Thursday, November 15, 2012

Life Insurance Coverage and It's Advantages

Life Insurance has become one of the necessities for a person who wishes to give his family a safe and secure life even after their soul rests in peace. The insurance policy is a commitment made by an insurance company to pay to its nominee a specific amount if the policy purchaser dies during the term of the policy. You make sure that your family is left with a lump sum of money for financial protection.

To satisfy the actual needs of individuals from various walks of life you'll find distinct life insurance plans.

Term Insurance is with extremely low premium rates. This plan comes with a limited period which means this policy can be used only for a nominal period and after the maturity times you lose eligibility for any profits or allowances. In case if an insurance holder dies during the coverage period, the nominee gets a specific lump sum amount. This policy can be taken for 5, 10, 15, 20 0r 30 years.

Endowment Insurance Plans are for best saving plans which provide a specific amount at the end of specific term or maybe with the demise of the insurance holder. Even after the end of the plans the client will get supplementary advantages such as bonuses and profits. Usually this plan is available for 10, 15 and 20 years or up to a certain age limit.

Pension Plans are for you if you desire to lead a happy and respectful retirement life, a decent pension plan is a must. Pension plans help to provide better retirement days by securing amount while you are earning. Here, the policyholder can pay any large total sum or premiums for certain years to acquire an annuity throughout old age.

"With Money-Back Plan" you can enjoy insurance coverage along with savings. "In this policy all through the term" you are benefited along with fair dividends along with the final lump sum return.

The eligibility to apply for the life insurance policy is to attend the age of maturity. They can make a valid contract with any of the insurance providing company and can protect those with whom they have an insurable interest. One can also take policies on the life of one's spouse or children, on certain terms and conditions. Policyholder's state of health, the supporter's income and other significant aspects are being checked by the insurer before any approval. For working women who earn an income can also apply for the policy with the above conditions. In other cases, there is an obstruction clause that only female up to the age of 30 years, and if she does not have an income attracting Income Tax can apply for life insurance policies.

While taking a policy, you should ensure that you go through all the terms and conditions carefully, and all questions in the application form are correctly filled. Any parody, non-disclosure or deception in any document may lead to risk and your policy could be considered null and void.

How to Get Life Insurance for Disabled People?

Why should a person get life insurance? There is an ongoing debate about getting one. Life insurance is important to invest in especially if the insured has dependents. Dependents are people who rely on his income; and in the event that the insured should pass, the dependents will be provided for. Life insurance allows beneficiaries to gain some financial security even if the insured is gone. It might be harder to acquire, but there is life insurance for disabled people.

Life insurance for disabled people might be harder to get, but many companies have now devised a plan that underwrites certain parts of the policy. This makes it easier for a disabled person to get insured. Getting this kind of insurance is a priority especially if a person has dependents like a spouse, children, or parents living with him. It is also good to get insured if an individual has high debts like a mortgage or has a large estate. One will also benefit from insurance if he has a business.

How do disabled people life insurance?

One of the major things that needs to be looked at is the definition of disability in the insurance policy. Policies vary in definition, but the main thing to look at is it an insurance for a person under Own Occupation or to Any Occupation. The former means that the person cannot continue to do his certain job, but the latter refers to those who are unable to accomplish any job. Those that own an Own Occupation usually pay more than those get Any Occupation.

An individual must fill out application forms. The company will be the one to decide whether they will provide coverage for the person or not. The factors that affect the policy are the policy's definition of disability. In addition, one of the other factors is the amount of time that a person should be disabled. These factors determine if he can receive the benefit. How much and how long the payment will be given are also deciding factors.

As stated earlier, the policy decides how much and how long a payment will continue. The individual also has a say in this however. For example, he may choose to pay a large sum of money within a short amount of time. He can also choose to pay a minimal amount that he could end up paying until his retirement years or more. Those that want to buy disability insurance will not be able to buy a plan that requires a higher payment than what his salary currently pays.

Insurance may offer benefits of its own. In the long run, it's about getting covered so that you can protect your family and dependents. To decide on which insurance plan best benefits you, think about your need, financial situation, medical condition, and the amount of years you would like to get covered.

Wednesday, October 31, 2012

Can Diabetics Get Life Insurance? With Type 1 or Type 2 Diabetes?

Life Insurance for Diabetics can be a challenge but is not impossible. This article will give you an overview of the process and questions that will be asked. I will also discuss the types of insurance that are available: Term, Whole life and even No Medical Exam plans!

