John, my neighbor asked me today to explain what is “Group Life Insurance?”

Group Life insurance is policy that insures a group of people. Its a type of insurance in which a group of people are covered- if you are part of the group.

Group Life Insurance is often provided by employers as an employee benefit because it is an economical way for employers to provide a quality benefit that employees value. Employees can usually be insured without medical examination as a group of people under a master policy.

The amount of coverage can vary from $10,000 to $100,000. Coverage ceases at the age of 70. Upon the termination of employment, the insured employee may continue coverage through an individual term policy without evidence of insurability for as long as the insured person continues to pay premiums.

Full-time employees may purchase additional life insurance for themselves, their spouse and eligible dependent children and have premiums deducted from their paycheck.

Life Insurance Premiums are the dollar amount you pay into a life insurance policy. You can pay premiums on a monthly basis or less often if you choose.

If you are over 50’s, there are affordable ways to prepare for the future.

With over 50s life insurance cover there is guaranteed acceptance- and in most cases there is no need for a medical check up. Its easy to find coverage as you can apply online to get a quote.

Can can choose the plan that you an afford and the coverage depends on the level of cover you want. Monthly payments are clear and premiums are always the same month to month, and are guaranteed never to rise once your plan starts.

It is one of the simplest ways to leave your family a guaranteed tax-free cash lump sum after you die to put towards funeral expenses and outstanding debts.

The key benefits in having a Life Cover for over 50’s:

1. No Medical or health questions
2. Monthly payments stay the same after you sign the policy
3. Guaranteed tax-free cash lump sum
4. All application will usually be processed within 71 hours
5. You have have peace of mind.

Insurance Premiums are the dollar amount you pay into a life insurance policy. You can pay premiums on a monthly basis or less often if you choose. All policies contain a 31-day grace period for late payments, therefore if you are late paying your premiums, you policy still stays in effect for 31-days, until you pay your premium.

A basic type of permanent life insurance when the premiums are paid, can cover the policyholder over the course of their entire life.

With reference to your Group Life Insurance, your employer will deduct your premiums with your permission from you pay check.

Insurance Companies will base your life insurance premiums on several factors:

• Age
• Health problems
• Occupation
• Hobbies
• Habits

If a Insurance Company turns you down for a policy, try another company.

Each Insurance Company uses different methods and factors to decide whether or not to insure you.

Here is a good example. If you have high blood pressure that you control with medication, one company might reject you while another company may accept you. Just don’t give up searching.

If you have a medical problem it’s a good idea to talk it over with your doctor. Treatment may improve your condition enough to meet company standards or the company may qualify you as a special risk at an adjust premium.

You should also want to check on group life insurance. Some group plans do not require a medical exam or health histories from your doctor.

Insurance Companies are part of the free enterprise system and within certain limit they can select those individuals they want to insure.

However they are not free to turn down coverage without a valid reason.

Insurers cannot refuse insurance to anyone based on:

• sex
• martial status
• race
• creed
• color
• national origin

It is also against the law to deny coverage to domestic violence victims, people with a sensory, mental or physical problem.

Only a few insurance companies sell life insurance policies through the mail. If you choose to purchase your policy through the mail, all you have to do is mail in your completed application directly to the insurance company. The company who sells life insurance through the mail usually does not have an agent in your hometown.

The internet has become a very popular way to purchase life insurance policies. Remember all state laws and regulations regarding selling insurance apply to the Internet and insurance-based Web sites. Do some research and make sure the company is authorized to do business. Call the Insurance Consumer hotline before signing any policy.

Most people prefer to buy life insurance through an agent or broker.

Agents represent one or more companies. The agents job, is commission based to sell your policies of the company they represent.

Brokers represent and work for you. You would describe to the broker the type of coverage you want and the amount you want to spend. The brokers job is to survey the market and bring back options for you to review. The broker also receives a commission of the sales they arrange.

It is very wise to choose your agent or broker carefully.. Choose some who is an established business person in your community. If you have concerns about an insurance provider contact the Insurance Consumer Hotline.

Certain steps should be taken to resolve a dispute with your insurance company.

You do not need a lawyer to resolve disputes in most cases, most insurance companies will generally be willing to work with your to straighten out any problems.

First contact your insurance agent. If your concerns are not addressed contact the company’s customer service office. If customer service fails short of your expectation ask about the company’s procedure for appealing decisions.

If your self-help efforts fall short then the next step is to contact the Department Of Insurance Office of Consumer Services, and speak to a life insurance analyst. Your analyst will answer your questions over the phone and explain any additional steps you should take to resolve your problems. The staff will give you an honest and unbiased answers to all your questions.

If this explanation does not satisfy you, you can then request a complaint form which your insurance analyst will mail to you with instructions of how to fill the complaint form. Your analyst will review all the facts to make sure the company follows its contract with you as well as Insurance Regulations.

The most frequent complaints about Life Insurance are:

1. Misrepresentation
2. Information requested
3. Coverage question
4. Claim denial

One of the most important thing to know is if the insurance company you buy from will be able to pay death benefits when you die.

• Choose a company with a good reputation and past history.
• Choose a company that offers the product and features that meet your needs
• Find out what state the insurance company is licensed. Be sure to know the full name, home office location and affiliation of any company you are considering.
• Choose a company that is likely to be financially sound for many years, by using ratings from independent rating agencies.
• Choose a life insurance company that will communicate with you and who is attentive to your needs.
• Check the national database to see what complaint information it has on the insurance company.The state insurance department will be able to tell you if there has been many consumer complaints about its service relative to the number of policies it sold.
• The premium and cost of your insurance contract is important so you should compare similar insurance plans based on: Your age, the type of policy, the policy features and the amount of insurance you are purchasing

Visit the State Department of Insurance web site to get the information you need about any insurance company.

A good agent can guide you through the process of buying life insurance by explaining the options and identifying what best match your personal needs. Life insurance can get very complicated.

Most agents are very professional and honest but remember a dishonest agent can confuse you with a sales pitch designed for high sales commission with little regard to the impact it might have on you financially.

A good agent can be your best ally and advocate if you have a problem with the insurance company.

It is always good to get recommendations from friends, business acquaintances, banker or lawyer about finding the best agent you want to buy your life insurance from.

Insurance agents are all required to be licensed. But I personally look for an agent with extensive education beyond the bare minimum required for a license. These agents may use initials after their names to let you know you are dealing with a well-trained professional. Some examples:

CLU: Chartered Life Underwriter

ChFC: Chartered Financial Consultant

FLMI: Fellow of Life Management Institute

CFP: Certified Financial Planner

Remember the more complicated the policy gets, the more you will find yourself relying on your agents to explain and help you. It is difficult to compare whole life policy with other policies because they are complex.

Some basic questions to ask your agent to guide you through the process are:

• How much will this insurance cost me each year
• How much is the Sales commissions
• How much am I charged for Administrative fees
• What is the future insurance cash value
• How much will I pay for penalties for an early surrender of this policy
• When do the penalties stop for early surrender
• What is guaranteed in this policy
• Are interest rates declared monthly or annually
• How long should I plan to keep this policy
• Should I keep it for a few years or for decades

Take your time to decide before you sign any forms and talk to one other person in your family or a friend.