Whole Life Insurance

Whole life insurance provides the happy solution to the delicate matter of un unhappy death. In sickness and in health, we care and provide for our families. And at the end of that time, a whole life insurance policy can help you to continue to provide for them after you’re gone.

But whole life provides for your family in a very unique way…because with whole life, your premium payments become more than just a payment. They accrue and become a cash value account. And with this you can provide for yourself and your family.

How Do Whole Life Insurance Policies Work

Whole life insurance is a permanent life insurance…meaning it lasts your entire life. In most cases, the premium amount does not change, and the death benefits stay the same. Even if you have serious health problems. While it costs more than term life insurance, it’s still the most popular kind of individual life insurance in America today.

When you sign for a whole life insurance policy, you agree upon the premium payment, and how much of that payment will contribute to the cash value of the policy. As you get older, the premiums stay the same or increase according to what you agreed regardless of your age or health conditions. The cash value of a whole life insurance policy continues to grow. And all this time, your death benefit (the amount they’ll pay your beneficiary at the time of your demise) stays the same.

What Can I do with the Cash Values of a Whole Life Insurance Policy

The cash value of a whole life insurance policy is there for as long as the policy is in effect. You can withdraw the money and use it for anything. But withdrawing the cash decreases the death benefit.

The best way to use the cash value is to borrow against it. You can use this money for anything from paying off other loans to education funds. Borrowing the money also allows you to continue deferring taxes on the cash value (it’s taxable when you withdraw it.)

How Long Do I Pay the Premiums on a Whole Life Insurance Policy

On most policies, you continue to pay the premiums on a whole life insurance policy for as long as you live. Companies also offer the option to pay a lump sum in the beginning (creating an immediate cash value to the policy) and then make smaller premium payments throughout your life. You can also choose to pay a larger lump sum, without paying any premiums at all. Whole life insurance with modified premiums is a policy where the premiums incrementally increase as you grow older.

With any whole life insurance policy, everything is clearly defined when you purchase the policy. This includes the premium amounts, death benefits, and the amount of premium that contributes to the cash value.

Whole life insurance is about setting and meeting financial goals. When people depend on your financial decisions, whole life makes sense.

Talk to your Insurance Agent to ensure Whole Life Insurance is right for you!

More Whole Life Insurance Articles:

Whole Life Insurance is still a Preferred Choice

For a long time in America, whole life insurance was what most people bought. Lately, insurance companies have been offering other insurance at lower rates, but in most cases, whole life insurance is still the most beneficial of all plans.

Whole Life Insurance Explanation

A whole life insurance explanation should be required reading for anyone about to purchase life insurance. Whole life, in my humble opinion, has in recent years got a bad rap. People tend to buy term life insurance because it is cheaper...

By: www.compuquotes.com

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Why Businesses Benefit From an Affordable Term Life Insurance Rate

If you are seeking the most affordable term life insurance rate, you have come to the right place. With access to hundreds of insurance companies in the United States, Spectrum Direct brings you real-time life insurance quote information. Rest assured that in the event of your death, with life insurance, your survivors will be taken care of financially.

In addition to the many reasons why consumers take out life insurance policies, business partners also benefit from them. If you are a partner in a business, you can get an affordable term life insurance rate and policy to use to buy out your partner's estate in the event of his or her death. It is also beneficial to insure valuable employees, such as CEOs, whose deaths would cause a financial hazard to the company.

Another example of a business use for an affordable term life insurance rate and policy would be a person who borrows money for the business. In the event of his or her death, a policy would guarantee the lender that the loan would be paid back. It would also keep the person's business partners out of jeopardy if they had no means to take over the loan payments.

If you truly care about the people you could leave behind, a life insurance policy is in order. No matter what your income level, there is a policy that can replace your income and provide benefits to your heirs in the event of your death. Get your affordable term life insurance rate or instant life insurance quote now!

By : term-life-insurance.spectrumdirect.com

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Why Level Term Life Insurance is Often Less Expensive Than Other Types of Insurance

Level term life insurance gives you a fixed premium rate for a specific number of years. Usually, the term for level life insurance is 10 or 20 years, and the death benefit does not change over time. Its advantage is that you can lock in on a rate for the entire term of the policy.

One of the reasons why level term life insurance tends to be less expensive than other types is why all term insurance costs less: the insurance company only has to pay the death benefits if you pass away during the term of the policy. For as little as a few dollars a week, you won't have to worry about your premiums rising during that term, and you'll have the peace of mind knowing that your family is protected.

Since term insurance policies are taken over a fixed period of time, you can enjoy easy budgeting for the duration of your policy. You won't have to worry about your payments rising with level term life insurance, and your death benefit will remain fixed throughout the term of the policy. So you will know exactly what your payments will be for how long you will make them. You'll also know exactly what the lump sum payout will be for your beneficiaries, should you pass away during the insurance term.

Although level term life insurance is initially less expensive than permanent, or whole, life insurance, level life insurance has a downside. As you get older, your premiums will increase when you renew your policy. So though the premiums will be fixed during the term of the policy, when you go to renew it, they will go up, and you can again lock in on the new rate for the next term.

