Term Life Insurance Articles:

Term life is a very popular from of life insurance. These articles were written for information purposes only. Each article has a different focus and provides an unique look at this life insurance product. Whether you are looking for information about renewable term or comparing available term to your current policy, information can be found at this research center. No one needs to buy insurance on their own. Information is king, so use it wisely. Please consult your financial advisor, your lawyer, and tax accountant before purchasing any life insurance policy.

Disclaimer: The information in this article should be construed to be insurance advice. Always consult a financial or insurance professional or tax accountant to determine what coverage is right for you.

African-Americans and Life Insurance

Have African-Americans been neglected, in understanding the need for life insurance? What has shaped African-Americans viewpoints towards life insurance, and what can be done to change some of these misconceptions?

The days of the debit insurance agent chasing your grandmother to collect the 10 cent premium have long gone. Yet in many ways, this interaction still has a chilling affect on many in the African-American community. At one time, life insurance in the African-American community became known as "burial insurance." African-Americans were allowed only to buy a small policy to bury themselves and this is how it was marketed to them. Yet many times, their Caucasian counterparts, who had the same type of insurance policy, paid less and were offered more coverage. However today underwriters of life insurance are not allowed to know the race of individuals applying for insurance.

Present day in the African-American community, some still have the "burial insurance" mentality towards life insurance. Yet many African-Americans have been upgraded, and have enough insurance to pay off their homes and to bury them. Through careful marketing in the late sixties and early seventies, African-Americans were steered to buying additional life insurance when purchasing a home. It seems creditors wanted to make sure as African-Americans moved into homes, that their investment in the mortgage would be paid off in the event of a premature death. As some African-Americans found new avenues of success in their careers, thanks in part to the civil rights moment, many of these individuals found themselves approached by insurance agents who began to enlighten them on life insurance. The "burial" and "mortgage protection" attitudes life insurance were replaced. Life insurance became the following:

1. To pay off all debt

2. Provide income to the spouse and children left behind

3. To set up a trust to leave money to their church or organization

4. Pay for children higher education including college, in the event of a death

5. A way to keep key employees from leaving current employment

6. A vehicle to buy out children not involved in the family business

Others African-Americans have fallen into I have "life insurance at work trap." At work you have $30,000 of life insurance or two or maybe three times your salary if you are lucky. Let us say you make it to retirement age with your company, and make $60,000 a year at the retirement. Many times you are allowed to convert your group life insurance at attained age, into a whole life or universal life insurance policy. You will not be paying $5 a month for your group insurance at retirement. So if you are a sixty-five year old male, and you want to keep $100,000 worth of coverage by converting your group insurance, you might see a premium of $469 a month. You might think it is not fair, but this is reality. Also sometimes you are allowed to keep one times your salary of insurance at retirement, then it cuts in half by age 68 and levels off at $10,000 at age 70. While others, still have no life insurance from their company's group insurance at retirement, because there is no conversion privilege.

If African-Americans have been buying life insurance for a death benefit or "mortgage protection," how are they being neglected? Unfortunately, some African-Americans' life insurance policies are so similar, that you would think they were lined up in the room to buy it. Purchasing this product should be based on your particular goals, keeping your family obligations in mind. People in the upper echelon of the African-American community, usually are aware of the uses of life insurance, and use them to better the lives of their families and businesses. There however seems to be a lack of financial planning and insurance knowledge transfer, from the elite in the Africans-American communities, to those who have less or not considered to be part of the professional class. Also, unfortunately some insurance agents try to sell products to American-Americans, instead of educating them, so that they can educate others about these subjects.

It is all about education in the African-American community, especially when it comes to life insurance. For many African-Americans, they turn to their ministers for guidance about insurance and financial planning. Hopefully their minister has gotten the message, and are willing to share their knowledge with all of their members. Otherwise we will continue to have a community, where children are orphaned because of the lack of proper life insurance or the spouse has lost the house, because they could not afford the mortgage. You have to be able to look past this year, $30,000 may take care of your daughter for a couple of years but Social Security will pick not pay the cost of raising a child. Some in the African-American community will spend $500 on a car note, but do not you have enough life insurance to feed, clothe, or send your children to college, as well as provide income for their spouse if they die. While some echo, "I do not want to leave my family rich," it is better to leave your family rich than poor.

A Life without Life Insurance

For whatever reason, buying life insurance has been reduced to an afterthought. Many of us are uncomfortable with facing our own mortality. Yet others do not see the value of life insurance because they are single, or will not live to receive the tangible benefit of having this coverage, unlike health insurance. Maybe you have been turned down for coverage because of a health condition, but most still can qualify for a graded death benefit policy.

Many people have life insurance at work. This usually comes in the form of term insurance. Term is insurance for a specific amount of time, and once it expires due to retirement, dismissal, or resignation, there is no benefit ( Some employers allow a reduced amount of insurance at retirement, usually a declining scale that often levels off at age 70, e.g.. 50,000 at age 65 and $25,000 at age 70). If you are dismissed from your job; you are without coverage unless you convert your group insurance into a whole or maybe universal life policy.

