Life Insurance Journal

LIFE INSURANCE AND DISABILITY PROTECTION

noreply@blogger.com (Ivon T. Hughes) — Tue, 22 Jul 2008 02:48:00 +0000

Life insurance is an essential tool that anyone (and everyone) should have. How much life insurance you should have depends on various factors. A good life insurance agent will help you determine the right life insurance policy for you. However, you should have a decent amount of information to make a decision regarding the amount of life insurance protection you need.

In a recent report, done by Market Watch, a number of great tips were produced by life insurance professional Frank Durras. In his tips, he describes how you can make the right decisions about the amount of life insurance you need.

He recommends calculating your debt and any ongoing financial obligations you have to be sure your term life insurance provides enough protection. Also, take into account the future value of your income. A variety of types of insurance is available to Canadians looking for life insurance. Long-term care insurance is purchased when you are about 50 but should be selected earlier if you have a family history of chronic illness.

When it comes to finding the best Canadian life insurance, and to learn the rates on term life insurance today, your best bet is to work with an insurance agent to get a personalized figure. Doing some of this comparison-shopping on your own is helpful, but an expert quote is the best route to take.

LIFE INSURANCE SHOULD NOT BE LAPSED BY SENIORS

noreply@blogger.com (Ivon T. Hughes) — Mon, 14 Jul 2008 14:04:00 +0000

Life insurance is a lifeline for many people, and often, seniors are the people that need a life insurance policy most. Yet, according to this story done by MarketWatch, many seniors are slipping in their insurance coverage and even allowing their life insurance plans to expire. You should renew your life insurance or you could be risking various casualties along the way.

The fact is, life insurance helps provide a range of benefits to those that have it in place. Life insurance provides payment at the time of death. That payment can be used to pay medical expenses, to pay for daily living expenses and even to pay for your spouse's final years. Without this type of life insurance protection, many seniors leave their loved ones with little to nothing to manage daily life.

In the article, there is an explanation about why this is happening. The reasons are simple: many seniors just do not know what options they have in renewing life insurance plans. They just do not have enough information on what is available to them in life insurance to make a good decision.

Without having a reliable life insurance policy, though, many are risking costly financial situations. Life insurance information is readily available to seniors who may have an expiring policy. More so, these life insurance companies are available to answer essential questions.

Term Life Insurance Best Bet For Most

noreply@blogger.com (Ivon T. Hughes) — Sun, 13 Jul 2008 14:03:00 +0000

If you are trying to determine which the best life insurance for your particular needs is, term life insurance may just be a best bet. In a recent response to a reader's question, the StarTribune.com, which is based in Minnesota, offered a great explanation of why term life insurance really is a fantastic opportunity for those who are looking for life insurance protection.

As the author of the story relayed the best reason to buy life insurance is to protect your family from long-term problems financially if something should happen to you while they are dependent on you for everyday life expenses.

There are plenty of benefits for term life insurance including low life insurance premium payments, good coverage and a directly payout of the insurance should you die before you should. When considering term life insurance, look at what it will cover for you. For example, if you are young, you may have a mortgage, credit card debt, and a family you are raising which life insurance can help cover. Because it is a simple, straightforward type of life insurance policy, it does just what you need it to. Term life insurance provides protection for your family when they need it the most.

Women Without Insurance: Michelle Obama Makes The Case

noreply@blogger.com (Ivon T. Hughes) — Sat, 12 Jul 2008 14:01:00 +0000

Regardless of location, women need insurance. While Michelle Obama addressed this in a recent speech she gave, the need for all people, regardless of location (and even out of the country needs) for life insurance is just as great. The health insurance crisis is one thing, but there is just as large of a crisis in terms of quality life insurance.

Does it matter if you have life insurance? Term life insurance can be a saving grace for those that face disasters earlier in their lives than others. While people are living life longer, the risks are greater for death an earlier age, including heart related conditions, diabetes and cancers. Therefore, if you do not have term life insurance to help you, chances are good you do not have insurance to protect your family.