Level term life insurance is great for those on a budget. If you need more coverage or you want investment options, a whole life insurance policy could be in your best interest. Spectrum Direct offers many different types of life insurance policies to meet the needs of our customers. Contact us today for advice, or get a free rate quote for life insurance.

By : term-life-insurance.spectrumdirect.com

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Travel Insurance - Things You Need to Know About

Travel insurance is a type of insurance that gives coverage to those who travel to foreign countries on holidays or some business travel. This kind of policy protects you from losses while you are travelling. If you lose luggage or some personal possessions and money is stolen or lost, travel insurance will cover these and give you complete peace of mind while travelling.

Many people choose this kind of insurance, but not all of them know really what it is and how to benefit from it. If you know everything about it and what is included in, you will be able to make the most of your protection.

Main categories of the risks that are covered by travel insurance are:

Trip cancellation or delay - Cancellation of a trip is covered by your chosen insurance company if a trip is cancelled for illness, death, bad weather conditions or other specific unforeseen circumstances. When trip is delayed company reimburses you for additional accommodations or travel expenses.

Loss, delay or theft of baggage or some personal possessions and money - This will cover you for any items and possessions lost, delayed or theft while travelling. This kind of insurance is very comfortable to use when your destination place is too far and there is no any charter flight. Lots of luggage is lost in international airports and the flight operator reimburses luggage lost by its weight, not value. In this case travel insurance is perfect.

Medical expenses or medical evacuation and repatriation - It covers medical expenses incurred while travelling. Medical evacuation is just what it says; if you need to be transported to an appropriate medical facility or to return home, emergency evacuation arranges this. Repatriation benefits cover the cost of returning a deceased traveller’s body back to the place of residence.

Accidental death or injury - Accidental death or injury provides cash payment for accidental death or injury while travelling.

Travel insurance benefits vary, each of the insurance companies offer different policies with different benefits and rules that should be followed if you want the company to cover your expenses. Those mentioned above are most common ones.

In conclusion, it can be said that travel insurance is really essential product across the globe. Your private health insurance will only cover your expenses in your own state or country, but not abroad. You will loose nothing with buying this kind of policy, but without the protection of your travel insurance, you will be very much out of pocket, as there can occur many financial losses. As a rule medical service is very expensive abroad and by purchasing insurance policy for very small amount of money, you can fully get relaxed.

So, if you are planning your trip out, get more information about travel insurance policy, find most reliable insurance company, find out what is provided by this company and just enjoy your travel with peace of mind.

Do not forget to set off on your trip with your travel insurance policy in your pocket.

By David Hunter

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Travel Insurance - The Umbrella of Safety and Security

The main idea behind travelling is to unwind oneself with the purity and freshness of exotic locations forgetting all the fret and fever of day-to-day life. For this it is necessary to be free from all kind of anxiety and leave the hassles of routine life into sweet oblivion. But it is always not easy to feel free from tension while you fly from one place to another solely depending on the smooth function a machine.

No sane person also can feel fully secure while carrying expensive luggage and luxurious gadgets with him. Then is there no way out to unleash oneself in a journey and take full delight of holidaying. Definitely there is a way out and that is travel insurance. You can give the responsibility of looking after you, your baggage or beloved ones to someone else if you go for insurance.

It is not the claim of a travel insurance that you and everything attached to you will be hundred per cent safe while travelling. In fact, there is no such agency or entity that can claim to have this capability. But, of course, insurance can help recover the damages done to you during your travel. Meeting physical accidents, loosing luggage, cancellation of tour in the middle, and some such other damages are covered by insurance.

Travel insurance is like a small step that ends in big profits. It takes only handful of pounds to go for it. The amount it covers is really big. However, the coverage amount is directly proportionate to the amount one pays to the insurance company. In most of the cases, the paid amount is refunded with a good amount as bonus. In case of occurrence of any damage, the person receives an amount, fairly good enough to recover the loss. Moreover, the mental peace and sense of security it provides during the journey is also really worth the amount one pays.

By Darlene Kaitlin

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Travel Insurance - 10 Top Tips

Insurance is one of those areas that is generally unavoidable; you’ll need it in some form or another somewhere along the line. For the majority of us that just happens to be every day.

One area always in the spotlight one way or another is travel insurance. Yet many of us still aren’t sure if it’s something we really need and to this end, many of us travel without it every year. Here are 10 top tips to help you make the right decision.

1) It is a common myth that if you take the European health card (E111) with you when you travel, you will be covered for anything that goes wrong. This is not the case. The card is just there to be given to a hospital, etc, in an emergency so they will treat you (this is still a must have for this reason). You will still be billed for any treatment you receive in a private health care system. For this reason holiday insurance can be invaluable.

2) When applying for your insurance policy, you must inform the company of any/all medical conditions you suffer from, no matter how small or insignificant they seem. This could prove to be something that voids your policy if you do not. You will find this most probably increases your premium, but it is worth it to keep your policy valid.

3) When looking for cheap travel insurance, be careful to check you are not losing out on any coverage that you will need, such as theft, cancellation of holiday/flights. You may find that some polices really are too good to be true and cover you for the bare minimum.

