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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.

By Michelle Matlock, Life Quotes, Inc.

Although there have been medical advancements that have helped to prolong the lives of HIV patients, finding life insurance coverage for HIV infected individuals continues to be elusive.

According to the most recent statistics by The Henry J. Kaiser Family Foundation, the number of new HIV infections in the U.S. reached 56,300 in 2006. The number of people living with HIV/AIDS was 1.1 million, with 468,000 of those individuals living with AIDS. The U.S. Department of Health and Human Services reported in 2007, that the largest number of new HIV/AIDS diagnoses for persons aged 40 to 44 accounted for 15 percent of all HIV/AIDs diagnoses in that year.

Respectively, the use of antiretroviral (ARV) Therapy or highly active antiretroviral therapy (HAART) such as protease inhibitors with a combination of other HIV drugs have extended the life of those living with HIV by slowing the progression of the disease to full-blown AIDS. A study by the National AIDS Treatment Advocacy Project in New York and the ATHENA National Observational Cohort Study in February 2010 found that the average life expectancy of people living with HIV has been extended from seven years (before 1995) to 24 years — if they follow the proper drug therapy regimen. This includes those who take their medications on a regular basis and maintain a healthy lifestyle.

Ryan Pinney, brokerage director and life impaired risk specialist at Pinney Insurance Center Inc. in Roseville, Calif. says following the introduction of drug cocktails that counter the infection— people with HIV can expect to live longer healthier lives.

“If you contracted HIV in the late 70s or early 80s, it was a death sentence. Nowadays, with the addition of antiviral drugs, it is not uncommon for people with HIV to live 20 years without the condition developing into AIDS,” says Pinney.

If you have a strong prognosis at the start of the illness, meaning you have managed to keep your CD4 T-cell count above 500 cells for at least three years, chances are you will have a greater life expectancy. In July 2008, a study conducted by the University of Bordeaux, France found that HIV-positive males whose CD4 count was above 500 cells for an average of three years, had death rates that were identical to those in the general population. Unfortunately, among HIV-positive women, the death rates didn’t balance out even after five years of maintaining a count above 500 cells. In fact, HIV-positive women experienced a 2.4 percent increase in death rates when compared to the general population. More studies are pending that help explain this phenomenon.

Pinney notes that for people who contract the disease at a young age, the improbability of receiving a life insurance policy is higher. However, if you have lived longer with HIV, it might be easier to get a policy.

“The reason for this is because you have a proven track record of maintaining the illness,” says Pinney.

Dr. Ann Hoven, chief medical officer for the Individual Life Division at the Hartford, says that insurers have considered the possibility of covering HIV, but there are still a number of unknowns.

“The basic dilemma is that although the life expectancy for someone with HIV can be over 20 years, those who become newly infected are younger people,” says Hoven. “The life expectancy of a person with HIV is more like 40 to 50 years of age, and most people expect to live to be in their 60′s, 70′s and 80′s.”

She adds that it can be difficult to make assessments of a person’s life expectancy with HIV and set premiums based on the information they receive.

“The data really isn’t there yet,” she says. “There are people who seem to be resistant to infection where their immune system takes care of it, and then there are others that are completely vulnerable to this illness. The results of the studies that have been conducted haven’t provided any definitive data to pull from when it comes to estimating how long an individual can live with this illness. It’s very case by case.”

Limited options

When it comes to purchasing life insurance, most people who have been diagnosed with HIV will be faced with an automatic decline or enormously high premiums.

“You would have to have a breakthrough to make the numbers work out when trying to write a policy for someone with HIV,” says Hoven. “When you look at the numbers the cost would be so astonomical that no one would buy it [the policy].”

“If you have been diagnosed with HIV, getting life insurance may be tough, but it’s not unheard of,” says Pinney. “It can be accomplished if you receive insurance through a group plan, such as an employer, trade association or union.”

