Understanding Life Insurance Basics

To some they do not purchase life insurance until something happens to them which to me are a tragedy in itself. And to some people it is a must. But before you start looking to purchase a policy, you have to understand the types and factors associated with it. You have to understand what is temporary or term and permanent. And under the permanent type of insurance there are other sub types of policies which may offer a better deal for you.

Term life Insurance: It provides a coverage for a specific duration of time or specific number of years for a specified premium. This type of policy coverage does not accumulate cash value. It is commonly referred and considered pure insurance. It is pure type of insuring because the premium buys protection in the event of death and nothing more. Though it will not accumulate any cash value, it is 8 to 10 times cheaper than a permanent life insurance.

Permanent life Insurance: It is a type of coverage or policy that remains in force until the policy matures. This will be in force provided that he owner continue to pay their premium when due. If the owner fails to pay the premium when it is due, the policy expires or policies lapse. Permanent type cannot be canceled by the insurer for any reason except for fraud in the application. This type of insuring yourself builds cash value that reduces the level of risk to the insurer over time.
There are three basic types of permanent insurance namely; universal, whole and what are called endowment.

A universal life insurance is another type of permanent type of insuring yourself that is based on cash value. Universal is intended to provide insurance coverage with greater flexibility in terms of the premium payments and the potential for a higher internal rate of return. The flexibility of this policy allows you to change the amount of insurance as your needs for insurance change. Some of these changes require underwriting approval. The main benefits of a universal type are its flexibility, security and protection for love ones, tax-free death benefit and tax deferred account value growth.

A whole life insurance is a type of insurance whereby the policy remains in force for the policyholders’ whole life. There are seven different types of whole life namely; non-participating, participating, indeterminate premium, economic, limited pay, single premium, and interest sensitive. Whole life insurance is expensive. This type of insurance is like a force savings. You are not only paying for the insurance but for the investment portion of it.

Decades ago, endowment insurance is popular as a saving mechanism and considered to be a good buy. But in today’s world it is being replaced by universal life insurance. It is a type of life insurance where its face value is payable only if the insured survives to the end of the endowment period. Endowment life insurance is rarely use in the last 15 or so years.

Accidental Death Insurance: This is a type of life insurance that is covers exactly what it says. Simply put, it is designed to cover the insured when they die due to an accident.
Understanding and knowing what are the different types of life insurance can empower you more in your search for the right life insurance that you may take out.

Malaises That Make Life Insurance Hard to Get

You might consider that obtaining life insurance is very easy. All you need to do to get an insurance is to fill up a proposal and submit the requisite documentation. The underwriters at the insurance company will do the rest. Alternatively, if you do not want to exert yourself too much, you could consider visiting your insurance advisor. The advisor will give you various options for obtaining life insurance. Most perspicacious insurance advisors will also advise their clients about the pros and cons associated with each policy. Depending on the client’s requirements, the advisor will recommend a life insurance policy. The advisor will submit the proposal to the insurance company, with the relevant documents. However, did you know that not everyone is as lucky when it comes to obtaining life insurance? Several people keep receiving rejections every time they apply. Further, these people do not possess habits injurious to health i.e. smoking or excessive consumption of alcohol either. Neither do they work in hazardous occupations. Despite this, finding life insurance remains an uphill task for them. What makes it worse is that these people need life insurance more than regular human beings.

Certain malaises impact a person’s insurability quotient. The inherent risk posed by these ailments makes insurance companies reject their proposals for insurance. However, the fact remains that these individuals are as normal as anyone else is. While they are not risk-free individuals, their ailments do not restrict them from leading normal lives otherwise. Bipolar disorders are an example of such ailments.

An individual approaches an insurance company and admits to suffering from a bipolar disorder. Insurers have a tendency to believe their voluminous database of statistics. According to these statistics, anyone who suffers from a bipolar disorder will commit suicide. Hence, they do not provide bipolar insurance to anyone having this malaise. However, they overlook the fact that there are two types of bipolar disorders i.e. I and II. Bipolar Disorder I is more serious than Bipolar Disorder II. Anyone suffering from Bipolar Disorder I will pose a higher risk. However, an individual suffering from Bipolar Disorder I can obtain bipolar life insurance. Certain insurance companies will consider providing insurance if the individual can prove that:

• The ailment is well controlled and,
• The individual does not have a history of demonstrating any serious behavioral traits or suicidal tendencies

Bipolar Disorder II is a less volatile disease than Bipolar Disorder I. While the latter can remain a risk throughout life, the former can produce excellent results, if controlled properly.

