life insurance

Understanding the Life Insurance Policies for Senior Citizens

People who are above 65 years are often relieved of their financial responsibilities. They want to live a free life without worrying about the financial burdens of their family. Although this picture seems viable but in reality it is not always true. Financial worries often keep on going in the households that affect every member of the family. In such state, senior citizens, who are no more the earning partners in the family, feel the need to contribute to the expenses of their younger ones. One good solution to this situation is that the senior citizens can buy insurance policies. There are schemes under which the companies have started offering life insurance over 65 years of age.

In order to understand that “how insurance policies work for senior citizens”one needs to understand the reasons those propagate the seniors to buy life insurance policies.

• Tax advantages: People who are in business often opt for these policies to enjoy tax advantages. The policies of life insurance for seniorsoften come with tax benefits. In order to save their money for future instead of paying it in terms of tax, senior citizens buy life insurance policies.

• Meeting the death and final expenses: Senior citizens very well realize the expenses that are incurred on the death occasion in the family. That is why they often decide to buy life insurance policies for themselves so that they can support their family expenses. With the experiences of life, they can very well understand that how insurance policies work for senior citizens.They buy these policies so that their family can take care of their burial expenses without having to worry over the finances.

• Pay-off the debts: The retired people want to pay their lifetime debts before they leave the world. They may use their pension income for EMI based monthly payments of debts. In order to assure that their financial liabilities are not passed on to their children or survivors in the family, they buy life insurance policies. Their families can take care of the debts that remain after the passing away of the policy holder.

• Self esteem: One significant reason that people often enquire about senior life insuranceis their self-esteem. They hold the position of “provider” in the family throughout their life. So they plan to leave some financial gifts for their children. On their death their family can use the policy amount in the most viable way.
Now let us understand that how insurance policies work for senior citizens?
There are two types of insurance policies for seniors:
• Term life insurance: Such policies come with a time frame. For example ‘Mac’ who is 65 years old can buy a term life insurance worth $10,000 for his daughter. It means she can withdraw this much amount of money in the 10 years time period. After this tenure, the policy ceases to exist. In such policies, usually the rate of interest is lower and duration is fixed.
• Whole life insurance:This policy extends till the life time of the policy holder and ends on his or her death. The nominee may withdraw the whole sum of life insurance as a lump sum amount.

These are the two main options available for life insurance among seniors.

To better understand that life insurance for seniorswe need to explore the conditions on which the policies are given to the senior citizens.

How insurance policies work for senior citizens who have health problems?

The companies try to cover their risk in the maximum possible way by examining the health condition of the senior citizens. They check the pertaining ailments and the history of these diseases in their clients. The companies also examine chronic health problems such as diabetes, high blood pressure etc. They try to measure the intensity of these problems to assure the life expectancy of their clients.

The companies will also enquire about the addictions and other life style hazards of their clients such as smoking, drugs, overweight or obesity etc. The impact of these conditions may decide the health and well being of the senior citizens.

If any of these health issues is on serious terms then the clients can avail “graded” insurance cover. In this policy the nominee doesn’t get full death benefits if the policy holder dies in the initial 2-3 years. If your health is sound then you can avail any choicest option among the offers by the insurance companies.

Tips on getting affordable life insurance:

• Be healthy and fit: The cost and terms of your insurance will largely depend on your health. Therefore try to keep yourself fit and healthy at the time of buying life insurance cover. You can take up some normal work-out or wellness regime if you plan to buy the insurance in a period of 2-3 months.

• Earlier you buy, cheaper is the policy: This is a golden rule in buying any insurance product. If you plan to buy any insurance cover, make up your mind sooner. The younger you are more life expectancy you have! The insurance companies want to ascertain minimum risk of life expectancy. For people who have crossed the age of 60-80 years, it is advised that they take an early decision on purchasing life insurance policy.

• Compare the quotes: Internet is the best medium to seek all information pertaining to various life insurance policies available for seniors over 60-65 years. You can seek complete knowledge of elderly life insurance,what are the rates of interests and how do they vary with age, what kind of policy you want to buy and what are the benefits associated with each one of them. Different companies have different offers. You can compare the quotes online and assess them on the parameters such as cost, amount of premium to be paid, terms of pay back, rate of interest etc.

