While we may have friends that can give us advice on when, and how much life insurance to buy, only a licensed life insurance agent would know for sure.

Our agents are fully licensed in their respective states. We cover all 50 states, so you can be sure we know the business better than anyone.

From Fairax to Timbuctoo, we got the rates you need, with the financial backing of the worlds top lines.

Shopping for life insurance online is easier than you think, and is more likely to get you the rates you deserve, simply because quite often, a local life insurance agent will represent only one or two insurance companies, while online brokers such as ourselves work with dozens of insurance lines, ensuring not only that we find the best price, but also the company that is most likely to give you the best benefits for you. This is especially true if you have had any health history issues, or a somewhat unique job.

Almost nobody wants to think about life insurance. The terminology can be confusing and it seems like it’s hard to know what to do when it comes to buying life insurance. Debunking the myths about life insurance is a good start to understanding what life insurance is, why you need it and how much you need.

Myth #1: Only people with dependents need life insurance. One goal of life insurance is to protect one’s spouse and children by replacing your income if you should die. But even an unmarried person will have debts, funeral expenses and other bills that will need to be settled. The proceeds from life insurance can also be used as a legacy gift to a charity or relative as your legacy.

Myth #2: Life insurance through employment is enough life insurance. If you have no dependents and not many outstanding debts then that coverage may be sufficient. However if you become ill and lose your job you also lose your life insurance and you may not be able to qualify for an individual life insurance policy if you have certain health conditions.

Myth #3: Life insurance if for when you are old, so it’s okay to ignore it for now. No one wants to think about death or what might happen to their family if they weren’t there but if you can see it as a way to ensure your dependents are taken care of, it gives you one less thing to be worry about.

Myth #4: All life insurance policies are the same. You need to read the details of the policy because there are details that will vary from one insurer to another. One item to look at is the limitations of the policy. There may be a waiting period after you buy the policy before benefits can be claimed. There may also be exclusions for suicide, acts of war, or on the job death.

Myth #5: Buying life insurance is too much trouble. You can easily get online quotes for life insurance. You can also ask for quotes from an insurance agent and make the comparisons easily enough. Also this is a process that you only have to do once for a policy that will last for years.

Myth #6: If my spouse isn’t employed they don’t need life insurance. Your spouse would have funeral expenses or debts to be repaid. Also, you should consider what would happen if you spouse were not there to run the household or care for the children. You would need to have the resources to get assistance with those duties. Also, you might want to the option to take time off to be with your children or settle your spouse’s affairs. The proceeds from life insurance could be very helpful in a stressful time.

Myth #7: It is best to name your estate as your beneficiary. You should consult your accountant and attorney about your specific circumstances. But in general if the estate is the beneficiary then the life insurance proceeds must go through probate. This process can take months to resolve and could increase the estate taxes that must be paid.

Myth #8: Term life insurance is always a smarter choice than permanent life insurance. It’s true that term life can be less expensive than permanent life policies. But a permanent life insurance policy can be beneficial if it is also used as an investment tool. One permanent life insurance plan is universal life which allows you to vary the premiums you pay in a year. This is good for someone with a fluctuating income. Also you can borrow against a permanent life insurance policy and withdrawals of the principal are tax free. Because of upfront fees it should be a policy you plan to keep for at least 20 years.

Myth #9: Life insurance is too expensive. Life insurance is less expensive the younger that you are. So it is a good idea to get a policy that is renewable at a younger age while you are in good health. But almost anyone can find a basic policy that fits their needs if they do some comparison shopping.

Myth #10: Everyone needs to have life insurance. Each person’s situation should be individually evaluated. If you have no dependents and enough resources and assets then life insurance might not be necessary. But you should be sure that you have adequate health insurance and long term care insurance so you don’t have unpaid medical bills that would need to be settled once you are gone.

Myth #11: Always buy term insurance and invest the difference. Each person’s situation is different. Term insurance may be sufficient for many people but there are taxation and estate issues that a financial planner or accountant can advise you about. For some situations permanent life insurance may be a good option. Also if you follow the logic of investing the difference, be sure you have the discipline to follow through.

Myth #12: Life insurance should always be seven times my annual income. Although this rule has been used often it may be more than you need if you don’t have dependents at home and your parents or spouse is well insured. Also you don’t want to have premiums so high that you can’t meet the payments if you should lose your or lose coverage because your employer lessens your benefits.

Myth #13: Life insurance doesn’t need to be updated. Once you buy a life insurance policy you’re done, right? Actually a life insurance policy should be updated if you have life changes like marriage or divorce, taking care of an elderly parent or children that have grown up and left home. When you take on new responsibilities you may need more coverage. If you have less dependents to care for you may not need as much.