Some people have been conditioned that life insurance is for death benefit only. So buying life insurance, sometimes is not a priority until their mid-fifties or even late sixties when they retire. The problem is none of us know when we are going to die. You can literally cause your family to sell the family home, cause your spouse to work an extra ten years, and the brainy child may have to go the state university instead of your Ivy League alma mater (Some state colleges and universities are excellent. Go Buckeyes). If for nothing else, enough life insurance should be purchased so that loved ones are not left with your unpaid bills.

Life Insurance Uses:

• Death Benefit
• Provide income to pay off the mortgage in the event of death
• Replace lost income that your spouse and children would otherwise miss
• Make sure that future college tuition can be paid
• An effect way to pay off children and spouse who do not participate in family business
• To pay possible Estate Taxes
• To provide liquidity when many assets are tied into Real Estate

Life

Life insurance provides a monetary benefit to a descedent's family or other designated beneficiary, and may specifically provide for income to an insured person's family, burial, funeral and other final expenses. Life insurance policies often allow the option of having the proceeds paid to the beneficiary either in a lump sum cash payment or an annuity.

Annuities provide a stream of payments and are generally classified as insurance because they are issued by insurance companies and regulated as insurance and require the same kinds of actuarial and investment management expertise that life insurance requires. Annuities and pensions that pay a benefit for life are sometimes regarded as insurance against the possibility that a retiree will outlive his or her financial resources. In that sense, they are the complement of life insurance and, from an underwriting perspective, are the mirror image of life insurance.

Certain life insurance contracts accumulate cash values, which may be taken by the insured if the policy is surrendered or which may be borrowed against. Some policies, such as annuities and endowment policies, are financial instruments to accumulate or liquidate wealth when it is needed.

In many countries, such as the U.S. and the UK, the tax law provides that the interest on this cash value is not taxable under certain circumstances. This leads to widespread use of life insurance as a tax-efficient method of saving as well as protection in the event of early death.

In U.S., the tax on interest income on life insurance policies and annuities is generally deferred. However, in some cases the benefit derived from tax deferral may be offset by a low return. This depends upon the insuring company, the type of policy and other variables (mortality, market return, etc.). Moreover, other income tax saving vehicles (e.g., IRAs, 401(k) plans, Roth IRAs) may be better alternatives for value accumulation. A combination of low-cost term life insurance and a higher-return tax-efficient retirement account may achieve better investment return.

Term Life Insurance or Whole?

Term life insurance, also called temporary insurance, covers a person against death for a limited time, the term. For example, the term might be until children are grown, or until college is paid for, or until retirement. You pay for the policy period and at the end of the term, the contract or policy expires. If no claims are made against the policy during the term, you don't receive any benefits after the policy expires, just like auto or homeowners insurance.

Whole life insurance, also called permanent insurance, is permanent and does not expire (assuming you continue to pay the premiums). It provides coverage similar to term life insurance, but it also provides an investment vehicle. A portion of the premium goes for life insurance, while the rest goes into an investment account. This account can be either an interest bearing account or a variable (stocks and bonds) investment account.

Which is better (our opinion)? Young families with large financial obligations are usually better off with term life insurance policies. The substantially lower premiums enable them to purchase sufficient coverage to protect against loss of income. Any discretionary investment funds can be placed in other vehicles (mutual funds, money market accounts, etc.) that are likely to generate returns similar to or better than life insurance policies. Whole life insurance is often purchased by people for tax and estate planning purposes. Recently, some advisors have started recommending life insurance as an investment. You should consult with your financial advisor.

Is It Possible To Buy Affordable Life Insurance After A Heart Attack?

So you've just recovered from a heart attack and you hope to find affordable life insurance. The application for life insurance has a question regarding if you have been treated for heart disease or a heart attack. How do you answer? Do you lie and say no? Or do you say yes, and chance getting denied or stuck paying a higher life insurance premium? Well if you decided to answer honestly and mark yes, you may be in luck.

Depending on how severe your heart attack was, and how severe your heart disease is, you may be able to get affordable life insurance that won't cost an arm and a leg. Also, by not lying, you don't have to worry that you will be caught and have your life insurance premium automatically increased and be forced to pay retroactive fees.

"Though heart disease may signal a red flag for life insurance companies, it doesn't necessarily mean a customer will have to pay more," says Dave Roush, CEO of Insurance.com. "By taking the proper steps to treat heart disease, a customer can quite possibly qualify for a standard life insurance rate," says Roush. "With the advances in medical technology and testing, it is becoming easier and easier to give predictable life expectancy rates for those who are suffering with heart disease."

When to strike
It may seem like a good idea to apply for life insurance the moment you realize you really need it, but financially, it isn't always the smartest move.

Life insurance companies don't look favorably on applications that are submitted right after a heart attack, and the premium for a policy issued after a condition like that, will likely be high. The best thing you can do, for your pocketbook, as well as for yourself, is to wait to apply for life insurance. By waiting a year or two, you are giving your body ample time to heal as well as giving yourself time to adjust to any medications or new-lifestyle changes you may be instructed to do by your doctor. By waiting, you are also showing the life insurance company that your condition has been stabilized and you took the appropriate steps to make your overall health better.

