Looking for a lost life insurance policy? Tips to help you find it.

Have you ever wondered if you were entitled to the benefits from a deceased relative's life insurance policy or do you remember a great uncle telling you that you would be entitled to benefits from his life insurance policy?

If a loved one owned a life insurance policy at their death and you are a named beneficiary, chances are you are entitled to receive a benefit. But what happens if you are uncertain if you were named the beneficiary, are unable to locate the policy, or are uncertain if the policy even still exists? Many life insurance policies go unclaimed for just these reasons.

It may take some digging and some detective work but the following tips may help you find that lost life insurance policy; and, if you are not the executor or executrix of the deceased’s estate, obviously you will need to enlist this person’s help.

1. Check storage areas.

   Check safety deposit boxes, strong boxes, filing cabinets and other storage places to see if a copy of the insurance policy was left there.




2. Search for any insurance-related payments.

   Look for any insurance-related payments in bank statements, bankbooks, checkbooks, or credit card statements that could provide you with insight about insurance premium payments and the insurance company they were paid to.




3. Search through the mail.

   Look through the deceased's mail for old insurance premium bills and insurance policy notices that may have come through the mail in the last few years.




4. Review the deceased's income tax returns.

   Review the deceased's income tax return for any interest income and interest expenses paid to life insurance companies. Life insurance companies pay interest on accumulations on permanent policies and charge interest on insurance policy loans.




5. Information about other policies.

   If you come across any other life insurance policy the deceased may have had, even if it was no longer in effect, ask the insurer for a copy of the application form. Typically, life insurance applicants need to disclose details about any other life insurance policies in place at the time of their application.




6. Contact anyone with information about the deceased's finances.

   Try to get in contact with current and prior financial advisors and agents or companies that might know about the life insurance policy of the deceased (like lawyers, accountants, investment advisors, insurance brokers and credit card companies). Sometimes policies are stored in their files.


It could also be useful to send letters to some of the main life insurance companies, asking them if the deceased had a life insurance policy with them.


7. Find out if the deceased was part of a group plan.

   Contact previous employers, alumni groups, professional associations or automobile associations to see if the policyholder had group insurance. They may have continued with their life insurance under this policy or purchased additional/supplemental life insurance benefits through their group policy.




8. Canadian Life and Health Insurance OmbudService.

   If you are unable to locate the life insurance policy using the steps listed above, you can contact the Canadian Life and Health Insurance OmbudService (CLHIO). The CLHIO is an independent service that assists consumers with concerns about life and health insurance products, and its participating companies represent the majority of life insurance companies doing business in Canada.
   
   CLHIO will require specific, relevant information about the deceased and then will send this information to all of its member companies. If any member company has a policy still in effect, they will contact you directly. The CLHIO has 2 basic requirements before undertaking a policy search: (1) There must be a reasonable basis to believe that a policy does exist and (2) Specific factual information about the deceased is available.




9. After all that searching, if you still cannot find the insurance policy...

   If all that searching and digging doesn't help you to find your policy, there are companies that can help you locate the lost policy. They act as "insurance policy locators". These companies are online registries and reminder services developed to ensure that named life insurance beneficiaries actually get the life insurance benefits for which they are entitled to receive. Keep in mind however; these services are not likely to be free of charge.

Ten things you should know about life insurance

1. Virtually everyone should have life insurance

   Only a few people don’t need life insurance; most people need it because they do not have the funds readily available to cover all debts and funeral expenses, they want to offset the loss of their income to their spouse and/or children, or simply because they want to leave additional money to extended family or a charity.





2. Get the most life insurance coverage at the lowest cost

   Of the many life insurance products out there, Term life insurance typically is known to offer you the most coverage for the least amount of money; and although there is no investment or saving component, there are many who would tell you to "Buy term, and invest the difference."
   





3. Avoid guaranteed issue life insurance policies, if you are healthy

   Guaranteed issue life insurance policies typically offer smaller insurance amounts and can be purchased without a medical exam. A guaranteed issue policy is available to everyone, healthy or not, but the ease of purchase is reflected in higher premiums as compared to term life insurance for the same coverage amount. Of course, a guaranteed issue policy is still worth having over no life insurance coverage at all.





4. Buy only what you need

   It's not a good idea to buy too little insurance, but buying too much is unnecessary and will only cause your insurance premiums to be higher. So before you buy, review your needs and what it is you want your coverage to achieve and go from there.
   
   You'll find that many industry insiders suggest that the amount of life insurance coverage you should buy should be five to ten times your annual, pre-tax, income.
   
   Still not sure? Try the kanetix Life Insurance Needs Calculator to get an estimate of how much life insurance coverage you might need.





5. Save money with one policy that covers two people

   If you're looking to get life insurance for yourself and your spouse or partner, then consider buying one joint policy, instead of two individual policies. The premium is usually about 15% less for a joint life policy than 2 single life insurance policies of the same coverage amount.
   
   
   





6. Avoid monthly payment plans if you can

   Save money by paying your annual premium all at once, instead of setting up a monthly payment plan. Almost all life insurance companies will charge you a little extra to cover the cost of administering your payments every month.
   
   





7. The ‘when’ of life insurance

   People often look to buy life insurance when they are planning on getting married, starting a family, buying a home, changing jobs, facing unemployment, starting up a business, or retiring. It is during these life event milestones when your life insurance needs are most likely to come to the forefront.
   
   For the last two years in a row, more people shopped online for life insurance on www.kanetix.ca in January, February and March than any other month in the year.





8. Average life insurance policy amounts

   According to 2007 industry statistics, more than 20 million Canadians own life insurance and the average policy amount owned was $156,200 for individuals and $312,200 for households.





9. Workplace life insurance is often not enough

   Your workplace life insurance coverage may not protect you and your loved ones as much as you think. Review how much your employer-paid life insurance provides and calculate whether this is enough to keep your family comfortable in the absence of your income.





10. Premium prices vary wildly across life insurers

    Compare the life insurance policies and prices of competing insurers because every company prices their policies differently. A real easy way to do this, without having to listen to a sales pitch is to compare premiums and policies online. It's a great way to compare life insurance prices and see what different companies have to offer.
    

Insurance for insurance sake

You are a proud owner of a Honda Civic. Like all proud owners you have taken an insurance policy for the car. The insurance policy is of an amount that ensures that if the car is a total loss (in an accident or it is stolen) you will get enough money from the insurance company to make good the loss.