Myth #14: You should only count your salary as income. When determining how much life insurance you need you are not only replacing your salary but your benefits as well. So if your employer provides health insurance for your dependents or other benefits you would need to be sure that you have enough life insurance for them to purchase that coverage on their own.

Life insurance is a topic few people willingly consider. Whether as an investment tool or to protect finances and property ownership in case of death, it is an important, serious consideration. The sheer number of life insurance policies available can make choosing a life insurance policy seem like a daunting task. Fortunately, it can be far simpler than believed once the prospective buyer outlines an evaluation and understands the purchase process. Some of these steps, such as step #1 require less effort than others (e.g. step #4), so please bookmark this page for easy reference later, should you need it.

Step 1: Policy Intent The buyer should ask why the policy is wanted. If the life insurance is intended to act as a long term investment tool, he or she should consider a whole life policy over a term life policy. If the life insurance will act as a financial safety net for a limited time period—either until young dependents are financially independent or reach adult age, at least or until the buyer’s retirement, a term life policy is probably the better choice.

Step 2: Coverage Amounts Determining how much the policy should offer in benefits depends on individual financial needs. Will there be enough to, for example, pay off a mortgage or credit cards and still provide a financial cushion? Does the policy allow only tiered coverage amounts, as in $10,000 increments only per premium amount, or can the buyer designate a specific amount?

When estimating minimum coverage benefits, be sure to allow additional funds that will help offset potential inflation. A coverage dollar today may not be worth the same dollar ten years from now. Allow a differential.

Step 3: Policy Duration Generally, the younger the buyer, the lower the premiums for lesser coverage. However, if a buyer opts for $100,000 of term life coverage with a term period to maturity of only ten years, premiums will be higher than if the term ran for twenty years,

Whole life insurance policies grant larger benefit amounts later in life, because as the policy ages, more of the premium dollar matures or becomes vested, much like a 401k fund. Whole life policies continue until the insured reaches a predetermined age, but premiums often increase, too. Ensure there is reasonable belief that escalating premiums still fit the buyer’s budget.

Determine for how long the coverage will be needed. Larger benefit amounts are generally more affordable if policies are purchase earlier in life.

Step 4: Policy Information Once the buyer determines the type of life insurance policy best fits outlined goals, has as a coverage amount calculated, and has a premium amount comfortably budgeted, it’s time to get viable policy information.

Because insurance companies pay their agents on primarily a commission basis, expect to receive mail, email, and even phone calls from local agents when you request information about life insurance policies. Take the opportunity to ask specific questions about the policy being evaluated. The prospective buyer should always write down any questions that come to mind and note the answers when given.

The more detailed the information in hand, the better the decision will eventually be; making the wrong decision not only can be devastating financially but also can present a quagmire of conditions to cancel the policy with minimal or no penalty.

General Policy Items to Consider:

All life insurance policies have restrictions, limitations, and allowances. Not all pertain to specific conditions or stipulations. A few generally common areas are noted below:

1. Delayed Benefits: Some life insurance policies require full premium payment with either limited or totally delayed benefit payment. If present, what are the time periods and benefit limitations? Do they gradually disappear or is the policy fully payable after a set time period?
2. Coverage Limitations: Are there causes of death that prevent any portion of benefits to be paid or deny payment outright?
3. Beneficiary Eligibility: Does the policy allow minor-aged dependents or charity organizations, for example, as primary beneficiaries over a spouse or an ex-spouse? Is a signature of release required first? Can the buyer obtain that signature if it’s needed?
4. Termination Penalties: What penalties exist, if any, for early policy termination? Might tax issues arise? Will there be reduced payment of any vested balance?
5. Policy Loans: Does the policy allow loans against the coverage amount? What are the conditions involved: tax, repayment, interest, or other? Must they be repaid or are unpaid amounts simply deducted from the total benefit? Is interested deducted on those unpaid amounts, further reducing the maximum benefit amount?
6. Premium Payment: If unable to pay the monthly premium, are premium amounts debited against the benefit amount? Are those automatic allotments against the policy considered policy loans? Does the policy allow additional payments that are higher than the minimum required? How is that money credited against the policy—is it inserted in an escrow type of fund against future premiums or is it included in the vested portion of the policy?
7. Proof of Death: An extreme scenario, certainly, but what benefit payment roadblocks are erected if the insured is missing for an extended time period? Does the policy pay limited benefits until the seven-year period expires and the insured’s status changes to presumed dead? Does the policy hold all benefits in that extreme example?
8. Other Benefit Payment Delays: Under what other conditions does the life insurance company justify withholding partial or full benefit payment? Are additional preparations in place to legally allow payment to another party?

