As America continues to recover from the worst recession in more than a generation, many people are looking at the smartest ways to save money and protect their financial futures. A recent survey conducted by the nonprofit LIFE Foundation discovered that one of the ways that people are making adjustments is to cancel life insurance polices. One in four Americans asked said that they either had or were considering canceling their coverage. This drastic of a decision can prove disastrous in the future. Here are some other mistakes that you might already be making that may make you reconsider terminating your insurance and instead encourage you to purchase more.

1.  You think that you have enough coverage.
Most people think that a person should have enough life insurance to cover funeral expenses and outstanding bills. What they fail to recognize is the importance of replacing the income of someone who passes in order to take care of their dependents. The idea that you should have a policy that pays out 7-10 times your salary might seem excessive to someone who is thinking of purchasing or who already has a life insurance policy. In reality, one in three adults doesn’t have any coverage at all. Others often do not have sufficient coverage to care for their loved ones in the event of their death. Not having enough coverage, or none at all, is a huge mistake that too many Americans make.

2.  You don’t want to talk about it.
Nobody likes to discuss life insurance. It is uncomfortable to talk about death for many people which leads them to avoid having the conversation. This can prevent them from asking honest questions about what they would do should their loved one pass. It is a mistake to avoid bringing up the subject. You owe it to your family to have a way to protect them in your absence. Discussing life insurance can also bring some piece of mind to your family.

3.  You have relied on old rules of thumb.
The old standard was seven times your income to calculate how much insurance to buy. But that doesn’t tell the whole story. Someone with fewer dependents and financial obligation may need less while others might need more. Instead of making the mistake of using standard formulas, think about what things you want to preserve and protect. You must consider paying for college, your mortgage, and other bills. You also must consider where you are in life and how much longer your income will be counted on. If you are 20 years away from retirement this should be taken into consideration. Purchasing life insurance is a personal matter and your decision should be based on your unique situation.
Life Insurance Calculator

4.  You forget to remember your benefits.
When you are thinking of how much salary you need to replace many people make the mistake of not including other things like their health insurance and pensions. This should be factored in when determining what amount you will need.

5.  You don’t pay attention to the long-term.
Too often people fail to recognize the length of the payout they will need to support their dependents. If you have younger children, the payout will need to be longer in order to provide for them until they are established.

6.  You think it’s too expensive.
The biggest mistake many people make is thinking that life insurance is too expensive. With rates low and so many options available today it is more affordable than ever to have a suitable policy that fits into your budget. The right policy is an excellent investment for your family’s future. If your budget is tight, term insurance will be your best option and rates can be more affordable than you might realize.

7.  You forget to update your policy.
When changes come to your life situation, don’t forget to update your policy to adapt to your changing needs. What you think might be the right fit might need to be altered later on in life. Don’t make the mistake of forgetting to review your policy and make necessary changes to keep it in line with your needs.

Understanding these common mistakes can help you to avoid making the wrong choices when it comes to your life insurance policy needs. Do your research and know your own personal situation before you buy and be sure to review your policy often to make sure that it suits your family’s needs.

The country is settling back down from what seemed like an almost endless election season and has begun to make a giant shift from focusing on electoral predictions to upcoming policies. With the phrase “fiscal cliff” sure to be the biggest buzz word of 2012, talking heads on both ends of the political spectrum, (and every rung in between), are trying their best to forecast what will be in store forAmericain the coming months. As politicians battle over marginal tax rates and federal spending, average Americans are left wondering how all this will affect their lives, and more directly their wallets.

While we will not yet know if compromise will rule the day and our government will work together to prevent us from taking the plunge over the proverbial cliff, it is important to keep in mind that some things will remain consistent no matter what the end result is. Obama’s reelection makes it more likely that our government will push for taxes at the top to increase to Clinton-era rates, and both sides of the aisle are likely to agree to keep the tax cuts for all Americans on their first $250,000 of income. This means for 98% of Americans, if Congress acts appropriately, they will see no increase in their taxes whatsoever. Those in the upper 2% will still enjoy the lower rates on their first quarter million, with the raise taking affect on any dollars earned over and above that mark.

