Posted on Fri, May 25, 2012
If your term life insurance coverage is getting ready to expire, take a close look at your options before it does. Letting the policy lapse before planning for your ongoing life insurance needs can leave you uninsured and unprotected.
Weigh Your Choices While You Can
While you still have a term policy in force, you may be able to:
Take advantage of any conversion or renewal options of your current policy
If you have a guaranteed renewal policy, you can renew for another term without having to prove insurability—which can be crucial if you’ve developed health issues. The premium for the new term will be higher than your previous premium because you’re older, and you may have to switch to a more-expensive annual-renewable plan rather than a level-term plan. But if you have major health problems, the guaranteed coverage could make this your best—or possibly only—option.
If you have health issues, don’t assume you’re going to qualify for underwriting. It may be that the only way you can get insurance—other than paying for very expensive policies that will cover anyone—is to stay with your current carrier. You want to know that before the policy expires!
Some policies also allow you to convert to a permanent policy (e.g. whole, variable) at the end of your term. Permanent policies have advantages in certain situations, and—if you have a conversion option—you should talk with a financial planner about whether a permanent policy would best meet your objectives.
Shop Around for the Best Deal on a New Policy
If renewal or conversion benefits aren’t causing you to remain with your current carrier, it pays to look around for better deals on term policies than the current carrier offers. Websites that aggregate quotes from multiple carriers allow you to easily compare rates at your convenience. And the competition among carriers drives rates down.
Of course, you can do this comparison shopping after your current policy expires, but that would mean you would either be without life insurance coverage or you would have already bought a new policy with your current carrier—probably at higher rates than if you had shopped around. At that point, if you found a better rate, you’d have to incur the first-time charges—not to mention deal with the hassle—of opening another new policy.
When comparing policy rates, be careful to pay attention to all the terms of the life insurance coverage—not just the price and the death benefit amount. There is price differentiation among carriers, and that’s why shopping around is so important. But if you find significant variation in price, chances are there’s a reason for it, probably related to policy provisions.
Tell Your Current Carrier What You’re Doing
Call your current carrier and discuss the situation with them. They may possibly be willing to offer discounts to entice you to stay with them rather than go to the competition. If you have renewal or conversion options, they can discuss your options based on the specifics of your policy.
The Bottom Line
There’s no sense in letting life insurance coverage insurance expire without first examining whether you still need it. If you do still need coverage after your current policy expires, you will have lost the opportunity to:
- take advantage of renewal and conversion options
- possibly get a better rate on a new policy from your current carrier than you can from the competition
- qualify for underwriting when you can’t otherwise.
If your expiration date is approaching, make sure to consider your ongoing life insurance coverage before it’s too late. For a helpful policy review visit Efinancial.com or give us a call at 866-765-4296.
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com
Posted on Wed, May 23, 2012
Have you ever bought a bad melon? It's tough choosing just the right one especially with so many old wives' tales about how to tell the difference between a ripe melon and a rotten melon. Check the color of the rind. Squeeze the melon. Sniff the melon. Weigh the melon. But do any of these actually work? How do you know which method will mean taking home a ripe melon?
Buying a life insurance policy might sometimes feel like trying to find a good melon. Your friends tell you to look for one feature while your neighbors tell you to look for another and the insurance agent insists a third feature is most important. Which feature means you end up with the right policy? Thankfully, insurance isn't a fruit and finding the right insurance policy is a bit easier than making sure you get a ripe melon. A few key factors can make the difference between a good and not so good life insurance policy.
Premiums
A term life insurance policy is so named because it lasts for a specific term — 5, 10, 20 or 30 years typically. Shorter term life insurance policies will have lower premiums because the insurance company is assuming less risk. The longer the term, the more expensive. Life insurance costs also change as you age. Young and healthy people generally have lower premiums because they are a lower risk.
Guaranteed Renewal
With term life insurance, consider a policy that is guaranteed renewable, sometimes called guarantee renewability. You want this benefit because it means you can renew your policy when it expires without a health exam. As long as you have paid your premiums on time, you can simply renew the policy for a new term.
A life insurance policy with guaranteed renewability has a tremendous benefit for anyone buying life insurance since health conditions can arise at any time and at any age. If you wait to buy life insurance until after you develop a health condition, your premiums will be much higher and you may not qualify for guaranteed renewal.
Insurer's Financial Stability
We check out everyone these days and the Internet has made it easier to do this for everything from your dentist to your child's teachers. Make sure you check out any potential insurer as well. You want to choose an insurance company with a solid financial background and financial stability.
Credit rating agencies like Standard & Poor's or A.M. Best can provide good information about a company's credit rating. You can also check out a company through national organizations like the National Association of Insurance Commissioners and your state's regulatory agencies.
Buying a life insurance policy isn't such a mystery once you know what to look for. Understanding terms like premium and guaranteed renewal are sort of like the equivalent of squeezing and smelling those melons in the produce department. Thankfully, once you know what to look for in term life insurance policies, you won't ever buy a bad melon, er, life insurance policy again.
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com
Posted on Tue, May 22, 2012
What do you do when you need life insurance coverage immediately? One great option for people looking for fast and easy life insurance coverage is no exam life insurance. The application process for traditional life insurance policies, including the medical exam, can take anywhere from four to six weeks. When you opt for a no exam life insurance policy, you can often get a decision from the insurance company within 24 hours. Here is some information to help you decide if no exam life insurance is right for you.