Step 5: Coverage Limitations

Specific Limitations and Restrictions:

Some life insurance policies insure everyone, adjusting premiums, coverage limitations, and benefit caps by the individual’s circumstances. Some insurance companies issue policies to only certain age groups or always deny coverage for certain medical conditions. Some of those limitations and restrictions include:

1. Age: While almost any insurance company will accept policies for senior citizens, many prospective purchasers find the high premiums unaffordable or the coverage and benefits too limited or delayed. Some life insurance policies cover only minor children or students up to a certain age, so long as they are fulltime students.
2. AIDS: While there is no medically recognized cure for this heartbreaking condition, those few life insurance companies that accept people diagnosed with AIDS often charge exorbitant fees and elongated coverage waiting periods.
3. Asthma: While the condition does not automatically cause a policy to be declined, the asthma sufferer will often find premiums are higher than for those who don’t suffer from the condition. Like other medical conditions, the more severe the asthma, the higher the premiums will be and/or the greater the coverage restrictions may be. Asthma sufferers should have readily available treatment history and responsiveness and the peak flow meter readings in addition to results of pulmonary function tests a physician usually performs annually. The insurance company is entitled to complete medical history related to the disease or a similar disease and may consider family history as well. Insurance companies may use the number, types, and dosages of medication to determine initial eligibility, but they often request and require additional medical information.
4. Other Medical Conditions: Current or past heart conditions, cancer, and lung or blood conditions can vastly reduce or completely block acceptance of a standard life insurance policy. Be prepared to supply all required medical information and treatment history. Ensure medical providers have a limited authorization to send applicable records and treatment histories to the insurance company, delineating the types of conditions for which records can be sent.

Please note: Insurance companies are not automatically entitled to “blanket medical history” information simply because a prospective buyer completes a coverage application. They are not entitled to complete medical histories when evaluating policy qualification based on a specific condition. But they are entitled to complete treatment history records pertaining to a possibly disqualifying medical condition. The prospective buyer should ensure medical providers send only the condition-related records and not the entire medical file if other conditions or injuries are noted.

Possible Ways to Overcome Uninsurable Status:

Many insurance companies mark applicants as uninsurable by their standards, but all hope is not automatically lost. Given certain circumstances, the potential insured may still find coverage. 

While none of the below are certain options, considering alternative modes of gaining coverage may gain a degree of peace of mind:

1. Employer Life Insurance Coverage Increases: Some employers offer life insurance with optional coverage levels. Higher premiums boost coverage levels.
2. Policy Type Transfer: Some group life insurance policies allow transfer of category from a group policy to individual policy, which maintains coverage as long as the premiums allow. The negative side to transferring a life insurance policy is that coverage can never be increased. If the maximum benefit was $100,000 as a group policy, the individual policy has a coverage maximum of $100,000. Please remember that a policy transfer is not COBRA, which pertains to no longer being employed by the plan sponsor and has a limited coverage time. Transferring the policy from group to individual status while employed makes the transferred policy a permanent one, so long as requirements are met, and premiums are paid.
3. Survivorship Life Insurance Policy: Because this type of policy doesn’t pay until all insured people die, insurance companies often accept a policy insuring those who are otherwise difficult to insure.
4. Guaranteed Issue Policy: Requiring no medical exam, a policy of this type assures acceptance with acceptable answers to a few medical questions. Higher premiums often trade for the convenience of a guaranteed issue policy which also commonly has limited benefits for at least two years and often tiered benefits for up to ten years. These policies also commonly offer low maximum benefits.
5. Affinity Plan Policy: Occasionally, a professional organization or group, such as the Chamber of Commerce or the Bar Association, may offer simplified issue or guaranteed issue policy coverage to its members; occasionally, if the number of respondents from that group are sufficient, premiums may be slightly lower than if the individual purchased a similar policy alone.
6. Simplified Issue Policy: Very similar to a guaranteed issue policy, only a few medical questions need an answer. Premiums are generally low, but so are benefit maximums. Those may be countered, however, by tiered benefits and premiums.
7. Spouse-related Riders: Similar in concept to a survivorship policy, this policy rider grants coverage to an uninsurable spouse, and benefits are paid only after both insureds are dead. Family coverage premiums are higher than usual for this addition, however.
8. Credit Life Insurance: Credit life policies cover major transactions purchased on credit, such as a house. A credit life insurance policy would pay the mortgage if the insured passed on, protecting the home of the insured’s loved ones.
9. Guaranteed Purchase Options: While not specifically geared for the “uninsurable,” a GPO rider on a life insurance policy purchased on the life of a child allows unconditional continuation and benefit escalation by the insured—the child when an adult—regardless of medical condition, so long as the premiums are paid. For example, the parents purchase a life insurance policy insuring their newborn child. They pay the premiums on this policy through the life of the child until he or she graduates from college. The offspring assumes responsibility for premiums and determines that he or she wants additional coverage. Because the same policy is in force, regardless of the now-adult’s medical condition, increases in coverage must be honored by the insurance company. The only requirements are that the policy must include the option when first purchased, and the premiums are paid.

