The lines between heavy drinking and alcoholism are blurry at best, but when it comes to term life insurance, even a moderate drinker can have problems finding an affordable policy.

There is no doubt that heavy drinking can lead to health problems and take years off your life. Even though alcohol abuse can affect your life expectancy, insurers don’t have strict definitions for a “problem drinker” vs. an alcoholic. Underwriting is more of an art than a science when it comes to determining the risks associated with alcohol.

The first thing insurers will look at to determine if they need to worry about your alcohol use is your life insurance application. Insurers question your alcohol use on the life insurance application and, while they will rarely base their decisions solely on your answer, it can be an indicator that they should investigate further.

Life insurance applications also include questions about your medical history that insurers can use to gain insight into your alcohol use. While alcohol has the potential to damage every organ in the body, certain conditions, such as chronic inflammation of the pancreas or nonspecific liver problems, are often strongly associated with alcohol use.

If you have questions about whether or not your alcohol use will affect your life insurance rate, talk to a licensed life insurance professional at a multi-carrier brokerage firm, like AccuQuote. They will compare underwriting guidelines among the best life insurance companies and give you a free term life insurance quote based on your individual information. Inexpensive life insurance may not be hard to find!

Life insurance rescission is something that you want to avoid at all costs. What is it? It’s a legal action where your life insurance contract is declared void or canceled. This can happen if you lie or misrepresent material information on you life insurance application that directly affects your mortality and actuarial probabilities, such as lying about your age, tobacco-use or a pre-existing medical condition.

So when applying for life insurance, don’t leave anything out. By misrepresenting important information about your health and lifestyle, you risk leaving your family without the benefits of your policy when you die. For example, if you tell a life insurance carrier that you’re in prefect health, when in fact, you had a heart palpitation two years ago, that carrier can and will seek a rescission of your life insurance policy, leaving you uninsured and your family unprotected.

Following are two ways to avoid life insurance rescission:

1. Understand the difference between warranty and representation –A warranty is a promise or guarantee that a piece of information given is true. If a statement is not true, your life insurance company has the right to rescind the contract. Alternatively, a representation is a statement made by you that is relevant to the formation of the contract. Untrue Representations will cancel the contract.
2. Know your timeline – Life insurance carriers have up to two years after a contract was signed to identify a misrepresentation that occurred during the underwriting process. If a misrepresentation is recognized within two years, the carrier will rescind your life insurance policy.

The moral of the story is that you should not lie or misrepresent any information on your life insurance application. By lying, you risk leaving your family unprotected when you die. If you’re concerned about paying a higher premium due to a medical condition, don’t be. Cheap life insurance is easy to find. Talk to a licensed life insurance agent at a multi-carrier brokerage firm. They can compare underwriting guidelines among top-rated life insurance companies and give you a free term life insurance quote based on your individual circumstances. The most important thing to remember is that having some term life insurance is better than having no coverage at all.

When a loved one dies, the last thing you should have to worry about is locating a lost life insurance policy. That’s why it’s important to be aware of what life insurance company issued the policy, especially if you’re the beneficiary expecting a death benefit. Otherwise, you risk losing that benefit. And if you’re the policyholder, make sure your loved ones are aware of the policy as soon as it is purchased.

Following are tips to locate a lost life insurance policy:

Find payment methods – Look for evidence of premium payments by sorting through your loved one’s financial reports. Look for canceled checks or contact their bank for copies of old checks. If your loved one wrote checks to pay their life insurance premiums, the life insurance company’s name should be written on those checks. Also, some banks sell life insurance policies to customers who own checking or savings accounts, so check with them. Additionally, you should check old credit card statements, as they may have paid their premiums by credit card.

Contact their employer – By contacting your loved one’s employer, you’ll be able to collect information regarding a group life insurance policy, if they had one.

Call brokerage firms – If your loved one purchased a life insurance policy through a life insurance brokerage firm, like AccuQuote, they will have records of the policy and what life insurance company issued it. In addition, if you’re loved one received a term life insurance quote from a brokerage firm, an agent will have information regarding their application status, policy status, etc.