Document your progress
Be sure to document any and all progress that you've made. By having this detailed in your medical files, life insurance providers may be able to issue you a lower premium. Also, when applying for life insurance, if an underwriter sees that you are forthcoming about your heart disease and you have listed all the things you've done to keep it under control, you will be more likely to receive an affordable life insurance plan. By telling a life insurance company exactly what happened and what steps you've taken to correct or better yourself, you are showing them you have nothing to hide, and this can ultimately save you money.

What Do You Know About Life Insurance Settlements?

You may have heard of viatical settlements, where people who are terminally ill can sell their life insurance policy to an investor for a portion of the policy's face value, but did you know that even if you're not terminally ill, you can still sell your policy?

Life insurance settlements or "senior settlements" are contracts allowing a policyholder who is not terminally ill to sell his or her own policy. By selling your life insurance policy, you will not get back the amount that your death benefits would have been worth, but an investor will pay you a portion of the policy's face value. The way it works is that the investor or company that buys your policy will continue to make payments on your life insurance policy, and once you have passed, the investor or company will receive the full amount of your death benefits.

Is this something new?
Actually, no. Life insurance settlements have been around for a while, but many policyholders and consumers don't even know this option exists. That's why the Life Settlement Coalition was formed. The Life Settlement Coalition is meant to educate consumers and insurance companies about life settlements. The Coalition is made up of experienced brokers and life settlement providers whose main goal is to bring to the table the option of a life insurance settlement to life insurance policyholders.

Is it the same as surrendering a policy?
No. When you surrender your life insurance policy for the cash value, all you are doing is selling your policy back to the insurance company. Whether you're interested in either surrendering your policy or getting a life settlement contract, it is important to ask your broker or insurance agent about both options first. You may get a substantially higher amount of money back from a life settlement contract, compared to surrendering your policy. Life insurance experts say that up to 25 percent of life settlement polices cash out higher than the surrender value.

Will Mental Illness Affect Your Life Insurance Cost?

If you're considering getting life insurance, but you're worried that a history of mental illness will hinder your search and you'll be stuck paying high premiums, worry no more. Insurance companies are generally most concerned if your condition will affect your life expectancy and make you a high death risk. If you took Xanax for anxiety or anti-depressants after a tragedy, your life insurance company probably won't view you as a significant risk.

Times of reactive depression-depression that is triggered by a tragedy-won't affect the cost of your life insurance if you can show your insurance agency that you took the steps to get better. By showing them your medical records and being honest about your condition, you'll be more likely to get better rates and premiums. "If you hint at a problem, but don't say whether you are taking care of it or have been treated for it, the life insurance companies won't know what to think," says David Roush, CEO of Insurance.com. "The less they know about your situation, the higher the risk they will see you as," says Roush.

Even when it comes to more serious cases of clinical depression, like manic depression or bi-polar disorder, life insurance companies won't necessarily give you a higher rate. If you are taking care of the problem, and they see that you are in control of the situation, you won't have as hard a time finding affordable life insurance, as you would if you left your disease untreated.

When to apply
If you are diagnosed with a mental illness and are getting treatment, it would be wise to wait a couple months before applying for life insurance. In doing so, you are giving your body adequate time to adjust to your medication and treatment.

What your insurance agent will want to know
Life insurance companies will want to know when you were diagnosed, who your doctor is, what kind of treatment you received and how you are progressing with your treatments.

Suicide red flag
If your medical history shows one or more suicide attempts, a life insurance company will want to see proof that you are receiving full treatment before they will consider issuing you a policy. With a suicidal history, most companies will wait one to two years before issuing you a life insurance policy. It will probably be more expensive the first few years, and may include a "suicide clause" that denies death benefits to be paid out if the insured dies from suicide within the first two years.

If an applicant is hospitalized for suicidal tendencies or for attempting suicide, they are considered a higher risk than a person who has suicidal tendencies, but is able to function in society, goes to work and has been taking medication to treat the illness. Again, by showing your life insurance company that you are taking care of yourself and your condition, they will be more open to consider issuing you a lower-rated premium.

Is Mutual Fund Insurance For You?

When deciding whether or not to purchase insurance for your mutual funds, you should be sure you understand exactly what you're getting. For most policies, the payout will only occur after you die and only if your mutual fund has lost money since the time you purchased insurance coverage. Also, your beneficiaries will only get the difference between the market value of your investment and the amount that was guaranteed by your life insurance policy.

Example
Say you invest $25,000 and your premium ranges from .01 percent to .05 percent of your investment. The company you invested with guarantees that your mutual funds, plus an annual gain of between four and five percent-with a cap-out of up to 200 percent-will be there for your beneficiaries at the time of your death. If in the event the market goes down, having insurance will guarantee that your initial $25,000 investment will increase between four and five percent. When paid out, your heirs will only get the difference of the market value and the amount that was guaranteed-so in the case of your $25,000 investment, it is highly unlikely your beneficiary will get back the full amount.

Most consumers aren't that interested in buying mutual fund insurance because the stock market has sustained an annualized 11 percent return since the Depression ended. It is cheaper than most insurance; however, there is no real need for it. "It's a good safety net for older investors who want to be "risky" and try their hand at the market, but still want to be protected just in case things don't pan out like they had hoped," notes David Roush, CEO of Insurance.com.