Step 6: Comparing Policies Once the buyer solidly identifies the reason for purchase, has chosen the type of life insurance, and has comprehensive information on applicable policies, it’s time to conduct a side-by-side investigation.

1. Coverage Amounts: Which policies grant the level of coverage desired?
2. Premiums: Which of those policies have premiums that are affordable now and later? If the premiums adjust, contact a reputable agent and get a payment table. Never purchase a policy without all premiums known in advance. If possible, double-check the information with another source.
3. Limitations: Of those with affordable premiums, which have ambiguous or unacceptable limitations and restrictions?
4. Premium Frequency: Do any of the remaining policies charge less or more for non-monthly installments? Some policies charge more for quarterly, semi-annual, or annual premium payments; some charge less. Are the payments allowed to be manual or are they automatically deducted from bank accounts or to credit cards? Is there a fee for automatic payments?
5. Beneficiaries: Are you able to list the beneficiary or beneficiaries you wish to? Is additional documentation or other paperwork required in order to do that?
6. Cancellation Clause: Is there a way out of the policy, either by law or clause, that allows quick cancellation of the policy if a mistake was made? What are the time limits for a no-penalty cancellation? What might be incurred after that deadline?
7. Travel Restrictions: Does the policy have limitations or restrictions on areas or modes of travel? Do those restrictions apply or might they in the future?
8. Other: What other questions haven’t been answered yet? What hesitations exist? Above all, do not purchase a life insurance policy that does not fully or extremely closely meet needs and desires and that is not fully understood. Do not allow personality to override prudence and common sense.

Step 7: Evaluating the Company Once a preferred policy is identified, dig a little deeper into the insurance company that underwrites the policy. Having a household name doesn’t guarantee financial stability. Purchasing a policy from a well-known insurance company and intending that policy to protect loved ones isn’t worth the paper the policy’s written on if the company has a poor financial platform.

The insurance companies generally don’t make their money based on just premium dollars paid on policies. They earn their money by investing your premiums and hope for a higher financial return, dollar for dollar, than what insureds pay.

For instance, Insurance Giant X receives $50 per month on a life insurance policy from 100 people, totaling $5000 per month. They invest that $5000 and hope that they will receive via dividends $5500, including the $5000 invested. It’s from that hoped-for $5500 that they pay benefits.

Financial statements from the current and past years, stock price history, and other financial tools and projects are available for the finding and the asking. If asked, the insurance companies are required to present full disclosure; do not allow glossing over information or avoidance of the issue. The financial stability of one’s family is at stake.

Step 8: Purchasing the Policy The hard part is finished. The buyer has every piece of information, projection, and budget entry required. He or she has narrowed down the available choices and has identified the correct policy with the right coverage, limitations, and duration for the right price. The underwriter is financially stable.

Now it’s time to actually purchase the policy:

1. Complete the Application. Leave no entry blank; if no information pertains, mark with “NA” or “N/A” for “Not Applicable.” Ensure writing is legible and dark. If mailing a paper form, make a legible copy for yourself, including all attachments. Include a copy of the addressed envelope, as well. While it’s not necessary to copy each envelope thereafter, copying the first one and maintaining all copies in a dedicated folder is a wise precaution. If the application is electronic, download and print both the blank application and the completed application.
   
   Be Honest: Eventually, insurance companies discover incongruities, contractions, and obfuscations. Many of these can be cause for immediate policy termination and loss of possible vested money.
2. Make the Payment: If sending a personal check, make a copy of the check; if paid online, keep both an electronic copy of the payment and a printed version for inclusion in the hard copy file. Some people take one additional step and store important documents online by either emailing to oneself the electronic documents to a free, non-ISP email address or a storage site, such as Google Documents, is a fail-safe measure that makes the documents retrievable from any Internet-connected computer.
3. Save Receipts: If the policy is purchased or premiums paid online, keep both electronic and hardcopy receipts. Printing the receipt to a paper document supplements the physical file, and printing to an electronic file and possibly storing online allows access if needed from anywhere in the world. If purchased or paid via personal check, keeping a copy on file in addition to entering the check information in a check registry presents the same fail-safe protection in case the insurance company doesn’t receive the payment.
4. Additional note regarding online payments: If paid via the Internet, ensure the purchase site declares your payment information is via a secure site and that all your information is protected by their privacy policy. Because data miners will glean that the buyer used a credit card and for what, expect unsolicited emails and possibly mailed correspondence regarding insurance plans. But make sure the insurance company site, itself, notes payment security and privacy.

Step 9: Updating Information Should any qualifying condition change, such as a disease entering a confirmed remission stage or even quitting smoking, do not hesitate to contact the insurance company and provide full medical documentation regarding the improvement.