After locating a policy, it’s important to make sure it’s still in force before filing a claim. First, check what type of policy it is, term or permanent. If it’s a term life insurance policy, be sure that the term length has not expired and the premium payments were paid up until death. If your loved one passed away before the policy expired, you’ll be able to receive the death benefit. Alternatively, if they died after the expiration date of the policy, you will not be able to file a claim.

If they had a permanent life insurance policy (which remains “in force” for life unless the premiums were not paid up until death), you’ll collect the death benefit once you file a claim.

For more information on locating a lost life insurance policy, contact an experienced life insurance agent at AccuQuote.

A term life insurance policy is one of the best ways to protect your family’s financial future if you were to die prematurely. However, if you have children with special needs, you need an even more comprehensive financial plan.

Many parents may be putting their children with disabilities at financial risk without even knowing it because of the demands of daily childcare. The fact is: It’s important to take the time to make a plan that will cover all of their needs when you are no longer around. Without a plan, your family could lose thousands of dollars.

Why are so many families unprepared? Children with special needs are living longer and more productive lives due to advances in medical technology. And because of this miraculous technology, children with special needs are more often outliving their parents. This means that without an adequate financial plan, the entire family could suffer, especially siblings who may be left caring for their brothers and sisters with their own out of pocket funds.

Permanent life insurance is a good choice for families in this situation because it lasts a lifetime; however, term life insurance is an adequate type of life insurance if your family is on a tight budget. Not only is it affordable life insurance, but you can choose how much and for how long you want the coverage.

Additionally, when planning for your children’s financial future, be sure to name who will care for your children if something devastating were to happen to you, and how that care will be paid for.

For more information about financial planning, and permanent and term life insurance, contact an experienced life insurance professional at AccuQuote.

Your life insurance policy is designed to be a critical safety net for the ones you love, so when naming a beneficiary to your term life insurance policy, it’s important to follow a few conditions in order to ensure their protection – especially because they probably depend on you for financial support.

Following are three factors to consider when naming your life insurance beneficiary:

1. It’s important to name a “contingent,” also known as a secondary beneficiary. This will ensure that someone receives the death benefit if you outlive the first beneficiary.
2. Name a specific beneficiary, rather than having all of the proceeds paid directly to your estate. By naming a specific family member, such as a spouse or child, the proceeds will be paid to them immediately. If the proceeds are made payable to your estate, they will have to go through probate with the rest of your assets.
3. Be extremely specific when naming your life insurance beneficiary. For example, saying “wife of the insured” could be confused for an ex-wife, resulting in her receiving the proceeds instead of your current spouse. To prevent this from happening, it’s important to change the beneficiary designation on your policy. It’s a quick an easy process.

If you have questions about naming a beneficiary to your life insurance policy and what steps you need to take, contact an experienced life insurance agent at AccuQuote. They’ll help you through the process and make sure you leave your loved ones with an adequate amount of protection. Remember, AccuQuote provides free life insurance quotes and can help you save on your term life insurance cost.

November 4, 2009

What to look for in a policy illustration

Description:

When purchasing a life insurance policy there are so many things to consider, such as the price and features of the policy. However, before purchasing a policy, you should take a close look at the policy illustration. In this podcast, Byron Udell, a life insurance and annuity industry expert talks about what you should look for in a policy illustration.

Size: 5.02 MB

Length: 5:29

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Did you know that there’s a great type of life insurance available right now that’s slowly being discontinued? It’s called Return of Premium (ROP) term life insurance and there’s no better time to take advantage of this type of life insurance. ROP is a type of life insurance that pays you back 100 percent of your premium payments if you outlive the length of your term. It offers the same amount of peace of mind as traditional life insurance coverage but with a money back guarantee.