Products and cost
Prudential Insurance Co.'s PruTector, Sun America's Asset Protection Plan and American Skandia's AS Goodwill coverage are all basic group term life insurance policies that you can buy in conjunction with a mutual fund from one of the companies. Depending on your age, the cost of mutual fund protection does vary, as do the fees added by certain companies.

A Charitable Donation-Your Life Insurance Policy

If you're a big-hearted person who is always concerned about the welfare of others, you may be considering donating your life insurance to a charitable organization. If you do decide to go through with it, not only will you be helping others, but you will be helping to get yourself a tax-deduction as well.

If using your life insurance policy to make a charitable donation sounds like something you want to do, there are a few things you need to consider before signing your life insurance policy over:

. Be sure the charity you are considering is a non-profit organization that has a 501(c) (3) status
.Talk with someone there to be sure they will accept your life insurance donation (term life policies are the least favorable to charities, because they offer the most headaches and the least amount back when the term expires

Tax deduction
If you are donating to get a tax deduction, be sure to name the charity as both the beneficiary and the owner of the policy. If you name it as one or the other, you will not be able to deduct the donation proceeds from your taxes. The rule of thumb is if you donate a term life insurance policy, you can deduct the premium from your taxes, where as if you donate a whole life insurance policy, you can deduct the cost of the premiums and the cash value from your taxes.

Show of hands: Who wants your policy
Many charities appreciate the thought of a life insurance donation, but they prefer to have use of the donation immediately. Smaller and local charities don't have the resources that larger ones have and will more than likely welcome any contributions they can get, even if they have to wait for the payout. When it comes to larger organizations and universities, a team of money managers is on-hand to decide how to make the most off of your life insurance policy. By investing the money you spend on the policy, charities and organizations may be able to earn far more off the initial donation you give them.

An example of this is when a university accepts a whole life insurance donation ($400,000 death benefit with a $30,000 cash value), but then immediately cancels the policy and collects off it. Instead of letting time go on and allowing the death benefits to grow, university money managers may decide to invest the $30,000 in the stock market to get a quicker return from the donation.

How Much Coverage Does Guaranteed Issue Life Insurance Actually Guarantee You?


You see the fliers. You hear the radio spots. You see the commercials. The message is always the same; "Get approved for guaranteed issue life insurance with NO medical exams and NO medical questions!" But how much coverage does guaranteed issue life insurance actually guarantee you? Insurance.com tries to breakdown the idea of guaranteed issue life insurance, to help give you a better understanding of what it is, and what other alternative options are available.
Guaranteed issue life insurance is an insurance policy that will insure whoever applies for it, no questions asked. Sounds too good to be true, right? Well, it kind of is.
Typically, guaranteed issue life insurance is marketed towards senior citizens or those with medical problems. The catch for these kinds of policies is that you generally can't find coverage for over $20,000. Also, the cost of the premium tends to be higher because no medical exam or medical information is required.
When it's all said and done, it's possible that you will wind up paying more in premiums than your beneficiaries will see in death benefits. Definitely not a plus for those paying into the policy! And that is why this issue has drawn attention from State Insurance Regulators and the National Association of Insurance Commissioners (NAIC). To help fight this scam life insurance policy, a working group has been established to see what kinds of action should be taken against the companies selling these policies and what can be done to protect others from getting taken advantage of.
A disclosure is in the works, warning consumers of the possibility of paying more in premiums than the actual face value of the policy is worth. However, the NAIC needs to be cautious of how they step in, because saying too much could be a form of rate regulation, which is something that they are not prepared to do.
How the insurance company protects themselvesA graded benefits clause has been added to guaranteed issue life insurance policies to protect the insurance company from fraud. Graded benefits states that if the policyholder dies within two to three years of buying a guaranteed issue life insurance policy, a refund of the policy's premiums, plus interest, will be paid instead of paying out death benefits. This in effect prevents people on their deathbeds from signing up for a policy, just to gain some extra funds. A company may pay out full death benefits in the event of an accidental death - but remember, the definition of what is accidental is very limited, and this feature is only offered through certain companies.
Insurance companies base your rates on your age and medical information, so if you can buy life insurance after going through a medical exam and answering medical questions, it would be more cost effective to purchase through those means, rather than with guaranteed issue. Not to mention that you will probably pay less and have better coverage.

Estate Tax Reform: Why Millionaire's Aren't Batting An Eye


Since 2002, the estate tax rate has been gradually decreasing, while exemptions levels have been steadily increasing. These elements combined have been paving the way for a complete repeal of the estate tax in 2010. Any inheritance that an heir chooses to sell will then be subject to capital gain taxes. But in 2011, there is a sunset revision, which will put the estate tax back into effect.
Opinions on what will happen vary, some millionaires believe the repeal of the estate tax will leave them paying less, some believe they will end up paying more, while others think the repeal will have no effect on their estate taxes at all. Many "high net worth individuals," meaning those who have more than $1 million in assets not including a home, aren't batting an eye to the estate tax reform. Studies show that many are keeping with their current plans on inheritance, and waiting to see what happens when the reform goes into effect. Also, many are planning to:

.Consult with a financial advisor on estate planning
.Increase or maintain charitable donations
.Leave trust fund where they are
.Leave life insurance policies where they are
.Increase or maintain plans for tax advantaged giving

Not many high net worth individuals plan to terminate trusts, decrease their donations to charities or children, or drop their life insurance plan completely.