The requirements of senior citizens are different than the other people; therefore their policies too have different terms and specifications. One should carefully read all the instructions and terms & conditions before purchasing any policy.


Two Ways Driving Offences Can Wreck Your Finances, And What To Do About It

Two Ways Driving Offences Can Wreck Your Finances, And What To Do About It

None of us want to be convicted of a driving offence, least of all a DUI. Driving offences come with many auxiliary costs that can really screw us over, long term. And they reflect poorly on us as people if we are to blame. For these reasons, DWIs and DUIs are way more costly that the initial outlay for fines. They keep costing you money for years down the road. Scrubbing them from your record is difficult. Here are some ways driving offences can wreck your finances and what to do about it.

Life Insurance Becomes More Costly

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One of the unforeseen consequences of a DUI is the effect it has on your life insurance. Life insurance companies often want more money, given that you’re putting yourself at higher risk. And they can continue to ask for more money for ten years following a DUI conviction.

From the insurance company’s perspective, this isn’t about punishment. This is about charging a price that reflects the risk of a DUI driver. According to the Highway Administration, drivers with DUIs are about 40 percent more likely to die in a crash. And it’s not that DUI drivers just offend once. About 30 percent of them continue to drink and drive, even after getting a DUI. Thus, it makes sense that they would be involved in more accidents. And it makes sense that life insurance companies would want to charge more money. So what can you do about it?

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First off, you can hire a one-of-a-kind DWI lawyer to reduce the severity of the allegations. If you’ve been caught drinking and driving, it’s not guaranteed you’ll be found guilty. There are all sorts of legal ways that you can make your case and reduce sanctions. Second, you can have a breathalyser fitted to your car ignition. The car will only run without an alarm sounding, so long as you’ve used the breathalyser to prove you’re under the limit.

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Car Insurance Goes Up

All car insurers care about is your risk category. They don’t care that you didn’t know it was a 30 limit when you got caught doing 40. All they care about is what that says about you as a driver from a statistical perspective. Insurers know that drivers who get caught speeding are more likely to have an accident. And so as soon as they find out you’ve been speeding, your insurance goes up. According to CarInsurance website, having a DUI can push your insurance up by between 30 and 300 percent. Ouch! Speeding tickets can put it up by more than a fifth.

So what can you do about this? Well, first off, see if there is a way to fight the charge. Given how much it’s likely to cost you over the long run, a legal route is a good option. The other thing you can do is focus on prevention. Get a car or an app that warns you when you go over the local speed limit. And, if possible, as the insurer if they’d lower your premium if you used a black box driving recorder.

 


Benefits of the No-Medical Exam Life Insurance

When you apply for an insurance policy, the life insurance company has to go through the process called underwriting. In this process, a trained professional will review your personal, family and medical history. This review will determine if you will qualify for their life insurance. This will also determine how low will be the insurance rate that you need to pay. They’ll run physical examination to determine your health status and see if you have any factors that may lead to health problems in the future.

What if you don’t pass the exam? Does it mean you cannot quality for the insurance? The good news is that there are life insurance companies that offer products without the physical underwriting steps. These products are also known as the no-exam life insurance, no physical exam life insurance and no medical life insurance. This type of life insurance has many benefits.

1.No Medical examination. Because there is no medical exam that applicants for traditional life insurance need to take, the policies are issued much quicker.

2.Instant approval for qualified applicants.In this type of life insurance, you can get the coverage in as quickly as 24 hours.

3.It’s much more convenient. This is the right option for you if you don’t want to go through the exam or if you are afraid of needles.

Get-Life-Insurance4.Shorter application. The policies are issued much quicker

Though some may think that this type of life insurance is for people who are unhealthy, that is simply not the case. There are some people who are taking advantage of this and lie in their application to hide their health problems but this is not advisable. Aside from the moral issues, there are also legal issues involved in committing such fraud that applicants should consider. Another important thing they should be aware of is that the life insurance company will still dig through the applicant’s medical history prior to the approval of the policy. They will verify the accuracy of the applicant’s answer on their application.