When it comes to your life, do you take the same precautions as you did for your car? Remember, unlike a car, with your life you do not get a second chance. Have you taken enough life insurance to ensure that if you die too early your family will get a sum that will ensure that they do not have to make any adjustments in their life style? As a broad rule of thumb, you should have life insurance equal to at least 10-12 times your annual income

Most Indians just do not have enough life insurance that will satisfy the above criteria. In their defense they will claim that they cannot afford to buy that kind of life insurance amounts for themselves.

But this is a fallacy. Let's turn again to the car insurance example to understand why.

For the car insurance, at the end of an uneventful year, the renewal notice arrives in the post and you pay it. So it goes on and on till you sell that car. At that time if you have had no occasion to make a claim you consider it as your good fortune. You obviously do not rue the money that you spent on your car insurance and do not look for a return on the money spent on your car insurance. Obviously while fixing the premium for such car insurance the insurance company does not have to build in this element and hence the pricing is low.

However, most people have a very different behavior when it comes to life insurance. They still want to get something back if they do not die during the policy term. Most of us still consider insurance to be a tax planning tool and not as something that will help our family in case of our death. And when we decide to purchase insurance, we instinctively go for the "maximum bang for the buck" strategy, mixing our insurance and "investment" needs. The surging popularity of Unit-Linked Insurance Plans (ULIPs) is a classic case in point. Our instinct tells us to ask, "If I am paying this much towards my insurance, what am I getting in return?" What they do not realize is that whatever they get in return is only from what they pay. The price of any life insurance plan that provides returns will obviously be much higher than if you were to take a plan that pays out if you die (called a term insurance plan) but otherwise pays nothing (much like the car insurance).

It seems genuinely hard for most of us to grasp the concept of insurance as purely a death cover. A Plan B that will ensure that even if we, as primary wage earners in the family, are no longer there, the insurance payout that we paid for during our lifetime will ensure financial stability for our family.

If we were to indeed give maximum weightage to this latter aspect, our predilection for "getting something in return" from our insurance policy will cease. The result will be that more and more of us will realize the best insurance product is the one that only covers the risk of death i.e. a pure risk cover.

A term insurance policy is insurance for the sake of insurance. Taking a term policy means that you are declaring to the world:

"This instrument is ONLY in case I am not there to support my family. For saving money, creating wealth, reaching my financial goals such as my children's education or increasing my wealth during my lifetime, I shall take advantage of the very many pure investment tools that are available."

Because a term insurance plan doesn't try to disguise as an investment plan or any other savings tool, it is the cheapest form of insurance. In effect, you pay the least towards maximum cover. This allows you to be adequately protected against the risk of death.

There are compelling reasons why you should adequately cover yourself, and not just use your insurance as a tax-saving tool.
New illnesses and diseases appear every day. The chances that you could contract something terrible and hand in your card have never been as high. You need to ensure that whatever happens, your family isn't left holding a near-empty pot of gold.

The insurance payout your family receives in the event of your demise has to last them a long, long time. Which means you need to be insured for a large, large sum. Which type of policy do you think will give you such a large coverage at low prices?

The term insurance policy that you take is a necessity for your family. Do not make the mistake of considering it a luxury for you and sacrifice it! You NEED to have a term insurance policy. Let's put it this way - the knowledge that you have adequately provided for your family if you die, will give you great peace of mind...and increase your longevity!

Or, as the punch line in an ad from a leading insurance company says "Jeetey Raho!"

Here is a comparator that displays term insurance premium amounts for various insurers. The premium amounts are for a typical male, 30 years old, for a sum assured of Rs. 50 lakh.

Insurer		20 years	25 years	30 years
AEGON Religare	Level Term Plan	10000	11573	13652
Aviva	Life Shield	15600	17650	20300
Bajaj Allianz	New Risk Care	18202	19270	20955
Birla Sun Life	Term Plan	13876	14719	NA
HDFC Standard Life	Term Assurance	14000	14650	16550
ICICI Prudential	Life Guard	13486	15028	17497
ING Vysya	Term Life Plan	12494	14591	17430
Kotak Mahindra Life	Preferred Term	11011	12584	14775
LIC	Amulya Jeevan	12850	14600	16800
Max New York Life	Level Term	13550	15250	NA
MetLife	Met Suraksha	12800	13800	NA
Reliance Life	Term Plan	11000	13350	16200
Sahara Life	Kavach	17945	NA	NA
SBI Life	Shield	12019	14566	NA
Tata AIG	Life Line	12100	13200	NA
Bharti AXA	Secure Confident	11950	13250	NA

Understanding and Controlling Your Finances

Life Insurance

Life insurance is a form of insurance that pays out when someone dies. Life insurance is a funny thing for three reasons:

1. You are never going to use a life insurance policy that you buy on your own life. After all, you will be dead when the policy pays out. Life insurance is therefore a gift that you give to someone else.
2. The chances of you dying "before your time" (say, before age 70) are pretty slim in this day and age. Therefore, the chances of a life insurance policy ever paying out at a time when it is really needed (for example, at age forty when you have a spouse and two teenage daughters depending on your income) are slim as well.
3. However, it is guaranteed that you will die at some point, and there is a fair amount of emotion around this particular fact of life.

These three facts make life insurance work like no other insurance policy ever will. The emotional component attached to death is, in and of itself, enough the alter the entire sales process and the types of conversation that happen during the sale.

Compare life insurance to an automobile insurance policy, for example. If you wreck your car the insurance policy pays you a check, so you get a direct benefit from the policy. The chances of you being in a wreck are pretty good - you see wrecks every day. Finally, if you wreck your car it is not the end of the world. You will simply go buy another one. Automobile insurance is therefore a commodity item that you purchase without emotion - you have to have it, so you buy it at the cheapest price you can find.

Not so with life insurance. If you do not know what life insurance is and why you do or do not need it, there are two things that can happen should a life insurance salesman happen to call:

1. You can be "guilted" in to purchasing insurance that you do not need.
2. You can be sold other components that are ancillary to life insurance at inflated prices.

The following sections therefore give you a brief introduction to life insurance and how to purchase it rationally.

What is Life Insurance?

