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Article by Chris D

09/15/2005 – NORTHBROOK, Ill.

Single people or couples without kids don’t need lifeinsurance. Lifeinsurance is too expensive. Stay-at-home parents do not need lifeinsurance because they don’t earn a paycheck. These and other misconceptions surround lifeinsurance, a product that most consumers may need, but many still do not understand.

“Many Americans either don’t have a lifeinsurance policy or don’t have enough coverage to meet their immediate or long term financial needs,” said Matt Easley, Vice President of Life Products, Allstate Life InsuranceCompany. “The low level of Americans’ personal savings has increased the need for lifeinsurance to protect their family’s future.”

Interestingly, according to a 2004 survey from Allstate, 67 percent, or nearly seven out of 10 surveyed felt their lifeinsurance was adequate. On average, respondents reported owning four times their household annual income of lifeinsurance coverage. For families who have already incurred many of life’s big expenses like buying and financing a home or sending children to college, four times their income may be enough. Yet, on the other hand, younger families with decades of financial obligations ahead may not have enough lifeinsurance coverage to realize their goals. For example, as a rule of thumb the recommended amount of life insurancecoverage often cited is seven times an individual’s income, although individual circumstances should be taken into account when estimating actual lifeinsurance coverage needs.

September marks the second annual LifeInsurance Awareness Month. In an effort to debunk the myths surrounding lifeinsurance, Allstate and its member companies and divisions, including Lincoln Benefit Life Company and Allstate Workplace Division, offer the following realities:

Myth #1) Singles or couples without kids don’t need lifeinsurance. Fact: Lifeinsurance can help provide for loved ones in the event of death, even for those without children. For example, people in this group may carry debts that they would prefer were taken care of rather than taken out of assets left to their loved ones. Still, others may use lifeinsurance proceeds to help nieces, nephews, cousins or siblings achieve their financial goals. For a modest premium, lifeinsurance can help to provide for those who are left behind.

Myth #2) Lifeinsurance is expensive. Fact: Term lifeinsurance, which is lifeinsurance purchased for a period of time, is very affordable for many people. For example, a healthy, non-smoking, 35-year-old female who has a good family health history may be able to purchase a 10-year term lifeinsurance policy from Allstate with a 0,000 death benefit for an average of .66 per month. Or, she may be able to purchase a 10-year term lifeinsurance policy from Allstate with a 0,000 death benefit for an average of .88 per month.* Either way, the premiums are approximately the price of two movie tickets per month!

Myth #3) Stay-at-home parents don’t need lifeinsurance because they don’t draw an income. Fact: While a stay-at-home parent may not provide an actual paycheck for the household, they do provide services that would cost tens of thousands of dollars to replace. These include: the cost of day care, a chauffeur or taxi service, a cook and a home cleaning service to name a few. An individual lifeinsurance policy would help to ease the burden for the family if the stay-at-home parent should pass away.

Myth #4) You can take your lifeinsurance policy with you from job to job. Fact: Typically, group lifeinsurance purchased through an employer isn’t portable – meaning if an employee leaves the job, he or she is probably also leaving the lifeinsurance protection behind. However, because you own any individual lifeinsurance policies purchased through an insurance agent or a financial professional, leaving a job will have no effect on the coverage provided by them. So, in that case, if you change your job, you will still have your lifeinsurance policy even if you no longer have employer-provided group lifeinsurance.

Having a policy through an employer is also becoming a rarity. According to a 2004 U.S. Department of Labor Bureau of Labor Statistics Employee Benefit Survey, fewer workers have life insurance benefits. The number has declined eight percent since 1999, from a high of 56 percent to 48 percent in 2004.

Myth #5) Your beneficiaries will have to pay income taxes on the proceeds of your lifeinsurance policy. Fact: Lifeinsurance death benefits are generally income tax-free; yet very few people know this. According to LIMRA1 International’s Individual Life Buyer Consumer survey, only 34 percent of those surveyed knew their death benefit is tax-free. Note, however, that death benefits are subject to estate taxes if the insured owned or had any ownership interest in the policy.