Beyond the issue of marginal income tax rates, there is still much ambiguity over what will be decided on things like the estate tax, capital gains taxes, and corporate taxes. Tax deductions are also up in the air as many Republicans who may not agree to raise tax rates have seemed more willing to eliminate deductions, such as mortgage write-offs and charitable donations, in order to increase revenue. There are still many issues to be ironed out and the option is always there for a temporary band-aid solution. Many predict that Congress may kick the can down the road in hopes of being able to tackle tougher political issues like entitlement reform and military spending when the economy is on surer footing.

All this uncertainty can make it hard to determine what the best ways to invest in your future are. Experts may not agree on what we will see come January 1^st, but they do still consider life insurance a good vehicle for investment. Proceeds from a life insurance payout are not subject to income tax and neither party has mentioned plans to alter this. Therefore, it is still a solid opportunity to protect your family’s long term needs no matter who occupies the White House. It would seem that the peace of mind that comes with purchasing a life insurance policy will continue to hold true. In a world where it seems the only things we can count on are death and taxes, that knowledge is certainly reassuring.

The holiday shopping frenzy is in full swing. Shoppers have been filling stores across the nation searching for the best deals and gifts for their loved ones. They are standing in long lines for the latest gadgets and newest toys, clipping coupons and racing to make door-buster sales, braving crammed parking lots and chilly winter weather all in the pursuit of the perfect present. When deciding what to purchase for the most important person in your life, your spouse, it may be worth considering offering them one of the greatest gifts one can give: the peace of mind that come with having the security of a solid life insurance policy.

Giving the gift of life insurance may seem like a morbid suggestion. After all, the benefits are not seen until the event of an untimely death. It is important to change the perception of what life insurance is in order to see why it should be considered a thoughtful and personal gift. Life insurance should be viewed as a precautionary protective measure for your family. Having the right coverage can mean saving your home, sending your kids to college, handling unforeseen medical emergencies, and preserving the quality of life for your spouse. When looked at through this lens, a life insurance policy is more than just security for your loved one- it is the greatest gift you can give them- one that will live on long after you are no longer there.

Although it may seem to be an unconventional gift, purchasing a life insurance policy for your spouse shows where your heart is. It says that you love them and want to care for them today and well into the future. It demonstrates responsibility, loyalty and concern for a happiness that extends far beyond a single holiday. If you are looking for a gift to give your spouse, consider life insurance. With many policies available at affordable rates, you are certain to find the right plan to meet your family’s specific needs. So while you are stuffing stockings and stacking boxes under the tree, why not make one of those gifts something that says that your love will be with them always.

The financial crisis that struck the world in 2008 taught everyone a lesson or two about the fragility of even the largest financial institutions. The idea of putting your trust in an insurance company to be there in the invent you need it was most certainly called into question. Now many life insurance customers are fearful that the company they have purchased their policy with may not outlive them. The most important component of having a life insurance policy is the peace of mind that it gives the purchaser to know that his/her loved ones will be well taken care of in the event of an untimely death. In order for the policy holder to feel more confident that the company they purchased from will be around for a long time, many are considering the idea of diversifying life insurance policies.

Before considering whether this might be the right option for you, it is important to first evaluate any company you are looking into in three ways:

1)      It’s rating – this offers you a gauge of their ability to hold true to their promise years down the road.

2)      It’s complaints – consider the number of complaints have been reported against a company during a year and ranking them in relation to their market share. This will allow you to keep a closer eye on your insurer.

3)      It’s “Seal of Approval”- the life insurance industry offers the Insurance Marketplace Standards Association designation. This membership is granted a company in three-year periods, so if you notice that this association has dropped its endorsement of the company you should be concerned.

Diversification is a good option for many customers as it allows you to spread your risk. Although it is unlikely that your life insurance company would go out of business, especially if you have done your homework before you purchased, companies can be purchased by a state guaranteed fund or some other entity. This may result in some difficulties should your family need to file a claim. If you are looking to increase your policy amount or buy a new policy, it can be wise to split the policies up among different providers.

Although this may bring you better peace of mind, it also can come at a cost. Diversifying your policies may result in higher premiums because with a larger policy amount there are often discounts for the cost of the insurance. The first few hundred thousand purchased always have administrative costs included. Those fees are absorbed if you raise the amount. Several smaller policies may be far more expensive for you than one large one with a firm you feel confident in. Each person must evaluate this cost versus the risk protection you would gain and decide if it is right for you.

