State Life Insurance Guaranty Associations

An emotional moment can already difficult situation. For your protection, Life and the Association of Health Insurance Guaranty (or NOLHGA) an association of health and / or life insurance company during their time of need in the unfortunate event that they are unable to pay their coverages have been launched.
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Founded in NOLGHA been established. To follow all laws and guidelines has its own life insurance in all states, the District of Columbia and Puerto Rico state has its own association.
The following Warranties Association, state regulations and NOLGHA the Frequently Asked Questions (FAQ) Here are some of them:
My life and / or health insurance company does business is what?

If my insurance company have to pay the premium?

The political life of the State Insurance Association is only valid if taken, so you will need to ensure that all policies are current.
I contact with questions about personnel policy do?

My insurance policies are completely safe?

There are several factors that are involved with this issue.
First, policies and life insurance are covered by NOLGHA. National Conference of Insurance Guarantee Funds of goods and / or accident insurance claims is responsible.
$ 100,000 FDIC protects bank deposits as the other, NOLGHA as limits, and then at the state level is decided. In most states offer at least:
$ 300,000 in death benefits of life insurance (life insurance)
The cash surrender values of life insurance or retirement of $ 100,000 (the life insured)
values and cash withdrawal for annuities $ 100,000 (life insurance)
$ 100,000 in benefits of health insurance policy (life insurance)
The value of the policy limit is more than worthy of their status, can not afford to lose money. Against your property, a creditor of the failed insurance company can claim. The assets of the insurance company after the failed political balance can be paid at the discretion of the courts.

Life Insurance Ratings

One of the most important considerations for choosing a life insurance policy is the company’s rating. Even though price may be your top priority, making your selection solely on the lowest cost may not necessarily make it the best choice. There are a variety of reliable rating systems available online, but making sense of the ratings may require a bit of decoding.

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LIFE INSURANCE RATINGS OVERVIEW

Rating agencies assess the financial “health” of life insurance companies to arrive at a score. There are a number of top ratings agencies, and each has a slightly different system. According to Kiplinger’s Personal Finance web article “Rating the Company,” they suggest that you “limit yourself to insurers that rate an A++ or A+ from A.M. Best, a B or above from Weiss, or at least an AA from Standard & Poor’s, Moody’s or Duff & Phelps.” The following provides an overview of the rating system for a sampling of agencies:

A. M. BEST

A++, A+ Superior
A, A- Excellent
B++, B+ Very Good
B, B- Fair
C++, C+ Marginal
C, C- Weak
D Poor
E Under regulatory supervision
F In liquidation
S Rating suspended

STANDARD & POOR’S

A++, A+ Superior
A, A- Excellent
B++, B+ Very Good
B, B- Fair
C++, C+ Marginal
C, C- Weak
D Poor
E Under regulatory supervision
F In liquidation
S Rating suspended

MOODY’S

Aaa Exceptional
Aa1, Aa2, Aa3 Excellent
A1, A2, A3 Good
Baa1, Baa2, Baa3 Adequate
Ba1, Ba2, Ba3 Questionable
B1, B2, B3 Poor
Caa1, Caa2, Caa3 Very Poor
Ca Extremely Poor
C Lowest

Life Insurance Broker

A life insurance broker serves a valuable function in making the decision about the best life insurance policy for you. A broker is an intermediary that researches the right coverage for you from a variety of insurance companies. Brokers provide exceptional assistance with sorting out the often confusing aspects of life insurance, customizing your policy and helping with the claims process. They have a great deal of knowledge about the industry and have extensive experience with a number of insurance carriers, making them experts at what they do.

LIFE INSURANCE BROKER SERVICES

Brokers work for you by researching a number of insurance carriers to find the policy that best meets your needs, at the best price. They are familiar with the ins and outs of life insurance and know the ratings of each carrier.

ONLINE BROKERS OF LIFE INSURANCE

With the Internet being such an available resource, there are a variety of life insurance brokers online. In many cases, their services are quick and reliable, with quoting services that gather a small amount of information about you and return a number of insurance carriers and premium estimates. Using an online broker is usually the best approach for those extremely comfortable with the web.

Whichever way you start your research, you can learn about your specific life insurance needs by getting a free quote. You will quickly discover how affordable a life insurance policy can be.

Life Insurance Online

With access to so much information online, how do you know where to begin with your life insurance policy research? Life Insurance Infoprovides a comprehensive resource about the basics, as well as details about specific policies to help you get started.

INSURANCE COMPANY RATINGS

When reviewing potential life insurance companies, one of the most important considerations is the company’s rating. Your financial situation may dictate that price is a top priority when evaluating policies, but solely making your selection based on lowest cost may not necessarily make it the best choice. There are a variety of reliable rating systems available online that you should be aware of when researching companies.

