Life Insurance Blog | Efinancial

Term Life Insurance Offers the Best Choice for the Young Family

If you’re young and just starting a family, it might feel like you still have your whole life ahead of you.  Sure, things are speeding up, and maybe you never thought life would throw so much responsibility in your lap so fast, but surely there is plenty of time to catch up. 

Not to mention that every time you turn around there’s another “life reality” to face.  Another obligation.  Another bill.  It can be tempting to keep putting off the obligation of life insurance, telling yourself you’ll get it another day.

Big mistake.

Don’t Underestimate Your Insurance Needs

Here’s the main problem.  Even if it seems like you’ve got your whole life ahead of you, young families have more life insurance need than anyone else.  Consider that if you passed away in an accident today, your family is far more vulnerable than an older couple with a children entering or already in adulthood, even though the older policyholders face a higher risk of death.

If you pass away, your family still has a whole lifetime to live without you.  Your spouse may struggle to raise the kids, put them through college, and give them a fair shot at life, all in your absence.  So much could go wrong for them in this scenario.

Add all that on top of the fact that your spouse probably does not yet earn enough money to raise a family on his or her own, and you’re talking about a significant need for protection.

Here’s the Catch 22

Even though your family needs life insurance more than other families do, you are most likely still in the lowest earning years of your life.  With little experience and little time with your company, you have a long way to go to reach your full earning potential.

For this reason, it can be extremely hard to afford a permanent life insurance policy, which is often cost prohibitive.

This is why term life is often the best choice.

What is a Term Life Insurance Policy?

A term life insurance policy is set for a predetermined number of years, and when that term is up, you may be able to renew (if this option is included in your policy) or apply for a new one.  There’s no cash value built into the policy.

Term life is a good way to find affordable coverage for your family while their needs for life insurance are greater than ever.

Also, you might consider a term policy with a conversion option, so if you or your spouse starts seeing chronic health problems at a young age, you can get into a permanent policy without worrying about the risk of being deemed uninsurable at a later date.

Find out more about getting a term policy to protect your family.  Just click here and speak with one of our licensed agents today.

To get a Term Life Insurance Quote or Research how to Buy Life Insurance Online visit Efinancial.com

Supplementing Your Company Insurance with a Small Term Policy

These days, most job-hunters actively seek out employers who offer benefits, like medical, dental, and life insurance.  It's nice to have one less thing to worry about, and the group plans used by employers often leverage great costs savings to help their workers acquire life insurance for very cheap or even free.

But while it's tempting just to brush the issue aside, assuming your boss has it taken care of, not all employer-provided life insurance plans are enough.  It's very important to take a closer look for yourself.

The Policies Are Often Chosen for the Price

For one thing, these life insurance plans just aren't always that good.  Remember that your employer picked out the plan using one main priority – cost.  And we all know that far too often means cut corners.

For instance, most employees don't even have to show proof of insurability to qualify for their plan.  No risk assessment.  No medical underwriting.

While it's convenient for the policyholder, it also means the insurance company takes on a greater risk, hoping to spread it across the group.  And they may have to put a few restrictions on the policy to balance the scales.

Usually Not Customized to Specific Needs

Even a great policy may not be the perfect fit for everyone.  As hinted, group policies are created to satisfy as many people as possible; therefore, you'll be missing a lot of the great riders more personalized policies leverage to suit specific needs.  If you need a tailored plan, this leaves you at a huge disadvantage.

It May Not Be Transferable

What if you decide to change your career, are fired, or get laid off and the policy you've taken out through your company isn't transferable?  Have you even bothered to find out?  This can leave you high and dry, with your family unprotected and give you one more thing to worry about when going through a career change.

You May Not Have Enough Coverage

This is the most common reason a company life insurance policy fails to fulfill its purpose.  While it might provide plenty of coverage for the bachelor or bachelorette working alongside you, if you're married or have children, it takes far more to cover your family's needs in a tragedy.

Determining Your Life Insurance Needs

So how do you figure out how much more life insurance coverage you need?  Well, there are a few different variables you want to take into account before pursuing supplemental coverage. 

First off, consider how much it costs to have a funeral that meets your standards.  Then consider your debts, from your car payments to unpaid credit cards to your mortgage.  What about caring for your family after you've gone by replacing income?  And college educations for each of your children?

Talk to an insurance professional about what else you might be missing, add it up, and you've got a basic idea of how much coverage you really need.

What Are Your Options?

In some cases, purchasing additional insurance through your employer might be a solution, but double check that this new policy will be transferable when you leave.  If not, don't buy it.  Even if it is transferable, shop around for additional options and compare prices and features. 

You don't have to completely forsake the company policy if it's fulfilling some of your current purposes.  Often, all that's needed is a small term life insurance policy for the amount of coverage needed to cover the difference.

Also, look for convertible term insurance, so you can convert your term policy into a permanent policy, like Whole or Universal Life, later on when you want a lasting plan. 

Are you worried that your company life insurance policy may not offer enough coverage?  Want to discuss complementing your current plan with a term life policy?  Speak with a licensed agent today.

To get a Term Life Insurance Quote or Research how to Buy Life Insurance Online visit Efinancial.com

How Can Your Family Turn Your Business Partnership Into Cash If You Pass Away?

Have you ever sat down to consider the fate of your business should you suddenly pass away?  If you're like most business owners, your firm is one of your most important projects in life, if not the most important, and you want it to live on after your death. 

If you have partners in your business, they may be able to carry it on without you.  And that's great, but what about your family?  At the very least, you want to make sure the asset you spent so much time building can be leveraged for their financial benefit. 

Usually this can be solved by the existing partners purchasing your share, but you have to take steps ahead of time to make sure this process goes the way you want; a simple solution to settling your business affairs is to set up a buy-sell agreement beforehand.

What is a Buy-Sell Agreement?

The buy-sell agreement is a business contract drawn up among you and the other business owners that would go into effect upon your death.  On your passing, the partners are obligated to purchase your share of the business from your family members, and your family members are obligated to sell.

This not only helps your family members but helps your partners since running a business with an inexperienced, unenthusiastic family member they don't know is hardly an attractive option.  Your family just doesn't likely have the business chops to make it work.

These contracts not only specify who can buy the company but also which types of events trigger a sale and, especially, a predetermined price at which it will be sold.

Why Use a Life Insurance Policy for a Buy-Sell?

There are other ways the partners can go about purchasing your share of the business besides life insurance, such as cashing your family members out directly or taking out a loan, but these options have their disadvantages. 

For one, a cash-out may not be possible if the funds are unavailable.  Liquidated funds result in undesirable tax consequences; therefore, even the most successful companies keep their money tied up.

A loan, on the other hand, may not be accessible, may require a cumbersome process, and may incur expensive fees.

By far the smoothest most hassle-free option is to use a buy-sell agreement in conjunction with a life insurance policy.  It's simple.  Life insurance policies are taken out on all business owners or shareholders, and premiums are collectively paid to insure every partner in the business. 

So no matter who passes away, the other owners can rest assured their family will be taken care of.

Upon the death of a partner, the death benefits are paid out to the surviving owners or shareholders, and then those benefits are used to purchase the business share at an agreed-upon price, tax-free. 

Problem solved.

To find out more about the options for protecting your business using life insurance, speak with a licensed agent today.

To get a Term Life Insurance Quote or Research how to Buy Life Insurance Online visit Efinancial.com

Why is Permanent Life Insurance So Much More Expensive Then Term Life Insurance?

If you've been looking over the different life insurance options out there lately, it may have come to your attention that most of the more flexible, complex packages come at a greater price.  The knee-jerk reaction is to associate that higher price with higher value, and you surely want that perfect policy for your situation.

