Life insurance facts

Life insurance guarantees payment of a given amount to the insured person’s beneficiaries when the policy owner dies. While many people, especially younger people, don’t necessarily want to take the time to think about something as abstract as dying, this form of insurance is particularly important for parents or other persons with dependents. The basic structure of most life insurance policies is relatively straight-forward: the policy owner pays a premium every month; upon the owner’s death, the insurer issues payment for the policy amount to the spouse, children, or other beneficiary(-ies) named in the policy. In practice, as with most forms of insurance, specific policies can be much more complicated than this fairly simple model. For example, the life insurance policy might have riders, or additional clauses, that pay off in the event of a terminal or critical illness or a permanent disability due to physical or mental causes. Also, there are different varieties of policies, including term life insurance, whole life coverage, universal coverage, and limited-pay policies. Understanding the difference between the different types of coverage and picking the appropriate one for your situation can be difficult, and professional advice may be necessary to ensure the correct policy is in place. Term Life Insurance covers the insured for a certain number of years, after which the coverage typically expires. Because the policy does not build any cash value, and because it is typically based on a low likelihood of death for the covered person, term insurance premiums are usually relatively low. However, the length of the term, the amount of coverage (and whether it stays constant or decreases over time), and the premium amount (again, fixed or adjustable over time), will all affect the premium amount. The lower premium is a primary advantage of term life insurance; a drawback is that, at the end of the term, the still-living insured receives no benefit from the coverage. Whole Life Insurance is permanent life insurance, which means the policy holder can withdraw money paid in or borrow against the cash value. Whole life has the advantage of a fixed annual premium and guaranteed death benefits. Premiums are much higher than term life policies at first, but over the life of the policy the two policy types roughly even out in terms of total cost. While whole life insurance does build value over time, it may not be as strong as other savings options in terms of the rate of returns. Also, dividends are not guaranteed with whole life. Universal life insurance is similar to whole life, but it offers more flexibility in premiums and may offer stronger returns over time. It also has a cash account and accrues interest. The variety of policies available is intimidating enough to many people. With dozens of optional riders available, and variations even within individual rider classes, competent professional help is definitely recommended when selecting life insurance. It should be noted that the life insurance policies offered by many employers, while an attractive benefit, are typically not adequate to meet the needs of the insured’s family in the event of an untimely death. The total amount of life insurance carried should be enough to pay off any mortgages, car payments, credit card debt, and any other major outstanding debt, leaving the survivors in a solid financial situation.

Life insurance. fat customers tell porkies

According to a recent survey almost a quarter of UK citizens are over weight but, says Cancer research UK, 25% of these are simply not interested in losing weight. We are in fact the second most obese nation in Europe, second only to Greece. This not only concerns the UK Government, who have just announced a concerted campaign to tackle the problem via GP's, but also the life insurance industry. The problem is that many people are still sensitive about their weight. Sensitive to the extent that they'll convince themselves that they're sticking to a diet when they are patently not. The loss of a pound or two occasions celebration, whereas the same two pounds going back the next day remains unannounced. Ring any bells for you? Well normally, a porky or two about your true weight doesn't harm anyone - other than perhaps yourself. But now life insurance companies are having to take a much closer interest. They suspect that lots of people are telling lies about their weight on their life insurance applications. Consequently, Scottish Provident, one of Britain's biggest life insurers, is tightening up its application procedures. Now, as well as asking applicants how much they weigh, they'll be asking when they last weighed themselves. It's an attempt to encourage applicants to answer more accurately rather than pluck a figure out of thin air or being economical with the truth. A spokesman for the insurer said, “We know that people normally understate their weight, mainly because they are in denial about the subject, although there are also some people who will lie just to get cheaper premiums”. The British Medical Association classifies someone as “obsess” if their Body Mass Index (BMI) exceeds 24 but most insurance companies are now using 30 as their obesity definition. Above that figure and you'll find that they'll load your premium and even ask to have a medical examination. Anyone who is overweight could easily see their life or critical illness insurance premium loaded by up to 50% - and extreme cases, cover will be refused. So, if you want to know your BMI, take your height in meters and multiply it by itself. Then take the result and divide it by your weight in kilograms. The result is your Body Mass Index. Whilst BMI has become the accepted method of assessing someone's weight, it does have limitations as it doesn't discriminate whether the weight is being carried in fat or muscle. And a study of 33,000 adults reported recently in The Lancet, concluded that the medical profession's “over 24” BMI obesity definition could be raised to “over 25” without harming health. That's the equivalent of adding an extra half stone. Their research also found that only adults with BMI's in excess of 35 suffered a pronounced lowering in life expectancy. But in accepting a BMI level of 30, the life insurance industry has taken a cautious mid position. Well, if it was your money at risk, wouldn't you?

Living wills are an important part of life

If you are a young couple busy with young children with good lives and jobs, you are certainly not ready to think of your lives ending. But you do need to think about it. Case in point - Terry Schiavo. She was just 26 years old when cardiac arrest put her in a persistent vegative state. The court battle over whether she'd want to live or die drove home the message that end of life issues know no age boundaries. You need to talk about the issues. The problem is that if something should happen, emotions could take over and lead to something you may not have wanted if it isn't in writing. Why A Living Will Is Important That's exactly why a Living Will is something every adult should have. The definitive cases on the issue - Karen Ann Quinlan, Nancy Cruzan and Terry Schiavo all involved women in their twenties. If you are not able to talk to yourself, the Living Will speaks for you. Legally, it's called a natural death declaration. It allows you to define what you consider a terminal condition and what you consider to be life sustaining measures, for example, CPR, antbiotics, and food and water. Don't Hide The Living Will Once you create your Living Will, don't put in a drawer. Talk to family members, give copies to all your doctors , friends and lawyer and take it with you on hospital visits. The more people who have a copy, the more effective it will be and the more likely it will be honoured. You need to have this declaration; you hope you never need it, but it's good to know it's there. If something should happen, it won't be a struggle between families. A Living Will should also include a durable power of attorney for health care. It designates a specific person to make medical decisions for you if you can't make them yourself.

