MrInsurability June 14, 2017 No Comments

Life Insurance

life insuranceToday I’d like to visit once again the subject of life insurance. We’ve talked about it before, though I suspect most of us don’t love talking about it. For many, buying or thinking of buying life insurance makes the subject of death too real.

So let’s forget about that and look at it from another point of view. What might that be, you ask? Well, life insurance is an important part of a long-term financial plan. Read more

MrInsurability July 2, 2016 No Comments

Life Insurance (Part 7) Permanent Life Insurance

MrInsurability.comAs events in today’s world make it seem that more and more things that we have taken for granted, have become uncertain, people are relying more and more on long term methods of keeping their money and themselves, safe. One such method is to take out a permanent life insurance policy on oneself, either in the form of a whole life policy or as an endowment.

Is this type of insurance the best for you? Let’s find out some facts about each type and see if we can come to an educated decision.

Life insurance is, put simply, a financial package designed to protect those who depend upon you for monetary support. Remember that a life insurance policy is a legal contract. Within it are terms and conditions of the risks assumed. Any misrepresentation by the policy holder or the insured will be grounds for nullification of the insurance.

In the case of permanent life insurance, there are three important aspects to remember: the policy is for the life of the person insured; the payout is assured when the insured passes and the policy accumulates (builds) cash value.

**Note** Should the insured live to the age of 121, at that point the policy is considered to be paid in full and can be cashed in for full value.

Let’s take a brief look at how this compares to a term life policy. A term life insurance is taken only for a short period of time and payment to beneficiaries occurs only with the insured’s death. Term life insurance does not build cash.

Since permanent life insurance is for a longer period of time, however, this means that it will cost at least eight to ten times more than term insurance. Although expensive, permanent life insurance will allow the insured to take out a “policy loan” after a certain period of making regular premium payments.

You can think of permanent life insurance as a bank, where withdrawal can be done only after a specified period of time; term insurance, on the other hand, is more like gift-giving. Money is turned over to the beneficiary only in the event of the passing of the insured.

Permanent life insurance is divided into three categories: whole life, universal life and endowment. Next time we’ll look at each type of coverage and the differences between them, in order to help you make an educated decision about which type best suites your current needs. As always, your independent insurance agent can offer you the facts and prices from multiple insurance companies, instead of just one, because he/she works for you and not an insurance company!





MrInsurability June 26, 2016 No Comments

Life Insurance (Part 4)

Who Needs Life Insurance?

MrInsurability.comParents typically take out life insurance for their children’s benefit. Grown children may write their parents in, as dependents, on their life insurance policies. The assignation is easy when it’s on paper, but taking out a life insurance policy also means an investment of money and in this world of increased spending, it is increasingly difficult to save for the future.

So, does everyone really need life insurance and is it that important? Again, life insurance is, put simply, a financial package designed to protect those who depend upon a certain person for monetary support. If that person dies, those who need him or her will need money. Life insurance can cover those needs, depending upon the policy that was chosen. In other words, life insurance is designed to insure a provider and protect the provided.

Next time we’ll take a look at who should have the coverage and some of the available options. As always, your independent insurance agent is in the perfect position to provide you all of the help necessary, to make wise choices, when it comes to purchasing just the right life insurance for your needs!



MrInsurability June 21, 2016 No Comments

Life Insurance (Part 3)

MrInsurability.comThere are two main classes of life insurance: permanent and term. Permanent life insurance is life insurance that is valid until the policy matures and would be voided only if the policy holder does not pay the premium when it is due. Permanent life insurance also accumulates a cash value and this cash can be accessed by withdrawal, borrowed in the form of a loan or even recovered in part, should the person concerned surrender the policy.

Term life insurance, on the other hand, provides life insurance coverage only for a certain amount of time and for a certain premium. Unlike permanent life insurance, term life insurance does not earn any cash value. The premium buys financial protection for the beneficiary, in the event that the insured dies, but it will provide for nothing else.

Another type of life insurance, which includes an accidental death benefit, called a limited life insurance package, is meant to provide coverage to an insured’s dependents, should the insured suffer fatally from an accident. This insurance does not cover death due to health problems or suicide, but it is frequently purchased, as it is much less expensive than other types of life insurance.

Whatever the type of insurance you may prefer, consult with a reputable independent insurance agent. Life insurance, like life, is a precious thing and it involves investment and knowledge.



MrInsurability June 19, 2016 No Comments

Life Insurance – What it’s All About

MrInsurability.comToday I want to start talking about life insurance. It’s a coverage that many people don’t have, but should. Before buying coverage, it’s best to know what it does, what it costs and how much you need to have. So, let’s start with the basics.

Parents take out life insurance on themselves “to protect their children.” One spouse has been known to kill the other so he/she can take the insurance and make himself/herself rich. What’s the fuss all about? Why does insurance lead to so much good and yet so much bad? What exactly is life insurance?

Life insurance is a financial package designed to protect those who depend upon you for monetary support. A life insurance policy is a legal contract. Within it are terms and conditions of the risks assumed. Any misrepresentation by the policy holder or the insured will be grounds for nullification of the insurance.

To understand the concept of life insurance, you first have to know the parties involved. In general, there are three: the insurer, the insured and the policy holder.

The insurer is the party that provides the insurance policy. The insured is the person who benefits from the insurance. The policy holder is the person who takes out the insurance and pays for it. For instance, if you buy a policy for your spouse and take a policy on his or her life, then you are the owner, and your spouse is the insured. The policy holder and insured can sometimes be one and the same, as in when you buy a life insurance policy for yourself.

In some cases, a fourth party called the beneficiary is involved. The beneficiary is the person or persons who will “benefit” from the death of the insured. The beneficiary is strictly not party to the policy, but may be designated by the policy holder. The beneficiary may also be changed by the policy holder, unless the policy has a clause preventing it. Should a policy have such a clause, the beneficiary must agree to any changes made in the policy.

Next time we’ll continue going into the ins and outs of life insurance, but remember, at any time the best help and advice will come from your independent insurance agent, whose job it is to get you the answers you need.