Home » Insurance

Category Archives: Insurance

Life Insurance-Why you Shouldn’t Wait

Why You Shouldn’t Wait To Get Life Insurance

You may not think you need life insurance now, but if you wait too long to take out a policy, it could hurt you in the long run. Waiting until you feel you really need a policy means you will be older and the odds of having health problems increases. This can mean higher life insurance premiums or worse, being completely denied for a policy. Starting a life insurance policy earlier in life is a smart decision all around.

Age And Health Issues

It’s a simple equation: as we age our odds of having health problems increase. You will also be paying the premium on the policy for a shorter time period while being more likely to pass away. Life Insurance companies take all of these factors into consideration when they determine your premiums. Every year that you wait to take out a life insurance policy assures your premiums will be higher. It also increases the risk that some health issue will develop that will cause the insurance company to see you as a higher risk. The higher the risk they see of having to pay out on the policy before they have received sufficient premium payments from you, the more they are going to charge you to protect their interests. So, the longer you wait to get a life insurance policy, the more you are going to pay for it.

You Could Be Denied

If you are young and healthy you will be approved for a policy relatively quickly. But as you age, health problems can crop up that might disqualify you for a life insurance policy altogether. Heart issues, high cholesterol, diabetes and more are all problems more likely to appear with age—and this could mean you won’t be able to obtain a policy. If you take out a life insurance policy before issues like this occur, the insurance company can’t take it away due to changes in your health status.

Taking out a life insurance policy before you really need to have one is a smart choice and an investment in your future. Once you have a policy in force your premiums won’t increase, and as long as you continue to pay them you will be covered for the duration of the policy—for your entire life if you have chosen a Universal or Whole life policy. Even if you don’t have a family to protect now, you will already be prepared for that eventuality and have an affordable policy to cover them thoroughly.

Protect Yourself With Disability Insurance

Protect Yourself With Disability Insurance

When it comes to selecting the insurance policies you need to protect yourself and your family from unforeseen events, you have probably covered all of the basics. Auto insurance, homeowner’s insurance, life insurance.  Many people never look beyond these main three. There is one particular policy, however, that is often overlooked an that could prevent you from losing everything in the event that you are unable to work. Disability insurance is one of the policies that everyone should carry, but in many cases it is overlooked.

You Really Do Need It

Many people balk at the cost of paying for disability insurance, especially when they are already paying premiums on so many other policies, most of which are not optional. It is easy to let something like disability go.  However, becoming disabled is a very real risk that each of us faces every day. Accidents, injuries, illness—there are many things that could leave you unable to work and thus without an income.

Disability insurance is designed to protect you in the event of any sort of disabling event that puts you in the position of being unable to bring in your regular salary. You may have some coverage with your employee benefits, but in most cases it isn’t really enough to pay your living expenses and take care of yourself and your family. A disability insurance policy will make certain you have the money to continue paying the bills and living your chosen life in spite of a disability.

More Than A Good Idea

Most people will acknowledge that having disability insurance is a good idea, and yet many of them still won’t take out a policy. Much like health insurance, disability insurance is one of those policies everyone wishes they had when it is too late. You can’t get coverage once you are already disabled. Sadly, this is the time when many people realize just how important it really is.

Disability insurance should be considered just as important as those top three: auto, home, and life. It truly is a must-have insurance policy that will make an incredible difference should the day come when you need to use it

Talk to your insurance agent about disability insurance. They will help you determine how much you need and what type of policy is right for you; it is well worth it for your peace of mind.

Protect Yourself With Disability Insurance

Protect Yourself With Disability Insurance

When it comes to selecting the insurance policies you need to protect yourself and your family from unforeseen events, you have probably covered all of the basics. Auto insurance, homeowner’s insurance, life insurance. Many people never look beyond these main three. There is one particular policy, however, that is often overlooked and that could prevent you from losing everything in the event that you are unable to work. Disability insurance is one of the policies that everyone should carry, but in many cases it is overlooked.

You Really Do Need It

Many people balk at the cost of paying for disability insurance, especially when they are already paying premiums on so many other policies, most of which are not optional. It is easy to let something like disability go. However, becoming disabled is a very real risk that each of us faces every day. Accidents, injuries, illness—there are many things that could leave you unable to work and thus without an income.

Disability insurance is designed to protect you in the event of any sort of disabling event that puts you in the position of being unable to bring in your regular salary. You may have some coverage with your employee benefits, but in most cases it isn’t really enough to pay your living expenses and take care of yourself and your family. A disability insurance policy will make certain you have the money to continue paying the bills and living your chosen life in spite of a disability.

