Life Insurance, Financial Rating etc.

Though all people wants to make good income, many fail and depend on other. If you are the person on whom someone depend, then the sure way to make the dependent secure is to buy life insurance. Life insurance offers cash money to your family or the person you make beneficiary after your death. The person who totally depends on you, the money that he will get after your death will become a good financial resource. This amount can help him to cover fund tuition, daily living expenses, pay the mortgage and other outstanding loans, and moreover, it will ensure that your family is not burdened with debt. Other benefit of life insurance is that, if you buy life insurance, you will be free from paying taxes or selling their only assets.

But to buy or to select a life insurance company plays a vital role in getting proper benefit. There are so many life insurance company are available in the market. But among all these, you will have to select the strongest and the secured one. Among all the life insurance companies in America like: American General, AIG Life, Allstate Hartford Life, Liberty Life, Met Life, New York Life, Pacific Mutual, Prudential Life, Symmetry Life, and many more, it is quite difficult to find out the best and effective life insurance company to buy insurance. But if you notice a constant record of financial rating of these companies for a period of 2 to 3 months, you will be able to get a good idea. Though economy is not constant, still it will sure help you getting a secure life insurance.

Want to sell your life insurance policy

Do you want to sell your insurance policy? Then you want to consider some points before selling it.

Know what is a piratical and a life settlement

A piratical settlement is known as life insurance policy with a "living benefit rider". It specifically includes an insurer with terminal illness who wants to sell the life insurance policy he has for immediate cash and necessitates the money for treatment. The seller should have a life expectancy of five years or less. Often, life settlements involve seniors or high-net-worth insurers of 65 years old or more. But they should not suffer from gravely ill though they may have impaired health. A life settlement in fact means the sale of an existing life insurance policy for more than its cash surrender value but less than the benefit of net death.

What type of life insurance is eligible for life settlement?

There are so many types of policies like: term life, whole life , universal and key man policy and survivor ship life policies. The mostly selling policy is convertible term life and universal life. The face amounts of this kind of policy must be $250,000 or more. A group life insurance policy holder can also convert the group policy to an individual policy to make it smellable.

Calculate the amount you expect to get for your policy

A life settlement company evaluates every policy individually. Its offer will be computer based on the type of policy you have, your life expectancy, required premiums to keep it in force, policy face value, and the rating of the insurer that issued the policy. If you have policy of cash value, you are sure to receive more than the cash surrender value with the help of life settlement contract.

Know the financial ratings of life insurance companies

While going for buying life insurance policy, this is very important to know the financial rating of that life insurance company because it can show you how strong that company is and how secure are you being an insurer. The regular headlines that suddenly rise in the financial press reveal rating changes, credit downgrades, and other news that sure elevate great anxiety among the plaintiffs, annuitants, courts and other beneficiaries.

Very frequently the rating changes and it is just a reflection of temporary business conditions that happens to a company and that needed to be addressed. The failure of a particular product line, poor management decisions addressed by inexperienced management teams, over exposure in one area of investment – are some of the possible reasons of frequent rating changes. People must realize that life insurance companies having rated A or better is equipped with an exceptional record of safety and financial integrity. People have yet to see a major life insurance company really run into any kind of serious trouble.

Among all the life insurance companies in America like: American General, AIG Life, Allstate Hartford Life, Liberty Life, Met Life, New York Life, Pacific Mutual, Prudential Life, Symetra Life, and many more, it is quite difficult to find out the best and effective life insurance company to buy insurance. But if you notice a constant record of financial rating of these companies for a period of 2 to 3 months, you will be able to get a good idea. Though economy is not constant, still it will sure help you getting a secure life insurance.

General life insurance in America

People today are more interested in getting a general life insurance and they like to count it as the cornerstone of their financial plan. But the main purpose of life insurance is to help and take care of your family in the event of your death. Besides, life insurance policies can also serve other purposes including:

• Providing funds to pay final expenses

• Creating an inheritance for your heirs

• Making charitable contributions in the event of your death

• Creating a source of tax-deferred savings

Get a brief idea on the two types of life insurance existed in America.

Term life insurance:

Term life insurance offers coverage for a fixed period of time and when the term ends, the insurer can renew it also. This type of insurance has the least expensive and simplest type of coverage. The most important point one should know before buying this type of insurance is that no saving is provided here. The premiums increases regarding the age of the person who wants to buy it. If the person is a young then he will have the lowest premium and if the person is aged then the premium will also increase. After finishing of the first term if you ant to continue with it you will increase upon the renewal as you age.

Whole or Permanent life insurance:

A permanent life insurance offers coverage that can cover an indefinite period of time. The premium of a whole life insurance remains fixed for the duration of the policy while universal life offers flexible premiums. A cash value is built up on a tax-deferred basis by a permanent life insurance policy. American General insurance companies offers four different kinds of permanent insurance:

1. Universal Life

2. Index Universal Life

3. Variable Universal Life

4. Whole Life

Whatever the policy is, life insurance is counted as the wisest investment in the world that can help others after death also.

Is over 60 life insurance necessary

The importance and necessity of life insurance remain same for the people of all ages. It is quite unworthy to think or say that life insurance can not go with who can not work more or who are old but have financial liabilities. Senior citizens are the most important and sensitive part of our society. They need over 60 life insurance that offers them the mostly needed cover to them.

The point that is seen by most of the insurer is that getting life insurance with the older generation invites more risks. The price of the over 60 life insurance is well worth. There are many reasons for what people over 60 or old age people have to pay for? Lets see the reasons:

• Mortgage – Many people can not complete paying their mortgage off at an early age and there are chances to continue till old age.

• Loss of income -Many people live without any income even many do not get pension . They have to work till the end their life. Cover can work for them as a safe guard.

• Funeral costs -Some times it is seen that elderly couple who income very less, they face problem with the costs of a funeral and could not buy it.

• Care costs – Many old age people need full time carers for their partners. Insurance is the another way to take care of them in their absence.

• Inheritance - Some people want to pass on to their family members some wealth. But if they do not have saved anything, a cover can do it when they die.

If seen minutely, over 60 life insurance can help the old aged people and they can live a happy life with this life insurance.