These more expensive polices are more often than not permanent policies, which are certainly a lot different than their cheaper alternative, term insurance, but not always necessarily a better choice.  Both have their advantages. 

Let's have a look at why permanent is more expensive and what that knowledge can do for you.

What is a Permanent Life Insurance Policy?

A permanent life insurance policy is, as the name suggests, permanent.  This means that a cash value is built up over the life of the policy, based on an investment portfolio.  A percentage of each premium payment you make is diverted into investment holdings, and interest accrued on these funds accumulates so that later in life it can be withdrawn for death benefit purposes.

In some cases, the death benefit is secure even if you stop making payments.

Payment Structure for Term Policies

Permanent life insurance policies are made possible by a combination of that building interest and by spreading the risk over the life of the policy.  So, you pay a higher premium coming out of the gate, but you also enjoy level premiums even as you age – unlike a term insurance policy, it won't get more expensive as your health risks increase.

And since the policies have a cash value, as long as you keep the policy in-force, you'll always be insured.

What is a Term Life Insurance Policy?

A term life insurance policy is quite a bit different. 

Term life insurance is purchased for a set number of years – let's use a twenty-year term as an example.  If you were to pass away during that twenty-year period, you would be fully covered (based on the amount of coverage you purchased).

However, there is no investment aspect, so when the twenty years is up, you aren't left holding an asset.  The insurance and everything you paid into it is gone and, unless you renew or take out another policy, you're uninsured.

On first glance, this doesn't seem ideal relative to the permanent option, but a look at the payment terms tells why this can create advantages.

Payment Structure for Term Policies

Unlike with permanent life insurance policies, there's no guarantee that your premiums will remain level – at least not beyond the term you've purchased the insurance for.  When you renew, chances are your premiums will go up.

But term life insurance works on the premise that most older people no longer have dependents.  Not to mention that many older people who've already gone through their best-earning years may not need the money; theoretically, they have other assets and funds to support them.

So rather than working on a level payment plan, premiums are closely tied to your current risk level. 

In this way, younger people get very affordable coverage at a low rate; it's a cost-effective solution to protect children while they're still at a vulnerable age and – this is the important part – it allows you to get the same amount of term insurance as you would permanent but a much lower cost.

How Do You Know Which Is Right for You?

Permanent insurance only makes sense for high earners – in other words, if you're young but are already earning a lot of money, then by all means, look into more expensive, investment-based policies, and lock in that steady payment while you're still young.  

But for most people, especially young people, the obvious choice is term life insurance.  You just need enough coverage to get your family through the more vulnerable times of their lives. 

Also, talk with your insurance agent about the option to upgrade your term to a permanent policy later on when you're making more money.  Securing this now ensures that even if your health changes drastically early in life you'll still have access to the benefits of whole life or a similar policy.

Get on the phone with one of our licensed agents to talk about term life insurance options today!

To get a Term Life Insurance Quote or Research how to Buy Life Insurance Online visit Efinancial.com

Can Life Insurance Ever Come in Handy for a College Student?

If you're just starting out in life, you probably don't consider life insurance within the realm of possibility for you.  After all, you're just trying to make ends meet and get through that next class.  You're making sacrifices now – and yeah, taking a few risks – in the hope that you can live a better tomorrow. 

But can life insurance ever make sense when you're a struggling college student?  And perhaps more to-the-point, is it even possible to access it in the lowest-earning years of your life?

If You Have Children, Life Insurance is a Necessity

First thing is first – if you're a young mother or father, attending college or not, life insurance is not something you can push aside for the future, especially if you're single! 

Unless you have wealthy parents or siblings who will see to it that your child gets the life they deserve even if you pass away, it's absolutely crucial to make sure there will be funds left behind to care for them.

Not to mention sending them through college.  If higher education is important for you, it's surely important that your children get the opportunity as well, right?  With you gone, that may very well become an impossibility, but a good life insurance policy can take care of that problem.

Life Insurance Doesn't Have to Be Expensive

Again, you're probably not making much money right now, but like most college-aged parents, you or your spouse are bringing in an income to pay the bills while you go to school.  Even still, will it be enough to afford adequate coverage? 

After all, isn't life insurance expensive?

It doesn't have to be.  Enter term life insurance. 

With term life insurance, your premiums are closely tied to your age and your health, so as long as you don't have any serious diseases, it's very cheap at this point in your life.  After you've graduated and launched a career, you might consider looking at something more complex (and more expensive), but for now term offers a great way to get insured on just about any budget.

There's no cash value with term life insurance, meaning you'll have no built-up value in the policy when the term is up.  But for that entire term, which could run anywhere from one to thirty years, you'll be covered if anything should happen to you.

Policies With a Cash Value – The Sooner, the Better

It's rare, but maybe you're a college student already making a solid income through an online business or have parents helping you out.  If you can afford it, you might consider a more complex policy with a built-in investment account.  Young people cannot usually afford these types of policies – hence the need for term – but if you can, starting off early allows more time for compound interest to work its magic.

It's about starting off life on the right foot – doing the right things ahead of time.

Are you a college student wondering if life insurance makes sense for you?  Pick up the phone and speak with one of our licensed agents to find out if there's a plan to fit your budget.

To get a Term Life Insurance Quote or Research how to Buy Life Insurance Online visit Efinancial.com

Life Insurance for Single Parents

Being a single parent is easily one of the hardest jobs in the world, especially when facing the challenge on a low income.  Raising children is expensive, and it's hard enough making sure there's always food on the table, gas in the vehicle, light bulbs burning, and enough left over to keep the kids busy with sports and clean entertainment.

Between trying to make ends meet and keeping from going insane, a lot of single parents let what may seem like “luxuries of the wealthy” go unattended to, like life insurance, for instance – they know it's a valuable tool, but on first glance, it seems like one of those things you tend to after you've “made it.”

Not so fast...

Single Parents Need Life Insurance More Than Anyone Else

You knew this already.  And maybe you've tried not to think about it because, let's face it, you're overwhelmed enough as it is.

But there are few people in this country that need life insurance more than the single mother or father.  Think about it for a second.

For one, your children are likely in the youngest years of their life, and you know all too well how much it costs to raise a child in the modern age.  Let's assume you have a 7-year-old to care for.  Well, if the worst were to happen and you passed away now, that's eleven more years until they're a legal adult.

And it's important to point out that most kids need financial support well into their 20s in order to gain footing in today's fast-paced world.

Who is going to pay for that?  Even if the other parent is still alive, are they going to be able to cover that on their own? 

The hard truth is that a child without proper financial support may very well end up living a life of poverty.  Proper protection, like term life insurance, can change that.

Then you've got to think about college.  How would it ever be a possible for a child who has lost a parent?

Life insurance can take care of that too, or it can be used to provide a financial windfall or even a lifelong income when they reach adulthood. 

Okay, You Need Life Insurance, But How Can You Ever Afford It?

Herein lies the most perplexing problem of life insurance.  People like you, who need life insurance the most because they've got people depending on them, are often just starting out in their careers.  They realize how much they need life insurance, but they're still smack dab in the middle of the lowest earning years of their lives.

Which makes it very difficult to afford adequate coverage.

The answer lies in your youth.  As long as you're in good health, you should have no problem qualifying for extremely cost-effective term life insurance.

Term life insurance comes with a varied payment scale based on your health and risk factors.  In other words, it's cheaper when you're young and healthy and gets more expensive as you age; this allows you to access the proper amount of coverage for your children when you need it most.

Later on in life, term life insurance will become more expensive for you, but by that time your children will be grown and ready to move out of the home to start lives of their own.  And you can always switch over to a permanent life insurance policy later on when you're making more money – just talk with your provider.

Want to find out more about how to get cheap term life insurance for single parents?  Get on the phone with one of our licensed agents today and get your questions answered.

To get a Term Life Insurance Quote or Research how to Buy Life Insurance Online visit Efinancial.com

A Quick Reminder – Does Your New Year's Resolution Affect Your Life Insurance Premium?

What is your New Year's Resolution this year?  If you're like most people in the America, it has something to do with bettering your health and well-being, becoming a better version of yourself, or adding more excitement and fulfillment to your life.

The sad truth is that many people forget about their New Year's resolution within a week or two, but it doesn't have to be that way.  With a solid game-plan for pursuing and meeting your goal, you can push forward to success and develop a life habit that is more in line with the true expectations you have for yourself.  And kudos to you if you make the choice to do that. 

But you may not realize that when you take on significant life changes, these changes often have direct consequences for your life insurance.  In many cases, they can save you money, and in others, they may actually put your life insurance policy at risk.

Let's have a look.

Quitting Smoking

Perhaps one of the most common New Year's Resolutions in our society is making the decision to quit smoking.  This is a challenging life change that comes with real health benefits – it can significantly increase your life span in a short amount of time!  And it's probably no news to you that smokers get charged a significantly higher premium than people who don't smoke. 

So what does that mean?  It means that if you actually pull this off, you can save a lot of money on your life insurance premiums – for many people, it's another great reason to adopt this New Year's Resolution.

Now, keep in mind that most companies will put you through a trial period to ensure you really have stopped smoking, but go ahead and let them know about your changed status now.  You might even consider talking with companies that specialize in ex-smokers.  Or, some specialists offer special rates for those who cut back drastically but don't entirely quit.

Losing Weight or Getting in Shape

You probably know from your medical underwriting application that your weight, relative to your height and age, and whether or not you work out on a regular basis are also paramount to your life insurance premiums.  This is especially true if you have high blood pressure or other side effects of obesity. 

If you've finally gotten active and think your changing body chemistry might correct risk factors that increased your premiums, get in touch with your provider!

Quitting or Cutting Back on Drinking

Alcohol abuse is another habit that has a huge impact on your premiums.  Much like smoking, frequent drinking has a real short-term and long-term effect on your health.  Not to mention that people who drink are more likely to make poor decisions and/or get into driving accidents.

You don't have to completely give up drinking for this change to reduce how much you pay for insurance either – after all, some experts consider small amounts of alcohol to actually be beneficial to health. 

So again, speak with your provider.

Dangerous Avocations

This one may go both ways.  Perhaps you're an avid skydiver or race car driver who is ready to throw in the towel and settle down; you've already had your fun and don't want to put yourself at risk anymore.  These types of decisions are typical as you age.

As you've probably guessed, alerting your provider may mean lower life insurance rates.

On the other hand, maybe you've decided you want to embrace more excitement in your life.  Maybe you've decided you want to engage in these activities more – that you want to get certified to skydive, scuba dive, or para-glide. 

These decisions can radically alter your experience of life, but they can also increase your life insurance premiums.  And failing to let your insurer know about these high-risk activities can void your policy should something happen to you. 

That's always too great a risk to take, especially considering a quick and easy update solves the issue immediately.

Changes in Need Due to Changes in Business or Life

Many people harness this social milestone as a time to change their life's direction as well.  Take out new investments.  Set up a retirement plan.  Have a baby.  Assemble or disassemble a partnership.  Start a business.  Whatever your life change this year, make sure you've established how it changes your life insurance needs. 

So what was your resolution this year, and have you managed to embrace it and make it a reality?  If so, sit back and think for a moment.  Does this change in your life create an opportunity to save money on your life insurance premiums?  Does it somehow put your policy at risk or render it inadequate?

Give it some thought, and if needed, contact a life insurance professional now to discover where to go from here.

To get a Term Life Insurance Quote or Research how to Buy Life Insurance Online visit Efinancial.com

Using a Life Insurance Policy to Pay for Final Costs

If something happened to you, how would your family pay for your funeral and other final costs?  Would they have the financial means to rise to the occasion in a way that didn’t distract from the grieving process, or would they be stricken with a sudden insurmountable challenge that left them feeling even more overwhelmed and shocked?

Who wants to think about these things, right?  No one does, but unless you want to accept the risk of leaving your family vulnerable in what would surely be one of the most difficult moments in their lives, it’s imperative to plan ahead.  

The Cost of a Funeral

Did you know that, according to the National Funeral Director’s Association, the average cost of an adult funeral in 2009 was $6,560?  And that doesn’t even include the extra touches that most families find a necessity when saying goodbye to someone they love in their own special way – markers, cemetery charges, flowers, obituaries, etc.  Traveling to the ceremony can also incur significant spending.

Funeral costs are one of the most common reasons people take out their first life insurance policy.

However, life insurance goes beyond just these expenses and can cover other additional costs, like replacing lost income in the event of your absence or paying for your children to go to college.

Finding the Right Insurance Policy for Final Expenses

Ready to determine how term life policy, or a permanent policy suits your needs best?  Have more questions about how to best prepare for death?  Get in touch with a licensed agent today.

To get a Term Life Insurance Quote or Research how to Buy Life Insurance Online visit Efinancial.com

A Life Insurance Policy is a Gift That Literally Does Keep on Giving

Yes, of course it sounds cliché, but if you're still looking for a gift that lasts and brings benefits well into the future, long after the snow has melted and the holiday cheer has faded away, you might consider having a look at some of the different life insurance policy options on the markets these days.  After all, most Christmas presents offer nothing more than short-term gratification.  The recipient gets excited about it for a short time and may even get some good use out of it, but eventually they move on to a new interest or hobby.

Or, in many cases, the gift was never desired at all.  You buy someone something you want them to have, or you completely misjudge their desires, and that fancy gadget ends up collecting dust in a closet somewhere, gets donated, or is re-gifted.

Life insurance, on the other hand, is a wise purchase that offers substantial, long-term benefits.  It doesn't get tossed in a back corner to collect cobwebs; it changes a person's life for the better.  Let's look at some different ways a good policy can become a great gift.

Buy it for Them Directly

One way to turn a life insurance policy into a gift is to simply buy it for someone and allow them to name their own beneficiary.  An obvious reason to gift a term or whole life insurance policy to someone you care about is for its original purpose, which is to protect their loved ones in the event of an early death.  You're giving them peace of mind and protection for their family, and what can beat that?

Or, a permanent policy, specifically, can be leveraged as an early retirement plan or investment vehicle.

Make Yourself the Policyholder

Another option is to take a life insurance policy out on yourself and name your loved one as the beneficiary. 

This gives you full control.  You can ask for the benefits to be paid out in the event of your death in one lump sum.  You can even require it be used to pay for something specific, like college.  Also, ask your policyholder how to make the funds available even if you're still alive when the beneficiaries need them most.

Or, how about requesting the benefit be paid out on a monthly basis when you pass away, guaranteeing your loved one an income for life?  If a regular, lifelong income isn't the absolute definition for a gift that keeps on giving, what is?

Use Life Insurance to Make a Donation

Life insurance policies can make great donations as well.  Take a policy out on yourself and name a charity as the beneficiary, or simply gift the policy directly to the charity so they can watch the interest grow.  By doing this in the name of someone who cares deeply about a particular cause, you offer a special gift they will remember.

Or maybe you believe strongly in a particular cause and just want to give.  Getting in the Christmas spirit by taking out a policy for a charity you believe in can be rewarding for yourself as well.

Is it Really What They Want Though?

Okay, let's face it. 

Not all young people are exactly thrilled when they get a life insurance policy rather than the latest hyped-up “toy” or trinket, but what they will appreciate is when they get old enough to claim the benefit or cash it out and reap the rewards of a smart grandparent, parent, or uncle's choice.  It's the long run that counts.

Not to mention that by purchasing a responsible gift with such a long-term value, you're setting a good example for them.  You're showing them that long-term investments are much more important than cheap, temporary thrills. 

And that lesson is a gift that can last forever...

Want to discuss how else life insurance can make the perfect gift?  Talk with one of our licensed agents now!

To get a Term Life Insurance Quote or Research how to Buy Life Insurance Online visit Efinancial.com

3 Ways a Business Can Use Life Insurance to “Hedge Their Bets”

Perhaps you already own a life insurance policy to protect your family and your assets after you’re gone.  But if you’re self-employed or running a business, it’s important to realize that life insurance is a flexible product with many different uses.  It can do much more than take care of your personal affairs.  Let’s have a quick look at some simple options, aside from basic protection, for using life insurance for business purposes

1.  Leverage a Buy/Sell Agreement

 If your business is co-owned, a buy/sell agreement is a great way to relinquish your interest in the company while making sure your family still benefits.  In a scenario like this, the life insurance policy can be used to buy out your share of the company at a predetermined price point, leaving full ownership in the hands of the other shareholders or partners.

No need for your family to get involved in a business they do not understand.

How the buy/sell agreement functions relies a great deal on the structure of your company and how the policy is set up.  Speak with a licensed professional for more information.

2.  Settle All Your Business Debts

Most businesses are not 100% cash-financed, and upon your death any debts you leave behind will be due, especially if you’re operating as a sole proprietorship.  If you don’t have the means to settle these debts with your passing, the responsibility may fall upon your family – at the very least, any other personal assets or savings will be drained to settle, leaving them to fend for themselves.

Fortunately, you can buy life insurance to handle these debts for you. 

3.  “Key Person” Insurance 

If you sit down and think about it for a minute, you’ll likely realize that there are one or two individuals – maybe even a few – whose sudden and unexpected absence would absolutely cripple your company. 

Specialized knowledge, for instance, can have a huge impact on profits in an instant.  One of the founders may be closely intertwined with the company structure.  A truly creative thinker may carry a lot of weight when it comes to generating new ideas, and a high-powered salesperson might make up the bulk of sales.

Also, consider the time it takes to train a new employee to take their place, even if the role can be filled from outside the company.

With key-person insurance, the beneficiary is the company that depends on that person; this is one of the few instances in which a policy can be taken out by a party other than the insured or the insured’s family.  “Key-person” insurance also goes a long way towards reminding an important individual of their value to the company.

Some other things to keep in mind: if your policy comes with a cash value, it might be possible for the business to use it as a way to access loans, and in some cases, the key individual can draw upon the policy or take over ownership when they retire from the company.

These are just some of the ways life insurance can work for your business.  Get in touch with an Efinancial professional to discus the details and find out what else is possible.

To get a Term Life Insurance Quote or Research how to Buy Life Insurance Online visit Efinancial.com

Use Life Insurance to Give Your Child the Gift of Education

Do you have a rock solid plan in place to fund your child’s education?  What if your income changed, impacting the amount of money you can save?  What if you suffered a huge financial setback and had to dig into the money? 

Or, if you’ve already set the money up in an account accessible to your child when they turn 18, do you have any checks and balances in place?  What if they decide not to go to college – do you control how the money will then be allocated, or is it their legal right to use it as they see fit?

Perhaps it’s not something you’ve considered yet, but more and more parents are starting to see the wisdom in using a life insurance policy to fund their child’s education.

Guarantee an Education, No Matter What Happens

The clearest way to use a life insurance policy for education purposes is to simply ensure that your child will not go without the chance of a quality education if you pass away.  This is not the only approach, but it most certainly is a crucial one that can be taken care of with either a permanent or a term policy.

 In many cases, you can even specify that the money be used to fund college.

Use the Policy to Save for College

Life insurance is known for its sheer flexibility as a financial vehicle, and there are other ways to leverage it for a college education as well.  A cash-value policy, like whole life, creates a way to set aside money for future education expenses, and the money will grow over time as these savings are invested as the company sees fit.

An Emergency Loan in Case You Need It when you Choose a Cash Value Policy

Have a college fund already set up?  Hold your secondary college fund in a cash value policy and allow it to continue growing; if something comes up that can’t be ignored, you can simply take out a loan against the death benefit. 

No taxes apply to these loans as long as payments are current, and in many cases repayment may not be required – the loan is just paid off using the death benefit.

The beauty of these policy loans is they don’t t come with the stringent qualifications held by other lending institutions and can usually be accessed quickly and easily.

Tax-free Money through Cash Value Policies

How about tax-free or tax-deferred money?  That’s what you get when you choose to leverage a life insurance policy for college savings – no tax on policy loans and no tax on interest earned!  Try that with a savings account.

Maintain Full Control & Flexibility

Here are some important distinctions.  First off, as mentioned above, it’s possible for you to designate that a death benefit be used for a specific purpose.  In other words, you can require the funds be used for college so that if you do pass away your child won’t be left with a big windfall to blow in Vegas.

On top of that, if you’re using a cash-value policy as a savings vehicle, you maintain full control of the policy.  If you wish, you can cancel the policy and withdraw the cash value at any time, or you can even give the policy to your child, at which point they assume ownership.

Most importantly, if the child doesn’t go to college, you can decide to use the fund for something else.  Not all people are meant for school.  If your kid is set to make a killing with an online business they started in their dorm room, withdrawing the money and using it to fund their start-up might be the best use of your savings.

Or, hey – if their “little tech startup” is making so much money already that they don’t need yours, how about you take the trip to Vegas?

Find out more about the benefits of using a life insurance policy to send your children to college.  Get in touch with a licensed agent today to discuss the possibilities.

To get a Term Life Insurance Quote or Research how to Buy Life Insurance Online visit Efinancial.com

Life Insurance for the Self-Employed: Protecting Your Business and Your Family

When going into business for yourself, you naturally accept a little more risk in your life than the average citizen; it’s what essentially creates the considerable rewards associated with entrepreneurship.  One such risk is a lack of the benefits enjoyed by employed peers who’ve chosen to go the corporate route. 

Most people think of benefits as health and dental, but another is life insurance.  Due to the critical nature of life insurance, its absence cannot be ignored or overlooked.  So what can you expect, and what are your needs?

Expect to Pay a Little More

Employees of big companies often receive their life insurance packages at pretty reasonable rates because they are just tacked onto an existing group policy.  You, on the other hand, can usually expect to pay a little more, and this is a common reason many self-employed individuals fail to get an adequate life insurance policy set up. 

It just seems like another expense on top of all the other costs of running a company.

But keep in mind that employees also have fewer options.  When you shop for yourself, you get flexibility and choice. 

And if you take your time to review the options on the market, you’ll most likely find some extremely affordable solutions out there that fit your situation perfectly – insurance companies tend to specialize and serve different markets; in a nation of entrepreneurs, the self-employed compose a considerable market share. 

Have Employees? 

If you have employees, the cost of life insurance can seem a bit overwhelming, though this is often offset with group insurance solutions. 

Don’t forget the hidden savings of life insurance.  For instance, many of your best employees would probably head off to greener pastures if you failed to offer a competitive benefits package – this makes a good policy an invaluable addition to your company. 

Protect Your Family

The most obvious and common reason for a business owner to purchase life insurance is to protect their family.  A loss of income can be a huge burden on your family should you be gone, taking your business and work hours with you.  Be sure to appoint your family members as beneficiaries if you want them to receive the death benefits.

Ask yourself how much it realistically would take for your family to maintain their current standard of living if you were suddenly gone.  Take a serious look at funeral costs and estimate the cost of handling your final affairs.