As mentioned at the beginning of the article, life insurance is a form of insurance that pays a beneficiary in the event of someone's demise. You purchase a specific death benefit when you purchase the policy. You might buy a $100,000 life insurance policy, for example. You then assign that $100,000 benefit to a specific beneficiary, like your spouse. Should you die during the term of the insurance, then your spouse will receive $100,000. It is as simple as that.

Types of Life Insurance

There are two types of life insurance: 1) Term life insurance, and 2) everything else. Term life insurance is pure, unadulterated life insurance. "Everything else" is term life insurance bonded to some sort of savings component. It is called various things by various companies: "whole life", "universal life", and so on. Click here if you are interested in more specific descriptions of the different types of life insurance.

Let's say that you would like to buy $100,000 worth of life insurance. If you bought that as a term policy you might pay $15 per month. If you bought it as whole life, you might pay $100 per month. Depending on the company selling the policy, you will then be assured that the difference ($85 per month) will act as an investment that will "pay off the life insurance" and/or pay you a cash value at age 65.

The problem with everything besides term insurance is that the savings part is inefficient. Also, it is only as secure as the company issuing the policy. You would be much better off simply depositing the $85 in a stock mutual fund each month (as described in the article entitled "Investment Options"). You would, over time, make much more money that way.

There is now also a growing "mini-life" industry. This industry tries to attach special purpose life insurance policies to car loans, mortgages, etc. These too are totally inefficient. If you feel that insurance to cover your mortgage is important then comparison shop a normal term policy of the same value against the policy being offered by the mortgage company. You will be amazed at the price difference. Never buy mini-life policies until you comparison shop.

Who Needs Life Insurance?

Some people truly need life insurance. For others it is a waste of money. Let's look at some scenarios to see who does and does not need a policy.

Let's say that you are a single man or woman living alone in an apartment. Do you need life insurance? No. Who, exactly, would be the beneficiary? There is no one in your life who is dependent on your income. The only reason you might buy life insurance is the same reason you would buy a lottery ticket - you might win. You might, after all, die young. And if you had a life insurance policy and you did die young you could make someone very happy. Or you might buy a small policy to pay your funeral expenses at death. In that case $10,000 is all that you would need, and that would be one nice funeral. There are probably better things to do with your money while you are alive.

Let's say that you are a single man or woman living alone in a house with a $100,000 mortgage. Do you need life insurance? Maybe. The reason you might buy life insurance is to save your parents (or whomever else you have willed the house to) the problem of disposing of your estate. For example, imagine that you die. Your parents (or whomever) inherits the house. Now they want to dispose of the house, but it sits on the market for two years before selling. During that time they are having to pay the mortgage payments, and that might be a hardship. Therefore you might buy a policy to cover the expected payments over (for example) two years, or the entire mortgage.

Let's say that you are a married man or woman living alone in an apartment or a house. Do you need life insurance? If your spouse does not work and you want to provide for your spouse should you die, then yes. If your spouse does work but could not possibly support his or her current lifestyle should you die (for example, could not possibly pay the house payments), then yes. Otherwise, probably not. Having life insurance would be a nice remembrance if you were to die, but it is not essential.

What if you have kids and you provide income that they depend on? Then almost certainly, unless you are rich enough to be "self insured", you need life insurance. Yes yes yes. You need enough coverage to allow your spouse and children to live a comfortable life in the absence of your income.

How much life insurance do you need?

To calculate how much life insurance you need, you can use one of two approaches. You could estimate what you will make during the rest of your life and provide that. Simply take your yearly salary and multiply it by the number of years you have left before retirement. Using this approach you would probably buy way too much or too little insurance, depending on how much you make.

The other way is to examine all of the expenses that your family will incur should you die, and account for them. The calculator below will help you determine the correct amount of life insurance that you need.

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, 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.

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.

The Top Ten Insurance Myths You Need to Know!

Myth #1: Hey, You're Paying the Premiums... Insurance Should be Bought and Used for Every Accident and Disaster.

Insurance is designed to protect one from catastrophic disasters. An insurance rule of thumb: If you can pay for the loss or damage without a financial hardship then pay it, otherwise expect your insurance premium to eventually show an increase. Also, buying every type of insurance just isn't necessary. Sometimes the risk is worth taking rather than paying a premium.

Myth #2: If I am Alive, I Must Need Life Insurance!

Life insurance is designed to take care of one's dependants after the caregiver's death. If you have no dependants, then you probably don't need life insurance. This includes children and retired persons... usually they don't have people that depend on their income so life insurance for these groups can, in rare instances, be beneficial but is usually unnecessary.

Myth #3: I'm the Breadwinner in the Home, So Only I Need Life Insurance.

Have you seen the cost of childcare lately? Add that along with housekeeping, food preparation, home accountant, and school transportation. From that list alone one can see how much a spouse really contributes to the household budget. It is estimated a non-working spouse contributes at least, but usually more, the equivalent of a full time job. For this reason it is important to buy life insurance for everyone in the household if the absence of their income would cause a financial hardship.

Myth #4: Whole and Universal Life are the Best Life Insurance Choices Since I Can Get My Money Back.

Term life insurance is probably the best choice for most. Term life is set for a specific term, like 10-30 years, with a much lower premium than whole and universal life. Your best bet? Buy term life and invest the premium difference in a retirement account. Lean more about Term, Universal, and Whole Life at Life Insurance Policy Basics.

Myth #5: Flood Insurance is Only for People Who Live in a High Risk Area.

Everyone who lives in a National Flood Insurance Program area is eligible and can buy flood insurance. These areas are not always prone to floods so even if you think your area is low risk you may be eligible. Check with your insurance agent to learn more or find additional information at Why didn't my policy pay for damage caused by a flood?

Weekend Insurance Tip: Decide if You Should Accept Worker's Compensation Insurance Benefits

If you have ever had a job, you have probably heard of worker's compensation insurance. Maybe you have even received worker's compensation benefits from your employer. Most employees don't even think much about the worker's compensation insurance that their employer provides, but that may a big mistake for some.

Generally, employees feel it is great to get benefits if they get hurt at work but accepting your employer's worker's compensation insurance may not always be the best choice for everyone. There are pros and cons to accepting worker's compensation insurance and if you don't understand how it works then you cannot make the best choice for yourself.

Online Auto Insurance Quotes Tips

1. Know who in your family will be covered by your auto insurance policy. Check to see if your current policy is accurate, in regards to this information.