More Than A Good Idea

Most people will acknowledge that having disability insurance is a good idea, and yet many of them still won’t take out a policy. Much like health insurance, disability insurance is one of those policies everyone wishes they had when it is too late. You can’t get coverage once you are already disabled. Sadly, this is the time when many people realize just how important it really is.

Disability insurance should be considered just as important as those top three: auto, home, and life. It truly is a must-have insurance policy that will make an incredible difference should the day come when you need to use it

Talk to your insurance agent about disability insurance. He will help you determine how much you need and what type of policy is right for you; it is well worth it for your peace of mind.

 

Today’s Inspirational Quote

“If you want to know the past, to know what has caused you, look at yourself in the PRESENT, for that is the past’s effect. If you want to know your future, then look at yourself in the PRESENT, for that is the cause of the future.”

— Majjhima Nikaya

Universal Life Insurance And Cash Accumulation

Universal Life Insurance And Cash Accumulation

You have probably heard about people taking out a loan on their life insurance policy, but don’t really understand what that means. How can you take out a loan on insurance? The answer is simple: you can access a cash accumulation account that grows over time when you are paying the premiums on a Universal (whole or permanent) life insurance policy. How does it work? Let’s take a look at the basics.

Cash Accumulation Accounts

When you pay the premium on a Universal life insurance policy, part of what you are paying is the actual premium, or what is also called the cost of insurance. This is the minimum amount that is required to keep the policy in force. The remainder of the premium, usually a pre-determined amount, goes into a savings account where it earns interest and accumulates over time. The longer you pay the premiums on the policy, the more money will add up in the account. You can even choose to pay a higher monthly premium so that more money goes into the savings account.

Loans And Surrenders

There are two ways to access the money in your life insurance account. One is a loan, and the other is a surrender or a withdrawal. The main difference is whether or not you pay tax on the amount. Because the money placed in a life insurance cash accumulation account is tax-deferred, you won’t pay any tax on it as income unless you take it out as a surrender. When you take it as a loan, however, you don’t have to pay tax on it. You do, however, have to pay it back to the cash accumulation account with interest. If you withdraw money from the account as a surrender instead of a loan, there may be a surrender charge that you will have to pay to get the money out. Bear in mind that if you should pass away without paying back the loan, the amount will be deducted from what is paid out to your beneficiaries.

How Do I Access The Money?

If you want to access the cash value of your policy, contact your insurance agent. It’s a good idea to discuss the pros and cons of a surrender versus a loan before you make a decision. Your agent can give you all the necessary details such as surrender charges and interest rates on the loan to help you choose the right option.

Is An Indexed Annuity Right For You

Is An Indexed Annuity Right For You?

If you are shopping for annuities to add to your retirement income plan, you have probably run into quite a few options. When it comes down to the decision between a standard annuity and an indexed annuity, it helps to understand the difference between the two and the level of risk and return for each option.

What Is The Difference?

An indexed annuity is very similar to a standard annuity; both are offered by insurance companies and provide a monthly income as a return on investment. The return on both is based on interest earned as laid out in the annuity contract. The main difference, in fact the only difference between the two, lies in how the interest rate that provides your return on investment is calculated. In a standard annuity, the interest rate is set out in the contract from the start. With an indexed annuity, however, the method of calculating the interest is a little different.

An indexed annuity is a standard annuity that is connected to a particular index, and it is from this index that the interest is derived. A formula is used to determine how much your return will be—based on how the index performs—as well as a cap that is placed on the return in the contract. This type of annuity usually also has a fee attached to the return, which lowers the return even further.

Why Choose An Indexed Annuity?

Indexed annuities are a good fit for those with a relatively low tolerance for risk but who are still planning for their upcoming retirement and willing to take on a little more risk in order to garner a larger income. Indexed annuities have a low risk because there is a minimum return that is guaranteed in the contract. Still, risk is involved, because the return on the investment can fluctuate quite a bit, whereas a standard fixed annuity is more stable.

Choosing an indexed annuity increases the potential for returns while increasing your risk very little. Many investors, especially those looking to boost their retirement income a little, are willing to take on the small risk of an indexed annuity in the hopes of seeing a good return.

Of course, the choice of annuities is a personal one and based on your financial position and your retirement needs. Your insurance agent can help you to determine if indexed annuities are right for you and show you how they can fit into your portfolio to help you reach your retirement goals.

%d bloggers like this: