Jun 07
adminArticles Aig, Bad Payer, Bet, Bookmaker, Cheap Life Insurance, Court Case, Death Certificate, Fellow Director, Financial Incentive, Homicide Unit, Horses, Indianapolis, Insurance Company, Insurance Coverage, Luck And Skill, Older Woman, Public Face, Succession Planning, Suspicion, Sympathies
This article draws on a big court case in Indianapolis with AIG disputing a life policy worth $15 million. Under normal circumstances, insurers pay out whenever they receive the death certificate. They may privately grumble the claim has come earlier than expected, but their public face will offer sympathies for the loss and pay. Indeed, if any company gets a reputation as a bad payer, their business is likely to dry up fast. With PR and marketing being everything in persuading people to part with their money, insurers usually pay out without comment. Why so different in this case? Well, the first issue is the circumstances of the death. This was a confident older woman aged 74 and she was found fully-clothed, drowned in her bath. The homicide unit has investigated and, despite the fact her family said she always preferred to take a shower, it has ruled her death accidental. No matter that the world might find the circumstances “suspicious”, particularly because the holder of the life policy admitted to being the last one to see her alive, there is no ongoing investigation. This has left the insurance company to dispute the payment.
Four years ago, this active lady was a director responsible for marketing. The company and fellow director insured her life for $15 million. This is perfectly proper as a part of succession planning. It gives the company the cash to buy out the shares and cover losses while a replacement key person is found. Except there is some suspicion the appointment of this lady as a director was only done to justify getting the insurance coverage. The rules are reasonably straightforward.
If you go to a race track, you can bet which horses will win and place. You pay and if your luck (and skill) give you the right result, the bookmaker pays. You could ask the bookmaker whether it is possible to bet on the day, week, month or year someone will die. If such a bet was accepted, you would have a direct financial incentive to arrange for this stranger’s death at the appropriate time. To insure someone’s life requires you have some direct interest in the individual, usually as a relative or someone upon whom you depend. That is why this company insured a marketing director and not an office cleaner. That position fits into the expectation of the insurer and justifies the big pay out.
There are about one hundred cases pending before the courts around the US alleging that investors have been insuring the lives of strangers. Because this is the equivalent of wagering or betting, the insurers are refusing to pay. In many of these cases, there are paper justifications for the policies, e.g. to insure a borrower. It will be very interesting to see how these cases are resolved. As for the ordinary case, you can confidently get life insurance quotes for any member of your family or other relatives. If someone acts as a carer, this will justify a higher pay-out to cover the cost of a replacement. But, if you are potentially insuring someone not related to you and not acting in some protective role towards you, disclose this fact to the life insurance company before confirming the policy. Only by complete honesty at the outset can you protect everyone’s interests in the long run.
Apr 23
adminArticles Breast Cancer, Cancer Diagnosis, Cancer Insurance, Cancer Patients, Cancer Stage, Cancer Treatment, Cheap Life Insurance, Colon Cancer, Denial Of Services, Insurance Companies, Insurance Provider, Medical Records, Prescription Labels, Prostate Cancer, Reclusion, Risk Insurance, Skin Cancer, Treatable Stages, Type Of Cancer, Types Of Cancer
It is estimated that over 1.4 million of patients are diagnosed with different types of cancer in the US each year, resulting in 560,000 deaths. But in case you manage to survive this risky condition without reclusion you will still have another big problem on your hands – insuring your life.
Insuring own life can be quite troublesome for cancer patients, but it doesn’t necessarily mean that it’s impossible. The likelihood of getting a good policy depends on a set of factors such as type of cancer, stage it was treated at and even the treatment plan itself. And there’s a direct relation between the rates you will have to pay and how it is likely for your cancer to be cured. For example, most insurance companies don’t regard skin cancer as a serious illness and having a history of it may even not influence your premiums at all.
Those patients who were diagnosed with breast or prostate cancer at treatable stages can still cover their lives, falling under “standard” rating if everything is ok. However, those with leukemia or colon cancer will be classified as “substandard” or “high substandard” (which means higher rates), or even get a denial of services. Patients with metastasized forms of cancer will almost always get a denial. This also applies to those who are still undergoing cancer treatment, regardless of type and stage.
How to get cheap life insurance if you have survived cancer?
