates.
COVERT
Jan
21
Filed Under Insurance | Comments Off
Christian Seemuller asked:
If you are married or if you have children you should really be sure that they are protected by Life Insurance. This is true especially if you are the primary income generator of the household.
Consider a Term Life Insurance policy. It is an affordable option. You can choose from a range of policy terms, for example, 5 years, 10 years, 15 years, 20 years and more. With that said, Life Insurance can be affordable and can provide significant coverage in the event of your death.
There are many important factors to consider if an unexpected loss occurs. How will your funeral costs be paid? Who will pay your leftover medical bills? How will you get by financially during this trying time? This is where a Life Insurance policy provides the benefits you need to keep financial stressors at bay.
The benefits of Term insurance are that you can use it as a vehicle to protect your mortgage. If you died tomorrow and were close to paying off your home’s mortgage with a term life insurance policy this can still can still be achieved by using the proceeds of the insurance policy and paying off part or all of the mortgage balance. This is not something you think of right off the bat about Life Insurance that are important benefits to understand.
With the way the economy is today, and in light of recent events in the financial sector, it is difficult for many average two income families to meet the everyday financial demands of life. Believe me it is effecting everyone across the country. Since this is the current state of affairs, it is so extremely important for families to be protected in case one of those two necessary incomes is lost due to a premature death. It is more important than ever that you do not go unprotected for the sake of your spouse and children, if you have children.
It is important to understand that there are many different insurance products out there. Term Life Insurance does not have any cash value qualities, as some other insurance products do. This does not mean however, you cannot get significant and important coverage from this type of policy. Again, Term Life Insurance proceeds are primarily used to cover financial responsibilities in the unfortunate circumstance of premature death.
Families deserve peace of mind that should you pass away unexpectedly that they are financially protected. There is no reason for families to endure more trauma, in this case in the form of financial troubles, if there is a loss of a family member. It is so easy and affordable to protect your family. Term Life Insurance is so popular for this reason. If you are married and have a family, do not wait a Term Life Insurance policy should be considered right away. To compare life insurance quotes quickly you can log onto to the trusted website www.mybenelife.com.
Use MyBeneLife.com for your life insurance needs and get instant Annuity Quotes.
BARON
If you are married or if you have children you should really be sure that they are protected by Life Insurance. This is true especially if you are the primary income generator of the household.
Consider a Term Life Insurance policy. It is an affordable option. You can choose from a range of policy terms, for example, 5 years, 10 years, 15 years, 20 years and more. With that said, Life Insurance can be affordable and can provide significant coverage in the event of your death.
There are many important factors to consider if an unexpected loss occurs. How will your funeral costs be paid? Who will pay your leftover medical bills? How will you get by financially during this trying time? This is where a Life Insurance policy provides the benefits you need to keep financial stressors at bay.
The benefits of Term insurance are that you can use it as a vehicle to protect your mortgage. If you died tomorrow and were close to paying off your home’s mortgage with a term life insurance policy this can still can still be achieved by using the proceeds of the insurance policy and paying off part or all of the mortgage balance. This is not something you think of right off the bat about Life Insurance that are important benefits to understand.
With the way the economy is today, and in light of recent events in the financial sector, it is difficult for many average two income families to meet the everyday financial demands of life. Believe me it is effecting everyone across the country. Since this is the current state of affairs, it is so extremely important for families to be protected in case one of those two necessary incomes is lost due to a premature death. It is more important than ever that you do not go unprotected for the sake of your spouse and children, if you have children.
It is important to understand that there are many different insurance products out there. Term Life Insurance does not have any cash value qualities, as some other insurance products do. This does not mean however, you cannot get significant and important coverage from this type of policy. Again, Term Life Insurance proceeds are primarily used to cover financial responsibilities in the unfortunate circumstance of premature death.
Families deserve peace of mind that should you pass away unexpectedly that they are financially protected. There is no reason for families to endure more trauma, in this case in the form of financial troubles, if there is a loss of a family member. It is so easy and affordable to protect your family. Term Life Insurance is so popular for this reason. If you are married and have a family, do not wait a Term Life Insurance policy should be considered right away. To compare life insurance quotes quickly you can log onto to the trusted website www.mybenelife.com.