Life insurance companies in most countries have the right to investigate on the accuracy of the applications if the applicant die within two years after buying the policy, Keep in mind that the moment you sign the policy, you are giving the life insurance company the right to investigate on all your records whether medical records, employment records and even government records.

No medical life insurance is very popular nowadays as insurance companies are trying to look for ways to differentiate themselves inthe market. Though this may be the best option for people who don’t want to go through the exam, there are also cons in this type of life insurance. The premium that comes with this policy is typically much higher as compared to a standard insurance policy. The reason to this is mainly because the company is taking a bit of risk in their no-exam life insurance.


Life Changes That You Need to Update Your Life Insurance for

Whether you purchased life insurance in your youth or well after getting married and having children, there are certain life changes that can happen that will require you to make adjustments to your policy. It’s recommended that you make the needed changes to either provide more coverage for new assets and people in your life or to downgrade to save money. Depending on your life situation, you will need to do either or. Read on to see what life changes require you to make updates to your life insurance.

Life_insuranceYou Take On New Responsibilities

You’ve likely heard advice given to young people that it’s best to purchase life insurance now. Waiting until you develop an illness or age will only hike up your rates. A lot of young folks listen to this advice and purchase a policy that will cover their funeral expenses only. However, as time goes on, you may take on new responsibilities like co-signing a business or personal loan or caring for an elderly or sick parent. With these types of obligations weighing on your shoulders, it’s a good idea to adjust your life insurance so that it will cover them.

You Get Married or Divorced

When you get married and have children, this doesn’t constitute a need for life insurance, especially if both spouses are working and equally contributing to expenses. In this case, the death of one wouldn’t be too catastrophic for the other. However, the situation changes when the two of you purchase your first home together. You’ll need to purchase or upgrade your life insurance policy to cover the newfound expenses. This is especially so if one works and the other doesn’t. In the event of a divorce, life insurance can be changed to reflect the obligations you now have.

Having Children

Even if one spouse stays home and the other works, it’s recommended that both parents get a life insurance policy. If the breadwinner were to pass away, the stay-at-home parent would have to endure the expenses. Then, if the stay-at-home parent were to pass away, the breadwinning parent would have to endure childcare costs. It’s important to factor these in when purchasing or making changes to your life insurance policy.

There are many different changes that can happen in your life that can require you to upgrade or downgrade your life insurance policy. It’s important that you don’t “set it and forget it” once you buy a policy. Continuously make changes as needed, so that if you were to pass away, your loved ones won’t be financially devastated.


Advice for University Tuition Fees

As many of us are aware, the cost of attaining a higher education has dramatically risen in recent years. As a result, there are countless students who are finding it increasingly difficult to make ends meet. Short of a full academic scholarship, tuition fees need to be paid in a timely fashion. There are several options which can help to mitigate the economic strain that such costs can incur. So, it is prudent if we take a look at how families can remain somewhat liquid while also being able to address the fees which will inevitably arise.

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Planning Ahead

It is common for parents to cover a significant amount of any enrolment fees. One of the best ways to accomplish this is through the use of a life insurance policy that will accrue wealth over time. As many of these plans will offer a broad spectrum of investments, this type of managed wealth can then be tapped into when a child reaches a certain age. Also, let us not forget that many programmes are tax deferred. So, there is an even greater possibility to earn a substantial amount of money over time. As each policy will differ, it is wise to shop around to encounter the most amenable options.

Government Aid

The second main avenue of support is through the government. Financial aid plans can come in quite handy and the interest rates can be more agreeable than a long-term institutional loan. Of course, it is always important to repay these loans within a timely fashion to avoid penalties and damage to one’s credit.

Another option is to apply for government grants. These are some of the most useful vehicles, for they will not need to be repaid once the money is disbursed. So, there is literally no financial risk involved with grants. The best way to determine which one is relevant is to perform an online search.

Family and Friends

While this option may appear to be unappealing to some, let us never forget that many students will have at least part of their tuition covered by a family member. The primary benefit here is that no money will be owed to the state or to an institution. However, it is always wise to carefully consider this alternative; relationship issues can be an unfortunate result.