Confused About Buying Life Insurance? Here's A Few Questions And Answers To Clear Up Some Confusion

When it comes time to consider purchasing life insurance, many people get overwhelmed by questions or concerns they have. So to ease the minds of consumers who are ready to buy life insurance, Insurance.com has compiled a list of questions and answers to help make the process as painless as possible.

1. What's the best age to purchase life insurance?
   As a rule of thumb, the younger you are, the lower your life insurance premiums will be. That's because your risk of dying is lower than if you were in your 50's or 60's. It's also a smart idea to buy life insurance when you're younger because you are able to lock in to a lower interest rate.



2. Am I required to take a medical exam?
   For most life insurance policies, yes, you are required to take a medical exam at the time of application. This includes Supplemental Group Life (where you already have group life insurance) and also if you are requesting an amount of coverage that exceeds the standard level of coverage. However, if you are just purchasing a policy from a group health insurance or group life insurance plan, then you are not required to take a medical exam.



3. What happens with the results of my medical exam?
   The status of your health determines how you are categorized and what kind of life insurance rates you will be given by your insurance company. Your height, weight, health and whether or not you use nicotine are all taken into account. If you're curious why you were put into a certain classification, be sure to ask your insurance agent. He or she will give you an overview of what factors determined your insurance classification.


Classification status may be changed depending on a person's condition(s). An example of this is if the results of your first medical exam came back showing that you are 60 pounds overweight, a smoker and have an untreated heart condition. Your life insurance company will probably look down on your situation, ultimately putting you into a high-risk category where you will pay more for your premium. But if you take care of yourself, lose weight, kick the habit and get on a health regimen to take care of and control your heart condition, you can go back to your insurance agent in a couple years and request a revision in medical underwriting on your life insurance policy.


4. Is more than one policy too much?
   Not at all! If you have a permanent life insurance policy, then decide you want to take care of a short-term need, you are more than able to purchase and add on a supplemental term life policy. It should be noted if you purchase more life insurance than you need (or more than your expenses show you need), a medical exam or proof that you do not have an outstanding medical condition may be required by your life insurance agency.



5. Will having more than one policy cancel the other one out?
   Nope. If you have a credit life insurance policy and a whole life insurance policy, and you have paid all the necessary premiums, both policies will pay out according to the initial terms of the policy. So your credit life policy will pay off your credit card balance and your full death benefit will be paid out on your whole life policy.



6. What happens in the event of delinquent payments?
   Most policies give you a grace period of between 30 to 31 days to make a payment on your premium. Depending on your situation or reason for not paying, if you pay within that time frame, you will not be charged added interest; if you don't pay within that set-time frame; your policy will lapse.


If you have a permanent life insurance policy, and you are late on your payments, money from your cash value may be drawn to pay the premium; however, this will lower the amount of your cash value. If you are unable to pay due to disability, you may choose to enact or add a "waiver of premium" provision or rider to your policy. In doing so, you won't be required to pay premiums for the duration of your policy.


7. What do I do if my policy lapses?
   Depending on what type of life insurance policy you have, your policy will either remain open, or end. By having a permanent life insurance policy, you are able to use money you saved up in your cash value to pay the premiums with. That advantage of this is that your policy won't be cancelled, but your cash value does deplete. If you have a term life insurance policy, and don't pay within the grace period, when your policy lapses, your coverage ends.



8. Is there a limit to the number of beneficiaries I name?
   As long as the people you choose to name in your life insurance policy have "insurable interest," you can name them as beneficiaries. Typically, a person just chooses his or her spouse, but it is possible to name more than one person.



9. Can I buy a life insurance policy on someone else?
   As stated above, if you have insurable interest in that person, generally meaning they are a close relative or friend; it is possible to buy a life insurance policy on them. The main stipulation when buying a policy on someone else is that they must know about it. You cannot take out a policy without their knowledge and prior consent.

When it comes to buying life insurance, if you are in doubt or confused, be sure to talk to your life insurance agent. Whether you have one question or 100, it's better to fully understand exactly what you are getting into now, rather than paying for it later. If you are interested in getting a life insurance quote, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class life insurance providers - helping you find the best life insurance coverage to take care of you, and your family.

Better Yourself, Better Your Life Insurance Rates

If you're overweight, have high blood pressure, high cholesterol or a heart condition, you know what the best steps are to take in order to improve your condition. You should be eating healthier, getting plenty of exercise, taking medications as directed and seeing a doctor regularly to monitor your condition. But did you know that by bettering your overall health, you could also be improving your life insurance rates as well?

"When it comes to illnesses, the higher risk you are, the higher your life insurance payments will be," says David Roush, CEO of Insurance.com. "If you pay a higher life insurance rate due to a medical condition, you can possibly lower your premium by trying to improve your overall health. Many insurance companies are very receptive to customers trying to make changes in their life to improve their health, and often this type of behavior is rewarded with a price reduction."

