by wallyg

Term Life Insurance Coverage Is A Good Deal

One financial product that is significantly cheaper than things like gas and food these days is term life insurance. It is estimated that term life premiums have fallen 30% or more in the past 10 years. Can you imagine buying gas at the same price you paid 5 years ago? It doesn’t get any better than that.

Why Is Term Life Insurance Cheaper?

As people are living longer term life insurance companies will have fewer claims in any given period. Add in competition and you will see why you can get a great price for your term life insurance protection. Term life covers you for a specific period, normally 10 or 20 years, is simple to uinderstand and it is easy to compare the price of one company to another.

But Do You Need Term Life?

Children don’t need life insurance, but parents with young children need a lot of term life insurance as the cost of bringing up and educating children mount every year. For 90% of people, term life is what they should buy. Term is simple and cheap and it provides coverage for a lot of personal needs that will fade away over time. Term life does not have lots of bells and whistles which is why it is cheap. If you die, your beneficiaries get the money.

How Much Term Life Insurance Do You Need?

Some brokers suggest 7 times annual earnings; others say 10 times. The best way is to look at your own family situation. Who do you want to protect in case you pass away early? Many people need term life insurance to cover the mortgage, college bills and other family needs. Then, how much annual income will your family need on a day to day basis?

What Sort Of Term Life Is Recommended?

Mostly recommended is level term life insurance where the premium remains constant. Most life insurance companies sell this level term life insurance and increase the premiums after the first 10 or 20 years has expired.

Term policies can run 10 or 20 years or to age 100, with the 10 and 20 year term being the most popular. If it turns out you don’t need the policy for that length of time, you can drop some or all of it.

Finding a good online broker to do the shopping for you is more than half the battle in getting the best deal for your term life insurance coverage.

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Question by kelle: What exact is whole life insurance, and how do life insurance companies profit from selling it?
Agents are always extremely keen about selling my family whole life insurance instead of term. According to the agents, whole life is preferable to term since it does not expire and as a result the beneficiary is guaranteed some payment upon the death of the insured. However, why would the insurance company profit from such a setup if they are bound to pay back an amount that is at least equal to the total amount paid?

I have tried to do some research on my own, but I still can’t seem to fully understand this matter. Any help will be greatly appreciated!

Best answer:

Answer by Bibs
Insurance companies are experts on statistics. They know that at your age you have a certain life expectancy. They will take your payments and invest them mostly in long term bonds, real estate mortgages, and some other investments. They will calculate the return on these investments over your estimated life span, calculate their expenses and profit, and charge you a premium large enough so that they can pay you the face value at the time of your calculated death.
The advantage of whole life is that you will pay a fixed premium over the life of the policy. The disadvantage of term insurance is the premium will increase every year or every couple of years until you can not afford to keep the policy. By the time you are 70 or so, the annual premium will be the face value of the policy. A better option would be a 20 pay or 30 pay life policy. With this kind of policy you would pay premiums for 20 or 30 years, and then your policy would be paid up in full. Thus in retirement years, when your income drops you would not have to pay any premiums. Also, if you got laid off and could no longer afford the policy, you could withdraw the cash surrender value.

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by [ Tâm N ]

Term Life Insurance With Accidental Death And Dismemberment Rider

Adding an accidental death and dismemberment rider to a term life policy is an ideal way for those who need extra protection to get combined and comprehensive coverage.

Accidental death and dismemberment riders are also known as “A D & D Riders” as well as “Multiple Indemnities.” Multiple indemnities mean that an insurance company will pay a multiple of the policy’s face value. This is the amount that the policy would pay to the beneficiary in the event of the death of the insured person.

One common example of indemnities is double indemnities. This pays an equal amount to the face value of the policy so if the insured person dies in an accident, the beneficiary receives the policy face value and the A D & D Rider face value, which is twice as much as the original amount.

Additional Occurrences Covered by an A D & D Rider

Depending on the rider coverage you choose to add to your term life insurance policy, A D & D Riders may also cover loss of sight or the loss of one or more limbs. Of course, you would have to double check the provisions of your policy as each carrier stipulates specific designated time frames when payment can be received from the date that your accident occurred. For example, imagine an insured person was in a work accident where a crate fell on the insured person’s legs, damaging the limbs enough so that their legs needed to be amputated a few weeks after the accident occurred. Usually the coverage period would depend on the state in which that the policy is drawn, however, a 90 day waiting period after the limbs are amputated is common for this type of rider.

The most important thing to keep in mind is that A D & D Riders do NOT cover death by any form of illegal or crime related activities. This type of rider also does not cover death by suicide or death by a malfunction of the body. An example of “malfunction of the body” would be someone that suffered a stroke or heart attack while driving. If the heart attack or stroke occurred before the accident and the accident was the result of that bodily malfunction, death as a result of the accident would not be covered. Accidental death means that an unforeseen circumstance caused death that is unrelated to the body. The death had to have been unexpected. This is where the term life insurance policy becomes important. While the insured would not benefit from the rider, they would most certainly benefit from the term life insurance policy.