Health insurance is important, as the Obama campaign is talking about. Yet, women of all ages and countries need to focus on what could happen to their families if they did die suddenly. Life insurance provides the ultimate protection, smoothing away all the problems, concerns and worries of what could happen in life. If you do not have life insurance yet, now is the right time to talk to an insurance company about the options you have in life insurance policies.

Life Insurance Policies Are Not For Down Times

noreply@blogger.com (Ivon T. Hughes) — Fri, 11 Jul 2008 13:59:00 +0000

Do you have life insurance? Recently, some people have resorted to cashing in their life insurance policies in the hopes of using the funds for the rough economic times they are facing. While some insurance policies do allow for this, with something called a life settlement, it may not be the best route to take, especially when those funds from your insurance policy will be necessary for their initial intended purpose for later in life.

In a recent article by MarketWatch, there are some harsh warnings about cashing in your life insurance, your 401k or other retirement accounts you may. The warning comes from the Financial Industry Regulatory Authority. The Chief Executive Officer of that organization, Mary Schapiro, had this to say, "Each of these should be considered strategies of last resort," the article quoted. "They may raise cash quickly, but each also carries long term consequences that can undermine financial security in retirement and post the potential for losing a significant, and sometimes irreplaceable, asset.” Life insurance is a protection for later.

Life insurance is a very important financial security right now, with a recession on the doorstep of the country. Yet, down the road, the value of the life insurance policy will be even more essential to the overall financial well being your family has. For those who need life insurance and do not have life insurance yet, now is the best time to get into the right life insurance policy.

Life Insurance's Role In Retirement Planning For Your Spouse

noreply@blogger.com (Ivon T. Hughes) — Fri, 11 Jul 2008 01:55:00 +0000

Use life insurance as a life protection. Taking care of your spouse should something happen to you is something that life insurance can help with. Today, the demands on retirement income are high, and most people have not put away enough funds in their retirement plans to successfully build themselves a nest egg to protect both spouses. Life insurance policies can help provide some additional protection.

This need for life insurance becomes evident. In recent news article by Fox Business, outlined were various ways that spouses could add to their available assets (which life insurance should be one of) so that when one spouses passes away, the other is still financially stable. As noted in the article, even with a sizable IRA, there may still be the need for additional income. In these situations, considerations for life insurance should be made.

Having a life insurance policy could help prolong life by providing additional funds to the remaining spouse that can be used to give them access to quality healthcare and medications. A policy can offer additional help in remaining in their home, paying bills or just living the life they have come to know.

With this type of insurance, it becomes essential to consider insurance plans that will provide such an output before the policies become expensive to the couple. Therefore, a young couple is often in the best place possible for getting an affordable life insurance policy to care for their spouse through retirement. Those without such a policy should seek a solution sooner rather than later.

FAQ: What Is A Life Annuity?

noreply@blogger.com (Ivon T. Hughes) — Fri, 02 May 2008 15:54:00 +0000

Frequently asked questions: What is a life annuity?

How Does Disability Insurance Work?

noreply@blogger.com (Ivon T. Hughes) — Fri, 25 Apr 2008 15:27:00 +0000

Frequently asked questions: How Does Disability Insurance Work?

What Is The Difference Between Critical Illness and Disability Income Insurance?

noreply@blogger.com (Ivon T. Hughes) — Thu, 24 Apr 2008 15:22:00 +0000

Frequently asked questions: What is the difference between critical illness and disability income insurance?

How Much Life Insurance Do I Need?

noreply@blogger.com (Ivon T. Hughes) — Wed, 23 Apr 2008 13:35:00 +0000

Frequently asked questions: How much life insurance do I need?

How do I buy life insurance?

noreply@blogger.com (Ivon T. Hughes) — Tue, 22 Apr 2008 15:36:00 +0000

Frequently asked questions: How do I buy life insurance?

Why should I buy life insurance?

noreply@blogger.com (Ivon T. Hughes) — Mon, 21 Apr 2008 12:59:00 +0000

Frequently asked questions: Why should I buy life insurance?