Insurance companies focus on your health when it comes to life insurance. The less risk you represent, the better your rates are going to be. If you initially purchased a life insurance policy when your health wasn't so good, but you took the steps to get yourself up to and above par, you can then request a premium reduction. Just ask your insurance agent what specific requirements there are, and see if you've met them. There's no limit to how many times you can ask your insurance company to review your medical records to see if you meet the requirements for a premium reduction

Many times, insurance companies require proof from a doctor that the improvements that you've made have been maintained for a certain amount of time. More severe health problems, such as cancer or heart disease, warrant a longer improved health period requirement. If you have a condition that will never improve, such as heart-wall damage, you will more than likely never see a rate reduction.

Another step some life insurance companies take is to require you to undergo medical tests ordered by the insurance company. The bright side of the test is that if you are being tested for one thing and the insurance company finds something else wrong with you, your life insurance rate will not be affected by it.

If you are interested in saving money and getting a life insurance quote, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class life insurance providers - helping you find the best life insurance coverage at the most affordable price.

Though group life insurance is a great deal, is it really all the insurance coverage that you need?

In most cases your employer owns the group life insurance policy, and you will either receive it as an employee benefit or you can purchase it through your company's benefits plan voluntarily. If it is a benefit, it typically equates to one full year's salary that is paid out to your beneficiaries at the time of death. Smaller companies may offer a set, face amount payout, depending on your position at the company. Larger companies usually offer better death benefits, like up to three times your salary, in the event of your death. Smaller businesses are more apt to offer smaller plans due to limited funds.

Group life insurance that is offered on a voluntary basis is typically more extensive than if it's given as a benefit. Depending on what kind of policy you have, your spouse and children may be covered as well. The size of your death benefit can vary, and at some places, there is a maximum amount of $1 million that can be collected by the beneficiary at the time of death. Some employers even go as far as to offer a whole life insurance policy, giving employees permanent life insurance coverage, even after they leave or retire. The main difference between individual life insurance rates and group rates is that the premiums in group life insurance rates go up every five years (or so), because the risk of death associated with age increases.

Why group life insurance is so "cheap"
The cost of insuring a group of people, rather than an individual person, is cheaper because the rate is based on the overall risk of the group. The insurer typically assumes that not all people who are insured will remain with the company until they retire, which in turn means a shorter life insurance term. Also, the likelihood of the entire group dying is far less likely than if you base it off of one person.

The cost to insure a $100,000 life insurance policy under a universal life group policy would only be $5 per month, or $70 per year. This is because generally, for a person in good health working a normal job, the cost per $1,000 worth of life insurance coverage is only 5 cents.

No medical exams required
Unless a severe health problem is listed in the questionnaire when applying for group life insurance, no medical exam will be required. In laymen's terms, you will qualify for life insurance, regardless of any outstanding medical conditions, making it a guaranteed issue.

If a health problem is found, a medical exam, including blood and urine specimens, will be required before you can be approved for life insurance. Figures will be listed and compared in table format, comparing the employee population of males to females, smokers to non-smokers, and the nature of the work being done at the company and by the candidate. High-risk jobs, such as construction or carpentry, will likely be more expensive than low-risk jobs, like working in an office or a bank.

Added Bonus
Group life insurance is a great added bonus for you; however, it should not be used instead of individual life insurance. With group life insurance, the coverage offered is not always enough to take care of your beneficiaries, especially if you are the main bread winner in the family. Also, you may lose your group life insurance coverage once you leave your current job, and if you developed a health condition while working there, it may be more difficult to get affordable life insurance rates at the next place you go to.

However, the option to keep your life insurance after your leave or retire may be available, but it will probably cost you ten to 25 percent more in insurance premiums. In the event your employer switches life insurance plans or cancels the one you have, you will no longer be covered.

The downsides of group life insurance coverage

• You may lose life insurance coverage if you change jobs
• Limited life insurance coverage options and features to select from
• Group policies are more standard than individual life insurance plans

If you are interested in receiving a life insurance quote, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class life insurance providers - helping find the best life insurance plan for you and your family.

Do You Need More Than Just Group Life Insurance?

Child Beneficiaries And Their Life Insurance Trusts

According to Merriam-Webster's dictionary, a trust is a property interest held by one person for the benefit of another. The trustee (the person who holds the trust for another person) does not have the right to benefit from the trust. They can, however, be held accountable and liable for any lost funds, in the event they don't manage the assets responsibly.

It is a good idea to have a life insurance trust to benefit dependent children when your income is lost due to your death, but more so, it is important that these benefits you set up for your children are used the way you want them to be used. To do this you will want to create trusts for each of your children. Trusts are easy to create, so all you need to do is check with your life insurance company and see what verbiage you will need to include in your life insurance policy and will. You should appoint a guardian, as well as stating the trust in your last will and testament-in the case of a life insurance policy, your death benefits would be transferred to the trust after your death.

It's quite common for young parents to name each other as beneficiary, but if they both die, the money can be put into a trust for the couple's children. The trust agreement needs to be clear as to whom the trustee is and how the money is to be used.

