Tag: Comparing

Comparing life insurance quotes is important

Taking out a life insurance policy is probably one of the most important financial decisions you are going to make in your life, and it is purely because you want to make sure that your financial obligations are met in the event of anything happening to you when you pass away. As time goes by your responsibilities increase and you have to start looking out for people other than yourself. You get married and have children, you buy houses and cars and you need to pay all of them off as time progresses. If something happens to you while you are in the middle of all that, your loved ones will get left behind with all that debt and they will be put in tight position if they were dependent on your income to survive. A life insurance policy can take care of those concerns and you can leave them with a little nest egg to ensure that they have a roof over their heads and food on the table until they are able to look after themselves.

Until such time that they can fend for themselves your policy is all they have and you will need to ensure that it covers everything adequately.

For that reason it is important to compare life insurance on an apples-for-apples basis. You need to make sure that each policy you get a quote for is giving you the same payout amount, and that the amounts are also paid out the same. You often have the choice of a lump sum benefit or to have it paid out monthly and you may even choose both if your policy allows it. You need to make sure that there are no exclusions on your policy so that you can prevent in non-payments due to minor technicalities in your policy wording. If you are open and honest with your application then you won’t have to worry about that happening. All you need to do is consider how much money you need to take care of your financial obligations and then use that as a starting point for all of your policy applications. The insurer will take that amount, calculate your risk profile according to the information that you give them and they will give you a monthly premium that you can expect to pay.

Once you have the benefits lined up, you can compare premiums from insurer to the next and you will have an idea of what you are in for. You can make an informed decision based on the facts and affordability.

The author of this article, Jaxon Kelly, is a full-time author on the subject of Insurance firms. Also, he has a particular interest in life insurance planning and write on compare life insurance. On behalf of several web sites owners he spends most of his time writing contents for web publication for life insurance quotes Australia in return.

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As part of the Administration’s ongoing work to implement Wall Street Reform legislation, the Office of Financial Research and the Financial Stability Oversight Council hosted a conference, entitled “The Macroprudential Toolkit: Measurement and Analysis,” on December 1-2, 2011 in Washington, DC. This conference brought together thought leaders from the financial regulatory community, academia, public interest groups, and the financial services industry to discuss data and technology issues and analytical approaches for assessing, monitoring and mitigating threats to financial stability. The conference will provide an additional opportunity for coordination and collaboration in the broader efforts to effectively implement financial reform legislation and help prevent future financial crises.
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Comparing Life Insurance Policies

Life is so unpredictable and leaving your loved ones to grieve the loss of you on top of no financial support should never be an option. Deciding that you need an insurance policy is not a difficult decision to come to.

Life insurance does not have to be confusing if you know what kind of coverage you need. You should definitely do your research before deciding on a specific plan.

Term life is for a specific time period. You pay premiums for the entire length of the period and once that time is up, your death benefit is gone.

Term does not have a cash value component so your entire premium is simply used to keep the coverage active. Once the period is up, you stop paying and the coverage expires.

This is what makes term life one of the most inexpensive insurance policies. This plan is broken up into different categories, the first being Level Term.

Level term means your premium and death benefit remains the same for the entire length of the period, whether that is 10, 20, or even 30 years. Annual Renewable Term means the death benefit remains unchanged throughout the time period, but the contract renews annually, usually with an increase in premium each year.

Initially, premiums may be less than in a level term policy, but over time it can become more expensive. Decreasing Term is when the death benefit decreases each year while the premium remains the same.

The coverage ends when the death benefit reaches zero. Term policies are usually far less expensive than whole, universal, or variable insurance, and also have a very specific coverage period.

This allows you to only buy as much coverage as you need, like if you are only concerned about insurance while you have dependents at home or a mortgage to pay, you can plan out how long and how much coverage you need. There is no cash value component of the policy and your payments strictly go towards the policy and do not earn interest or otherwise accumulate.