Life insurance can be available for Type 1 and Type 2 diabetics.

The key to success is "Control".

This is what carriers are looking for. You must know your current A1C reading. Also, having a good overall history of your A1C readings is very helpful. Other important factors are your Height and Weight, age you were diagnosed, smoker or no smoker, medication taken etc.

What can you apply for?

Both Term and Whole Life insurance plans. It is always best to consider, for the best possible rates, a full medically underwritten plan. However, depending on your current health status, you may be able to apply through a carrier who will not require a medical exam.! Keep in mind that going this route will make the premiums more expensive.

Some carriers also offer simplified issue policies that simply require Yes and No answers to some questions. These are typically lower face amounts with a max of $25K in coverage. They are all generally graded life insurance plans.

All carriers will check the Medical Information Data Base ( MIB) along with a Pharmacy and DMV report.

What type of questions will they ask me?

Here is an overview:

Date of Diagnosis 
Height / Weight 
Weight one year ago 
Dr's name who supervises your Diabetes 
How often do you visit the Dr 
Date of last visit 
Do you follow a strict diet 
Insulin use ( They may be able to work with Type 1 Diabetics) 
Do you take oral tablets - will need names and dosage amounts 
Any treatment change in the past 2 years 
How often do you check you blood sugar level 
Last Blood Sugar Reading and the Date the reading was taken 
Usual Blood Sugar reading and the date of this reading 
Last A1C reading and the date it was taken 
Have you experienced a Diabetic Coma, acidosis so severe that it required hospitalization 
Ever had insulin shock 
Missed any work do to diabetes or associated conditions 
They will ask if you have any other problems: Elevated Blood pressure, Heart Trouble etc.

Saturday, October 13, 2012

Americans With Pre-Existing Health Conditions Don't Have Life Insurance

According to a new report from Genworth Financial, a large number of Americans with common, pre-existing conditions don't have life insurance. It is believed that the lack of insurance coverage is due to an inaccurate belief that because of their health issues insurance would be expensive, as well as their doubts over their insurability.

The study found that between 39% and 54% of Americans between the ages of 18 and 64 with common, self-reported pre-existing conditions hold no life insurance.

Some of the common and pre-existing health conditions that the respondents reported to be suffering from included, anxiety, asthma, depression, high cholesterol, hypertension, sleep apnea and weight issues.

In addition, over 118 million adults in the U.S. age 18 and above don't have life insurance coverage, which more than half the adult population (52%).

While many Americans are concerned that their health issues will drive up the cost of life insurance and make it unaffordable, this is not the case.

"We need to redefine the word 'healthy' in the context of insurance eligibility," says Janet Deskins, Genworth senior vice president for product development. "For adults with conditions such as anxiety, asthma, depression, high cholesterol and sleep apnea, life insurance can still be an affordable part of their overall financial plan, especially if they are actively taking steps to manage their condition."

The Genworth study also revealed that:

2012: Entire U.S. Adult Population 18+ (226 million)

52% are uninsured; approximately 118 Million
For those with Insurance, $152K is the average coverage amount
2011: Entire U.S. Adult Population 18+ (223 million)

51% are uninsured; approximately 114 million
For those with insurance, $155K is the average coverage amount
Within each of the populations identifying with the health conditions below*, a sizable portion is uninsured:

Anxiety: 15 million total, 8 million (53%) with no insurance
Asthma: 13 million total, 7 million (54%) with no insurance
Depression: 17 million total, 9 million (53%) with no insurance
High cholesterol: 26 million total, 10 million (39%) with no insurance
Hypertension: 25 million total, 10 million (40%) with no insurance
Overweight: 24 million total, 11 million (44%) with no insurance
Sleep apnea: 12 million total, 5 million (42%) with no insurance
Be sure you take steps in getting yourself covered to ensure you are protected and have a financial plan for your future. Take our insurance quiz below to find out how much you know.

Sunday, September 30, 2012

Step By Step Guide On How To Obtain Life Insurance

One of the primary motives why people acquire a insurance policy is the assurance that their dependents will get a prearranged sum of money in the event of their death. Getting a policy is crucial especially if you are the main source of income in your household or family. Apparently, the demise of the breadwinner signifies the loss of income for the family. As they say, life insurance is something that you need to obtain, but hopefully never have to use.