4) If you are planning to go on a trip that may include activities that could be viewed to be dangerous by the insurance company, you may find you will not be covered under most policies. You will need to find a policy aimed at covering for such activities, i.e. a winter ski policy or adventure holiday insurance. If you are thinking of backpacking, you would similarly be best to look for a backpacker’s policy.

5) The majority of companies offer single, multi trip, family and annual policies. If you are going to travel just once in a year as a single person or a couple, it will work out cheaper to apply for a single trip travel insurance policy. If however you will be travelling 2 or more times, a multi trip policy will save you money. The same applies to a family group, finding separate policies will be expensive, opt for a family policy and you will save money and most probably receive cover for children (under 18) free.

6) Always check excesses on the policy you choose, most policies are peppered with them and finding a policy with a better or no excess in an area you think relevant is prudent.

7) An important thing to remember in regards to item/theft insurance is; if you leave valuables unattended/ out of sight, you will not be protected.

8) An important “don’t” is not to let your holiday provider package the holiday insurance for you as it will work out much more expensive in the long run. In less than a couple of minutes you can find a much cheaper quote on a comparison site. Research from Alliance and Leicester has shown UK holiday makers overspend by £1.3 billion on travel insurance each year, for this very reason.

9) It is important to remember that the insurance company will not pay out for an accident caused whilst under the influence of alcohol or drugs.

10) Finally, in research done by the internet company Moneysupermarket.com it was found that you should ensure you have the following amounts of cover as minimum: Medical expenses £2m, personal liability £1m, cancellation £3,000, baggage £1,500, cash £250, a 24 hour emergency line and cover for legal costs and finally financial ombudsman service membership in case you need to complain.

by Chris Rowlands

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Long Term Care Insurance: Why You Need It, Why People Avoid It And A Simple Way Out

If you've never had the "privilege" of nursing the sick elderly, you may not understand the importance of long term care insurance. If you've never been close to someone who needed custodial care for a protracted period, you may make light of this. But you shouldn't treat this lightly.

You need long term care insurance...

1) People are living longer thanks to medical science. This means that a greater number of people will live to be so old they'll need some form of custodial care.

2) Sickness that makes it compulsory that you get custodial care may strike (Unless you're immune to sickness like me).

3) Providing long term care without insurance can really eat away your entire life's savings.

There are several reasons why people choose not to buy long term care insurance. Top among these is a lack of understanding of the risk involved. However, for most who would have chosen to get a long term care insurance policy, the biggest challenge is what it would cost them. That is, the extra cost.

If you belong to this group here's what I recommend (I'm assuming you already have auto and home insurance)...

Take out time to visit at least five insurance quotes sites. Get and compare quotes for both your auto and home policies (and other policies if you have others). Also get quotes for long term care insurance from all these sites.

Compare the quotes you get for the best price/value.

This process will take you around 3 minutes per site per insurance policy. But, I'm glad to inform you that if you do this well, you'll most likely get enough savings to totally pay for your long term care insurance without changing your insurance budget. Remember, getting insurance quotes is free. And, they are no-obligation quotes. Start now. No, don't put it off till tomorrow. Tomorrow never comes.

Author: Chimezirim Odimba

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The Right Time to Buy Long-Term Care Insurance

The older you get, the more likely your chances are of requiring some type of long-term care assistance. And because you know that the cost of even just a few years of long-term care can easily wipe out your life savings, you're thinking about buying long-term care insurance (LTCI).

For the most part, deciding when to purchase LTCI will depend on your age and your ability to pay the premiums. Since premiums are based on your age at the time you purchase the policy, the younger you are when you purchase LTCI, the less expensive your premiums will be. However, there's a tradeoff. If you purchase LTCI early, you may be paying premiums over a long time period.

So, just when is the right time to buy an LTCI policy? Although insurance companies will write an LTCI policy for anyone between the ages of 40 and 84, most people purchase LTCI when they reach their 50s or 60s. That way, they won't end up paying significantly higher premiums because they waited too long to purchase a policy.

Should you purchase an LTCI policy?

Deciding whether you should purchase an LTCI policy depends on your individual circumstances. However, you may want to consider purchasing an LTCI policy if some of the following criteria apply:

  • You are between the ages of 40 and 84

  • You have significant savings and other assets that you would like to protect

  • You are in good health and thus insurable

  • You can afford to pay the premiums now and will be able to afford to pay the premiums in the future

LTCI policy features

The following is a list of common LTCI policy features. Some are part of the standard policy, while others are available as options and riders at an additional cost.

  • Coverage for skilled, intermediate, and custodial care

  • A choice of where care is received (e.g., private home setting, adult day-care setting, assisted-living facility, nursing home)

  • Trigger of benefits when activities of daily living cannot be performed independently (e.g. bathing, toileting, eating)

  • Guaranteed renewable provision (the policy cannot be canceled)

Inflation protection

Waiver of premium provision (premium payments are stopped while the beneficiary receives benefits)

"Free look" provision

Respite care coverage

Grace period for late payment

Third-party notification of missed premiums

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Long Term Care and Long Term Care Insurance? Your Chances and Your Costs

Clearly, you don't want to dwell on an image of you or your spouse in a wheel chair or nursing home, but if you don't plan ahead now for such eventualities, you could end up with a crippling financial burden that can strip a family of it's entire nest egg.