In case you have survived cancer, you have more reasons to purchase life insurance. And here are a few tips on how to make it both easier and more feasible for you:
- Compile all of your medical records, reports and even prescription labels, especially if they have to do with cancer. Your insurance provider should have all the information on your condition, and will request it sooner all later. Helping your insurer with all the records means that your application process will be faster and you will be regarded as of a less risk. Insurance companies are very suspicious when clients do not wish to provide all the information and will usually charge more for their services. So don’t make such a mistake and cooperate for better life insurance rates.
- Cooperate with your doctor even if it is a routine check-up after the treatment. Your insurance provider will most likely wait for the results of the check up before signing you up. So the earlier you pay your doctor a visit the better.
- Get your quotes from various providers and the more the better. Insurance companies have various methods of calculating their risks and if one company classifies you as a very high risk, another one can view you as standard. Use this to your advantage and shop around.
- If you can get group insurance options from any organization you make part of it will be the best option for you. Group insurance always has better rates and more preferential approach from providers.
- Think about getting a “graded” policy (providing limited benefits) in case full death benefits are not allowed. Graded policy has special periods. If the insured person dies during such a period due to cancer condition then the policy will pay only a part of the death benefit. If the person dies after the period due to another condition, the policy will pay its entire face value.
Mar 11
adminArticles Cheap Insurance, Cheap Life Insurance, College Education, Financial Tools, Initial Stage, Insurance Companies, Insurance Conditions, Insurance Coverage, Insurance Experts, Insurance Solution, Investment Option, Life Coverage, Life Insurance Policies, Odds, Passing Of Time, Poli, Possibilities, Retirement Fund, S College, Stocks Bonds
Having your life insured, you are most likely to realize that your insurance coverage will be modified with the passing of time as you get older. When you are younger, most types of life coverage will be cheaper and won’t take much of your thoughts as the real need in such coverage comes later on in life. Still, no matter what age you are when you get your policy, at the first stage you might find that you are paying more than you have expected. Why is that so? Simply because it’s much smarter to pay more for the insurance at the initial stage and leave much less to be paid out as you move on.
And as you get older and your needs change, so will the policy covering your life. Insurance policies mature just like people, being paid off entirely and ready to be used when the moment comes. During this period some people may wish to sell their policies, as they are already paid for, and get the benefits without meeting insurance conditions. This is what insurance experts call “cashing in the policy”. Such a possibility is a great investment option as it allows you to finance things like your kid’s college education or your individual retirement fund when the need for such things becomes evident.
Fact is that a large part of life insurance policies available on the market today come with such adjustment possibilities. Insurance companies have become more flexible in terms of what you can do with your policy when you have paid it out in full. You can easily convert it to stocks, bonds or other financial tools you may find useful. Of course, when you choose to buy cheap life insurance solution the odds are that you won’t have many of such possibilities carried with it. You get what you pay for, and sometimes it really pays off to spend a bit more money.
The only thing that isn’t likely to change over the years is the amount of benefits your family will receive in case something happens to you. And the amount to be received will be the same with most policies, no matter for how long you have the current policy: several months or twenty years. This fact gives you a piece of mind in terms of coverage and return on investment, because you will be able to receive your benefits regardless of when you need them.
There are also certain types of policies that allow you to use the money from your policy in certain circumstances before you have paid out the policy in full or your insurance terms has passed. Such circumstances include serious illnesses, diseases or injuries that require long-term care or nursery, and leave you without a source of income for a prolonged period of time. These types of policies will certainly appeal to those who actually have increased risk of having such diseases or injuries due to their everyday activities.
But no matter what type of policy you choose to have for insuring your life, you have to remember that shopping around is really important in this market. There are many places you can get life insurance quotes and you should definitely do so, because sometimes the same policy with the same options and coverage amounts can cost quite differently between two companies. And why would you want to pay more?
Mar 11
adminArticles Annual Salary, Approximate Number, Buying Life Insurance, Cheap Life Insurance, Death Benefit, Insurance Experts, Insurance Option, Investment Options, Life Aspects, Life Insurance Coverage, Life Insurance Market, Life Insurance Options, Life Insurance Policies, Life Insurance Policy, Real Insurance, Strict Rules, Term Life Insurance, Term Policies, Whole Life Insurance, Whole Life Insurance Policies
There are so many life insurance options out there that one can spend a lot of time on just choosing what type of life insurance they need. But before you even start thinking about your options, decide whether you need life insurance at all. It’s the most important decision concerning this type of insurance, because if you don’t really need it then it’s better to go without it altogether. But if you feel the need to keep some of your life aspects covered then get ready for a deep investigation of the life insurance market.
