General Insurance

No Medical Exam Life Insurance

Life Insurance coverage designed for purchase without a medical exam offers advantages and disadvantage to the purchaser.  While many policies are more consumer friendly than in the past, here are some things to consider before you apply.
Life Insurance that can be purchased without a medical exam offers many benefits to a healthy individual that needs coverage quickly, and without the time and effort normally associated with fully underwritten policies.   These insurance carriers are looking for people who want the ease and anonymity of applying online or through the mail.  They also can offer immediate coverage.
 Although most policies underwritten in this way are for relatively low amounts, at least one carrier will consider up to $500,000 within certain age limits.
    
In addition, some carriers will accept credit cards, something most “regular” carriers do not accept for payment.  Again, it is ease of purchase that makes this a tempting offer.

However, many of these benefits come with a cost.  First and foremost, they are generally more expensive than fully underwritten coverage.  While not always the case, especially at younger ages and among some smokers, people at older ages should compare both types of coverage and decide what is most appropriate in their circumstances.
Whatever type of policy you decide upon, remember that all policies have a two year period of contestability.  This means any “material misrepresentation”   of your health, lifestyle or driving record can invalidate your policy and leave your beneficiaries without the coverage you intended.
If you cannot answer the qualification questions appropriately, this type of coverage is not for you.   It does not mean life insurance is unattainable, only that underwriting will be necessary in your situation.  This is when an agent is indispensable to get the best value.
Leonard Robbins has written additional articles that can help you choose the best policy for your current and future needs.  For more information on the subject of this article, go to http://www.smartlifeinsurance.com


To put it in plain speaking, fixed annuities are savings accounts for the insurance world. When you decide to invest in annuities with your insurance agent, you are agreeing to make payments over time which the agent, in turn, invests on your behalf. The fixed annuities you’ve invested in will gain interest over the years and can accumulate in cash value until the predetermined date you have selected to start receiving your pay-out.

There are five main types of fixed annuities. They are listed below with a brief introduction to each:
1. Single-year guarantee fixed annuities – With this type your insurer guarantees to pay you a specific interest rate for one year which they can raise or lower each year after until the contract ends with what are called “renewal rates.” There are a number of different kinds of renewal rates so ask your insurance agent which ones may apply to you, however in most cases the interest rate will consistently lower with each year.
2. Multi-year guarantee fixed annuities – Here your carrier guarantees a specific interest rate for multiple years which cannot be raised or lowered. With this kind you know exactly how much you’re investing and how much interest you’re accumulating so you can ballpark how much your pay off will be.
3. Market value-adjusted fixed annuities – Perhaps the most risky and unpredictable venture, this variety is based on the market which is beyond your control and could lead to higher rates. There are penalties associated with breaking a market-value adjusted fixed annuities contract that you may want to be aware of so ask your agent before purchasing.
4. Pass-through rate fixed annuities – With this your provider receives a percentage of your fixed annuities and you will be paid the remainder of the interest earned.
5. Floating rate fixed annuities – Here the interest rates vary from month to month and collect value according to the fluctuation rates.
Are Fixed Annuities Right For You?
Go online today to talk to compare insurance quotes and talk to an insurance agent about fixed annuities and whether or not they are right for you. Although they can be complicated, it is best to think of fixed annuities much like a savings account in that you invest money into it and it gains value as a result of accruing interest. If this sounds like something you might be interested in then fixed annuities may be a worthwhile investment for you.
For more information about fixed annuities or for insurance quotes from up to 5 local agents, visit InsuranceAgents.com

What Is A Fixed Annuity?