Guide on how to purchase a life insurance:

1. Determine the kind of policy that suits your needs

Term and whole life plan are the common types of policies that you will encounter as you begin shopping for a policy. Term life insurance expires for a definite period of time, such as 10 or 20 years. Conversely, whole life plan covers the policy holder until death. Your choice of policy should be hinge on your personal needs. You may prefer whole life plan or merely need a life plan for 20 to 30 years while rearing children.

2. Search out for free life insurance quotes

Internet has helped buyers get free online quotes without difficulty, but it is still advisable that you seek for the opinion of proficient insurance agents in your community. They can help you understand life plan even more, present you a wide range of options and provide you answer to your queries about certain policies that you cannot access from online quotes. Moreover, try to check with your human resources department at your job to recognize the life insurance options offered there.

3. Fill out the application form

Once you have made up your mind on which policy or insurer you want to choose, you can now start applying for a life plan. This necessitates a preliminary application that will also include few questions concerning your present and past health condition. Insurers make use of the information supplied on the form to help them in creating a policy.

4. Go through a medical exam

Most reputable insurers compel applicants to undergo a medical exam completed before they approve your application. Normally, this test should be paid by the insurance company, which utilizes it to confirm the information on your health history.

5. Understand the premium and coverage before buying it

After taking you medical exam, the insurer will design a policy for you that stipulate your coverage and indicates how much premium will be charged to you. You should get through the policy documents right before you sign it to verify if it suits your needs at a price you can afford.

6. Sign the policy and pay the premium

Lastly, sign the policy papers to obtain insurance coverage and pay the premium. Once you have completed these steps, you already have a life plan that will protect your dependents in case you die.

Thursday, September 13, 2012

Understand The Suicide Clause In A Life Insurance Policy

No matter how well you manage your activities throughout your professional adult life and ensure that you and your family observe proper health practices to maintain youth and vitality, you can never completely avoid the risks of unfortunate incidents that can change your circumstances in an instant. You may be relatively young and make it a point to observe a healthy diet and get enough exercise to stay in your peak physical condition, but this would not be enough to guarantee a long, problem-free life; illnesses can still develop and accidents can happen when you least expect it.

Aside from keeping yourself physically healthy and vibrant in the hopes of living as many years as you possibly can with your loved ones beside you, preparing for the future security of your family should also include the task of properly setting up your finances. The most common and secure way to accomplish this is to purchase life insurance. Whole life insurance and term life insurance are two of the more popular options for securing your family's finances after you have passed away; it's best to know the difference between the two before making your selection so you can sign up for a policy that best fits your specific financial goals and needs.

Whole life insurance is a policy that, as the name suggests, remains effective throughout the insured's whole life. Life insurance plans under this category have fixed premiums that are typically much higher than those required by term life insurance policies. Whole life insurance has a cash value-something that is not present in term life insurance. Having a cash value means that it can be used to accumulate tax-deferred savings. In addition, whole life policies can also be a tool that can help you preserve the wealth that you plan to leave behind for your family or specific beneficiaries.

Term life plan, on the other hand, is generally a more affordable policy compared to whole life. It can protect your finances for about 10 or 20 years (the typical period options for this plan). After the indicated period, you can choose to continue receiving financial coverage, but the premiums will be significantly increased. The money your family will receive from your term life plan can be used to continue paying general expenses after your death (such as a mortgage or your children's education). The funds can serve as your beneficiaries' financial solution to the years of potential income that you have lost with the event of your death.

Before taking out an insurance policy, it is recommended that you do sufficient research on the type of coverage that would provide your family with the best benefits. It is also important to gather enough information about a few of your preferred insurance providers before deciding on signing a contract with a single one. You can arrange for a meeting with an agent who can thoroughly explain their policies; you can also request a whole life insurance online quote so you can get a clearer picture of how much the coverage will cost. Making secure financial arrangements is the best way to safeguard your family's financial future no matter what events take place.

It is important to secure the future of your family by having a life insurance. This can help you secure your finances at whatever events that may happen. Choose the life insurance that will suit your funds and your plans, get it from a renowned company that will surely provide you the best coverage for your family.

