I want to start with an article on life insurance in 2010. Many people find this topic very morbid, but when I say that this contract is as important as a will, trust me and be as serious as health insurance. Due to the detailed length of this article, I have provided an easy-to-read chapter. I hope this will educate you about the importance of life insurance and its necessity. (Note: In order to better understand "you" is the policy owner and insured)
1 = Introduction
2 = When / If you already have life insurance
3 = Insurance Difference between agents and brokers
4 = policy type
5 = What is the driver and the popular type of driver
6 = physical examination
1) About general life insurance:
This is the contract between you and the insurance company, paying the company a certain amount (insurance) in exchange for the beneficiary (called death insurance, denomination or policy amount) to the beneficiary (your person) wants to You get paid when you die.) This can be determined by the type of policy (which will be discussed for the time being), your health status, your hobbies, the insurance company, the amount of premium you can pay, and the amount of benefits. This sounds overwhelming, but it doesn't matter if you have a suitable broker or broker.
Many people can now say that life insurance is like gambling. You bet you will die at a certain time, the insurance company will bet you will not. If the insurance company wins, they will retain the premium. If you win… you are dead, the death benefit is attributed to the beneficiary. This is a very morbid way of observing, and if this is the case, you can say the same for health insurance, car insurance and rental insurance. The truth is that you need life insurance to ease your death burden. Example 1: Married couples, whether they are high-cost professionals, have children, and like any other family, there are monthly expenses, and a couple has died. The possibility of a spouse returning to work the next day is very small. In fact, your ability to play a role in your career will reduce the risk of not being able to pay the fees or having to use a person's savings or investment to cover these costs without including death and funeral expenses. This can be economically disruptive. Example 2: Low-income families, one income earner died. How can families maintain their current financial lifestyle?
Life insurance is about the ability to reduce the risk of economic burden. This can be in the form of simple cash or taxation through estate planning.
Insured: The person insured by the insurance company (he/she does not need the policy holder)  (Policy) Owner: The person paying the premium, controlling the beneficiary, and basic Have a contract (no need to be insured… I hope you understand that it can be / or).
Denomination: Also known as death benefit. The amount paid to the beneficiary.
Beneficiary: person/person/organization accepting denomination (death pension)
2) When/if you have life insurance:
First, you should check your beneficiary once a year, and your policy will be checked approximately every 2-3 years. This is free! You need to make sure that the beneficiary is the person/person you want to get paid for! Divorce, death, disagreement or anything similar can allow you to change your thoughts about someone to gain benefits, so make sure you have the right person, property/trust, and/or organization (preferably a non-profit organization) to receive benefits. . In addition, you will need to review every 2 – 3 years, as many companies can offer lower premiums or increase insurance premiums when you renew your policy, or if you find that competitors who see your premiums may compete with you business. Either way, you should consider saving money or increasing the amount of the policy! This is a win-win for you, so there is no reason not to do so.
3) What is the difference between a life insurance agent or a broker? :
The main difference is that the agent is usually an independent salesperson and usually works with different insurance companies to provide the best policy for the client when working for a particular company. My personal advice: Always choose an agent. Not because I am a person myself, but because agents can find your interests by offering different quotations, types, available drivers (explained later) and the pros and cons of each insurance company. If you don't like a particular insurance company, tell the agent that he should go to the next carrier (if he insists for some strange reason, please fire him). Buyers beware: Agents should be paid by the carrier of their choice, not by you. If the agent asks for money in advance, then run! You also need to pay an insurance consultant, but for the sake of simplicity, please refer to the agent. Consultants and agents also review current policies to reduce premiums or increase benefits.
4) Policy Type:
There are two main categories: regular insurance and permanent insurance. Each of the 2 categories has subcategories. I will explain them at a glance to make the best choice for you and your loved ones. Remember that you can have a legacy/trust or organization as a beneficiary. (Note: There are more sub-categories in these subcategories, but the differences are very small and self-explanatory, I have not included them in this article. Once you talk to the agent, you will have enough knowledge of this article and you will know Ask questions and know if your agent is right for you.
Term insurance: A temporary insurance policy in which the beneficiary pays only when the insured (you) dies within a certain period of time (hence the "term" one Words. Regular insurance is usually cheaper and death compensation is small. Some people do not need a medical examination, but because the insurance company's risk is unknown, it is expected to pay a higher premium. In addition, regular insurance usually does not accumulate cash value (in permanent Explain in insurance), but can be purchased on top of your permanent policy (for those who may have covered it):
Convertible period: The ability to convert a policy into permanent insurance. There are some very good policies in certain There is no need for a medical examination, driver history or dangerous regulations in order to be converted into permanent insurance and to enjoy all the benefits provided by the permanent insurance policy.[1 9659002] Renewable Term: The ability to renew the term in the absence of insurable evidence.