What is a Fixed Annuity? An annuity is a contract from an insurance company to pay money in the future. The company guarantees a fixed rate of return, usually based on some underlying bond crediting rate. The contract is between the insurer and the owner of the annuity contract.
Annuities are used to provide a future benefit in the form of a stream of payments. These payments are made within one year, in the case of an Immediate Annuity. They may also take place at some future date, more than a year, as in a Deferred Annuity.
A Fixed Annuity differs from Variable Annuities because the insurer backs the interest rate earned. A Variable Annuity permits the owner to invest the payments in the market for a potentially higher return. This also means that the owner of a Variable Annuity has a substantially higher investment risk. As such, Variable Annuities are registered security products; fixed annuities are not. One fixed annuity, the equity indexed annuity is also not considered a security.
Fixed Annuities have two distinct phases: accumulation and annuitization. During the accumulation or build-up phase, payments are made and grow on a tax-deferred basis. When the owner decides to receive income, the annuity is "annuitize" or paid-out. Payout can take place all at once or over years based on the life of an annuitant. The annuitant is similar to insured in a life insurance policy.
Annuities are often compared to mutual funds and other investment products. This is a mistake because there are stark differences between the two. To start, Fixed Annuities are not investment products. They provide a way to defer income for a period of time. Their guaranty return is unique and not found with mutual funds that face market risk. A Fixed Annuity has mortality and expense charges that are not found in investment products.
An initial payment into an annuity can be made all at once or over a series of period. These are single pay and fixed pay annuities respectively. Annuities enjoy tax advantages during the accumulation phase and should not be used until age 59 and a half. Taking money out prior to that age for purposes other than a special need may result in penalties and fees. Many Fixed Annuity contracts have what are known as surrender charges. A surrender charge is a declining fee, based on the number of years money is held. They can be as high as 30 percent and last up to 20 years.
Fixed Annuities are useful in planning for such life events as retirement. They may also be used to distribute lump sum payments such as inheritances or lawsuits. These are special Fixed Annuities known as structured settlement annuities. A Fixed Annuity gives ease of mind to a person who is uncertain about the market. They tend to be competitive with bank certificates of deposit but again are unique products.
When considering the purchase of a Fixed Annuity contract you should consult a licensed insurance agent or financial adviser. A competent agent or counselor can provide you with comparative information and help determine the appropriate product. A Fixed Annuity may be valuable addition to your product holdings.
When it comes to a fixed annuity there are a number of things to consider, Is an immediate or equity indexed annuity the way to go? Visit the site for more details.

Life Insurance 

Long Term Care Insurance - Make sure these are included in your policy!

The majority of people need long term care insurance because not everyone will afford the cost of the nursing home facility. Around 50% of Americans will require long term care insurance in their life time so it makes sense to ensure your care insurance includes/covers the following...
Variable Coverage. Get a long term care insurance policy that includes coverage for home health aids, assisted living facilities, adult day care providers and nursing homes so you’ll have the best choice of care.
Inflation protection. Ensure you get a long term care insurance policy that includes inflation protection because the cost of these nursing homes will be considerably more in 15 to 30 years time.
A minimum of 70% Daily Benefit. If you require care services, ensure you don’t pick the cheapest daily amount. Instead investigate what the average daily cost is of a nursing home in the area and request around 70% of that. Also ensure you adjust this annually to account for changes per year.
Independent Care Management. The long term care insurance company will send a representative to determine the benefits you need. It’s essential to make sure your long term care insurance policy enables you the option of having a licensed health care provider that is independent and not someone working for the long term care insurance company.
There you have it, some practical advice and things to look out for when purchasing long term care insurance. Please contact us if you'd like to add anything to this article! Thank you.