Unfortunately, unfavorable changes may occur as well, and your life insurance policy conditions may be adjusted as well. If the insurance company requests supplemental insurance, do not hesitate to provide it, so long as it pertains to the reported condition.

The positive side to updating medical history reflected on a life insurance policy is possible reduced premiums and review of restrictions, which may lead to relaxed conditions in the policy. The negative side, of course, is the possibility of increased premiums or reduced benefits.

Ensure changes to beneficiaries, insured people, addresses, and other contact information is kept current.

Summary Choices abound for purchasing life insurance. Prospective buyers may feel overwhelmed by all the policy types and feel overloaded when trying to make a decision. Breaking the whole process into to small, bite-sized steps alleviates much of that anxiety, enabling not only an easier choice but a fully informed and satisfying one.

Eating disorders are known to shorten life expectancy, as well as potentially negatively affect your life insurance premium. A study recently posted in the Journal of Occupational and Environmental Medicine showed that persons who suffered from an overeating disorder, and in turn obesity, costs businesses over $73 billion a year. These persons suffer from high blood pressure problems, heart disease, diabetes, and are more susceptible to illnesses such as the common cold or flu. According to a survey done by Dr. Whitlock of ” Lancet” magazine, “Due to extra weight putting a strain on the heart and internal organs, morbid obesity, or those with a BMI, or Body Mass Index, of above 30, are projected to shorten their life expectancy by 10 years.” Obesity, after smoking is the second leading cause of early preventable death.

For those suffering from anorexia, doctors in Canada have done a study showing that, “women who suffer from anorexia reduce their lifespan by approximately 25 years.” Persons suffering from anorexia generally suffer side effects such as low blood pressure, anemia, osteoporosis and internal organ failure. The kidneys and the liver can be severely damaged in someone suffering from anorexia and can shut down.

Bulimia, puts a large strain on the body with the binge and purge cycles. Bulimia users may use laxatives, enemas, and vomiting to rid the body of food. Unlike anorexia where people show a large amount of weight loss, or obesity, where sufferers show a large weight gain, a person who suffers from bulimia may only show a weight fluctuation of 10-15 pounds. People suffering from bulimia may have heart attacks or stroked as the fluid and electrolyte balances within their bodies are thrown out of balance during the purge cycle. Constant vomiting may also eat away at the teeth and the lining of the throat. Even after “recovery”, medical doctors from the NIMH, the National Institute for Mental Health, believe that bulimia shortens life expectancy by 5-7 years.

While women are the primary sufferers of anorexia and bulimia, men may be the primary sufferers of morbid obesity. Each of these disorders, even after treatment, can still lower life expectancy due to the stress put on the body, heart, and other internal organs. Families and friends who suspect loved ones of suffering from an eating disorder should contact a family physician and also their local mental health clinic.

Life insurance describes a contract between the insurance company and the owner of the policy. The policy pre-determines a certain amount of money that will be given to designated beneficiaries. The money will be awarded in the event of the policy owner’s death from natural causes, untimely death, terminal illness or other illness. The insurance company will pay out the amount to the beneficiaries either in intervals or in a “lump sum.” There are several types of life insurance policies available: Term Life Policies and Permanent Life Policies. Life insurance premiums will be affected by the age of the policy holder, pre-existing health conditions and other factors. Most people are unaware that there are over 9 types of life insurance available to them, and here they are in no particular order:

Term Life Policies

Term life insurance policies are only valid for a certain period of time. The beneficiaries will receive payment if the policy owner dies within the policy period. Term life is more affordable than permanent life insurance. The premiums will vary based upon the length of the term and the amount of coverage purchased. Most individuals purchase this type of insurance. A term life policy may be extended; however, the premiums increase because the policy is older. Term policies have no cash value. Term life insurance provides protection for term lengths or five, 10, 15, 20 or 30 years. Many individuals purchase term life insurance for its affordability and for its flexibility in the short term. 

Permanent Life Insurance Policies

Permanent life insurance provides protection for beneficiaries after the policy holder dies. Since protection lasts as long as the individual is making a payment, the policy holder should not be concerned about the policy expiring or ending at a specified period of time. This type of policy offers the most security for your beneficiaries. Many of the permanent life insurance policies also feature an investment option. Policy holders may withdraw money invested in the policy for various reasons, such as college education or for other unforeseen expenses. The money invested in these types of policies is tax deferred. Policy holders will not be responsible for taxes unless money is withdrawn from the policy. 

Disadvantages to Permanent Life Insurance

Permanent life insurance is more expensive than term life insurance. Each insured person must examine their financial situation to determine if permanent life insurance will suit their budget. Permanent life insurance will also involve a health history inquiry, medical examination and other forms of historical documentation. Policy holders should be aware of this before investing in life insurance. Any loans that are taken out during the duration of the policy will be owed at the time of the policy holder’s death. If the loans are not repaid, this will reduce the amount the beneficiary will receive. Each disadvantage should be considered prior to investing in a permanent life insurance policy. 