Helpful Tips While Looking for No Exam Life Insurance:
1. How Much Insurance Do You Need?
A good first step is to find out exactly how much life insurance you need. Depending on your situation, you may want to use Efinancial's convenient online Life Insurance Calculator. It can be a great way to get an idea of exactly what you need to cover your family's financial obligations in the event of your death. Keep in mind that sometimes there is a lower limit placed on no exam life insurance policies, so you want to be as accurate as possible to keep your benefit total from becoming excessive. Your goal is to make sure you are adequately insured, but not over-insured, to keep your premiums as affordable as possible.
2. What Type of No Exam Life Insurance Is Best For You?
Efinancial's licensed agents are happy to discuss the differences in policy types, as well as your particular situation, to help you choose the best policy for you and your beneficiaries. However, it is always good to have a little knowledge ahead of time so that you can have a better understanding of what your options are. There are three types of no exam insurance.
- Guaranteed Life Insurance - You will not have to undergo any medical evaluation or answer any health questions. Almost anyone can qualify for a Guaranteed Life Insurance policy.
- Graded Benefit Life Insurance - This application will ask a few health questions in order for the insurance carrier to better complete their risk analysis. You will still be able to avoid the medical exam.
- Simplified Issue Life Insurance - This application process takes slightly longer than the above two but that's because it asks a few more questions in order to get an idea of your current health history and lifestyle. However, you will not have to undergo a medical examination. This is the most affordable of the three options, so it might be a good place to start.
Just as your car insurance company wants to know what kind of driver you are in order to determine your monthly insurance premium cost, a life insurance carrier does the equivalent, using your lifestyle and health history as a way to measure their risk. By choosing to skip a medical examination, a candidate for no exam life insurance is considered a higher risk and therefore premiums for no exam life insurance are slightly higher.
3) It's Time To Fill Out An Online Quote or Speak To a Representative
Once you have determined the amount of life insurance you need, and have educated yourself on the three types of no exam life insurance policies, you are ready to move forward. You can request a quote online or call to speak with a licensed agent. Agents are available to answer any of your questions and help you find coverage to fit your needs.
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com
Posted on Mon, May 21, 2012
Mortgage life insurance is a form of term life insurance that pays off your mortgage if you pass away before the mortgage has been paid off. This type of term insurance is appealing to many consumers because it provides vital protection for their family and home.
But how does mortgage life insurance compare with traditional term life insurance?
Does it truly provide more security?
The Problems with Mortgage Life Insurance
Mortgage life insurance shouldn’t be confused with private mortgage insurance (PMI), which homeowners with low down payments are required to get to protect the mortgage company in case the homeowner defaults on the policy. With mortgage life insurance, the death benefit is used to satisfy the mortgage by directly paying the mortgage holder. That’s a tremendous benefit. No family should have to worry about losing their home when they’ve just lost a loved one. But traditional term life insurance can also pay off the mortgage, and mortgage life insurance has several drawbacks that you should consider carefully.
Your death benefit has a narrow use
If you pass away, your family will have much more financial flexibility with traditional term life insurance. Depending on the coverage amount, they can pay off the mortgage if they chose. But they can also decide to pay off only part of it or even to just keep making monthly payments—thereby freeing up the death benefit for other purposes.
Owning a home outright with no more mortgage payments due is a wonderful thing. It provides a sense of security and eliminates what is frequently a family’s largest monthly expense. But income is often the most pressing concern after the death of a key income-generator, and it’s difficult to get income out of a house. You either have to sell it or rent out space—or take out another mortgage. With regular term life insurance, your family will be able to manage their situation to ensure enough income without having to take any of those problematic actions.
The value of the policy declines during the term
The way mortgage life insurance is normally structured, your premiums typically remain level, but as your mortgage debt decreases during the term, so does your corresponding death benefit. Mortgage life insurance often costs more than term for the same amount of coverage. You’ll quickly find with a little research on the Internet that regular term life is usually less expensive than mortgage life insurance.
Understand Your Situation
When deciding between traditional term life insurance and mortgage insurance, take into account all of your family’s financial needs. As you research online, which every consumer should do, seek out a site that provides needs-analysis and financial planning tools and that offers quotes from a wide range of carriers—allowing you to accurately determine your family’s situation, decide on the policy type that best fits that situation, and then find the best deal on that policy type.
Traditional Term Life Gets the Job Done
Although mortgage life insurance does have its uses, it’s important to realize that deciding between mortgage insurance and traditional term insurance is not a choice between absolutely saving the house and possibly losing it. Traditional term life is “traditional” for a reason—it works. It can protect the home while also providing for other obligations.
Mortgage life insurance may be the right choice for you, but take a long look at the flexibility and affordability of term life insurance before making that decision.
For more information on term life insurance browse our related blog articles or visit Efinancial.com.
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com
Posted on Thu, May 17, 2012
Life insurance is intended to financially protect your loved ones should something happen to you. While term life insurance coverage can offer peace of mind and protection, a term life policy can be further customized with riders to fit an individual’s or family’s specific needs.
What exactly is a rider?
Term life insurance riders are “add-ons” to your life insurance coverage. Those who have opted to apply for term life insurance policies may find riders not only helpful, but also affordable.
What are the most common term life insurance riders available?
There are a variety of riders available to policyholders. The best way to determine which amendments may be most suitable to your lifestyle needs as well as your pocket book is to have an open and honest conversation with an insurance agent. Together, you will be able to come up with a plan that gives you additional and specific coverage without breaking the bank. Here are some of the most common riders that policyholders ask about and initiate into their existing plans:
- Waiver of Premium - if the primary insurance policy holder becomes disabled or acquires a long-term illness; premiums can be waived until the individual is able to work again. In the event that the policyholder becomes permanently disabled, premiums may be waived altogether.
