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Life Insurance Tips
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Hi, my name is Yolander Prinzel, the Life Insurance Guru at LifeTips.
Enjoy these 191 Life Insurance tips. More added weekly!  Life Insurance for Children? | Jul 09, 2009
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Life Insurance for Children?Life insurance is not just about preparing for a possible future for your family that doesn't include you. It isn't solely about paying college tuition, paying off debt and replacing your salary after your death. Life insurance is also for burial expenses. Burial expenses exist no matter how old you are when you die, and that's why some parents buy life insurance policies to cover their children. Parents don't want to consider, contemplate and least of all, plan for, the death of their child. Unfortunately, while the risk of your child dying may be small, it does still exist. A small final expense policy on your child can take away the financial stress and hardship that their death would bring, and will allow you the time and presence of mind to heal. When you buy a whole life final expense policy, it also creates an asset for your child to bring into adulthood with him or her. Life insurance on children, while depressing, is a practical option for hedging financial risk in the event of your child's death and gives your son or daughter some cash value to start their adulthood with. Affordable Life Insurance Option: Group Life InsuranceEmployer-provided life insurance coverage is often the most affordable form of life insurance available. This is because the insurance is underwritten based on the group's risk, rather than yours as an individual. Your individual health will not be considered, since the underwriters use other criteria to determine risk when underwriting group life insurance. If your employer doesn't provide a life insurance benefit, find out if any of the organizations or unions you are a member of offer group life insurance to their members. Organizations like AARP, AAA, trade and talent unions often offer group life insurance to their members at a fraction of the cost of individual insurance. *It is important to remember that your benefits may be contingent upon your membership or employment. LifeInsure.com Tip: Tips for Life Insurance InformationThere are life insurance videos for many different types of plans. But what if you want life insurance answers for which no video is available? Life insurance education is not limited to videos. There is a wealth of information available to life insurance shoppers that know where to look. Tip 1. If Considering a Group Insurance Policy Consider Your Human Resource Professional • Human resource or benefit administration staff can be an important source of information for employees selecting life insurance or options. These employees benefit from ongoing professional development training and seminars that keep their knowledge of coverage and plans current. Tip 2. Look for Life Insurance Information in Magazine and Newspaper Articles • It is important to have unbiased information and to consider your plan from every possible perspective when buying life insurance. Of course it is useful to consult your life insurance agent, but it may also be worth your while to learn about life insurance from sources that can give you a different angle. Tip 3. Make a List of Questions • It can be frustrating to finally find a source for life insurance answers only to forget your questions. Write down any questions that come up as you are researching life insurance. Is Life Insurance Really Necessary?I don't know if you've heard, but the legendary infomercial guru, Billy Mays is dead. Oh, and Michael Jackson. Oh, wait, Farrah Fawcett too...and let's not forget David Carradine a few weeks ago. Of these 4 deaths in June, how many did not come as a surprise? Really, only one. Farrah Fawcett was maybe a little shocking, but she had been having issues, so we couldn't have been completely off guard. Unfortunately, unexpected death does not just afflict the rich and famous. Every day, thousands of people under the age of 70 with no history of health complications suddenly die. Whether it's an accident, suicide, murder or an asymptomatic disease, it happens. Without a life insurance policy to leave their survivors, their death not only has the impact of a tragic loss of a loved one, it also creates the potential for a long-lasting legacy of financial hardship. Families, unable to afford the homes they've lived in for decades suddenly find themselves in apartments not even half the size of their former home. Children, used to private schools and dream of college are pulled out of school during the move, college funds are no longer funded, and after school activities seem like expensive luxuries. With life insurance, you give your family the financial freedom to mourn you in a healthy way. To rise above their grief and begin life anew--without the stress of finding a new life in a new economic environment. Personal History Interview (PHI)A personal history interview is the set of questions a proposed insured is asked by their agent or underwriter to determine their risk to the insurance company. The PHI contains questions about the proposed insured's health, medications, hobbies and occupation. LifeInsure.com Tip: Universal Life InsuranceUniversal life insurance is a type of flexible, permanent life insurance that can provide life-long protection. There are many available options, so you can tailor a plan that is perfect for your needs. Following are some tips to help you understand universal life insurance and a popular available option. Tip 1. Understand Universal Life Insurance • Universal life insurance builds cash value. Tip 2. Universal Life Insurance Offers Important Tax Advantages • Policy holders enjoy interest bearing accounts with growth that is tax-deferred. Many universal policies accrue interest at guaranteed rates. Adverse Selection (also called Anti-Selection)Adverse selection occurs when a proposed insured who is already critically ill applies for life insurance. This is considered adverse selection because it increases the risk to the insurer. It can also create an inadequacy in the rate structure because the insurance company is charging a rate for a healthy person with lower risk. LifeInsure.com Tip: Tips for Choosing Survivorship Life InsuranceSurvivorship life insurance is an important estate planning tool that can protect your assets from taxes while preserving them for your loved ones. Use the following tips to decide if survivorship life insurance, also called second to die insurance, is right for your family. Tip 1. Survivorship Life Insurance Is Very Affordable Second to die policies are single policies that provide protection for both spouses at generally cheaper rates than available with two separate policies. Tip 2. You Need Not Be Wealthy To Benefit from Survivorship Life Insurance Regardless of how much money you have, chances are you would prefer to have your loved ones enjoy your earnings instead of losing them to taxes. Second to die insurance can protect your net worth for the next generation. Tip 3. Survivorship Life Insurance Delays Payment of Estate Taxes These policies are also called second to die policies because benefits and estate taxes are not paid until the second insured dies. Tip 4. Survivorship Life Insurance is Available as a Whole Life or Universal Life Policy • Whole life policies provide protection for the rest of your life, as long as premium payments remain current. Whole life provides the security of guaranteed premiums and payouts. • Universal life policies are evolving to include lifetime guarantees; however that guarantee does not extend to the policy’s cash value. • The cash value of these universal life policies may decline over time. Return of Premium Life Insurance TipsIf you are in the market for a life insurance policy you should be aware that there are additional benefits you can add to your policy to enhance the benefit. Return of premium riders are one such option. The Return of Premium rider is a particularly attractive option for consumers because it ensures that you will get all your premium dollars back if you do not die during the term of your life insurance. Policy holders pay annual premiums throughout the policy term (usually between 15 -30 years). The sum total of all payments is returned to the policy holder at the end of the term unless a death benefit is paid out (ask your life insurance company what happens to the additional premium if death does occur) Policy payments do not earn interest but, since they are paid with after tax dollars, their repayment is not a taxable event. LifeInsure.com Tip: Tips for Choosing a Life Insurance AgentIn many cases, the life insurance agent can be almost as important as the life insurance policy. Wondering what to look for when choosing a life insurance agent? Read the following tips for a few ideas. Tip 1. Consider an Independent Agent • Independent life insurance agents can be more focused on consumers because they are not focused only on one company. Tip 2. Be Sure Your Life Insurance Agent is Knowledgeable • The decision to buy life insurance is not one to be taken lightly. There are many considerations. Insurance shoppers should expect that agents will be knowledgeable enough to provide expertise across a range of scenarios. Tip 3. Choose a Life Insurance Agent that is Accessible • Whether it is via telephone or email, your agent should provide reasonably prompt responses to questions and inquiries. Group Insurance for FreelancersIf you are a freelancer, you may not have access to a group insurance plan through an employer--but ou still need coverage. If you have a chronic illness and can not qualify for individual coverage, you might consider joining a union in your discipline. Many freelance disciplines have unions (such as The National Writer's Union) that offer group health insurance once you've joined.
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