Funding for eventual long term care must be planned for far in advance, and long term care insurance seems to be the tool of choice. The alternatives really suck by comparison, so it's time to get going to put your plan in place while you still can.

Fact is, there is nearly a 50% chance that during retirement, due to medical conditions or extended longevity, a person will eventually end up requiring 24-hour skilled nursing care in a long term care facility.

Another astounding fact is that more than 40% of nursing home residents are under age 65. In truth, at age 57, due to advanced Multiple Sclerosis, I myself would be in a care home if my wife would let me out of her sight.

And now let's look at the average length of facility care plus the projected costs for that care…

Long Term Care - It's Leading Causes & Average Lengths of Nursing Home Stays ( from Financial Planning News ):

Alzheimer's: 96 months
Diabetes: 48 months
Pulmonary: 36 months
Cancer: 36 months
Stroke: 21 months
Cardiac:16 months

What happens if you don't have long term care insurance, but you do need this long term care?

Well, at room rates of $300.00 per day, if care costs inflate at least 5% annually, then 10 years from now, the average, Alzheimer's, long term care stay in a private room could cost a family over $1,400,000.00+

Do you want your family to pay THAT out of savings? I don't think so, and long term care insurance is clearly the only sensible answer, but is long term care insurance too expensive?

Long term care insurance can cost from under $100/mo. to over $1000/month, so sure, at first insurance can seem expensive, yet consider this:

At 5% annual compounded inflation, in 10 years, actual real-life care costs could mount to well over anything you might ever put into long term care insurance. Just do the math.

The annual long term care insurance premium investment is often less than the actual cost of just ONE MONTH in a care situation.

NOTE: Recent industry articles indicate that long term care insurance is such a valuable planning tool that financial advisors may face legal action if they neglect to at least recommend consideration of coverage. (Trusts & Estates Magazine)

Long term care insurance may make good financial sense for you and yours, and the early bird gets the worm, because the lowest long term care insurance prices are locked in at the younger ages and are designed to remain level thereafter.

In any case, each policy is designed to custom fit your circumstances, so you have to work with a trained long term care insurance specialist in order to create the optimal coverage plan. You'll want a multi-company broker who can compare companies and policies to find the best long term care insurance plan for your unique situation.

By: Clay Cotton

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Introduction to Long Term Care Insurance

There are many different forms of insurance available to the average person. Long term care insurance is designed to take in the cost of an aging society.

Of all of the various elements of the personal financial planning process, risk management and insurance is both the least enjoyable to consider and the most important to consider. There is nothing as certain as the uncertainty of life. No matter how much money you are earning or how wisely you are investing it, a sudden disaster can knock all of your careful plans over like a stack of blocks. Insurance is the most common method of managing these uncertainties and making sure that yourself and the people who depend on you are protecting as much as is possible.

The most common forms of Insurance are Life Insurance and Health Insurance. People feel they are fairly well protected with these against either illness or death. There is an area in between illness and death, however, that needs to be considered. This is the need for long term care. Long term care is usually defined as the need for assistance in performing the basic functions of life such as eating, dressing, mobility, etc. The problem is that most Health Insurance Policies will not provide coverage for long term care. The person is no longer suffering from a medical problem, but can no longer properly care for themselves without assistance.

In the United States, Medicaid will pay for this assisted living if the person has no funds or other means of paying. It is the person with assets who is in trouble. The cost of assisted living is high and can quickly eat away the savings and funds that were intended for other purposes. This is the basis for Long Term Care Insurance. It is a policy that is designed to provide the funds needed to pay for this assisted care so that your other assets can continue to do what you intended them to do.

Long Term Care Insurance Policies are generally sold by the same Companies that provide your Life Insurance Policies. Indeed, there are some Life Insurance Policies that have provisions for a certain portion of your death benefit to become available in the case that long term care becomes necessary. In other cases, the Long Term Care Insurance policy is a separate contract that has its own restrictions, exclusions, and benefits. The costs of the policies will vary depending on a number of factors. The age of the person purchasing the policy will be one of the most important considerations. It will normally involve a Medical examination also to determine the premium rate.

Your Insurance Agent can explain the benefits and the costs. It is important to understand what would be covered and what would be excluded in the same manner as evaluating a health insurance plan. It is also to remember that it is estimated that almost 40% of the people that require paid assisted living and long term care are between the ages of 18 and 65. Although many people think of long term care as a need of old age, this is not always the case.

By Barry Waxler

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How to Understand Health Standards for Long Term Care Insurance Enrollment

Long term care insurance conforms to the basic insurance mechanism, in that the individual risk of future peril is shared by a pool of people who currently are free from that peril.

The insurance pool is represented by the insurance company which sets eligibility standards for enrollment to ensure a hazard-free pool, so that actuaries can calculate reasonable, standardized premiums for pool members who meet the eligibility requirements and enroll in the risk pool. In this way, members transfer their individual risk of peril to the pool. The pool shares the risk for all members and covers those whom actually experience the future peril.