2. Be able to list your current auto insurance policies' details of coverage.

3. Write down your vehicles' VIN number.

4. List the make, model, and year of your car.

5. View your current policies' deductibles and coverage before going online for an auto insurance quote.

6. Be honest about your moving violation tickets.

7. Pay close attention to the auto insurance quotes' coverage expiration.

8. Understand your state requirements for auto coverage to remain legal.

9. Pick an effective date; when you would like your new auto insurance policy to take effect.

10. Expect a licensed, insurance professional to contact you promptly concerning your quote request.

11. Getting online auto insurance quotes can be an effective way to save money.

Disclaimer: Always consult a financial profession to determine what coverage is right for you.

A Life without Life Insurance

For whatever reason, buying life insurance has been reduced to an afterthought. Many of us are uncomfortable with facing our own mortality. Yet others do not see the value of life insurance because they are single, or will not live to receive the tangible benefit of having this coverage, unlike health insurance. Maybe you have been turned down for coverage because of a health condition, but most still can qualify for a graded death benefit policy.

Many people have life insurance at work. This usually comes in the form of term insurance. Term is insurance for a specific amount of time, and once it expires due to retirement, dismissal, or resignation, there is no benefit ( Some employers allow a reduced amount of insurance at retirement, usually a declining scale that often levels off at age 70, e.g.. 50,000 at age 65 and $25,000 at age 70). If you are dismissed from your job; you are without coverage unless you convert your group insurance into a whole or maybe universal life policy.

Some people have been conditioned that life insurance is for death benefit only. So buying life insurance, sometimes is not a priority until their mid-fifties or even late sixties when they retire. The problem is none of us know when we are going to die. You can literally cause your family to sell the family home, cause your spouse to work an extra ten years, and the brainy child may have to go the state university instead of your Ivy League alma mater (Some state colleges and universities are excellent. Go Buckeyes). If for nothing else, enough life insurance should be purchased so that loved ones are not left with your unpaid bills.

Life Insurance Uses:

• Death Benefit
• Provide income to pay off the mortgage in the event of death
• Replace lost income that your spouse and children would otherwise miss
• Make sure that future college tuition can be paid
• An effect way to pay off children and spouse who do not participate in family business
• To pay possible Estate Taxes
• To provide liquidity when many assets are tied into Real Estate

Insurance: Just Married

Insurance is a major concern when you say "I do." Couples need to be aware of their responsibilities to one another, in regards to insurance. There are certain insurance coverage's that should be discussed in particular by married people.

Life Insurance can be used to protect against the lost of one's present and future earnings. Also, you might have recently made a major purchase such as a bigger home or luxury vehicle. It is important to review your current life insurance coverage, because to most, it is necessary to protect their spouse from financial ruin in the event of an unexpected demise.

Health Insurance can lead to endless discussion, when it comes to married people. When both spouses have health insurance at work, the total family cost is one of many factors that should be discussed. This is the perfect time to review one another's coverage and compare apples to apples when applicable. Married couples need to decide to stay with their health insurance policy or join with their spouse's plan. This is not usually an issue if someone is self-employed, the group health insurance of your spouse often makes more sense than an individual policy. Decide whether the Company's PPO, POS, or HMO makes sense for your particular situation.

Disability Insurance, short-term and long-term may have been included in your employee benefits. However if this is not to the case, spouses need to discuss how they will be able to pay the mortgage and bills if one or both of them became disabled. This is a plug for reading your employees' benefit book. Auto and Homeowners Insurance takes credit into account. Remember if your spouse has bad credit, it can negatively influence the cost of your policies, that will be written in the future upon renewal.

Buying Insurance as married folks can lead to bitter discussion. However if no discussion is ever made, then chaos can come from doing nothing. To never have that talk about buying additional life insurance might lead to a default on the mortgage when the other spouses dies. Choosing the wrong group health insurance may lead to greater out of pocket expenses. Please read and know what benefits you are entitled to under your individual and group plans.

The History Of Life Insurance

Risk protection has been a primary goal of humans and institutions throughout history. Protecting against risk is what insurance is all about.

Over 5000 years ago, in China, insurance was seen as a preventative measure against piracy on the sea. Piracy, in fact, was so prevalent, that as a way of spreading the risk, a number of ships would carry a portion of another ship's cargo so that if one ship was captured, the entire shipment would not be lost.

In another part of the world, nearly 4,500 years ago, in the ancient land of Babylonia, traders used to bear risk of the caravan trade by giving loans that had to be later repaid with interest when the goods arrived safely. In 2100 BC, the Code of Hammurabi granted legal status to the practice. It formalized concepts of “bottomry” referring to vessel bottoms and “respondentia” referring to cargo. These provided the underpinning for marine insurance contracts. Such contracts contained three elements: a loan on the vessel, cargo, or freight; an interest rate; and a surcharge to cover the possibility of loss. In effect, ship owners were the insured and lenders were the underwriters.

Life insurance came about a little later in ancient Rome, where burial clubs were formed to cover the funeral expenses of its members, as well as help survivors monetarily. With Rome's fall, around 450 A.D., most of the concepts of insurance were abandoned, but aspects of it did continue through the Middle Ages, particularly with merchant and artisan guilds. These provided forms of member insurance covering risks like fire, flood, theft, disability, death, and even imprisonment.

During the feudal period, early forms of insurance ebbed with the decline of travel and long-distance trade. But during the 14th to 16th centuries, transportation, commerce, and insurance would again reemerge.

Insurance in India can be traced back to the Vedas. For instance, yogakshema, the name of Life Insurance Corporation of India's corporate headquarters, is derived from the Rig Veda. The term suggests that a form of "community insurance" was prevalent around 1000 BC and practiced by the Aryans.

And similar to ancient Rome, burial societies were formed in the Buddhist period to help families build houses, and to protect widows and children.

Modern Insurance

Illegal almost everywhere else in Europe, life insurance in England was vigorously promoted in the three decades following the Glorious Revolution of 1688. The type of insurance we see today owes it's roots to 17th century England. Lloyd's of London, or as they were known then, Lloyd's Coffee House, was the location where merchants, ship owners and underwriters met to discuss and transact business deals.

