life-insurance-advice

A look inside The Independent Order of Foresters (Final Expense)

Thu, 30 Sep 2010 20:30:42 +0100

Welcome to my first video of a look into some of the best life insurance products out today. This will be a continuing series of videos to help people make some hard decisions. Y: ou can view more videos here and also I post them here first

http://www.youtube.com/user/powersinsurance1

Mortgage Protection, How Can It Help?

Sun, 11 Jul 2010 19:21:53 +0100

    In this article we will discuss one use of Term Insurance and that is Mortgage Protection. This can be a very useful tool in any homeowner's toolbox. We have already discussed what exactly Term Insurance is, but if you have not read or know about it yet please click on the Term Insurance tab on the Catagories menu.

Meet Jack and Ruth

    Jack and Ruth have just purchased a home at a great deal here in Florida for $80,000. They are very excited, Jack is 30 and Ruth is 29. This sounds like their lives are right on track to start a family and have a happy life together. But what would happen to Ruth if Jack dies in 5 or 10 years? Do they have enough money put back so that Ruth can live a comfortable life taking care of the kids and be able to keep their wonderful home?

    These are questions that many people do not think about, especially after they just bought their home. But this is something they should think about. Let's say that Jack and Ruth were smart when they got married and Jack took out a $25,000 life insurance policy on both of them. They both wanted to leave each one enough money for a funeral and some money to buy a little bit of time to get all the financial matters straight. That is great! But, is $25,000 enough to pay for a funeral, and, pay off the home they just bought for $80,000? No, it will never come close! So what can they do?

Mortgage Protection

    How this would work is purchase Mortgage Protection Insurance, all Mortgage Protection Insurance is, is a Term Life Insurance Policy for the amount they need to cover the Mortgage they have on their home. So in the case of Jack and Ruth they would need a $80,000 life insurance policy in Jack's name. But why Jack? Well the life expectancy for men is much lower than for women. That is why life insurance is cheaper for woman than men. Now would it be smart to replace the $25,000 policy they already have? That depends on their situation. How much money can they afford to pay for premiums?, etc... it is hard to say, that is a choice they would have to make and sit down and budget if they can afford paying for both or just replace it.

    So let's just say they opt to keep what they have and add the Mortgage Protection Insurance to what they have. They shop around and find a good price and call for an agent to meet with them and discuss their options. One very important addition they can add to the Mortgage Protection is a Rider. The name of this Rider is "Return of Premium Rider". What this does is say Jack and Ruth decide to purchase 20 years of Protection, and they add this Rider, at the end of the 20 years instead of paying all that money for 20 years and getting nothing back, they will get a nice big check from the insurace company for ALL OF THE MONEY THEY PAID FOR PREMIUMS! Sounds great doesn't it? Get the protection your family will need, and if nothing happens no problem you just get all your money back at the end of the policy date.

    Many people now forget to think about protection. This can be extremely helpful for anyone who has just bought a home. And if you decide you need it, you can add the Return of Premium Rider to the policy and get all your money back if you never use it. Our lives are always changing, never think because you purchased a policy 10 years ago that it will give you the help you need now. If you need someone to stop by and look over what you have now to protection your family I will be more than happy to review your policy for free. To make sure you and your family get what you need when it matters the most.

Take Care!

Whole Life and Final Expense Insurance

Tue, 09 Feb 2010 03:00:23 +0100

Many people report that having whole life insurance explained to them by an insurance salesman results in just this experience. Read this article and understand – without wading through tons of technical terms in the process!

Defined simply, whole life insurance policies offer lifelong coverage to the policyholder. These policies provide designated recipients, such as spouses or children, with a set amount of money in the event of the holder’s death. If the purchaser lives to be 100 years of age, he or she will receive the money instead.

Whole life insurance policy owners pay a set amount of money each year to keep the policy in force. This amount, or premium, never increases. The cost remains the same even if a person gets old or becomes terminally ill.

Premiums for these policies are higher than those for term life insurance. If a person is young and healthy, this additional cost may seem a waste of money. Indeed, someone who purchases a 20-year term policy at age 20 would pay little for term life insurance, but would pay a significantly higher premium for a whole life policy.

As a person ages, however, or becomes ill, term life premiums can skyrocket and quickly become unaffordable. In contrast, most whole life policies offer guaranteed premiums. This means that the cost of a person’s whole life premiums will never increase.

The actual value of a whole life insurance policy is the amount of coverage elected by the purchaser. If the person dies or turns 100, the total amount of the policy will be paid to the appropriate person. There are other circumstances, however, under which a person may receive a percentage of the policy value.