Protect Your Business

Perhaps you view self-employment as nothing more than a regular job.  Just like anyone else, you put in your hours and then call it a day.  In cases like these, a business is easily disassembled when you’re gone – your family simply settles your accounts and shuts everything down.

But for others, a business is much more.  For others, it’s about building something to last – not only a legacy but in many cases a source of prosperity for your family for generations to come. 

If this is the case for you, you’ll need to talk to your insurance agent about how life insurance can protect your business too.  With the right amount of coverage, you can not only provide for your family but leave enough money to cover any debts and keep your business going.

Let the organization you’ve built become an asset to your family instead of a burden.

Are you ready to speak with a licensed agent about the possibilities?  Get in touch with a professional at Efinancial today!

To get a Term Life Insurance Quote or Research how to Buy Life Insurance Online visit Efinancial.com

How Does Insurable Interest Apply to Business Relationships?

Perhaps you’re working for a company that has discussed taking out a life insurance policy on you.  Or maybe you own a company and want to know the best ways to protect your business interests.  If this is the case, you’ve likely come across the term “insurable interest,” a crucial concept to understand when looking at the different types of life insurance for business purposes.

Here’s How Insurable Interest Works

One of the basic concepts of life insurance is that the party who takes out the policy must stand more to lose from the insured dying than they would gain if the policy paid out.   

It’s an uncomfortable idea to discuss, but allowing someone to take out a policy on a complete stranger invites the possibility of foul play in the interest of getting a payout.  The person who owns the policy would stand to gain if the insured passed away, and at the very least, it invites “gambling” based on mortality, a practice that was once a reality before being criminalized.

Such practices are immoral and against public policy; therefore, all states require you have insurable interest when you take out a policy on someone’s life. 

Who Qualifies as Having Insurable Interest

The rules and regulations for insurable interest are pretty straightforward.  The most obvious is yourself; you are always expected to have an insurable interest in yourself, though suicide clauses are used to minimize misuse.

Another obvious example is a wife or husband, as spouses are both romantically and financially involved.  Blood relations usually have insurable interest as well.  Creditors – to whom you owe a large debt (obviously they want you to stay alive and pay) are another example.

It isn’t required for beneficiaries to have an insurable interest – just the party that takes out the policy.  Insurers can reasonably expect that someone would not knowingly appoint someone as a beneficiary if they did not have an insurable interest in their life.  Keep in mind, however, that it is the insurance providers call, and they may have their own restrictions and stipulations.

How Does Insurable Interest Apply to a Business?

Business relationships introduce an interesting dynamic.  One such case is that of “key person” insurance.  A key person is someone who the company in question absolutely depends on for their success.  It might be someone with a unique and sophisticated set of skills or specialized knowledge, for instance. 

If the company lost that person without warning, it would affect their profitability, and for this reason they might wish to take out an insurance policy to protect these profits or ease the transition of finding a worthwhile replacement.  Partners also might need to hedge their bets.

In these types of cases, the business or partner has an insurable interest in the individual because they would fare worse with them gone.  They are economically dependant on their good health.

Learn more about insurable interest and how to use life insurance to protect your business.  Get in touch with a licensed agent today!

To get a Term Life Insurance Quote or Research how to Buy Life Insurance Online visit Efinancial.com

Life Insurance as an Estate Planning Tool

Have you considered what will happen with your estate when you die?  An estate refers not only to your land and any buildings or structures on that land but also any money or investments that you leave behind when you go. 

Handling these affairs can be a huge burden on your family.  Inventorying your assets, investments, and personal possessions.  Assessing total value.  Handling estate taxes, which often really eat into the overall value of what is left when you’re gone.  If you don’t have an adequate plan for taking care of these things, a lot can go wrong.

The Role of Life Insurance in Estate Planning

Here’s where life insurance really fits into estate planning – it’s a matter of convenience and flexibility.

Most estates are comprised of very non-liquid assets.  After all, a quick property sale is almost an oxymoron these days, and a business disassembled fast is never a business disassembled properly.  If your beneficiary’s only option is liquidating your holdings to cover costs, a lack of time and inexperience is very likely to result in poor decisions with a negative impact.

Your life insurance policy, meanwhile, frees up the cash needed to handle these affairs in the most favorable manner possible, preserving the integrity of the properties and removing a huge burden.

It’s a crucial tool for making sure your heirs receive or settle your estate without problem.

The insurance policy can be used for a wide variety of different uses.  Paying taxes.  Continued income and support.  Disassembling business interests.  Funding retirement.  Covering the cost of education for your children.

It’s the ultimate flexibility.

Circumvent Large Estate Taxes

Another critical issue with estate planning is the estate tax.  Though not a huge concern for smaller estates, those with larger estates should take heed.  The problem arises when beneficiaries face the burden of paying taxes on their inheritances, which are then subject to capital gains tax. 

When your net worth is unusually high, they may be completely unable to pay the tax and be left with a very insignificant amount of their inheritance, if anything at all.  This is, of course, not what we have in mind for our beneficiaries when we go.

Offset this effect by taking out a policy with an adequate death benefit so the capital gains and estate tax will be taken care of without your beneficiaries being forced to liquidate and sell assets. 

Calculating Your Coverage

Sit down with your estate planner and a life insurance professional to determine exactly how much coverage you need. 

Consider current prices associated with funerals and other final expenses.  The cost of education for your children.  Replacing income lost so they can continue the quality of life they’ve learned to depend on.  Settling debts.  Finalizing business arrangements. 

Then go through all the specific details of your estate and calculate the cost it will take to either disassemble or manage all assets, properties, and investments you own.

Leave no stone unturned.

Which Type of Insurance to Consider

All life insurance policies can be used to make sure your heirs end up with your estate in full. 

For some, whole life is a good choice because it is permanent but it comes at a hefty cost and can be cost prohibitive.  Term life, on the other hand, can often found at a much cheaper cost.  Just make sure you’re coverage has a renewable option if you expect to keep coverage going after it’s set to expire so you don’t go unprotected. You might even consider sticking to term with a conversion option to minimize the risk of outliving your insurability. Conversion options allow the policy holder to convert to another type of life insurance. 

How does life insurance fit into your estate planning?  Talk with a licensed agent today to tell your story; they’ll tell you which options fit best.

To get a Term Life Insurance Quote or Research how to Buy Life Insurance Online visit Efinancial.com

Life Insurance and Divorce – Protecting Yourself After the Split

No one can deny that a divorce is one of the most painful, trying events an individual can go through in a lifetime.  Emotions surge and sometimes we get lost in the chaos of unraveling a life we worked so hard to build.  Sometimes things slip by unattended to during this time, and that’s understandable.

But one thing that should never be allowed to slip by without your full attention is how this divorce affects the status of any current life insurance policies.  As you no doubt know already, it’s crucial to make your family’s safety and security the main priority here.

Preserving Your Current Premiums

For many divorcees, making the most out of the pre-divorce insurance policy will mean keeping it in-force.  The reason for this is that holding on to that older policy usually means you preserve the original rates.  Starting a new policy can mean  a potentially higher premium due to changed circumstances (like declining health or increasing age, for instance).

To protect your insurability, it might be best to work with your spouse and keep the old policy going.

Will You Need Additional Insurance?

As with any huge life change, it’s always important to reevaluate your life insurance needs after the divorce.  If you are now caring for your children on your own, it may be imperative to get more coverage so they aren’t left high and dry if something happens to you as the responsible parent. 

Check with your provider to find out if you have enough insurance to cover your needs.  Do this today!

If Possible, the Beneficiary Should Take Over the Policy

The use of the death benefit is paramount to your family’s security should anything happen; for this reason, do not leave anything up to chance.

If you are the beneficiary and will need them if your spouse passes away, you should also take over full responsibility for payments and make sure they are always made and on time.  In some cases, this might mean a change of ownership and/or a change of beneficiary. 

