The Creation of a Viatical Settlement Database: Will It Prevent Fraud or Compromise Your Privacy?

A national viatical settlement database is being created that will help track suspicious or fraudulent behavior in viatical-related transactions. But will it really help to prevent fraud? Or will it compromise your privacy and impede on your personal-financial life choices?

The Life Settlement Institute (LSI) is a nonprofit association made up of six, privately held viatical settlement companies. Its claim is that the database will help to prevent fraud by following-up on policy-sellers or buyers who are believed to be engaging in fraudulent activities, as well as professionals and brokers whose conduct is questionable. Critics, however, are leery to accept this all as fact, and believe that it will be possible for the information that is contained in the Viatical Settlement Database to be used for other purposes.

An infringement on privacy is a major concern, as well as personal information being sold to other companies and being used to attempt to sell other insurance policies and loans.

What is a viatical settlement
A viatical settlement, also known as a life settlement, is when a life insurance policy is sold to a third party for a percentage of the death benefit. The third party then becomes the beneficiary or new owner of the policy. Once the insured person dies, the beneficiary will collect the entire death benefit. The buyer must, however, pay all the future premiums until the insured dies.

Viatical settlement database opponents
In order to facilitate treatment, the Federal Health Insurance Portability and Accountability Act (HIPAA), requires a patient's consent to release medical records to "key players" (a requirement that the Bush Administration is currently trying to do away with). The main concern of skeptics to the database is that the term "key players" will change in meaning. It will go from just being your doctor and health plan provider, to including more groups, such as your insurer, bank, pharmacy, employer, medical data warehouses, and so on. If a company signs up for access to the Viatical Settlement Database, they may be able to divulge information about your medical history and past claims, in turn charging you higher premiums on your life insurance policy or denying you products.

If you are interested in receiving a life insurance quote, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class life insurance providers - helping you find you the best life insurance coverage for you and your budget.

Viatical and Life Insurance Settlement Contracts: Will They Work For You?

Viatical and life insurance settlement contracts allow a person to sell their life insurance to a third party in exchange for a reduced amount of its face value. The amount you get back is dependent on your health, age, death benefits and the number of years your life insurance policy is in force.

In 1989, viatical businesses began as a way to give terminally ill AIDS patients early access to their life insurance. As time has gone by, life insurance policyholders with cancer, heart disease, and other life threatening illnesses have been opened up to the same privileges.

There are many legitimate viatical and life insurance settlement companies, but there are also many scams out there as well. It should be noted that some viatical companies target people with conditions such as high blood pressure, in an attempt to cash in on their hefty death benefits. It's important to be cautious when selling your life insurance policy, and be sure to do your research before you commit to selling it.

Make sure you know what you're doing

• Ask questions and do not commit to anything unless you fully understand the terms and conditions.
• Weigh the pros and cons.
• Speak with a financial advisor who takes into consideration your financial circumstances, age, objectives and other circumstances.
• Consider other investment choices as alternatives.
• Check into what (if any) tax consequences there are when buying a viatical settlement. Are you able to use 401(k), IRA, Keogh, or other qualified retirement plans when making the purchase?

If you are interested in receiving a life insurance quote, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class insurance providers - helping find the best life insurance policy for you and your family.

What Benefits Are Offered To Terminally Ill Policyholders

Accelerated death benefits are benefits offered to terminally ill policyholders who are in need of money. Either a lump sum payment, or monthly payments deducted from the policy's face value, may be offered by the life insurance company to the policyholder. They began in 1988 as a way of helping terminally ill AIDS patients collect part of their life insurance proceeds. Over time, it has expanded to illnesses that are terminal, chronic and catastrophic (amongst a few others).

What can trigger an accelerated death benefit?

• Terminal illness, chronic illness, or a physical condition is diagnosed where death is likely to occur within a set time
• Medical conditions, such as catastrophic illnesses or dread diseases, that will result in death, unless very extensive care and extraordinary medical treatment are given
• Long-term care in a nursing home, nursing facility, or at home, where the person is unable to perform daily activities, such as eating, drinking, dressing, bathing, toileting or continence
• Permanent nursing home confinement

Most life insurance companies will begin payment of accelerated death benefits if the policyholder's life expectancy is under one year. Depending on your life insurance company, accelerated death benefits can only be engaged if you have a catastrophic or dread disease, such as a heart-attack, stroke, coronary artery bypass surgery, kidney failure, or life-threatening cancer. Only a select few insurance companies will begin a payout of your accelerated death benefits if you have a major organ transplant, AIDS, loss of eyesight or a limb, or paraplegia. The income from accelerated death benefits is not subject to being taxed federally, and in some states, not even subject to state income taxes.

To be given the option of accelerating your death benefits, some companies do charge you a higher insurance premium, while others only charge if you do engage the option. Depending on the life insurance company and how their policy for accelerated death benefits is setup, the monetary advances may either be charged as a lien against the policy (where interest is charged on the advanced amount), or the loss from the policy being cashed in is taken from the amount advanced to you.

Limitations of accelerated death benefits
Depending on which insurance company you have, the amount of the accelerated death benefit you choose to engage in may be limited. To do this, restrictions will be made either on the percentage of the death benefit, or the total amount you receive. The typical form of payout is lump-sum distribution, but if your state restricts this, you will be offered monthly payments.

In most cases, an accelerated death benefit rider can be added at any time, but depending on which life insurance agency you go through, you may only have the ability to sign up for it upon purchasing your policy. If you're unsure whether your life insurance policy, be it group or individual, has an accelerated death benefit policy, be sure to contact your life insurance agent or life insurance company.

If you are interested in receiving a life insurance quote, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class life insurance providers - helping you find the best life insurance coverage for you and your family.

Accidental Death and Dismemberment Insurance

Accidental Death and Dismemberment Insurance (AD&D), it sounds simple enough, right? But is it really necessary? That's the decision you need to make.

Generally, AD&D insurance is a rider on a basic life or health insurance policy. It's name states exactly what it covers; accidental death and dismemberment insurance, but there are limitations of the coverage. These limitations may be a deciding factor for many on whether or not to add it to their existing life or health insurance policy.

The first thing to consider is whether or not AD&D insurance is a good deal for you. What is the likelihood you will have to make a claim? If you have health and life insurance already, you should be covered in the event something happens to you and you are forced to make a claim. Also, it may be wiser and more cost-effective to just put the money you'd be paying towards the premium into a standard life insurance policy or other form of insurance. Dave Roush, CEO of Insurance.com, warns consumers that "AD&D is a very, very limited form of insurance. When it comes to insurance, you want to be covered and protected in all instances, not just certain ones."

What does AD&D cover?
In the event of a fatal accident or an accident that results in you losing your eyesight or a limb, AD&D will pay out. However, there are stipulations to the coverage. To receive benefits in the event of an accident, your injuries or death must occur within a time frame of three months from the accident date. Only if your death or injuries can be proved as being a direct result of the accident, will you be able to collect off your AD&D coverage.

If you are in surgery and die, have a mental or physical illness, bacterial infection, hernia, or you have a drug overdose that results in your death, you will not be covered by AD&D. "It is important to read the fine print when applying for this kind of policy, because it may just seem like you are getting better and more adequate coverage, when in reality, you're really not," reports Roush.

Dismemberment coverage gets a little trickier. If you lose one member (a hand, foot, limb, or sight in one eye), the insurance company will pay 50 percent of the full benefit. If you lose two members, you will receive the whole benefit.

Where to get AD&D
AD&D policies are generally underwritten by major insurers and can be purchased through credit card offers or credit unions. Some major life or health insurance companies may include AD&D in their group health or life insurance plans. Again, there are limitations for some companies in that the insured must earn at least 10 percent of the principal amount, and in the event of a covered accident, they can collect no more than 10 times their annual salary.

How much is accident protection worth to you?
Accidental death and dismemberment insurance is a good supplement to a life insurance policy. Depending on the amount of coverage needed, AD&D insurance premiums average out at around $60 per year. Even with the low cost of Accidental death and dismemberment, many would prefer to use the money they could be paying for the policy and put it towards more health or life insurance coverage. Also, if your job isn't high-risk, like construction work for instance, buying AD&D doesn't seem to make a lot of sense.

An accidental death policy (minus dismemberment coverage) is another route consumers can go down if they are considering extra coverage. If, for example, you had a $100,000 life insurance policy and you added an accidental death rider, and you were killed in an accident, your beneficiary would get $100,000 from your life insurance and $100,000 from you accidental death insurance. If you're killed on a "public conveyance," the accidental death benefit doubles, so your beneficiary would receive $200,000.