While serving as a means of risk-avoidance, life insurance also appealed strongly to the gambling instincts of England's burgeoning middle class. Gambling was so rampant, in fact, that when newspapers published names of prominent people who were seriously ill, bets were placed at Lloyd’s on their anticipated dates of death. Reacting against such practices, 79 merchant underwriters broke away in 1769 and two years later formed a “New Lloyd’s Coffee House” that became known as the “real Lloyd’s.” Making wagers on people's deaths ceased in 1774 when parliament forbade the practice.

Insurance moves to America

The U.S. insurance industry was built on the British model. The year 1735 saw the birth of the first insurance company in the American colonies in Charleston, SC. The Presbyterian Synod of Philadelphia in 1759, sponsored the first life insurance corporation in America for the benefit of ministers and their dependents. And the first life insurance policy for the general public in the United States was issued, in Philadelphia, on May 22, 1761.

But it wasn't until 80 years later (after 1840), that life insurance really took off in a big way. The key to it's success was reducing the opposition from religious groups.

In 1835, the infamous New York fire drew people's attention to the need to provide for sudden and large losses. Two years later, Massachusetts became the first state to require companies by law to maintain such reserves. The great Chicago fire of 1871 further emphasized how fires can cause huge losses in densely populated modern cities. The practice of reinsurance, wherein the risks are spread among several companies, was devised specifically for such situations.

With the creation of the automobile, public liability insurance, which first made its appearance in the 1880s, gained importance and acceptance.

More advancements were made to insurance during the process of industrialization. In 1897, the British government passed the Workmen's Compensation Act, which made it mandatory for a company to insure its employees against industrial accidents.

During the 19th century, many societies were founded to insure the life and health of their members, while fraternal orders provided low-cost, members-only insurance. Even today, such fraternal orders continue to provide insurance coverage to members as do most labor organizations. Many employers sponsor group insurance policies for their employees, providing not just life insurance, but sickness and accident benefits and old-age pensions. Employees contribute a certain percentage of the premium for these policies.

Final Thoughts

Even though the American insurance industry was greatly influenced by Britain, the US market developed somewhat differently from that of the United Kingdom. Contributing to that was America's size, land diversity and the overwhelming desire to be independent. As America moved from a colonial outpost to an independent force, from a farming country to an industrial nation, the insurance business developed from a small number of companies to a large industry.

Insurance became more sophisticated, offering new types of coverage and diversified services for an increasingly complex country.

Term vs. Permanent Life: Four Issues to Consider

There are four issues when comparing Permanent and Term life insurance - premium, cash value, death benefit, and duration of coverage. Consider the impact on each of these issues in your decision about life insurance as we look at the different types of Permanent and Term life policies.

The most noticeable difference between Permanent and Term life is the premium being roughly four times higher for Permanent life. The most important impact is on cash value, death benefit, and duration of coverage. While Permanent life builds cash value which can be borrowed against and provides coverage for your entire life, Term life builds no cash value and is for a specific period of time.

With Permanent life, you can choose Whole, Universal or Variable. Whole life has the highest and most stable premiums and provides guaranteed cash value and death benefit. Universal life provides a lower, more variable premium than Whole life and while retaining most of the death benefit, the cash value earnings are based on an annually-determined credited interest rate which depends heavily on the performance of your invested premiums. There is no guarantee as to what that credited interest rate will be from year to year and, as a result, there is no guarantee on the cash value of the policy. With Variable life, both the death benefit and the premium are determined by the performance of your invested premiums and you have greater control over the investments. While Variable life has the greatest potential of cash value increase, there is no guaranteed cash value.

As with Permanent life, there are three choices among Term life - Level term, Annual renewable, and Decreasing term. Level term provides level death benefits and premiums for the determined duration of coverage. However, this is not necessarily a guaranteed level of coverage. This varies, so check the individual policy. Annual renewable policies offer the highest coverage for the lowest premium, though that premium will go up every time it is renewed until the policy is surrendered. Because of this increase, most advisors suggest that no Annual renewable policy should be used for more than three years. Decreasing term life is a policy with level premiums sometimes called Mortgage Protection Insurance because it provides the greatest amount of death benefit at the beginning of the policy, when one would owe the most on their mortgage. Decreasing term can protect a large purchase like a home and insure that your family has what you intended to pay off in your lifetime. However, the longer you live with a Decreasing term policy, the less the benefit when you die.

One of the best analogies for the choice between Permanent and Term life is the choice between buying and renting a home. You will probably pay less to rent, but will have no equity against which to borrow.

By considering the impact on premium, cash value, death benefit, and duration of coverage with each type of policy, you will be able to make the decision that best meets your current and future financial standing and provides your family with the peace of mind that their lives (and lifestyle) are protected beyond your own.

Making Life Simple

It's easy to see why many people think life insurance would be easier to buy if life insurance itself was simpler to understand. Consider the two major types of life insurance: Temporary and Permanent. Within these broad categories, you can choose from such products as Level Term, Decreasing Term, Whole Life, Universal Life, Variable Life, Variable-Universal Life, first-to-die, second-to-die, and so on. Life insurance policies can be customized with the addition of "riders" that reflect your individual circumstances and personal preferences. Moreover, life insurance companies use a form of legalese in the policies they offer because life insurance is a legal contract.

As if all the choices weren't enough, some agents, in an effort to be precise, use the same legal language to talk to non-industry individuals. For this reason, life insurance sometimes loses clarity from the first words of a conversation between an agent and a potential buyer. It's not the only reason, but its right up there at the top of the list. An experienced, successful agent is an active listener who identifies her clients' needs in order to present life insurance policies that offer the right coverage for each family's unique situation.

I consider myself a good agent because I try to be clear and factual, among other things. So, when I call a new client for the first time, I like to provide an easy-to-understand description of the two major types of life insurance.

There is temporary life insurance and permanent life insurance. Temporary life insurance is called Term Insurance and it lasts for a period of time: one to five to 10 or even 15, 20, or 30 years. The number refers to the period of time that the payments and the coverage are kept level. It's usually the cheapest form of life insurance.

Permanent life insurance lasts for the rest of your life. Whole Life insurance is what some people ask for, but let's be clear; what they usually mean is "permanent insurance." There are several types of permanent insurance and Whole Life is one of them.

Interest sensitive policies such as Universal Life and Variable-Universal Life are also permanent. The most expensive form of permanent life insurance is Whole Life and the least expensive form of permanent life insurance is Universal Life.

