Must Read Life Insurance Report

Transcription

1 Must Read Life Insurance Report Dear Friend, Thank you for taking the time to read this report on life insurance. This is a free gift and should not be sold for any price for any reason. When you are finished reading it, please feel free to send it to your friends and family so they can benefit from it as well. It should be noted that this report should not be construed as financial advice and that you should consult with your financial advisor if you have any questions or concerns. This document may not be edited or altered in any way. There is so much MIS-information out there, that I felt this report was necessary. Read below to find some common myths about life insurance, when you should buy, how to avoid getting ripped off, how to find what policy is best for you, and more. Enjoy!

2 Busting the Top 6 Myths About Life Insurance You know what the problem with myths is? Too many people believe them. And there 6 BIG myths about life insurance that keep people from buying it or that make them buy too little of it. To avoid this from happening to you, we've taken a look at the 6 most common misunderstandings about life insurance to set the record straight--helping you to make the right life insurance choice for you and your family. Myth #1: I don't work outside the home so I don't need life insurance. False! Just because there's no paycheck to replace, doesn't mean life insurance is unnecessary. A life insurance policy that provides coverage for a stay-at-home parent isn t so much about the money they bring in to the household, but instead about the money they keep in the household. In fact, have you ever considered how much it would cost to pay for childcare and housekeeping in the absence of a stay-at-home parent? Don t underestimate how much this would require, child care is expensive and is a growing cost. Myth #2: I'm young so odds are I won't need life insurance.

3 Life insurance is an absolute steal for young, healthy people. Buying life insurance now means you'll be providing financial security without spending a lot of money for it. Besides, the whole point is to be prepared for the unexpected. No one expects to die at a young age, but people do every day. So how much money do you save by buying when you are young? Let me put it this way: Let s say you will live to be 80. If you are 20 years old and buy life insurance now, you will end up spending less than if you were 40 and bought life insurance, even though you didn t pay any premiums for those 20 years. What's more, when you are young, you may even be eligible for preferred life rates that mean the annual premiums are even less! The good news is that eligibility for preferred rates is common and could save you up to 30 per cent off the standard rate. Myth #3: If it's really so cheap there must be a catch. There's no catch to term life insurance. Your basic term life insurance policy will offer you coverage so long as you pay your premium. You buy term insurance coverage for the duration of time you'll need life insurance, whether that's until the kids are out of school or until your mortgage is paid off.

4 Plus, your premiums are fixed for the length of the term. They won't increase even if the status of your health changes. Myth #4: I don't need life insurance once my children are self-supporting and my mortgage is paid off. Everybody's insurance needs vary. But how would your spouse manage daily living expenses without your help? And what if your spouse outlived you by 10, even 20 years? Even if your children are no longer living at home and you no longer have large debts, like a mortgage, there still are questions you should consider before deciding that life insurance is no longer needed. Myth #5: I have life insurance through my job. I don't need any more insurance coverage. False. The truth is your life insurance coverage through your work may not be protecting yourself and your loved ones as much as you think. Review how much your employer-paid insurance provides and calculate whether this is enough to keep your family comfortable through the difficult times if you're not around. What's more, when you leave your job for any reason, including retirement, your coverage usually stops. And last time I checked, the economy looks pretty rough out there.

5 Myth #6: It's such a hassle to get life insurance. Thanks to the Internet, getting quotes is fast and easy. There are a number of online life insurance quote services and usually, all you have to do is answer a few simple questions to get quotes. Sometimes, you can even buy a policy online. Click Here to get a quick quote now!

6 Buying life insurance: A Shopping Checklist When shopping for term life insurance, you want to find the right amount of insurance coverage at a reasonable price with a company you can trust. But for many people, getting started is the hardest part. That's where the following Life Insurance Checklist can help. 1. What you would like your policy to achieve? Ask yourself what it is you want your life insurance to do. For example, do you want to have insurance coverage that will: Pay funeral arrangements? Pay the outstanding balance owing on a mortgage and other debts? Offset the loss of your income? And if so, for how long? Contribute to the future education of your children? A combination of all or part of the above? Knowing what you would like to accomplish with your life insurance policy and approximately how much you need to achieve these goals will help you determine how much life insurance you should consider purchasing. Online life insurance calculators are available to help you put a pound value on the amount of coverage you need.

7 2. Who would you like to insure under the life insurance policy? Most insurance companies offer a variety of life insurance products to suit your lifestyle and family needs. You can get an insurance policy on your own life, or you can get one policy for both you and your spouse (called a joint life insurance policy). The most common joint life policy provides coverage when the first partner dies, leaving the life insurance benefit to the surviving spouse. Although, there are other considerations you need to make before deciding to go this route. 3. How long will you need life insurance? Consulting a psychic isn t necessary, although it does require that you estimate the timing of your life insurance needs. For example: When will your mortgage be paid off? The amortization period of your mortgage will often determine how long your term life insurance policy should be. When will your children be finished school? One day they'll finish their education and having enough life insurance coverage to pay their educational expenses won't be necessary. When are you planning to retire? You will have less income to replace at that time.

8 Knowing how long you ll need life insurance coverage before you begin shopping will ensure you're comfortable with the life insurance product you end up purchasing. Online tools are available to help you figure out which term for your life insurance policy is most recommended for people with similar lifestyles. How to Compare Life Insurance Quotes 1. Compare life insurance quotes from multiple companies: It pays to shop around because life insurance rates can vary considerably depending on the product you choose, your age, and the amount of coverage you request. This is the easy part, because with the Internet you can compare life insurance quotes easily, online, anytime. 2. Which life insurance rate has been quoted standard or preferred? There are two basic life insurance rate groups you should know about when shopping for life insurance coverage: standard rates and preferred. Standard life insurance rates are the rates the majority of people qualify for, while about one third of the population is eligible for preferred rates.

