The Life Insurance Review
Where Life Insurance is Talked About
National Life Insurance
Dec 30th
Most individuals are aware of responsibilities towards their family and loved ones. One of the primary reasons therefore for buying the Life Insurance policy is that individuals are keen in providing the much needed financial protection to their family and loved ones in the event of their sudden death. The National Association of Insurance Commissioner (NAIC) is the governing body for all providers of National Life Insurance policies in the United States. It is strongly recommended by NAIC that potential policy buyers should review certain vital aspect before making a well informed choice about the National Insurance plan.
The NAIC provides essential tips to potential buyers of National Insurance policy during the annual Life Insurance Awareness program conducted in the month of September each year. This article outlines important review points to educate customers about insurance and to help individuals make a well informed choice about the right National Insurance policy plan.
The first most important thing that policy buyers are suggested to do is to review the amount of life insurance cover to determine if the sum insured in the past is still appropriate for their current financial situation.
The NAIC offers a handy checklist with useful tips to all National Life Insurance holders in assessing if their present plan provides them with maximum benefits.
The basic guidelines provided by NAIC include certain tips for proper evaluation of the National Insurance policy. Firstly, provision of financial support to the policy holder’s spouse in the event of the sudden death of the policy holder. Secondly, provision of funds to maintain the property or estate developed during the lifetime of the policy holder and appropriate allocation of such funds to beneficiaries of the deceased policy holder. Thirdly, funds provision for major financial responsibilities such as mortgage debt or car loan.
The NAIC also recommends that policy buyer’s should consider long-terms goals such as retirement or children’s higher education prior to deciding the amount of insurance cover. For example, the Term Life Insurance is short period plan which offers limited reimbursement to beneficiaries as compared to Whole Life Insurance plans which also provide cash value.
Finally, before purchasing any type of National Insurance policy, financial experts recommend that policy buyers should ensure that the insurance agent or company is licensed to sell insurance in their state. Policy buyers can confirm this from the State Insurance department using the toll free number which can be obtained through search engines on the net using key terms.
These tips can help potential buyers of National Insurance policy to make a well informed choice about the insurance plan which will earn maximum benefits not only for the policy holder but also the subsequent beneficiaries.
Florida Life Insurance Guide – How to Find the Best Florida Life Insurance Policy
Nov 30th
This guide will help you to learn how to shop for life insurance in Florida. Shopping around for a policy is important because it allows you to see what is available to you and what rates you are eligible to receive.
Here are some tips that will help you to keep organized in your search for the best Florida life insurance policy:
- Keep a record of every quote request you make, including the company name and type of insurance. You should make sure that you start by requesting quotes on the same type of policy. If you run across a company that does not offer the same policy then you will need to note what their policy entails.
- Once you start getting quotes back from the companies you will need to read them carefully. You want to note if they say there will be further underwriting involved in order to give you an accurate price. This means that the quote is just an average yet individualized for your needs.
- Make sure that you look at all the terms and conditions. You want to compare only those quotes from plans that are the same. Any difference could be the reason for the price difference. You can always contact the company and ask them to alter the terms so you have quotes on the exact same type of policy.
Once you have quotes on policies that are the same you can simply check the prices and see which one is going to be your best deal.
During the process of shopping around for Florida life insurance quotes you may run across different types of polices. This is helpful and you should read them carefully. You may actually find that you can get more for your money.
The whole idea of shopping around is to get the best prices and to get the most for your money. Try to find a policy that can offer you the best price and give you coverage that goes above and beyond your expectations. In the end you may not actually choose the policy with the lowest rates, but you may choose the policy with the best combination of rates and coverage options that suit your particular situation.
The Basics of Buying Life Insurance
Nov 25th
Getting Started
As you begin to prepare to purchase a life insurance policy, it is essential to evaluate your ongoing and potential future financial necessities and review the available policies accordingly. First and foremost, make sure you are fully informed on the basics of life insurance.
Why do I need life insurance?
If another individual financially depends on you, the likelihood that you need life insurance is very high. Life insurance provides cash to your family members in the event of your death. The funds your beneficiary will receive (the death benefit) can obviously be a valuable financial resource. It can help to cover everyday living expenses, pay the mortgage, loans, or tuition, and will help to ensure that your family is not burdened with the heavy load of debt. Obtaining a life insurance policy could means your spouse or dependent children may not be forced to sell assets to pay bills. Any money that beneficiaries receive does not carry a federal income tax either.