Friday, August 31, 2012

Understand The Suicide Clause In A Life Insurance Policy

A policy holder who feels like he is down in the dumps would be tempted to take his own life only to leave his loved ones a considerable amount of money from a life insurance policy. Suicide of a family member is one of the most disheartening situations any family can encounter. This incident could also complicate the process of claiming the life insurance benefits. But the question whether an insurance company will grant the insurance benefits to the recipients will be hinge on clauses in the policy. There are instances when a policy's suicide clause holds back the redemption of the benefits. Sometimes the policy holder does not easily recognize this clause concerning suicide because some policies use languages like "intentional self-destruction" or "death by one's own hand" to describe the act.


A suicide clause is just one of the clauses or stipulations that you can find most life insurance policies, while the stipulations may also differ to some extent depending on the state or country. Some insurers include a free look provision that offers the policy owner a considerable period of time to review a policy after it was issued to for the buyer to decide whether he wants to purchase the policy. Incontestability clause prevents the policyholder from annulling the policy after it takes in effect for a definite period of time, except if the policyholder cease from paying the premium.


A suicide clause states that policy benefits will not be granted to policyholder's beneficiaries if he ends his own life within a specific term following the inception of the policy. In circumstances a policyholder passes away within that period covered by the suicide clause, the insurer usually investigate the claim strictly to guarantee that the demise of the policy holder was not a case of suicide.


A suicide clause guards an insurer against a circumstance where a policy holder commits suicide with the objective to give his recipients a considerable sum of money from life insurance claims. Considering the fact that contemporary life insurance policies can easily build up a face value of $100,000 or more, the clause can protect the insurer from disbursing such a significant amount of money.

Insurers are not the only one who benefit from suicide clause, even the desperate and emotionally distressed policy holders gains from this clause. For example, if a desperate policy holder learns that their beneficiaries might not get any benefits from their insurance plan if they commit suicide, the person may reconsider his attempt to commit suicide.

Time Frame

A suicide clause usually covers the first two years that the life plan has been in effect. In case the suicide transpired within that period, the insurer will just hand back to the policyholder's recipients any premiums that have been given to that point. If suicide happened subsequent to the clause period, the life insurance company cannot refuse coverage.

Monday, August 13, 2012

Buying Tips For Cheap Life Insurance

One of the highly recommended ways of protecting your family's financial future is by purchasing a life coverage policy. It's sad to say, however, that not all households are properly insured or even insured at all. With the concerning global economic dynamics, many institutions are coming up with ways to better educate families about life insurance policies and their many benefits including reliable financial provision for the future.

For some people, knowing the value of a life coverage plan is not the issue; their struggle mainly is zoned in on the cost of securing one. If a family has very limited financial resources, insurance payments can be a big burden; hence, the focus is always on the present necessities that need to be provided for. This is the working financial mindset that many families have that needs to be transformed because there are cheap life plans policies that even menial workers can apply for and accommodate within their budget.

In choosing the cheap life coverage providers have for you, financial experts have collected some tips so you can avoid being scammed and eventually end up with the best plan that you can easily accommodate into your budget.

1. Conducting thorough research about the life insurance companies that you're considering should be your first step. Gather feedback or testimonials to see if they are as good as they claim. Join a forum where honest sentiments abound or ask family and friends for recommendations.

2. Inquire about the term length because according to experts, "The right term length is key." Take note of the following components that will help you determine the right term length for you:

- Your age

- The age of your beneficiaries (your children and other dependents)

- Your financial responsibilities

- Your budget

Once all these have been properly determined, you'll have an easier time making the lifestyle changes necessary to be able to manage payments in the most efficient manner.

3. Be honest with all the information that you're required to provide; you have to remember that you want the best policy for you and that would be hard to determine if you fail to provide accurate information.

4. Be wary of "extras." This is often called "pressure play" from the insurance company; advisers may "strongly" recommend extra benefits to be included in your insurance program. You don't need to purchase extra "riders"; just know what you need and what you can afford. In addition, they can conduct their research online and find insurance companies that provide cheap life insurance quotes and make their policies more accessible by personalising their service so applicants can have the best, yet most cost-effective policy.

These cheap life insurance policies can provide you with affordable insurance quotes. The providers make sure that they give the very best personalized service so their clients can have an affordable yet effective policy. Acquire for a life insurance today to be able to financially secure yourself, your children and your beneficiaries.