If you purchase a 20-year term policy and after 20 years decide you would like to extend your coverage, you may need to undergo proof of insurability and could be denied additional coverage or need to renew at a significantly higher premium. Universal life insurance builds on term life and adds a cash component.

Here, instead of just selecting a specific period and putting 100 percent of your payment towards the policy, part of your premium will actually go into a cash account in the policy. This cash account earns interest and accumulates tax-deferred.

Universal life insurance provides additional flexibility because it has a cash component you could actually temporarily stop making payments as long as the cash value can cover the cost of insurance. In addition, you may also be able to increase or decrease the death benefit over time.

Also, you can usually borrow against the policy in the form of a loan. Universal is more expensive than term.

Variable life insurance is very similar to universal except you are not earning a specific rate of interest in a cash-value fund, but instead you can invest this portion in a variety of different investments like mutual funds. This means you get much more control and can choose where to invest the cash-value portion.

You are still guaranteed the minimum death benefit as long as you keep up with the minimum premium. You also have the flexibility to invest the cash-value portion in a variety of investment vehicles.

If you make wise investment decisions you can take advantage of significant tax-deferred earnings on those investments. By investing part of your policy in possibly risky investments, if the market turns south and you lose a lot of money, you are putting your policy in jeopardy.

A significant drop in account value could force you to pay additional premiums just to keep the contract in force. In addition, the expenses associated with the investments in variable universal life may be significantly higher than you might pay elsewhere.

Ronald Pedactor has been an insurance consultant for the past 10 years. He has written hundreds of articles dealing with the advantages of different insurance types. He recommends Provo Insurance for auto insurance in Utah.

Contact Info:
Ronald Pedactor
RonaldPedactor09@gmail.com
http://laboweninsurance.com

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Comparing Life Insurance Policies