- Family Income Benefit - In the event the policyholder passes away unexpectedly, family members will receive a regulated and continuous income for a duration of time as set out in the terms of the rider. This works to ease financial burdens on multiple family members over an extended period of time.
- Renewal Provision/Guaranteed Insurability - Term life insurance policies come with the risk that coverage may expire before the policyholder is deceased. This rider allows a policyholder to renew coverage-no questions asked-even if they have acquired a condition that would normally make them uninsurable. Be sure to ask your insurance agent about specific age limitations with this particular rider!
- Accidental Death - Sometimes referred to as “Double Indemnity” this rider provides an additional monetary amount in the event that the policyholder passes away as the result of an accident.
- Child - While this may be the least comfortable rider to approach, it is definitely worth taking the time to look at. A child term life insurance rider will provide additional coverage in the event that a child dependent of the policyholder passes away before a certain age. Once that age is surpassed, the rider can often be converted to a standard life insurance policy.
- Select Term - Some insurance agencies can offer this rider which provides additional coverage up through a specified age.
- Spouse Insurance - Marriage is often a major life change for the majority of policyholders. This rider allows additional coverage for a spouse.
- Long Term Care - Unfortunately, life circumstances may call for an insurance policy holder to need to be cared for in an assisted living facility earlier than planned. In this case, a long-term care rider may be a big financial help as it can provide monthly payments towards settling care debt.
Term life insurance riders are not only flexible, they are often affordable. Talk to your insurance agent today about riders what might best fit your existing policy and plans for the future.
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com
Posted on Wed, May 16, 2012
Life insurance may not be the easiest topic of discussion, but it is certainly one of the most important. Protecting your family from life’s unexpected events is one of the primary responsibilities that fall to heads of households. It’s never pleasant to consider the prospect of not being around to help guide your family, however, knowing that they will be financially secure even when you can’t be there in person provides an unmatched peace of mind.
Not only is life insurance important to your family’s financial future, it’s also more easily accessible than ever before. With many insurance companies and agents moving to an online platform, existing and potential customers have the ability to search for and establish life insurance policies with the click of a button. Here are four reasons to buy life insurance online now.
You become an independent consumer
Gone are the days of trekking down to the insurance agency for a long and drawn out meeting with an insurance agent. Too often, customers leave these meetings feeling as if they’ve been tossed a sales pitch and worry they’ve received too little relevant information. By purchasing life insurance online, you become an independent buyer and you eliminate the sales pressure; it's at your discretion when you choose to speak to an agent to make a final purchase.
When you buy life insurance online, you take control of one of the most important decisions you can make. The ability to offer the gift of financial freedom to your family even after you are gone is priceless. Take the opportunity to make important financial decisions independently and in a pressure-free environment.
You can boldly browse your options
Shopping for life insurance quotes online gives you the opportunity and flexibility to easily compare policy rates. By simply entering your requested information, you are able to instantly receive quotes from a variety of companies. If you don’t feel comfortable evaluating these quotes, you have been given the gift of information to take to a licensed agent. When you are able to present your research to a qualified agent, they will be better able to help find you a price that matches your needs and budget. Quick and accessible online rates gives you a competitive edge when shopping for life insurance.
You become a super-speedy shopper
The virtual world not only offers up an endless number of comparative life insurance quotes, it also amps up the overall processing time. One of the greatest benefits to buying life insurance online is the convenience of filling out an online application to get the ball rolling.
You have access to licensed agents
The internet is based on accessibility and global dissemination of information. This reality includes insurance agents who work on virtual platforms. While buying life insurance online gives you the ability to shop independently, there are times when its helpful to get a little expert insight. It’s also smart to have a resource available when you have questions on terminology or specific policy coverage issues. When it comes to finding a helpful agent, internet platforms also act as social media networks. When you buy life insurance coverage online, you also have access to chat with an insurance agent to answer any of your questions. There is a confidence to be gained when you know that a helping hand is available to help guide you through your questions. Buying insurance online is an independent endeavor that comes with a personalized touch with the help of licensed agents.
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com
Posted on Mon, May 14, 2012
Term life insurance can be the lifeblood of a small business faced with the challenge of death.
When a key employee of a small business dies, the impact on the company can be devastating. If the deceased was a crucial contributor in revenue-generation, sales, management, or any other area, the company is also suddenly faced with a financial dilemma.
And many small businesses don’t even have that option because the deceased is literally irreplaceable. If the business’s competitive advantage was his or her unique ability, reputation, or business relationships, the negative financial impact could be too much to overcome without term life insurance.
If this key employee is the owner or a partner, the situation also becomes complicated by ownership and capital issues. Even the death of an owner or partner who is no longer significantly involved in the business presents potential problems related to ownership transfer and taxes.
In almost any case, company-owned life insurance covering a key employee and/or owner will provide crucial capital and flexibility to enable the small business to continue operating without being sold.
Replacing Critical Contributions
While it may be impossible to completely replace the specific knowledge and skills of the deceased owner or employee, small businesses can adjust—but it usually takes time. Term life insurance can supply capital for hiring a replacement and to ease any revenue or productivity reductions during the sometimes slow process of transition. The necessity of paying rent, salaries, debt, taxes, and operating costs isn’t going to go away while the company ramps back up to speed.
Covering Estate Taxes
Without term life insurance owned by the business, the heirs of an owner may not be able to pay the estate taxes without having to sell their share in the business. If the business’s principal value is not in liquid assets or cash, the heirs will need another source of money to pay the estate taxes—and life insurance can be that source. Without this capital, and if other owners or the employees aren’t able to buy their share, heirs will have to find a buyer. They may not get a fair price for the business, and employees of the company could be adversely affected.