Any buyer of life insurance realizes after a couple of minutes that one of these is what they had in mind and that the rest are not. Some buyers may question the utility and cost of each of type, so I supply answers that illuminate the advantages and disadvantages of each in a search for the appropriate type of plan that fits that particular buyer's needs.

Searching for quotes on the Internet is best accomplished with the help of licensed agents because they can provide guidance and clarity, which comes with knowledge and experience.

Getting a quote is a good thing. But getting an agent who will clearly explain life insurance and help you find the right plan is a better thing. Want proof? Here's your quote: $358. Ok, now what? Would you buy that number? Of course not, since no one ever buys the number. What you buy is the coverage described in the plan. Coverage that is either right for you or isn't right for you. With a little help from an agent who can make the process simpler and clearer, you can be certain that your dollars are well spent on the right plan that will provide security for your family.

Choosing a Life Insurance Agent

Do away with whatever image of you have of life insurance agents, and think of them as a guide, someone who can walk you through a complicated set of decisions that could affect the lives of your loved ones when you're no longer there for them.

"Life insurance is a complex product," noted Jack Dolan, a spokesman for the American Council of Life Insurance. "An agent can be very helpful in advising you. An agent can help you find the policy that meets your needs today and in the future."

Insurance agents know which kinds of life insurance are right for a young family just starting out, which work as a savings vehicle, which could be useful in retirement planning or estate planning.

"Life insurance has lots of functions. An agent can lay that all out for you," Dolan said.

In other words, an agent can save you lots of time you'd spend researching the issue on your own. He can serve as your guide now, and help you map your insurance needs in years to come as your situation changes. He can help you find a policy you can afford, and he can prevent you from making mistakes that could be very painful for your beneficiaries after your death, such as not having the right kind or amount of insurance.

How do you select an agent to work with? Begin by asking friends, relatives and neighbors if they would recommend their life insurance agent. Most people are happy to recommend a professional whose service they have been pleased with. Compile a list of three or four agents that you'd be interested in working with, based on personal recommendations.

You can also utilize LifeInsurance.net's Agent Locator to find an agent near you. Just enter your three-digit area code to view a listing of local agents, including address, phone, e-mail, and a complete profile of each agency. Next, talk to each agent on your list. Ask what products they specialize in, who their typical client is, what insurers they represent, how long they have been in business, what services they offer, and any other concerns you might have. While you're getting information about their practice, get a feel for how you would get along with each person in a professional relationship. After all, you're buying life insurance for the long haul, and you will have to share intimate details about your life, finances and plans with your insurance agent. (And a good agent will ask you about those issues before trying to sell you any policy.) Pick someone you are comfortable dealing with and someone who can translate insurance-speak into language you understand.

Insurance agents can earn a number of professional designations, such as Chartered Life Underwriter (CLU). Some have training in financial planning as well as insurance, and have earned designations such as Chartered Financial Consultant (ChFC) or Certified Financial Planner (CFP). These advanced studies take several years to complete, and such designations are one indication the agent is serious about his job and up to date on issues in insurance and financial planning, Dolan said. And those who use the designation are often required to follow a code of conduct. You may want to make one of those designations a requirement for the agent you choose.

All insurance agents are licensed by the states they do business in, and an agent should be willing to provide information about that license. Check with regulators to make sure the agent has the proper licenses and has not been disciplined.

Remember, a good agent not only sells insurance; he helps guide his clients through the sometimes complex maze of choices associated with term, whole life, universal life, variable life and other life insurance options. And once he makes the sale, he will continue to service the client, including performing periodic "insurance checkups" to make sure the policy he sold you a few years ago still meets your needs.

How Your Insurance Premiums Are Calculated

Insurance is all about managing risks. And insurance companies don't take any risks when they are setting the rates you will pay for a policy. They want to take precautions to ensure that you won't die prematurely, causing them to pay out a lot more than you paid in.

What sort of risks are they interested in? Pretty much the same health risks doctors, medical researchers and health-conscious people are concerned about -- the same subjects you hear about over and over again if you listen to medical reports on TV or radio: tobacco use, cholesterol, being overweight, diabetes, and other conditions linked to poor health and early death.

To account for these risks, insurers will designate your status (using a title such as preferred or standard) based on age, gender and health, and that will determine how much you pay for a given amount of insurance.

To determine your health status, the insurance company will ask about your medical history and most likely require you to undergo some sort of physical exam. When filling out the health questionnaire "it is important that you are truthful," said Jack Dolan, spokesman for the American Council of Life Insurance, a trade organization that represents many of the nation's largest insurers. If you lie and the company finds out, it can cancel the policy. And if you were to die, and then the company found out you lied -- if, for instance, you said you were a non-smoker but ended up dying of lung cancer from a two-pack-a-day habit -- it could deny the death benefits, he said.

There are some risk factors you can't control, such as gender or age. "Women live longer than men, so women have lower rates on insurance, Dolan noted. And because men tend to have shorter life spans, they pay a lower rate on an annuity. Your age also affects the premium. Younger people, who have that much longer to pay premiums before they are likely to die, pay a lower rate than an older person would be quoted. Your family medical history, your lifestyle (do you have dangerous hobbies or travel frequently to locations where you could be exposed to disease or danger?) and your physical condition also come into play.

For most people buying most policies, the insurer will ask you to undergo a physical exam. A visiting medical practitioner, paid for by the insurance company, will check your weight, blood pressure and other vital signs, and perhaps take a blood and/or urine sample. In some cases, more extensive tests, such as an X-ray or EKG, might be required. Your blood and urine samples will be tested for any sign of disease, including the presence of the HIV virus, cholesterol level, and any indications of disorders such as diabetes, kidney problems, hepatitis and other problems. The samples will also be screened for the presence of nicotine and certain medications as well as for illegal drugs.

Each insurance company sets its own rates and determines what constitutes a preferred-plus buyer, a substandard buyer or any category in between. What if you know you have a risk factor? In the first place, alert your agent of the problem when you first talk about life insurance policies. It's likely the agent knows that some insurers charge higher rates for that risk factor than others, and he can look for a company that doesn't hike its premiums a lot for that particular condition. If it's a controllable risk factor, you can also do what your doctor or spouse might be urging you to do. Eliminate the risk factor: Quit smoking. Lose some weight. Take your blood pressure medication regularly. Get healthy.

If you substantially improve your health, you can alert the insurance company and see if it will lower your rates. There's no danger in doing this, Dolan said, because "an insurance company will never increase the premium, but it will decrease the premium when people give evidence of improved health."

Some insurance companies will also improve an individual's rating, and trim the premium, for risk factors that decrease over time. Dolan gave the example of someone who purchased life insurance shortly after a bout with cancer. That person is probably paying high-risk rates because of that health history. But, because the risk of the cancer returning decreases over the years, that individual could contact the insurer after being cancer-free for five years and might get a lower rate, he said.

Term Life vs. Permanent Life Insurance

When shopping for life insurance, you face the same decision you must make when you're in the market for a new car: lease or buy?

Those aren't the words used for insurance, of course, but the concepts of term and permanent life insurance are similar to leasing and buying.

Term insurance is like leasing a car. You purchase death benefits for a specified period --usually 5, 10 or 20 years. When the period is over, it's like turning in the leased car. The deal is done and you walk away.

Permanent insurance, on the other hand, is like buying the car you plan to drive forever. Permanent insurance stays in force as long as you live. It will pay a death benefit, and it accumulates a cash value, too.

The two kinds of life insurance are appropriate for different situations. Term insurance is designed for those who are interested solely in a death benefit; for example, a young father who wants insurance so that his child will be able to afford college if Dad is not around to pay the bills. There is no cash value to this kind of insurance, so often the premiums are lower than they are for permanent insurance. But as the insured gets older, the premiums increase.

Permanent insurance combines a death benefit with a cash value, or savings component, which grows tax-deferred. Many policyholders borrow from the cash value to pay for things such as a college education, or convert their cash value into a retirement fund.

Because of the savings component, permanent life insurance may cost more than term life, especially at the beginning. But the premium remains fixed for the life of the policy.

Many people are familiar with the saying "buy term and invest the difference," which suggests going for the lower premiums and taking care of the savings component on your own rather than counting on the insurance policy for investment growth. With recent high returns in the stock market, many investments are growing faster than cash values.

Various types of permanent insurance plans, however, do give the insured the option of deciding how the savings is invested.

While term insurance often starts out cheaper, permanent life offers several advantages over a term policy, financial experts say.

Among them:

• Because premiums don't escalate, a permanent policy is more likely to be held until death and actually pay a death benefit than is a term policy, which can get quite expensive as the insured ages. And the death benefit will pass to beneficiaries tax-free.
• There's a tax advantage to permanent life, because cash values will grow at a tax-deferred rate. With no cash value, there's no tax advantage to term life.
• Besides, the "invest the difference" component of that adage is often ignored. If you go with cheaper term insurance, you should make a commitment to a regular savings and investment program.

How Much Life Insurance is Enough?

When deciding how much life insurance coverage you need, you're giving yourself the opportunity to protect yourself and you beneficiaries for years to come. But if you don't correctly calculate how much money will be needed, you might be defeating the purpose of life insurance.

You can group the financial responsibilities you have at the time of your death into three categories: final costs, income loss, and debts.

The price of funerals and the expenses that go along with them has been on the rise over the past 20 years. And even if you decide not to have a funeral at the time of your death, you still need to consider the costs of disposing of your body. It's a good idea to get a solid estimate of how much your funeral or disposition costs will be. Be sure to write your funeral intentions in a will, so your beneficiaries will know how much of your life insurance money is planned for the funeral.

Also included in the final costs of your death are federal and state death taxes and property taxes. These taxes need to be paid immediately after your death. To calculate these expenses, you first should calculate the total value of your estate. These final taxes for someone with a moderately-valued estate typically amount to about 10 percent. If you have a larger amount of property, it will be a bit more than 10 percent of the estate. If you aren't sure where you fall, you will want to ask your attorney for an estimate.

Second, look at how much income your family or beneficiary will be without when you die. This is perhaps the most overlooked cost when considering your financial responsibilities at the time of your death. When determining this amount, the most important step is communicating with your partner. Talk about whether your spouse would be gainfully employed if you should die, whether your spouse would remarry, and how your car or house payments will be taken care of. If your partner will be employed, your financial responsibilities to them will be lower. If your spouse will remarry to another person with a substantial income within a short period of time, you won't need as much money for them. And if you decide to pay off your car loan or mortgage at the time of your death, your partner won't need as much income, either. You should consider each of these issues first when determining the income loss of your family.

Determine how much money per year after your death your family will need. Then determine for how many years that amount of money will be needed. Multiply these two figures, factor in an appropriate interest rate for inflation, and you've arrived at the amount of income your beneficiary will have lost after your death.

The third consideration is the amount of debt that you will have at the time of your death. When you die, your family will become responsible for paying those obligations. This category is simple to calculate once you've determined what should be included. Tally up all your credit card accounts, short-term loans, and installment payment obligations. These are payments that you likely don't want to be passed on to your family.

You may decide that other loans, like car notes and mortgage payments, should fall under this category instead of considering it a long-term income need. Including it as a debt that you want paid off at the time of your death may increase the amount of coverage you need substantially, but your family wouldn't inherit those monthly payments.

The final consideration you should entertain is how much money would be needed right now, if you should die tomorrow. Keep in mind that these costs may be above and beyond what you've already calculated. Have you already paid for your children's college education? Are there other immediate costs your family will have that you may not have in 10 or 20 years?

Also, keep in mind that your present salary at work may increase or decrease. If you believe you're at your peak income level right now and that in 10 years you won't be earning as much money, you need to consider that the income your family would lose should you die tomorrow will be a greater amount than it may be in 10 or 20 years.

Once you calculate how much life insurance money you will need to protect you and your beneficiaries, you may contact your agent to help determine what amount of coverage is right for you. It's best to be prepared for this step, rather than guessing and leaving your family responsible for debts and an income loss.

Many 'Impaired Risks' Can Qualify for Insurance

Insurance is all about covering risk. People with a chronic condition, cancer survivors, even those with risky hobbies may find that they don't qualify for standard insurance rates because they are considered an impaired risk.