Myth #6) You are not covered by your life insurance policy if you travel. Fact: In the unlikely event an insured passes away while in a foreign country, the policy would most likely pay out to the beneficiaries. However, many lifeinsurance policies exclude certain countries, such as those currently on the U.S. Department of State’s Current Travel Warnings List; so it’s important to review a policy prior to leaving the country and talk to your agent or financial professional if you have any questions.

Myth #7) Term lifeinsurance policies can’t be converted to permanent or whole life insurance policies. Fact: It is possible to convert a term life insurance policy into a permanent policy, depending on the policy purchased. However, individuals seeking to do so should expect an increase in premium. In addition, the conversion may have certain limitations or require renewals. Many people like to purchase term insurance, which tends to be less expensive, while they’re younger because it may make obtaining a preferred premium easier when they attempt to convert later.

Myth #8) You don’t need life insurance once your children are adults. Fact: Life insurance can help achieve a goal of leaving an inheritance to children or other loved ones or help relieve the burden of paying for final costs such as a funeral or final medical bills.

Myth #9) Kids don’t need life insurance. Fact: Parents mistakenly think that since kids don’t earn an income, they don’t need life insurance. The reality is that there are several good reasons why buying life insurance for children makes sense including: 1) Lower premiums, and 2) Ensure child’s future insurability in the unfortunate case that they become ill and thus will not qualify for life insurance.

Myth #10) People don’t need life insurance if they feel they have enough in savings. Fact: Most Americans do not have enough in their personal savings. According to a June 2005 U.S. Department of Commerce Bureau of Economic Analysis, the personal savings rate as a percentage of disposable personal income was 9 percent at the end of the first-quarter 2005. If people don’t have enough saved, most likely their family won’t be able to pay off final expenses or be able to hold onto assets like a home. A suggestion for those who may feel that purchasing life insurance is just another bill to pay is to have the premiums automatically paid with after-tax money from a paycheck.

“Education is the key to getting the right life insurance policy that will meet an individual’s needs,” explains Easley. “We hope that our efforts to dispel the myths surrounding life insurance will encourage consumers to look into this important financial product.”

For more information, visit http://www.allstate.com.

About Life Insurance Awareness MonthLife Insurance Awareness Month was created in response to growing concern about the large number of Americans who lack adequate life insurance protection. LIMRA estimates that more than 60 million adult Americans are inadequately insured. Forty percent of adult Americans have no life insurance coverage whatsoever. On average, insured adults have coverage equal to just 3.0 years of replacement income, which is far less than most experts recommend. Held each September, Life Insurance Awareness Month is an industry-wide effort that is coordinated by The Life and Health Insurance Foundation for Education (LIFE). LIFE was founded in 1994 in response to the public’s growing need for information and education on life, health, disability and long-term care insurance.

Allstate Life Insurance Company, Lincoln Benefit Life Company and American Heritage Life Insurance Company (Allstate Workplace Division) are proud members of the Insurance Marketplace Standards Association – IMSA. Our membership signifies our commitment to honesty and fairness in the sales and service of individually sold life insurance, long-term care, and annuity products.

The Allstate Corporation (NYSE: ALL) is the nation’s largest publicly held personal lines insurer. Widely known through the “You’re In Good Hands With Allstate®” slogan, Allstate helps individuals in approximately 17 million households protect what they have today and better prepare for tomorrow through approximately 13,600 exclusive agencies and financial professionals in the U.S. and Canada. Customers can access Allstate products and services such as auto insurance and homeowners insurance through Allstate agencies, or in select states at allstate.com and 1-800 Allstate®. EncompassSM and Deerbrook® Insurance brand property and casualty products are sold exclusively through independent agents. Allstate Financial Group provides life insurance, supplemental accident and health insurance, annuity, banking and retirement products designed for individual, institutional and worksite customers that are distributed through Allstate agencies, independent agencies, financial institutions and broker-dealers.

Securities offered by Personal Financial Representatives through Allstate Financial Services, LLC (LSA Securities in LA and PA.) Registered Broker-Dealer. Member NASD, SIPC. Main Office: 2920 South 84th Street, Lincoln, NE 68506. 877-525-5727.

* These policy premiums are shown as of May 15, 2005 for 10-year GT gold and GT platinum life insurance products. These policies have terms, limitations, and exclusions that affect continuation of coverage. Further underwriting may apply. A no-cost medical exam may be required depending on age, health, or amount of coverage requested. These policies are guaranteed renewable to age 95, and the premium is subject to change after the 10th year.

