What You Need to Know Before Canceling or Replacing Your Life Insurance Policies -
There can be many reasons why you may beconsidering canceling or replacing your life insurancepolicy. Before you do, here are a few things that you should consider:
Most people are unaware that you’re allowed a “freelook” provision, which is a period of time immediatelyfollowing the issuance of a life insurance policy, duringwhich you may cancel your policy with a full refund. Thefree look period differs depending on the terms of yourlife insurance contract or the laws in your state, but istypically between 10 and 30 days. So if during this timeyou change your mind about your new policy, you cancancel it knowing that your old policy is still in effect.
If you feel that your current policy no longer meets yourneeds, you may not have to replace it.
Maybe you’ve been contemplating upgrading your termpolicy to a permanent life policy such as a whole life oruniversal life insurance policy. Or perhaps yourpermanent life policy death benefit isn’t enough.Whatever the reason, you may decide at some time thatyou need a policy upgrade. The fact is, you may be ableto change your policy or add to it to get the coverageand/or benefits that you now want. Ask your insuranceprofessional about life insurance riders or options thatmay be available for you to increase your policy’s limits to meet your needs.
Before you cancel life insurance because you’re olderand your health has changed, premiums for a newpolicy will often be higher.
Because insurance premiums are rated in part on ageand health, canceling your policy and applying for newcoverage at a later date to, let’s say, save money,means you could be paying even more for the samecoverage in the future. Moreover, if your health has significantly changed, you may be uninsurable andunable to get coverage.
Deciding whether or not you no longer need coverageor trying to trim your budget by temporarily cancelingyour policy may not be in your best interest in the long run. The good news is that you may have other optionsavailable. In all cases, check with your insurance agentor life insurance company before making any significant changes concerning your existing life insurance policy.
Learn how life insurance can help provide funds to pay estatetaxes and offer other wealth-protecting benefits The estate planning process is meant to help you manage and preserve assets while you’re alive and to conserve and controldistribution after your death in accordance with your goals andbjectives. But estate planning is unique in that it’s different foreveryone — depending on your life stage, wealth, age, health, lifestyle, and other factors.
For example, a modest estate might require only a simple will,while larger estates concerned with potential estate tax burdensrequire a more sophisticated strategy such as a trust. But whatever your needs, life insurance can be a valuable element inyour estate planning when used in conjunction with theprotection of a will or trust to offer the following benefits: =========== 1. Estate Tax Funding Through Life Insurance
Federal estate taxes can be as high as 50 percent of your grossestate and must be paid in cash within nine months of yourdeath. Quite often it’s the estate’s personal assets that are used to cover tax debt. However, assets such as an IRA or a personalresidence are not easily liquidated on short notice withoutsubstantial tax penalties. Proceeds from a life policy are typicallyreceived income tax-free and could be used by yourbeneficiaries immediately to fund estate taxes while preserving assets. =========== NeitherProtective Life nor its representatives offer legal or taxadvice. Purchasers should consult with their attorney or taxadvisor regarding their individual situations before making anytax-related decisions. ==============
Most family businesses are started with a dream and built withhard work. If what you envision for your business after you die isto keep it in the family, you should first consider a discussionabout which of your heirs has the interest in managing and ability to manage the business. In many situations, families can useinsurance benefits to “cash out” some of the other heirs if sodesired, preserving family peace while continuing the viability ofthe business. ============== 3. Estate Equalization
Even if you have an estate plan, it could take a great deal of timebefore money is released and distributed to your loved ones. Expenses such as funeral costs, business debt, and estate taxescan place financial burdens on your family that could meandelving into their own bank accounts or having to liquidate assets. Funds from your life insurance policy could immediatelyhelp pay for these expenses by passing along a tax-free deathbenefit. =============
4. Estate Plan Creation
Life insurance has a unique ability to create an immediate estatefor your beneficiaries when you die, often for pennies on thedollar. It allows money to be passed directly to the designatedbeneficiary, essentially bypassing the complications created byprobate. Moreover, the benefits are distributed tax-free andremain untouched by potential debts. ========== The bottom line Many people talk about how to use life insurance as part of theirestate planning. The bottom line is that having a policy inconjunction with the protection of a will and/or a living trust allows you to guarantee that a lump sum of money will beavailable upon your death, providing an effective way to transferwealth to your beneficiaries.