Hidden In Plain Sight-Term Life Insurance Conversion

Most people do not have a clear understanding of the various options available in term life insurance, and consequently make decisions based solely on price. This document was written to help you determine what additional issues may also have a bearing on the best value for you.
The Problem
As consumers, we generally concern ourselves with price because we are most comfortable when comparing something obvious such as numbers. Prices are easy to compare and understand; especially when it concerns products we generally have little experience in purchasing.
Previous Option
Compounding this problem as it concerns term life insurance in particular, is that many popular internet sites allow the consumer to obtain a quote simply by completing several questions
about build, health and lifestyle. Once quotes are obtained, it’s up to the buyer to choose their best deal. We know this can be a disservice to the client, and in the pages to follow we give a specific example of why, and what to consider.
The LifeNet Solution
We believe life insurance is too important to your beneficiary’s welfare and your own peace of mind to choose coverage based on limited information and undefined objectives.  Certainly there is nothing wrong with checking premium costs to get some idea of the market; however, we believe clients are not well served by a mechanical procedure which does not address issues central to the reason for purchase in the first place, i.e. your beneficiaries’ security.
An Example
Let’s take a case of a 60 year old male, a non-smoker in good health and in need of a $1,000,000 policy to examine how both approaches work, and show why our method is superior and provides more value to you, the applicant.
The competition provides you a number of quotes detailing carrier name, carrier rating, health category, and premium. Should you wish to apply, simply pick your carrier and the application
appears. No fuss, no bother, and no idea if this offer is the best value. In fact, it is rare to find premiums of the lowest cost carriers to vary widely.
The lowest cost provider with an A+ or better rating, which we’ll call Company A has an annual premium of $4755. Two other carriers (Companies B and C) have annual premiums of $4955 and $4980 respectively.
All three have convertibility options, but each company’s conversion rules vary and can result in very different opportunities for the insured. In each case, conversion will be at the same health rating that the insured received at the time of the original purchase. In essence, this guarantees the health rating at conversion without evidence of current insurability. This is
extremely important since health tends to worsen as we grow older, you could even be uninsurable. In addition, most carriers will allow a partial conversion. That is, a $1,000,000 term may be converted into a permanent policy of any size up to the original face amount of $1,000,000. Most permanent policies have a minimum face of $100,000.
Now back to our example. Company A is relatively small compared to others. Its market is low cost term insurance, and they allow conversion to a whole life policy. You may convert to this
policy at anytime your term policy is in force up to your 70th birthday.  Company B’s policy is also convertible up to age 70; however conversion to several policies is available. Among them is a flexible premium universal life policy with a guaranteed premium.  This type of policy is designed to have the lowest possible premiums. It is guaranteed to stay in force for your lifetime as long as premiums are paid on a timely basis. Both the premium and the face amount of the policy never change. These policies are designed without any cash accumulation, and have considerably lower premiums than whole life.
Finally, Company C has identical conversion policy choices as Company B, however the conversion option stays in effect for an additional five years to age 75. This additional 5 years
can mean a great deal because the older we become, the more likely our health rating will change in a negative way. If you find you need lifetime coverage, the extra 5 years of
convertibility can make a big difference in protecting your beneficiaries.
Any financial plan is just that, a plan. It is based on what we consider reasonable in light of what we know now. However, anyone in their 50’s or older knows how plans can change for
many reasons, some under our control, but many not.  To summarize, both company A and B have identical conversion time periods, while company B has better choices than company A. Company C has the same conversion choices as Company B and extends the window of opportunity an additional five years to age 75.  Now comes the interesting part. As the owner of the policy, you may have the potential to sell this policy if your need for coverage has decreased or disappeared. This transaction is called a “Life Settlement”. Life Settlements have become a multi-billion dollar market in the last few years and it’s easy to see why as we now look at all three carriers. Legitimate Life Settlements should not be confused with “Stranger Originated Life Insurance (STOLI)” which is illegal in many states.
                                Company A            Company B             Company C
Annual Premium                   $4,755               $4,955               $4,980
Total Premiums (15 yrs)          $71,325              $74,325              $74,700
Sale of Policy                     0                     0                 $200,000 (est*)
*This estimate is based on a composite of real cases, but will be dependent upon actual conditions at the time of potential sale, and in no way is it to be considered a guarantee of future results. Remember, you should never attempt to sell a policy if you still need coverage or your health has declined. This type of transaction is designed for individuals whose objective has changed due to financial circumstances different from when the policy was purchased.
For a term policy to be considered a good candidate for sale, it must be convertible into a universal policy with little or no cash value and guaranteed level premiums.
Implementation
1. Contact an independent agent with access to the majority of highly rated insurance companies. Once you find someone you feel comfortable with, check their status with your state insurance department. This is quite easy to do. Just go to your state insurance department website.
2. Remember, agents cannot guarantee you a premium cost! They can only use their best efforts based on the health, lifestyle and the family health history you provide. Omitting
information does a disservice to both you and the agent. Life insurers deal with fraud or incomplete information regularly. When you withhold information, you hurt your chances for the agent to advocate on your behalf. Additionally, it may harm your ability to obtain coverage with another carrier.
3. Discuss your objective with the agent. Agents can suggest approaches to coverage you may not have considered.
4. Make sure you ask about conversion options.
5. Be prepared to have a paramedic exam, typically done at your home, your office or at the exam company. Most carriers require blood and urine collection and an EKG to be performed by an independent paramedic company. In some instances, it is possible to purchase coverage without these tests, however be prepared to pay higher premiums for smaller amounts of insurance.
6. Ask questions. Good agents are in the service business and want to do a good job for you. So let them!
Leonard Robbins has written additional articles that can help you choose the best policy for your current and future needs. You may contact him at lenny@lifenetinsurance.com or visit his website at http://www.lifenetinsurance.com read all you'll need to know.

