Who needs it ?

Why do you need Life Insurance? There are many reasons for taking out life insurance. If you're the principal income earner in the family, life insurance is a good way to help provide your family with a stable financial future. Even if you are not the primary wage earner in your family, it's important to have insurance to help cover the financial burden of childcare, funeral expenses, and other unforeseen costs. While many of us find it difficult to acknowledge our mortality, planning for it can ease the burden our loved ones will face later.
	Taking out life insurance can help make a difficult situation easier by providing death benefits for: - Unpaid medical bill - Income replacement for survivors - Expenses such as funeral and burial costs - Unplanned or emergency expenses - Your mortgage balance - Future education funds for your children Business Owners As well as taking care of your family, life insurance can also protect your business. What would happen to your business if you, one of your fellow partners, or perhaps a key employee, died tomorrow? Life insurance can help in a number of ways. For example, a life insurance policy can be structured to fund a "buy-sell" agreement. This
would ensure that the remaining business owners have the funds to buy the company interests of a deceased owner at a previously agreed upon price. That way, the owners get the business and the family gets the money. To protect a business in case of the death of a key employee, "key person insurance," payable to the company, provides the owners with the financial flexibility needed to either hire a replacement or work out an alternative arrangement.
Singles Most single people believe that they don't need life insurance because no one depends on them financially. But there are exceptions. For instance, some single people provide financial support for aging parents or siblings. Others may have incurred a significant debt that they wouldn't want to pass on to family members who survive them. Life insurance should be included in any financial and wealth creation strategy and you should discuss your situation with a professional financial adviser. Life insurance provides for your loved ones and ensures that they are not burdened financially in the event of your premature death or disability.

Choosing A Life Insurance Agent?

When you’re considering buying life insurance, it’s important to choose an agent or broker who can help you. Buying life insurance can be complicated or confusing. The key to buying the right amount and the right type of policy at a good rate is a good agent or broker. You should choose one who:

• Understands your financial situation, including your attitudes about risk, your income and estate tax “brackets,” and your other financial assets and obligations, as well as your personal situation (that is, your age, marital status, dependents, etc.)
  

• Explains, in terms you can easily understand, issues, options and planned use of life insurance in your financial program

• rovides you with a personalized written document that

• records the facts of your current financial and personal situation and
  

• -describes the features of the life insurance and how it fits into your situatio
  

• Doesn’t pressure you into a decision, but works with you until you’re ready and convinced that you are doing what is best for you
  

• Is prepared to review with you periodically—perhaps every three years or so—whether the product continues to be suitable for your needs and circumstances
  

• Is licensed by your state insurance department.

If you don’t have an agent or broker who fits this description, ask your lawyer, accountant, friends, relatives and business associates for the names of insurance agents or brokers with an excellent reputation. You can also use this link: http://www.life-line.org/find_agent.html to connect with the nearly 70,000 members of the National Association of Insurance and Financial Advisors (NAIFA), who subscribe to the organization’s Code of Ethics ( http://www.naifa.org/about/ethics.cfm ).

An agent or broker who has one or more professional financial services designations has demonstrated a commitment to specialized education in the field. Designations you might see include the following:

	Designation Full name of designation Issuing Institution Institution’s Web site CLU ChFC Chartered Life Underwriter Chartered Financial Consultant The American College www.theamericancollege.edu CFP Certified Financial Planner Certified Financial Planner Board of Standards, Inc. www.cfp.net RR RP Registered Representative or Registered Principal National Association of Securities Dealers, Inc www.nasd.com
	The Compensation Issue Like everyone else, agents and brokers get paid for their services, which are enriched by their education and experience. Most agents and brokers are paid by commission, but some work on a fee basis. Typically, the largest part of the compensation is paid at the time you purchase the annuity, since most of the agent’s or broker’s work occurs at that time or just before it. As with any professional service, you should understand how your agent or broker will be compensated and how that might affect the purchase recommendation. The bottom line? The best way to protect yourself is to make sure you understand what you’re buying and the nature of the product’s limitations, penalties or fees if you want to drop the policy.