Work-Study Programmes

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We should also recognize that the student can apply for employment once he or she is attending a university. Although this money may not directly go towards the repayment of fees, a certain amount can be set aside for future use. This is also a wise choice due to the fact that there is no complete guarantee that a job will automatically await the student upon graduation. In simpler terms, planning ahead can avoid future hardship.

These are some of the best ways to successfully negotiate challenging tuition fees. By looking ahead and through careful planning, a potentially frustrating situation can be avoided.


Why You Should Not Put Off Life Insurance

life_insuranceWhen is the best time to get life insurance? The answer: yesterday. Seriously, you shouldn’t wait until you’re pushing 40 to apply for insurance, because when it comes to getting insured, younger is better. Why? The older you are, the higher the rate that will be assigned to you, which means you will end up paying more. Compare life insurance deals using Compare the Market to check your options.

The peak of your youth is the best time to compare life insurance providers, because insurance companies look favourably upon those who are young and at the best of health. It may sound brutal, but that’s reality: the older you are, the closer you are to the end of your lifespan.

Apart from lower insurance rates, here are the benefits of getting life insurance ASAP:

  • Income protection – you can rely on your life insurance to have your back in case you lose your job unexpectedly and are having a difficult time getting a new one. For couples, life insurance can be used to augment the family income should one of the spouses die, so that the family will be able to maintain the same standard of living as before.
  • Mortgage protection – life insurance can be used as mortgage protection; with this, your family or those living under the same roof will be able to continue living in the same house even after your death. If you have an outstanding mortgage balance, a term life insurance can be used to pay it off.
  • College education – you may think that your children are still too young (or not even conceived yet) for you to be worrying about their life in university, but with the high cost of higher education today (and definitely in the future), you’ll do well to start investing now.
  • Easing the burden of final expenses – death is a burden, and more so if there are expenses to pay, such as medical bills, funeral expenses, and burial costs. It may sound morbid, but planning for these things can alleviate the grief and financial burden of your loved ones when your time comes.
  • Long-term investment – life insurance can also be considered as an investment; if you put in more cash, the extra amount will grow as a tax-deferred account. The money earned from the compound effect can be withdrawn, borrowed out, or used for other insurance purposes, such as paying premiums.

There are different kinds of life insurance policies – covered off in this article by CNN Money – for different needs; what may be enough for you may not be the same for others. There’s an insurance policy for everyone; policies are formed depending on an individual’s situation. Even those who have just started getting a regular wage will be able to afford a simple term insurance.

Think about this: the earlier you take out a life insurance policy, the sooner you’ll be able to secure your family’s finances. Let’s add a little dark humour to this and say that getting life insurance can be your way of telling your family you love them from the grave.

Take your time to research, shop around, and talk to financial planners for advice, but definitely don’t put off getting life insurance any more than you have to. Remember, the earlier you apply for insurance, the easier it will be for you and your loved ones in the long run. It pays to be prepared for life’s emergencies, as detailed in this guidance piece by the Australian Securities & Investments Commission.


Financially Safe: 6 Ways to Protect Your Assets in Washington

As a resident of the state of Washington, have you considered what you should do to protect your assets? Assets can be seized in the case of divorce, auto accidents, vicarious liability, debt, medical bills, or foreclosure. Here are some of the top ways to protect what you have from creditors.

Put Your Money in an Irrevocable Trust

If your money is an in an irrevocable trust, meaning one that you don’t have control over and can’t revoke, then your money won’t be considered yours any longer and even if you have debts or are sued, no one will be able to get to the money in order to pay off those debts. By doing this, family members will be able to draw an income from the trust.

Just remember that, since Washington is a community property state, anything your spouse owns, you own, so those who benefit from the trust may need to be distanced from you, such as a sibling or child. Businesses looking to protect assets should look into business entities, which are the equivalent of trusts for businesses.

Buy Insurance

You may want insurance if your job opens you up to the possibility of a lawsuit. Professionals that are more likely to be sued include financial advisors, doctor and real estate agents. By having insurance, such as malpractice insurance for doctors, even if you are sued, the insurance will cover most if not all of the damages.

