Life Insurance 101, An Explanation of Various Types of Life Insurance

TERM LIFE INSURANCE – Life insurance for a set number or years. You can choose from 5 to 30 year terms. No cash value, if you die during the term you collect the death benefit. The policy dies after the selected term has ended and you receive nothing unless you have a, return of premium rider or you convert the policy to some form of permanent insurance.

RETURN OF PREMIUM TERM INSURANCE (ROP) – A term insurance policy that returns all or a portion of premiums paid at the end of the term if the death benefit has not been paid.

SIMPLIFIED TERM INSURANCE – Term insurance which uses a simple application. Underwriting is done electronically. No underwriting requirements by the applicant unless red flags arise out of the electronic underwriting process. Policy is usually issued much quicker than regular term. There is a limit of death benefit for this type of policy ($350,000 or less) depending on the insurance carrier. This type of policy is generally more expensive because of additional risk by the insurance carrier. Less underwriting =more risk.

CRITICAL ILLNESS INSURANCE – Applied for as a stand-alone policy or as a rider to another life insurance policy. Pay immediate benefit for a covered illness even if death does not occur.

ACCIDENTAL DEATH INSURANCE – Pays benefit in event of a covered sudden accidental death. Applied for as a stand-alone policy or as a rider to another form of life insurance.

MORTGAGE PROTECTION INSURANCE OR DECREASING TERM INSURANCE – Term insurance that pays the balance of your mortgage should death occur. The amount of death benefit decreases to match the amount owed on mortgage. The insurance is set up to end at the same time your mortgage is set to end.

UNIVERSAL LIFE INSURANCE (non variable) – Flexible premiums. Can be a permanent insurance as long as premiums are paid and policy is funded properly. Investment policy in which risk lies with insurance company.

Has a minimum guaranteed interest rate which differs by company. This policy has the ability to gain contract value. The death benefit can be set to level (death benefit stays the same throughout) or increasing (death benefit increases as contract value rises). You may obtain loans or make withdraws but you must be careful, if the policy is not funded, it will collapse.

VARIABLE UNIVERSAL LIFE INSURANCE – Agent must have securities license to sell. Very similar to non-variable universal life. The difference is that the policy owner assumes investment risk. There is no guaranteed interest rate. Policy can collapse if investment does not do well and policy is not funded properly.

WHOLE LIFE INSURANCE – Simply put, you pay the premium and the policy will last your whole life. You usually have an option to borrow against the policy, amount depends on the value of the policy. This type of policy is usually much more expensive than the universal life policy.

GRADED BENEFITS WHOLE LIFE – Partial or no benefits paid until a named or tiered waiting period has passed. If you die before the waiting period has passed, you usually will receive the return of your premium payments with some sort of interest.

FINAL EXPENSE WHOLE LIFE INSURANCE – This type of whole life insurance is aimed at burial and funeral expenses and other final expenses. Usually, no medical exam required and death benefit is limited to $50,000 or less.

SINGLE PREMIUM WHOLE LIFE – This whole life policy is paid for by a single lump sum payment. In return the beneficiary receives a larger death benefit than the payment.

THINGS TO CONSIDER: You may be interested in mixing and matching different types of policies. For example; There is a need for 500k immediately. As time goes on, the kids have graduated college and are out of the house, the house is almost or totally paid off. Now the need is less. In this example you may want to purchase a 330k universal life and a 20 year 200k term. This plan will save you money and still protect your family for life.

Or, you may want to mix term, critical illness, accident, universal life, or whole life in various ways depending on your needs.

RIDERS:

Waiver of Premium Rider – pays life insurance premium if you become disabled and can’t work. There is usually a waiting period and rider usually expires at age 60 or 65.

Critical Illness Rider – Rider is explained above.

Return of Premium Rider – Rider is explained above.

Guaranteed Insurability Rider – this rider allows you to purchase an additional amount of life insurance at a later date without having to prove insurability again or take another medical exam.

Term Conversion Rider – allows you to convert a term insurance policy into a permanent policy without proving insurability again.