Subject to availability and qualifications. Other terms, conditions, and exclusions may apply.

1 LIMRA: An Industry Research Organization

FOR MORE INFORMATION:Rebecca Hirsch, Media Relations, (847) 402-5600

About the Author

For more information visit Allstate Insurance Digital Newsroom

Chris D is an advocate for Allstate Insurance.

By Michelle Matlock, Life Quotes, Inc.

If you were to ask a single person if they have purchased life insurance, don’t be surprised if they look at you blankly. It’s true that singles who are young and healthy rarely think about their own mortality yet alone life insurance, but here are some sobering facts:

The top leading causes of death for people between the ages 20 to 34 in the United States in December 2009, were accidents, suicide, homicide, cancer, diseases of the heart and HIV, according to the most recent mortality data issued by the National Vital Statistics System.  

Tom Currey, President of the National Association of Insurance and Financial Advisors (NAIFA) understands this trend.

“The fact is, young people don’t feel they need life insurance,” says Currey. “It’s better to take a longer view because if you decide to get married in your thirties, you could have a health condition by then that may affect your life insurance rates. Also, you would not want the financial burden of your burial to fall on your family in the event of your death.”

Term is best

A 2006 survey by the National Association of Insurance Commissioners (NAIC) found that 35 percent of young singles have a life insurance policy. In addition, only 28 percent know the difference between term and whole life, while 27 percent are aware that buying life insurance now will guarantee coverage when they get older.

“Young singles should consider at the very least purchasing a term policy with guaranteed renewal,” suggests Al Lurty, Senior Vice President of Business Development at ING. “Term life insurance is still very affordable even though there has been a slight upward movement in rates recently. You can get rates that are .20 to .25 per ,000 of coverage for a young, healthy single female on a 10-year plan.”

Brant Spesshardt, CFP and financial advisor for Dave Ramsey ELP, says that singles without children shouldn’t consider life insurance — unless there is a legitimate need.

“If their debt would fall on someone else who shares financial responsibility with them, then that would be a good reason to purchase life insurance. Also, if someone is relying on them financially [this doesn't necessarily have to be a child] then they should have a term policy,” says Spesshardt. “If none of this applies to their situation, they should focus their efforts on becoming debt-free rather than paying into an insurance policy they really don’t need.”

If you are single and in your 20s or 30s, here are few factors to think about when you consider owning a life insurance policy:

Health can be fleeting with age

 If you purchase a term life policy now, you will be guaranteed insurability in the future. Life insurance policies increase in price with age, so if you lock in a policy while you are young and healthy, you can convert to a more permanent policy later when your circumstances change. Also, as you get older there is a possibility of developing a pre-existing medical condition that may affect affordability. In some cases, depending on the severity of the medical condition, you can be denied life insurance altogether.

Funeral costs

The National Funeral Directors Association (NFDA) reported that the average cost of a funeral in 2010 was ,323. Term life provides coverage starting from as low as ,000 to more than million. Term life would adequately pay for the cost of burial.

College loans

A 2009 National Postsecondary Student Aid Study published by the National Center for Education Statistics, found that between 2007 and 2008, two thirds of college graduates with four year degrees turned their tassels to the right side and left school buried in considerable loan debt. In four years, the average amount undergraduate and graduate students borrowed ranged from ,000 to 4,000.

While Federal loans are forgiven in the event of death, a private loan may not have the same provision. Private loans are often taken out as a supplement to Federal loans and other sources of financial aid. If you are still a dependent and you’ve taken out a college loan from a private banking institution (Sallie Mae or a bank) with your parents as co-signers, keep in mind that if you were to die, they would be saddled with paying off the remainder of your the loan debt. A life insurance policy can be used to pay off the debt in full. It’s best to discuss with your lender if your school loan comes with debt cancellation at the time of death.

Long-term goals

Life insurance can also be used to fund long-term goals.

“If they purchase a term policy and lock in rates at a young age now they are guaranteed insurability and will be able to convert the policy into a whole life insurance policy if their needs become more permanent such as opening a business or purchasing a home. If you were to die, life insurance can help pay off your business loan or mortgage obligations,” explains Brian Ashe, spokesperson for the LIFE Foundation.