Rating agencies assess the financial “health” of life insurance companies to arrive at a score. Each agency uses a slightly different system, but they generally provide a description (superior, excellent, very good) in addition to their letter grade. Visit the Life Insurance Ratings page for more details.

See what companies have to offer by requesting a life insurance quote.

THE PROCESS OF FINDING A LIFE INSURANCE PLAN

Beginning your process with a quote request online can get the ball rolling. From there, you can make determinations about policy pricing and options given your specific needs.

Once you obtain a life insurance quote, a life insurance agent will walk you through the life insurance process. He/she will schedule your medical exam, assist with completing your application and provide guidance to gather the appropriate records to finalize your policy. After all of the documentation and application information is complete, the agent/broker will send it directly to the insurance carrier.

THE ROLE OF A LIFE INSURANCE AGENT

No matter what your choice of insurance companies, make sure your research involves a review of the company’s insurance agents and their customer service. While you can get a fair amount of the work done online, you will benefit from an insurance agent’s personal consultation and professional experience.

Life Insurance Settlement

A "life insurance settlement" occurs when you sell your life insurance policy to a third party investment company. This settlement only applies to permanent types of policies, or those that build cash value over the life of the policy.

Seniors are the most likely to be involved in a life insurance settlement, since they no longer have dependents (any children are now grown and making their own incomes), nor do they need to financially protect a spouse, who is living off of a pension and/or retirement savings. Seniors are also likely to be debt free, with the mortgage paid off and few other debts to account for.

Protect your dependents by requesting a free life insurance quote today!

A life insurance settlement is an attractive deal to those wanting to receive cash in exchange for their policy, while they are living. Identifying whether or not a settlement is best for you requires an understanding of the process.

BENEFITS OF A LIFE INSURANCE SETTLEMENT

In addition to the cash received as a result of a life insurance settlement, you will no longer be responsible for premium payments since you no longer own the policy. Also, while the investment company pays a percentage of the policy’s value, it usually is a bigger payout than the cash value you would receive if the policy was surrendered. This money can be a significant help for supplementing retirement, estate planning, extended care, or investment opportunities.

LIFE INSURANCE SETTLEMENT DRAWBACKS

By selling your policy, you no longer have life insurance coverage, so your beneficiary will not have any insurance benefits when you die. In the event that your health deteriorates, you may not be able to obtain another policy to replace the one you sold.

Also, there has been much discussion about insurance and investment scams and fraud. Carefully research companies that purchase policies to avoid scams.

As with any decisions about life insurance, please take the time to do your research. Make sure that the company you want to sell to is reputable and is licensed. Also, shop around to determine the best settlement amount for your policy.

WHAT’S IN IT FOR THE INVESTOR?

While the investment company purchases your policy for a fraction of its value and makes the premium payments, it gains the death benefit when you die. Depending on when that is, the investment company stands to make a fair amount.

WHAT’S IN IT FOR YOU?

Compared to surrendering your policy back to the originating insurance company, you will get significantly more money from selling the policy to an investment company.

Life Insurance Policy

Once you have made your decision about which company’s services you prefer and the type of policy you want, you then work with your company on the legal document, or life insurance policy. This legal contract between you and the life insurance company outlines the specifics of your agreement, including costs, assignment of beneficiaries, terms and conditions.

In this section, Life Insurance Info reviews the specifics of a contract. Please note that this is a general overview of a life insurance policy. Please consult with an agent for full details and an explanation of your specific policy.

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LIFE INSURANCE POLICY RIDERS

Policy riders provide a modification to your policy for additional coverage, effectively customizing your policy to your unique needs. You will likely be charged additionally for these adjustments. Riders are also available to remove unnecessary coverage and will reduce your cost as a result. The following are a number of riders you may consider:

Accelerated death benefit – allows those diagnosed as terminally ill or who need long-term care to collect their policy while they are still alive; indicates the amount remaining to pay the death benefit
Accidental death benefit – indicates that an additional benefit will be paid to the beneficiary in the event that your death is accidental; also known as “double indemnity”
Disability income – provides a specific level of income for the length of your disability or for a time specified in the rider
Guaranteed insurability – additional coverage can be purchased at stated intervals without additional “evidence of insurability”
Level term rider – allows a fixed amount of term insurance to be added
Waiver of premium – allows you to stop paying premiums in the event you become disabled and are unable to earn an income; protects the policy from being canceled
Spouse/children’s insurance – provides additional coverage for your spouse or children
Withdrawal provision – permission to withdraw money from your policy
Family income benefit – provides your family with your monthly income after your death for a specified amount of time

CLAUSES AND EXCLUSIONS CONTAINED IN LIFE INSURANCE POLICIES

Clauses provide the rules set forth for you and the insurance company to abide by, while exclusions determine areas where the insurance company is not responsible.