9 Preferred life insurance rates are typically offered to very healthy people and means you may pay a smaller premium than most. Usually preferred rates are offered only once the results of the medical information and tests are known. It will depend on your blood pressure, cholesterol levels, height, weight, and family health history. But are preferred rates really worth it? Oh yes! They could save you up to 30-35% off your quoted premium. When comparing prices, make sure you're comparing 'standard to standard' or 'preferred to preferred' life insurance rates. If you're not sure, ask the broker. It would be disappointing to find out you were quoted preferred rates at the beginning, only to find out you don't qualify for them later. 3. Review the life insurance broker's availability: How easily can you get a hold of the broker? What are their hours of operation? Whether it is through their website or telephone, the life insurance broker should be easily accessible to you should you ever have questions or need to speak to them about a change in your life insurance needs. Look for toll-free numbers and extended hours of service as guides.

10 4. Review the medical information required to obtain the policy: Typically the more medical information you provide, the better the price. For a policy that asks few or no medical questions, you can bet the premium is higher for the same coverage then a plan asking for more information. Depending on the company, your age, and the amount of coverage you want, you could be asked to provide blood and urine samples. To obtain the samples, a nurse will visit at no cost to you. 5. Consider a life insurer's financial stability and strength: A company's financial stability is something to consider if you are planning on making a long-term purchase like life insurance. There are organizations out there that evaluate insurers and provide a rating on their stability and strength. 6. Ask about renewal options and requirements: Once the initial premium is set, it is usually guaranteed for the length of the policy (often 10 or 20 years). But what happens when the policy expires? Most policies are renewable until you are 70 or 75 so don't forget to ask your broker if you will have to take a medical to renew your policy. While your premiums will be higher on renewal, find out if they will also be guaranteed to remain level for the second term of the policy.

11 7. Confirm the policy can be cancelled without penalty: Most term life insurance policies can be cancelled at any time without penalty. Make sure to check with your broker to see if the life insurance company has any unusual cancellation policies. 8. Consider the conversion options and restrictions for the policy: As your life changes so do your life insurance needs and you may want the option to convert your coverage someday. To convert a term life insurance policy means to transfer all, or part of, the death benefit of the policy into a permanent life policy without a medical. For example, say you originally bought a term policy to protect a mortgage and child. Once the mortgage is paid and the child grown, you might find it desirable to convert the policy into one that will give you a new level premium for the rest of your life, and a death benefit that is guaranteed not to expire as you age.

12 7 Ways to Avoid Getting Ripped Off By Life Insurance 1. Don t buy a policy you don t need The main purpose of life insurance is to cover the wellbeing of your dependents in the event that you pass away sooner than you had anticipated. It is used for things like: Covering your mortgage payments that your partner could be liable for if you died Supporting your partner if they don t or can t earn an income of their own Ensuring financial security for your children. But if you don t have a spouse or any dependents or who rely on your wages to get by, getting life insurance is usually pretty pointless. 2. Get life insurance as early as you can Someone taking out life insurance cover aged 25 might expect to pay in the region of $8 a month for their premium. Someone who doesn t get life insurance until they re 40 could easily pay double that.

13 So even allowing for the fact that the 25 year old has been paying life insurance for 15 more years than the 40 year old the 25 year old will still end up paying less in total. Say both the 25 year old and the 40 year old lived until they were 80. The 25 year old would have paid $5,280 for his life s cover in total. The 40 year old, on the other hand, would have paid a hefty $7, Avoid Joint-Life Policies A joint life policy pays out if you or your partner dies. However, it only pays out once leaving the survivor uninsured. For just a few pounds more, you and your partner could take out separate life insurance policies. This means that you get two pay outs and twice as much cover. This leaves both the survivor insured, and ensures that any other dependents (for example, your children) are better protected. Another advantage to taking out separate policies is that they make dealing with inheritance tax less of a headache. Also, should you separate or divorce from your partner, the process of dividing up a joint policy can be a real pain. 4. Only cover yourself as long as you need You ll want to cover yourself until your normal retirement age of 65. After that, it depends on your circumstances. If you have a young family, you ll want to ensure that your children are covered until they can be financially independent.

14 But there s probably little use in you paying for a policy that covers you until you re eighty or older, as your kids will have long since flown the nest and you will hopefully not still be working. So there s no point buying a policy covering you until this point, because you will essentially be paying money for nothing. 5. Don t be misled by that quote Most of the time the quotes that sites give you online are ball park figures. No matter what your quote says, the final price will be determined by the insurance company you have chosen. Also, the cost of your premium is affected by many factors like health, family medical history, medications being taken, your occupation, and even hobbies. An agent will give you a more precise quote if you offer as much information as possible. 6. Consider decreasing terms insurance Often the main concern of people taking out life insurance is to cover the mortgage. If you have a repayment mortgage, getting decreasing term insurance can make a lot of sense. A decreasing policy takes into account how much of your mortgage is paid off. The more that is paid off, the lower your premium becomes (as there are less repayments for the insurer to cover should you kick the bucket).

15 After all, why pay for premium insurance that will cover a $100,000 mortgage when, after 30 years, you could only have $20,000 left to pay off? A decreasing policy takes this into account and gives you cheaper payments over time. 7. Buy life insurance online Buying life insurance online will cost much less than going directly through an insurance provider or financial advisor. And with the internet it s much easier to compare prices and do some research before you make your purchase. You should always get a free life insurance quote to get an idea of how much it will cost. That way you can make a fair comparison when looking at different life insurance options. Click Here to Get a FREE life insurance quote here to get started!