Ashe adds that utilizing the cash value of a life insurance policy can be very attractive in terms of making loans available to the policyholder.

“You can accumulate substantial cash value through a life insurance policy and avoid having to deal with the typical loan approval process at a bank,” says Ashe. “You can also choose the terms of repayment and pay off the loan at any time. If you have the policy open for 10 years or more, the monies in the cash value would accumulate and you would have a sizeable down payment for a home or car loan.”

Home mortgage debt

What’s more, if you had a relative co-sign on a home mortgage and you died, they would be stuck with trying to pay off your mortgage. Co-signers are responsible for 100 percent of the debt, if something were to happen that might cause the loan to default. Life insurance can be used to cover the costs of a condo or home loan.

This article was originally published at Life Quotes, Inc.

Long Term Care Insurance has been established many years ago. It all started in the beginning of the national Medicaid program. Unfortunately, a lot of things have changed now. One dramatic change that we can say is the coverage of the LTCi nowadays. It covers a wide range of services that may include nursing home cares, care in assisted living facilities and sometimes, even adult day care.

 

As we get older, the question that pops to our mind is “To get or not to get a long term care policy?” How will you protect your assets, etc. They say that if you purchase a Long Term Care Insurance, it’s like you’re protecting you assets too. It’s like a justification for the purchasers of the insurance, the reason why they are buying Long Term Care insurance is because they have assets that are worth protecting.

 

Actually, the most important asset that we should be protecting is our health. It also determines one’s ability to secure Long Term care protection. This is the common mistake that people do nowadays. They really don’t give that much consideration in securing their Long Term Care insurance not until something tragic will happen to them or their other loved ones. In this case, getting a Long Term Care insurance may not be a good idea.

 

Long Term Care is usually needed as we grow old. We have to remember that as we age, we would need some kind of assistance that sometimes, only Long Term Care Insurance can provide. We have to admit the fact that there will be also some circumstances where in we will be needing some of the services from the Long Term Care insurance even if we’re not old already. This may be because of chronic diseases or as we recover from an accident or any serious illness.

So if you really think that you should avail some of the Long Term Care insurance, you really have to choose what long term care insurance company will you go for. First thing that we should do is to contact as many companies as possible. You have to have a lot of choices. Try to compare their services, the mode of payment and which product will suit you best. Also, when narrowing down your choices, you have to be sure about the limitations of the coverage of their service, the exclusions in their service and the premiums that you have to pay.

 

Also, as much as possible, don’t let the sweet tongue of their endorsers allure you to into buying your products. You got to be wiser than them. For all you know, those endorsers did not even purchase those insurance themselves. Being wise in buying LTCi and determining the right coverage ensures meaningful retirement years.

 

 

Long-term care insurance is complicated to buy but necessary to own, according to Richard Johnson, researcher with The Urban Institute.
Video Rating: 5 / 5

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Article by Joel J. Ohman

Florida health insurance companies are now feeling the effects of the increased price transparency that the Internet brings. Now longer is it a process of days or even weeks to obtain multiple health insurance quotes from top Florida health insurance companies. The simplest and most efficient way to obtain health insurance in Florida is simply to make the top health insurance companies in the state (Golden Rule/United Healthcare, Aetna, and Humana) compete for your business!

If you cringe at the thought of a United Healthcare agent, an Aetna agent, and a Humana agent all clustering around you amongst a swarm of other Florida health insurance agents and trying to push their company’s policy upon you then read on; for health insurance shopping on the Internet has simplified everything. There are numerous Florida health insurance websites that offer Florida health insurance quotes but there are quite a few very important distinctions between the different types.

There are two main types of websites that offer Florida health insurance quotes to Florida health insurance shoppers: Marketing Organizations and Insurance Agencies.

Marketing Organizations do not sell insurance, are not regulated by any insurance department, and generally have no knowledge whatsoever concerning Florida health insurance. However, they can offer consumers a somewhat appealing service. How can they assist in purchasing health insurance?