However, if you are HIV-positive and you attempt to get life insurance on your own, most insurance companies will refuse to sell you a policy, this includes companies that offer “simplified issue” life insurance coverage where you would only have to answer a few health questions. Even when applying for a simplified issue policy, you will likely be required to answer questions about HIV/AIDS. Other, more traditional individual life insurers may also ask that you take an HIV test.

“The requirement by insurers of an HIV test varies by state and the face value of the policy,” says Kim McKeown, spokesperson for the Society of Actuaries. “Nonetheless, the underwriting process is used to discern information on one’s medical profile, and if the person is taking antiviral drugs which would be found in the medical record, this might prompt an insurer to ask for an HIV test. Even with the best medication, folks with HIV do have a shortened life expectancy so the best information possible is critical during the underwriting process.”

Mckeown adds that from an insurance company’s perspective, asking a potential policyholder to take an HIV test is really no different than asking someone about his or her family health history, what types of prescriptions they take daily, or if they smoke.

If you are able to get a simplified issue insurance plan, they have a limited face value amount, typically 0,000 to 0,000 on the high-end of the spectrum.

A more viable option is purchasing a “guaranteed issue” life insurance plan. When a policy is considered “guaranteed issue” this is the maximum amount of coverage allowed to an individual without a medical evaluation. Anyone can purchase a guaranteed issue plan since they do not require a medical exam, but they are usually nuts and bolts policies that only provide a death benefit. The death benefit is generally ,000 or less and if you die within the first two years after you buy the policy, your loved ones could receive nothing.

There are also small group plans to consider that are essentially employer-sponsored specialty plans that cover key employees at a company.

Pinney recalls a situation where a group of partners at a firm requested a guaranteed issue group plan that would cover all the senior and junior partners at the firm. One of the individuals was HIV-positive and the group managed to negotiate a policy that provided over a million dollars in life insurance to each person in the group.

While it’s clear that this method can work, Pinney says that because of the stigma attached to people living with HIV, this is primarily the reason why most employees won’t suggest this type of coverage to their employer.

While someone with HIV may be able to get a life insurance policy from an insurance company that specializes in high-risk cases, it’s certain that it will most likely be a costly policy with a graded benefit. For example, a 40-year-old HIV-positive male can get a ,000 whole life policy, but he would pay a high annual premium of ,600.

“There are very few companies, maybe three or four that offer policies for people with HIV,” explains Pinney. “What they amount to is a guaranteed issue whole life policy with a graded death benefit or a benefit that increases gradually with age and eventually levels off during the life of the policy.”

Still, Pinney says that if you die during the first, second or third year of the policy you may only receive your premiums and dividends with interest, other companies may only payout a specified percentage of the benefit amount if you die within that timeframe.

Will insurers cover HIV in the future?

Guaranteed Trust Life Insurance Co. based in Glenview, Ill., was the first insurance company to offer “impaired risk” whole life insurance to HIV-positive individuals. The company ceased selling the policies in 2004.

“One of the biggest problems with pricing an HIV policy is figuring out how to price it without getting beat up,” recalls Pinney. “At the start of offering such a product policyholders were looking at a flat extra of per ,000 in insurance.”

Pinney said that recently he attended a life insurance conference and posed the possibility of an HIV life policy to major life insurers. Unlike HIV, other medical conditions, such as cancer or heart disease have a longer track record of people having these conditions and better statistical data that an insurer can draw from. Even though HIV/AIDS has been around since the early eighties, Pinney notes that the underwriting science hasn’t caught up with medical science yet.

“I don’t see this type of product entering the market again anytime soon,” notes Pinney.

“Part of the problem is there is no mortality data available to create an accurate pricing model. I would be surprised if any insurance company would even remotely consider it for quite awhile.”

“When we solve the societal issues concering HIV and find better ways to treat the illness or even a vaccine, I think that will be when the situation changes,” says Hoven. “I really don’t see this happening in the next five years, but we’re definitely getting closer to it. “

Hoven recommends that if you have been diagnosed with HIV and your employer offers life insurance, it’s best to take advantage of it.