Do you really need it?
Risky or extreme hobbies, such as skydiving, bungee jumping, or extreme sports may not be covered by AD&D, because you are routinely engaging in dangerous activities. If you're working in a high-risk job, such as construction, the AD&D policy may be a good idea-though with high-risk jobs come higher premiums regardless. It is inexpensive accident coverage, and it won't hurt to have the extra coverage, but realize you could be putting the money towards a different kind of insurance policy that is more conducive and beneficial to your lifestyle.

If you are interested in getting a life insurance quote, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class life insurance providers - helping you find the best health insurance coverage for you and your family.

Affordable Life Insurance For Asthma Sufferers

In the United States, asthma continues to be a growing concern not only for asthma sufferers, but for life insurance companies as well. The main concern of insurance companies is that half of all asthma deaths occur in people younger than 65. Though asthma is a very serious and potentially deadly condition, it is still possible for asthma sufferers to find affordable life insurance.

If you have asthma, it would be beneficial to shop around for different life insurance quotes. The severity of the asthma that you have, the persistence of it, and how well you respond to treatments, are all deciding factors for insurance companies when they are considering your policy. The National Institutes of Health have set goals for asthma treatment, and if you accomplish such goals, your premium may go down. The list includes:

• Low occurrences of wheezing, cough, shortness of breath and chest tightening
• Asthma symptoms not affecting your sleep
• Asthma not causing a disturbance in your work or school schedule
• Full participation in physical activities
• Hospital stays or visits to the emergency room that are not asthma triggered/related
• Asthma medication taking effect without causing adverse side effects

If you're an asthmatic and you apply for life insurance, your life insurance company will want to know the results of your pulmonary function tests (given by your doctor) and what your "peak flow meter" reading is (typically a self-test done at home). The tests will show how good you are breathing, which helps insurance companies see how much of a risk you truly are.

Within the past three years, if you haven't suffered from any "exacerbating asthmatic episodes," where you were required to go to the doctor, emergency room, or take off of school or work, your application will appear more favorable. As a result you could potentially qualify for a standard or preferred life insurance policy. As long as you maintain a healthy and active lifestyle, your insurance rates should be affordable. However, if medication isn't working for you, that's when you may see an increase in your insurance rates.

Asthma attacks and higher rates
The plan laid out by the National Institutes of Health is ultimately what a person with asthma who is looking to buy life insurance needs to strive for. If the last series of asthma attacks were so severe that you needed medical treatment, then you will have to wait longer to get the better rates. The longer it's been since a severe attack, the easier it is for you to get a more affordable policy. Also, life insurance companies tend to look down and become leery of policyholders who have frequent, though less severe, attacks. In the eyes of the life insurance company, this could mean that the medication is failing and a new treatment may be needed.

A smoker and an asthmatic?
Asthmatics who are smokers may have one of the most expensive policies. Not only will the policyholder be charged with smoker rates (up to three times the amount of non-smoker), but also, they will be charged a surcharge on their life insurance policy because they are an asthmatic. Regardless if you smoke or not, it is still important to visit your doctor at least twice a year to have your asthma monitored. This will not only be beneficial to your health, but it will also show the life insurance company that you are taking care of your condition.

A list of the medications you are on should also be given to your insurance company-Even though they may use the amount and kinds of medication you are on as an indicator of how severe your asthma is, a list should be given to your insurance agency. If you are taking a lot, it may seem that by giving them this information, your rates will automatically skyrocket, but remember, their main concern is how well you respond to the treatment. If you recently switched medication, it would be a good idea to hold off on applying for life insurance for a year or two, just so you can establish a history with the medication and show that you are meeting your goals.

If you are interested in receiving a life insurance quote, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class life insurance providers - helping find the best life insurance coverage for you and your family.

Battle of the Sexes: Who Pays More For Life Insurance?

In a society where the battle of the sexes runs neck-at-neck for almost all cases, it's a hands-down winner in the race for who plays less for life insurance. The winner is women. But why?

A study by the Society of Actuaries done in February of 2001, concluded that testosterone wreaks havoc behaviorally and biologically on men's bodies, which leads to a higher risk of disease, as well as risk-taking behavior-like unsafe driving and drug and alcohol abuse. This is because testosterone promotes higher blood pressure while it lowers the effectiveness of the immune system. The greatest difference in mortality rates is seen at age 22, when testosterone is at its highest.

Traditionally, it was believed that women lived longer than men because most worked from home. But more recent studies have shown that women who are out in the working force actually live longer than those who are homemakers.

Additional studies have been done in an attempt to study demographic mortality rates of men and women. The conclusion of such studies showed that men typically have a higher rate of dying from cancer, diabetes mellitus, heart disease, strokes, pulmonary disease and infections-hence why men pay more for life insurance. The highest and more prevalent danger now, for both sexes, is cigarette smoking. Smoking takes more than nine years off a normal life expectancy, compared to a life expectancy of a non-smoker.

If risk-taking behaviors and bad habits are assessed early, and steps are taken to correct them, both men and women can expect to extend their life expectancy substantially. The better and healthier you are, the easier it will be to find affordable and adequate life insurance. If you are interested in receiving a life insurance quote, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class life insurance providers - helping you find the best life insurance coverage for you and your budget.

Booming Life Insurance Sales

When tragedy occurs, many people tend to reevaluate their way of thinking and begin to play the "worst-case scenario" game. The terrorist attacks of September 11 were no different. Minds began racing, and people began questioning things like, "what will happen to my family if something happens to me?" Or, "How will my family be affected financially if I die?" And with the increase in questions and uncertainty in the event of a tragedy happening in the future, the sales in life insurance and financial planning boomed.

Proof of this can be seen in the results of MIB Life Index for the fourth quarter of 2001, which showed the highest levels since 2000. The MIB Life Index tracks searches for medical records undertaken by insurers after a consumer applies for life insurance.

LIMRA International, a financial services marketing and research organization, found the same high results when looking at life insurance figures for 2001. After the stories from survivors praising their life insurance companies for all that they had done to help them get back on their feet came out, a new found sense of hope and a "do-gooder" attitude began to erupt throughout life insurance companies and insurance agents. "When people feel great about what they do, and are proud of the accomplishments they have, they tend to work harder and become more enthusiastic," says Dave Roush, CEO of Insurance.com.

One of the strange findings was that most Americans claimed they were less likely to seek out any financial advice or buy life insurance at all. This feeling of uncertainty can be attributed to how the economy was and how things really weren't looking good for the American people. Job stability and the affordability of life insurance was a big concern, as was that of talking to strangers or opening unmarked mail, due to the anthrax threat.

If you are interested in receiving a life insurance quote, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class life insurance providers - helping you find the best life insurance coverage for you and your family in the event of a tragedy.

Child Beneficiaries And Their Life Insurance Trusts

According to Merriam-Webster's dictionary, a trust is a property interest held by one person for the benefit of another. The trustee (the person who holds the trust for another person) does not have the right to benefit from the trust. They can, however, be held accountable and liable for any lost funds, in the event they don't manage the assets responsibly.

It is a good idea to have a life insurance trust to benefit dependent children when your income is lost due to your death, but more so, it is important that these benefits you set up for your children are used the way you want them to be used. To do this you will want to create trusts for each of your children. Trusts are easy to create, so all you need to do is check with your life insurance company and see what verbiage you will need to include in your life insurance policy and will. You should appoint a guardian, as well as stating the trust in your last will and testament-in the case of a life insurance policy, your death benefits would be transferred to the trust after your death.

It's quite common for young parents to name each other as beneficiary, but if they both die, the money can be put into a trust for the couple's children. The trust agreement needs to be clear as to whom the trustee is and how the money is to be used.

What if I have a special needs child?
If you have a special needs child, and they can neither work nor care for themselves, a special needs trust can be set up in their name using your life insurance funds to pay for their care. Social Security is generally the income they can expect to receive when you die, so it's important to note that by giving the money to them outright, they may be ineligible for the Social Security until the money runs out. With the special needs trust, the trustee can pay for everything except for essentials, such as food, clothing, shelter and medication-which can be covered by Social Security instead.

It is most important to be sure that the terms of your trust are in writing and that you make the life insurance company aware, as well as the allotted trustee, of the arrangements of the trust.

If you are interested in getting a life insurance quote, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class life insurance providers - helping you find the best life insurance coverage for you and your family.

Do You Need More Than Just Group Life Insurance?

Though group life insurance is a great deal, is it really all the insurance coverage that you need?