If you are thinking about applying for a long term care insurance policy, please be aware that certain pre-existing health conditions can make it impossible for some folks to enroll due to health reasons. If you have any health issues, this article can help you better understand long term care insurance health requirements.

Do not apply for long term care insurance if you CURRENTLY:

* Use a multi-pronged cane, crutches, oxygen, walker or wheelchair

* Require assistance with bathing, dressing, feeding, toileting, urinary or bowel continence, or transferring between bed or chair

* Use/need home health care, adult day care, assisted living or nursing home care

* Require assistance with grocery shopping, use of transportation, use of telephone or banking

( NOTE: These pre-existing health problems may make you uninsurable for buying a new long term care insurance policy. However, all the above health conditions WILL be covered if they occur AFTER you you have purchased your long term care insurance policy. )

In addition, do not apply for long term care insurance if you CURRENTLY have:

* AIDs or HIV infection
* Alzheimer's
* Amyotrophic Lateral Sclerosis (ALS)
* Cystic Fibrosis
* Dementia
* Hemophilia (other than Von Willebrand disease)
* Hepatitis C, Non-A, Non-B, or Autoimmune (Active)
* Kidney Failure
* Liver Cirrhosis
* Memory Loss
* Multiple Sclerosis
* Muscular Dystrophy
* Paralysis
* Parkinson's Disease
* Post-Polio Syndrome
* Schizophrenia
* Sickle Cell Anemia
* Systemic Lupus Erythematosus

Every long term care insurance company has their own health underwriting standards. Each company's health underwriting standards may vary by state, according to each state's laws.

Note: As you increase in age, so does your risk for health issues. Therefore, most long term care insurance companies will require medical records for people over 45, medical records and phone interview for people 50 and over, and medical records plus a face-to-face health interview for people over 70.

Be aware: If you think you can slip your health issues past long term care insurance underwriters, then think again. First, lying on your application is fraud. Second, it is the underwriter's job to be very thorough when looking through your medical records and assessing risk. Be honest with yourself and with the long term care insurance company you choose.

The upshot of all this is that folks must protect themselves while they are still in good health.

If you fall within acceptable guidelines, then "congratulations", as you can protect your assets and your family's lifestyle stability now, then cross your fingers and hope that you are not one of the nearly 45% of us who will need care at some point in our lives.

Article Source: http://www.ApprovedArticles.com

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Hot New Product - Long Term Care Annuities

In the next few minutes you will learn about a new insurance industry product that provides long term care insurance coverage if you ever need it, but requires no policy, premiums or health qualifications.

Why Seniors Don't Buy Long Term Care

1. In my experience, over half the people who shun long term care insurance do so because they feel they will never need it. It is difficult to visualize going to a nursing home. Statistically, half of these people will be right.

However, there are a number of scenarios where the person may need some kind of assistance but never see the front door of a nursing home. In fact, most people who need long term care can receive care without ever leaving their home.

When you stop and think about it, the decision not to buy long term care insurance is a decision to self insure. This can be costly and possibly devastating.

The average cost of a nursing home today is $80,000 per year and rising. At that rate, it doesn't take but a few years to grind through a modest estate. If both the husband and wife need nursing home care, the time to dissipate an estate is cut in half.

A person can spend 40 years in a career building a retirement nest egg. They spend another 40+ years conservatively managing their money while trying to keep up with inflation. If they need to go into a nursing home during the last five years of their life, it all could be gone quickly.

It doesn't have to be that way as you will soon see.

2. Many people think long term care insurance is too expensive. They may be right.If a person waits too long to apply, they may have sticker shock. The rates are based on age.However, long term care comes with a lot of bells and whistles. When you strip away some of the options that may be nice to have, but not essential, the premium is a lot lower.

If a person looks at a plan that covers home health care only, the premium is lower yet. This takes care of the 50% who never will need to go into a nursing home.

The only thing better is coverage without a premium, which I will get to in a minute.

3. Most people react to a problem only when the problem surfaces. If a person waits to apply for long term care insurance until they are experiencing health problems, any long term care insurance plan may be prohibitively expensive or altogether unavailable.

The Solution: The Long Term Care Insurance That is Not a Policy

The insurance industry is very competitive. This very competition engenders new thinking and creative policies. Enter "Long Term Care Annuities."

There are only a few companies offering this product and the structure differs from company to company. To give you a general overview of the concept and mechanics, I am going to describe the main aspects of one carrier's contract. Check with your financial planner for all the options.

The underlying base of an "LTC annuity" is an annuity. Nothing new here; annuities have been around for a hundred years. They are safe, the funds accrue at a competitive interest rate, and the account grows tax-deferred.

To form an LTC annuity, the insurance company has built in a "long term care option." It is not a rider. There is no premium. It is simply an option you elect if long term care is ever needed. Sweet.

To qualify, a person only needs to lose two of six ADLs (activities of daily living). ADLs are insurance companies' method of determining the qualification for levels of care. They are eating, bathing, dressing, toileting, transferring (walking) and continence.