Like anyone else, you want a life insurance policy that meets your needs and budget. But how do you find the right policy when there are so many to choose from and many of them seem so similar? The key is knowing how to compare policies and evaluate the results.
Know what you want–and compare apples to apples
Your first step should be to assess your life insurance needs. For instance, do you need $ 100,000 of coverage or $ 250,000? Would you be better off with term life or a cash value policy? If you’re buying term life, how many years of coverage do you want? Are there any special features that you want in a policy? How much can you afford to pay in premiums? If you haven’t answered questions like these yet, you probably should before you start comparing policies. Otherwise, you may end up comparing apples to oranges. For example, if you’re torn between a term life policy and a cash value policy, the decision you face isn’t really about two particular policies–it’s more about which type of insurance is best for you.
Detailed policy comparisons make the most sense when you know exactly what you’re looking for. This makes your job easier, because you can narrow your choices down to policies that provide the same type and amount of coverage. The more similar the policies you’re comparing, the more accurate and useful your results will be.
Try to get the most bang for your buck
Don’t make the mistake of comparing only insurance companies and not policies. Instead, choose a few reputable companies and get price quotes for the coverage you want. Premiums may vary widely among companies for comparable coverage, and even the same company may offer very similar policies at different prices. Should you buy the policy with the lowest annual premium? It depends. When comparing term policies that provide the same amount of coverage for the same period, a simple comparison of premiums may be sufficient. But this is the exception, not the rule.
The premium is an important factor when comparing policies, but often it doesn’t tell the whole story. What you really want is the best overall value for your money. To determine a policy’s true value, you have to dig a little deeper. Carefully read the fine print of each policy you’re considering, and ask lots of questions during sales presentations. A closer look at two or more policies may reveal key differences that would have gone unnoticed. Here are some things to look for and ask about:
Do policy premiums or benefits vary from year to year? If so, what part of the premiums or benefits is guaranteed, and what part is not?
If a cash value policy, what are the company’s projections of future cash value? How do those projections stack up against other cash value policies? Are the assumptions in those projections realistic?
Can you access the cash value through a withdrawal or loan? What restrictions apply? What is the loan interest rate?
If applicable, is there a guaranteed minimum interest credited on cash values? (Keep in mind that guarantees are subject to the claims-paying ability of the issuing insurance company.)
What charges and fees are associated with the policy? For example, what surrender charge will you pay if you give up a policy and take out the cash value?
Can you customize the policy to your needs with options or riders, and at what additional cost? For example, how much extra will you pay for a “waiver of premium in the event of disability or accidental death benefit” rider?
If a more expensive policy has features and provisions that are more favorable to you, it may sometimes be more cost effective to pay the higher premium. Of course, comparing policies to find a good value is also important when the policies you’re looking at all have roughly the same premium.
Run some numbers
Depending on how far you’re willing to go, comparing life insurance policies can become a complex numbers game. Insurance professionals use a number of methods to mathematically compare and evaluate policies. Most of these methods are designed to measure the true cost or value of a policy by taking into account factors other than premiums. These may include surrender charges, sales and administrative expenses, taxes, rates of return on cash values, policy dividend projections, and the cost per $ 1,000 of pure protection, both guaranteed and projected.
Two cost-comparison methods are widely used in the industry: the net payment cost comparison index and the surrender cost comparison index. The National Association of Insurance Commissioners, a group of state regulators, adopted these indexes to help consumers compare life insurance policies. Most states require insurance sales professionals to run these numbers for you, so be sure to ask for this service if it’s not offered to you. However, these indexes will produce useful results only when you’re comparing similar types of policies.
The advantage of any comparison method is that it can help take some of the subjectivity out of comparing policies. But all of these methods have shortcomings and limitations. Most of them rely on the assumptions and projections of the company that wrote the policy. Some of them apply only when you’re comparing policies with the same premium outlay. Finally, no index tells you everything you need to know about a particular policy. Use the results only to supplement what you learn from reading the policy, from sales presentations, and from other sources.
Get professional help–you’ll be glad you did
As you can see, comparing life insurance policies is not for the faint of heart. Doing it properly takes a combination of patience, persistence, and industry knowledge. Few consumers have the resources or expertise to do the necessary work on their own. In fact, it would probably take a full-time staff of experts just to compare and evaluate all of the life insurance policies on the market!
Obviously, such large-scale comparisons are not realistic, but having even one professional on your side can make a big difference. A qualified insurance professional can assess your insurance needs, make sense of complex sales illustrations, and conduct a cost-benefit analysis of similar policies. But don’t just pick any name out of the phone book–shop around for someone who’s qualified and trustworthy. With the right person working for you, you’ll be well on your way to finding a suitable policy that won’t break the bank.
One final word of caution about policy sales illustrations: It’s important to ask lots of questions about these illustrations because some of them can be misleading. For example, the illustrations of some companies are based on unrealistic assumptions about a policy’s future cash value.

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Whole life Quote | Term Life Quote : BeamaLife

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Comparing Life Insurance Policies

Like anyone else, you want a life insurance policy that meets your needs and budget. But how do you find the right policy when there are so many to choose from and many of them seem so similar? The key is knowing how to compare policies and evaluate the results.

Know what you want–and compare apples to apples

Your first step should be to assess your life insurance needs. For instance, do you need $ 100,000 of coverage or $ 250,000? Would you be better off with term life or a cash value policy? If you’re buying term life, how many years of coverage do you want? Are there any special features that you want in a policy? How much can you afford to pay in premiums? If you haven’t answered questions like these yet, you probably should before you start comparing policies. Otherwise, you may end up comparing apples to oranges. For example, if you’re torn between a term life policy and a cash value policy, the decision you face isn’t really about two particular policies–it’s more about which type of insurance is best for you.

Detailed policy comparisons make the most sense when you know exactly what you’re looking for.

This makes your job easier, because you can narrow your choices down to policies that provide the same type and amount of coverage. The more similar the policies you’re comparing, the more accurate and useful your results will be.