Allowing Partners to Buy Out the Heirs
In a partnership, if the heirs of the deceased don’t want to continue owning part of the business, company-owned term life insurance can provide the other partners with capital to buy out the heirs’ share. If partners determine beforehand that that they don’t want to share ownership with heirs, they can use life insurance as part of a predetermined buy-sell agreement.
Allowing Employees to Own the Company
Just as with an ownership transfer strategy involving owners, term life insurance can be structured so that the death benefit is used on behalf of employees to buy the heirs’ share of the company. This is an attractive alternative in small businesses where an owner has worked closely with employees for years and wants them to be able to continue making a living from the company without being at the mercy of new ownership.
Getting the Best Deal
If you’re convinced that your small business needs term life insurance coverage for key people, the most important thing you can do to reduce cost is to act as soon as possible. Visit Efinancial.com to learn more.
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com
Posted on Fri, May 11, 2012
Life Insurance is one of those topics that can overwhelm you. Many people fear the process will be confusing but it doesn't have to be. You can learn everything you need to know about life insurance, and select the policy that meets your family's needs, in one convenient location: Online.
How Do I Compare Life Insurance Online?
Step 1: The first step to compare life insurance online is to determine the total amount of adequate life insurance coverage you will need. Your monthly premium is partially based on the total benefit amount so you want to avoid choosing a lofty multi-million dollar policy if that amount is more than you really need. An adequate benefit total is one that would cover all of your family's outstanding debts and daily living expenses.
You want to consider current debt or mortgage payments in addition to future debts, such as the purchase of a home, future college payments for your children, etc. If you desire assistance in determining an amount that would leave your family adequately insured - you can use Efinancial's online Life Insurance Calculator and it will do the estimating for you.
Step 2: The second step is to determine which type of policy is best suited to your needs. When you compare life insurance online, you will notice that there are three common types of life insurance policies and then several other miscellaneous types of policies. One thing they all have in common is the main contributing factor to your monthly premium total is your age and your current overall health status.
Regardless of what type of policy you choose, the younger and healthier you are, the more affordable the premium will be. In other words, there's no time like the present to purchase life insurance because none of us are getting any younger.
The three common policy types are:
-
Term Life Insurance - this type is the most common. It's purchased for a specific length of time, such as 10-, 20-, or 30-year terms. If you die before the end of the term, your beneficiaries receive the total benefit amount. Your premium is secured through the duration of the term and cannot be increased. However, once the term expires, you'll have to begin the application process over again to apply for a new term life policy. It's important to note that applying for new coverage down the road doesn’t guarantee approval and rates may be significantly different due to age and health factors. There are term life policies that include renewal and convertible options. If this is something you are interested, discuss these options with your life insurance agent.
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Whole Life Insurance - This type of policy lasts for your entire life - or in some cases until you reach your 100th birthday, when monetary benefits will be returned to you. This policy acts as a kind of savings account, in addition to a life insurance policy. However, premiums are more costly so this type of policy is not right for everyone. Consult your life insurance agent before selecting this type of policy to verify it's the right choice for you.
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Universal Life Insurance – As with Whole Life Insurance, Universal Life builds cash value and lasts for your entire life. This policy acts as a kind of savings account, in addition to a life insurance policy. Universal Life also gives the ability to have flexibility with your premium payment and you may increase it at certain times and decrease at others, provided that the minimum requirements are met to keep your coverage in force. As with whole life, Universal Life is more costly than term insurance, so this type of policy is not right for everyone. Consult your life insurance agent before selecting this type of policy to verify it's the right choice for you.
It should also be noted that No Exam life Insurance is available. The traditional forms of life insurance coverage described above require a routine medical exam, including urinalysis and blood work, as a part of the application process. No Exam life insurance eliminates that step and relies on the medical information provided by the applicant to make a decision and/or set the premium price. As there is more risk to the carrier, premiums are usually higher and there are limits to the benefit totals. However for those who are looking for quick coverage and even less hassle, no exam life insurance can often be issued in as little as twenty-four hours.
To compare life insurance online at your convenience, and for a more detailed list of policy options, review Efinancial's Differences in Life Insurance Products, or contact an agent.
Step 3: Start your application process. It's that simple. Efinancial has provided a Life Insurance Search Engine, which helps to expedite the process for you. Once you have completed the forms, you will receive a list of quotes from top life insurance carriers from across the nation. From there you can work with a licensed life insurance agent to apply for the coverage that's right for you.
The right life insurance policy can make all the difference in your family's financial well being. Compare life insurance online and begin to solidify their future today.
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com
Posted on Thu, May 10, 2012
Providing for your loved ones in the event of your death gives you peace of mind. With term life insurance there are several ways in which coverage can protect your family and make sure your family is provided for if something happens.
Income Replacement
If you or your spouse passes away, the remaining spouse may be left to support your family on one salary. If one salary is simply not enough, the family may have to downsize their home, reduce activities, postpone retirement or forego expenses such as college education for your children. One of the most important things a life insurance policy should be designed for, is to cover daily living expenses should something happen to you.
Estate Planning
Leaving behind a sizeable estate may sound like a good option for your family, but if it is worth more than $5 million, estate tax can gobble up as much as 35 percent of the value. In addition, executor’s fees must be paid, and these are commonly based on a percentage of the estate value. Imagine your surviving spouse having to sell the family home to cover the cost of the estate taxes? By making provision for payment of estate taxes and fees through your life insurance, you can protect the full worth of your estate for your loved ones.