The person doesn't have to be in a nursing home. They simply need to have demonstrated the inability to perform two of the six ADLs to qualify to put the long term care option in their annuity in action.

An Example

If a male, age 60, places $200,000 into an LTC annuity, assuming a conservative interest rate, the policy would grow to $300,000 in ten years. If the $300,000 were converted into a life income, the person would receive $2,200 per month for the balance of their life. An 8.8% return. Not too bad, considering it is guaranteed no matter what.

If this person needs long term care at age 70 by virtue of losing two of six ADLs and elected the long term care option, the life income would jump to $4,500 a month.


These new products, long term care annuities, provide the option to receive long term care benefits only if they are needed. There is no separate long term care insurance policy, no premiums and generally little or no underwriting.

Now there are no excuses. Those who feel they will never need long term care will simply never exercise their LTC option. Those who find long term care too expensive have an alternative with no premiums. Moreover, those who have health issues can obtain long term care benefits, as underwriting is simplified or non-existent.

By Robert Cavanaugh

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Congress Scrutinizes Long Term Care Insurance

Conseco and Penn Treaty Long Term Care insurance companies must be biting their nails to the quick, as the House Committee on Energy and Commerce breathe down their necks and the General Accountability Office closes in.

Conseco hired a great ad agency. I loved their long term care insurance commercials. They were so funny! Yet every time I watched them, I couldn't help but cringe. My concern was that people would buy a Conseco policy, then perhaps someday their rates would go up, or worse yet, their claims might get denied. Clay and I knew that, as far back as the 1990's, Conseco was selling relatively inexpensive policies to lots of unhealthy people. Now, approving "sickies" for long term care insurance seems compassionate, doesn't it? Of course it does. I sure wish companies would approve more, but that's not how insurance works. Companies with smart actuaries know that insurance can only work when there are more "low risk" policies sold, than there are "high risk" sold. That way, more money is coming in than going out. More premium payments, less benefit pay-outs. That's how the "pool" of money held by insurance companies stays strong.

When the high risk/low risk ratio is reversed, the money pool is in danger of drying up. That was the problem we saw, way back when. Clay never sold Conseco. He was advised not to by his mentor, but he did sell a few Penn Treaty policies to people who, due to health concerns, would not have been approved by other companies.

Penn Treaty had decent policies, yet Clay always told his clients that there was a good chance their premiums would go up in the future, due to Penn Treaty's high risk/low risk ratio and lower premium prices. Still, given the choice between having no LTC insurance at all and the possibility, no matter how great, of rate raises most people chose the insurance. Would Clay have made the same choice if he had the chance of being insured. You better believe it"¦ He would buy a Penn Treaty policy today if they would take him.

Even so, I think it's high time the long term care insurance industry got a good once over. Rate raising and refusing to pay-out, if only from a few companies, damages the entire industry, not to mention consumers' well being. If you diligently pay your premiums, year after year, and you have a legitimate claim, you should expect the LTCi carrier to pay-out, as per your contract. Paper shuffling and other foot dragging techniques being used by a few insurers are shameful.

Why has Congress waited so long to look into this situation? Was the Insurance lobby too strong for the last Congress? It may be political "low-hanging fruit" to rail against the Evil Insurance companies during these pre-election days, but I'm glad that Obama and Hillary have the moxy to do so. The states haven't been doing a great job regulating, so maybe this will get their tails in gear.

One last thing: 81 year old Mary Rose Derks has gotten a lot of press. She's been in a nursing home since 2002 and her long term care has cost her $70,000 or so. Articles and news shows site her case, claiming that Conseco has not paid her claim. I'd like to know where her LTCi agent has been all this time. Isn't he helping her, fighting for her?

It's easy to get alarmed. Yet we don't know what Mary's policy's contract wording was, so we don't know if Conseco is in the right or if Mary Rose Derks has a valid claim. There could be legal wording in the policy itself that allows Conseco to not accept her claim. Conseco might have found that Mary didn't disclose all of her health conditions when she applied, therefore, nullifying her contract. Or not. Maybe Conseco is simply trying to save a buck at the expense of a fragile, little old lady. We don't know. We only hear the plaintive cries of her family so eagerly repeated through the Media.

But I bet Conseco wishes they had spent less on advertising and more toward paying their claims now!

And let's remember: Long Term Care Insurance companies pay out Billions of dollars in claims. Most LTCi companies should be applauded for helping Americans during times of great stress and need.

By: Clay Cotton

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What are Life Insurance Ratings and How are They Used?

In order to determine the price you will pay for your life insurance, agents use what are know as life insurance ratings. There are two types of life insurance rating. One is flat rating and the other is called table rating. Underwriters use an industry standard underwriting manual to determine how to rate certain health conditions.

A flat rating, for example, might be used for a short period of time for somebody who has just undergone a medical procedure like surgery. On the other hand, somebody with a more chronic condition such as high blood pressure or diabetes might receive a table rating. Table life insurance rating is based on a percentage of the premium.