In this uncertain environment it may make sense for you to feel more confident that your eggs are not all in one basket. It is also important to recognize though that beyond the need to spread your risk, the financial collapse also reduced some of the appetite for risk and has prompted more talk of the government stepping back in to protect consumers against behaviors that put them at danger of losing their investments. This will undoubtedly lead to more confidence in the market, as we are already seeing. The most important decision is to choose to have a policy to protect your family. If you have a policy already and are considering adding more, it is best to shop around instead of just increasing your amount or adding a new policy with the same insurer. Make sure you know what options are available to you. Making an informed choice for what is best for your family will help you to rest easier.

On the morning of October 29, 2012, the world awoke to the devastation that had befallen the eastern seaboard. The images of the damage and destruction were heart wrenching. Just one day prior, the 900 mile mega storm dubbed Hurricane Sandy made landfall near Atlantic City, New Jersey. The full moon caused tides to be 20% higher than normal, contributing to create a perfect storm, where waves several stories high left much of the area under water. Eighty mile per hour winds left dozens dead, thousands homeless and millions without power. As the region still struggles to recover from the wreckage, Americans across the country are faced with the nagging realization that so much is really beyond our control.

Hurricane Sandy was only the third time in the last 20 years that our coastal cities were left buried so severely in water and debris from a storm. The first was back in 1992 in Miami, and then Hurricane Katrina hit New Orleans in 2005. Even though these phenomenons seem to be relatively rare and isolated, they are only one example of the different types of natural disasters that can
Even if you have considered yourself to be someone who lives a relatively low-risk lifestyle, after hearing the tragic stories of those lost in the recent storm you understand that there are many factors you are unable to control. Purchasing a life insurance policy is an excellent way to gain peace of mind in an uncertain world; however you want to make sure that you are making the right kind of investment in a policy that will protect your family’s needs. Here are some important things to consider before you purchase your life insurance policy: strike, such as earthquakes and fires, often with little to no warning. This reality has Americans focusing on not only protecting their homes and properties against such acts of nature, but also the futures of their loved ones.

• Speak to your family about taking out a life insurance policy. This is a big decision that involves more than just you, so you want to make sure that everyone is informed and comfortable with your decision.

• Consider who needs to be insured. It is not always just the bread-winner who should have the policy. You can explore options for policies for your spouse or children as well.

• Determine how much you will need. If you are unsure what amount will best cover your financial needs, consider talking to family members, insurance agents and financial consultants to help guide you.

• Compare policies to ensure you are getting the best policy at the best rate. Make sure you fully understand what you are buying. Look at the description of the product, the benefits, fees and charges, as well as any limitations. An untimely death is not the time for loved ones to be hit with surprises.

• Be truthful when filling out the application. Otherwise your claim may be rejected if anything is found to be dishonest.

• Be sure that your policy is inflated so that your coverage is equal to that of the cost of living from when you took out the policy.

• Read the contract thoroughly. Make sure that you are aware of any restrictions such as those for certain occupations.

Seek the help of a professional in the business of matching your needs with the right life insurance policy for you, and you will rest a little easier despite the many uncertainties in the world.

Financial planning for your family is one of the major concerns of most people today.  But, unfortunately, many people do not put as much time or energy into financial planning for their families before they pass away.  Life insurance is something that everyone should at least consider, but it is often put on the backburner as people think “I am too young to have to worry about that.”  Others hold off on buying life insurance because they are confused by the myriad terms and types and worry that they will get the wrong policy.

When a person buys a life insurance policy, they are signing a contract with the insurance company stating that the person will pay a set amount (either as monthly premiums or in one up-front total) in exchange for the company promising that they will pay a set amount of money to the person’s beneficiary upon his or her death.  At a minimum, this is usually done to help pay for funeral expenses or other bills which may accrue at a person’s death.  Other times, the policy can be for a much larger pay-out to help secure the financial stability of the beneficiary.  Here are some basic, commonly used terms to help you navigate the sometimes murky waters of buying life insurance.