Another malady that insurance companies avoid is melanoma. These insurers will usually reject any proposal for melanoma life insurance. Usually found on the skin, melanoma can also occur in the eye. Doctors regard it as one of the most malignant forms of skin cancer. The human body comprises certain skin cells that give the skin its colour i.e. melanocytes. By producing melanin, melanocytes protect the deeper layers of the skin from the harmful ultraviolet rays of the sun. In certain cases, the skin could absorb a lot of ultraviolet radiation. This would make the melanocytes produce an excess of melanin. Eventually, the melanocytes will grow abnormally, thereby resulting in cancer. This explains why melanoma life insurance is hard to obtain.

However, this does not mean that no life insurance company provides cover to people suffering from melanoma. If the individual can provide information pertaining to their diagnosis, insurers will reconsider the proposal. Such information includes details like the:

• Age of the individual at the time of diagnosis of melanoma
• Number of years since the diagnosis
• Size of the tumor
• Presence of metastasis
• Presence or evidence of ulceration
• Stage and grade of cancer
• Recurrence of cancer after treatment, if applicable

Based on similar information, insurance companies can provide insurance cover to people suffering from this disease.

At Special Risk Managers (Sydney, NSW), we know that finding life insurance as a high-risk individual is difficult. Yet, such people need life insurance more than “healthy” individuals do. Hence, we set about providing a specialized service aimed at providing insurance to these individuals. An exclusive arrangement with a like-minded international reinsurance company enables us to provide angina insurance, bowel insurance, overweight insurance and murmur insurance. Thus, if you have tried to obtain an insurance everywhere and failed, give us a call at +1300 66 53 56. With us at your side, finding insurance will not be a problem.

International Travel Insurance For Crisis Situations

Globally, people are alert to the risk of travel after the recent Air France disaster and the Swine Flu pandemic.

Air France 447 crashed on May 31 600 miles from Brazil, killing all 228 passengers and crew on board. There will be ongoing investigation to determine the cause. Travelers are not able to stop accidents from happening, but they can be ready for unforeseen events.

The World Health Organization has declared a global flu pandemic. The swine flu (H1N1) virus has spread to 74 countries, after first emerging in Mexico in April. Reports put the figure of affected people at 28,000 globally, with 141 deaths. The swine flu is the first flu pandemic in 40 years. The last flu case in Hong Kong in 1968 killed one million people.

International travel is a fact of life these days. But it doesn’t have to become a nightmare.

Travel insurance can give you the protection of overseas emergency medical insurance. International health travel insurance covers:

o Access to contracted doctors and global health and security services.
o Returning minor children to their family if left unattended because of your illness and treatment
o Medical evacuation to your home country
o Repatriation of remains and personal effects
o Term Life Insurance
o Accidental death and dismemberment
o Reimbursements for delay of travel and loss of luggage
o Reimbursements if you are unable to travel due to sickness or sickness of a family member
o 24 hour emergency hotline services

The great news is that international travel insurance is very inexpensive. With some plans insurance costs as little as $35.00. By purchasing a simple medical evacuation plan for $78 for three months of coverage, a person can add $200,000 of term life coverage for an extra $21; or $400,000 for $64.00.

Good Neighbor Insurance recommends insuring against the unexpected difficulties of international travel. A reliable travel insurance broker can help travelers locate the right plan no matter the length of the trip.

Should I Buy Whole Life Insurance Or Term Life Insurance?

Both whole and term life insurance policies are beneficial for consumers. Proper financial planning for most individuals and families will include life insurance in order to provide guarantees for the beneficiaries. In most cases, term life will provide the needed liquidity in times of need, but whole life will also provide needed benefits in certain situations.