Accelerated Benefit Rider – this rider is only for permanent life insurance policies. This rider is usually included automatically for free. It allows you to collect a portion of your policy’s death benefit if you become terminally ill with a short life expectancy, usually one year. The portion paid out is subtracted from you policy’s death benefit.

Accidental Death Benefit Rider – This rider pays in addition to the death benefit if you die from an accident.

Child protection Rider – Usually used to pay final expenses if the unthinkable happens. Often, at a nominal cost and purchased in units of $1,000.

UNDERWRITING: requirements depend on insurance carrier, type of policy, amount of death benefit, age, build chart, gender, medical history, medications, family history, motor vehicle report, and other factors.

An application is always required, although, non-medical policies usually have a simple application.

Requirements could be: Paramed (certified medical processor or nurse comes to your place of choosing, takes you through a medical questionnaire, measures your height and weight, takes blood and urine sample, possibly EKG either resting or non-resting), Medical information from your physician or hospital, Medical exam, etc.

HEALTH CLASSES – Typical health classes would be, Preferred Best, Preferred, Select Standard, Standard, and then different nicotine classes such as, preferred nicotine, select nicotine, and standard nicotine.

It is possible to be rated less than standard depending on health and underwriting factors.

You must qualify for a health class. This is chosen by the underwriter after the underwriting process is complete. The agent can only quote you the different health classes but this can change with the underwriting process.

New Year Gifts – Innovative and Different

What things come to your mind while thinking of the right New Year gift? It can be a show-piece, or any similar item. We can think of something different also – say a photo-book, a personalized mug, or a simple T-Shirt.

Create canvas print

A nice photo, printed on canvas and framed as per your choice, is the right option for a nice New Year Gift for the occasion. A gemstone will not be as precious as a canvas print of the favorite photograph. In case your friend stays far away then you can send a roled-out print. The rolled-out print has extra one-inch white space to use while framing. Someone close expect something personal and what's better than mounted and ready to hang – canvas-printed photograph. The frames are made out of high-quality wood which is best to hang and portray. It will definitely bring a sweet smile on the other person's face all year through.

Create nice photo-book

How about the memorable events of your life printed in a photo book. You may take lots of time to create one but the other person will really understand your feelings and efforts put together. A nice photobook is treasured till the time of death. It is indeed the most special New Year gift for the most loved person. Some photo-sharing sites help create memoirs out of your memories and photobook is one of them.

Personalized mugs

Get a nice photo printed on the mug and place the order as per your choice. The photo sharing site will print that photo and create a nice magic mug as New Year Gift to your kid.

Name Calendars

This is the most special New Year Gift. One can choose among the various photographs to be printed for different months on the calendar. Put the names to be printed on each page of the calendar. These names may be of different person or for the same. The income will be worth adoring and worth a million dollar gift for the closest person on earth. In fact, you can simply place the calendar on the work-desk of the person concerned-for a beautiful surprise.

These are some of those personalized New Year gifts which are meant to strengthen your relationship, friendship and whatever relation you are in.

How to Talk to Your Spouse Who Says You Work Too Much

Strong marriages and relationships require attention from both partners. This balance of attention to spouse versus earning a living or furthering your career can be difficult to find. And, once you have found a balance that works in your relationship, things change and you have to find the balance again.

Why do some people overwork? The Overworking Spouse may be under considerable stress on the job, or may have a boss that demands long hours. Or maybe there are layoffs coming up and the less productive workers are the first to go. Maybe one partner has to work long hours just to support the family. On the other hand, the overworking spouse may be strongly identifying with career advancement to the exclusion of the marriage. Of course, we should be involved in work that is worthwhile, fulfilling and financially rewarding but over focus can put the marriage at risk.

What can happen when you put your work/career first? Your spouse may be feeling emotionally disconnected from you and lonely. There may be a buildup of resentment which can lead to anger and finally bitterness-towards you. This situation often leads to unhappiness and discord for the entire family.