No matter how much you trust your ex and their judgment, make 100% certain these details are handled in case the time comes when they are unable to stay current on the payments, putting you and your family in jeopardy.

Protecting Yourself from Negligence

If there is no way to transfer ownership of the policy and you are the beneficiary, talk with the provider about instant payment notification – they typically have systems already in place for this.  In some cases, such as when you are an alimony recipient, you may be able to add a clause stating the policy cannot lapse without giving you a chance to intervene.

Appreciating the Importance of Alimony

Maybe you’re on the other side of the coin and paying alimony to an ex-spouse taking care of the children.  In some cases this might feel unfair, depending on personal circumstances, but resist the urge to get caught up in your emotions and remove a dependent ex as beneficiary to the policy. 

For one thing, it’s important to account for loss of alimony income should something happen to you.  Such a loss can negatively affect your family’s standard of living and leave them in a tough financial position during a time of mourning.

Think of the children first.

Changing Your Beneficiary

If you wish to completely remove your ex-spouse as beneficiary of the death benefit, this should be a pretty simple task.  If you have children, you can typically designate them.  If none are adults, you might want to set up a trust and delegate the payment responsibility to a trusted friend or advisor.

However the insurance issue ends up getting dealt with as you disassemble your marriage, do make sure that it gets dealt with right away.  Neglecting to handle this challenge before it becomes a problem can have dire consequences for your family and end up hurting those you love most.

To learn more about the different solutions available to you, speak with your current life insurance provider or get on the phone with one of our licensed agents.

To get a Term Life Insurance Quote or Research how to Buy Life Insurance Online visit Efinancial.com

6 Tips for Singles Who Want to Get the Most Out of Life Insurance

If you’re unmarried and without dependents, you may have the impression that life insurance is a luxury rather than a necessity.  In your situation, it simply doesn’t take precedence in your life. 

Not everyone needs life insurance – sure.  But one thing is for certain: everyone should at least be thinking about life insurance early on in life.  Because if you don’t know the facts and the possibilities, you cannot make educated decisions about your long-term financial plan, and that can be downright dangerous. 

Let’s look at some tips and points of interest when shopping for life insurance as a single adult.

1.  Protect Your Insurability

It’s important to mention one of the greatest incentives for purchasing life insurance when you are young and single; simply put, life insurance is cheaper when you still have your health and vitality.  As you age and health declines, the ability to get these cheap rates disappears – get a head-start and lock in your rates, especially if you plan on getting married and think you’ll have dependents later on.

2.  Term Life – Always a Good Buy for Young People

Term life insurance is typically the best buy for young people who haven’t yet reached the peak of their earning power.  It’s enough to solve any immediate needs should something sudden and tragic occur, and it is very affordable – term comes with no cash value but is guaranteed for the life of the term stated, whether that be three or 30 years.

Note that it can become more expensive if you renew as you age, but your rate will be locked in until the term is up.

3.  Consider Term Life with a Conversion Option

Here’s a hot tip: get the best of both worlds by purchasing term insurance with a conversion option.  This allows you to access a dependable term plan now at affordable rates, and then later on when you’re making more money you can convert to a permanent insurance policy.

4.  “Insure” Your Debts

One neat use of a life insurance policy for a single person is to “insure” your debts.  For instance, if someone close to you has co-signed on a house or car for you or is tied to your debts in some other way, the last thing you want to do is leave that hanging over their head when you go.

Life insurance can be a way to wipe the slate clean should an accident happen.

5.  Behavior is Your High-Leverage Variable

This is an extremely important point for young people. 

The most easily-controlled variable concerning the cost of your insurance policy is your lifestyle and consistent behavior.  For most of us, basic good health comes along naturally with youth, but if you drink to excess, smoke on a regular basis, drive irresponsibly, and engage in dangerous avocations (sky-diving, stock racing, rock climbing, etc), you can expect to pay higher premiums.

All are high-risk variables that make it more costly to insure your life.  The most obvious way, therefore, to get a cheaper policy is to change these behaviors. 

Just something to keep in mind.

6.  Single Parents and Older Singles

Do you have children?  If so, life insurance may be even more important for you than it is for a married couple, as an unexpected tragedy could leave your child on his or her own.  Life insurance can provide a future even if you’re gone.

As far as older singles go, insurance money can help to leave something behind for grandchildren or provide for long-term care.  Many choose to start an education fund for their grandchildren.

Want to learn more about how life insurance can come in handy even if you’re unmarried and/or have no children?  It’s best to just get on the phone with an Efinancial professional and explain your unique situation, as everyone’s needs are different. 

Get in touch one of our licensed agents now.

To get a Term Life Insurance Quote or Research how to Buy Life Insurance Online visit Efinancial.com

Five Reasons People Buy Life Insurance Around the Holidays

Thanksgiving, Christmas, and New Year’s bring visions of happiness.  Of feasting on great food with friends and family.  Of exchanging presents.  Of holiday songs and kind wishes.  Of big hugs.  Of popping a bottle of good champagne and make a toast to the year to come.

For many, life insurance, which often brings up the uncomfortable question of death, seems an unlikely subject to arise. 

But there are several reasons you may actually find your mind wandering to life insurance more in the middle of the great holiday spirit.  There are reasons why, in fact, it makes more sense to think about life insurance planning during this time, even with all the other responsibilities on your plate. 

1.  Reflecting More on What's Truly Important

While it's nice to get caught up in the rush of the holiday spirit around Christmas and Thanksgiving, these celebrations also affect you in another way, especially as you get older and take on more responsibility. 

 

Spending time on what's important with who is important – the people you love most – reminds you there's a responsibility to care for them even after you're gone.  That short-term thrills and everyday pleasures should take second-place to protecting your family and providing security.

2.  A Reminder of Mortality

With the passing of the holidays, and with the passing of the year, comes a reminder of your own mortality.  As much as you want to focus on the simple act of sharing a laugh with people you love, you can't help but notice that yet another year has gone by.  That you aren't getting any younger.

That the need to provide your family with protection has become that much greater. 

Fortunately, a good life insurance policy allows you to pass this ever-growing worry over to those who've made it their business to deal with these life realities.  That way you can just focus on making the most of the passing time.

3.  Taking Advantage of Industry Changes

Like many other changes that come with the end of the year, January also brings new regulations and laws into effect – never has this been true than for 2013.  Many wise shoppers plan to use this knowledge by jumping in beforehand and enjoying lower rates for year to come.

January also often introduces new market features and new polices that may not have been available before.  Take advantage!

4.  Life Insurance Makes a Great Gift

Again, life insurance may not be the first thing you think of in the midst of the happiest time of the year, but consider what's really important in the long-run.  A brand-new iPod?  A Christmas vacation?  A laptop?

Or a life insurance policy designed to cover your child's education, guarantee an income, create a first investment, or leave a young person a financial windfall on their 18th birthday?

The truth is that traditional and more creative life insurance polices alike introduce plenty of unique gift options that represent a truly meaningful and valuable gift that lasts.

5.  A Cultural Milestone and Time of Change

The holidays, and especially the New Year, signify a cultural milestone and a time of change.  It's time to take stock of all that's happened over the last year and the direction you want to go. And then set down a plan for action.

Part of this year-end “ritual” should include looking over your financials, and life insurance policies are a big part of that.  It's time to consider how last year's changes affect your policy and determine whether your old policy needs to be upgraded, exchanged, or supplemented in order to continue fulfilling its role in your family's financial plan.

Are the holidays inspiring you to consider what's important in life? About your family's need for protection?  Have you considered the value that gifting a policy can create for someone close to you?

Whatever the reason for your thoughts wandering to life insurance this time of year, one of our licensed agents can answer all your questions to make sure you and your family are taken care of.

