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Posts Tagged ‘death’

Beat the jargon: Final Expense Life Insurance

February 23rd, 2018 Comments off

It is unfortunate, but death really does come to us all; this is why it is crucial that we invest in a policy such as final expense life insurance. By taking out this option of burial policy, it is possible to leave all the hassle and stress of death, for you and your loved ones, behind.

A burial policy, such as the final expense life insurance option, is purposefully designed to help with the fees involved with your funeral. Whereas some are strict about what the funds can be used for, this insurance policy is a lot more flexible. As well as paying for the funeral arrangements, the funds can be used to pay off existing debts after you have passed away. Legal fees and medical bills do not have to be sorted out and paid for by your relatives. There are no stipulations about how the money should be used, other than to clear the costs of the funeral.

Some death insurance policies do not allow you to name a specific beneficiary, whereas this type of policy does. You can then discuss with the named beneficiary how you would like the money to be spent after you have died. One advantage of this policy, certainly for the beneficiary, is that any extra funds belong to them after all the funeral expenses and specified debts have been paid off.

You could opt to elect a spouse, partner, friend or one of your children as the beneficiary; the list is practically endless. If you decide to have one of your children as the beneficiary, it is recommended that you hold the policy in some kind of trust. This is because the funds may be subject to tax and by adopting this method, these issues are ironed out.

Applying for final expense life insurance is quick and easy; most of the insurers allow you to apply online and you will get quick decision. Most of the time it is not necessary to answer any questions relating to your health or be requested to undergo a medical examination.

The insurance agent may request that you take what is known as a guaranteed policy. This kind of burial policy means that there is a required waiting time before the policy becomes “effective”. If you should pass away during the waiting period, the paid premiums are returned in full. If you pass away after the specified waiting period, then the funds will be paid in full to the named beneficiary.

You can take final expense life insurance policies out in joint names. It should be noted however, that most insurers will only pay out the death benefit for the first death. The subsequent death will receive no further payout. The premium you will pay will be a set amount that will not change during the period of that particular policy. The policy will also remain intact as long as the premiums are paid up to date.

For all of these reasons, it is best to look into getting a final expense life insurance policy sooner rather than later. By getting these types of policies in place, you can get on with enjoying the rest of your life.

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Do You Need A Life Insurance Broker?

November 21st, 2017 Comments off

The simplest answer to that question is, no. However, there are definitely times when an insurance broker can be helpful. They can actually save you a considerable amount of money.

It does not matter whether you want to purchase car, health or life insurance, there are a large number of companies to choose from, and a significantly extensive number of complex plans available. Translating those plans can be frightening, especially if you have not had experience in this area before. This is where the services of a broker can be invaluable.

A life insurance broker is, fundamentally, a go-between. They step between you and the insurance company. In fact, it’s their job to seek out the lowest insurance policy. Because an insurance broker does not work for any specific company, they are able to develop relationships with numerous insurance companies. This allows them to hunt for the best options, answer questions, and point you in the right direction, as far as your insurance needs are concerned.

Once you select the broker you want, you supply them with your specific details and needs. From there, the broker begins sorting through the choices available, looking for the best deal. The broker will either give you multiple quotes to choose from, or offer you the lowest option available. Now all you need to do is compare several insurance estimates from the leading companies. You are now able to make an informed decision on which one will work best for your particular situation.

Because they do not work for any one company, a broker must be familiar with all the leading insurance companies. They know the reputation of each one. They also know how the company operates. They can answer important questions, as well as inform you about such things as how often premium increases occur, and how they handle claims.

Insurance brokers work on commission. The insurance companies pay them for every policy they sell. If you were to go to the company, and purchase a similar policy, you could not get it at a cheaper cost. What that means is that using a broker to help you find the best policy costs you nothing more, and it takes a great deal of stress off your shoulders. The broker does the research and deals with all the frustrations of weeding out the better polices. All you have to do is consider the options he presents for you, and make a decision on which one is going to work best.

One of the biggest benefits a broker offers is his or her expansive knowledge of the marketplace. Not only can they find you the policy you need, they can do it quickly. They can also get you exactly the kind of coverage you want, at a price that would be hard for you to match. Brokers understand the technicalities of insurance contracts, and they can make sense of all the small print. They also have answers for your questions. Choosing to use a broker is an astute decision.

Susan Reynolds is the content coordinator for a leading South African Insurance Provider who specialises in Life Insurance.

Life Insurance VS A Retirement Policy

August 4th, 2017 Comments off

Many people find out at retirement that they have not enough money to live the lifestyle they are used to. There are too many people in this country that have no retirement benefits and will be living on social security benefits alone. For someone living on social security benefits their lifestyle will change dramatically and they will find that they may not have enough money to keep their home and retirement becomes a burden rather than a joy.

Many people believe that a life insurance policy is only to be paid out in the event of the policy holders death. The truth is that many people use life insurance policies as a way to protect their financial well being during their old age. The life insurance policy is able to be funded from many resources, such as stocks and bonds, certificates of deposit, mutual funds and even cash reserves from your bank account. This money can then be withdrawn at retirement age tax free.

Having the security of death benefits for your family is very important but having peace of mind about your financial well being after retirement is a huge concern for most people. The life insurance policies can be created to offer payouts over a specified period of time or can be paid for your entire lifetime. The best feature of the policies is that you put in it what you want to invest in your future and the payments will not be considered taxable income.

Retirement benefits can be utilized in many ways with the life insurance policies. You can borrow from cash values or have a payment plan designed to meet your needs. In both instances there will be certain pros and cons.