Outside of professional lawsuits, you’ll want insurance that includes homeowner’s insurance, auto insurance and commercial liability insurance. If you truly want to be careful, consider an umbrella insurance plan that covers what your other insurance policies don’t.

images (1)Have a Retirement Fund

Federal law protects assets found within retirement plans up to $1 million, and Washington protects almost everything that is found in an IRA from creditors, including traditional and Roth IRAs. This makes Washington state a great place to retire.

By moving cash that you don’t need immediately (at least not until age 59.5) to a retirement fund, you’ll be able to protect these assets. Just remember that if you decide to withdraw any of this money before you’ve reached age 59.5, there could be penalties.

Life Insurance Policies

In Washington, residents are able to have an unlimited amount of cash value in life insurance policies, which cannot be reached by creditors. As long as you’re okay with not having the money available to you in this life, which is especially good if you want your children and grandchildren to enjoy it after you’re gone, you can protect that money by using it for life insurance.

Give the Money Away

By giving the money to someone else, it is no longer your property and cannot be seized by creditors. It’s possible to give away up to $13,000 to another person without he or she being liable to pay a gift tax. You should be aware of Washington’s Fraudulent Transfer Act, however, which prohibits giving gifts in order to keep assets out of reach of creditors.

There are certain rules that determine if this is the case, including whether your intent was to avoid paying a creditor, if you pay more for something than it’s worth, or if you retained possession or control of the item.

Place Assets in an LLC

If you place assets in an LLC, you’ll have some protection from creditors accessing those assets to pay debts. This means that only the interest controlled by the LLC’s member that has debt can have it collected by creditors. Unfortunately, there’s less protection from this method within Washington state than by most LLCs formed in other states. If you want help understanding what protection can be provided, you can get the up-to-date Fisher Investment’s address and directions and get the help of one of their financial advisors, located in Camas, Washington.

If you’re worried about protecting your assets, don’t hesitate to get help. With the right guidance, you can make sure you and your family have a bright future without worry of mounting debt.


Top Myths About Life Insurance

life insurance mythsLife insurance is quite complex as compared to other insurance policies. This policy has numerous elements that require carefully deliberation to be able to choose the right type and coverage duration. However, most people can handle the complexities of life insurance as opposed to deciding why they need the coverage and how much. Here is a brief explanation of popular myths associated with life insurance policies and the twisted reality.

The life insurance policy you have at work is enough

If you are single and living a modest life then the employer paid coverage might be sufficient. However, if you are a family person or you need coverage to cater for your estate taxes after your death then extra coverage is very necessary in case the term policy paid for by your employer fails to meet all your needs. In addition, if you are a real estate owner, you really need builders insurance.

Life insurance cover needs to be double your annual income

The amount of coverage an individual requires is based on his or her current situation. This is dependent on many other factors. Apart from covering your medical expenses and funeral bills, outstanding debts such as mortgages and your family well being must be considered. To establish the real amount of coverage that you need, a cash flow evaluation must be undertaken. Gone are the days when a person’s income formed the basis for computing life insurance.

If you don’t have dependents, insurance coverage is not necessary

Even if you are single you need insurance to cater for your medical bills, personal debts and funeral expenses. If you are not insured, you might leave behind a legacy of accumulated debts to your executor or extended family. Having a life insurance is an ideal way for modest single people to leave a good legacy to charities or another worthy cause.

The cost of premiums is normally deductible

The cost of life policy is not deductible except when the policyholder owns a business and uses the cover as asset protection. Under such circumstances the premiums must be deductible.

Life insurance policy is only necessary for breadwinners

This is totally wrong. It is very costly to replace services previously provided by departed breadwinners. Therefore, it is sensible to insure against the loss of homemakers particularly daycare and cleaning costs.

Investing is much better than getting life coverage

Life coverage is very important regardless of the assets you posses. Depending entirely on the investment you have in your primary years is very risk particularly when you have dependents. In case you die without covering your family, they will hardly survive after your assets are depleted. Investing is not bad, but purchasing life insurance is also as important. On the other hand, you can get builders insurance when construction of your estate is underway.

It is better to buy term life policy

This is not always necessary. There is a big difference between permanent and term life cover. The term life policy might be very expensive in the coming years. Consequently, for those who want to be covered in their demise permanent coverage is the best option.