The life insurance rating you receive, as stated above, is determined according to industry standards. If you disagree with your life insurance rating, let your agent know. He or she might be able to have it changed. Yet you could have to have additional medical exams or questions to prove that you are eligible for a medical rating.

When you shop for a term insurance rate, quotes could vary from company to company. That's why at Spectrum Direct, we make things easy for our customers. We will do all of the legwork for you, gathering information from various life insurance companies to ensure you receive the best term life insurance rating and the lowest premiums according to your rating.

Your term insurance rate could vary according to your age, gender, and how much coverage you need, among other variables. Your term insurance rate can also be affected by your occupation, although term insurance is still the least expensive form of life insurance. We can also gather multiple quotes for you, to see what different amounts of coverage would cost. We have a very high term life insurance rating within the industry, so rely on our superior reputation for quality products and outstanding service. Visit our site today for a free instant quote.

By : term-life-insurance.spectrumdirect.com

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What Makes Elderly Life Insurance Different?

At some point in your life, you have probably seen ads for elderly life insurance. This is a type of life insurance that is guaranteed. There are no medical exams required and you cannot be denied for it, no matter what type of health you are in. What's the catch? You will probably pay very high premiums for this elderly life insurance. Guaranteed life insurance is also known as elderly term life insurance.

As you age, the probability that you will die soon increases. Unlike with a younger person, if you are past a certain age, insurance companies incur greater risk when insuring you. There is more of a chance that they will have to pay out death benefits if you take out a policy when you are older. As a result, your premiums will be higher than for a younger person.

Elderly term life insurance, or life insurance for elderly people, is just as good as life insurance for younger people. If you die, your family can use the money to pay for your funeral or to pay off the mortgage. When you are covered by elderly term life insurance, you no longer have to worry about how your family will replace your income when you are gone.

Elderly: Whole or Term?

Since term life insurance offers pure coverage--that is, insurance without an investment account--it is better suited for older people than whole life insurance. As an older person, you probably don't need whole life insurance. There is less time for you to invest money and watch it grow. Also, you probably don't need cash locked away in an insurance policy. As you live out your golden years, you most likely are already using your savings from when you were younger and planned your retirement. Therefore, term life insurance is usually a better choice at this stage in life.

Do not confuse elderly life insurance with quick issue life insurance. They are not the same thing. Elderly life insurance is guaranteed, and you will not have to answer any questions about your health. With quick issue life insurance, the application process is faster, but you will have to share your medical history and answer questions about your health. No matter what age you are, you will probably want life insurance for your family's security. If you are older, life insurance for elderly people is a good idea.

By : term-life-insurance.spectrumdirect.com

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Cheap Term Life Insurance: Finding a Variety of Affordable Insurance Products

Everyone can get cheap term life insurance, depending on how you define the word "cheap." What is affordable for one person might be expensive to somebody else. That said, with such a variety of affordable term life insurance products available through Spectrum Direct, you can afford life insurance coverage so your beneficiaries will be taken care of if you die.

With a little bit of shopping around, you will find that cheap term life insurance is very easy to get. At Spectrum Direct, we do the comparison shopping for you. Representing over 25 of the best insurance companies in the United States, we will give you a free quote on the policies that match your needs and budget. Whether you want cheap life insurance in the form of whole life insurance, or just an affordable term life insurance policy, we will deliver.

If you are the sole breadwinner in your family, or your income is significant enough that it would be missed if you were to pass away, life insurance is a smart purchase. Upon your death, your family can use the death benefits to pay for your funeral, pay off a mortgage, tuck away a nest egg for retirement, or put the kids through college. Or they can simply use the money to replace your income for a while or invest it and live off the dividends.

What is Whole Life Insurance?

Whole life insurance is generally not cheap life insurance, although if you are young and healthy your premiums will be lower. This type of insurance is also an investment. Over time, its value is likely to grow and you will have more money to put toward your premiums. Cheap term life insurance generally costs less, although it only provides death benefits in the event of your death. It has no cash value and you don't invest with it.

Since there are different types of life insurance products, most life insurance companies offer something for everyone. Whether you're just starting out with your family, you're middle-aged and need to pay for the children's college, or you are older and worried about funeral costs, you can get life insurance. The type of coverage and premium amounts will differ, but there is insurance for you no matter what.

If you are looking for cheap term life insurance or cheap permanent life insurance, visit Spectrum Direct online for your free quote. We will make it easy for you to purchase insurance online or to get educated so you can purchase the right policy for your beneficiaries. Quotes are free and there is no obligation.

By : term-life-insurance.spectrumdirect.com

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The Benefits of Obtaining a Cheap Term Life Insurance Quote

Term life insurance has some distinct advantages. It would benefit you to get a cheap term life insurance quote just to see how much it would cost you, because more often than not, the potential insurance benefits far outweigh the premiums. With a cheap term life insurance quote, you'll easily see that initial premiums for term life are usually lower than premiums for permanent, or whole, life insurance.

Another advantage to term life is that it provides good coverage for things your family would need to pay off after your demise, such as a mortgage or student loans. Term life insurance is affordable life insurance. However, there is no cash value and you cannot pay for it upfront. Also, your coverage is only good for a specific period of time, or term, after which your premiums will likely be much higher.