They act as a middleman between Florida health insurance shoppers and Florida health insurance agents. When Mrs. Smith in Tampa, FL requests a health insurance quote then the marketing company sells her information as a lead to 5 or more Florida insurance agents.

Ignoring the privacy issues and the issue of the qualifications of the health insurance agents that will be purchasing your information there is the larger and more practical issue of do you really want to have 5+ insurance agents aggressively seeking your business?

Imagine that each health insurance agent is taught in their sales training to call you at least 5 times and email you at least 3 times before “giving up” on you as an insurance prospect: that means that you have received 25 phone calls and 15 emails from various insurance agents!

The second type of website that offers Florida health insurance quotes is the website that is run by an insurance agency (note that it is very important to find only an independent Florida insurance agency – meaning an agency that is not tied to working with only one health insurance company but can show you health insurance quotes from all of the top Florida health insurance companies. This is also why we will ignore the quasi third group of websites that offer Florida health insurance quotes: the health insurance carrier websites themselves. These can be a good service but very time consuming. There is a better way to shop for Florida health insurance. Read on-).

Most independent insurance agency websites offer a feature that will allow you to request Florida health insurance quotes. However, there is a much better way to shop for Florida health insurance! Rather than waiting for your request for health insurance quotes to be filled; look for a website that offers instant and LIVE Florida health insurance quotes from top Florida health insurance companies.

With instant LIVE Florida health insurance quotes you have the best of both worlds: you receive the benefits of competitive pricing by viewing the top Florida health insurance companies quotes side by side (the strong point of the marketing organization website model) as well as personal, expert help (the strong point of the insurance agency website model). Not to mention the added benefit of viewing the health insurance quotes from the different health insurance companies in the same format – enabling easy side by side comparisons of benefits. This allows for a true “apples to apples” comparison.

View up to 20 LIVE Florida health insurance quotes from top Florida health insurance companies like Aetna, Humana and Golden Rule/United Healthcare all in less than 20 seconds! View LIVE Florida health insurance quotes now and take advantage of the Internet’s price transparency!

About the Author

Joel J. OhmanFlorida Health Insurance

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Article by Todd Meyers

If you are purchasing a home in South Florida, you will be required to provide the lender with Evidence of Insurance for the property prior to home closing. The lender will require the home be covered with dwelling and liability coverage, and in some circumstances the lender will also require the home buyer to invest in Flood insurance and Hurricane insurance depending on the risks in the area the home is located. If you are not sure where to begin to find the best home insurance South Florida providers at the most affordable rate, consider the options below and make the choice that is most convenient for you.

Mortgage Lender Recommendations

A majority of the time, the mortgage lender you are financing your home with will recommend a home insurer they work directly with. The insurer recommended by the lender will generally be financially stable and well known in the industry for providing quality coverage types and adequate limits. Many home buyers choose to bind coverage with the company recommended by the mortgage lender because it is extremely convenient. The lender and insurance agent will communicate back and forth about details on the home, required coverage limits and premiums. While they will also speak with the applicant to ensure coverages are adequate and to receive the final approval of the policy, securing home insurance recommended by the lender can be the quickest way to go.

Contacting Your Existing Auto Insurance Agent

Homeowners who are prepared to bind their own home insurance also have the option to choose an insurer that is approved by the lender. Lenders will approve all financially stable home insurance South Florida insurance carriers as long as the policy provides the limits stipulated in the loan contract. If it is your first time buying a home and you carry auto insurance with an agency offering home insurance, it may be a good idea to contact your agent and receive a quote on homeowners insurance. Because you already have a rapport built with your auto insurance agent, you will feel comfortable to ask all of the questions that are crossing your mind. In addition to the comfort factor, you can also take advantage of multi-policy discounts on both your auto insurance and your home insurance which can save you hundreds of dollars a year.

There are also other methods to receive a variety of quotes without spending hours meeting with various insurance brokers and agents. Home buyers can surf the web for quoting companies that will submit your home information to several different home insurance South Florida providers. This way the insurers will contact you with quotes rather than you contacting them. No matter which method you choose, make sure to do your research on the insurer and the policy coverages and make the best decision to protect your investment.

About the Author

Visit Home Insurance South Florida for more information or visit our blog at http://floridaautohomeownersinsurance.com/home-insurance-south-florida-style/.

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