Term Life Insurance

Term life has quite a few advantages and the most obvious is cost. Families can purchase policies with large face amounts for pennies on the dollar. These benefits will provide loved ones with funds to pay for mortgage expenses, raising children, tuition, debt, and everyday living expenses.

Term life literally buys time. Policies are usually purchased to cover a 20 or 30 year term. Conceivably, after this term has expired, the insured would have less debt, children would be young adults, and the family would be stronger financially overall.

However, term life will eventually expire and is quite expensive to convert to whole life. Should there still be a need for insurance after the end of the term, then the proposed insured would pay much more for a similar policy. Life policies are always much less expensive when for the young and healthy. If the insured has very poor health, then he or she may no longer qualify medically for life insurance.

Whole Life

Whole life is advantageous as it provides benefits for the entire life of the insured. Consumers need not worry about their future insurability as long as they pay their premiums. And a well structured whole life policy will eventually be a paid up life policy. Premiums will no longer be due and the interest earned will pay for the cost of insurance itself.

Consumers can borrow against their whole life policies and use the cash value in times of need. In this way, whole life plans are much more like an investment than term life. Additionally, the internal cash value can always be used to fund a single premium paid up policy. The face amount would be less, but premiums would no longer be charged by the insurer.

Whole life plans work very well to provide for known future obligations like estate and inheritance taxes. Life insurance can be setup outside of the estate and provide needed liquidity for tax, business, and personal obligations. Smaller final expense policies are always funded by whole life insurance.

However, these polices can be expensive and if they are not properly funded in the present or the future, then they can become a financial burden. In some cases, a whole life policy could lapse and become worthless to the owner and the beneficiary if premiums are underestimated or simply ignored.

In all, both whole and term life have a place in any financial plan. It is wise to discuss present and future needs with an agent and to perform a life insurance needs analysis. With proper planning, consumers will have peace of mind knowing that their obligations will be accounted for.

Where Can I Buy Cheap Life Insurance?

Because life insurance coverage is so important, most people consider where they should purchase it from. Several options are available while purchasing a policy. An individual can acquire they coverage desired via local brokers, life insurance companies or directly from the web.

To uncover the best deals and rates requires a great deal of research. Become an insurance rep and help people decide what policy would work best for them. Consumers can now purchase insurance by contacting a salesperson personally, or via email or telephone.

Prior to choosing a company to purchase policies from, it is very important to verify that the organization is sanctioned by your state’s insurance commissioner and BBB.

The internet is the greatest source of all the needed information. The simplest, most reliable, and best means of finding and buying good life insurance is online. A wealth of information can be found on the internet, along with quick access to accurate quotes. There are many businesses that are listed in the online industry directories. These can also help you to revise, equate, and buy a fitting policy for your state

There are many sites online that provide searches for life insurance plans. Here are the websites that disclose ratings and policy information of the major companies. The organizations listed here provide life coverage policies and have similar fundamentals; they all meet the needs of customers. Nevertheless, they each are different in coverage, exceptions and terms.

Some of the interne tinsurers are: Metropolitan Life Insurance Company, Transamerica Occidental Insurance Company, American General Insurance Company, CIGNA and Aetna.

These insurance agencies deal with many forms of life insurance. Each company will have their own website where you can check ratings and information about life insurance. Before purchasing, customers should compare and find the least expensive plan with the need coverage on these sites.

Dependable applications and worry-not management of policies are some unique things that Metropolitan Life Insurance Company presents. For monitory planning their solution and services are the best. MetLife provides policies in Asia and Europe in their role as members of the Reinsurance Group of America.

(AIG) (AIG) leads the way in handling such economical services as insurance, savings, and retreat planning. The company will cover all international service in North and Latin America, Asia and Europe. AIG’s affordable rates represent a 75% discount in prices on these insurance policies. Over the internet quotes make shopping a lot less time consuming and infinitely quicker.

Term, whole, and universal life insurance policies are available at great rates from Transamerica Occidental Life. Other online companies who offer cheaper rates for coverage are Aetna and Cigna.

There exist some online life insurance websites which assist individuals which purchasing policies. These websites can be helpful for figuring out where to purchase it. Visit the websites below to get moving in the correct direction. The quotes from major life insurers will be compared as listed above.