Depending on the complexity of your estate, please considerconsulting an estate-planning attorney to be sure the decisionsyou make are right for you
Life Insurance – What To Know You may have considered getting a life insurancepolicy for some time now. Perhaps you’ve had a fewdiscussions across the kitchen table, completed someonline research, or went as far as to ask your insuranceagent to run you some quotes. But while these are all positive steps toward protecting your loved ones, youhave yet to take the next step to secure a lifeinsurance policy.
'' ''Term Insurance vs Whole Life Insurance. Which Is The Best And why? //THE PAGE//= ========== We understand that the subject of life insurance can becomplex and that you may be putting off purchasing apolicy because you have unanswered questions. we don’t want the lack of information, oranything else for that matter, to prevent you fromgetting the coverage you need – today. =========
========== So if you don’t have life insurance because you’restuck trying to figure out the difference between termlife insurance and permanent life insurance, calculatinghow much life insurance you need, or how to go aboutshopping for quotes online, our learning center can help. Here, we addresses key questions and concernsabout: Why it’s important to have life insurance How much life insurance you need What type of policy is best for you What to expect from an insurance medical exam How to budget for life insurance Understanding important policy riders …and much more
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Life Insurance Rating System: Select, Preferred or Standard, HowDoes Your Insurance Company Rate?
''History Of Insurance In America And Around The Globe'' ''How To Obtain An Insurance License For Free, Zero Cost AndStart Making Money' When you apply for a life insurance policy, the lifeinsurance company begins what is known as theunderwriting process. During this time, they review theinformation from your life insurance application andmedical exam results. Some life insurance companies might even decide to conduct a phone interview to gainmore insight into your family health history or to ask youadditional questions. ======= Once this information has been processed, the lifeinsurance company underwriter will determine whatcategory you fall in based on your age, lifestyle, familyhealth history, and overall health status. While thenames for specific life insurance company rating categories may differ between companies, the basicclassifications are select, preferred, and standard. Inaddition, people who smoke will have their own categoryrating of either standard smoker or preferred smoker. ======= What’s the difference in the basic categories? It’s important to note that not all insurance companiesfollow the same rating criteria. Therefore, you could berated as select by one company and preferred by another, simply because of that company’s individualunderwriting guidelines. ======= A select rating is typically offered if you are in excellenthealth, fall into a normal height to weight ratio, and havea favorable family health history. For example, that no immediate family members have died from cancer orheart disease at an early age. There may also be othercriteria involved, but these are the basics for qualifyingfor a select rating. Some life insurance companies evenhave ratings such as super select ''The 10 Commandments of Wealth and Happiness.. Ten Commandments Of Wealth Building... Discover the Ten Key Principles to Build True Wealth...
' We atKnowledge Financial Group; We're delighted to bring very helpful information for everyone who's interested..Incredible wealth of information;Anyone regardless of experience you can take advantage.fb.. . =========A preferred rating is also associated with optimumhealth, however certain factors may indicate that youpose a slightly higher risk than someone who wouldqualify for a select rating. This can be attributed to anumber of different factors, and depends on how the insurance company differentiates between a select andpreferred rating.
A standard rating doesn’t necessarily mean that you arein poor health. In fact, it typically means that you meetthe life insurance company’s standard rating forsomeone of average health and with your specific familyhealth history, weight, age, etc. Just as someone who might not qualify for a select rating due to certainindicators, getting a standard risk rating just means thatthere are factors relating to your particular situation thatmake you ineligible for a select or preferred rating.These can be factors such as a less than ideal height to weight ratio, past tobacco use, or even your drivinghistory or occupation. There are many factors that establish your life insurance premiums. They include the types of insurance, theamount, length of coverage, as well as your risk rating.The ratings above are all based on nonsmoker rates.Therefore, if you smoke, your premium rates will bebased on all the risks associated with being a smoker.