Tuesday, July 31, 2012

Why Critical Illness Insurance Should Be Considered As a Key Piece in Your Financial Plan

It can't happen to me, or can it? The truth is from the age of 18 you have a about a 1 in 4 chance of being diagnosed with a critical illness prior to the age of 65. A critical illness is basically any disease or illness that will severely impact you in a negative way to the point that you may or may not die. Regardless, you will need to focus on recovery for an extended period of time and this can have a significant impact on your financial well being.

Most people don't want to consider these scenarios but they have major impacts on you, and your family's financial security. Imagine not being able to work for 2 years while you are undergoing cancer treatments. Who's going to pay for the mortgage, the car payment, daycare, groceries, drugs, etc? It's a scary scenario. Fortunately, we have free health care in this country (for the most part), but it's simply not enough.

Let's consider the following scenario:

Bill is married with two kids. He is 40 years old, has a mortgage, a car payment, child care payments, etc. His wife works too, but the family relies on dual incomes as most of us do. What happens if Bill is diagnosed with life threatening cancer. He basically has to drop everything and seek treatment. While he's seeking treatment his income will stop. The bills will go unpaid, and the family risks declaring bankruptcy after a certain amount of time. They may have to sell the house, the car, etc. This is not an added worry that anyone battling cancer would want to have hanging over their head.

What if Bill had funds to make sure everything was taken care of during his recovery? What if it was $100,000? Would that make life easier for him and his family?

It's very difficult for many of us to amass savings of $100,000 in liquid cash solely for an emergency situation that may or may not come. What should we do?

Critical Illness insurance is probably the most viable option for everyone. For a small amount of money you can transfer a large amount of risk to an insurance company. In the event of a diagnosis of a critical illness the insurance company will pay out a lump sum of money tax free to help with everything that cannot wait while you are seeking treatments. There's your piece of mind.

$100,000 was used for example purposes in this article, and it may or may not be the level of coverage that you would need. Discussing these needs with a qualified professional is always the best place to start.

Critical illness insurance is something that many people have never considered. Working with a professional like myself will help you to determine whether or not it's truly right for your situation.

Friday, July 13, 2012

The Term Insurance Trap

I think that term insurance has it's place in everyone's financial plan. I myself own $500,000 of term insurance on top of my permanent insurance policy. It's a great way to protect ourselves when we are young. It's an excellent way to create an immediate cash surplus in the event that we pass away too soon, and our families need the money to continue to live. But, I find that most people don't completely understand what term insurance is.

The best way to look at it is "rented insurance". It is a finite thing with a definitive start and a definitive ending. The two most popular policies sold in Canada are 10 year term and 20 year term. Essentially these are insurance policies that allow people to rent their insurance for a period (term) of 10 or 20 years. What happens during these terms?

Think of a staircase. The insurance starts out as very affordable, and at the end of the period it jumps significantly higher. And, it does for for a set amount of time until the life insurance company will not insure you any longer due to accumulated age. At this point they get all of your premiums paid for the life of the policy, and they don't even send a thank you letter. Most people are shocked to learn that this what they originally bought.

Here is an example of what it would cost to insure me, a 30 year old male, for $500,000 comparing both policies:


1-10 - $30.45 - $37.66 
11-20 - $97.95 - $37.66 
21-30 - $235.58 - $288.09 
31-40 - $594.76 - $288.09 
41-49 - $1745.23 - $1750.33 
50- Expired - Expired

I think the term insurance trap comes into play when people do not regularly review their insurance policies. Not understanding when the policy is renewing can be quite an expensive mistake for many people. Luckily, the majority of term products sold are guaranteed renewable which means they will reset to these higher rates unless canceled to prevent you from going with out insurance. They are also guaranteed convertible which means they can be converted to permanent insurance with out medical evidence at any time.

So, what is the right solution? For most people it's ideal to buy permanent insurance layered with term insurance when they are young. Our needs for life insurance evolve as we get older, but they almost never disappear. The only time some one wouldn't need life insurance is if their nest egg is so significant that it can cover all of their cash needs at death. Even at this point life insurance is a great tool to cover the tax liability that arises in this case.

If you can't afford permanent insurance, then definitely go for 100% term but make sure you understand the renewal dates. Also, review your situation often to see when the opportunities to buy permanent insurance come up. Don't get trapped by higher rates.

*Note: The rates used in this article are for illustration purposes only. They can and will be different based on a person's individual circumstances.

Life insurance is the greatest gift you can give your loved ones. It's also a great gift to give yourself for your own personal wealth and satisfaction. Many people don't know where to start which is where I come in.