Living wills can kill you

Obviously, it is beneficial for anyone, in a vegetative state lor not to have a Living Will. But, people need to know that many of the Living Wills utilized today have major problems associated with them. Living Wills Have To Be Clear Much of the problem stems from misinterpretation of typical Living Wills by medical staff. These forms are often one size fits all and often legally driven and therefore do not flow medically. Also, they are often recommended to patients with end stage conditions who have already agreed to only comfort care or hospice interventions. As such, when medical staff see Living Wills they automatically associate it with a reduced level of care. This is what makes a standard Living Will dangerous and it may comprimise your care and safety. Most people who create Living Wills are unaware of this problem and wish to receive care, unless they are terminal despite reasonable medical interventions, or in a persistent vegetative state. Living Wills Call For Group Discussion In most cases at least, Living Wills should be read and interpreted by at least two persons. They can recheck the document and the patient's history and decide whether to intervene. Attorneys often help create the problem when writing Living Wills for clients. They should not be doing Living Wills unless there is some sort of interaction with the help of an experienced physician.

Is your auto insurance enough

Mother Nature can really create a wreck from a really powerful looking vehicle. And according to statistics, the vehicle losses have gone straight up. These vehicle losses include those that became the target of hurricanes, tornadoes, hailstorms, firestorms, floods, and other forms of Mother Nature’s wrath. This date is according to the International Organization for Standardization’s (ISO) Property Claim Services (PCS) department. This department is the official authority on insured property losses from catastrophes in the areas of the North Americas including Puerto Rico and the Virgin Islands. According to Ron Berry, who is the senior vice president at the Council of Better Business Bureaus, “Drivers spend a lot of money on auto insurance and it is important for them to be as familiar as possible with what their coverage includes when they’re making their purchase decision. But too often, people shopping only for the lowest rates do not notice their lack of certain types of coverage until they try to make a claim.” With this, it is indeed important that you do ask for information about auto insurance from experts before you do go ahead and make that purchase. Now, according to experts, you should also be able to know what you purchased if you already have auto insurance for your car. That way, if your car gets damaged, you would be able to know if you would be able to get some claims. You should be informed about the details of your insurance. Also, if your car gets damaged, report it as soon as possible. If your insurance policy entitles you to claims, by reporting the damage as soon as possible, the insurance company can have it towed to a repair center and start work immediately. You see, some insurance policies even cover a replacement car during the time that your car is still in the works.

Keyman insurance a business essential

If you own your own business, you'll have insurance in place for your buildings, stock and vehicles, and you will be likely to have public liability insurance. You may also be insured for professional indemnity and legal costs – but have you considered insuring your most important assets – your key staff? In the UK there are 3.9 million small, often family, businesses with up to four employees – if one of those key staff were to die or fall seriously ill, it could mean the end of the business, and this goes for limited companies, partnerships and sole traders. If you are one of those people then you should seriously consider Keyman Insurance, and here's why. Keyman Insurance financially protects businesses from the effects of serious illness or death of staff who are central to the success of the company. It does this by providing cash when you need it most, so you can cover loss of profits, inject more cash into the business, or take on temporary staff. There are actually four different types of Keyman Insurance: • to help your business recover during the time that your key person is away from work, or to train/take on somebody new; • insurance against loss of profits; • to provide protection for shareholders or partnership interests; and • for people providing businesses loans or banking facilities. 1 Protecting your business if a key person is away from work Your key people are the ones who are an essential driving force in your business - the people who if they were away from work for a long period, your business would suffer greatly. This could mean a reduction of sales and profits, or it could mean your business is shaken to the core. Look at the Directors, Partners, owners, think about your senior managers – every business is different but the key people will soon become apparent to you. Insuring these people will ensure that if they are ill or die, you will have the cash you need to take on someone new, or train a replacement. 2 Keyman Insurance to insure against loss of profits Losing key staff can have huge ramifications, if they are central to the success of the business then their loss could leave you facing bankruptcy. It's a good idea to insure against this possibility. 3 Keyman Insurance for Shareholders or Partners In this case, the insurance will protect the company if shareholders or partners become seriously ill or die. Families may want to sell their share in the company which leaves the remaining members open to newcomers entering the business. Keyman insurance schemes can be used to provide capital to purchase the shares from the original shareholders or their estate. 4 Keyman Insurance insuring Guarantors Many small and new businesses are required to provide a personal guarantee or a charge on their personal property when they take out a loan. This especially applies to small and new businesses. If one of these guarantors becomes critically ill or dies, then the lenders may decide to recall the loan. Keyman Insurance can protect you by paying off the loan and taking all the pressure off the guarantor/guarantor's estate. Most of the UK's top insurance companies offer Keyman Insurance as a natural progression from their Life and Critical Illness Insurance provisions. They can advise you further on what type of policy would be best for you. So, the question is, can your business really afford NOT to have Keyman Insurance?