How much life insurance do I need?
Everyone’s life insurance needs depends on their personal financial situation. It is highly recommended to contact a life insurance agent or financial advisor to aid in determining what the appropriate level of protection is you and your family based on your income and financial responsibilities, both present and future. Online calculators can prove to be helpful, however consulting an insurance professional to review particular financial needs will give you a more accurate description of your life insurance options and needs.
Typically, determining how much life insurance you need requires deducting the total income that would be subtracted from the family’s total income and financial needs in the event of your death. It is crucial to keep ongoing expenses in mind, such as day care, tuition, mortgage, and/or retirement as well as immediate expenses. Immediate expenses could include funeral services or funds needed for relocation.
Some experts in the field suggest that a life insurance policy should pay a benefit that equals seven to ten times your yearly income. However, your personal need may be higher or lower depending on your particular situation.
How to Purchase: Choosing a Company or Agent
Life insurance can be purchased at a multitude of locations: insurance agencies, brokerage firms, banks, or directly from a life insurance company by mail, phone, or the Internet. Generally insurance companies have webs sites detailing their various products and services. These sites will most likely be able to help direct you to an agent in your area.
How do I choose a company?
Begin by contacting your state insurance department for a full listing of insurance companies licensed in your state. It is also a good idea to ask friends and relatives for some recommendations based on their own experiences. Make sure to consult an insurance agent or broker and do some research on your own, either on the Internet or at a public library.
It is very important to verify an insurance company’s financial strength. Although life insurer companies are generally in excellent financial standing since they are required by law to keep reserve funds to guarantee that they can meet financial obligations to their policyholders, it is still a good idea to do everything you can to ensure this.
Checking a company’s financial condition is relatively simply. Assess their rating by contacting a rating agency. This information is available online or in business publications at the local public library.
How do I choose an agent?
Collect a selection of names of several agents through research and/or personal recommendations. You can find out if a particular agent is licensed in your state by consulting your state’s insurance department. Life insurance agents who offer variable products have to be registered with the (FINRA) and possess an additional state license as well.
Do not hesitate to express concerns or to ask what company/companies the agent currently or previously represents or to see/check professional accreditations.
Term Life Insurance – Say Goodbye to Return of Premium Term Life Insurance
Jun 22nd
There exists a great debate among so-called financial experts with respect to what type of life insurance policy is best. One one hand, you have the camp that believes in the value of a properly funded “permanent” insurance contract (i.e. whole life or universal life). The other camp feels that you should purchase term insurance and invest the difference into some financial product. Regardless of which camp you fall in to, the insurance industry created a Term Insurance product which included a “rider” that allowed you to receive all of your premiums paid into a term life insurance product back at the end of that policies term.
Let’s assume that you go to your agent and needed to purchase life insurance. After you and the agent completed an Insurance Review (hopefully), you determined that you needed an additional $200,000 worth of protection. After looking at whole life & universal life, you determined those two options to be out of your budget. You agent then showed you a Term product which was much cheaper. However, you did not like the idea of paying for something, which if you did not die during the policy’s term would just vanish. Your agent then showed you that you could amend that term product, for an additional premium, with a rider which would return every premium dollar you had paid into the policy should you not die during the policy’s term. That is a win/win for everyone!
Well, if you like the idea of that “win/win” scenario, you better act fast. The rules that regulate life insurance contracts are changing January 1st, 2010. Actuarial Guideline 45 applies to individual life insurance products that offer endowment benefits prior to the expiration date of the insurance coverage (most ROP products offer the clients a partial return of their premiums paid should the insured cancel the contract before the end of the Term). The new rules make these Return of Premium products too costly for Insurance Carriers to profitably sell.
While many companies will continue to sell these Return of Premium Policies, they will have ot increase the cost of the actual rider. This increase will, more than likely, cause many individuals to stay away from these products as the “cost / benefit” analysis will be drastically reduced. Further, many carriers are completely stopping the sell of their Return of Premium Policies. Unfortunately, the real losers in this increased regulation (from the government) of the life insurance industry is the consumer.