To get a Term Life Insurance Quote or Research how to Buy Life Insurance Online visit Efinancial.com

Save Money by Conducting a Simple Year-End Review of Your Life Insurance Policy

The year is coming, or perhaps has come, depending on when you read this, to a close.  Like most people, you're wrapping up your financial affairs and starting to think about taxes.  You're looking over your profits and losses for your business.  You're considering how far the last year has taken you, professionally and personally, and deciding where you want to be when next January comes around.

It's a time for goal-setting, for making big life changes, for setting New Year's Resolutions, and for putting down a plan to carry them to fruition. 

And although you're busy during this time, one more thing you should absolutely not overlook is the necessity of doing a year-end review of your life insurance policy.

Any Life Changes That Would Affect Your Life Insurance Needs?

The first thing to consider is how the past year's life changes may have affected your life insurance needs.  Is it time to change a beneficiary?  Did your family bring a new child into the world this year, or are they going to next year? 

What about business or job-related changes?  If you've had a change in income, this can drastically alter the amount of coverage needed to keep your family comfortable if something happens to you.  It may also call into question the need for a retirement plan, which may or may not include a life insurance component.

What's Your Current Health Status?

Changes in health can also bring up a lot of issues pertaining to life insurance. 

Policyholders who are becoming more aware of the aging process or who are getting sick may feel a need to obtain more coverage or lock in a more long-term policy before it's too late.  On a better note, an improvement in health may even represent an opportunity for life insurance premium savings.

Also, consider whether any life changes made over the past year may have affected your risk levels.  For instance, if you've quit smoking, cut back on your drinking, improved your driving record, taken up a workout program, or given up other at-risk behavior, you may be able to go to your provider and get a better rate.

The New Year can be a great time to request a physical with your provider and revisit the medical underwriting process.

Is It Time for an Upgrade?

Life insurance is an evolving industry, with a continuous stream of new policy options hitting the market over the years.  For this reason, there may be new options out there that make better sense for your situation, even if you haven't developed greater need over the past year.  Use this time to catch up with market trends and ascertain whether your old policy is outdated or if an upgrade makes better financial sense.

No Insurance? Now is the Time!

Maybe you don't even have insurance yet.  The year's end is a great time to take initiative.  Not only does it make a great New Year's Resolution for starting off 2013 with a bang but new regulations in the industry will go into effect in January; in many cases, that means increasing rates. 

By locking in a life insurance policy now, you can secure current rates and guarantee them for a significant length of time.

A year-end review.  It's a crucial component of managing any long-term life insurance plan.  Have a look at your policy, and get in touch with one of our licensed agents if you have any questions or would like to explore other options that may be more suited to the changes that have occurred in your life over the last twelve months.

To get a Term Life Insurance Quote or Research how to Buy Life Insurance Online visit Efinancial.com

Starting off the New Year Right with a Life Insurance Policy

The New Year is upon us, and people are taking a look back at 2012, reviewing the progress they've made and reevaluating how they'd like the next year to go. 

You know the drill.  Everyone you know is determined to finally make that change they've been promising themselves forever.  They're going to lose some weight, tone up, or simply start eating better.  They're going to kick the cigarette habit, once and for all, or cut back on those late weekends.

Unfortunately, in our society, we often make good on these New Year’s Resolutions for a solid week or two and then it's back to business as usual – it's surely no news to you that gyms make more sales this time of year than in any other month, and that doesn't mean gyms are packed until next January by any means.

How about a New Year's Resolution you can act on now and easily keep “in-force?”  How about a New Year's Resolution concerning a responsibility most people put off their entire lives, significantly affecting the well-being of their family?  Something you can get out of the way and be done with once it's put in place, with little or no risk that you'll eventually “give up” on it...

How about finally sitting down and taking out a life insurance policy so that if anything should happen to you, either this year or ten years from now, you can rest assured that your family will be protected?

The great thing is that a solid life insurance policy can do a lot more than just offer protection for your family, although that's obviously crucial.  The right policy can also do a lot of the other things that we put off until tomorrow, things we tend to think about around the year's end.

Have you been putting off investing, for instance?  A permanent life insurance policy can act as an investment and, given time to grow, build up interest to produce a solid return over the years.  Been meaning to squirrel away an education fund for your children?  Life insurance policies can be great for making sure your child goes to school no matter what happens. 

How about retirement planning?  Have you been ignoring that issue as well?  The right life insurance plan can make sure you end the rat race with enough to live well into old age, and if you still haven't got around to socking away funds for an emergency lifeline, many whole life policies offer easily-accessible policy loans, a way to access cash anytime something in your life throws you off-course and threatens your well-being.

Bettering yourself around the New Year is important.  You absolutely should take this opportunity to change your lifestyle and your habits so you can enjoy more health and happiness in your life.  In fact, you shouldn't shy away from taking these “life reviews” just about any part of the year.

But life insurance is a responsibility that far too many ignore, and by sitting down with a qualified agent today to discuss your options, you can get it “locked in” now and then refocus on your day-to-day life.  It's done.  A significant life change that sticks.

To discuss your life insurance options and how you can start off 2013 on the right foot, get on the phone with one of our licensed agents today!

To get a Term Life Insurance Quote or Research how to Buy Life Insurance Online visit Efinancial.com

When Is the Best Time for a Pregnant Mother to Get Life Insurance?

With a bundle of joy is on the way, many parents feel a seismic shift in their priorities for the first time.  It's not just all about you anymore, right?  The well-being of another person, a very fragile one, is now at the forefront of your life.  Suddenly, you’re wondering if the most sacred of all beneficiaries would have enough in the event of your untimely death, and the thought of them being left vulnerable is enough to turn your stomach. 

Planning for life’s end is never an easy subject to approach.  No doubt about that.  For many, however, a pregnancy is just the kick in the pants needed to finally buy Life Insurance. 

Ensuring your newborn’s financial security is part of being a responsible parent. It's that simple. And if you are planning on becoming pregnant or are already pregnant, seeking out a Life Insurance policy should be a priority.

 Of course, buying a policy during a pregnancy is in many ways the same as buying a policy at any other time of your life; the basics for any first-time policy buyer should be considered. All responsible buyers should be educated about what they need life insurance coverage for and the amount of insurance coverage needed to provide adequate protection.

 That said, there are some special considerations when purchasing a policy for a pregnant mother.  First off is the “when.”

If Possible, Don’t Wait Until You’re Pregnant

Perhaps the ability to make that judgment call has passed, but realize that the optimal time for considering coverage is before you are even pregnant. 

By going through the medical underwriting process before pregnancy, your medical exam results show pre-pregnancy results which may be better than while pregnant.

Second Choice - First Trimester

If unable to purchase a policy before the pregnancy, the next best option is to apply during the first trimester.  Obviously, if this time period is missed, the second trimester would the next best option. 

What About the Newborn?

An immediate concern of many parents-to-be is whether or not a Life Insurance policy should be purchased for the newborn.  Some companies recommend it; others are indifferent. It's completely up to the potential policy holder so discuss the advantages with a professional.

Since Life Insurance is typically meant to secure the loss of the primary breadwinner’s income, and newborns aren’t typically bringing home any bread, many see the use of a newborn life insurance policy as limited.  Some life insurance policies, on the other hand, can work great as an investment vehicle for your child to leverage later in life.

Researching and shopping around can pay off a lot before making a final decision.  Ready to talk to someone about your options?  Get in touch with one of the professionals at Efinancial today.

To get a Term Life Insurance Quote or Research how to Buy Life Insurance Online visit Efinancial.com

How to Deal With Term Life Insurance After a Divorce

If only we lived in a world where all marriages really were forever.  The uncomfortable truth, however, is that a very significant number of marriages these days do end in failure, leaving couples to unravel their personal and financial affairs and start over again.  If this is you, know that you’re not alone, and at least you can rest assured that insurance providers deal with complicated situations like yours quite often. 

