Thursday, January 10, 2008

Get Your Life Insurance Quote From A Specialist Broker

A specialist broker in life insurance can always save you money on your premiums and when considering taking out the insurance it should be the first place you go for your cover. Quotes do vary from provider to provider and getting as many quotes as possible will ensure that you have the best possible deal and lowest premiums for your life insurance.

The quotes that you get for your insurance will also depend on the type of insurance that you require and how much cover you require. Some policies will pay out a guaranteed sum providing you continue paying the premiums and this is the most expensive type of cover, while others are cheaper for the premiums but will cease and no payout is given if you are still alive after the policy ends.

If you want a policy that will pay out a guaranteed lump sum then you should consider taking whole of insurance, this is a policy that will, providing you carry on paying the premiums pay out a fixed sum of money when you die, however long that takes. This is however one of the dearest types but then of course the payout to your family is guaranteed upon your death.

The cheapest way of insuring your life and giving yourself and your family peace of mind is to take out term life insurance, this type of policy is one of the most popular but it doesn't pay out a guaranteed sum of money. You set the term of the policy in years and decide how much you want to insure your life for and pay the premiums during that term, if you die during the term of the policy then your family would get a lump sum payout, if you outlive the policy then it ends. If you have a mortgage then a decreasing term insurance policy might be suitable as this decrease along with your mortgage but still gives you adequate protection.

As quotes do vary, once you have determined which type of insurance you want then you need several quotes and the easiest way to do this is by letting a specialist life insurance and critical illness broker do the shopping around for you.

Senior Life Insurance Questions and Answers!

What is Senior Life Insurance?

Senior life insurance or final expense insurance is simply a smaller face value whole life insurance policy. Because of the permanent nature of whole life insurance, it is suitable for older people, and can often be applied for up to age 85.

The life insurance does not expire after a term, and so it can be in effect when people really need it, in their elder years! Besides, many term life insurance policies, or those that only last for a set amount of years, are not designed for older people.

Immediate Benefit vs. Guaranteed Issue Life Insurance

Most of the senior life insurance policies as few health questions, and accept most reasonably healthy people who do not have a terminal disease and are not in a nursing home. They will provide an immediate death benefit. So let's say you want to buy a $12,000 life insurance policy. As soon as the policy is in force, your beneficiaries would be entitled to that entire amount if you passed away.

They can use the money to help pay for your funeral, transport your body, settle debts, or anything they choose. For example, a senior citizen could leave the $12,000 to his or her child. That child may need $8,000 to pay for funeral expenses, and be able to keep $4,000 as a legacy from their parent! The money from a life insurance policy is usually tax free.

However a Guaranteed or Graded Benefit Life Insurance policy may be suggested for a senior with a serious disease, or for one who is in a nursing home. In this case, the policy will have a waiting period. If the person survives the waiting period, they will be able to leave the entire face value to their beneficiary. If not, their beneficiary will usually get the sum of the premiums already paid plus an pre-determined interest rate.

For those who cannot qualify for immediate life insurance, a guaranteed life insurance policy looks like a no-lose deal. However, if a person can qualify for an immediate benefit policy, they should choose it because the rates will be cheaper and their beneficiary can get the entire amount right away if the person passes away.

Why Buy Senior Life Insurance?

Funerals are expensive, often costing from $7,500 to $10,000 and more. A senior life policy is an affordable way to plan for the expense. Sometimes the children of the older person will offer to pay for it because they know they will have to make final arrangements. Instead of having to worry where they will find $10,000 when they are already experiencing a sad time in their life, they can feel secure, knowing that money will not be a problem.

I cannot give you an exact price quote, but many seniors can find a plan for $50 to $100 a month. Keep in mind that these are also cash value policies. When they have built up cash value, they can also be borrowed against. Some senior life policies can even be paid up after a time. A healthy retired person could buy a very affordable final expense plan at 65, pay it up after 10 years, and know that they never have to worry about it again.

Life Insurance - The Next Great Step

My article written here does not tell you whether you should go in for Life Insurance Policies but it features more on the aspect of what policies provide you and what are the prerequisites for taking up a policy. Our emphasis will also be on long term life insurance plans. But before we discuss anything further about policies let us first understand the meaning of the term "Insurance". Y

You might think why does he want to tell us the meaning of the term Insurance? We all know that. But for me this article aims to educate those people who may not know what Insurance and Life insurance is all about. Insurance is an agreement between two parties "insurer" and "insured". It is a contractual agreement by the insurer and the insured where the insurer undertakes in exchange for a fixed sum called premiums; to pay the other party called insured a fixed amount of money on the occurrence of a certain event. A loss arising out shall be paid from the premium money collected from the insuring public and the insurance company acts as trustees for the amount collected. But why should you take up insurance and why should you spend money on buying the policy. Apart from Tax benefits that it provides it also safeguards your loved ones in the event of any unforeseen happenings. Certain Insurance contracts are also made compulsory by legislation.

For example:-
· Motor Vehicles Act 1988, stipulates that a person driving a vehicle in a public place should hold a valid insurance policy covering " Act" risks.

· Another example of compulsory insurance pertains to the Environmental Protection Act, wherein a person using or carrying hazardous substances (as defined in the Act) must hold a valid public liability (Act) policy.
You must have seen the famous LIC (Life Insurance Company of India) ad on the television where a character called Mrs. Sharma is seen crying in front of the photograph of Late. Mr. Sharma after their daughters wedding. There is a voice over which says that "Today all your work has been done" but she says that all the real work was done by them when he had purchased the life insurance policy from a reputed Life Insurance Company.

This tells us how life insurance policies have helped in securing the future for all our loved ones. It is also shown to be an act of responsibility and that every individual should do it in order to secure future. With the advent of life insurance came other types of insurance and endowment policies such as child endowment and pension plans for the aged. The tax benefits that these policies provide are as follows.

Tax Relief:

1. Under Section 88 of Income Tax Act, a portion of premiums paid for life insurance policies are deducted from tax liability. Similarly, exemption is available for Health Insurance Policy premiums.

2. Money paid as claim including Bonus under a life policy is exempted from payment of Income Tax.

Encourages Savings:

An insurance scheme encourages thrift among individuals. It inculcates the habit of saving compulsorily, unlike other saving instruments, wherein the saved money can be easily withdrawn.
The beneficiaries to an insurance claim amount are protected from the claims of creditors by affecting a valid assignment.

For a policy taken under the MWP Act 1874, (Married Women's Property Act), a trust is created for wife and children as beneficiaries.

Life Policies are accepted as a security for loan. They can also be surrendered for meeting unexpected emergencies.

So frankly speaking there is no alternative to insurance. With so many benefits in hand I believe that everyone should have one insurance policy because they say "You may not know what the future has in store for you". Now the question arises from where do you get an insurance policy? There are two ways for this, one is either you approach the company directly or secondly you approach an Insurance agent who will take all the effort of filling in the form and will charge commission on the total sum assured. The commission charges varies depending upon the policy and the number of years the premium is paid. Typically the scenario is this as taken from Wikipedia + 35 - 40% for 1st year premium if the premium paying term is more than 20 years+ 25 - 30% for 1st year premium if the premium paying term is more than 15 years+ 10 - 15% for 1st year premium if the premium paying term is less than 10 years+ 7.5% - yr 2 and 3rd year and 5% - thereafter for all premium paying terms.

In case of Mutual fund related - Unit linked policies it varies from 1.5% to 60% on the premium paid.
Agency commission for retail pension policies:

+ 7.5% for 1st year premium and 2.5% thereafter
Maximum broker commission - 30%

Referral fees to banks - Max 55% for regular premium and 10% for single premium. However in any case this fee cannot be more than the agency commission as filed under the product.
But the above structure may change depending upon the market you are into. In India the agent's commission may differ.

Is Getting Life Insurance Really Necessary?

Are you one of those people who think that life insurance is just another extra expense that's not really necessary? We could always find something else to do with those funds, and the truth is until we have a family of our own and start to accumulate some assets, we really don't give it much thought at all. Just like homeowner's and auto insurance which provides us with extra confidence that we would be covered if something were to happen, life insurance is another policy. We want our loved ones to be covered financially in case we should die. So they can afford to take care of things such as burial or cremation at least.

Since we are living in the age of credit, we tend to carry a good amount of debt through our working years. Most of us have mortgage payments, car payments, credit cards, personal loans and student loans to name a few. Many companies offer their employees life insurance coverage of some sort that could be purchased at a reduced rate. Depending on your specific situation, it may be a small amount or maybe twice your salary. There are many that choose to buy from their friendly neighborhood life insurance agent for added coverage.

Premiums are based on the type of policy and the age of the person that wants the coverage. I always get offers in the mail offering reduced coverage if I were to act right away. Term and Whole life insurance, what is the difference between the two. Term policy is just what it sound s like you are purchasing an amount for a specific amount of time. Usually twenty years the premiums stay the same and don't have any cash value. A whole life insurance policies on the other hand does build cash values and can be borrowed against.

Personally, I think life insurance is a splendid idea, because you don't want to leave your family with all the expenses. Many companies only specialize in that alone. And local insurance agents can help you better choose your policy. Remember, the older you get the more it costs to get insured so it would be smart to do it while you are still young and get it over with.

Monday, December 24, 2007

Life Insurance UK, Be Protected Against Disaster

If hoping for the best and preparing for the worst holds good in present day scenario then buying life insurance policies make real sense. Considering the uncertainties life is beset with, one can never be sure of his future. At anytime anything may happen that would render him unable to work. One may even give up the ghost at an age that is generally not thought to be die-able.

The result may be that he will have to face hard times or his family will be left in the lurch. So, in order to make ones future secure or to keep the family out of financial disaster, buying life insure policies is a must. Being aware of the fact, many people buy insurance policies of various sorts. In the field of life insurance, UK has a quietly extended market. It has competent insurance agencies that can cater to the individual need of each and every insurance purchaser.

With the life of modern man getting complicated day by day, need for new types of life insurance policies is coming to the fore. With a view to meeting the need of this demand for innovative policies on life insurance, UK actuarial scientists are planning out fresh deals. The policies they are devising out mainly focus on the necessity of people have diverse health problems that may render them inactive suddenly.

Life insurance UK policies ensure that if a person become physically ill and he cannot go to work to earn his livelihood, he gets the benefit of the policies and receives money to survive decently. By the side of this superlative benefit, life insurance UK policies provide the insured with some other benefits. Among them, there is the tax benefit; with it one can save on tax by opting for some deductible amount. There are some other benefits as well in purchasing life insurance UK.

Sunday, December 16, 2007

6 Benefits Of Buying Life Insurance Leads Vs Cold Prospecting

The problems of cold prospecting are solved by using life insurance leads.

1. Spend time building cold prospect listsLife insurance leads save you the time of cultivating and building cold sales lists. Instead of time spent building the list, you could be talking to interested prospects

2. Spend time learning to prospect cold listsLife insurance leads save you the time of learning the skillset of talking to cold prospects. You can skip that and talk to people who want to purchase life insurance right away.

3. Waste time talking to people to figure out if they're interestedLife insurance leads save you the time of talking to a high percentage of people who are not interested in life insurance. Your time is valuable. You make less money per sale if you have to spend alot of time finding the right prospect.

4. Close a low percentage of cold prospectsLife insurance leads allow you to close a much higher percentage of prospects. If you've sold life insurance for any amount of time, you know that you've got to talk to many cold prospects before you get to the ones that are interested in buying. It's frustrating to hear the word "NO" that often.

5. Cold prospects take months to warm upLife insurance leads allow you to get in touch with prospects who are interested now. This saves you months of warming up cold prospects and taking them through the whole sales process.

6. It's a skill to prospect cold listsWorking life insurance leads save you the time to build "cold prospecting skills". These cold prospecting skills could take months or years to learn. Working with interested people by passes this process altogether.

There are many reasons for using life insurance leads that solve the issues of cold prospecting. The most important thing to remember is that buy using lead generated marketing, you save your time and your money and get better results.

Sunday, December 9, 2007

Life Insurance - From Facts To Cost Calculation And Policies

Life insurance is no place to skimp, especially with rates at historic lows. It began as a way of reducing the risk of traders, as early as 5000 BC in China and 4500 BC in Babylon. Life insurance dates only to ancient Rome, "burial clubs" covered the cost of members' funeral expenses and helped survivors monetarily

This is risk coverage in the possible event of death during a specified period of time, this type of insurance is often known as term life insurance or temporary life insurance. It's a contract between the policy owner and the insurer, where the insurer agrees to pay a sum of money upon the occurrence of the policy owner's death and its Policies are usually available on a single or joint life basis and can include additional cover for critical illnesses such as cancer.

Life insurance contracts are written on the basis of utmost good faith and also sometimes known as term insurance, because it covers you for a set term usually up to around 20 years you can set the term at say the number of years until your children ought to be financially independent. As a matter of fact it is priced based on your health, family history and goals. Life insurance companies are never required by law to underwrite or to provide coverage to anyone, with the exception of Civil Rights Act compliance requirements.

Insurance companies will take into account many factors when determining their monthly premiums and them alone determine insurability, and some people, for their own health or lifestyle reasons, are deemed uninsurable. The insurer (the life insurance company) calculates the policy prices with an intent to fund claims to be paid and administrative costs, and to make a profit. The cost of insurance is determined using mortality tables calculated by actuaries.

In cases where the policy owner is not the insured (also referred to as the cestui qui vit or CQV), insurance companies have sought to limit policy purchases to those with an "insurable interest" in the CQV. With no insurable interest requirement, the risk that a purchaser would murder the CQV for insurance proceeds would be great. Accidental death benefits can also be added to a standard life insurance policy as a rider.

Life insurance companies in the United States support the Medical Information Bureau(MIB), which is a clearinghouse of information on persons who have applied for life insurance with participating companies in the last seven years. Life insurance is one of the best things you can do to take care of your family financially in the event that one day you are not around to do so and enables you and your loved ones to enjoy peace of mind, as this type of policy will pay out a lump sum to your family in the event of your death (subject to terms and conditions).

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