No More Life Insurance

This afternoon I received a call from a 70 year old women. She was referred to me by a major life insurance carrier, after calling them to discuss her life insurance plan. She and her husband (74) bought two $50,000 term life insurance policies 15 years ago. As their 15 year policy anniversary approaches, they received a letter stating that if they wish to keep their policies beyond the term period, that their policy would automatically convert to a whole life insurance policy and their new premium would be $1400 a month (each). Without the life insurance policy, if either were to pass away, the other could no longer afford to stay in their small condo alone.

With a history of cancer and her husband with a recent triple by-pass surgery, they would now be considered uninsurable. Needless to say, the woman was very upset - not at her agent; but herself for spending over $30,000 in premiums and having nothing to show for it.

Term insurance is a "temporary problem solver". Most term policies do not result in a claim, but rather as a policy lapse due to non payment (as you get older it becomes too expensive to keep - for most people).

Life insurance is designed to provide "dollars". Term insurance is ideal for short term business notes, having extra coverage while the kids are approaching college years, alimony years or any other situation that is short lived. Life insurance is also used to pay off debt, a mortgage or most commonly used to replace a lost income. In these situations you need permanent coverage, whether that be whole life or universal life coverage. For more consumer friendly information about life insurance, disability income, medicare supplements or long term care, visit the insurance information institute at www.iii.org

For life insurance policy reviews, comparisons or quotes, click here

Do you have a Life Insurance policy you don't need?

The has been a growing popularity of "Life Settlements". A Life Settlement provides the insured the ability to sell his/her policy, rather than letting it lapse. The policy is usually sold for more than the cash value. The purchaser of the policy becomes the owner and pays all future premiums.

The usual Life Settlement case involves an older individual that no longer needs or can't afford to continue making payments on his life insurance policy. The average premium is greater than $35,000 annually and the death benefit is over $750,000. In many instances the original life insurance policy was bought for a business purpose and no longer needed - perhaps part of a "Buy-Sell Arrangement" or "Key Man Policy".

The process usually takes several months to complete and there is a settlement process that is followed. Your financial advisor or CPA has most likely been exposed to this market. For more information write to the author Vincent Kody.

How much is your life worth?

Imagine driving home on the interstate today and you are hit by a large beer truck. Your car rolls over into the ditch and you are pronounced dead. How much would you want your loved one’s to sue for? One hundred thousand, a million, twenty million?? During the trial, a team of legal experts will fight for you to make sure that your family is protected or made “whole”. Although they can not replace the emotional loss, they will attempt to make sure that your family can stay in their home, pay there bills and educate your children. This is known as replacing your “Human Life Value”, (HLV)

To determine what your HLV is, the following factors will be considered. Your age, income, education, family status and most importantly – your ability to earn a living. If you are younger, well educated and on your way up the corporate ladder, your potential future earnings are considered. If you are in the prime of your life, the calculation is very similar. Odds are that you will receive a very large settlement. But wait…

If you are so valuable, the defense attorney will likely look at your assets and liabilities, the size of your estate and any other holdings that may possibly reduce your families award settlement. Then the multi-million dollar question will be asked. If Mr. or Mrs. Smith was so valuable to his family, church and loved one’s - why did he/she insure their life for $100,000, $250,000 or 1 million dollars?

Life insurance is not a dirty word. Life insurance is an act of love. Most people agree that they need more insurance coverage; however they are not willing to pay the price to adequately protect their loved ones. It’s time to “get real”, examine your priorities and plan for the inevitable.

One last comment – Today there are several different life insurance options available to you. If it’s important to protect your family or business, there are always affordable insurance solutions ranging from Term, Universal, Whole Life or any combination in between. For more information or to receive an instant life insurance rate comparison visit - QuoteBroker