• The Insured—This is the person who is actually covered under the insurance.  This person’s death will result in the insurance company having to pay out the terms of the policy.
• The Policyholder—Usually, this is the same as “the insured,” but it doesn’t have to be that way.  The policyholder is the person who buys the insurance and literally holds the policy on the person who is insured.  Sometimes, spouses will take out policies on each other or parents may take out policies on children to help with expenses should something happen to them.
• Beneficiary—This is the person who will receive the payout value of the policy in the event of the insured person’s death.  In most cases, a person can purchase a policy, name a beneficiary, and then change it as time goes on.  (For instance, a divorced woman may take her ex-husband off the policy as a beneficiary and place someone else in his stead.)
• Death Benefit—This is the amount paid to the beneficiary upon the death of the insured.  Usually, a death benefit is a lump sum amount, although some policies do pay out in annuitized installments for the duration of a set period or the life of the beneficiary.
• Premium—This is the amount that the policyholder must pay each month to keep the policy open and active.  If a policyholder fails to make a premium payment, it can result in the policy being canceled and the insurance being nullified.
• Term Life Insurance—This is where a policyholder buys insurance on the insured for a set term of time.  If the insured person dies after the term set by the insurance, then the company does not have to issue a death benefit.
• Whole Life Insurance—This is an insurance policy that covers a person for life and not a set term.  Premiums are usually higher for an older person than term insurance and premiums are also generally fixed under this type of plan.
• Universal Life Insurance—This is a policy that combines the full life coverage of whole life insurance with more flexible premium payment schedules.
• Health Class—This is a classification given to each insured person based on their general health and life expectancy as set by a physician.  People who are considered to have risk factors (i.e., smokers, alcoholics) may still be able to get life insurance, but they will probably have to pay higher premiums for them.

Buying life insurance is not easy.  Many people do not wish to even think about the possibility of their own mortality and, as a result, often hold off on getting any type of life insurance coverage.  But, failure to purchase a policy can ultimately lead to financial hardships for loved ones.  It is important to at least consider this and think about buying a policy.

Many young people find themselves thrust into the “real world” with little or no idea of what that entails.  One of the things that they face for the first time is the prospect of buying insurance.  Health insurance, car insurance, renter’s or homeowner’s insurance, and life insurance—it all just seems a muddy mix of legal language and unintelligible terms.  One of the most important, but often overlooked, is life insurance because many young people think there will be plenty of time to get this insurance later.  Here are the steps in how to obtain the best life insurance policy for you.

• Become familiar with the terminology.  Many people give up on the process when they start to see terms flying at them like
• premiums, whole life, term life, universal life, and the like.  Familiarizing yourself with these terms ahead of time will require just a little research, but it will help with the overall process in the end.
• Decide what you need the insurance for.  Ask yourself why you need the life insurance policy.  Are you merely looking to cover funeral expenses in the event of your death?  Do you wish to provide financial stability for the future for your spouse or children?  What you want out of the life insurance will determine which type of policy is best for you.
• Get several quotes.  Online life insurance quotes are fairly easy to get these days.  Do some research about the companies and request quotes from several of them.  This will usually take just a few moments for each company from which you request a quote.  Once you have received the quotes, do a quick comparison of them.  Make sure that you aren’t just choosing the cheapest, but the one with the best terms for your needs.  Also, make sure that you are comparing similar insurance plans.  Quotes on term life will vary greatly from those on whole life policies.  Make sure that you are comparing apples and apples when you choose which company you are going with.
• Select a policy/company and fill out the application.  Remember that the quote is just a preliminary idea of how much your insurance will cost.  Nothing is finalized until you formally sign on the dotted line.  So the next step after you pick which policy is best for you is to fill out the application for that company.  This is going to be more in-depth than the basic information that you filled out for the quote, so be sure that you are certain which company you want to go with.
• Schedule a physical exam.  Many companies require a physical as a means of determining your health class which is used to set your official rates.  Once you have filled out the application, ask the company about how to schedule the requisite physical.  Some will allow you to go to your own doctor to obtain the information they need.  Others will require you to see one of their approved doctors in the area.  Many will now even send a physician to your home or work so that you can fit in the physical at a time that is most convenient for you.  Regardless, make sure you do this quickly so that it doesn’t hold up the application process.
• Wait for the underwriting process to be completed.  Once you turn in your application, the company will assign it to an underwriter who will research your case, examine your health class, and determine the official price for your policy.  This will take anywhere between one to two months to complete.
• Sign your policy.  Once the underwriter is finished, the policy will be drawn up and the official contract will be sent to you.  Review the costs and terms of the policy carefully before signing.  Once you sign and return it, the company will send you your policy paperwork to hold onto.  Place these in a safe place such as a safety deposit box or a fireproof document safe.