Whole life insurance is an investment, and policyholders can borrow against or cash in their policies. If they choose to do this, they receive only the current cash value of the policy. They are not reimbursed for the percentage of the premiums that paid commission fees and investment costs.

Many people, rather than asking to have whole life insurance explained to them, opt instead to purchase less expensive term insurance. Now that you understand more about it, you can ask questions from your insurance agent and make a more informed decision. This will help you to make the best possible decisions in safeguarding your family’s future.

Final Expense

Final Expense works exactly the same as Whole Life Policies, but they are just smaller amounts. Most Companies only offer up to $35,000 for a policy. They are designed to pay for all of your expenses when you die. An average funeral will cost around $8,000, and that is not counting all the bills you will have accunulated before your death. (hospital bills, nursing home, hospice, etc...)

Final Expense is very reasonably priced and some Companies have very little underwritting involved. Most of the time as long as you can answer a few questions you will be issued a policy without the need of an exam or blood work. This is an alternative to someone who has a very tight budget and wants to make sure that their death doesn't cause a burden on their loved ones.

Enjoy,

Term Life Insurance

Tue, 09 Feb 2010 02:37:35 +0100

The most popular life insurance is term life insurance and this is often the type of life insurance provided by your employer in a group insurance policy. It is called term insurance because it covers an individual for a set length of time. At the end of that time, the insurance expires. Term insurance is considered the most inexpensive way to purchase a substantial amount of life insurance for a specified period of time.

Term life policies are usually available in 5, 10, 15, and 30-year increments. The most popular are 15- and 30-year term life policies - these policies are usually started at the beginning of a mortgage in order to pay off the house in case of a spouse or family member's death. Some companies refer to 15- and 30-year term life insurance policies as mortgage life insurance.

If an person purchases a 15-year term insurance policy for $100,000 and the insured person dies within that 15-year period, the beneficiary is paid the full face value of the life insurance policy. The payout is only contingent on the premiums being paid up to date and the policy not expiring before death occurs. So if the insured has been paying the premium on time and it is within the policy term, the beneficiary will receive the benefit payout.

Some policies include a guarantee of reinsurability that would allow an insured that acquired a terminal illness but did not die during the term of a policy to renew for another term regardless of insurability. The new policy premiums will be much higher because of the increased likelihood of death and payout of the life insurance policy during the next specified term.

A term life insurance policy may have exclusions under which the insured will not be covered even if death occurs during the term period of the policy. In many cases, if the insured dies from an excluded activity, the premiums paid into the term insurance policy may be refunded. Always make sure you read your policy completely before signing or paying for premiums.

Some common exclusions include:

Suicide exclusion - If an insured commits suicide during the first two years of the policy term, the policy will not pay out. This is to deter purchases of term insurance to get out of a difficult financial situation.
Aviation exclusion - This exclusion applies only to private aircraft and not to passengers on commercial aircraft.
War exclusion - Many term insurance policies will not pay out a death benefit if the cause of death is due to a war. This exclusion applies to civilian casualties as well.
Dangerous activity exclusion - If you are planning on skydiving or auto racing, check your policy exclusions to make sure you are covered during an activity that is putting your life at extreme risk.

The term life insurance policy is considered pure insurance protection because premiums, in most cases, are not expected back at the end of the policy term and the policy has no cash value and cannot be borrowed against like whole life policies. There is also term insurance available where you receive your premiums back at the end of the term. Policies that return the premium at the end of the term are not available in all states.

Enjoy,

What is Life Insurance?

Tue, 09 Feb 2010 03:00:51 +0100

Life insurance is a contract between you and an insurance company and is a way to protect your family in case of your death, by providing funds to pay outstanding bills, taxes and income loss. Under a Term Life contract, the insurance company promises to pay your beneficiaries a sum of money in the event that you die within a period of time defined in the contract (such as 5, 10, 15, 20 or 30 years). Under a Permanent Life contract, a portion of the money you pay in premiums is invested in a fund that earns interest on a tax-deferred basis. Over time, your policy will accumulate a "cash value" that you can use. For instance, you can borrow against the value of your policy. Moreover, you can design a Permanent Life contract that will accumulate enough cash so as to be "paid up" by a certain age (e.g., "Paid Up Age 65").

Your need for life insurance can change over a lifetime. At any age, you should consider your individual circumstances and the standard of living you wish to maintain for your dependents. In most cases, you need life insurance only if someone depends on you for support. Your life insurance premium is based on the type of insurance you buy, the amount you buy and your chance of death while the policy is in effect.

Enjoy,
David Powers