The most common reasons someone is an impaired risk are heart conditions, diabetes and cancer. Race car drivers, scuba divers and people who fly small airplanes for fun can also be in the impaired category. "Anything that is out of the norm in terms of risk" can knock a person out of the running for a standard rate policy, said Whit Milner, executive vice president of The Milner Group, an Atlanta-based insurance broker

Being an impaired risk doesn't mean you can't get life insurance, however. Many carriers will take impaired risks, and a good broker can match an impaired risk to the company that's most willing to write a policy for that particular situation, Milner said. Milner's family has been in the insurance business for six generations, and The Milner Group is the oldest brokerage agency in the United States to do impaired risk.

Different insurers tend to "specialize" in different kinds of risks -- they will be more aggressive in writing policies for a specific condition. "We can look at an applicant's medical background and know which company will be most willing to write a policy," Milner said. For instance, one company specializes in insuring folks with sleep apnea "because something in their research or experience tells them it's not as risky as some other insurers believe," he said. Some conditions, such as the late stages of diabetes, may not be coverable, or the costs could be prohibitive. Sometimes people simply wait too long to apply for insurance and their health has deteriorated too much. But other conditions, including HIV, which used to be considered uncoverable, are now acceptable to some insurers.

An impaired risk presents a higher risk to the insurer, so the rates will be higher than a standard risk. To a large degree, the actual rate will depend on the individual and his or her specific situation. Many companies base rates on a "point system," Milner said. An applicant is assigned a specific number of points for each condition he has, such as diabetes or high blood pressure. The points are tallied and a chart is consulted to determine the rate.

Because so much is riding on the medical history of the applicant, Milner advises those applying for insurance to be frank and upfront when applying for insurance. "The insurer will want as many details as possible. The underwriters have to feel comfortable that they have all the facts. They want to be sure that everything has been disclosed before they write the policy. The more the applicant can tell upfront, the better it is."

He acknowledges that some people are reluctant to release their medical records and suggests the best way to peace of mind is to deal with a reputable agent with whom you feel comfortable.

Approval will be based primarily on three criteria: medical records or reports from personal physicians, a physical exam and a financial background check. People with impaired status often have several doctors -- an internist, a cardiologist, an oncologist, etc. -- which can lengthen the approval process. Delays can occur in receiving records from doctors, and underwriters simply have more records they need to review, so it takes more time. Applicants can help speed the process by providing complete and accurate names, addresses and phone numbers for all their doctors, so that the insurance company can request the appropriate records.

Sometimes, conditions improve and a person can seek lower rates, even get back to standard rates. An obese person could lose a lot of weight and apply for standard rates, for example. With cancer survivors, the passage of time, combined with continued cancer-free status, can result in lower rates.

"If you are ever in doubt that you have too high of a rating, put the ball in your court," Milner suggested. In other words, ask your agent to shop around for a rating or to continue to search for the best rating. "You can always drop the more expensive policy and get a cheaper one."

Milner credits his father, Seixas G. Milner, with being a real pioneer in the impaired risk insurance industry. "When he founded this business, Dad would go to insurance agency managers and suggest they help impaired risk applicants, because those applicants would bring in referrals from lots of other people. Many agency managers saw the wisdom in that," he said.

Questions to Ask Before You Sign

Many people buy as many life insurance policies that fit in their budgets and assume they're covered for every possible issue that could come up. But that's not necessarily the case. If you don't read your policy carefully before you sign on the line, you might end up being disappointed in the end.

Ask why the exclusions are in your policy. Rather than worrying about whether your life insurance company will try to rip you off when you make a claim, ask about the exclusions about which you're concerned. There are reasons for the exclusions. If the policy would guard against every risk, the price of the policy would be outrageous. Also think of it this way: exclusions keep you from buying coverage you don't need.

If there's part of your policy that doesn't make sense, ask about it. Sometimes policies are worded very oddly and are difficult to read. Make sure you ask your agent what a particular clause means. If it still doesn't make sense to you, remember that courts generally look favorably toward the consumer's side of ambiguous insurance contracts.

Ask to have it put in writing. If there's something about your insurance policy that is unclear, ask the company you're buying it from to put a verbal clause in writing. Having it in writing gives you peace of mind and makes sure there is no question about what's covered and what's not.

Know when your policy expires. If you are purchasing a term policy, know exactly when your coverage begins and ends. Many renewable term policies offer a grace period (typically 31 days) after the expiration date if the next year's premium is not paid on time. But some policies are not clear on this point. Make sure yours is.

Know whether your policy is convertible and for how long. Your policy likely has a conversion clause. That's the line on your agreement that discusses how you may exchange your renewable term policy for another type of policy without evidence of insurability. You want to find out how for how many years your policy is convertible. And if your policy is convertible, you want to make sure you know and understand the rules.

Find out your premium rate. Some companies have variable rates for premiums. Make sure your policy outlines exactly how much you'll be expected to pay and when those payments will be due. If the policy includes variable rates, make sure you know how much you'll owe.

Find out if your policy is renewable. Many policies allow you to renew them at the end of the terms without having to re-qualify. Many other policies allow you to renew for a set number of years without having to re-qualify. You should make sure you fully understand at what age you'll be expected to re-qualify for the policy.

Find out how the loan clause of your policy works. If you have a cash-value policy, it likely includes a clause that allows you to borrow against it. Make sure you know in what time frame the loan may be made and what the interest rate would be.

Learn about the policy's change-of-plan provision. Many straight life insurance policies have a clause under which you may change your plan to a high-premium policy during the lifetime of your plan. Know what your options are. If your contract isn't clear about the change-of-plan provision, make sure the policy is written so it's understandable.

Finally, know what you need to do to make a claim on the policy. Make sure it's clearly written on your policy whom you contact and under what time guidelines you're required to act. Also, become aware of what options the insurance company has when you make a claim. Learn how long the company has to respond to your claim.

But don't lie on your application or policy! Your entire contract can be voided, if you knowingly conceal information about yourself and your insurance situation. Misrepresenting any facts in order to obtain insurance is fraudulent. You may not lie on your application, and you may not lie when filing a claim. This can lead to serious criminal claims against you.

When your insurance agent hands you your life insurance policy, look it over thoroughly. Maybe even take it home with you to give it your full attention, before you sign. (In fact, many states require that insurance companies provide a "free look" period, usually 10 days, during which you may return the policy for a refund.) Talk with your agent about any concerns you might have. Policies are difficult to understand. But if you get your questions answered before you accept the terms, you'll be more relaxed and confident with your decision to buy the policy.