What if I have a special needs child?
If you have a special needs child, and they can neither work nor care for themselves, a special needs trust can be set up in their name using your life insurance funds to pay for their care. Social Security is generally the income they can expect to receive when you die, so it's important to note that by giving the money to them outright, they may be ineligible for the Social Security until the money runs out. With the special needs trust, the trustee can pay for everything except for essentials, such as food, clothing, shelter and medication-which can be covered by Social Security instead.

It is most important to be sure that the terms of your trust are in writing and that you make the life insurance company aware, as well as the allotted trustee, of the arrangements of the trust.

If you are interested in getting a life insurance quote, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class life insurance providers - helping you find the best life insurance coverage for you and your family.

Booming Life Insurance Sales

When tragedy occurs, many people tend to reevaluate their way of thinking and begin to play the "worst-case scenario" game. The terrorist attacks of September 11 were no different. Minds began racing, and people began questioning things like, "what will happen to my family if something happens to me?" Or, "How will my family be affected financially if I die?" And with the increase in questions and uncertainty in the event of a tragedy happening in the future, the sales in life insurance and financial planning boomed.

Proof of this can be seen in the results of MIB Life Index for the fourth quarter of 2001, which showed the highest levels since 2000. The MIB Life Index tracks searches for medical records undertaken by insurers after a consumer applies for life insurance.

LIMRA International, a financial services marketing and research organization, found the same high results when looking at life insurance figures for 2001. After the stories from survivors praising their life insurance companies for all that they had done to help them get back on their feet came out, a new found sense of hope and a "do-gooder" attitude began to erupt throughout life insurance companies and insurance agents. "When people feel great about what they do, and are proud of the accomplishments they have, they tend to work harder and become more enthusiastic," says Dave Roush, CEO of Insurance.com.

One of the strange findings was that most Americans claimed they were less likely to seek out any financial advice or buy life insurance at all. This feeling of uncertainty can be attributed to how the economy was and how things really weren't looking good for the American people. Job stability and the affordability of life insurance was a big concern, as was that of talking to strangers or opening unmarked mail, due to the anthrax threat.

If you are interested in receiving a life insurance quote, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class life insurance providers - helping you find the best life insurance coverage for you and your family in the event of a tragedy.

Battle of the Sexes: Who Pays More For Life Insurance?

In a society where the battle of the sexes runs neck-at-neck for almost all cases, it's a hands-down winner in the race for who plays less for life insurance. The winner is women. But why?

A study by the Society of Actuaries done in February of 2001, concluded that testosterone wreaks havoc behaviorally and biologically on men's bodies, which leads to a higher risk of disease, as well as risk-taking behavior-like unsafe driving and drug and alcohol abuse. This is because testosterone promotes higher blood pressure while it lowers the effectiveness of the immune system. The greatest difference in mortality rates is seen at age 22, when testosterone is at its highest.

Traditionally, it was believed that women lived longer than men because most worked from home. But more recent studies have shown that women who are out in the working force actually live longer than those who are homemakers.

Additional studies have been done in an attempt to study demographic mortality rates of men and women. The conclusion of such studies showed that men typically have a higher rate of dying from cancer, diabetes mellitus, heart disease, strokes, pulmonary disease and infections-hence why men pay more for life insurance. The highest and more prevalent danger now, for both sexes, is cigarette smoking. Smoking takes more than nine years off a normal life expectancy, compared to a life expectancy of a non-smoker.

If risk-taking behaviors and bad habits are assessed early, and steps are taken to correct them, both men and women can expect to extend their life expectancy substantially. The better and healthier you are, the easier it will be to find affordable and adequate life insurance. If you are interested in receiving a life insurance quote, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class life insurance providers - helping you find the best life insurance coverage for you and your budget.

Affordable Life Insurance For Asthma Sufferers

In the United States, asthma continues to be a growing concern not only for asthma sufferers, but for life insurance companies as well. The main concern of insurance companies is that half of all asthma deaths occur in people younger than 65. Though asthma is a very serious and potentially deadly condition, it is still possible for asthma sufferers to find affordable life insurance.

If you have asthma, it would be beneficial to shop around for different life insurance quotes. The severity of the asthma that you have, the persistence of it, and how well you respond to treatments, are all deciding factors for insurance companies when they are considering your policy. The National Institutes of Health have set goals for asthma treatment, and if you accomplish such goals, your premium may go down. The list includes:

• Low occurrences of wheezing, cough, shortness of breath and chest tightening
• Asthma symptoms not affecting your sleep
• Asthma not causing a disturbance in your work or school schedule
• Full participation in physical activities
• Hospital stays or visits to the emergency room that are not asthma triggered/related
• Asthma medication taking effect without causing adverse side effects

If you're an asthmatic and you apply for life insurance, your life insurance company will want to know the results of your pulmonary function tests (given by your doctor) and what your "peak flow meter" reading is (typically a self-test done at home). The tests will show how good you are breathing, which helps insurance companies see how much of a risk you truly are.

Within the past three years, if you haven't suffered from any "exacerbating asthmatic episodes," where you were required to go to the doctor, emergency room, or take off of school or work, your application will appear more favorable. As a result you could potentially qualify for a standard or preferred life insurance policy. As long as you maintain a healthy and active lifestyle, your insurance rates should be affordable. However, if medication isn't working for you, that's when you may see an increase in your insurance rates.