How does it work? During the term of the ROP term life insurance policy, insurance companies invest the extra cost of the premium payments for capital growth. As a result, consumers are able to receive a full refund and life insurance companies still make a profit. For example, a 35-year-old healthy male (non-smoker) will pay about $725 annually for a 30-year $500,000 return of premium term life insurance policy. However, if he outlives his policy, he’ll get his entire $21,750 back. Keep in mind that ROP typically costs 25 to 50 percent more than traditional coverage, but if you can afford it, it’s definitely worth considering when shopping for the best term life insurance for your family.

But if this type of life insurance coverage interests you, hurry fast! So far this year, several top-rated life insurance companies have raised their rates and some companies have discontinued their ROP policies altogether.

The window may soon close forever, so lock in low rates while you still can now!

For more information on ROP term life insurance and how to apply, contact AccuQuote today. Our licensed life insurance agents will provide free life insurance quotes and answer all of your questions.

Life insurance is one of the most important purchases you’ll make to protect your family’s financial future. So naturally, there are some things you need to consider to be sure you’re adequately covered. Some of the things you should look for in a policy include riders. What are they? Riders are additions to a life insurance policy that provide extra coverage for specific circumstances.

Riders usually cost an additional amount, depending on what type and how much they cover. And although you can do without some riders, there are some that you should definitely consider adding on to your existing life insurance policy.

Following are common life insurance riders that may enhance your existing coverage:

1. Accidental Death & Dismemberment (AD&D) – In a previous post, we talked about the benefits of having an AD&D policy, especially if you’ve been labeled “uninsurable” by a life insurance company. But as a rider to a life insurance policy, it provides additional coverage if you were to die accidentally. It may double the amount of the original death benefit.
2. Waiver of Premium – If you become disabled, this rider allows you the flexibility to waive your premium payment during the entire time you’re disabled. With this rider, your life insurance policy will remain in force if you’ve experienced a loss of income due to a new disability.
3. Accelerated Death Benefit – If you’re diagnosed with a terminal illness while your life insurance policy is still in force, this rider gives you the option to collect all or part of the death benefit while you’re still alive. This may take away some of the financial burden of paying unprecedented medical expenses.
4. Guaranteed Insurability – For term life insurance, this rider guarantees your policy’s insurability at the end of its term. In some cases, you may not even be required to take an additional medical exam. This rider is worth considering if you think your term life coverage will expire before you die.
5. Family income benefit – When you die, this rider provides your beneficiary with a continuous monthly payment for a specific amount of time.

Fore more information about what riders you can add to you existing life insurance policy, talk to a life insurance agent at AccuQuote. By providing them with some general health and lifestyle information, you’ll receive a free life insurance quote and be able to discuss affordable rider options.

October 28, 2009

How to find the right life insurance professional

Description:

When shopping for life insurance, it’s important to trust your agent. In this podcast, Byron Udell, a life insurance and annuity industry expert, talks about how to find the right life insurance professional.

Size: 3.47 MB

Length: 3:47

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If you were denied term life insurance coverage due to a severe medical condition or other lifestyle factor, you may want to consider purchasing an accidental death and dismemberment (AD&D) policy. This type of policy is extremely affordable and offers protection for your family if you were to die accidentally. In addition, if you become injured or disabled due to an accidental cause, you’ll collect a lump sum that can help pay for medical expenses or make up for lost income if you’re no longer able to work.

According to the Centers for Disease Control and Prevention, accidents (unintentional injuries) are the fifth leading cause of death in the United States. That statistic is even higher for people under age 45. In fact, if you’re under age 45, you’re almost twice more likely to die in an accident than from a natural cause. In 2006 alone (most recent statistic available), 121,599 people died from unintentional injuries.

So if you’ve been labeled “uninsurable” by a life insurance company, don’t think you’re out of options when it comes to protecting your loved ones. You can typically get up to $500,000 in AD&D coverage that will give your family a financial cushion if you die accidentally.

For more information about AD&D insurance, talk to a licensed life insurance professional at AccuQuote.com. You can discuss your coverage options with them and receive free life insurance quotes from the best term life insurance companies. Remember, having some life coverage is better than having nothing at all.