In most cases your employer owns the group life insurance policy, and you will either receive it as an employee benefit or you can purchase it through your company's benefits plan voluntarily. If it is a benefit, it typically equates to one full year's salary that is paid out to your beneficiaries at the time of death. Smaller companies may offer a set, face amount payout, depending on your position at the company. Larger companies usually offer better death benefits, like up to three times your salary, in the event of your death. Smaller businesses are more apt to offer smaller plans due to limited funds.

Group life insurance that is offered on a voluntary basis is typically more extensive than if it's given as a benefit. Depending on what kind of policy you have, your spouse and children may be covered as well. The size of your death benefit can vary, and at some places, there is a maximum amount of $1 million that can be collected by the beneficiary at the time of death. Some employers even go as far as to offer a whole life insurance policy, giving employees permanent life insurance coverage, even after they leave or retire. The main difference between individual life insurance rates and group rates is that the premiums in group life insurance rates go up every five years (or so), because the risk of death associated with age increases.

Why group life insurance is so "cheap"
The cost of insuring a group of people, rather than an individual person, is cheaper because the rate is based on the overall risk of the group. The insurer typically assumes that not all people who are insured will remain with the company until they retire, which in turn means a shorter life insurance term. Also, the likelihood of the entire group dying is far less likely than if you base it off of one person.

The cost to insure a $100,000 life insurance policy under a universal life group policy would only be $5 per month, or $70 per year. This is because generally, for a person in good health working a normal job, the cost per $1,000 worth of life insurance coverage is only 5 cents.

No medical exams required
Unless a severe health problem is listed in the questionnaire when applying for group life insurance, no medical exam will be required. In laymen's terms, you will qualify for life insurance, regardless of any outstanding medical conditions, making it a guaranteed issue.

If a health problem is found, a medical exam, including blood and urine specimens, will be required before you can be approved for life insurance. Figures will be listed and compared in table format, comparing the employee population of males to females, smokers to non-smokers, and the nature of the work being done at the company and by the candidate. High-risk jobs, such as construction or carpentry, will likely be more expensive than low-risk jobs, like working in an office or a bank.

Added Bonus
Group life insurance is a great added bonus for you; however, it should not be used instead of individual life insurance. With group life insurance, the coverage offered is not always enough to take care of your beneficiaries, especially if you are the main bread winner in the family. Also, you may lose your group life insurance coverage once you leave your current job, and if you developed a health condition while working there, it may be more difficult to get affordable life insurance rates at the next place you go to.

However, the option to keep your life insurance after your leave or retire may be available, but it will probably cost you ten to 25 percent more in insurance premiums. In the event your employer switches life insurance plans or cancels the one you have, you will no longer be covered.

The downsides of group life insurance coverage

• You may lose life insurance coverage if you change jobs
• Limited life insurance coverage options and features to select from
• Group policies are more standard than individual life insurance plans

If you are interested in receiving a life insurance quote, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class life insurance providers - helping find the best life insurance plan for you and your family.

Life Insurance Rates For Smokers

With life insurance, there are three different premium classifications: standard, preferred or preferred plus. By not smoking (or having not smoked for at least 5 years) and being in excellent health, you will be awarded with a lower life insurance rate because your chances of dying sooner are reduced. If for instance, you are classified as "normal healthy," meaning you haven't used nicotine in at least three years-then you would fall into a standard classification with a life insurance company. Under this standard classification you would pay a normal life insurance rate for your age, as opposed to a smoker, who would pay a higher insurance rate because they are tagged a potential risk. Something to think about the next time you light up a cigarette!

Are you considered a smoker?
In the world of life insurance, by answering "yes" on your application to the questions, "do you smoke?" or "do you consider yourself a smoker?," you would be considered a smoker. The same goes for answering yes to the questions of "have you used tobacco products, cigarettes, cigars or chewing tobacco within a specified time?" By insurance standards, even if you smoke socially or just once a year, you are considered a smoker. For the occasional smoker, you should answer the question as best as you see fit.

The cost of smoking
Research shows that smokers pay at least three times the premium of nonsmokers-which is what motivates many people to lie on their life insurance applications.

To lie, or not to lie
With life insurance, a nonsmoker's application is due to be reviewed more thoroughly than a smoker's life insurance policy, because the premiums are so different.

It is possible for smokers to "cheat" the system, because nicotine clears out of your system within 72 hours after smoking your last cigarette. Cotinine is the primary metabolite of nicotine, and the most common identifier of nicotine levels. If the urine test is given 72 hours after your last cigarette, the nicotine level may be low enough to escape detection. This is theoretically possible for even the heaviest of smokers.

You passed! Now what?
The policy between you and your insurance company is a legal contract, so it is important that you do not lie about your smoking habits. If you were caught lying during the underwriting process, your rates would be bumped up to a smoker's rate when your policy is approved. No insurance company is going to come right out and says they are going to drop your policy if they found out that you were lying. However, some life insurance companies will place random phone calls to applications who are questioned on a multitude of things, even smoking. The survey is designed to weed out liars by listening for inconsistencies in the applicants' answers.

What happens if you are caught?
The worst thing that could happen if you are caught is that your life insurance policy will be issued at a higher rate.

What if you start smoking after the policy is issued?
Many life insurance companies go by the "don't ask, don't tell" idea. It is important to be truthful when filling out your life insurance policy, but if you start smoking after it's issued, you are not required to tell your insurance company. If you die, and your life insurance policy labels you as a nonsmoker, when indeed you began smoking, your death benefit will not be jeopardized.

If you are interested in purchasing a life insurance policy or would just like to get some life insurance quotes, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class life insurance providers - helping you find the best life insurance policy for you and your family.

Confused About Buying Life Insurance? Here's A Few Questions And Answers To Clear Up Some Confusion

When it comes time to consider purchasing life insurance, many people get overwhelmed by questions or concerns they have. So to ease the minds of consumers who are ready to buy life insurance, Insurance.com has compiled a list of questions and answers to help make the process as painless as possible.

1. What's the best age to purchase life insurance?
   As a rule of thumb, the younger you are, the lower your life insurance premiums will be. That's because your risk of dying is lower than if you were in your 50's or 60's. It's also a smart idea to buy life insurance when you're younger because you are able to lock in to a lower interest rate.



2. Am I required to take a medical exam?
   For most life insurance policies, yes, you are required to take a medical exam at the time of application. This includes Supplemental Group Life (where you already have group life insurance) and also if you are requesting an amount of coverage that exceeds the standard level of coverage. However, if you are just purchasing a policy from a group health insurance or group life insurance plan, then you are not required to take a medical exam.



3. What happens with the results of my medical exam?
   The status of your health determines how you are categorized and what kind of life insurance rates you will be given by your insurance company. Your height, weight, health and whether or not you use nicotine are all taken into account. If you're curious why you were put into a certain classification, be sure to ask your insurance agent. He or she will give you an overview of what factors determined your insurance classification.


Classification status may be changed depending on a person's condition(s). An example of this is if the results of your first medical exam came back showing that you are 60 pounds overweight, a smoker and have an untreated heart condition. Your life insurance company will probably look down on your situation, ultimately putting you into a high-risk category where you will pay more for your premium. But if you take care of yourself, lose weight, kick the habit and get on a health regimen to take care of and control your heart condition, you can go back to your insurance agent in a couple years and request a revision in medical underwriting on your life insurance policy.


4. Is more than one policy too much?
   Not at all! If you have a permanent life insurance policy, then decide you want to take care of a short-term need, you are more than able to purchase and add on a supplemental term life policy. It should be noted if you purchase more life insurance than you need (or more than your expenses show you need), a medical exam or proof that you do not have an outstanding medical condition may be required by your life insurance agency.



5. Will having more than one policy cancel the other one out?
   Nope. If you have a credit life insurance policy and a whole life insurance policy, and you have paid all the necessary premiums, both policies will pay out according to the initial terms of the policy. So your credit life policy will pay off your credit card balance and your full death benefit will be paid out on your whole life policy.



6. What happens in the event of delinquent payments?
   Most policies give you a grace period of between 30 to 31 days to make a payment on your premium. Depending on your situation or reason for not paying, if you pay within that time frame, you will not be charged added interest; if you don't pay within that set-time frame; your policy will lapse.

7. What do I do if my policy lapses?
   Depending on what type of life insurance policy you have, your policy will either remain open, or end. By having a permanent life insurance policy, you are able to use money you saved up in your cash value to pay the premiums with. That advantage of this is that your policy won't be cancelled, but your cash value does deplete. If you have a term life insurance policy, and don't pay within the grace period, when your policy lapses, your coverage ends.



8. Is there a limit to the number of beneficiaries I name?
   As long as the people you choose to name in your life insurance policy have "insurable interest," you can name them as beneficiaries. Typically, a person just chooses his or her spouse, but it is possible to name more than one person.