Debt Resolution
Few of us make it through our lives without incurring some sort of debt. Home mortgages, car purchases, credit cards and retail store accounts are common debts many families are familiar with. Should you or your spouse pass away with debt, a life insurance policy can be used toward repaying outstanding debts so that the burden does not fall on loved ones.
College Education
We all have dreams of seeing our children graduate from college with an education that will equip them for the career they want. Should something happen to you before your children reach college, or while they're attending, a life insurance policy can be designed to cover college tuition costs. You can always rest assured that their educations will be protected.
Home Ownership
Mortgages are frequently taken in the name of both spouses, and if one dies the other is left to continue with the mortgage or sell the home. Buying enough life insurance to cover the outstanding balance of your mortgage in the event of the death of one spouse can ensure that your family remains in their home.
Health Care
Funding ongoing health care for surviving family members is often overlooked when buying life insurance, particularly if your health insurance policy is in your name. Your death means that your spouse may have to consider taking out a new health insurance policy within a short time after your passing. And what happens if your spouse needs long-term care? Most health insurance and Medicare don’t fund costs associated with long-term care.
Update your Policy
Keeping your life insurance policy up to date with your changing circumstances is critical to ensure that your family is protected in the event of your death. Review your policy annually to ensure your policy meets your current needs.
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com
Posted on Wed, May 09, 2012
Life insurance policies are often established with end-of-life plans in mind. It’s common for people to want to make sure their loved ones are financially protected when they are no longer there to take care of matters in person. However, one important factor that is often overlooked is the benefit that life insurance policies provide while you are living. In particular, with the right financial planning, a life insurance policy can establish a nice financial cushion that can help you and your family in retirement.
How does life insurance protect your retirement options?
During your primary working years, life insurance is put in place to cover your family in the event of the untimely death of the primary wage earner. However, once you’ve surpassed your core working years and your children have grown and left the home, life insurance can become an essential retirement asset for you and your spouse.
While your work income may be reduced in retirement, putting a permanent life insurance policy in place now may provide extra cash in retirement that can used to cover unexpected expenses. Financial planning is key when it comes to making your life insurance policy work for your future retirement. If you’re making full and timely payments on your permanent life insurance policy now by the time you retire, it’s possible that the account will be fully funded and excess cash can be withdrawn for personal use. The major financial benefit of a permanent life insurance policy is that many companies utilize a locked-in premium rate for life. This means that your account has the potential to be paid off and benefit you as cash value in retirement. In general, there are two paths to accessing this cash if your account is paid in full:
- Loans against cash value-these can be taken if your cash withdrawal has been reached. Be aware that taking a loan against the cash value of your policy may have tax consequences and may alter the final payout amount of your policy in the future. Be sure to ask your insurance agent how your specific policy would be affected by loans.
- Cash-In many cases, it’s possible to simply withdrawal a specified amount of cash from your account if your premiums have been consistently covered and your account is paid in full.
Financial planning and types of insurance to consider
While permanent life insurance policies offer up the potential for cash value in retirement, when planning for the end of your career it may be worth taking a look at term life insurance options. Term life insurance policies provide temporary coverage; however, the premiums for such policies are significantly lower than those associated with permanent life insurance policies. The financial benefits for your future could be advanced with a combination of term and permanent life insurance policies put in place. Taking out a term policy could assist with life events such as:
- Lost income
- College expenses
- Mortgage payments
- Other debt in repayment
Having these expenses covered leaves more flexibility to pay towards permanent life insurance premiums. The faster the permanent account is paid in full, the more cash value can be earned towards retirement. When it comes to financial planning for retirement, consider a combination of insurance plans.
How does life insurance enhance retirement?
Outside of pure cash value that can be created for retirement, life insurance policies are beneficial in many ways during the retirement period. When planning for your financial future, be sure to take the following benefits into consideration. Life insurance policies can help to:
- Balance inheritance between business and real estate.
- Eliminate debt that would otherwise be left to beneficiaries.
- Maximize income left to inheritors
- Lower estate taxes
- Pay off final expense and medical bills
Knowing these events are covered by life insurance policy plans allows you to use existing funds and savings on retirement options without the worry of protection later on.
Keep in mind that life insurance policies not only protect your retirement, but your spouse’s as well. In the event that you pass on unexpectedly, your spouse can use your life insurance benefits to cover costs instead of having to delve into retirement funds that have not been paid in full. Having a financial backup plan in place will allow your spouse to retire securely while still being able to take care of end-of-life expenses.
Be sure to take time to sit down with your insurance agent and discuss how life insurance options can be incorporated into your retirement goals. Financial planning for the future could be the key to a sure and fulfilling retirement ahead!
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com
Posted on Tue, May 08, 2012
New parents are often overwhelmed with new responsibilities. The adage, “Your life will never be the same again” is true.
With all the change that a first child brings, it’s understandable that some new parents overlook the change in their life insurance needs. You may have had life insurance before, to protect the surviving spouse. Or like many young couples without children, you may not have had it at all. Either way, having a child creates a need to take a close look at how to use life insurance to provide security to your new family member.
Fortunately for new parents, researching and buying life insurance online is now efficient and convenient. You can get the protection you need for your growing family quickly, easily, and often at competitive rates.
However, the convenience of buying life insurance online doesn’t mean it’s a purchasing decision to be taken lightly. Choosing a life insurance policy is one of the most important decisions you have to make in caring for your family’s future—and it should be selected diligently. All new parents should follow key steps when buying life insurance online.
Decide How Much Life Insurance You Need
First of all, project how much income you expect to earn in the future, taking into account expected growth in earning power. To ensure your spouse and child will be able to meet financial obligations and not suffer a lowered standard of living, this income is basically what will need to be replaced.