As a psychologist who has worked for 20 years counseling couples in my therapy practice in North St. Paul, MN, I met with Amy and Josh with just this complaint. Amy was complaining that she was overburdened because Josh worked too much and left her with the responsibilities of home, children, and her own 40-hour job. He knew she was right but he felt defensive when she tried to tell him how to manage his work schedule. He’d started complaining that when wasn’t very affectionate lately and always blamed her disinterest in their physical intimacy on fatigue. He asked to meet with me individually after Amy had had a session to talk about her “side”of the problem. He was appreciative that she was not as naggy as she had been in the past, but he still felt blamed and criticized.

When Josh and I met, we talked of the reasons that he was spending so much time at work. The usual reasons people overwork is that they are feeling under considerable stress on the job, or may have a boss that demands long hours. Or maybe there are layoffs coming up and the less productive works are the first to go. Maybe one partner has to work long hours just to support the family. On the hand, the overworking spouse may be strongly identifying with career advancement to the exclusion of the marriage.

Drs. John and Julie Gottman, in their book 10 Lessons to Transform Your Marriage, suggest the following questions:

1.What does your work mean to you?

2.What pleasure or satisfaction does work bring to you?

3.What need does working fulfill in your life?

4.Does your work related to some personal legacy you would like to contribute to the world?

In a discussion with Josh, he pointed out that he was trying to make headway in his career now, while he was still young and had the energy. He knew his wife was doing a good job parenting their two small children (3 years and 9 months) so he wanted to focus on earning good money for his family. At first, he couldn’t understand why Amy was complaining so much because he was doing all this work for her and their children. He felt it was his responsibility. He wanted to provide his children with a fund for their education.

I suggested he consider the questions listed above. He said that his work is very satisfying in that he felt very confident and capable at work. He also wanted to meet his father’s expectations who had had a successful career. His older two brothers had moved from job to job and he knew his father was disappointed that they had difficulty supporting their families.

It was important for Josh to understand the underlying reasons for his excessive hours at work. He did not have a demanding boss and he was in no threat of a layoff. He just wanted to do the right thing. He had not thought of himself as having value over and above that of a worker and wage earner. He resigned himself to have a discussion with Amy. He said he would try to listen carefully about what Amy was longing for when she complained to him. I suggested he try to imagine the experiences she wanted to have with him and not to focus on her criticisms.

When Amy and Josh came for the next couple’s session, they wanted to further discuss the overworking situation. (They no longer saw the problem as residing inside one of them but as a problem the two of them need to figure out.) Any was able to explain to him what she missed when he work so much. He came to get a sense that his contribution to their family was not solely a financial responsibility. He heard her tell him he was also loved, appreciated, and needed as a friend, confidant and co-parent. She especially enjoyed his easy humor with their children and felt he was the only one who would be able to provide that.

This was a difficult issue for this couple and it was not resolved quickly. They were able to discuss their needs and wants in a different way when they addressed the questions about the underlying reasons for their positions.

Getting Low Auto Insurance Rates – Cheap Car Insurance Policies

First of all, avoid being in an accident. Having a clean accident-free driving record is a big plus for negotiating lower rates from your auto insurance provider. That you are a good driver makes the risk level for the insurance agency to be relatively low thereby giving you more power to make certain demands especially on lower rate considerations.

Also having a clean driving record will make you top choice and a better client to the insurance companies around.

You should endeavor to understand some of the value added services that auto insurance companies provide. Most times, these services help you save both time and money. A good insurance company will certainly love to have smiling customers and one of the greatest means for achieving this is to increase service value while maintaining price points or even lowering the overall price.

You can save more if you have multiple policies running on the same account. For example you can have a life insurance policy, home renters insurance and your auto insurance policy all being active in the same account. This will typically prompt for a lower rate negotiation.

Insurance companies will cross check on some of your personal behaviors and habits. If you have a record of getting drunk on alcohol or excessive speeding with friends and over loading vehicles, then your record is that of a high risk for the insurance companies. Having a non-destructive record will certainly give you more points for lower rates. The first step for you to get your lower rates is to get free auto insurance quotes from trusted agents online.

Where To Start?