Life Insurance Premiums

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.

A basic type of permanent life insurance is when the premiums are paid, to 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

The beneficiary should get a claim form from the insurance company. The insurance company will need, the name of the insured, a policy number and a certified copy of the death.

The beneficiary will have choice of ways to receive a death benefit. Settlement options could include the following:

• A lump sum payment
• An installment payment usually with interest
• A checking account where the beneficiary receives a check book and can withdraw money when need
• The insurance company could hold the benefits and pay interest

You generally do not have to pay income tax on death benefits.

Get advice from your lawyer or account on this matter.

It is illegal for a stranger to take out an insurance policy on your life. The stranger has no insurable interest and could have an unhealthy desire to see you die sooner than nature intends, so that his can collect the death benefit.

A life insurance policy is like anything else, if you own it, you can sell it, even to a perfect stranger who has no conceivable insurable interest, who then becomes the policy owner and can then name himself as the beneficiary.

There are Viatical Insurance Buyers and Sellers of life insurance policies and they call themselves viatical settlement firms. The viatical firm buys insurance policies from people with terminal illnesses and sells them to investors.

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

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

• Decide how much you need (the amount of death benefits)
• How long you want the life insurance to cover you (1, 5,10, 15, 20, or more years)
• Compare insurance premiums with other companies
• Find out if the insurance policy fees are built into the premiums
• Ask is the life insurance policy is renewable
• Find out if it is convertible to whole life insurance
• Ask if participating life insurance policies are available (potential for dividends)

You can purchase term life insurance from an insurance agent but some companies market term insurance through the mail, internet or TV.

Mortgage Life Insurance is sold by insurance companies. It is called mortgage insurance but it is really a decreasing term life insurance that will pay off your mortgage if you die. You buy mortgage life insurance to protect your survivors from having to pay the mortgage.

The premium is structured where the policy begins with a death benefit that is equal to your current mortgage balance. The death benefit decreases at the same rate as your mortgage balance. The premium payments never change but may stop prior to the loan payment. The lender may agree to add the premium payments to your monthly mortgage payment.

The advantages to Universal Life Coverage are the policy has the potential for cash value to earn more than the minimum interest rate. Also the premium amounts and death benefits are flexible. You may be able to change the amount of your payments or your death benefit after you buy the policy. You can also increase your coverage by paying larger premium but you will be required to answer health questions or get a physical to increase the benefits on your policy.

It is possible that the cash value could grow faster than is needed to pay the cost of insurance. In most cases the policy holder can choose how that money is used. Talk to your agent about the options that are available.

Your Universal Life Insurance policy has 2 death benefit options:

1. Level death benefits is equal to the policy’s face value

2. Increasing death benefit is equal to the policy’s face amount plus the policy’s account value. The premiums will be higher for option 2.

Read and understand your policy.

This policy builds cash value and the policy holder can use the cash value to get a policy loan. The loan can only be for the amount up to a percentage of the policy cash value. The loan of course will accrue interest. Note though that if the loan plus interest amount exceeds the cash value, the policy will expire with no value.

The advantage of a Whole life insurance policy is that the policy can return money to the policy holder in the form of dividends, if the company earns a surplus because of profitable operations. Since earnings such a surplus depends on many variables, dividends are never guaranteed.

There are different type of Whole Life Insurance. The most common types are:

Joint Whole Life- provides basic whole life benefits, but two lives are insured under the same policy.

Last Survivor Whole Life-a Joint whole life, designed mainly for married couples.

Universal Life- the policy holder can choose your policy’s face amount and premium and to change these factors while the policy is in effect.

Adjustable Life- allows the policy holder to vary the coverage as insurance needs change.

Indeterminate Premium Life- specifies 2 premium rate- a guaranteed maximum and a lower rate you actually pay. Your premium can never be more than the guaranteed maximum.

Interest Sensitive Whole life- similar to indeterminate premium life, but taken a step further as cash value can increase beyond the state guarantee if economic conditions warrant.