9. Can I buy a life insurance policy on someone else?
   As stated above, if you have insurable interest in that person, generally meaning they are a close relative or friend; it is possible to buy a life insurance policy on them. The main stipulation when buying a policy on someone else is that they must know about it. You cannot take out a policy without their knowledge and prior consent.

When it comes to buying life insurance, if you are in doubt or confused, be sure to talk to your life insurance agent. Whether you have one question or 100, it's better to fully understand exactly what you are getting into now, rather than paying for it later. If you are interested in getting a life insurance quote, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class life insurance providers - helping you find the best life insurance coverage to take care of you, and your family.

How Your Use of Alcohol Affects Life Insurance Costs

The Society of Actuaries says that alcohol abuse may take off anywhere from 10 to 15 years of your life. But did you know it can also raise your life insurance premiums?

When applying for life insurance, you will have to answer questions on the application related to your alcohol use. There is no actual insurance ruling on "problem drinkers" or "alcoholics," but excessive drinking can lead to certain medical conditions which will ultimately affect what insurance rate a life insurance company assigns you. It's very rare that you will be denied coverage based on the answer you give, but it may prompt a further investigation into your life and use of alcohol.

Red flags
When a life insurance company is reviewing your application and records, there are a couple of things they look for that may "red flag " you as a risk:

• Liver enzymes.
  If you took a blood test, your life insurance company may test a sample for liver enzymes. If levels are elevated, it may mean there is an alcohol-related medical problem. Also, if you're not a drinker, elevated levels may signal there is something seriously wrong with your health. A decision for your life insurance will be postponed until you meet with a doctor and find the reason your liver is not functioning like normal.



• Drunk driving conviction.
  Even if it was your first time and an isolated incident, if you were cited with a drunk driving conviction, you might get a higher premium because it's a red flag for alcohol abuse. If you get a DWI, your life insurance company will be more prone to search through your record, to see if there is more than just the one cited incident.


• Attending physician's statement (APS).
  An APS is a statement that your insurance company requests from your doctor or physician regarding your health.

It is used to check for anything that shows alcohol is affecting your health. It may have the same information that you wrote down in your application, but if your doctor has concerns about your drinking, they will be included as well.

Survey says
The underwriter gets to make the decision on what happens if they notice one or more of the above red flags while reviewing your life insurance application. They can either:

• Issue the policy
• Offer you a more expensive life insurance policy (due to concerns on alcohol abuse or medical conditions)
• Decline your application
• Postpone your application
• Seek out further information from you and your doctor(s) and order a blood test to aid in the informational investigation

Admission to drinking
If you received a DWI a couple of years ago, and you take a life insurance medical exam now and it comes back with high enzyme results for your liver, or you admit to drinking heavily, your insurance premium may be highly unaffordable. If, on the other hand, you admit to drinking heavily, but the tests come back that you have normal liver functions and you have no current DWIs on record, you may get standard rates.

Getting lower premiums
Depending on what red flags your tests threw up, there are different things that you can do that will get your premiums lowered:

• Flat extra premium.
  Recent or multiple drunk driving convictions may lead to a flat extra premium being tacked on to your regular life insurance premium. These fees will typically disappear anywhere from two to five years after your last conviction



• Lessen your drinking.
  You don't have to quit entirely, but even reducing your drinking to a moderate level can help you get lower premiums. Be sure to document dates and visit your doctor so he/she can monitor your progress as well. You can approach your life insurance company over a period of six months to two years, and show them your proactive approach at bettering your health.
• Improve your health.
  As stated above, by lessening the amount you drink, getting your liver enzymes in check, and taking better care of your body and health, you should be able to get your life insurance premium lowered. If your insurance company is unwilling to lower your rates, don't be scared to shop around-there will be another underwriter out there who is willing to look at your health improvements and give you a better quote.

If you are interested in getting a life insurance quote, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class life insurance providers - helping you find the best life insurance coverage for you.

A Charitable Donation-Your Life Insurance Policy

If you're a big-hearted person who is always concerned about the welfare of others, you may be considering donating your life insurance to a charitable organization. If you do decide to go through with it, not only will you be helping others, but you will be helping to get yourself a tax-deduction as well.

If using your life insurance policy to make a charitable donation sounds like something you want to do, there are a few things you need to consider before signing your life insurance policy over:

• Be sure the charity you are considering is a non-profit organization that has a 501(c) (3) status
• Talk with someone there to be sure they will accept your life insurance donation (term life policies are the least favorable to charities, because they offer the most headaches and the least amount back when the term expires

Tax deduction
If you are donating to get a tax deduction, be sure to name the charity as both the beneficiary and the owner of the policy. If you name it as one or the other, you will not be able to deduct the donation proceeds from your taxes. The rule of thumb is if you donate a term life insurance policy, you can deduct the premium from your taxes, where as if you donate a whole life insurance policy, you can deduct the cost of the premiums and the cash value from your taxes.

Show of hands: Who wants your policy
Many charities appreciate the thought of a life insurance donation, but they prefer to have use of the donation immediately. Smaller and local charities don't have the resources that larger ones have and will more than likely welcome any contributions they can get, even if they have to wait for the payout. When it comes to larger organizations and universities, a team of money managers is on-hand to decide how to make the most off of your life insurance policy. By investing the money you spend on the policy, charities and organizations may be able to earn far more off the initial donation you give them.

An example of this is when a university accepts a whole life insurance donation ($400,000 death benefit with a $30,000 cash value), but then immediately cancels the policy and collects off it. Instead of letting time go on and allowing the death benefits to grow, university money managers may decide to invest the $30,000 in the stock market to get a quicker return from the donation.

If you are interested in getting a life insurance quote, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class life insurance providers - helping you find the best life insurance coverage for you and your family.

Federal vs. State Regulated Insurance: Which Is Better?

In an effort to streamline regulations that govern new coverage plans and update existing products when it comes to insurance, the American Council of Life Insurers (ACLI) is proposing to give insurance companies that do business in more than one state the option of operating under federal insurance regulations. The ACLI, along with other industry groups, insurance representatives and legislation, is working to create a new office in the National Treasury Department called the Office of National Insurers.

This new office would allow insurance companies to decide if they would rather operate under state or federal insurance regulation. It would also oversee consumer protection, regulation of premium rates and sales, as well as marketplace practice. Insurance companies would fund the office, and it is comparable to The Office of the Comptroller of the Currency (for banks) or the Office of Thrift Supervision (for credit unions or institutions for savings).

What areas the Office of National Insurers would cover
If an insurance company opted to operate under federal regulation, they would be required to join the guaranty association for each state they do business with. If the guaranty fund doesn't meet federal insurance requirements for coverage and benefits of a policyholder, a national guaranty association would then be established. "It may be easier for an insurance company to operate under federal regulation rather than state," says David Roush, CEO of Insurance.com. "This way, they won't have to tailor their services to be conducive to that of the state."

If a company prefers to stay regulated by the state, there are a few changes they would have to look at, such as, product regulation, producer licensing and market conduct.

Opposed to the Office of National Insurers
To some insurance companies, the idea of being federally regulated makes no sense, because not every state has the same insurance needs. For instance, Florida residents would be more apt to purchase hurricane insurance instead of earthquake insurance, where as California residents would be more prone to purchase earthquake insurance instead of hurricane insurance. Some state insurance officials argue that if states are going to have a need for more customized homeowners insurance plans, then it would make more sense to let regulation remain at a state level. Property and casualty insurance trade associations are the biggest opponents, because their main focus is to overhaul state regulations-and believe that insurance annuities and products really don't vary that much from state to state.

National Insurance Regulations
The National Association of Insurance Commissioners (NAIC) hopes to establish state task forces to regulate insurance companies. These task forces, acting without help from the federal government, would in effect be the beginning of a "national treatment" plan. Depending on the number of states an insurance company does business with; it will be regulated by up to a total of nine of those states.

The main insurance group that is pushing for federal insurance regulations is life insurance and annuities companies. In being federally regulated, these companies will then be able to be on the same level as banks-since banks can be chartered and regulated at both a state and federal level. Insurance companies and annuities companies feel that banks have an unfair advantage over them, because they can bypass the state-based regulations system - saving them time and money. As it is now, banks and security firms can get new products on the market faster than insurance companies and annuity companies (typically within 30-90 days)-whereas insurers have to wait between six to 18 months.

If you are interested in getting a life insurance quote or a homeowners insurance quote, visit Insurance.com. Here you will be able to evaluate multiple rates from best-in-class life insurance and homeowners insurance providers - helping you find the best life and homeowners insurance coverage for you.

