Life Insurance for the Athlete

Those individuals, who are engaged in active sports such as extreme cycling, hang gliding or mountain climbing and have tougher time securing life insurance than their inactive counterpart has, To some, the problem is not so much of higher premium because there are insurance companies who are willing to provide coverage.

It is known by all that insurance companies like to write policies for risks that are unlikely to happen. The less the risk, the less is the premium. However, insurance companies insure risks that have a 100% chance of occurrence. Their aim is find policy holders whose inevitable demise occurs in distant future. They look to increase the time between policy inception and the ultimate payout.

While an extreme sport participant may be an attractive risk in that he or she does not smoke, is healthy and has illness free medical history. Paragliding, jumping out of airplanes and other extreme sports are known as “hazardous avocations” and they cause the insurance companies either to raise their rates to compensate for the extra risk or cancel the coverage all together.

Take a look at the Avocations and Hazardous Sports sample rating document to have an idea of how to how some life insurance companies respond to risky behaviors. Before engaging in any risky sport, contact the existing life insurance carrier. Discuss the consequences of participating in the new sport. There will be some companies who will charge additional surcharge to cover the risk while the other may deny coverage and cancel the policy.

While applying for life insurance through a traditional company, be sure to tell the truth. Lying on an application is grounds for voiding the policy.

Although, participating in extreme sports are considered risky behavior, do not feel compelled to take the first life insurance quote presented. Compare at least two or three before making any decision.

Reasons For Why You Should Consider a Term Life Insurance Plan

Term life insurance policy is designed to give the insured with coverage for a defined period of time, typically 20 to 25 years. It is cheaper than a whole life policy and the way to protect the interests of loved ones from any debt burden, school fees and rising living expenses in the event of the insured’s death.

Term Life Insurance Policies to Protect Your Family: One strong reason for taking out term life insurance coverage is to provide protection for a partner or young children. This is more important for the only bread winner of the family, as having no income coming could be financially shattering.

Outstanding Mortgage with a Term Life Insurance Plan: To buy a home is the most expensive purchase most people will ever make and can financially stretch even a two income family. And with a sudden loss of income which could mean that paying the mortgage is no longer a possibility. Term life insurance policies provide a good amount of cash upon death and this can be used to pay off the mortgage.

Lost Income can be replaced by Level Term Life insurance: Even those who don’t have mortgage will need monthly income to survive. It remains necessary to pay for utilities, groceries, credit card debts and other expenses. A term life insurance plan will provide a substantial amount of money which can be invested to yield an income each month.

Term Life Insurance Coverage to clear Unpaid Medical Bills: Not being able to pay off medical bills is the main reason for personal bankruptcy in the U.S. With Term Life Insurance policies can be used to clear the unpaid medical bills and also cover any unwanted funeral expenses.

Ways to Minimize The Cost Of Whole Term Life Insurance

Although a more wide-ranging form of coverage, whole term life insurance is the most costly way of financially protecting the interests of a family in the event of death. This is because the coverage is given for the whole of the insured’s life. Even as only a tiny percentage of level term life insurance pays out, all permanent life insurance policies do so. This means the premiums are required to be higher so that sufficient money can be invested to cover the higher cost of coverage further down-the-line.

Cheap Whole Life Insurance: Everyone wants to save money on the cost of permanent life insurance; the cheapest insurance is not necessarily the best. It is primarily important to consider all the different facets of each policy and independent brokers are considered best to make this comparison. Brokers normally take their fees from the insurer in return for providing them with business.

Compare a Whole Life Insurance: It can be possible to get a cheap whole life insurance by investing some time in performing a sufficient prior research. Like a level term life insurance, it is not easy to compare prices online as the process is far more involved. Just don’t accept the first quote from a large insurer without checking possible alternatives.

Too Much Permanent Life Insurance: This is a general misconception that more coverage is better, but this is not the case. Whole term life term is expensive and, unless it is taken out as part of a tax planning exercise, could well be a waste of money. It is important to assess how much coverage is precisely needed when the insured passes away.

Never take out Whole Term Life Insurance as an Investment: Another common mistake is taking out a whole life policy as an investment. As already applied to a percentage of each premium is invested to provide sufficient money to cover both future premiums and cover the payment upon death.

Reasons For Why You Should Consider Whole Life Insurance Coverage

To decide whether to buy whole life term insurance or level term life insurance is fundamentally important for the protection of the financial interests of a family. A whole life policy offers the insured a lot more than just coverage in the event of death. Every month whole life insurance premium covers two different areas. Part of the premium goes towards covering the risk of the mortality and the rest of it is invested in bonds and equities by the insurer.

Whole Term Life Insurance Is Coverage Until Death: A whole term insurance policy will give a good payment to the estate, or nominated beneficiary, no matter when the person dies. It will not matter if theta person dies at the age or 22 or 100, the policy is guaranteed to pay out. Even as the cost of coverage will increase with the age, these are funded from a different investment pool formed by the earlier premiums.