Term: Fixed premiums within a certain period of time rather than increase (for those young people who are expected to increase their salary within 10 years)
Increase/decrease deadline: The insurance coverage for the entire period increases or decreases while the premium remains unchanged.
Group deadline: usually used by employers or associations. This includes several people to reduce premiums. Very suitable for small business owners)
Perpetual insurance: As the name suggests, this provides insurance over the life of the insured. This also establishes the value of cash, which is great for taxation, because if you use this There is no tax effect on the cash value of the loan to yourself. There are very few policies in the general policy that can be tax-free. But in most cases, if you withdraw the cash value, you only need to pay the premium tax (the increased amount), this is Great. Just make sure your agent knows that the cash value will not exceed the death benefit, otherwise you will be charged a 10% tax! If you have a family, you should consider permanent insurance and don't mind increasing the premium (the amount you pay) compared to the time limit.
Traditional lifelong life: pay a fixed amount of premium to cover the entire life of the insured, including accumulated cash value.
Single premium full life insurance: one-time insurance full life insurance (usually in order to get huge Death insurance, the amount of one-time insurance is very large.)
] Participate in life insurance: just like the traditional whole life, except that it pays dividends that you can use as cash or pay dividends for you! We cannot guarantee that you will Dividends are earned based on the performance of the insurance company.
Limited payment full life insurance: Lifetime limited payment but requires higher premiums because you are actually paying a shorter fee for how much time. This can be based on the amount paid (10, 20, 30, etc.) or a specific age (65 years old, 75 years old, 85 years old, etc.).
Global Life Insurance: Flexible premiums and flexible face amounts with unbundled pricing factors (death benefits). For example: If you pay X amount, you can get the X amount.
Index universal lifespan: Flexible premiums/revenues and cash values are tied to the performance of specific financial indicators. Most insurance companies have a credit rate (percentage increase) that is not below zero.
Variable Life Insurance: Death benefit and cash value fluctuate depending on the investment performance of a separate account of an investment option. Usually the insurance policy guarantee benefits will not fall below the specified minimum.
Variable Universal Life Insurance (also known as Flexible Advanced Life Insurance and Universal Life II / 2): a combination of variable and universal, with superior/death benefit flexibility and investment flexibility.
The last survivor of Global Life Insurance (also known as survivor or "two deaths" insurance): only two insurance companies can pay 2 people and death benefits when they die. For families paying estate taxes (usually high net worth individuals), this makes sense and some are necessary.
5) Life Insurance Driver, what it is and why it is very important:
Rider is the name of the benefit added to your policy. This provides a special supplement to the policy that can be mixed and combined. There are many types of drivers, I have to write a different article about drivers (and insurance companies often add new types of drivers) but I want to at least name the most popular (and in my opinion, the most important) in the selection policy You should be highly considered. The rider increases the cost of the premium, but does not easily take the rider; it can be a lifeguard!
Accidental Death Beneficiary (AD&D): If you die as a result of an accident (ie, a car accident, falling down the stairs), an additional death benefit will be paid to the beneficiary. This is especially important if insurance companies travel frequently, are relatively young and have families. Please note: You can purchase AD&D insurance separately.
Accidental Death and Dismembered Knight: Same as above but if you lose your limbs or vision you will pay death insurance. If you lose 1 eye or 1 limb, some policies may offer a smaller amount. This is great for those who work with both hands.
Disability income rider: If you are completely and permanently disabled, you will receive monthly income. You can get a specific income level. Pay attention to this detail, according to the policy, it will pay you according to the duration of the disability or the time frame of the rider.
Guaranteed Insurance Knight: The ability to purchase additional insurance based on age or policy years must check the insurance eligibility.
Rank Term Knight: Add a fixed amount of insurance to your permanent policy. This rider can add 3-5 times the death benefit or your policy. This is not a bad thing!
Exemption for Advanced Knight: If you become disabled because you can't work/earn income, the exemption will save you from paying premiums during the life of your policy! Family Income Welfare Knight: If the insurance company dies, the rider will provide income for your family for a specific period of time. There is a huge gap between policy and insurance companies, so it is related to the details of the rider.
Accelerated death beneficiaries: Insurance companies diagnosed with terminal illness will receive 25-40% of the death benefit of the basic policy (a decision between the insurance company and the insurance company). This will reduce the benefits of death, but depending on your financial situation or lifestyle, this rider should not be underestimated and should be carefully considered.