FAQ: What Sort Of Life Insurance Is Best For Me?

noreply@blogger.com (Ivon T. Hughes) — Thu, 17 Apr 2008 12:45:00 +0000

Life insurance frequently asked questions (faq): What sort of life insurance is best for me?
Play video to get the answer.

Term Life Insurance Advantages

noreply@blogger.com (Ivon T. Hughes) — Tue, 03 Jul 2007 18:04:00 +0000

If you have a wife and kids, then there is no question about it that you should have a life insurance policy on you. Just think if god for bid something horrible happened to you and you passed on, what would that mean for your family. I know it’s hard to plan for your death, but you have to think of this when you have a family to protect and take care of. If you are the main source of income for your family then you must learn more about getting a life insurance policy.

There are two main types of life insurance – whole life insurance, and term life insurance. Both have their advantages and disadvantages. But today we are just going to discuss term life insurance. And before I go into the many advantages of having term life insurance I want to explain exactly what this is.

Term life insurance will provide you with death protection for a certain period of time, or often called certain term. It’s often used to provide temporary life insurance protection without the huge cost. This term life insurance will cover you for a predetermined period of time, such as five or ten years. And if you as the policy holder was to die during this time of coverage then your family will received compensation. When the term is near the end then you will have the option of renewing your term life insurance.

Alright so besides term life insurance being the least expensive form of life insurance it does have many other advantages.

Lower Premiums - Usually the main reason that people do not get life insurance is because it can be costly, and who has money to just throw away for the possibility of their death. It’s not something that you want to think of, but it is important. Term life insurance has much lower premiums than that of whole life insurance. And you get a lot more coverage at this lower premium, which leads me to the next advantage of term life insurance.

Higher coverage – This may sound like a dumb question, but there is logic behind it somewhere, it will become clear I promise you.

Would you rather your family have $100,000 if you should suddenly pass, or would you rather them have $500,000.

Seems obvious doesn’t it.

I can hear you right now, “Umm, well how much would it cost me now.”

Alright so you don’t plan on dying any time soon, so what is the difference for now. You’d rather save the few extra bucks. Well it’s true you don’t plan on it, but that’s why there is something called accidental death, these are not planned and you don’t expect them to ever happen to you, but they can and it happens everyday.

Term life insurance will give you a much higher coverage at a much lower cost then that of whole life insurance. So you can give your family more.

You have the ability to cancel or reduce policy at any time – This is something that is very important. You are not bound to anything, situations change things pop up at the most inconvenient times in our lives. So let’s say you lost your job and you can’t afford to pay the premium that you are paying right now you can simply reduce the coverage. It’s as easy as that.

As you can see there are many advantages of having a life insurance policy for you, and getting a term life insurance policy has even more advantages then you can ask for. So go and get a quote today and learn more about what you can give to your family by getting a term life insurance policy.

Disability Insurance You Own Is Better Than One You Don't

noreply@blogger.com (Ivon T. Hughes) — Fri, 18 May 2007 18:19:00 +0000

Most people with group insurance plans have long term disability. However, they are "one size fits all" and there are situations where the policies will not pay. You are covered, but not to the extent that you think.

Here are some of the important provisions in a typical group long term disability plan and a typical individual disability insurance plan.

Can The Disability Insurance Be Cancelled?

Group long term disability plans can be cancelled by the insurance company if their claim experience is bad. Second, your employer could decide to cancel the plan at anytime. Or the company could be sold or merged etc. Or you could be fired. And if you are not in great health, how are you going to get disability insurance?

When you have your own disability insurance policy, the disability insurance company can never cancel the policy or raise the rates. You can decide when you want to alter or stop the coverage. But check exactly what is being offered.

Can Disability Insurance Premiums Be Increased?

If the insurer sees an increase in claims, it can raise the premium on any group insurance plan, including a long term disability plan. Individual disability insurance plan premiums are frozen for the duration.

Is Disability Insurance Portable?

These days you change employers frequently and you cannot take your group disability insurance policy with you. By contrast your individual disability income plan is completely portable since you own it!