Money that is accumulated in a life insurance retirement policy will be able to be withdrawn at retirement age without paying tax or taking any penalties. If you are using an IRA for retirement you can expect payments to be made to you but you will have that amount taxed as income. The tax free money is a huge advantage to the life insurance retirement policy.

If you are borrowing cash from the retirement policy as a method to avoid having to pay any taxes on the money you may be surprised that you could be hit with capital gains tax on any payments that aware in excess of the premium, this is for the lifetime of the policy so if you paid over for 40 years you can expect a huge penalty. If you are now 80 or 85 and are trying to just get by with paying estate taxes and pay the high cost of health care this tax could put you in the poor house and cause you to lose everything you own trying to pay it back.

You may have been shown a great retirement package from the agent you bought the policy from and then find out when you retire it is less than what it should have been. The rates change and if you had a great rate at the time of purchase and they have since fell you will not have the benefits you once though. With a standard retirement package you may be able to have more security in knowing what your benefits will be but they will be taxable and you have less chance to increase them over time. With the insurance policy you can add as much cash to your policy as you wish and you will never be taxed on your payments after retirement but you do have a slightly larger risk involved with your money.

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Tips When Considering A Life Insurance Policy

July 29th, 2017 Comments off

If you have anyone in your life that rely on you to support them financially then you will want to have proper life insurance coverage. Life cover should be at the top of your list of priorities. How will your family survive financially when you are gone? It is not something any of us want to think about but it is reality.

You want to be sure that your loved ones who depend on you for financial support are taken care of even after you are gone. It is important that they be able to survive if something happens that you do not.

A lump sum life cover policy is pretty straight forward. You may need help with choosing plan types and amount of coverage. Ask your agent to give you the advice on how to select the best policy plan that is right for you and your needs.

There are some things you should know prior to applying for life coverage. Be sure you are taking out a adequate amount of life coverage. Dont forget to factor in all the bills. Your coverage amount can be estimated by using an internet calculator. Be careful not to be under insured. You do not want to find yourself over insured either.

You will have to figure out how long you will want the insurance coverage in place. A trust will ensure that all loved ones receive their benefits.

Policies that are not placed in a trust become part of your estate and could increase the inheritance tax liability. A trust form should be given to you with your policy information.

One of the more popular policies is the Level Term Assurance (LTA) this means your policy amount will stay the same through the duration of the coverage. If you are looking for a less expensive policy and only need coverage for a debt such as a mortgage you can buy Decreasing Term Assurance (DTA) for a great rate.

The most popular cover is the Level Term Assurance (LTA) where the sum of your insured amount remains the same for the duration of the term. If you only require cover for payment of a home loan or other decreasing debt you could check out Decreasing Term Assurance (DTA) for a much better rate.

If you have had a life cover policy for many years you might want to shop around, it is possible to switch to a lower cost one. Always look to be sure you are not losing any irreplaceable benefits when cancelling a policy.

If you have had a life cover policy for some time you might want to shop around, it is possible to switch to a lower cost one. Be sure that you are not losing any valuable benefits before cancelling a policy. You have to keep in mind that if your health has gotten worse or any huge life changes have occurred you will be paying a more costly rate for a new policy.

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Life Insurance – The Risk Assessment

November 14th, 2016 Comments off

So many people apply for life insurance policies, but only a few of them get approved for the same. It is certainly not the easiest of jobs to get a life insurance policy. You may have enough money to pay the premiums, but it does not make you eligible for the policy. Your application for a life insurance will be assessed and analyzed. In other words, a thorough underwriting would be done on the application. Underwriting consists of the risk analysis to approve the application, and the decision on appropriate premium amounts to be paid by the individual.

Companies hires experts, called the underwriters to do the underwriting for them. At the end of the day, insurance companies need to earn profits that make them so choosy about accepting life insurance applications. There are three steps involved in the process of underwriting which are examine the application, decision to insure or not, determine the premium. Below is a discussion on these steps.

The first step involves the examination of the application. Here maximum details about the applicant are collected. The application includes a list of fields that the applicant needs to fill up, such as the marital status, sex, type of living area, age, and current health status and so on. All these parameters are taken deep into consideration.

After all the information about the applicant is handy, the risk assessment triggers. The applicant is remarked against all the above parameters one by one. These parameters are termed as the risk factors. The applicant needs to score low on these risk factors to get through this phase successfully. Each of the risk factors holds its own importance and value. However, most companies give extra significance to the age and health of the applicant. If the applicant is young and healthy, the chances of approval are very strong. As against this, if the applicant is old and ailing, the denial is on the cards. The living environment of the applicant has a huge role to play as well. If the applicant happens to live in a polluted and unhygienic area, the insurance company starts to feel a little edgy about approving the application. At the same time, a good and healthy living environment of the applicant makes it considerably easy for the companies to approve the application. Gender is another point of evaluation for many companies. Women are thought of living a better and healthier life as compared to men. This is because they are known to take lesser depressions in life. On the other hand, married men are believed to life a healthier life as compared to the married women. Another important aspect of consideration is the living habits of the individual. If the applicant smokes and drinks, there are likely to be negligible chances of an approval. The aim behind all these considerations is to ensure that the probability of the individual living longer is more.

The above risk factors not only determine the approval or denial of the insurance policy, but also the monthly premiums. Once the application is approved, the score of the applicant on the risk factors also decides his pr her monthly premium amounts. A young and fit individual would have to pay lower monthly installments, as compared to an old and ailing individual.

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