How Much Coverage Does Guaranteed Issue Life Insurance Actually Guarantee You?

You see the fliers. You hear the radio spots. You see the commercials. The message is always the same; "Get approved for guaranteed issue life insurance with NO medical exams and NO medical questions!" But how much coverage does guaranteed issue life insurance actually guarantee you? Insurance.com tries to breakdown the idea of guaranteed issue life insurance, to help give you a better understanding of what it is, and what other alternative options are available.

Guaranteed issue life insurance is an insurance policy that will insure whoever applies for it, no questions asked. Sounds too good to be true, right? Well, it kind of is.

Typically, guaranteed issue life insurance is marketed towards senior citizens or those with medical problems. The catch for these kinds of policies is that you generally can't find coverage for over $20,000. Also, the cost of the premium tends to be higher because no medical exam or medical information is required.

When it's all said and done, it's possible that you will wind up paying more in premiums than your beneficiaries will see in death benefits. Definitely not a plus for those paying into the policy! And that is why this issue has drawn attention from State Insurance Regulators and the National Association of Insurance Commissioners (NAIC). To help fight this scam life insurance policy, a working group has been established to see what kinds of action should be taken against the companies selling these policies and what can be done to protect others from getting taken advantage of.

A disclosure is in the works, warning consumers of the possibility of paying more in premiums than the actual face value of the policy is worth. However, the NAIC needs to be cautious of how they step in, because saying too much could be a form of rate regulation, which is something that they are not prepared to do.

How the insurance company protects themselves
A graded benefits clause has been added to guaranteed issue life insurance policies to protect the insurance company from fraud. Graded benefits states that if the policyholder dies within two to three years of buying a guaranteed issue life insurance policy, a refund of the policy's premiums, plus interest, will be paid instead of paying out death benefits. This in effect prevents people on their deathbeds from signing up for a policy, just to gain some extra funds. A company may pay out full death benefits in the event of an accidental death - but remember, the definition of what is accidental is very limited, and this feature is only offered through certain companies.

Insurance companies base your rates on your age and medical information, so if you can buy life insurance after going through a medical exam and answering medical questions, it would be more cost effective to purchase through those means, rather than with guaranteed issue. Not to mention that you will probably pay less and have better coverage.

If you are interested in getting a life insurance quote or learning more about life insurance itself, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class life insurance providers - helping you find the best life insurance coverage for you and your family.

Will Mental Illness Affect Your Life Insurance Cost?

If you're considering getting life insurance, but you're worried that a history of mental illness will hinder your search and you'll be stuck paying high premiums, worry no more. Insurance companies are generally most concerned if your condition will affect your life expectancy and make you a high death risk. If you took Xanax for anxiety or anti-depressants after a tragedy, your life insurance company probably won't view you as a significant risk.

Times of reactive depression-depression that is triggered by a tragedy-won't affect the cost of your life insurance if you can show your insurance agency that you took the steps to get better. By showing them your medical records and being honest about your condition, you'll be more likely to get better rates and premiums. "If you hint at a problem, but don't say whether you are taking care of it or have been treated for it, the life insurance companies won't know what to think," says David Roush, CEO of Insurance.com. "The less they know about your situation, the higher the risk they will see you as," says Roush.

Even when it comes to more serious cases of clinical depression, like manic depression or bi-polar disorder, life insurance companies won't necessarily give you a higher rate. If you are taking care of the problem, and they see that you are in control of the situation, you won't have as hard a time finding affordable life insurance, as you would if you left your disease untreated.

When to apply
If you are diagnosed with a mental illness and are getting treatment, it would be wise to wait a couple months before applying for life insurance. In doing so, you are giving your body adequate time to adjust to your medication and treatment.

What your insurance agent will want to know
Life insurance companies will want to know when you were diagnosed, who your doctor is, what kind of treatment you received and how you are progressing with your treatments.

Suicide red flag
If your medical history shows one or more suicide attempts, a life insurance company will want to see proof that you are receiving full treatment before they will consider issuing you a policy. With a suicidal history, most companies will wait one to two years before issuing you a life insurance policy. It will probably be more expensive the first few years, and may include a "suicide clause" that denies death benefits to be paid out if the insured dies from suicide within the first two years.

If an applicant is hospitalized for suicidal tendencies or for attempting suicide, they are considered a higher risk than a person who has suicidal tendencies, but is able to function in society, goes to work and has been taking medication to treat the illness. Again, by showing your life insurance company that you are taking care of yourself and your condition, they will be more open to consider issuing you a lower-rated premium.

If you are interested in getting a life insurance quote, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class life insurance providers - helping you find the best life insurance coverage for you and your family.

What Do You Know About Life Insurance Settlements?

You may have heard of viatical settlements, where people who are terminally ill can sell their life insurance policy to an investor for a portion of the policy's face value, but did you know that even if you're not terminally ill, you can still sell your policy?

Life insurance settlements or "senior settlements" are contracts allowing a policyholder who is not terminally ill to sell his or her own policy. By selling your life insurance policy, you will not get back the amount that your death benefits would have been worth, but an investor will pay you a portion of the policy's face value. The way it works is that the investor or company that buys your policy will continue to make payments on your life insurance policy, and once you have passed, the investor or company will receive the full amount of your death benefits.

Is this something new?
Actually, no. Life insurance settlements have been around for a while, but many policyholders and consumers don't even know this option exists. That's why the Life Settlement Coalition was formed. The Life Settlement Coalition is meant to educate consumers and insurance companies about life settlements. The Coalition is made up of experienced brokers and life settlement providers whose main goal is to bring to the table the option of a life insurance settlement to life insurance policyholders.

Is it the same as surrendering a policy?
No. When you surrender your life insurance policy for the cash value, all you are doing is selling your policy back to the insurance company. Whether you're interested in either surrendering your policy or getting a life settlement contract, it is important to ask your broker or insurance agent about both options first. You may get a substantially higher amount of money back from a life settlement contract, compared to surrendering your policy. Life insurance experts say that up to 25 percent of life settlement polices cash out higher than the surrender value.

If you are interested in getting a life insurance quote, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class life insurance providers - helping you find the best life insurance coverage for you and your family.

Is It Possible To Buy Affordable Life Insurance After A Heart Attack?

So you've just recovered from a heart attack and you hope to find affordable life insurance. The application for life insurance has a question regarding if you have been treated for heart disease or a heart attack. How do you answer? Do you lie and say no? Or do you say yes, and chance getting denied or stuck paying a higher life insurance premium? Well if you decided to answer honestly and mark yes, you may be in luck.

Depending on how severe your heart attack was, and how severe your heart disease is, you may be able to get affordable life insurance that won't cost an arm and a leg. Also, by not lying, you don't have to worry that you will be caught and have your life insurance premium automatically increased and be forced to pay retroactive fees.

"Though heart disease may signal a red flag for life insurance companies, it doesn't necessarily mean a customer will have to pay more," says Dave Roush, CEO of Insurance.com. "By taking the proper steps to treat heart disease, a customer can quite possibly qualify for a standard life insurance rate," says Roush. "With the advances in medical technology and testing, it is becoming easier and easier to give predictable life expectancy rates for those who are suffering with heart disease."

When to strike
It may seem like a good idea to apply for life insurance the moment you realize you really need it, but financially, it isn't always the smartest move.

Life insurance companies don't look favorably on applications that are submitted right after a heart attack, and the premium for a policy issued after a condition like that, will likely be high. The best thing you can do, for your pocketbook, as well as for yourself, is to wait to apply for life insurance. By waiting a year or two, you are giving your body ample time to heal as well as giving yourself time to adjust to any medications or new-lifestyle changes you may be instructed to do by your doctor. By waiting, you are also showing the life insurance company that your condition has been stabilized and you took the appropriate steps to make your overall health better.

Document your progress
Be sure to document any and all progress that you've made. By having this detailed in your medical files, life insurance providers may be able to issue you a lower premium. Also, when applying for life insurance, if an underwriter sees that you are forthcoming about your heart disease and you have listed all the things you've done to keep it under control, you will be more likely to receive an affordable life insurance plan. By telling a life insurance company exactly what happened and what steps you've taken to correct or better yourself, you are showing them you have nothing to hide, and this can ultimately save you money.

If you are interested in receiving a life insurance quote, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class life insurance providers - helping you find the best life insurance coverage for you and your budget.

Life Insurance for Your Child

When it comes to a child’s future, parents and grandparents like to plan high and think big. Many buy extra life insurance for themselves, homeowners and personal insurance to cover assets, and begin a college fund, but have you ever considered buying life insurance for your child?

