Simply stated, a contingent life insurance beneficiary is someone you name that will receive the insurance proceeds should your named beneficary predecease you or die at the same time as you.

For instance, if John Doe predeceases me, benefits should be paid to my son, James Smith and my daughter Jane Smith in equal shares.

Is it important to have a contingent life insurance beneficiary? Yes because you are clearly stating your wishes and there is no room for uncertainty.

Here are a few pointers to keep in mind when you are getting ready to purchase any insurance policy for your business. These will help you keep your thoughts organized and make sure that you get everything you need.

First, make sure that you have a clear idea of what it is that you want or feel you need. Write that down as well as any questions you have – premiums, coverage exemptions, deductibles, ways to save money, alternate choices of insurance. Write down the answers when you get them and note from whom you got the answer as well as the company they represent and the policy they were referring to.

Treat your insurance agent as if he were your lawyer and divulge everything. No, there is no legal confidentiality agreement between the two of you, but if you want to make sure that you’re getting the coverage you need, the agent needs to know all the relevant facts. Don’t keep any secrets.

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In previous blog posts, we have asked for your feedback. Often times, people tell us that they like receiving communication from us as their life insurance provider and sometimes we get complaints.

Cutting the costs of health insurance for your employees usually translates into cutting the benefits you offer. Private carriers charge incredibly high premiums and often require an intense amount of medical information from each employee. One employee with a preexisting condition or prone to illness could ruin it for everyone, causing the provider to drop the policy completely or continually threaten to do so at each renewal.

States, too, often demand that businesses include a long list of coverage if they offer health coverage at all and many businesses, unable to afford the bill, opt for no coverage, period.

States are addressing the problem but until more laws are passed, there are a few other things that businesses can do to continue to offer health insurance to their employees. For one thing, you can join a trade association which offers its members health insurance. These are often much cheaper than going it alone. Unless the entire organization is cancelled by the provider, you won’t be, either.

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Here’s an interesting article posted by a Bloomberg reporter.

Here’s an excerpt: ” Life insurance is sold with the promise that policy-holders can beat at least one of life’s two certainties: taxes. That pitch may have to change.

Northwestern Mutual Life Insurance, Prudential Financial Inc., MetLife Inc., New York Life Insurance Co. and other insurers may be facing a new fight to preserve a tax break that has grown to $28 billion a year since it was first written into U.S. law in 1913. As Congress looks for sources of revenue to curb the federal budget deficit, that benefit — which allows life insurers to market their policies as tax-free savings accounts — may make an attractive target.”

When you’ve just been in a car accident or gone through a trauma such as a break-in or suffered serious storm damage to your home or possessions, the last thing you can do is think straight. The last thing you want to do is think insurance, but it’s absolutely imperative that you don’t get waylaid by emotion too long before your practical side kicks in.

This means that when it comes to insurance claims and losses, time is of the essence. Most policies stipulate exactly how long you have from the time of the incident to make a report of loss. Your claim may not necessarily have to be filed by that time, but you will need to notify the company immediately. The time frame is usually as short as 24 hours and rarely longer than 72 hours.

If the disaster or whatever caused the damage or loss is somehow erasable you must remember to get some proof of the loss. Documentation is needed. Police reports, pictures of the incident or damage, witness accounts – all these fit the need. Keep these where you can find them when you’re asked for them.

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Mortgage life insurance is a type of life insurance that will help your family pay the mortgage if you should die. Sounds great, right? My mortgage is my biggest expense. But what about food, clothing and college?

Mortgage life insurance is unlike level premium term life insurance. Level premium term life insurance is a type of policy whose premiums will remain level for the entire length of the policy and the face amount or death benefit will also always remain the same. Mortgage life insurance follows the amount of the mortgage balance so, as your mortgage obligation decreased, so does the amount of insurance. It makes more sense to buy the level premium term life insurance.

To find out what your life insurance needs really are, check out a life insurance needs calculator. There are a number of good ones out there. This will help you ensure your family is properly protected.

To make sure that there are no gaps or holes in your business coverage, you have to ask yourself the right questions. Package policies and overly generalized insurance will most likely leave you exposed to certain lawsuits and depending on your geographic location and the nature of your business. Know your risks, know what your budget can handle in premium costs, and know what needs covering in your business.

Consider the building and property upon which your business sits. If you own, you are responsible for the building itself and everything in it. If you rent or lease, you are responsible for everything inside the building including products and equipment that your customers and employees come in contact with.

If you travel for your business, you will need to make sure that all aspects of your trips are covered. Special equipment, rental car insurance, and important documents may need extra coverage as well as health care coverage that allows you to receive medical attention outside of your local area.

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I saw a question on Yahoo Answers that someone posed and it was a valid question so I thought I’d share it. Someone asked, “If someone commits suicide, will their family still receive the life insurance proceeds.” The answer is yes, if it’s after the 2 year contestablility clause.

The contestability clause for life insurance lasts for two years after issuance, during which time it may be rescinded by the insurer for fraud in the application. After this period ends, the insurer is obligated to pay the death benefit, regardless of any fraud in the application.

Life insurance may be the last thing on your mind when you’re ticking off the long list of different insurance coverage you will need to cover your small business. It’s a personal thing, right?

Not necessarily. Some banks require that businesses requesting a loan must first take out a life insurance policy on the business owner before they will cut a check. More often than not, this manifests in the form of a term-life policy that is bought annually for an amount that will cover the loan and names the bank as the beneficiary.

Though a little morbid, term-life insurance isn’t that expensive compared to permanent insurance although you’ll notice that the prices tend to rise each year that you re-purchase the policy. Permanent insurance is a better choice than term insurance once you’ve got your business on your feet as the premium payments build equity. The benefits of this policy should be the families of those who own the business. Without it, the creditors of the business could come knocking at the deceased spouse’s door demanding payment. Insurance will offset that issue.