Types of Permanent Life Insurance

Whole Life Insurance

Whole life possesses a policy premium that remains the same for the entire policy. The premium cost calculated may be higher in the beginning of the policy, but may decrease over time as the policy and the policy holder ages. Policy holders typically pay more initially. Higher payments will lower the payments for the policy holder in the event of an income decrease during retirement. 

Whole life insurance carries a cash value that is guaranteed by the insuring company. The death benefits are guaranteed and typically, known at the time of the policy holder’s death. Policy holders may add riders to increase the death benefit. The riders will require an additional premium. Policy dividends may also be used to increase the value of the policy. These dividends may not be guaranteed. 

At any time during a whole life policy, the policy holder may determine the cash value of the insurance policy. If a loan is taken out against the policy, pay back is optional. Neglecting to pay the loan back will only decrease the value of the policy. Whole life insurance possesses a small rate of return when compared to other investments, such as annuities and other conservative investment vehicles. Some individuals may benefit from using other investment tools rather than whole life insurance. 

Universal Life

Universal life is a more flexible type of permanent life insurance. This type of insurance allows the individual to make changes to the life insurance policy at any time. The cash in a universal life insurance premium will accumulate tax deferred throughout the duration of the policy. Policy holders may increase, decrease or skip premium payments. However, policy holders must meet the target payment over a given period. The policy may also increase their death benefit or decrease it as necessary. The cash value of a universal policy is not guaranteed. A universal policy is more of an investment tool. The cash value will vary depending on the performance of the investments. 

Variable Life

Another type of permanent life insurance is variable life insurance. This type of insurance provides coverage until the policy holder dies or the amount is withdrawn from the account. Variable life insurance allows the policy holder to select where their premium contributions will be invested. A variety of investment options are offered by insurance companies. Individuals may be as aggressive or conservative with their variable insurance premium investments as they desire. Policy holders may select from a portfolio of mutual funds. Mutual funds include stocks, bonds and money market funds. 

Premiums for variable life insurance policies are fixed. The death benefit will also never fall below a predetermined level. This will ensure that beneficiaries will always receive the amount that was initially established in the policy. While the prospect of gaining more profit is greater with a variable life insurance policy, there is also a great chance that the policy may lose cash value as well. This type of investment is not recommended for investors who are not experienced. There are also more fees and charges associated with this type of life insurance policy. 

If the face value of the policy falls too low, the insurance company may request that the policy holder pay more in premiums to prevent the policy from lapsing. Increased premium payments may not fit with a person’s budget. A diversified portfolio may decrease the likelihood that the entire value of the policy will decrease. Any losses will be offset with investments that perform well in the portfolio. 

Variable Universal Life

Variable universal life insurance is a combination between variable life insurance and universal life insurance. The policy holder has more control over the cash value of the policy with variable universal life insurance. Individuals who desire to have more control over the investment vehicles used in their life insurance policies will find that this type of policy offers more flexibility. The cash value of the death benefit depends on the performance of the investments. Stocks, bonds and money market funds are often used as investment vehicles for variable universal life insurance. 

Most insurance companies will guarantee a minimum death pay regardless of how poorly investments perform. This gives investors some peace of mind that their beneficiary will receive an adequate payout after their death. The universal life insurance policy allows policy holders to make changes to the premium amounts and to the payout after death. The variable life insurance policies are also tax deferred. Policy holders have the option to borrow against cash value. 

Survivorship Life Insurance

This particular type of life insurance policy allows two spouses to hold a policy together. The beneficiaries will not be paid, however, until the second spouse on the policy dies. The premiums on this type of policy are typically higher because two people are covered on one policy. This policy is designed to protect the heirs of the survivorship life insurance from estate taxes. Most individuals who require this type of policy have a net worth over $2 million. This type of policy will preserve the value of an estate after the policy holders pass away. 

Before securing this type of survivorship insurance, potential policy holders should consult with legal and tax professionals about their particular estate. These individuals may advise a person of the best life insurance to purchase for protection of their estate. Because this life insurance policy is designed for the affluent, premiums will tend to be higher. 

Policy holders should be aware that federal laws permit an estate to be passed on to a spouse tax free. Taxes will be assessed if passed on to the heirs. Survivorship insurance will provide funds needed to pay estate taxes. This will eliminate the need for heirs to liquidate the estate. In some instances, estate taxes can be as much as 55%. The amount varies depending upon the size of the estate. Survivorship insurance is essential for heirs who may not have the means to pay those types of taxes. 

