Life Insurance News

life insurance author Patrick CooperMy name is Patrick Cooper. I’m your team leader for the life insurance section of our Web site. My wife and I reside in Chicago, Illinois. My grandfather had an insurance company in Dallas, Texas, where I worked at when I was younger, so I certainly have a significant background and understanding of the insurance industry, especially when it comes to life insurance quotes!

My job on our Web site is to provide to you with every conceivable answer to questions that you might be able to think of about cheap life insurance, which will allow you to make a highly educated decision about the purchase of a life insurance policy when you receive, for example, a term life insurance quote. If you don’t find the answer to a question you have, just click on “Ask Your Question” in the main menu. I will research it and post the answer as quickly as possible.

Recent Life Insurance News

Ten Reasons For You To Have Life Insurance

This type of insurance was designed as a protection for you and your family in the event of some kind of disaster or something goes drastically wrong with your financial situation. For example, mortgage life insurance would protect your home for your loved ones in the event that you died prematurely. Here is a list of ten reasons you should thoroughly investigate online life insurance for you and your family.

  1. If you develop some kind of critical illness, like terminal cancer, there are policies that have what are called “riders” that provide coverage for your children or your spouse. You will need to clearly determine your eligibility, as there are certain rules that determine your policy acceptance. We suggest that you study term life insurance on our Web site.
  2. If you suddenly die, as a contributing spouse, it can contribute to your family maintaining the life style that they are accustom to.
  3. This type of insurance can be positioned so that it will pay for the expenses of your funeral. That way your family will not be burdened with what can be a pretty big expense.
  4. If planned correctly, term insurance will provide your family with the funds for money that is due for bill that may have piled up and even the mortgage. It offers a protection that you leave behind, which can serve as a resource of cash.
  5. Let’s say, for example, that you have a business in which you have a partner. This insurance can protect your partner from liabilities or financial situation that you may leave behind in the event of your untimely death.
  6. It provides security to you and your family knowing that all the hard work that you did during your lifetime that your estate is protected. This money from term insurance can be used to pay for any death and duty fees. Also to pay for any personal or business expenses.
  7. From a credit point of view, a life insurance policy is viewed as a financial asset and can be included in your “net worth” worksheet, which in turn helps your credit rating. This can be helpful when it comes to looking for a business or home loan in addition to seeking a health insurance policy.
  8. When it comes to a bankruptcy, creditors cannot claim a term insurance or whole life insurance policy’s cash value and death benefits.
  9. You get double benefits from term life insurance. During different part of your life you can get the money back while it still protects you.
  10. A pension or savings component can be part of a cheap life insurance policy that could provide for you during your retirement.

It’s important when assessing either term life insurance or whole life insurance that you consider your long-term commitments and personal risks. Insurance is critical in the sense of good financial planning and puts you in a good position during your lifetime. In case of an emergency, during your lifetime you can make a loan against it or take a withdrawal.

Ten Things To Know Before You Purchase Life Insurance

  1. It is important for you to make some comparisons of each kind of life insurance quotes that you may be seeking . Think of it as split into two categories: a “cash value” and term life insurance. Term insurance, in general, will have a lower premium, at least during the earlier years. However, it will accumulate a cash value that you can cash in the future years if you need it. A “cash value” policy could one of the following types: variable life, universal life or whole life insurance. You must first take a look at how much you can afford right now. Then look try to plan what you will need for the future.
  2. If you have a policy now, keep it current. Thoroughly study the one that you have and research in depth the online life insurance that you are considering buying. If you replace the policy that you have now before getting the new one, it could be very costly!
  3. Before purchasing any of your life insurance quotes, study them and make sure that you can afford it. Some of these coverage’s have payments that increase with time at a later date. You don’t want to be saddled with an increasing payment that is going to cause you financial stress at a later date.
  4. Every few years you should review your entire insurance program. Take into consideration whether or not your family has changed its size or if you’re planning to increase it. Another thing to consider is whether inflation will affect your needs in the future.
  5. The renewal policies are critical. For most companies, the term life insurance policies can be renewed for more than one term even if your health status has changed. Be aware that when you renew a policy, the insurance company could increase your premium. There are a few things that you should inquire about. Ask how much will the premiums be when you renew and if it changes as you grow older.
  6. Assess the insurance policy that you currently have. If you have one, refrain from canceling it until you are sure that the new one is in place! You have a minimum amount of time to review the new policy. It’s possible that you can change the policy that you have in order to get the kind of benefits and coverage that you are seeking.
  7. It’s also important that you carefully read the policy that you’re looking at no matter if it’s a new quote or an existing policy. Let’s consider these thoughts: From year to year, will the benefits and/or premiums vary? Are there a part of these benefits of premiums that are not guaranteed? Is interest money to be paid at various times throughout the policy period? Diligence will pay off!
  8. Review what your insurance needs actually are.
  9. Think about how much income you provide for your family. Who else might have a dependence on you financially? After your death, how are debts and final expenses going to be repaid? You will want to ensure that if you die unexpectedly, that you have enough insurance to have covered all these issues. This will help you decide how much coverage you actually need.
  10. Some policies might have very low cash flow at the onset. Investigate how quickly the cash value will grow.

History Of The Life Insurance Policy

Historians claim that this concept started way back with the Romans in the city of Rome. In those days, the Romans were considered a civilization that was “highly advanced.” They formed what might be called “ burial arrangement” organizations. It really was nothing more than a group of citizens that chipped in money that was used to pay for the funeral expenses of the surviving family members. Quite a bit different from getting on the Internet and getting a term life insurance quote and comparing costs!

Through the centuries, as time went on, it turns out that the British actually started what we might consider “insurance” for your life. It really came about in a little place called “Lloyd’s Coffeehouse.” It was actually “banned” in the European communities. However, as we know it, the British are given the credit.

In 1735, the first company that was formed in America was in a little colony in Charleston, South Carolina. The first “term insurance” policy was actually written in 1761. It gained support from the Presbyterian Synod (Philadelphia), but religious opposition stifled the movement. The reason for the opposition was that religious elders felt that it was sacrilegious in that church members may be anticipating or predicting their deaths.

In the 1840s, the Chicago and New York fire’s provided the spark for industry of insuring one’s life for the benefits of the family and/or loved ones. Business really began to grow in the early 1900s. Two World Wars convinced people to insure themselves so that their families would be guaranteed a secure financial future in the event of their untimely death. Acts of war, like the World Trade Center and Pearl Harbor further bolstered the industry into the giant that it is now.

Recent Life Insurance News

Recent studies are revealing hundreds of thousands of Americans are selling off their term insurance or whole life insurance policies due to economic woes. This is causing a trillion dollar problem in insurance settlements within the industry.

Unemployment and layoff situations are not likely to change in the near future. There are savvy investors out there that are buying up these policies and putting them into their bond portfolio. They know each policyholder will eventually have to die, which will give them a guaranteed payment. They profit on the difference between the amount they paid for the policy and what its cash value is upon your death. This gives them “hedge” security in the event that the banks happen to fold. In addition to that, Wall Street is also being affected.

Some of the reasons cited in this study are:

  1. The insurance requirement status for the policyholder could have changed.
  2. The policyholder may have been affected by the economy and therefore can’t make the payments.
  3. A different kind of insurance may be needed and nonexistent funds may be required.
  4. Cash may be needed for an unexpected health expense.

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