Life Settlements-The Good,The Bad, And The Ugly

Life Settlements-The Good,The Bad, And The Ugly

Mention Life Settlements and you’re bound to hear strong opinions, both positive and negative. The life settlement market has grown into a billion dollar industry in the last few years.  If you're over 50 and own a term life insurance policy you no longer need, this could mean money in your pocket.
First, the Ugly
Every market has those who try to “game” the system.  Many seniors have fallen prey to agents tempting them with an offer of free money.  The senior is induced to purchase life insurance without a legitimate need for such coverage.  The insured then waits two years so the policy becomes uncontestable, sells the policy, and shares the proceeds with the other parties to the transaction. This is called “stranger originated life insurance” (STOLI).

There are two major concerns that any individual should be aware of when thinking about such a transaction.  First, there is no insurable interest.  That is, the applicant has no legitimate purpose.  Secondly, many states are considering, or have made this type of transaction illegal. STOLI transactions corrupt the marketplace by changing the basis on which premiums are determined.

The Bad
Many people who have purchased life insurance for legitimate purposes may need money due to a terminal illness.  Individuals who are induced to sell policies in this situation enter into what are known as “viatical settlements”, selling their policy for a percentage of the face amount to obtain money for immediate living expenses.  These transactions became popular at a time when a diagnosis of AIDS meant a short life expectancy. Viatical settlements allowed the terminally ill to receive cash during their last days.
 
Today, the insurance industry has made such sales unnecessary for policies sold in the last few years.  Most policies include a no-cost rider which allows for a substantial portion of the face amount to be paid to the terminally ill in advance of death with sufficient documentation.  This eliminates the need for a viatical settlement, and gives the insured and beneficiary the full policy value.
The Good
There are many legitimate reasons to consider the sale of a life insurance policy that was purchased in good faith for protection against the insured’s death.  Term policies are purchased for protection for a limited time period.  Generally, these policies are written to protect family members who rely on the insured’s income, or in business situations to protect the company from loss of an owner. Once the original objective no longer exits due to a change in circumstance, a life settlement may be a good option.
Another reason to consider a life settlement would be affordability.  If the premium can no longer be paid due to a negative change in circumstances, the owner may benefit substantially by selling the policy through a life settlement transaction.  Today more the ever, this is unfortunately the situation many seniors find themselves in.
To be considered for a life settlement the term policy must be convertible into a universal life policy.  While some whole life or variable life policies are suitable for purchase, generally this is not the case.  If you own a term policy, simply check the contract to determine when and what your current policy is convertible into. If you are unsure, your agent or the insurance company will be able to help you determine if your policy is convertible.
 
There are many factors that affect the ability to sell a policy in a life settlement.  Generally, the insured must be over 65 and without a terminal illness.  Remember the insurance company makes a life settlement unnecessary in a terminal illness situation. An agent familiar with life settlements can assist you in determining if this type of transaction is right for you.

Next Steps
If you're considering a life settlement, speak with an agent who is well versed in this area.  They will help you select an experienced broker. There are many life settlement companies that will assist you in selling your policy, but like any transaction “let the buyer beware”.  There are several important considerations when choosing a life settlement broker.  You will want to deal with a company that has been in business for a relatively long time, long enough to generate a reputation.  You will want to see how your transaction is handled in the marketplace.  How many bids are requested?  How transparent is the transaction?  Can you see the various bids for your policy?  How are the funds allocated?
While there are always questions that are specific to your situation, this article should help you to understand the general nature of the life settlement transaction.  A good agent will help you navigate this maze to produce the best outcome for you.


Leonard Robbins has written additional articles that can help you choose the best policy for your current and future needs. You may contact him at lenny@lifenetinsurance.com or visit his website at http://www.lifenetinsurance.com read all you'll need to know.