Long-term care rider: If the health of the insurance company forces them to stay in a nursing home or take care of them at home, the rider will provide monthly payments. Please note: Long-term care insurance can be purchased separately for more benefits.
6) Physical examination:
This section is not meant to scare you away, but to prepare your physical exam mentally (and possibly physically) so that you know what will happen and get the lowest possible premium while getting the highest death. interest. If you exercise regularly and maintain a healthy diet, this shouldn't really be a problem (note that I am talking about habits rather than diet. Diets don't work long hours).
Most insurance policies must take the exam. Many regular insurances do not require one, but expect low death benefits and/or higher premiums. The idea of the exam is not just to see if you can be insured, but also to see how much they will charge the insurance company/policy holder. The exams are done by “assisted medical” professionals who are independent contractors hired by insurance companies who come to your home or have an office where you/insurance companies visit. They are licensed health professionals, so they know what to look for! In rare cases, an insurance company may ask your doctor for an Attending Physician Statement (APS). This must be provided by your doctor and not by your copy. Tip: The “Auxiliary Medical” job is a reason for the insurance company to increase the premium, so don't provide any unreported details.
The first part (either called Part 1 or Part A) is done by an agent or you. Part 2 / Part B is the Auxiliary Medical or Doctor section. The best way to do this is to have your agent contact a paramedic who specializes in mobile exams so that you can take the exam more easily. The health care provider will contact you to arrange an appointment. The exam is not an elective, so it is not yes or no, but time and place. Except for time, this entire exam will not take your time, so take time, life insurance is very important!
The medical staff/physician will record your medical history (problem), weight and weight, blood pressure, pulse, blood and urine. Other tests will vary based on age and policy amount (yes, the higher the death benefit = the more tests that must be provided). Now, if the policy is material, the insurance company may not send an auxiliary medical staff but need an actual doctor to check you. Of course, this is chosen by the insurance company, so please remember my tips! This exam may even include treadmill tests and additional crazy tests to determine if you are eligible for large and low premiums. On the other hand, if you choose a low insurance policy, you only need one paramedical staff to perform the simple tests mentioned above without additional checks.
What are they looking for: health care workers/doctors are looking for your life that may shorten your health. Remember that insurers do business here, and if you are in debt, they may be reluctant to take on or increase insurance premiums to make the risk affordable. Blood and urine are used to observe the following:
– Your antibody or HIV antigen
– Cholesterol and related lipids
– Anti-hepatitis antibody
– Liver/kidney disease
] ] – Immune Disorder
– Prostate Specific Antigen (PSA)
– Drug testing, such as cocaine
Results: They were sent directly to the insurance company's home office insurer for review. Many times you can request (must be a written request) to receive a copy of the results, but many insurance companies will do so automatically. Many times they will find anomalies, but usually don't cause attention, just follow up with your medical professional (remember: the insurance company will look at these checks with a "fine tooth cone" to understand what the risk is). The underwriters will review the exam results and applications (remember the 1/a section? Well, now they want to see if you are lying too) and determine the premium amount. Smokers pay more; any nicotine in your system will think you are a smoker, even if it's just social.
Premiums are determined by the category you are suitable for. This actually depends on how the insurance company considers the factors, but the general rule is that you are at higher risk and you pay a higher premium. If you are a standard risk, you will pay a standard premium, and if you are the preferred risk, you will pay a low premium.
You can reject the policy after receiving the final quotation after the exam, but remember that all results will be part of the MIB team database (Medical Information Board). This is the medical information exchange center that insurance companies use to store information after you apply for life/health/disability income/long-term care/significant illness insurance. So in seven years it will be on the database. You can receive a free report (such as a credit check) every year on our website, which I include at the bottom of this article.
Now you know almost everything about life insurance. I hope you realize the importance of it. This may seem like a lot, but the hardest part is choosing the type of policy that's right for you. This can be done with the help of your agent. In the end, everyone is different and everyone should analyze their situation and the needs of the beneficiaries. If you care a little about someone you love, if you are no longer with us, then you should consider life insurance. Once you know that you and your loved ones are covered, no matter how much you or that person did, there really is a feeling. For many people, no matter what the situation, the people they love don't need death benefits ("They earn enough money to survive" is the biggest reason I hear life insurance), this may be a simple last one. Gesture "I love you" or appreciate them as part of your life.
I hope that I can educate you about life insurance. If you have any other questions, please feel free to email me.
MIB website: http://www.mib.com/html/request_your_record.html