Life insurance is meant to provide income where income was lost in the event of a death, and since children don’t typically bring in money, you may be asking why they would need life insurance, right? Well, the best reason to have a child insured is in the event of their death. The child’s life insurance policy will cover final expenses, such as the funeral and cemetery costs.

Children’s life insurance may not be the right kind of insurance for every family, and if that’s the case for you, don’t worry, you can always look into getting a term life insurance policy with a small face value.

When children come of age, most policies give them the choice of purchasing additional insurance. If they do not wish to continue with that policy, they may set out and get their own, it’s actually quite easy for young adults to obtain good life insurance at a reasonable rate.

If you are interested in getting a life insurance quote for you or your child, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class life insurance providers – helping you find the best life insurance coverage for you and your family.

Term Life Insurance vs. Permanent Life Insurance: Is Cash Value the Best Value?

When in the market for life insurance, there are two types you can shop around for: term life insurance or permanent life insurance. The main “superficial” difference between the two is that term life insurance covers you for a set period of time, whereas permanent life insurance covers you for the remainder of your life. Though permanent life insurance costs considerably more than term life insurance, it is just because when taking a closer look at each, permanent life insurance gives your policy the chance to increase its cash value, which ultimately means a better value and more money for your beneficiaries when you die.

Which is best for you?
Permanent life insurance may offer you a better payout in the long-run, but what if your financial obligations are only short-term? When you really just want the most amount of coverage for the least amount of money, it’s better to purchase a term life insurance policy. The money you save from the premiums in term life insurance can be invested in stocks, mutual funds, or bonds.

The feature that makes permanent life insurance so desirable is its ability to gain cash value. A portion of the money you pay into your premium goes into a cash account that grows over time. “With any kind of insurance you are considering, it’s important to do research about the company you may be purchasing your policy through,” says David Roush, CEO of Insurance.com. “You’ll also want to be sure you fully understand how it works and that there are no hidden fees that may get you in the end,” Roush says.

How does cash value work?
Cash value accumulates very quickly in the beginning, because you are younger and your mortality rate is lower. But as time goes on, your cash value begins to slow down, not from anything that you’ve done, but because of time running its course on you and your body. The chances of you dying increase every year, which in turn makes the cost of insuring you go up, as well as increasing your mortality expense.

The mortality expense (a certain amount of money the insurance company takes out of your payments per year to pay for insurance costs and processing) typically doubles every decade. The more they take out, the less that goes into your cash value. Luckily, your premiums don’t increase because the life insurance company has taken your mortality into consideration. The only time your premium could possibly go up is if you have a universal life insurance policy with flexible payments—if you pay too little in the beginning, you may get hit with high bills later on.

On the average, cash value can build between four to six percent each year. If your money is in stocks, bonds, or mutual funds, you are at the mercy of the economy. At the end of the year, your cash value may be higher than expected, or if investments aren’t performing well, it may be considerably lower. When you die, unless you already specified that you want your cash value tied into your death benefits, your beneficiaries will not get the cash value you accumulated. So be sure to read all the fine print when applying for permanent life insurance, just to be sure there are no surprises when you die.

Is cash value a liquid asset?
Though cash value is like a liquid asset because you have the ability to withdraw money, you will be penalized and charged a fee if you decide to withdraw funds. A different option (and one that is not recommended) is partial withdrawal. It should be noted though, by taking out money this way, your death benefit gets reduced on a dollar-to-dollar basis.

A very common way people take money out of their cash value is by taking out a loan against it. You don’t have to pay it back, but the initial amount, plus the seven to eight percent interest that is tacked onto it, will be taken out of your death benefit when you die. This may short-change your beneficiaries depending on how much you owed.

Another thing to keep in mind is when you withdraw funds from your cash value, it may become taxable. If it is worth more than what you have paid on your life insurance policy, it may be taxed. Also, if you take out a loan against it, and you surrender the policy or it lapses before you pay it back, you will be taxed on the difference of the loan amount and the total amount of the premium.

Permanent life insurance and cash value do take a while to accumulate, so if you’re not very concerned about the distant future, a term life policy will be a better option.

When is whole life insurance the best bet?
If you need life insurance for the rest of your life, and you have a high income, a whole life insurance plan may be the right decision for you. Many older people like whole life insurance policies, because they use their cash value to pay off their premiums. Their life insurance stays active and their death benefits are reduced, but the amount left in the death benefits can be used by beneficiaries to pay off their estate or taxes that have been incurred.

Making the choice
“The choice is yours as to what kind of life insurance you should purchase,” says Roush, “deciding factors depend on what kind of time frame you’re looking at, and how much you are willing to pay in insurance premiums.”

The Higher Your Risk Factors for Heart Disease, The Higher Your Life Insurance Premiums

If you’re applying for life insurance, but have high blood pressure, high cholesterol or other risk factors for cardiovascular diseases, you may be worried that your premiums are going to be outrageous. Life insurance companies will be looking at what risk factors you pose, but they will also be taking into account your height, weight, age and smoking status. The more risk factors for heart disease that you have, the higher your life insurance premiums will be.

Just because you have high blood pressure, for example, doesn’t mean you can’t be approved for a “preferred” premium rate or higher. Typically when you show signs of two or more risk factors, that’s when your rates would jump up. But even in instances like that, if you show your life insurance company that you are taking care of your situation by going to the doctor, taking your medications as directed, and working on getting your health as good as it can be, they may cut you a break and knock down your rates even more.

Blood pressure and cholesterol levels
A healthy life-style is said to be one that keeps your total cholesterol level below 200, with your low-density lipoprotein (LDL) cholesterol below 100. Blood pressure should be kept below 140 over 90, because anything higher is considered low-level hypertension. Your age and gender are also big factors when it comes to determining acceptable blood pressure and cholesterol—and your insurance company typically has a chart that they compare your age, gender, blood pressure and cholesterol level to, when deciding on how much to insure you at.

The red flag
If you are diagnosed with high blood pressure or cholesterol, and your doctor prescribes medication, be sure to take it and keep up with it. If you follow orders and try to better your health, your insurer shouldn’t charge you higher rates. However, if you don’t follow doctor’s orders, you will be penalized and charged a higher premium for life insurance. Also, if your doctor warns you about the cardiovascular disease risk factors you pose, and you ignore them and proceed to take the life insurance exam, the results are not going to change, and you will be charged a higher premium as well.

If your high cholesterol or blood pressure isn’t serious enough for you to be prescribed medications because you have it under control, your life insurance company will not charge you higher premiums—this is just another way that keeping up with your health can save you money.

Telling the truth
If you are on medication to control high blood pressure or cholesterol, and you apply for life insurance, don’t be afraid to tell the truth that you are taking something. Most insurance companies care more about the level you are at, rather than what you’ve done to get it to that point. Also, since medications on the market these days have lower-negative side-effects, insurance agencies are more content knowing you are taking them. This is because if you aren’t suffering any bad side-effects, you will be more prone to remain on them, ultimately making your risks for heart disease go down.

Life insurance exam results
In most cases, to get life insurance you are required to take a medical exam. The results of the life insurance medical exam may or may not come as a shock to many, due to the irregularity of doctor’s visits. David Roush, CEO of Insurance.com says, “A lot of people don’t have a clue that there is something wrong with them. That’s why these exams are important, not only for obtaining the proper life insurance category, but also for opening their eyes to the potential risks for cardiovascular disease that they may pose.”

If your exam uncovers an unfavorable combination of risk factors, your insurance agent will more than likely still offer you a standard premium—but that might be higher than what they had originally quoted you at pre-exam. A letter, including your medical information, will be sent to you explaining why you were placed into the category that you were. If you’re unhappy with where you were placed, if you take those results to your doctor, and make an effort to get those risk factors under control, you will then be able to petition your life insurance agency to get a lower premium.

If you are interested in getting a life insurance quote, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class life insurance providers – helping you find the best life insurance coverage for you and your family.

The Truth Behind Viatical Settlement Contracts

Viatical settlement contracts allow a person to sell their life insurance policy to a third party in exchange for a reduced amount of its face value. The amount you get back is dependent on your health, age, number of years your policy is in force, and death benefit. A major concern these days is that many life insurance settlement companies purposely try and mislead investors about what kind of return they should expect. They stretch the truth and play with numbers to make viatical settlement contracts sound like the best thing since sliced bread, but really, they are a gamble where you may risk your retirement nest egg on the odds of someone’s life expectancy.