Today the average person will change jobs or move locations on average 8-10 time during their lifetime and there is no assurance that any employer will offer a long-term disability insurance or indeed any insurance at all.

Any Taxation of Disability Insurance?

Group long term disability benefits are taxable as income, as you did not pay the premium. Individual disability insurance benefits are 100% tax free as you pay the premium.

Your Own Occupation Is Important For A Disability Insurance Policy

Individual disability insurance policies protect the individual in his or her "own occupation." Typical wording for group long term disability insurance, as it pertains to occupation, is: "For the first two years, the inability to perform each and every duty of your occupation; after two years, the inability to engage in any gainful occupation."

This means you are covered in your own occupation for two years. After that, if you can do any type of job, the disability insurance company will not pay.

Certain occupations can be covered forever by individual policies. For example, if a lawyer becomes disabled to the extent he or she cannot practice, but could teach law at a university, the individual policy would continue to pay the disability benefits. Moreover, the lawyer would receive both the disability insurance benefits and the university salary.

Presumptive Disability Insurance

Disabilities that are "presumptive" are those where disability insurance pays the full benefit even if the person is employed. The loss of use of two limbs in a car accident is a typical example. This is a benefit provided by individual policies, but not by group long term disability insurance plans.

Partial Disability Insurance Coverage

Over 60% of the claims filed are for partial disability.

An individual plan pays a percentage of the total benefit that represents the percentage of income lost. For example, if a person making $4000 a month with a $2400 a month individual policy benefit loses 60% of their income due to a disability, the policy would pay 60% of $3,000 or $1,440. Most group plans do not

have a short 2400 term disability insurance benefit or partial disability insurance benefit.

Disability Insurance Overall

You have seen that group long term disability income plans are restrictive, are cancelable and premiums can be changed. Benefits are taxable and any payments offset by other plans. Your occupation definition is not protected and most importantly, does not cover partial disability.

Your own disability insurance plan has what you need. It costs more, but if you have an accident or injury, it will be comforting to know your income will continue on because you bought disability insurance.

LIFE INSURANCE - WHY DO I NEED IT?

noreply@blogger.com (Ivon T. Hughes) — Wed, 25 Apr 2007 17:41:00 +0000

You don't want to leave your family unprepared for what will happen to them financially if you do not get sufficient life insurance coverage. So planning today can provide the income your family will need if you are no longer here. Following are some reasons to consider life insurance from a company that will be there for your family. Every person and every family have their own reasons for life insurance, but the need for protection is at the base of all the needs.

Life Insurance To Replace Lost Income

People buy life insurance to replace income lost if something happens to them. It provides the capital which provides the income. Providing money for your family through life insurance is the most cost effective way even if you have substantial capital. You are buying protection for your family for pennies on the dollar.

Life Insurance Can Pay Off Debt

Debts can be difficult to pay , especially without a regular income. Life insurance capital can be used to provide income to pay off debts at the death of a loved one. If you die, the last thing you want is for your relatives to be hounded by debt collectors.

Life Insurance Pays Final Expenses

Final expenses can be large especially if there has been a long illness, along with legal, medical and funeral costs to pay. There is no real way to assess how much money will be needed but you should always plan on the maximum instead of the minimum.

Life Insurance Helps Pay For Education

Educating children is expensive and needs to be well thought out. Many people contribute funds each year but if something unexpectedly happens there may not be enough time to build up a bank for education. Life insurance helps create a cash fund that you can count on.

Finally remember that no widow or widower has ever been left too much capital through life insurance!

And Finally Life Insurance Can Provide A Pension

If you have a joint to die life insurance policy, the proceeds from such a policy or a single life policy could provide an income as a pension.

Suppose you had a joint first to die policy with your spouse. Your children grow up and leave and you are left wondering what to do with this large life insurance policy you bought to protect them. As neither of you died and the need for it has passed, you now have to make a decision.

But while thinking about this, your spouse dies and so you inherit the lump sum. It now provides you with an extra income from capital which can now be passed down the line at your death.

Considered wisely, there are not too many products as versatile as life insurance.

TERM LIFE INSURANCE COVERAGE IS A GOOD DEAL

noreply@blogger.com (Ivon T. Hughes) — Wed, 18 Apr 2007 14:48:00 +0000

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.

Life Insurance Is For Your Life

noreply@blogger.com (Ivon T. Hughes) — Tue, 17 Apr 2007 18:43:00 +0000

Life insurance should be a part of your overall financial planning. While some life insurance policies can be used to help you achieve your financial goals, others just provide protection. But whichever type you choose, it is important you understand your needs and the options available so you get the best value for your life insurance coverage.

How Much Life Insurance?

First, determine how much coverage you'll need and how much you can afford. Now these 2 items may not match. However, if you have a young family, you need to get the most coverage for the lowest price. That means term life insurance which indeed, meets the needs of most everyone.

What Type Of Life Insurance Do I Need?

Next choose a term or permanent life insurance policy. Term life insurance provides protection for a specific period of time, normally 10, 20 or to age 100 in Canada.

Permanent life insurance policies are whole life and universal life. These policies offer death benefits and a savings account (cash surrender value) so that you can get money back either by cashing in the policy or by borrowing against it. However it is my firm belief that you should only buy whole life insurance if the premium is about the same as the term life insurance. And that will only happen in your sixties or beyond. Otherwise you are paying a higher premium for the same coverage And then, if you want to borrow your own money out of the policy, the insurance company charges you interest! And if you don't pay it back, the coverage is reduced by the amount of the borrowing. And you still continue to pay the far higher premiums, though now for less life insurance coverage. Why would you do this?

Is Universal Life Insurance Same As Whole Life Insurance?

No. In whole life insurance the savings, so called, are in the premium itself. In universal life, the investment is added on if you so choose. But if you do not add any investment to a universal life insurance plan all you have is an expensive term to 100 life insurance policy.

Lesson: Be aware of what life insurance you buy.

Check the financial strength of the companies who will have to stand behind the policies you're considering.

Health Insurance and Diabetes

noreply@blogger.com (Ivon T. Hughes) — Thu, 28 Dec 2006 19:19:00 +0000

If you are younger and dependent on your parents for health care,you need to shop early for health insurance,especially if you have an existing medical condition.

Health insurance for anybody is important but read this story to see how a lack of health insurance could affect you. Read more.

LIving Will Is A Must Today

noreply@blogger.com (Ivon T. Hughes) — Wed, 27 Dec 2006 18:33:00 +0000

Read this about the need for a Living Will

Health Insurance Should Be Your First Priority

noreply@blogger.com (Ivon T. Hughes) — Thu, 21 Dec 2006 15:39:00 +0000

To have adequate health insurance should be the first thing on your mind when you are thinking about insurance.

Health insurance comes even before life insurance because if you can't keep yourself healthy. What's the point? Read more.

Living Wills Could Help Here

noreply@blogger.com (Ivon T. Hughes) — Tue, 19 Dec 2006 16:58:00 +0000

Could a Living Will help in this situation? Unfortunately some of us will find ourselves in this predicament,either personally or concerned with a relative.But read on to see if you think a Living Will would be seen as valid. Read more.

Living Wills Don't Necessarily End Disputes

noreply@blogger.com (Ivon T. Hughes) — Fri, 15 Dec 2006 17:31:00 +0000

Once you have made you Living Will, you have done all that you can to male sure that your last days are provided for. But a Living Will won't necessarily end a family difference. Read more.

Living Wills Offer Peace Of Mind

noreply@blogger.com (Ivon T. Hughes) — Thu, 14 Dec 2006 19:29:00 +0000

Once you have made your Living Will,as well of course as your Last Will and testament,you know that you have done your best to protect your family, no matter what happens. Read more.

Critical Illness Policy Is Needed By Everyone

noreply@blogger.com (Ivon T. Hughes) — Tue, 21 Nov 2006 18:08:00 +0000

You never know when you will need a critical illlnes policy.And that is borne out by this story.Who would ever imagine a 39 year old woman, in apparently great shape,needing to call on the resources of a critical illness policy? Read article.