Once you receive your policy, the only thing left is to pay your regular premiums and make sure that you keep up with it.  You can now rest easier at night knowing that in the untimely event of your passing your loved ones will be well cared for.

If you are in the market for a life insurance policy, the sheer number of companies, particularly those online, may seem daunting.  Everyone claims to have the lowest rates, but which ones really do?  And if you choose the lowest rate, are you sacrificing the quality of the policy in turn?  Let’s try to make head-or-tails of how life insurance quotes are calculated so that you can make an informed decision about what coverage is best for you.

When it comes to insurance premiums, the reality is that rates have come down significantly over the last few decades.  American life expectancy is up and, because insurance companies are having to pay out less on existing policies, they are able to lower the rates for new folks signing up for insurance.  As a result, it is in your best interest to do your research as the companies are also highly competitive.  Many companies now offer instant life insurance quotes on-line, so there is no need to wait days or weeks to receive a quote from a company.

There are two main life insurance types that you will probably be examining:  term life and whole life.  In these cases, the meaning is all in the name.  Term life covers the insured person for a specified term, such as five or ten years.  If the insured dies during that time period, then the insurance company will pay off to the beneficiary.  However, if at the end of the term the insured person is still alive, the policy is finished and no pay-out is made.  It is then up to the insured to renew the policy, but at this point the insurance premiums may go up with the age of the insured.  Whole life covers the insured person for the duration of their life.  There is no time restriction on the policy and the premiums remain constant.  What this means to a consumer is that term life will usually be cheaper in the short term for someone who needs limited coverage, but if they keep renewing it over years they may wind up paying more as their premiums can increase.  Whole life is a better long-term investment, especially for the young or those in excellent health.  Other options not often mentioned are universal life and variable life which offer greater flexibility with benefits and premiums.  Finally, some companies are now offering a convertible life insurance plan which allows someone to change their term life insurance into whole life if they choose once the term expires.

Before requesting a quote, it is usually a good idea to sit down with a life insurance calculator.  These are online programs that will ask you basic information about your finances such as anticipated funeral expenses, mortgage and non-mortgage debts, college needs for your children and the total annual amount your family would need in the event of your death.  The calculator will then inform you of how much money you will need as the benefit on your policy.  Using this figure, you can then request quotes from various companies looking at the details of both term life and whole life policies.  The companies will then look at a variety of factors to determine your quote.  These can include:

• Your Age.  The older you are when you request the coverage, the higher your premiums will be.
• Your Health Status.  Many companies will look at medical records and physical exams as a way of ascertaining this.  Alcoholics and smokers generally pay more in premiums due to the likelihood of developing cancer from these two substances.
• Your Coverage Plan.  Again, term life premiums tend to be less than whole life premiums.

Using this information, you can make an informed decision on what type of coverage you need and rest easy knowing your family will be cared for when you pass.

No one likes to consider the possibility of their own mortality.  But, as the old cliché goes, the only two guarantees in life are death and taxes.  Because of this inevitability, it is necessary to plan in advance for this outcome and life insurance is one of the surest ways to do this.  People don’t want to imagine their loved ones struggling with financial debt after they die.  We provide for our families during life and we hope that we can leave them with something to take care of them even after we are gone.  That is why life insurance is so important to consider.  Here are some common questions that you should ask and consider before choosing which of the life insurance companies from which to buy your insurance.

• What are the types of insurance?  Term life insurance covers a person for a specific term or period of his or her life.  If the person dies during the term, then the insurance will pay benefits.  If not, the insured person will have the option to renew the policy, possibly at a higher premium.  Whole life insurance covers a person for his or her entire life with no changes in the monthly premiums.
• How much insurance do I need?  At one point, a rule of thumb was that a person needed coverage equal to at least five times his or her annual income.  Today, that may not hold true, so it is wise to use an online life insurance calculator to calculate your bills and help estimate your total needs.
• Will I have to have a physical exam?  Possibly.  Many companies require a physical as part of the insurance process to ascertain your general health.  However, many of these exams can actually be carried out in your home or office as the insurance companies employ physicians who come to you for these exams.  Some companies make offers like “no physical exam necessary.”  These are perfectly legitimate, however since the company is taking a higher risk on you without the physical, you may wind up paying higher premiums than if you went with a policy that did require one.
• What type of information do the companies use to come up with an offer?  Basic health information, type of insurance, and the amount of the insurance all go into figuring out what monthly premium you will be charged.
• What about the offers that “you cannot be turned down”?  Are these for real?  Yes.  Some companies will not turn you down, regardless of your age or health.  But like the companies that require no physical, these insurers are taking a higher risk which translates into higher premium payments for you.