Aside from accidental death, A D & D riders also cover dismemberment. In the case of the accidental loss of one arm or one leg only one half of the death benefit would be paid to the insured. In the event that the insured person suffered the loss of two or more limbs (combination of arms and legs), then that would result in the entire face value (death benefit) being paid to the insured. In this event, the A D & D Rider would be terminated or waived because the entire face value of the death benefit/term life insurance policy would have already been paid out. Most A D & D Riders also include the sudden loss of vision. The same principles apply. If one eye is lost only one half of the benefit is paid out. If both eyes are lost then the insured will receive the whole face value of the death benefit.

A D & D Riders are important to consider adding to term life insurance policies especially if you use your body to earn your livelihood. Make sure to get a term life insurance with rider quote from a few different carriers to ensure the best rate.

Technorati Tags: Accidental, Death, Dismemberment, Insurance, Life, Rider, Term

by wallyg

Online Life Insurance Quotes ? Getting the Quote You Want at a Competitive Rate

Online life insurance quotes are a quick and easy way to compare prices of different policies. Many people are uncomfortable sitting down with an insurance agent until they have some idea of the cost they can expect to pay for life insurance. There are many variables when buying insurance, and life insurance online quotes are an efficient way for the consumer to have some idea of the amount their premium will be for the amount of coverage that they want.

Online life insurance quotes allow the customer to plug in a variety of numbers, from desired annual premium to amount of coverage, and see instant online life insurance quotes. This allows the consumer to know how much insurance they can afford before meeting with an agent. Are you interested in getting some online life insurance quotes? Here are some things to keep in mind:

Know where your quote is coming from: Online life insurance quotes are available directly from individual insurance companies as well as through websites that pull quotes from around the web. While both methods are acceptable, it makes sense to understand who is providing you with the quote. If one company seems dramatically less expensive than the others, for example, they may be the ones providing the online life insurance quote, and their quote may have certain restrictions. By knowing who is providing the instant life insurance quote, you will know if the deal seems too good to be true.

Understand that instant online life insurance quotes are not cast in stone: Answering a handful of questions quickly on the internet will not provide you with an exact premium amount. It will give you a very close estimate however. The estimate should be close enough that you can decide how much coverage; and what company will best fit into your budget. Don’t expect an exact amount from online life insurance quotes. 

Know when to pick up the phone: Online life insurance quotes are a helpful starting point when deciding how much life insurance you can afford, but it does not eliminate the need to talk with an agent. An experienced insurance agent can let you know if there are ways to reduce the cost of your life insurance premium. There are many simple ways, such as having more than one policy through the same company, and more complicated ways, such as giving up smoking, that can lower the cost of your insurance premium. Each insurance company places a different importance on various factors, so what lowers your premium substantially with one company may not affect it at all with another.

Online life insurance quotes are an important first step when shopping for life insurance. Online quotes allow you to budget and plan for the expense of life insurance, but should not be considered the only factor when shopping for life insurance. Use online life insurance quotes to save time as you narrow down your choice in companies. Once you have narrowed down your choices to the most reasonable prices and best coverage, customer service becomes the final factor.

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Destroying Insurance Markets: How Guaranteed Issue and Community Rating Destroyed the Individual Health Insurance Market in Eight States

During the early 1990s, state legislators and insurance regulators faced growing public concern over two health insurance problems. The first was rising insurance premiums, in part the result of increased utilization but also because a growing number of state-imposed mandates and restrictions on managed care practices threatened to price middle- and low-income consumers out of the private insurance market. The second was job lock,; the inability of people to take their health insurance with them

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Former Ill. governor faces fight of his life
The day before Rod Blagojevich’s world came crashing down, he stood before the TV cameras confident and defiant, as always, declaring he had nothing to hide, even as a giant political scandal was about to engulf him. Rod Blagojevich – Television – Arts – Illinois – Collecting
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Savvy Senior: Legal help is available for seniors
DEAR SAVVY SENIOR: What do elder law attorneys do? My parents need some legal help with an insurance problem and a long-term care issue, but they have limited funds. What can you tell us and where can we find help?
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Consumer Guide to Term Life Insurance (Summer 2007)

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Pelosi: ‘We Passed Health Reform to Improve Medicare and Ensure Seniors Can Count on It Now and for Generations’
WASHINGTON, May 26 /PRNewswire-USNewswire/ — Speaker Nancy Pelosi, Health and Human Services Secretary Kathleen Sebelius, House Majority Leader Steny Hoyer, Barbara Kennelly of the National Committee to Preserve Social Security and Medicare, and Dr.
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Lawmakers OK extending jobless benefits
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AccuQuote Life Insurance Blog

AccuQuote blog is brought to you by AccuQuote.com, a leading provider in term life insurance for people across the U.S. This blog is dedicated to providing you with valuable information from experts on the topics of insurance, financial planning and personal finance. Kindle blogs are fully downloaded onto your Kindle so you can read them even when you’re not wirelessly connected. And unlike RSS readers which often only provide headlines, blogs on Kindle give you full text content and images, an

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