How can one determine whether they need life insurance? It’s not that hard like you would imagine. This decision depends on your current responsibilities you bear. If you have dependents, a spouse, a mortgage loan or any other aspects that should be secured no matter what, you will definitely find it useful to buy life insurance coverage.
Once you have decided on buying life insurance, it’s time to determine how much coverage you actually need. It’s important, because the amount of coverage carried by your policy strongly affects the cost of your policy. There are no strict rules and methods of defining the amount of coverage as there are many factors involved (number of dependants, your income, your loans), however you can start with multiplying your annual salary by 5-10 to get an approximate number.
Deciding on the type of insurance you would like to buy is also a complex question that needs detailed analysis. Most insurance experts agree that younger people with no serious obligations and serious health risks should consider term life insurance. Term policies are a real cheap life insurance option, however they do not carry any additional cash value besides providing a death benefit. Whole life insurance policies offer cash value and additional investment options, but are much more expensive, especially in the first couple of years after signing them. So define your real insurance needs and choose the type of insurance that appeals to you the most.
When you have strictly defined what policy you want to get, don’t rush getting it from the very first insurance company you can find. Shop around and make sure to get plenty of insurance quotes from reputable companies licensed in your state. You will be surprised to learn that the very same insurance policies with the same coverage amounts can be priced quite differently between companies, and it’s a really great way to get cheap life insurance. Some insurance companies will offer discounts to customers that already have other types of insurance policies with them. So if you have homeowners or auto insurance with a company that also provides life coverage, it may be a good option for cheap life insurance in your case.
Remember that the more time you spend considering and comparing your options, the easier it will be for you to find a policy that you will really be happy with. Don’t rush with your decision and get the offer you really think will match with your needs without any compromise.
Mar 10
adminArticles 401k, Additional Security, Cheap Life Insurance, Compromise, Emotional Comfort, Ira, Irrevocable Life Insurance Trust, Leverage, Life Insurance Coverage, Life Insurance Policy, Life Insurance Trust, Mortgage Insurance, Mortgage Loan, Necessary Income, Peace Of Mind, Practical Application, Retirement Plan, Security Requirements, Special Circumstances, Two Different Ways
As we all know, life insurance is a very important and effective tool for minimizing risks and assuring your family with the necessary financial power in special circumstances. And of all things, life insurance plays a very important role in a family estate planning as it can affect it in two different ways.
Analyzing your life insurance needs
The most common connection between life insurance and estate planning is probably the actual need for it. Life insurance can assure your family with the necessary income replacement or other immediate costs that can affect mortgage loan payout or even some of your important assets. It also provides emotional comfort and peace of mind, giving you and your family the confidence and security no matter what. And things like that are really important these days.
Analyzing the practical application of your life insurance
The second aspect of life insurance in estate planning is often overlooked but nevertheless is as important as the first one. Life insurance can be used to provide additional asset leverage and security, which is especially useful if you have an unsettled mortgage loan on your property. For example, in cases when IRA or 401k isn’t needed to finance your retirement plan you can use them for investing into a life insurance policy. And if the policy belongs to an Irrevocable Life Insurance Trust, then the funds will be transferred to your family excluding income and estate taxes. In contrast, keeping your funds in the IRA or 401k won’t free you of the said taxes and this will take out much money from your funds when needed.
However, do not rush with purchasing cheap life insurance just to secure your estate planning. It’s a matter of combining your actual insurance needs with additional security requirements, rather than a simple tool to assure your family with a definite mortgage payout. Your life insurance needs should be met without any compromise in the first place, and then you have to think about estate planning application of your policy. Do not sacrifice really important benefits just to get an additional security with the policy as it will cost you too much money and give nothing in return.
If you want to get a policy that will carry all the necessary benefits to you and your family it’s always better to consult with an insurance advisor or expert first. It can be your insurance agent or an independent expert that will be able to outline your requirements and find a policy that will suit all of your needs. If you need cheap life insurance, there will be a certain set of options and benefits, and a whole another set of options and benefits for those who can manage to spend more money on life insurance coverage. It’s always more effective and much easier to plan and tailor a new insurance policy rather than changing a policy that you have already purchased. So if you need something special from the insurance company define your needs right away or you will have hard time adjusting the coverage to your needs afterwards.
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