“You wouldn’t go through medical underwriting and you would receive the group-based premium that includes people who have a variety of different medical concerns,” says Hoven. “Also, if you retire, most group plans allow the policy to be converted to a whole life policy.”

Whose at risk?

From 2004 to 2007, the numbers of HIV/AIDS diagnoses increased among men who have sex with men (MSM).

In that same timeline, the estimated numbers of HIV/AIDS diagnoses increased among male and female adults and adolescents with HIV infection attributed to high-risk heterosexual contact.

Cumulatively, MSM (53 percent) and persons exposed to high–risk heterosexual contact (32 percent) accounted for 85 percent of all HIV/AIDS cases diagnosed in 34 states in 2007.

By gender, 77 percent of adults and adolescents living with AIDS were male. Of the 104,560 female adults and adolescents living with AIDS, 66 percent were exposed through heterosexual contact.

Source: United States Department of Health and Human Services

This article was originally published at Life Quotes, Inc.

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Article by Denise

Now that you are ready to purchase life insurance, the choice before you is what type of life insurance would best suit your purpose. Life insurance is not a one-size-fits-all product and each one must assess his or her own personal situation to come up with the right coverage and the number of years you would need that coverage. The two broad categories of insurance open to you are permanent or term insurance. Let’s take a look at each one.Term life insuranceThis is the simplest type of life insurance and is often considered to be insurance at its best. You pay a certain amount of premium against a death benefit amount (coverage) that your family would receive in case you die during the tenure of the term insurance policy. Term insurance is temporary. This means you can purchase a policy for a period of term, say, 5, 10, 15, 20 years or even longer. You pay premiums monthly or annually. Annual payments work out to be cheaper than paying premiums every month. There is no savings element involved. If you should outlive the policy, the money you have paid towards premiums is gone. To avoid this, life insurance companies also offer a type of term insurance called return of premium. At the end of the term period, if you are still alive, all the premiums you have paid will be refunded to you, tax free. There are several types of term life policies, such as level term life. Level term assures that your premiums remain level, or the same, during the entire term period. This avoids any unexpected hikes in premiums during your term period that you had not planned for.Since term life is temporary it is the cheapest insurance you can purchase. For example, a 40-year old male who is in top health, living in California can get term insurance for as little as 0.00.To summarize, here are the main features of a term insurance policy:

Term life is temporary life insurance and can be purchased for a specific term period. After the term period is over, you would need to renew the policy if you still feel you need to be insured.Term insurance is the most affordable.There is no savings element involved.Term life can be renewable – look for renewable options that do not require you to prove your insurability after the term period is over.You can purchase term insurance at a cheap rate right now and convert to a permanent life policy at a later date. You would need to look for a term life policy that offers you this conversion option.Permanent Life InsurancePermanent insurance (also called whole life insurance) offers lifelong protection. It is more expensive than term insurance because, along with insurance coverage, there is a savings component attached to it. For the first ten years, your permanent life policy will not accrue much interest. Much of the interest will be used to pay off administrative fees. You cash value will only kick off after that.Another benefit to owning a permanent life policy is that you can borrow from it anytime you need cash. Interest rates are high, but should you need the money, you are able to take a loan against your whole life policy.To summarize, here are the main features of a permanent life insurance policy:Permanent life offers life insurance protection for your entire life provided you pay your premiums.It is more expensive than term insurance, but offers a cash value component not found in term insurance.You can take out a loan against a permanent life policy.The premiums remain the same throughout your life.Permanent or Term Insurance?Most experts recommend that you purchase a term life policy and invest the difference (between term and permanent) in a separate investment instrument. This is more likely to fetch you more money on interest than a permanent life policy would. Others also suggest that life insurance is not something you need for a life time. Growing families, in particular, who have limited income, prefer term insurance because it is the most affordable and meets their coverage needs most satisfactorily. If you are looking for cheap life insurance from some of the most financially strong life insurance carriers in the industry, request for free insurance quotes online. Comparing multiple term life insurance quotes online is quick and convenient. Some websites also offer professional guidance to help you make an informed decision.About AccuQuote:AccuQuote is a leader in providing term life insurance quotes to people across the United States. In 1986 it began operating with a single goal: to make the process of buying term insurance as easy as possible for its customers. Their experienced professionals consistently deliver the most affordable term insurance rates by comparing thousands of life insurance policies from dozens of top-rated carriers.