These are just but a few prevalent misconceptions relating to life insurance. The most important aspect to note is that you should budget for life insurance policy to pay off your debts and expenses after your demise. You can also consult your financial advisor or insurance provider for further clarification.

Kara is a passionate blogger and works as a provider of construction insurance policies.

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Today’s 10 Biggest Life Insurance Myths

Life Insurance MythsCertain key elements of life insurance should be considered carefully in order to choose the right type and amount of coverage. However, the technical aspects are often less difficult to deal with for most people than trying to determine whether they need coverage and how much is required. The following are 10 of the most common myths surrounding life insurance:

Myth 1: You do not require coverage if you are single and do not have dependents
It is important for single people to consider life insurance to cover the cost of their personal debts, medical bills or funeral bills. Uninsured individuals may leave unpaid expenses that their loved ones or executors would be forced to deal with.

Myth 2: Life insurance coverage should be twice your annual salary
Your life insurance coverage is largely dependent on your specific situation. As such, you should take into account factors such as medical and funeral bills, mortgage expenses and your family’s needs. A cash flow analysis can also be very helpful in determining how much insurance you need.

Myth 3: Term life insurance through your employer is enough
While term coverage provided by your employer may be sufficient if you are single and of modest means, this may not always be the case. You may require additional coverage if you have a spouse or dependents or if your estate taxes will need to be paid off upon your death.

Myth 4: Life insurance premiums are tax-deductible
This is not always true since the cost of personal life insurance is only deductible if you are self-employed and the coverage is used for asset protection purposes.

Myth 5: Everyone must have life insurance
While most people require life insurance, those with sizable assets and no debts may not need it. In addition, life insurance can be optional if your medical and funeral costs are already covered.

Myth 6: The best approach is to buy term coverage and invest the difference
Although term life insurance is often cheaper then permanent life insurance, the cost of term life coverage increases with time. On the other hand, the premiums paid for permanent coverage often go on for many more years. It is also important to consider the risk of becoming un-insurable, which makes permanent coverage preferable.

Myth 7: A variable universal life policy is preferable to a regular universal life policy
Universal policies often pay competitive interest rates, with variable policies containing fees relating to the insurance and the security elements of the policy. This means that you may get lower cash value than an individual with a regular policy.

Myth 8: You do not need life insurance if you are not a breadwinner
Replacing the services offered by a deceased homemaker could be higher than you imagine, which is why it may be important to insure against the loss of such an individual.

Myth 9: You should include the return-of-premium rider to your policy

Different return-of-premium riders are available for policies offering this feature, but it may not be cost-effective. Your decision should depend on your investment objective and risk tolerance.

Myth 10: You are better off investing your money than buying life insurance

There may be no way to provide for your dependents if you die without coverage and your assets become depleted. As such, you may need some form of life coverage until the value of your assets is greater than that of your debts.

Charles is a passionate blogger and writes about life insurance topics.


Protect Your Business Assets with Life Insurance

As a young business person, it is likely that you have had to work harder than most people to set up your business.

With this in mind, it would make sense to not let this hard work go to waste in the event of your untimely death or critical illness.

Here are a couple of business-related insurance policies available from the likes of lifeinsurance.org.uk that you might want to consider purchasing to provide financial protection to your business partners or yourself in the event of theirs:

Business life insurance

Even as a responsible young person, it is unlikely that you have considered what will happen to your business partners in the event of your untimely death.

Protect Your BusinessWould the beneficiaries need to sell their inheritance in order to pay death duties and taxes? Would there still be a business loan to pay off? Would the business have to hire someone to your job in the event of your unfortunate absence?

Business life insurance is a great way of answering these questions before they are even asked – should the absolute worst occur, your business associates or partners will have fewer financial problems and will be able to keep the business afloat.

It is highly advisable that after to obtain your key life insurance quotes you write you obtain your business life insurance as a policy holder rather the family of those being insured. That way those left running the business upon your demise will be able to use the funds as they wish.

Key man insurance/key man life insurance

Key man life insurance is very similar to normal individual life insurance except that upon the death of the policy holder (you), the recipient will actually be your business rather than your family.

Those left running your business will then be able to source, employ and pay a replacement, to buy or sell shares or to provide extra income for your family.

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