Viatical settlement contracts are quite risky, so if you are considering purchasing a contract, you should approach it with caution. The U.S. Securities and Exchange Commission (SEC), whose mission statement says it functions to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation, cannot regulate viaticals because they are not considered securities. States are working together more and more in an attempt to address the scam-artist issue when it comes to viatical settlement contracts, and many require viatical companies to be licensed.

One state that has taken a big step against fraudulent viatical contract activities is Florida. In Florida, viatical companies cannot “guarantee” investment returns, brokers are required to be licensed as life insurance agents, as well as to disclose transaction compensation, and if the company is in violation of viatical settlement provisions, they will be penalized.

What is being done to stop fraudulent viatical settlement companies
In an attempt to stop corruption, the SEC has a few suggestions when it comes to requirements for viatical companies:

• Make a full disclosure of all products
• Make a full disclosure of all their companies
• Financial statements for the company and the owners
• State risks associated with viaticals
• Make information available to investors

The Schemes

• Wet Ink. A 'wet ink' scheme is when a healthy person is persuaded by a viatical settlement company to apply for life insurance, then turns around, sells and receives a lump-sum payment. The policy is then resold to awaiting-investors. The ink is barely even dry before it’s sold off again. Wet ink schemes are another way to stimulate insurance fraud, as well as undermining the insurable interest rule.
• Clean Sheeting. 'Clean sheeting' is a term used to refer to terminally ill people who lie about their medical history to get approved for a life insurance policy. They apply for an amount barely under the limit before a medical exam is required and then once approved, sell the policy off.

Viatical settlement contracts in short
There is no guarantee when it comes to viatical settlement contracts. There are no guarantees on how much you will get back, not many regulations on them and also no data available to track and display the investment performance. A lack of control is what makes these types of investments so faulty—since some states have actual security regulators overseeing viaticals, and others just have the insurance department. As with all kinds of insurances, be sure to read the fine print and understand everything before signing off.

If you are interested in getting a life insurance quote, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class life insurance providers – helping you find the best life insurance coverage for you and your family.

Things To Consider Before You Sell Your Life Insurance Policy

Everything has a price and when you need money, selling your life insurance may sound like a good idea—especially if you are extremely sick because you can generally get anywhere from 50 to 80 percent back off the face value. However, although it may sound like a viable option, it’s important to keep in mind why you bought the life insurance policy in the first place!

Things to consider
When a viatical company is interested in buying your life insurance policy and they know you are ill, they will demand access to your medical records. Ultimately, the buyer makes the most money off of your policy the longer you are expected to live. Any and all details about your medical history and condition will be run over with a fine-toothed comb. Don't forget, they will keep track of your progress, many times using little to no discretion, by calling you on the phone, mailing out postcards, or getting in contact with you through a pre-determined means of communication. To sum it up, anyone (creditors included) will have open access to view your transaction.

Below are tips to consider before you sell your life insurance policy:

• Check into alternatives. If you need cash quickly, there may be other ways to get it, without having to sell your life insurance policy to a viatical settlement company. Check with your current life insurance company and see if they offer an accelerated death benefit. You may be charged a fee for acting on it, but at least you will be doing business with a company you know and trust.
• Talk it over with your beneficiaries. It’s a good idea to discuss your thoughts on selling your life insurance with your beneficiaries. If they are depending on your death benefits to pay for the cost of your outstanding medical treatment, they will need to know.
• Consult your accountant, financial planner or attorney. There are many financial aspects you should find out before selling your life insurance policy. Ask if the proceeds will be tax-free and what kind of impact it will have on probate and estate settlements. According to the Health Insurance Portability and Accountability Act, if the insured is terminally ill the settlement is not subject to federal income taxes; but if the insured is mildly ill or healthy, the settlement will be taxed as a capital gain.
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• Check on viatical licensing or regulations. Your state insurance department will be able to tell you what laws there are for viatical companies or viatical brokers, such as the requirement for them to be licensed.
• Affects on public assistance. Public assistance is typically based on financial need, so if you go through a viatical life settlement, you may hinder the amount of assistance you get, as well as opening yourself up to creditors—because viatical life settlement proceeds are fair game in the financial world.
• Shop around for viatical companies. Companies differ on the amount of payout they offer for viatical life settlements, so be sure to shop around and compare. The Viatical Association of America recommends getting at least three different offers, so you can compare and see what the best and most beneficial payout will be.
• Escrow accounts. For legitimate viatical companies, getting a request to have an escrow account opened and ready when you accept the settlement is no big deal. But if the company you are going to sell your account to denies your request, it is right to assume that they may be fraudulent—because the denial of the account is a red flag that the money may not be there to cover your offer.

Is Funeral Insurance for You?

It is said that the hardest thing about life, is death. The only thing harder than that may be talking to your loved ones about your death, and planning out the way you'd like to have your funeral. C'est la vie, death is a part of life, but wouldn't it be great if there was some kind of coverage, or some way to pre-pay and pre-plan your funeral arrangements? Luckily, there is! It's called "pre-need insurance," also known as funeral or burial insurance, and it is meant to help you plan out your funeral and pay for it in advance, so the burden isn't left to your family or beneficiaries.

With the ever-rising cost of funeral arrangements and services, it's good to have money set aside to take care of the bills once your time comes. Without funeral insurance, your beneficiaries may get stuck paying the price and having to use money from your life insurance policy or even out of their own pocket.

How funeral insurance works
There is no standard plan when it comes to funeral insurance, and it is totally dependent on the person looking to be insured. The sky is the limit when it comes to your funeral insurance policy, unless there is a dollar amount cap, which won't cover anything above a set limit. A life insurance agent or funeral director will write the policy, and what it covers, such as:

• Burial plot
• Digging and filling the grave
• Grave marker
• Casket or urn
• Cremation
• Embalming
• Grave Liner or Burial Vault
• Hearse and other funeral vehicles
• Flowers

Funeral insurance premiums
Generally, you must buy a funeral insurance policy in one, lump-sum payment. After that, depending on what options you have in your policy, you may be able to choose from a payment plan ranging from three to 10 years.

Your coverage is also dependent on what kind of premium you have, such as:

• Single-premium policy.
  Once you pay the lump-sum payment, you have immediate coverage for the full death benefit



• Graded death benefit.
  This means the coverage amount increases over time. If you choose a five year payment policy, you may have a death benefit that is 30 percent of the face amount in the first year, 70 percent the next year, and 100 percent from there-on-out

Age is another factor when it comes to premiums, and you may only be offered a single-premium if you are over 70. It's all at the discretion of your life insurance agency.

Tips when considering funeral insurance

• Know your state's laws on pre-need insurance
• Discuss a burial policy with your family and lawyer
• Get all agreements in writing
• Research before agreeing to go with one company
• Verify all licenses (insurance company, agent, and funeral director)
• A written list of available goods and services is required to be given to you by the funeral home (a Federal Trade Commission requirement)
• Be sure all documents are filled out in your presence. Never sign anything that has been altered or done without your consent
• Ask your funeral director if they offer price guarantees, and if they don't, find out what their policy is
• If your state has a "pre-lock law" use it! This entitles you to review your policy in its entirety before you get locked into it
• Check if funeral arrangements can be moved at any time to any funeral home-in case you move away after you buy your pre-need insurance
• Be sure you have (in writing) that the services, arrangements and products that were sold to you or that you are agreeing upon are included in your pre-need plan.
• Request a yearly statement (if not more) that details your account and its status
• Find out if there is a policy cancellation fee or if you can be refunded for services and products if you do decide to cancel

Use Caution
Many states are giving consumers added protection by enforcing laws that will protect their rights when it comes to pre-paying for funeral expenses. Some states ban the sale of new burial insurance policies, because it was noted that many insureds paid more in premiums than they got back in their death benefit. Others, like New Jersey, enforced a Preneed Act, which prohibits checks to purchase burial insurance to be made out to the funeral home-they must be made out to the life insurance company. Also, anything that is paid to the funeral home ahead of time (for preneed) is still the insured's, and must be available to them at any time, no questions asked.

If you're interested in finding out if funeral insurance is for you, or if you're interested in getting a life insurance quote, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class life insurance providers-helping you find the best life insurance coverage for you and your family.

Group Life Insurance And Your Small Business

In order to retain hard-working, top-notch employees, it is important to offer a variety of benefits to help sweeten the pot and entice them to stay at your business. That is why offering group life insurance to your small business is a good idea. It's not only a good supplement to existing individual life insurance, but it is also cost-effective and inexpensive when compared to an employer paying for medical or a retirement plan.

How to start
Group life insurance isn't generally offered to companies with less than 10 or 15 employees, and when it is offered, it is offered as a part of a "menu" plan. This just means that there are different employee benefits, such as group health, group life, or group long-term or short-term disability that employees may be able to add on to their current group health insurance plan.