While considering how much coverage you need consider the following:
- Do you have credit-card or other nonessential debt? (If you do, you should cover the amount needed to pay off this debt.
- If your spouse doesn’t work (or plans to stop work to care for the new child), would he/she go to work if you died? What would the child care costs associated with that decision be?
- Do you want your child to go to college, and if so, what type of college?
- Do you anticipate other specific child-related expenses (e.g., private K-12 schooling)?
- Is there a possibility that your spouse will need to help support another family member (e.g., an aging parent)?
- Do you also need to protect a self-owned business so your family can keep it after your death? (If you do, life insurance is an ideal way to prevent family members from having to sell off all or part of the company).
Online sites such as Efinancial.com have calculators to help you project your future financial needs and to make adjustments based on answers to questions such as these.
Select Type of Insurance
There are two basic type of life insurance policies: term policies and permanent policies (e.g., whole, universal). Term covers the insured for a set period, while permanent policies provide coverage until you die. Whole life insurance coverage comes with a price—premiums for permanent policies are substantially higher than for term policies. That is why many Americans opt for term life insurance coverage. Term life policies can be customized based on coverage amount and term length to fit a family's specific needs.
Choose a Carrier
One of the greatest advantages of buying life insurance online is the ease with which you can compare carriers. Once you know the amount of insurance you need and how long you need coverage for, you can get quotes from numerous carriers all from one site like Efinancial.com. And if you have questions, you can get the same access to agent advice as you would if you visited an insurance agency in person.
The Bottom Line
Buying life insurance online takes careful thought, but it allows for easy-to-arrive-at comparisons between carriers and policies. For new parents faced with the many challenges a first child brings, this is a streamlined process of applying for life insurance.
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com
Posted on Mon, May 07, 2012
One of life’s biggest milestones is becoming a parent. Now a small life is in your hands and you want to protect it. But what if the unthinkable happens and you can no longer be there? Parenthood is also a major reason for buying life insurance; so you can continue financial support and ease some of the hardships of spouse or your child losing a parent.
Many young families are finding that term life insurance best fits their needs at an affordable price. It provides flexibility to a growing, changing family. You don’t need to be tied forever to a product that may not remain relevant to your situation. And term life insurance is valuable for many purposes:
- To cover remaining mortgage debt.
- To provide for college.
- To provide continuing income to the remaining spouse and children.
- To pay for medical or funeral expenses.
First of all, what is “term” life insurance? It is insurance coverage purchased for a set amount, of time, or term. Term life insurance can be purchased for different periods of time, it is commonly purchased from as little as 5 years on up to 30 years. During the term, premiums and coverage remain constant regardless of the economy or changes in your life. And, of course, term life insurance is meant to provide death benefits in the case of the insured’s passing.
It's a good idea to consider term life insurance for both parents and not just one or the other. The purchase of term life insurance provides benefits to spouses as well as children. It is easy to think that since a non-working spouse doesn’t have income that there is no need for monetary coverage in the event of his or her death. Nothing could be further from the truth. Remember that the non-working spouse performs tasks and services, such as caring for small children, which may have to be done by a paid service if the remaining spouse cannot stop working.
Something else to learn about and understand is Accelerated Death Benefits. This is a benefit option that starts paying out before the insured’s death in the event of a terminal illness diagnosis. The benefit can come with different payout options, so find out which option you have. It may be a single lump sum payment or it can be paid out in monthly installments before your death to defray costs of medical care or nursing home expenses due to a terminal illness. Upon your passing, a payout will still be made to your beneficiaries.
Annually you should take stock and determine if your life insurance needs have changed, even due to less life-altering reasons than marriage or parenthood. Maybe you just did some calculations and discovered that the policy you have from your employer won’t be enough. Term life insurance can fill in that gap. With the economy the way it has been, you may discover that your old policies no longer suffice to cover increases in prices and costs.
Life insurance is a vital part of a family’s safety net. It is every bit as important as food and shelter to keep survivors from financial burden. And the earlier you apply for coverage, the less expensive it will be. Your peace of mind will be worth it.
If you have questions about term life insurance, or insurance in general, don’t hesitate to check out these resources.
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com
Posted on Fri, May 04, 2012
Most people understand that having a life insurance policy is a responsible financial decision. By the time you have reached your thirties, you're likely to have car loans, mortgages, credit card debts and any number of financial goals in place for your family's future. However, many people avoid the subject of life insurance because they are uncomfortable about the required medical examination. No Exam life insurance was created to serve those people who need life insurance, but want to avoid the routine exam portion of the application process.
When you read the words, "You have an appointment with the doctor...," or "It's time for your annual medical checkup," does your heart rate increase? Do your hands get clammy? Does a sense of anxiety set in? You are not alone. Anxiety around doctors, doctor appointments, and/or medical offices and hospitals is very common. Some people are so afraid that they are considered to be Iatrophobic, or unusually afraid of doctors. Whether you are Iatrophobic, or you just don't like visiting doctor's offices, No Exam life insurance is a great alternative. It will allow you to take care of your family's financial future without the slightest whiff of that familiar doctor's office smell.
What Is No Exam Life Insurance?
No Exam Life insurance is exactly that. It's a life insurance policy that doesn't include a routine medical exam required during the application process. There are a few different types of No Exam life insurance policies. Regardless of the policy you choose, you will never have to visit a doctor in order to apply for coverage. An Efinancial agent can discuss your situation, and your concerns, to determine which type of policy is best for you.
Guaranteed Issue Life Insurance: This application process requires a very simple and fast application process. You are not required to provide any medical information during the application process. Although this type of no exam coverage is cost prohibitive, nearly anyone can qualify.
Graded Benefit Life Insurance: For this application, you will only be asked a few health questions that must be answered honestly. There are some specific terms that need to be met, and often the policy will not pay out in full if something happens to you within the first few years of the policy's term. Your insurance agent will be able to explain the more complicated details, depending on your situation.
Simplified Issue Life Insurance: While the process is still simple and significantly faster than a traditional policy, you will have to answer more health-related questions than the other two policy types. The policy is underwritten - which means after a questionnaire-based evaluation, but you still skip the medical exam.
What Is The Difference Between No Exam and Term Life Insurance?
No exam life insurance is a type of term life insurance. When you fill out the application form, and/or speak with an Efinancial representative, you will decide on a length of time - a term - for your no exam policy. Besides the ability to skip the medical exam, there are a couple of differences between no exam term life insurance and traditional term life policies.
- The Total Benefit Amount - With traditional term life insurance, clients can select benefit amounts from low to high. However, No Exam life insurance policies usually have a lower cap for the coverage amount. The carrier is agreeing to take on a bit more risk, since you are forgoing the medical exam, which means they are going to make sure you are adequately insured, without being over-insured.
- The Monthly Premium - As mentioned above, an insurance carrier is taking a higher risk when they agree to insure an individual without a medical exam. In a traditional situation, your benefit and monthly premium totals are partially based on the results of the medical exam. The cost of the No Exam risk translates to paying somewhat higher premiums.
Most clients agree to a lower benefit total, and a higher monthly premium payment, for the fast and convenient application process. Traditional term life insurance application process can take anywhere from 4 - 6 weeks from start to finish. With No Exam life insurance you can fast track towards coverage that will will ensure the financial security of your beneficiaries today.
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com
Posted on Thu, May 03, 2012
Your 20's are all about the beginning of adult life - not the end - so what is the point of buying life insurance? Who thinks about term life insurance in their 20's?
The reality is that life insurance is for the majority of adults who participate in modern society. Ask yourself a few important questions and you might be surprised to find out just how important a term life insurance policy is for your future financial goals.
Keep in mind, term life insurance premiums - the amount you pay per month - are determined by a person's age, gender, lifestyle and overall physical health. The younger and healthier you are when you purchase a policy, the cheaper your premium will be. Once a premium price is set, it is guaranteed for the duration of the term. This can save you thousands of dollars over the course of a your policy's term.
Before we go into the "whys" of purchasing a life insurance policy, let's review what a term life insurance policy is.
What Is Term Life Insurance?
A term life insurance policy can be purchased for a specific span of time - hence the word - "term." You choose the length of the term but the most common policies are purchased in 10, 20, or 30-year increments. Along with the term of the policy, you also select a total coverage amount. This is the amount your beneficiary will receive in the event that you die before the term expires.
FYI: Many people experience "life insurance fantasies". They envision purchasing policies for millions of dollars, and leaving family members wealthy when they go. This is a noble endeavor, but it's important that you only insure yourself for the amount your family needs, and maybe a little extra. This will keep your premiums low, and allow you to create financial wealth via other means. Use the Efinancial Life Insurance Calculator to get an idea of what kind of benefit amount is realistic for your needs.
So now for the aforementioned "Important Questions."
Do I Really Need Term Life Insurance?
Do you have any debt?
Remember those college loans? What's the balance on your credit card(s)? Is your car paid off? Do you plan on buying a home in the next 10 or 20 years? In order to understand the importance of life insurance, you need to step out of the now, and gaze a little further into the future. Hopefully you have a long healthy life ahead of you, but should tragedy strike, your debts don't disappear. They become the financial responsibility of those you leave behind. Creditors will come after whomever they can to try to collect the money owed. A proper life insurance policy ensures that in the event of your death, your debts will be paid for. This leaves your loved ones free to pursue the life they choose, rather than one that leaves them struggling to pay your accumulated debts.
Do You Currently Own a Home or Plan To Own One In the Future?
We touched on it in the Debt section but your current or future mortgage is an important consideration when deliberating on the purchase of life insurance. Single-income homeowners are few and far between. It usually takes two incomes to make a mortgage payment, in addition to maintaining the other day-to-day living expenses. When you determine your term benefit, you will factor in an appropriate mortgage payment so that your "Home" will be preserved for family and/or loved ones. This is a major relief for those who are left behind.
Will Your Children Want To Attend College?
You may or may not have children at this stage in your life. Children in college may seem like a long way off but time flies. What about future college costs, or loan debts, you may incur? When you make the smart choice to consider term life insurance in your 20s, you want your coverage amount to adequately cover all of the financial responsibilities you anticipate over the course of the policy term.
Now Is Always the Best Time to Get Term Life Insurance
The earlier you purchase your policy, the greater your savings will be. When you are young and healthy, a 30-year term life insurance policy for an appropriate coverage amount will likely cost you less than your daily coffee tab per month. It's easy to get a quote within minutes when you use our term life insurance search engine. Go ahead and shock yourself with how affordable your loved one's financial security can be.
Efinancial's licensed life insurance agents are always ready to answer any questions you may have, or to help you customize the life insurance policy that best fits your needs.
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com
Posted on Wed, May 02, 2012
As a first time homebuyer, you have made a significant purchase to better the lives of you and your loved ones. You have taken the necessary steps to protect you home and assets with homeowners insurance. However, before you begin your life in you new home, there is one other insurance you should consider:term life insurance. As a new homeowner, a term life insurance policy protects you and your loved ones from losing your home should something happen to you or your spouse. The proceeds from a term life policy can be used specifically to pay monthly mortgage payments. The purchase of this type of policy is an act that shows responsibility and love.