Whole Life Insurance Has a Cash-in Value: As previously alluded to, a percentage of each premium is invested in a separate investment pool for the future. Even this is used to pay for whole term life insurance coverage as the insured advances in years, not like level term life insurance, it also has cash-in- value. It is not recommended to use it as investment; a whole life policy does have a value that could help in any case of financial emergency.

Permanent Life Helps With Tax Planning: After suggestion from the financial consultant, there are many individuals who pay into a whole term life insurance policy to move money from their own estate to a beneficiary who is nominated. As soon as the premiums are paid into a whole life policy, the less they will cost that person.

A Whole Life Policy Has a Premium that is guaranteed: The premium of permanent life insurance coverage is guaranteed for ten years minimum. In any time of shortage of disposable income, the policy can also be cancelled at any time and the investment can be cashed-in.

To Get A Life Insurance You Don’t Need To Pass a Complicated Exam

With only a few simple health questions answered, to get a life insurance does not require to involve passing an intensive insurance paramedical exam. Insurance companies assess the health of their potential applicants before writing any insurance policies.

In a typical medical exam for life insurance underwriting, the exam begins with taking blood pressure and pulse of the applicant. Then the examiner will perform a thorough physical exam on the applicant to look for any of the signs of poor health. After physical examination, the examiner draws blood from the applicant for lab testing.

The advent of availability of the life insurance through internet made it necessary to make simpler and speed up underwriting for busy consumers who want to purchase no exam life insurance within a few minutes. This also is an opportunity for those who are worried about having to go through the intensive medical exam to get a life insurance policy. With simplified underwriting initial premiums are higher in exchange for not having to undergo an insurance medical exam. The applicants will only have to answer few health related questions to get the policy.

Another method to get no exam life insurance is through an employer’s group life insurance plan, the only qualification will be needed is to apply for life insurance as an employee within the first month of hire to keep away from underwriting. The main disadvantage on buying employer group life insurance is that the life insurance expires once the employment has been terminated.

About Mortgage Life Insurance

Mortgage Life insurance is a kind life insurance that pays the balance of a mortgage at the death of the insured person or the mortgagor. The owners of homes, townhouses, and condominiums get the maximum profit from mortgage life insurance. There are two types of mortgage life insurance:

• Mortgage protection insurance
• Decreasing term life insurance and
• Level term life insurance

The insurer of mortgage protection insurance provides life insurance protection for up to 30 years. So, the person having mortgage for 30 years or less can buy mortgage protection insurance which can cover the completely to insure the person throughout the term. Mortgage protection insurance is not Private mortgage insurance and it protects the policy holder’s family and home. Private mortgage insurance is bought for the protection of the policy holder.

The usual form of mortgage life insurance is the decreasing term insurance. The premium of decreasing mortgage insurance remains same for each year of the policy while the amount of insurance decreases each year.

Level term life insurance is available for 10, 15, 20, 30 years of protection and the person who has mortgage loan for any of the above periods, can be benefited by having this kind of life insurance. The level term life insurance policy provides protection throughout the term of the signed mortgage. The premium of level term life insurance remains same for each year and the amount of life insurance protection remains constant throughout the term of the policy.

All the three mortgage life insurances are beneficial. But for better benefit, the customers should compare the facilities like coverage, prices, and plans offered by the protection of mortgage insurance, level term life insurance and decreasing life insurance. The main advantage of mortgage life insurance is that it covers protection for the family as well as the same life style continuation of the family members like the policy holder at home.

Life Insurance And Its Relevance To The Present Society

Life insurance is the wisest investment you do in your life time. It is said like this as this insurance is basically done for the benefit of family members or the beneficiaries. If you buy life insurance policy in your life time, your family or the beneficiaries you mention on the policy will be provided with the agreed amount at the time of your event or death. Just think about it, you are investing in your life time to help or support your family after death. This is really good. Life insurance policy holders pay premium at regular intervals.

Now the question arises, is life insurance relevant today? Now-a-days almost all the family members work and they are independent economically. Then what is the value of life insurance? There are humane values; love and responsibility hide in every human heart work for such great job. So, many life insurance companies in USA like- Best Life Insurance, MetLife, Prudential, ING, Nationwide, SBLI Mutual Life Insurance, and Aviva are coming out to the market. All these insurance groups offer more or less the same kind of policies. There are two main types of life insurance offered by the insurance groups of USA. They are: term and whole life. Term life insurance covers a set of period while whole life insurance covers the policy holder’s entire life. Life insurance whether it is term life or whole life is beneficial. But this life selling market fluctuates in USA. Sometimes insurance groups do not understand the consumer’s behavior. Then that insurance group gets fewer customers. Another important point is stopping traditional agent-based way. Promotion of online quoting of life insurance groups through display and search advertising helps the customers to buy and to know about the policy matters well.