Joint Life Insurance

Joint life insurance will pay out when the first spouse dies. This life insurance policy is designed to protect the surviving spouse financially. Joint life insurance is less expensive than survivorship life insurance. Survivorship protects the estate when passed on to the heirs. Joint life insurance covers the spouse. Joint life insurance covers only one person; however, both spouses will be present on the policy to designate who the funds will go to in the event the other dies. The policy premiums will differ based upon the policy holder’s ages, their health and the coverage requested. The policy may either be present as a whole life coverage or term life coverage. If one spouse is healthy and the other is not, the policy will be easier to underwrite. 

Convertible Life Insurance

Convertible life insurance policies are a nice compromise between term life insurance and permanent life insurance. Convertible life insurance offers the affordability of term life insurance with the option of converting the policy to a permanent life insurance policy. This policy will prevent policy holders from losing money if their policy period lapses. Purchasers of this type of policy will enjoy low premiums until they are financially able to purchase a permanent policy. 

Purchasers of this policy are not required to have a medical exam at the time of conversion. As long as the policy has not lapsed, the policy holder may automatically convert at the time they feel most comfortable. Convertible life insurance offers the best of both policies in one policy. Higher premiums will be assessed, when the permanent policy goes into effect. All potential convertible policy holders should verify the option to convert at any time. 

Key Man Life Insurance

Key Man life insurance protects an individual’s business after a key owner passes away. Small businesses may have one or two members that the business is dependent upon. These people have specific knowledge of the business that is irreplaceable. They may also have key client relationships or resources that are irreplaceable. If one of the business owner’s dies suddenly, then the money from the policy may be used to keep the company from dissolving. This insurance will also protect employees’ jobs, if there is a sudden death. Small businesses will give their employees time to find a job in the event the business will not survive without the business owners. 

Key Man life insurance may also protect the company against company debts, loans or other financial problems after the business owner dies. The debts will be paid soon after the key owner passes away. This is a cost effective means of securing a business. 

Summary

There are many other life insurance types that will help individuals ensure that their survivors are cared for after their death. Each individual, regardless of income, is eligible for life insurance. Simply select the policy that best suits the budget of the policy holder. 

Research the various insurance companies. Ask copious questions to determine the terms of the policy. Ensure that the policies meet the needs of the survivors in the event of the policy holder’s death. Research will provide confidence that there will be no surprises when the policy holder passes away.

There are many ways to save money on auto insurance. The best thing an auto insurance shopper can do is compare rates. There are websites available where you can input your personal information, and the level of coverage you desire and you will be given multiple quotes from various insurance agencies. If you feel you are not given enough quotes, you can access quotes directly from the insurer.

Another easy way to save money on your insurance is to decrease your deductible. You can normally select a deductible between $0 and $2,000. Normally, your monthly insurance premium will decrease by $10 for every $500 you increase your deductible. It is suggested that you keep the dollar amount of your deductible in a savings account in the off chance that you happen to get into an accident and have to pay your deductible.

Another way to save on insurance is to lower your level of coverage. If you have an older, inexpensive car and no auto loan, you could probably do without coverage on your car. Auto insurance laws only require you to cover the other persons car, not your own. You can also lower the dollar amount of coverage you have, and remove other perks such as rental car reimbursement. Getting low levels of coverage can save you over $50 per month.

Many insurance companies also offer discounts for those who use the same insurer for multiple products. Using the same insurance company for auto and homeowners insurance could save you a couple hundred dollars every 6 months.

There are many insurance savings tips drivers can use to save money on their needed automobile insurance. When shopping for auto insurance, drivers should either obtain quotes from different insurance companies or hire an insurance agent. The insurance agent will obtain the lowest premiums possible. Once a driver has chosen an insurance company, he should make sure he has received all the discounts available. Discounts are calculated based upon the driver’s age, location and other factors.

Speeding tickets also affect the cost of insurance premiums. The more speeding tickets a driver has the higher the insurance premium will be. If a driver receives a speeding ticket, he should attempt to fight it in court when he feels like it was given unfairly. One speeding ticket can increase a premium significantly and can remain on a driver’s record for years. Also, drivers should keep the number of claims file at a minimum. The more claims filed, the more insurance companies will feel the driver is high risk. They will increase the insurance to make up for the loss they feel they will encounter in future years. Avoiding speeding tickets and filing claims will save drivers money.

Drivers should make certain they have properly secured their vehicle. Secured vehicles will help them save on their auto insurance. They should make sure they have a properly installed car alarm to keep car thieves away. They should also make sure they have automatic safety belts to protect everyone inside when a bad accident occurs.

Life insurance isn’t something just for senior citizens or older people to buy. Life insurance is something that everyone should buy, no matter the age of the person. You need to make a life insurance policy part of your overall financial plan.