The Benefits of Life Insurance

Not A Sales Pitch: The Benefits of Life Insurance

Life insurance is a norm most members of the working force subscribe to. So, if you're not part of this group, start asking your self: "Why don't I have a life insurance policy yet?"

Well, why don't you? There are countless benefits to having a life insurance that offset the cost of it. Beyond the monthly payments, the jumbling of rates and terms of the policies and the haggling with the insurance agent, there are sterling benefits of life insurance that can be enjoyed.

A life insurance policy provides for the ones you leave behind once you perish. This is the basic premise and benefit of a life insurance. This ensures that your family is well taken cared of after your death. Depending on your plan, this may mean having enough finances to last your wife and two kids for a year or having enough money to put Junior through college. At any instance, having dutifully paid for your life insurance makes sure that you don't leave your family out to dry in the event of your unexpected demise.

Another benefit of life insurance is that you can borrow off of it, assuming that you've made substantial payments on it and that you've generated enough overpay to take out a loan, using your life insurance benefits as collateral. Having life insurance gives you another avenue to take out a loan for a substantial amount of money for investing or other personal and emergency needs. So, now you have two: your house, and your life insurance. Both are dependent on the amount you've paid upon completion of the contract and both can provide you with avenues to borrow large sums of money.

In the event that you leave behind debt and unresolved financial responsibilities in your time of demise, your life insurance benefits makes sure that you don't burden your family with them. In these financially volatile times, it is not unusual to incur debts on dud investments or times of need. Your life insurance benefits allows your family to move on without any financial burden.

On a more personal note, a heightened sense of security is another benefit of life insurance. There is less worrying about the future of your family in view of any unpleasant occurrences. Most of us worry about the future and the stability of the family, and another benefit of life insurance is providing another means of assuring that, if not being the main vehicle.

Getting a life insurance is normally the first responsible thing a young person undertakes, even before house mortgages and large loans. I mean, come on, sure cell phone bills are a hassle, but life insurance teaches a person responsibility and is one of the earlier steps that one takes when he or she moves towards being a productive citizen.

Having to pay for it teaches one of responsibility. Having it adds to a person's idea of self worth. The benefits of life insurance cover a vast spectrum. Of course, this writer cannot cite scientific studies to prove these, but they are minor assumptions that may or may not hold true for each person. Or you could simply use your common sense.

The point is, life insurance wouldn't be such a given if it wasn't so important. Sure, it can get complicated and costly, but only when you allow it to.

Life Insurance 101: Things You Should Know About Life Insurance

Life insurance seems such a normal part of daily existence that its meaning can be lost in translation, along with the money you pay for it. That said, let's get down and dirty into what life insurance principally means, so that even before trying to acquire one, you have basic knowledge about what it gives you.


What it is

The name itself hints of what it means. Life insurance is a system that provides financial compensation to individuals or family groups when the policy holder meets his demise. Some even assist in the finances of people who are incapacitated by incident or sickness that prevents them from going to work.

There are two main classifications of life insurance: term life insurance and permanent life insurance. They are different, but only in terms of time.


Permanent life insurance

Permanent life insurance pays dividends when the policy holder dies. There are usually three categories of permanent life insurance, named differently by companies, but still have the same principal meaning: Whole life, universal life and variable life.

Whole life insurance consists of having the insurance coverage costs chopped up in equal and steady payments for the duration of policy holder's whole life. They have higher early payments than term payments, but they can add up to higher cash-surrender- value funds. A cash surrender value is the amount of money over the risk protection charges of the insurance company that a person can obtain from the policy, in the event they cancel their insurance. Whole life insurance holders can also borrow against their insurance.

Universal life insurance adopts some of the features of term life insurance. It adjusts to the holder's current financial status, but maintains a flexible target premium which the insurance company calculates and enforces for the rest of the policy. Holders will have to pay basically within the target premium, give or take.