Use MyBeneLife.com for your life insurance needs and get instant Annuity Quotes.
BARON
Jan
14
Filed Under Insurance | Comments Off
Christian Ward asked:
Endsleigh, Barclays and Bradford & Bingley are among the big name insurers not covering downloaded music.
Read the small print on home contents insurance or risk losing the lot, warns Moneynet.co.uk
Many of the UK’s big name insurers are still not paying out for claims on the loss of downloaded music – despite the fact that digital sales now form a massive chunk of the UK’s music purchases
With the sales of online music expected to top £160m this year, the cost to the consumer of replacing their purchases without insurance is colossal, says financial data comparison site Moneynet.co.uk
“It would be a mistake to assume that your home contents insurance will cover your downloaded music should it be lost either through theft or damage of equipment,” says Moneynet.co.uk ’s Richard Brown.
“If your CD collection was stolen or went up in smoke it could cost hundreds to replace it but a standard home contents insurance policy would cover it. However, not all insurers have revised their policies to treat downloaded music in the same way.
“To avoid being left with the sound of silence and badly out of pocket, consumers need to check that their insurer has brought themselves into the 21st century.”
Some of the UK’s leading insurers, including Endsleigh – the biggest insurance provider for students – Barclays and Bradford & Bingley, whilst pondering the idea, do not currently pay out for their customers’ download losses.
Insurers who have kept pace with the online revolution include Churchill, Liverpool Victoria, Tesco Finance, Fortis and Zurich.
But they won’t pay out without proof of purchase, warns Brown, so keeping a record of receipts is essential to ensure any claim is accepted.
And even some of those insurers who do cover music downloads do not pay out for losses caused by computer viruses.
“Never choose an insurance policy just based on the lowest premium for your criteria,” advises Brown. “If you have specific needs, such as cover for music downloads or an unusual item, read the small print before signing up. If it’s not obvious online, make a phone call and ask the question.
“You could have a very expensive and disappointing shock if your claim is rejected and you have to fork out for a replacement or go without.
“But whatever insurance you have, there’s no substitute for making a back up of your music collection and storing it on a separate device somewhere safe.”
MASTERSON
Endsleigh, Barclays and Bradford & Bingley are among the big name insurers not covering downloaded music.
Read the small print on home contents insurance or risk losing the lot, warns Moneynet.co.uk
Many of the UK’s big name insurers are still not paying out for claims on the loss of downloaded music – despite the fact that digital sales now form a massive chunk of the UK’s music purchases
With the sales of online music expected to top £160m this year, the cost to the consumer of replacing their purchases without insurance is colossal, says financial data comparison site Moneynet.co.uk
“It would be a mistake to assume that your home contents insurance will cover your downloaded music should it be lost either through theft or damage of equipment,” says Moneynet.co.uk ’s Richard Brown.
“If your CD collection was stolen or went up in smoke it could cost hundreds to replace it but a standard home contents insurance policy would cover it. However, not all insurers have revised their policies to treat downloaded music in the same way.
“To avoid being left with the sound of silence and badly out of pocket, consumers need to check that their insurer has brought themselves into the 21st century.”
Some of the UK’s leading insurers, including Endsleigh – the biggest insurance provider for students – Barclays and Bradford & Bingley, whilst pondering the idea, do not currently pay out for their customers’ download losses.
Insurers who have kept pace with the online revolution include Churchill, Liverpool Victoria, Tesco Finance, Fortis and Zurich.
But they won’t pay out without proof of purchase, warns Brown, so keeping a record of receipts is essential to ensure any claim is accepted.
And even some of those insurers who do cover music downloads do not pay out for losses caused by computer viruses.
“Never choose an insurance policy just based on the lowest premium for your criteria,” advises Brown. “If you have specific needs, such as cover for music downloads or an unusual item, read the small print before signing up. If it’s not obvious online, make a phone call and ask the question.
“You could have a very expensive and disappointing shock if your claim is rejected and you have to fork out for a replacement or go without.
“But whatever insurance you have, there’s no substitute for making a back up of your music collection and storing it on a separate device somewhere safe.”
MASTERSON