Hopefully this answers most if not all of your questions regarding health insurance.  Remember that it is important to get multiple quotes from a variety of life insurance companies.  But doing your homework and shopping around will pay off in the long run as you provide for the well-being of your loved ones.

Online Life Insurance Calculator

Search the web today and you can find a variety of research-based articles informing adults what they can do to extend their life expectancy. Some lists include the obvious healthy habits such as exercising, eating more fruits and vegetables and not smoking. Other lists include not so common items like learning a new language, volunteering and eating dark chocolate. But one recommendation you will be sure to see on nearly every list–reduce stress and anxiety.

What are the long-term effects of not reducing stress? According to HelpGuide.org, an online health resource guide, constant stress puts pressure on your immune system so you become more susceptible to illness and disease. Moreover, chronic stress—whether from internal or external sources– can cause a number of health issues including heart disease, digestive and sleep problems, depression, obesity and eczema.

Stress caused by external factors like a stressful job, long commute or a destructive relationship can be alleviated in obvious ways but some stressors are self-generated. One in particular is the inability to accept uncertainty. “I’ve seen some clients come into my office feeling very anxious about the lack of control in their financial situation and they worry about their family’s future should they lose their jobs or much worse, die prematurely, states an Orange-County based financial planner who sells life insurance among other financial products. She continued to say she has seen first-hand the peace of mind purchasing life insurance brings to these clients knowing their family has an emergency financial safety net.

For those anxious about their future, taking positive measures to exert control over some areas in their lives can go far in dialing down that anxiety, which can help slow down the aging process. A 2011 study conducted by the research firm LIMRA found that 27 percent of the more than 2000 people polled online in a 2011 Insurance Barometer Study were very concerned about leaving their family in a worse financial state in the event of their early death.

If you are someone who provides half to all of your family’s income, having a life insurance policy in place if you should die at an early age is one less worry in your life. You don’t have to think about the negative and financial impact your loss of income will have on your grieving family. In fact, depending on the amount of coverage selected, your spouse can have a death benefit payout that can help pay off remaining debt, medical bills, retirement fund and in some cases, all or some college tuition for your children if that is the case.

A real-life example is a businessman who shared his own personal experience at a meeting with his work peers. For years he had bought and sold life insurance with his main focus on the financial benefits it provided. His entire outlook changed on 9/11 when he was traveling by plane when he and the other passengers were told by the pilot that the plane would have to land early. He said he first felt afraid but then when he saw the fear on the other passengers’ faces, his fear turned into a sense of calm knowing that his family would be taken care of financially should he lose his life that day. Thankfully he did not lose his life but was left with a deeper understanding of the emotional benefit of having a life insurance policy and often shares that experience with his clients.

Another real-life example is a forty-something couple who believed in the benefits of life insurance and had a policy in place to provide financial support to the wife and their three young boys should the husband die prematurely. Both parents worked in a volatile job industry and money was tight so they got behind on paying some of their bills. They got a few months behind on paying their life insurance premiums and unknowingly let the time run out to keep their policy active and it was terminated. Less than two weeks later, the husband died in a tragic car accident and the wife received nothing from the term life insurance policy they had dutifully paid the premiums each month for years. Instead of paying off the family home as they planned so the family could remain in spite of the loss of income, the wife was forced to leave the home and raise her children in an apartment until she could earn enough money for a down payment on another home. This was not the scenario the couple had planned for.

While most people know the financial benefits of owning a life insurance policy should the unthinkable happen, it still falls down the priority list for many as other expenses get higher billing. However, for those who have taken advantage of the competitive rates of today’s life insurance policies, they can be rest assured it is one less thing to cause them stress about the future—and that peace of mind can go a long way toward better health.