How is life insurance calculated? A new guide for you!


 Life insurance  is a legal contract You pay the life insurance company. In return, the insurance company promises to pay one or more selected beneficiaries money (called a death benefit). In addition to death insurance, life insurance offers: 

 Peace of Mind-When you die, your family will be devastated. Your life will never "return to normal". But you can be confident that financial problems will not make the situation worse. Life Benefits-There are add-on options (called tabs) that can allow your policy to give you money before you die. Some examples include situations where you have a disability, require long-term medical care, or have been diagnosed with a terminal illness. (See the video "What is the Life Insurance Tab?" For more information.) 

 Cash Value – Permanent life insurance policies accumulate cash value that  can be accessed for any reason. Types of life insurance There are two basic types of life insurance: term life insurance and perpetual insurance. 

 Term life insurance is simple and inexpensive. You pick a benefit amount and how long you`d like to be covered – this is called your term, and it usually lasts 10, 20, 25 or 30 years – and you`re squared away. At the end of the term, the level, affordable premiums you`re used to become exorbitantly expensive. The insurer doesn`t always cancel the coverage, but the increased cost makes many people consider dropping the policy voluntarily. 

 And unfortunately, new policy could be a lot more expensive because of your age. 

 Fixed-term life insurance is sometimes called "pure insurance" because it is just basic insurance. You can add features (drivers above) to provide additional protection. This includes premium driver returns that will refund all premium penny  paid during the period your insurance never expires and 

 Your survivors are guaranteed to receive  death benefits (in almost all cases there is no income tax!). Permanent policies can also accumulate cash value that can be accessed for any reason, including tuition payments, severance pay, and more. 

  1) Whole life insurance, 2) Universal life insurance, and 3) Second Today or Survivorship life insurance products. See the whole life insurance page for more information. 

 How much and what kind? These are two of the most common questions asked by insurance professionals. The answer  is the same for both. It is irresponsible to recommend a course of action without a thorough needs analysis. Use our life insurance calculator and consult with one of our advisors to determine the best coverage for your needs. 

 If you have short-term financial needs, term life insurance may be your best bet. If your needs are permanent (such as  covering the cost of real estate planning or final costs), you may need a permanent policy. Most life insurance professionals recommend taking out insurance worth 1020 times your annual salary. Sound like a lot? When you think about it, you`re going to be dead for a long time. You want to make sure your family has everything they need and that they can carry on with the plans you always had: 

 “What Do I Need to Do?” 

 After you figure out how much and what kind, you have to find a carrier that offers a policy that fits and fill out an application. If you request a quote from us, we`ll do the shopping for you. We`ll help you compare policies and tell you which company will give you the best policy at the lowest price. Once you fill out and submit your application, which can often be done electronically, you`ll usually need to schedule a medical exam. These are typically finished in 30 minutes or less, and they can be done in your home or office. 

 The insurance company will take the information from your application and exam and decide whether or not they`ll insure you and what rate class you qualify for. This is called the underwriting process. On average, this process takes 38 weeks. If  approved, you can choose  to accept the policy. Just pay your monthly premium now and your family will be protected! If rejected, you may be able to get insurance from another company or consider not taking out health insurance. Submitting a life insurance claim 

 Life insurance is almost like a part of you that lives on, taking care for your family. Leaving a legacy. Whoever is given the job of filing the death claim should know some basic steps to make sure they`re doing everything required to receive settlement funds. 

 First, get your paperwork in order. 

 Be sure to obtain a copy of the death certificate of the person insured.  Call your life insurance representative. They can be helpful in determining what other paperwork you may need and provide you with a checklist of things you should consider that can ease the burden during this difficult time. In addition, they can help educate you on what you`re entitled to.  When you file the life insurance claim, keep in mind that each beneficiary must fill out the proper forms. Your life insurance agent should be able to get the forms for you, and help you with the process.  It typically shouldn`t take more than a week or two to process your claim. The life insurance company will review your claim and make the payout.

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