What is Term Life Insurance?
Term life insurance is a type of insurance policy that protects your loved ones from financial hardship should something happen to you during the course of the policy. The money your dependents receive,should you pass away,can serve as income replacement, used to pay off a mortgage, send your children to college, pay daily living expenses, so on and so on. Term life insurance policies last for a predetermined period of time, which can be customized based on your specific needs. Similarly, you can customize a coverage amount to cater to your family's unique situation.
Why Purchase Term Life Insurance After Buying Your First Home?
Help cover the cost of your home.
If the unthinkable were to happen to you, would your partner be able to pay for your new home or other debts with his or her income alone? These and other financial-related questions are important to consider if you think that you don’t need term life insurance as a new homeowner.
Term life insurance is less expensive when you’re younger.
Life insurance premiums are based on statistical data, and young adults are statistically less likely to die than those who are older. Use this to your advantage to purchase a long-term policy so you can lock in a low premium rate.
The health you have today may not be here tomorrow.
You never know when the status of your health can make you ineligible for an affordable life insurance policy.
You can’t always count on the life insurance policy offered by your job for primary coverage.
One of the reasons that many people forego purchasing their own term life insurance policy is because their employer provides them with such coverage as a benefit. The problem with relying on an employer to provide for your family, however, is that there is no such thing as true job security. It’s not worth the risk of solely relying on your employer to provide your loved ones with financial assistance if the unthinkable were to happen.
Funeral costs are expensive.
Loved ones are often surprised at the high cost funeral expenses. With funeral expenses continually increasing, your partner can have peace of mind knowing that they can afford to fulfill your end of life wishes and pay for the home without worrying about financial burdens.
Term life insurance may be more affordable than you think.
When considering the purchase of a life insurance company, don’t just go with the company that offers the cheapest premiums. Get a quote from the company that also insures your vehicles and/or your home because it might offer you a discount if you have more than one type of policy with them. Sometimes the discount offered is enough to help pay for the majority of your term life insurance premium.
Factors that Influence the Cost of Term Life Insurance Premiums
- Age: Life insurance is cheaper when you’re younger
- Height to Weight ratio: As weight is directly related to one's health, premiums factor your height to weight ratio
- Health: Certain health issue may raise the cost of a term life insurance policy or make you ineligible
- Habits: Drug, alcohol and/or tobacco use can make you ineligible for life insurance or raise the premium price
- Your job: If you work in an occupation considered dangerous, you may pay a higher premium
How Much Insurance You Need
Many financial planners advise on purchasing a term life insurance policies that can replace five to seven years of your income. However, every individual's life insurance needs are different. You will want to consider, debt, mortgage payments, and costs related to children when customizing a coverage amount. The best way to learn about the proper amount of insurance to purchase after you buy a first home is to consult with a licensed life insurance agent.
When you purchase your first home, it only makes sense to help your loved ones protect this investment with a term life insurance policy.
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com
Posted on Tue, May 01, 2012
Life insurance. Most people understand its purposes is to protect loves ones from financial hardships should a the insured pass away. In short, life insurance is probably the best way to ensure that there are funds to maintain the family lifestyle for the loved ones left behind.
J. D. Powers reported recently* that studies show that 40 percent of adult Americans have no life insurance at all and that the amount of life insurance held by another 50 million Americans is inadequate. Sadly, 25 percent of widows and widowers surveyed whose spouse died between the ages of 30 and 55 felt their spouse did not have adequate life insurance, resulting in drastically altered lifestyles including being forced to work or take on additional jobs, exhausting savings, borrowing money and, unfortunately, often selling the family home.
While most people fully understand the need for life insurance, many simply don't wish to deal with the issue, primarily because anything related to their mortality makes them uncomfortable or because they believe (increasingly as they get older) that life insurance is just too expensive. The good news is, there are many affordable options out there, and by comparing terms and coverage amounts you can likely find a policy to fit your budget.
So, what to do? What's the best way to navigate the landscape of a crowded and often confusing insurance market? Efinancial life insurance is an effective, simple, user friendly way to shop for life insurance, mainly because it does the shopping for you.
Efinancial provides you with all the information you need regarding term life values from the 'best of the best' in the term life insurance industry. Rather than have you do the research, Efinancial gathers all the information from America's most trusted names in life insurance. The result is that those companies then essentially compete to write your term life insurance.
Efinancial life insurance shopping provides you with fast, free life insurance quotes when you need them. We enable you to compare term life insurance coverage and rates in minutes. What's more, we'll shop to give you coverage options that require no medical exam or a visit to the doctor.
The Efinancial life insurance difference is more than just comparing quotes for term life insurance, however. We provide you with the resources you require to make the right purchase decision and increase your life insurance knowledge.
Our comprehensive Efinancial life insurance program helps you, among other things, to learn and understand:
- Who needs life insurance;
- When the best time is to buy it;
- How much coverage you may need;
- Whether you can buy life insurance as a gift/for someone else;
- How to apply for life insurance without a medical exam;
- The factors that influence your life insurance rates and how they're determined,
- Term vs. whole life;
- Mortgage Life Insurance;
- Employee Sponsored Life Insurance;
- What Accelerated Death Benefits actually means.
If you are in need of life insurance to protect the future financial well-being of your family should something happen to you, Efinancial can help you apply for a customized life insurance policy to fit your needs. Our primary purpose is to help you take care of those counting on you.
*Too Many People Lack Adequate Life Insurance Coverage, Published 02.24.2012
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com