The most important thing to remember is to be sure toquestion the insurance company if you ever feel that youhave been incorrectly rated. For more information onunderstanding life insurance risk ratings ''Things Every New Employee, Investor, Business Owner Should Know About??? Great Information,The power to succeed: Prosperity, Abundance, and Opulence - The Secret Of Fortune...
7 Life Stages That Affect Your Life Insurance Needs Did you know your need for life insurance changes as your life changes? Life insurance is part of a responsible financial plan. And whileyou should feel secure knowing it will be there to meet yourfinancial responsibilities and protect your family, you shouldconsider periodically re-examining your insurance needs —especially at certain life stages.
1. Marriage and Life Insurance When you get married, financial obligations become a jointeffort. If one of you dies, a life insurance policy can helpensure the surviving spouse has the financial stability tomaintain his/her current standard of living. Additionally, as thecash accumulation in a permanent policy grows, more assets become available to pay down a mortgage, eliminate businessdebt or settle outstanding tax obligations. Death benefits paidto the surviving spouse can also help fund a child’s educationor supplement retirement.
2. Having a Child
When your children are young, having sufficient life insurancefor each parent is critical. If you or your spouse were tosuddenly die, life insurance limits need to be able to pay fordaycare, help fund a college education and cover everydayliving expenses.
3. Mortgage Protection
Life insurance is often purchased to cover the loan amount ofa mortgage so that if you die, your beneficiaries will haveenough money to pay off the balance. However, if you’vemoved into a more expensive home or have remortgaged, theamount you owe the bank may actually increase. Additionally, you may have selected to extend your mortgage term at somepoint to reduce your monthly payments. So if you have a termlife insurance policy with a 20-year limit (as opposed to apermanent policy), and you’ve now extended your mortgageanother 10 years, your life policy could end before your home is paid off. ''Financial Academy School: Real tools, real resources, real social media pagesfor growing a real business, to raise real fund, to promote a real enterprise, to provide real help for people in serious need...
If you’re self-employed, chances are the investments you’vemade in your business have been substantial. If the value ofyour business has recently changed (the purchase of a new building, inventory or equipment), be sure your life insurancelimits are set high enough to cover business debts that yourfamily could be held responsible for when you die. Don’t riskthem having to liquidate assets to cover outstanding debt.
5. Living Single
In the event of divorce, timely decisions should be maderegarding the beneficiaries on your life policy. If you and yourspouse don’t have children, then it could be as simple ashaving the beneficiary on your policy changed. However, ifyou do have children, you’ll want to consider steps thatensure the children are provided for when you die and thismay not be through your former spouse. If you own the policy, then you may only need to request to have the beneficiarychanged. If your former spouse owns the policy, then you mayneed to purchase a new policy.
6. Estate Planning
Most people know that having a will or trust is essential inestate planning. But if you have enough wealth for your estateto be taxed — at either the state or federal level — you shouldconsider the tax benefits of a life insurance policy to helpprovide funding to pay estate taxes by reducing or eveneliminating them. This could remove the possibility of a forcedsale of assets to generate cash. In addition, life insurance canprovide immediate cash for outstanding medical paymentsfrom the last illness, burial expenses, administration and othersettlement costs.
The cash accumulation benefits of a permanent life insurance policy can help fund a more secure retirement, especially ifyou have maximized contributions to other qualified plans.When making a withdrawal, you don’t have to sell the asset as with stocks, and if you borrow against the value, there are nocapital gains or ordinary income taxes involved. Unlike mostinvestments and financial products, life proceeds are passedon to your beneficiaries tax-free.
Always consult with an insurance professional who canprovide you with a personalized assessment based on yourunique life stage and who considers your current and long- term objectives, potential for risk, and financial goals.
Getting the life insurance coverage you need … today As you age, it gets more expensive to buy life insurance.Moreover, certain health conditions can make premiumsincrease — or worse, make it difficult to qualify for lifeinsurance coverage at all. For the same price of a weeklyspecialty coffee drink, you’d be surprised at how much termcoverage you can easily afford.