An independent insurance broker is typically used with businesses consisting of less than 1000 employees. This broker may recommend group health insurance coverage that provides a list of prices from several different companies. On the average, most employers will purchase all their group insurance products - health, life and disability - through that one broker. Once purchased, the employer will then pay a set amount per $1,000 worth of group life insurance.

For example, if an employer pays 25 cents for every $1,000 of a $50,000 death benefit, it will cost the employer $10.25/month for that employee ($.25 x 50 = $10.25).

What group life insurance plan to offer your employees
On average, small policies are offered on a guaranteed issue basis, which means no medical exam is required from any of the employees that are insured. It is important that employees understand that group life insurance isn't meant to take the place of individual life insurance policies, because group plans generally only cover anywhere from $10,000 to one year's salary. One year's salary isn't enough to support an employee's dependents in the event of their death.

The price of a group insurance package is determined by the number of employees, their gender, average age and type of business that you operate. The more hazardous or "dangerous" the job, the more a company will pay per $1,000 worth of group life coverage. Also, the group's rate is not affected if an employee suffers a severe medical condition, but continues to work. After the policy has been issued, an employee will remain covered in the event they need to take a leave of absence. However, if the employee is on disability or takes a leave of absence before the group life insurance policy is issued, they will not be covered under the plan until they return to work.

Reevaluating your small business' group life insurance plan
Better rates are generally given to larger employers because of the amount they collect in premium, versus that of smaller employers who don't collect as much. Tiered life insurance policies also typically remain with larger employees, due to the fact that they are better able to afford them. Regardless of the size of your company, it is important to reevaluate your group insurance plan regularly.

A group life insurance plan should be reevaluated and reassessed when your company grows significantly, hires executives with larger salaries, increases in number of employees, the demographics of the employee population changes, or when it improves previously offered benefits. By checking back with your broker as your business grows, you may be eligible for a lower life insurance rate.

When looking for a new or different insurance plan, there are a few different options that an employer can look towards. The first and most basic life insurance plan typically covers one year's worth of salary. The next step up would be to expand your benefits with a plan, such as a group universal life insurance plan, which can offer two to three times an employee's salary, as well as offering a portability feature which allows the employee to remain covered after they leave or retire. A group universal life insurance helps build cash towards future premiums, but is generally offered by companies with over 1000 employees, because the cash value account must be individually managed. Also, the employees are permitted to pay in as much, or as little, as they want.

The classification of the employee is also a determining factor when thinking about separate group life insurance plans. For example, an employer may choose to do a flat death benefit payout for certain workers, where as those who hold higher positions (i.e. managers, supervisors, etc.) receive benefits equal to one to three times their salaries.

Family coverage
Spouses and children may be covered in certain extended group life insurance plans, where the company may offer a set payout to a spouse, then a certain set payout to each of the dependent children. When an employer begins offering expanded benefits, the expenses may be passed directly to the employee. An employer can offer so much of a certain benefit, but if an employee would like to add more to it, they may have to start paying for it. Also, blood and urine samples will be taken, tests for whether or not the employee is a smoker or not will be run, and a medical exam will need to be done to ensure the recipient will be covered.

Also, when it comes to offering voluntary group life insurance plans, it is a good idea to research insurers who offer the features that you would like to provide. These may include portability policies, accelerated death benefits, or even a waiver of premium benefits.

What are qualities to look for in a life insurance company?

• Financial strength-When an life insurance company has a good-to-great financial status, it is the best indicator of its ability to pay claims
• What their expertise area is-If an insurance company mainly deals with larger companies, and your company only has 20 employees, it may not be the right one for you. It is important to find an insurance company that deals with companies of your size, so you will get the best rates and premiums available
• Features-Look for insurers who offer the type of group life insurance you'd like to purchase, as well at what features you would like to offer

If you are interested in getting an individual life insurance coverage quote, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class life insurance providers-helping find the best life insurance coverage for your employees and yourself.

The 10 Most Dangerous Foods to Eat While Driving

Drivers who are drinking and stuffing their faces while on the road are a serious problem.

Restraining Orders for Food?
Hagerty Classic Insurance, a provider of classic-car insurance, began to look more closely at this issue after a DMV check on an insurance applicant turned up a "restraining order" against anything edible within his reach while driving. The man apparently had several previous accidents related to food on his driving record.

Eating while you drive is one of the most distracting things you can do, according to several recent surveys by insurance companies and data from the National Highway Traffic Safety Administration (NHTSA).

Though NHTSA doesn't track specific information on food-related distraction, it does track general distractions and, as of 2000, distractions in cars were considered the cause in 25 percent of police-reported motor vehicle crashes. According to NHTSA, "distraction was most likely to be involved in rear-end collisions in which the lead vehicle was stopped and in single-vehicle crashes. "What makes distraction such a problem is the confluence of the distraction, such as eating, and the unexpected occurrence of events on the road, such as a sharp curve or a driver stopped ahead of you.

In looking at the insurer's history of claims, Hagerty found that most drivers had problems in the morning on the way to work, when spills were likely to mar their work attire. That made drivers more anxious to clean up spills while still trying to drive, and didn't necessarily make them more likely to pull off the road to deal with the mess.

"It really seems it's more the spill than the eating," says Hagerty. "Anything that drips is probably not a good idea." Hagerty and his staff decided to do a study of their own to see which foods are the worst offenders, and although Hagerty says he ruined a few shirts in the process, they found some interesting information.

Coffee Anyone?
Coffee is the top offender because of its tendency to spill. Even in cups with travel lids, somehow the liquid finds its way out of the opening each time you hit a bump, says Hagerty. "I've certainly spilled my share of coffee while I'm driving, and it's not when I'm trying to drink, it's when I hit bumps in the road." And if the stain on your clothes isn't bad enough, the high temperature of most coffees can cause serious burns and distract drivers who are trying to drive while in pain.

The top 10 food offenders in a car are:

1. Coffee — It always finds a way out of the cup.
2. Hot soup — Many people drink it like coffee and run the same risks.
3. Tacos — "A food that can disassemble itself without much help, leaving your car looking like a salad bar," says Hagerty.
4. Chili — The potential for drips and slops down the front of clothing is significant.
5. Hamburgers — From the grease of the burger to ketchup and mustard, it could all end up on your hands, your clothes, and the steering wheel.
6. Barbecued food — The same issue arises for barbecued foods as for hamburgers. The sauce may be great, but if you have to lick your fingers, the sauce will end up on whatever you touch.
7. Fried chicken — Another food that leaves you with greasy hands, which means constantly wiping them on something, even if it's your shirt. It also makes the steering wheel greasy.
8. Jelly or cream-filled donuts — Has anyone eaten a jelly donut without some of the center oozing out?
9. Soft drinks — Not only are they subject to spills, but also the carbonated kind can fizz as you're drinking if you make sudden movements, and most of us remember cola fizz in the nose from childhood. It isn't any more pleasant now.
10. Chocolate — Like greasy foods, chocolate coats the fingers as it melts against the warmth of your skin, and leaves its mark anywhere you touch. As you try to clean it off the steering wheel you're likely to end up swerving.

Insurance companies such as State Farm Insurance and Allstate Insurance Co. don't track specific information on eating and driving, because it's too difficult to break it down. State Farm says the company is aware it is a problem. The difficulty in pinning down the exact cause of accidents lies in separating distractions such as cell phone use, talking to passengers, reading the newspaper, and eating, all of which drivers engage in while also trying to operate a two-ton piece of machinery.

Hagerty found that driving a standard vehicle with a stick shift while eating can double the potential for an accident, since one hand is holding food and the other hand is shifting. That leaves no hands for steering, says Hagerty. Even more dangerous is using a cell phone, eating, and driving. "When the phone rings, the driving distraction increases significantly and, in a rush to answer, drivers forget they're driving," says Hagerty.

How widespread is this food problem?
According to a survey conducted by the Response Insurance Agency in 2000, eating while driving ranks as the No. 2 driving distraction. Fifty-seven percent of drivers surveyed say they eat and drive. The No. 1 distraction noted by 62 percent of surveyed drivers is tuning the radio, and No. 3, noted by 56 percent of drivers, is turning around to talk with passengers. Interestingly, only 29 percent of drivers surveyed listed talking on a cell phone as a distracting activity in which they engage.

In a 2001 survey of 1,000 drivers for Exxon, more than 70 percent of drivers say they eat while driving, up from 58 percent in 1995. Eighty-three percent say they drink coffee, juice, or soda while driving and a few even say they'd love a microwave in their car.

Courtesy of Insure.com