At Spectrum Direct, you can get a cheap term life insurance quote online instantly, and for free. Our insurance coverage calculator will help you determine how much coverage you need in order to protect your loved ones. Once you get an idea of how much you would like to buy, you can enter it into our website and get an online cheap term life insurance quote. Or, simply call us with any questions you might have.

If you feel that permanent life insurance would better suit your needs, we offer that as well. With permanent life insurance, you have guaranteed protection for life, as long as your premiums are paid. Also, you can build cash value with the policy and borrow against it, as well as have flexible premiums, depending on your needs. affordable life insurance is within reach with Spectrum Direct.

By : term-life-insurance.spectrumdirect.com

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Factors Insurance Companies Consider When Calculating Affordable Term Insurance

Most people don't think of estate taxes until it is too late. affordable term insurance will provide money to survivors exactly when they will incur estate and inheritance taxes--upon the death of the estate owner. This is only one compelling reason why you should choose to purchase term life insurance. It's not to protect you, but for the legacy of your loved ones.

When you get an affordable term life insurance quote from Spectrum Direct, you are getting a truly objective quote. We are always reviewing the most critical insurance company information so that we can bring you the lowest cost, highest quality and most exceptional service for your affordable term insurance. In fact, you can get a quote from us online right now. You will be surprised at how much value you can get from cheap term life insurance.

Some factors insurance companies consider when calculating an affordable term insurance rate are your date of birth, gender, current or prior tobacco use, height and weight, current health and health history, and the period of the affordable term life insurance and how much coverage you want. By filling in the answers to a few simple questions, you will be able to get an instant affordable term insurance quote from us online. At Spectrum Direct, our online quotes show the best insurance companies, their rates, and their ability to consistently pay claims.

Once you find a policy that best meets your needs and fits your budget, you can request an application and immediately begin purchasing cheap term life insurance. While you can do the majority of your research online, as many of our customers do, we are always here to answer any questions you might have. Our licensed insurance agents and friendly customer service representatives are standing by to help you select an affordable life insurance product.

By : term-life-insurance.spectrumdirect.com

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The Benefits of a Mortgage Life Insurance Plan

Monthly mortgage payments take a big chunk out of homeowners' incomes. The sudden loss of your life or your spouse's can leave your family unable to pay the mortgage every month. In order to protect your survivors (or yourself in the event of your spouse's death), you should consider a mortgage life insurance policy.

Most Americans have a dream of owning a home. If such a dream comes true for you, it could easily be derailed by the loss of a loved one and his or her income. Mortgage protection life insurance is designed to provide financial benefits after the insured person's death, so that your family can continue to make payments and live in the same house. There is also the option to get a policy where the death benefits match the mortgage balance at the beginning of each year. As your mortgage balance decreases, so does the death benefit.

Mortgage protection life insurance or mortgage life insurance is not the same as the type of mortgage insurance your bank will offer you. The latter is a policy you would pay for which would protect the lender should you not be able to pay your mortgage. Your own life insurance policy, on the other hand, can provide financial security for your family or survivors so that they can pay expenses, such as the mortgage, living expenses, burial costs, or educational expenses.

Mortgage life insurance gives your beneficiaries some control over their financial lives after you die. Mortgage insurance from lenders, however, gives the control to the bank; they are protecting themselves. If you truly want to protect your family (or yourself in case of your spouse's death), you will get your own mortgage life insurance or other life insurance policy. Visit Spectrum Direct for more information, or request a free life insurance quote.

By : term-life-insurance.spectrumdirect.com

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Affordable Life Insurance Rate: Term Vs. Whole Life Insurance

There are many reasons why consumers choose to get term life insurance. One big reason is because you can get a cheap life insurance rate on term insurance; you will more likely get an affordable life insurance rate this way than on whole life insurance. Another advantage is that it offers pure coverage without unnecessary benefits. You can save your investment money for securities, and keep your insurance separate.

With over 1,500 insurance companies in the United States, it would be difficult for the average individual to search all of them for an affordable life insurance rate--or even a cheap life insurance rate--and make apples-to-apples comparisons. At Spectrum Direct, we understand your needs. We will take the time and listen to your concerns in order to get you the appropriate type and amount of coverage for you and your loved ones. Then, you will receive an appropriate affordable life insurance rate. No matter what your income level, there is a policy that will meet your needs.

Why an Affordable Insurance Rate Is So Important

One of the most common uses of life insurance death benefits is for funeral expenses. Another is for income replacement, should the major wage earner in the family die. Life insurance benefits can then be invested in a way that produces enough income to help your family meet its income needs. Typically, the benefit funds are used as principal and people live off the dividends it earns.

Lastly, many people begin saving well ahead of time for college funding or other large expenses. If your major wage earner dies, your savings could be in danger. So when calculating how much insurance you will need, take this into consideration. Your specific needs will help determine your affordable insurance rate. These are just some of the reasons people choose to get life insurance. If you die and leave your family behind, will there be enough money to support them? Get your affordable life insurance rate today on our website at www.spectrumdirect.com.

By : term-life-insurance.spectrumdirect.com

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