Funerals are very expensive. When you die someone has to pay the funeral home’s bill. Funerals are averaging about $6,000 when all costs are added up. Think about who will pay the bill for your funeral. If you are married, then your spouse will pay. If you live with your parents, then they will pay the expenses.

The younger you buy life insurance normally the lower the rate is. Think of it as a savings plan. You pay your monthly or quarterly bills to the insurance company. When the unfortunate time comes your beneficiary, or beneficiaries, will receive the money. They can use it to pay the funeral bills, or not.

Some people say that they can just put that money into a savings account to pay the funeral costs. However, the best plans very seldom work when it comes to saving money. That plan won’t work for most people.

Spend some time and check with a few of the major life insurance companies. Ask about their rates and let them explain to you why you need life insurance and which policy is the best for you.

A life insurance policy does not necessarily have to involve paying your funeral expenses. If is a nice way to remember someone. Who ever your beneficiary is, they will receive the money. Perhaps you would like to leave something to your aunt and your cousin. You can have the policy set up for whatever dollar amount you wish to be split between the two of them,

Maybe you would like to leave money to the humane society or the local homeless shelter. A life insurance policy can do that for you. You can work with the insurance company on all the details.

Life insurance is a product that anyone can and should buy. Make life insurance a part of your budget and plan accordingly. It is not the most pleasant item to discuss, but once you talk to a life insurance company agent, you will feel better about the subject of life insurance. Plan ahead, buy life insurance, and put your mind at ease

Descriptive title: Why you still need to buy a separate life insurance policy even if your employer provides Group Life Insurance coverage

The government has made it a requirement for companies to provide a number of benefits to all of their employees the moment that they are hired. One such benefit mandated is insurance coverage. Because of this, many employees actually do not see the need to purchase a separate individual life insurance policy. In reality, getting a separate life insurance policy is still important even if the company you work for is already providing you with group insurance coverage. Here is why:

Limited Coverage

One of the reasons why it is still important to buy your own life insurance policy even if your company is already covering you with group insurance is the limited coverage these group insurance policies provide. Keep in mind that most companies out there merely provide this because it is required by law. Because the lower the insurance coverage is, the lower the premiums will be, companies tend to go for lower insurance coverage. This means the policy may not necessarily be able to cover all of the expenses incurred at the time of your death, much less to provide your surviving family with funds to help them be able to begin their lives without you.

Few Benefits

Another reason why it is important to purchase a separate life insurance policy on top of your group life insurance coverage is that, apart from insuring your life, group life insurance provides very few – if any at all – benefits to you and your family. Individual life insurance policies provide you a load of benefits which you can avail of even while you are still alive. For instance, some individual life insurance policies provides you the ability to take out a partial withdrawal which is basically taking a certain portion of your total coverage prior to your death to help you and your family in times of financial crisis. Others also provide you the opportunity to be covered and invest in mutual funds, bonds or dividends.

Temporary

The group insurance policy that you currently have would only provide you coverage for as long as you stay with the company. In the event that you decide to change companies, or decide to finally retire, you lose all of the coverage provided to you by the group insurance policy. If you wait for this time before you go ahead and buy your own life insurance policy, you may be faced with extremely high premiums to pay the insurance company, or worse, not be eligible to apply for one.

If you have children or a spouse, you should consider buying life insurance to protect them. If you have been putting it off for a very long time, you should do something about it now. If you pass away, your loved ones will receive your death benefit. They can use the benefit to pay for funeral expenses and household expenses.

If you want to save money on life insurance, you should purchase a term life insurance policy. This kind of policy is affordable and it will save you money. You will have to select the coverage amounts and the term you want when you apply for coverage. Keep in mind that life insurance rates are affordable online, but every company charges a different rate. Therefore, you can always find a better deal if you shop around. You can visit life insurance providers online or contact them by phone in order to receive free quotes. It only takes a few minutes to obtain quotes online and fill out the applications, so it is worth it. Comparing rates online and obtaining quotes is the best way to find life insurance and it is completely free.

Whole life insurance is permanent life insurance coverage. This kind of policy will be active for your entire life unless you cancel it or stop paying your premiums. Whole life insurance coverage also builds cash value, and that money can be withdrawn later.

Keep in mind that your life insurance rate will depend on several factors. For example, if you smoke or have a dangerous occupation, you will pay more on your premiums. If you participate in risky sports or activities or if you have some health problems, you may have to face higher premiums. Life insurance premiums are usually lower for healthy and young people. Please note that some life insurance providers require that applicants take medical exams before they give you a policy. However, some life insurance companies offer no medical exam policies, so shop around if you don’t want to go in for a medical exam. Just make sure you answer the questions carefully and honestly when you apply for a life insurance policy. You should compare at least 10 life insurance providers before you sign up for coverage. If you shop around a lot, you will secure an inexpensive life insurance policy that suits your needs.