Variable life insurance has whole life features also, but there is one big difference. Policy holders cannot determine the amount of their cash surrender value, since most of the overpay from the holders are invested into stocks, rather than the common practice in which these are put into accounts that earn regular interest. This means that their cash surrender value depends on the performance of their stock, and surges and dips with it.


Term Life Insurance

Term life insurance keeps a specified time when the policy holder can cash in on the policy. The periods vary, but they basically are chopped up in sets of five. 5, 10 or 20 years. This is great for younger individuals who seek more affordable life insurance policies. They are mostly subscribed to cover after-death costs, such as outstanding debts or burial services. But they can not be used to wholly cover large debts, such as long term mortgage loans or estate taxes.

All said and done, obtaining life insurance entails so much more information than provided here, but treat this article as basic math, readying you for algebra, calculus or differential equations. So be informed and look at all possible alleys which your life insurance can go before deciding on anything. Better yet, talk to a professional.

Life Insurance - Apprehensive About Insurance Coverage

Life Insurance is an assurance of peace of mind...

Life insurance is a very important issue that you should address sooner than later. As we all know all good thing s come to end and in some sad unfortunate cases it is where we may have lost a loved one (suddenly) therefore leaving you unprepared for all the expense involved to give your dearly beloved a decent burial/funeral - so therefore Life insurance is the best plan B any one could have at times like this to help with funeral costs and any debts left behind by the deceased.

Just how important is Life insurance and what will you gain from coverage - well for one it offers peace of mind for those at troubled times where there may have been a bereavement or an accident and it also provides instant cash payouts if a death has occurred.. Insurance proceeds you will find are a reliable source that you can depend upon when times are hard and the going gets tough.

Claim peace of mind by going along to an insurance broker to talk on Life insurance. Insurance companies have well trained staff at hand that can give you good advice and support on what best suits you and your family`s needs and better still your budget. By doing this you will have secured your own and anyone close to you a little sense of security.

Insurance means assurance where you can rest assured that you have done the right thing. After talking to experts in the field of Life insurance you will find that they also can help with all types of insurance policies, like home content and accidental breakage. Payouts can help with hospital treatment and expenses that may incur from dental surgery even pet coverage options.

If you have a young family dependant of you then this is more reason to finalize some financial backing in your time of need should you be unfortunate to lose a partner or family member through a tragic accident or a sudden premature death.

Information on insurance policies can be found online. If you still feel a little apprehensive, don`t be, speak to others who have insurance and is familiar with the whole procedure - this may help you a great deal in understanding the importance of it all. Remember the decision is yours but if you decide to go forward with taking out some security like Life Insurance then you will find that you have made the best decision you are ever to make.

life Insurance, A Cornerstone For A Sound Financial Planning

Why should I buy life insurance?

"The act of philanthropy is a spiritual act, an expression of caring."
Arthur C. Frantzreb
A gift of life insurance can enable you to leave a significant legacy to your loved ones.

Many financial experts consider life insurance to be the cornerstone of sound financial planning. It can be an important tool in the following situations.

1. Replace income for dependents
   If people depend on your income, life insurance can replace that income for them if you die. The most commonly recognized case of this is parents with young children. However, it can also apply to couples in which the survivor would be financially stricken by the income lost through the death of a partner, and to dependent adults, such as parents, siblings or adult children who continue to rely on you financially...
   
   
2. Pay final expenses
   Life insurance can pay your funeral and burial costs, probate and other estate administration costs, debts and medical expenses not covered by health insurance.
   
   
3. Create an inheritance for your heirs
   Even if you have no other assets to pass to your heirs, you can create an inheritance by buying a life insurance policy and naming them as beneficiaries.
   
   
4. Pay federal “death” taxes and state “death” taxes
   Life insurance benefits can pay estate taxes so that your heirs will not have to liquidate other assets or take a smaller inheritance...
   
   
5. Make significant charitable contributions
   By making a charity the beneficiary of your life insurance, you can make a much larger contribution than if you donated the cash equivalent of the policy’s premiums.
   
   
6. Create a source of savings
   Some types of life insurance create a cash value that, if not paid out as a death benefit, can be borrowed or withdrawn on the owner’s request...

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