Asthma attacks and higher rates
The plan laid out by the National Institutes of Health is ultimately what a person with asthma who is looking to buy life insurance needs to strive for. If the last series of asthma attacks were so severe that you needed medical treatment, then you will have to wait longer to get the better rates. The longer it's been since a severe attack, the easier it is for you to get a more affordable policy. Also, life insurance companies tend to look down and become leery of policyholders who have frequent, though less severe, attacks. In the eyes of the life insurance company, this could mean that the medication is failing and a new treatment may be needed.

A smoker and an asthmatic?
Asthmatics who are smokers may have one of the most expensive policies. Not only will the policyholder be charged with smoker rates (up to three times the amount of non-smoker), but also, they will be charged a surcharge on their life insurance policy because they are an asthmatic. Regardless if you smoke or not, it is still important to visit your doctor at least twice a year to have your asthma monitored. This will not only be beneficial to your health, but it will also show the life insurance company that you are taking care of your condition.

A list of the medications you are on should also be given to your insurance company-Even though they may use the amount and kinds of medication you are on as an indicator of how severe your asthma is, a list should be given to your insurance agency. If you are taking a lot, it may seem that by giving them this information, your rates will automatically skyrocket, but remember, their main concern is how well you respond to the treatment. If you recently switched medication, it would be a good idea to hold off on applying for life insurance for a year or two, just so you can establish a history with the medication and show that you are meeting your goals.

If you are interested in receiving a life insurance quote, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class life insurance providers - helping find the best life insurance coverage for you and your family.

Accidental Death and Dismemberment Insurance

Accidental Death and Dismemberment Insurance (AD&D), it sounds simple enough, right? But is it really necessary? That's the decision you need to make.

Generally, AD&D insurance is a rider on a basic life or health insurance policy. It's name states exactly what it covers; accidental death and dismemberment insurance, but there are limitations of the coverage. These limitations may be a deciding factor for many on whether or not to add it to their existing life or health insurance policy.

The first thing to consider is whether or not AD&D insurance is a good deal for you. What is the likelihood you will have to make a claim? If you have health and life insurance already, you should be covered in the event something happens to you and you are forced to make a claim. Also, it may be wiser and more cost-effective to just put the money you'd be paying towards the premium into a standard life insurance policy or other form of insurance. Dave Roush, CEO of Insurance.com, warns consumers that "AD&D is a very, very limited form of insurance. When it comes to insurance, you want to be covered and protected in all instances, not just certain ones."

What does AD&D cover?
In the event of a fatal accident or an accident that results in you losing your eyesight or a limb, AD&D will pay out. However, there are stipulations to the coverage. To receive benefits in the event of an accident, your injuries or death must occur within a time frame of three months from the accident date. Only if your death or injuries can be proved as being a direct result of the accident, will you be able to collect off your AD&D coverage.

If you are in surgery and die, have a mental or physical illness, bacterial infection, hernia, or you have a drug overdose that results in your death, you will not be covered by AD&D. "It is important to read the fine print when applying for this kind of policy, because it may just seem like you are getting better and more adequate coverage, when in reality, you're really not," reports Roush.

Dismemberment coverage gets a little trickier. If you lose one member (a hand, foot, limb, or sight in one eye), the insurance company will pay 50 percent of the full benefit. If you lose two members, you will receive the whole benefit.

Where to get AD&D
AD&D policies are generally underwritten by major insurers and can be purchased through credit card offers or credit unions. Some major life or health insurance companies may include AD&D in their group health or life insurance plans. Again, there are limitations for some companies in that the insured must earn at least 10 percent of the principal amount, and in the event of a covered accident, they can collect no more than 10 times their annual salary.

How much is accident protection worth to you?
Accidental death and dismemberment insurance is a good supplement to a life insurance policy. Depending on the amount of coverage needed, AD&D insurance premiums average out at around $60 per year. Even with the low cost of Accidental death and dismemberment, many would prefer to use the money they could be paying for the policy and put it towards more health or life insurance coverage. Also, if your job isn't high-risk, like construction work for instance, buying AD&D doesn't seem to make a lot of sense.

An accidental death policy (minus dismemberment coverage) is another route consumers can go down if they are considering extra coverage. If, for example, you had a $100,000 life insurance policy and you added an accidental death rider, and you were killed in an accident, your beneficiary would get $100,000 from your life insurance and $100,000 from you accidental death insurance. If you're killed on a "public conveyance," the accidental death benefit doubles, so your beneficiary would receive $200,000.

Do you really need it?
Risky or extreme hobbies, such as skydiving, bungee jumping, or extreme sports may not be covered by AD&D, because you are routinely engaging in dangerous activities. If you're working in a high-risk job, such as construction, the AD&D policy may be a good idea-though with high-risk jobs come higher premiums regardless. It is inexpensive accident coverage, and it won't hurt to have the extra coverage, but realize you could be putting the money towards a different kind of insurance policy that is more conducive and beneficial to your lifestyle.

If you are interested in getting a life insurance quote, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class life insurance providers - helping you find the best health insurance coverage for you and your family.