About the Author

Denise Mancini-Blonda is manager of public relations and marketing communications for AccuQuote. In addition to overseeing all corporate media relations, internal executive and employee communications, she plays a key role in the overall content development of the company’s online and offline marketing campaigns. This entails overseeing and implementing AccuQuote’s social media, blog and podcast strategies, as well as its word-of-mouth marketing campaign.

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Article by David Livingston

Insurance is the process in which money is collected from various people within the society and distributed among them when the insured event, which is mostly unforeseen, occurs. Stress is being put on the word unforeseen because the main benefit of insurance is that it tackles emergencies. The need for insurance was felt in the early days when there was a lot of destruction from natural elements such as fire, floods etc. The insurance industry has come a long way since then. Let me now tell you something about the development of insurance since then.

The life insurance policy that was first to be introduced is the traditional cheap term life insurance and it is prevalent even to this day. Term life insurance is the form of insurance where you avail nothing but death benefit. This form of insurance continued for sometime until cash back policies emerged in the insurance industry. People generally began to like cash back policies for various reasons.

In term life insurance, if you survive the term, no benefits are paid. However, in cash back policies you can get some returns even if you survive the term. The condition of no payback creates a problem in term life insurance that if one chooses a term duration which is insufficient then one may survive it and if he renews the term the term life insurance cost goes up. However, in cash back policy one can get some part of the money back which would be helpful. This would increase the utility of cash back value to a great extent for any insurance buyer.

One of the best ways of buying life insurance would be to divide the investment intelligently between term life insurance and other pure capital investments. This would help increase your returns to a great extent. There are several factors you need to take care of when buying a policy: 1. You need to buy the policy at a young age which would reduce insurance rates on your policy. 2. Your term period should be chosen carefully. It is better if you choose a longer term because it would suit your needs better and make it easier to manage the policy effectively without renewing your term several times. 3. Using tobacco and alcohol would not only damage your health but also insurance prospects due to increased risk of contracting several illnesses. If you quit smoking, you can get a reduction of upto 50% in insurance rates. 4. Obesity and high blood pressure can be detrimental to your life expectancy which would attract higher insurance rates for your policy. You can take up physical fitness seriously.

If you are too busy to appear for a medical test you can opt for life insurance no exam option. Most of the people resort to this option when they have a medical condition at the time of buying policy This policy lets you get life insurance cover without undergoing a medical exam to assess your insurability. It is a simplified issue policy which can be bought instantly from the website of the insurer by filling out an online health questionnaire.

This is a policy, which will suit busy and successful people to the hilt. Here you do not have to undergo the standard medical tests that are otherwise required by the carriers. Moreover, if you feel that you are not satisfied with the services of an agent then you can leave him and apply online. You will get quotes online. Then the form can be filled up and service will be provided instantly.

It is also important to work on your underwriting profile while looking for any kind of insurance option. Every insurance company has its own set of underwriting guidelines which serve as eligibility criteria for those seeking life insurance. One can improve his underwriting profile to meet the underwriting guidelines of the insurer. This would help a great deal in getting the best insurance rates and attractive features on your policy it is also important that you do not hide any issues form your insurer or it could result in later negative consequences for your policy. It is better to discuss any issues and sort them out to get the best results possible.

You can opt for specialized insurance options instead of sticking to life insurance no exam option when looking for a life insurance option. These options offer competitive insurance rates based on the severity of the medical condition. If you have a good level of health management, you can also get attractive features on your policy. If you manage your condition well enough, it would increase your life expectancy and help you get affordable life insurance rates for your policy which would make it easier to manage the policy in an intelligent manner.

About the Author

Article by David Livingston of EQuote.com, a website with the best term life insurance quotes and life insurance quotes information in the country.

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