The Insiders Guide To Buying Term Insurance

Most people consider cost the primary reason for choosing one insurance policy over another. While certainly important, there are additional and by no means less important factors. Among them are some questions to consider.
How strong is the insurance company?
In today's uncertain financial climate the quality of your insurance company takes on new meaning. While no insurance company simply goes out of business due to highly regulated reserve requirements of the various states they operate in, those carriers in danger from poor investment results or real estate loans may well be taken over by stronger carriers. While this generally means the new owner will abide by the guarantees of the original policy the "devil may be in the details." When this happens the new carrier generally considers this a so-called "closed" book of business, a severely restricts your future options.
What options do I have?
Most insurance companies offer both term and permanent life insurance, and most carriers will allow the owner of the policy to convert term coverage into a permanent policy within a specific time period. Although most will allow conversion into many of the competitive products they currently offer, those carriers taken over by others may find they options limited to older cash value policies that may not meet you new objective.
I'm not a smoker, but I enjoy a cigar every once in a while. Should I tell my agent?
The short answer is "yes". While you may feel this is silly, it's not. Why, because the insurance company has the right (and some say obligation) to deny your beneficiary's claim based on fraud, and this is a relatively easy way to show that you, the insured, tried to deceive the company when you applied for coverage. Note that policies have a 2 year period of contestability. This means the company may fail to honor a claim during this period based for fraud or suicide. Subsequent to this time, a claim is paid even if the insured failed to disclose an issue, or died by their own hand.
Why is convertibility so important?
Typically, our health declines with age. We may gain some weight, take a medication or two, or generally not be in the same shape we were at a younger age. However, once you have a term policy in force, you have "locked in" your health category with regard to convertibility. Many people drop their term policies only to find their new options severely restricted.
Why do premiums vary so much?
This usually has more to do with the insurance company than it does with you. Assuming the same health category, you may find premiums differ by 100% or more. While logic may tell you the stronger the carrier, the higher the premium, just the opposite can be true. Today, stronger insurers are using their clout to increase market share. Premiums can also depend on the investment yield the company has experienced, their average bond maturity, mortality experience and other factors. All good reasons to shop before you buy.
What is the first step?
Talk to an experienced independent agent who deals with many carriers. Ask for references, and check the agent's disciplinary record. All states have these records displayed on their insurance department website. Like the purchase of any important asset, let the buyer beware.
Leonard Robbins has written additional articles that can help you choose the best policy for your current and future needs. You may contact him at lenny@lifenetinsurance.com or visit his website at http://www.lifenetinsurance.com read all you'll need to know.

The Ins and Outs of Whole Life Insurance

A breakdown of the pros and cons of whole life insurance
Whole life insurance, otherwise known as permanent life insurance, is designed for people who want coverage their entire life with very few strings attached and zero-risk. Getting whole life insurance quotes is a simple process, but it’s important you understand a little more about how the policy works before shopping around.
Whole life insurance guarantees a payout for the entire term of your life and you pay a monthly or yearly premium for the entire term of your life as well. It’s a very simple policy in its structure since typically the payments do not change (up or down) and the benefit does not change. However, this may not be best suited for everyone, and when you get your whole life insurance quotes you need to make sure you understand exactly what you are buying.
A Quick Breakdown of How Whole Life Insurance Works
Higher Premium – You will notice that whole life insurance quotes tend to be higher than term life insurance and other variable types as well. The reason whole policies tend to be more expensive is that the money you pay into the policy is put into a “savings” program. The longer you pay into the policy, the larger the tax-deferred earnings are that you earn from the money saved up inside the whole life policy. These interest and dividends should be discussed with your insurance agent when you receive you whole life insurance quotes. Also, while you do have the ability to get a loan against your policy, again that is a major financial decision that should be discussed with an agent as well.
Fixed Policy – Whole life insurance policies are fixed in a couple different ways. The first of which is that your payments are fixed at a certain set amount for the entire duration of the policy. Regardless of economic troubles, increases in mortality, etc… your premium always stays exactly the same. So whatever you receive in whole life insurance quotes, that will be the rate you pay forever.
The second aspect of the policy being fixed is that the death benefit always stays exactly the same. The death benefit is agreed upon from day one and even 50 years later it will be the same amount, so plan carefully when you are deciding on how large a death benefit to request in your whole life insurance quotes.
Financial Benefits – Aside from the death benefit, whole life insurance policies allow you to earn tax-deferred earnings from the money you have invested into the policy over the years. However, it takes many years, sometimes decades, to see the full benefit of that, which means whole life insurance policies are a poor vehicle for short term investment.
If you plan to have the policy for decades the benefits of a whole life insurance policy can be quite significant and you stand to earn quite a bit through the “savings” program offered. When you are comparing whole life insurance quotes, ask your agent to show you some calculations of how the tax benefits and earnings potential can offset the cost of the policy over a long enough timeline.
InsuranceAgents.com offers expert articles on whole life insurance, and offers insurance quotes from up to 5 local agents in a matter of minutes.

Health Insurance 

Understanding Health Care and Free Insurance Quotes

Visit us at http://www.free-health-insurancequotes.com to see more about how to get an online Free Quote Request and gain a little more understanding about how you can benefit with all that is being offered for you.