The answers for your particular situation are just waiting to be discovered.

One thing is for certain – no matter how stressful this current time in your life, it is imperative you take a hard look at your financial ties and, especially, any life insurance policies.

Are You Educated About Your Policy?

Often, marriages work like a partnership where different responsibilities are split between the two of you, and that can be a good thing, but all too often that means one spouse does not fully understand their life insurance policy or how life insurance works. 

First off, realize that most young families have a term policy.  As you may know, term life insurance comes at a far cheaper price than whole life yet still offers fantastic coverage – it’s usually the recommended coverage for those who are still in great health and have not yet reached their full earning potential.

Do You Have Children?

If you and your ex-spouse had children together, preserving the integrity of your policy is of the utmost concern.  Make sure the policy is never given the chance to lapse.  You may trust your ex, but the risk is just too great; for this reason, you might want to consider changing ownership of the policy or, at the very least, asking the insurance provider about getting automatic notification of payments.

If you don’t have children, it might be time to simply take  your own insurance policy and sever your financial affairs from your ex-wife or ex-husband completely.   

Read the Divorce Decree

Make sure you know where you stand based on the settlement agreement of your divorce.  Did the judge order that you stay on as a beneficiary of the policy (or vice versa)?  Does this order only preserve your beneficiary status for a certain length of time? 

If you’re being “forced” to pay on a policy with your ex as a beneficiary, it may be somewhat natural to feel resentful – divorces are very emotional.  But keep in mind that this is not about you – or your spouse, should you end up keeping them as a beneficiary.  It’s usually an order put in place to make sure children are protected if a parent passes away.

And failing to follow the court order can get you in big trouble.  It is considered a legal contract, and refusing to acknowledge may land you in legal trouble.

Consult the Pros

The best thing you can do following a divorce is contact your life insurance provider.  Since it is a term policy, it won’t be as complicated as sorting out a permanent policy – you may be able to sever your ties completely and take out your own policy or simply go your separate ways when renewal time is up.

Don’t Wait for Things to Go Sour

The bottom line is that both spouses should be educated about life insurance and your policy should be reviewed at every major life milestone.  So, if you’ve been taking a position in the background on this important financial matter or have been lazy about monitoring your policy, it might be time to get up-to-date.

To find out more about your options or to shop for a new term policy, should you want to get your own insurance, get in touch with one of our knowledgeable licensed agents today.

To get a Term Life Insurance Quote or Research how to Buy Life Insurance Online visit Efinancial.com

Do Children Need Life Insurance?

You may already know the value of a life insurance policy for yourself and your spouse or partner. Life insurance can help replace your income if you die. It is often essential to the continued survival of your family.

But what about your kids? Do children need life insurance too?

A Common Misconception about Children and Life Insurance

Many people see life insurance as simply a source to replace the financial income of an individual. Since children don’t provide any income, their insurance needs are often neglected.

This can be a mistake. While income replacement is a valuable aspect of any policy, it is not the only reason to purchase insurance. Life insurance can also help pay off bills that are left behind after the death of a loved one. For instance, you may be left with medical bills and the cost of a funeral.

If you can’t afford to absorb these kinds of costs that could arise from the sickness of a child, you should consider purchasing life insurance for your children. It could help alleviate financial stress from an already emotionally fraught time.

Other Reasons Children Might Need Life Insurance

There are several other reasons that life insurance for children can be a sound decision.

The cash value of a permanent life insurance policy act as a savings tool. And by purchasing a policy when a child is young, you are giving the investment portion extra years to bear additional financial fruit. This can help set up your child for an earlier retirement or let him or her cash out to cover a large expense later in life.

It can also be invaluable to purchase a policy early before any inherent health issues may become apparent. Imagine that your son or daughter is diagnosed with a health condition as a child. This could make obtaining life insurance difficult for the remainder of his or her life. However, if you purchased a policy early, before the diagnosis, your child will remain insured for the entire term of the policy. If you purchase permanent insurance, this can be for your child’s entire life.

While life insurance for children may not be right in every situation, it can be a valuable purchase for certain individuals. It is important that you carefully consider all of your options when shopping for life insurance for yourself and those closest to you. If you have any questions, it is important that you find a life insurance expert that you can trust to answer them for you.

To get a Term Life Insurance Quote or Research how to Buy Life Insurance Online visit Efinancial.com

Facing the Responsibility of Settling Final Affairs for a Loved One

When someone you love passes away, being appointed to settle their final affairs introduces a challenging responsibility.  You’re in the process of grieving the loss of someone who had a huge impact on your life – no one who wasn’t extremely close to you would appoint you to handle this major part of their existence on Earth. 

It’s a huge responsibility, but it’s also a huge compliment.  When someone entrusts you with such a task, there’s no doubt they had more faith in you than most anyone else on this Earth.

Help Them Plan Ahead

Of course it’s not always possible, but if a wife, husband, parent, or someone else in your life knows their time is coming, it pays a lot to plan in advance. 

This is never an easy subject to broach, but if you spend a lot of time around the individual in question, conversations of impending death are sure to come up eventually.  Only you know your relationship and whether or not the time is right for such a heavy discussion.

If they are willing to plan ahead, find out if they have an insurance policy in place to handle their final affairs.  Often, term policies with a low face value can be used to cover average funeral costs alone, and they come at a great price.

In cases where death is near, it may be quite a bit more expensive, but often policies even for the chronically ill can be found.  This is possible by making the premium payments increase the longer the policy is held – if the person passes away within the first few years, it will be completely voided in some cases.

Don’t worry – the insurance provider will explain all of this in detail.

If they’ve already got a policy, make sure they tell you exactly where the paperwork is and how the process is to be initiated after they’re gone.

Carrying Out Their Final Wishes

If the insurance policyholder is already deceased and you’re now in charge of handling everything, get in touch with their insurance company immediately to notify them of the passing.  You will be asked to provide specific information about the deceased, furnish a death certificate, fill out an application for death benefits, and show identification. 

It should be a pretty straightforward process, and the agent will walk you through everything; in some rare cases, further details may be needed.

Calculate the True Costs

Once you know how much insurance money is available, it’s time to calculate the final costs.  This is often far more complicated than it seems at first, so prepare for some surprises.  Final costs may include cemetery fees, costs for the funeral ceremony, purchasing a gravestone marker, flowers, and even travel costs for getting particular family members to and from the service.

The insured may have other final wishes they want you to carry out that are particularly important to them, and depending on the nature of their wishes, these requests may incur additional expense as well.

Find a Good Funeral Home

After determining costs, it’s to find a funeral home that can work within the budget.  In some cases, this may have been specified ahead of time by the deceased – this is another good reason to plan if possible.

Let the funeral director know that the funeral is covered by insurance proceeds and they’ll find something that works within your parameters.  They can also usually work with you if they know you’re still waiting for the policy to pay out; it’s a routine part of their business.

After the funeral affairs have been paid for, there may still be some money left over, which is certainly better than not having enough – it means the deceased has budgeted wisely.  In these cases, the leftover funds will typically be turned over to you or another beneficiary to either keep or allocate as seen fit.

The Importance of Insurance

You’ll likely find that handling someone’s final affairs is a very trying process, but one thing it will give you a great appreciation for is how much more difficult it would have been had there not been funds in place to take care of everything, especially considering the high costs of a funeral in modern-day America. 

If you or someone you know would like to find out more about implementing an insurance plan that covers final costs, get in touch with a licensed agent today.

To get a Term Life Insurance Quote or Research how to Buy Life Insurance Online visit Efinancial.com