Try to get the most bang for your buck

Don’t make the mistake of comparing only insurance companies and not policies. Instead, choose a few reputable companies and get price quotes for the coverage you want. Premiums may vary widely among companies for comparable coverage, and even the same company may offer very similar policies at different prices.

Should you buy the policy with the lowest annual premium? It depends. When comparing term policies that provide the same amount of coverage for the same period, a simple comparison of premiums may be sufficient. But this is the exception, not the rule.

The premium is an important factor when comparing policies, but often it doesn’t tell the whole story. What you really want is the best overall value for your money. To determine a policy’s true value, you have to dig a little deeper. Carefully read the fine print of each policy you’re considering, and ask lots of questions during sales presentations. A closer look at two or more policies may reveal key differences that would have gone unnoticed. Here are some things to look for and ask about:

Do policy premiums or benefits vary from year to year? If so, what part of the premiums or benefits is guaranteed, and what part is not?
If a cash value policy, what are the company’s projections of future cash value? How do those projections stack up against other cash value policies? Are the assumptions in those projections realistic?
Can you access the cash value through a withdrawal or loan? What restrictions apply? What is the loan interest rate?
If applicable, is there a guaranteed minimum interest credited on cash values? (Keep in mind that guarantees are subject to the claims-paying ability of the issuing insurance company.)
What charges and fees are associated with the policy? For example, what surrender charge will you pay if you give up a policy and take out the cash value?
Can you customize the policy to your needs with options or riders, and at what additional cost? For example, how much extra will you pay for a “waiver of premium in the event of disability or accidental death benefit” rider?

If a more expensive policy has features and provisions that are more favorable to you, it may sometimes be more cost effective to pay the higher premium. Of course, comparing policies to find a good value is also important when the policies you’re looking at all have roughly the same premium.

Run some numbers

Depending on how far you’re willing to go, comparing life insurance policies can become a complex numbers game. Insurance professionals use a number of methods to mathematically compare and evaluate policies. Most of these methods are designed to measure the true cost or value of a policy by taking into account factors other than premiums. These may include surrender charges, sales and administrative expenses, taxes, rates of return on cash values, policy dividend projections, and the cost per $ 1,000 of pure protection, both guaranteed and projected.

Two cost-comparison methods are widely used in the industry: the net payment cost comparison index and the surrender cost comparison index. The National Association of Insurance Commissioners, a group of state regulators, adopted these indexes to help consumers compare life insurance policies. Most states require insurance sales professionals to run these numbers for you, so be sure to ask for this service if it’s not offered to you. However, these indexes will produce useful results only when you’re comparing similar types of policies.

The advantage of any comparison method is that it can help take some of the subjectivity out of comparing policies. But all of these methods have shortcomings and limitations. Most of them rely on the assumptions and projections of the company that wrote the policy. Some of them apply only when you’re comparing policies with the same premium outlay. Finally, no index tells you everything you need to know about a particular policy. Use the results only to supplement what you learn from reading the policy, from sales presentations, and from other sources.

Get professional help–you’ll be glad you did

As you can see, comparing life insurance policies is not for the faint of heart. Doing it properly takes a combination of patience, persistence, and industry knowledge. Few consumers have the resources or expertise to do the necessary work on their own. In fact, it would probably take a full-time staff of experts just to compare and evaluate all of the life insurance policies on the market!

Obviously, such large-scale comparisons are not realistic, but having even one professional on your side can make a big difference. A qualified insurance professional can assess your insurance needs, make sense of complex sales illustrations, and conduct a cost-benefit analysis of similar policies. But don’t just pick any name out of the phone book–shop around for someone who’s qualified and trustworthy. With the right person working for you, you’ll be well on your way to finding a suitable policy that won’t break the bank.

One final word of caution about policy sales illustrations: It’s important to ask lots of questions about these illustrations because some of them can be misleading. For example, the illustrations of some companies are based on unrealistic assumptions about a policy’s future cash value.

 

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Whole life Quote | Term Life Quote : BeamaLife

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