Beneficiary clause – you indicate the beneficiary to receive the death benefit
Incontestable clause – protects you by only allowing the insurance company a specific period of time to dispute your policy
Grace period clause – allows 31 days for late premium payment without cancellation
Spendthrift clause – protects the death benefit paid out to your beneficiary from creditors
Survivorship clause – will postpone the death benefit to your surviving beneficiary
Entire contract clause – establishes the policy and provides that all statements must be true
Misstatement of age clause – policy may be terminated if you give false information about your age
Reinstatement clause -- if your policy is canceled because of failure to make payments, you can reinstate it under the conditions of the clause

BEFORE YOU SIGN UP FOR A LIFE INSURANCE POLICY…

Remember, once you sign the policy, it is a binding contract – so protect your best interests by reading the entire document carefully. Be certain that your policy is best suited for you, including cost, flexibility and comprehensive coverage. Typically, you are allowed 10 days to examine the policy, during which you may decide to surrender the policy and get a refund.

Uses of Life Insurance

The primary function of life insurance is to provide financial protection to your family in the event of your death. Without life insurance, if you die, you are likely to leave your family with a financial burden as a result of your lost income. Beyond that, there are other functions of life insurance. Life Insurance Info examines both personal and business uses below; visit the Advanced Life Insurance Topics page for additional uses.

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PERSONAL USES FOR LIFE INSURANCE

Your main objective for a life insurance policy is to provide a means for your family to meet financial obligations after your death. The following lists some of the major expenses as well as other personal uses for life insurance:

Funeral expenses – the insurance payout can help with the cost of a funeral
Medical bills – if you need a lot of medical attention prior to your death, there are likely to be outstanding bills
Mortgage or rent payments – your family may be financially strapped without your income; the insurance payout would assist with monthly living expenses
Income replacement – your dependents will need another source of income when yours is no longer available
Estate planning – for those with assets in excess of $2 million, the life insurance payout allows beneficiaries to pay off the costly estate taxes
Charity/donation – perhaps you want to leave your death benefit to a church, alumni association, or favorite charity
Outstanding debts – there may be additional debts following your death that the death benefit can pay for
Loan – a policy that builds cash value can be borrowed against for short term debts

LIFE INSURANCE FOR BUSINESS PURPOSES

Similar to personal reasons, business owners can also use the proceeds of a life insurance policy to protect a businessfinancially, including:

Business continuation – assists with transitioning a business from owner to family members, ensuring that the business continues to operate even after your death
“Key person” – a policy is purchased on the life of your businesses’ key employee; the payout allows the business to find a replacement
Employee bonus – provides a tax-deductible benefit to valuable employees

Affordable Life Insurance

For many, the major consideration for any big purchase is affordability. Shopping for life insurance is no different. Making financial decisions is important, but being able to afford protection for your family is critical. One of the most affordable options is a term life insurance policy.

BENEFITS OF TERM LIFE INSURANCE

Compared to permanent life insurance, a term policy is considerably less expensive because you pay premiums for a shorter amount of time. A permanent policy, on the other hand, costs more because the premiums are spread over the life of the policy.

Even though a term policy is just for a specified period of time, it is renewable at the end of the term and often can be converted into permanent insurance when you are more able to afford the higher premiums.

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TERM LIFE INSURANCE CASH VALUE

While permanent life insurance policies offer an additional “cash value” that accumulates over the life of the policy, you can still grow additional value with a term life policy by also investing in a mutual fund. In many cases, depending on the amount you invest, you may end up with more money than would grow in a permanent policy.

TERM LIFE COVERAGE TO REACH GOALS

Since term insurance is for a specific “term” (from one year to 30 years), it is well suited for short term goals – paying off a mortgage or providing college savings, for example.

DRAWBACKS OF TERM LIFE INSURANCE PLANS

While a term life insurance policy provides affordable premium rates, if you elect to renew your policy, the premiums will increase at renewal. It still will cost significantly less than a permanent life policy, but be aware that the premiums will not stay at the same rate when you renew.

Compared to permanent life insurance, a term policy strictly provides coverage and does not grow any cash value. The payout for a term policy is only received if you die during the term. If you survive the policy, there is no benefit received.

TERM LIFE INSURANCE PREMIUMS

As previously mentioned, the premiums for a term life insurance policy are much less than other types of insurance. The following chart is from the My Life Insured website, and provides an excellent comparison of term life and permanent life premiums for a male, “preferred non-smoker” classification at various ages.

As with many purchases in life, cost is an important consideration. But shopping around to get the best rate on life insurance is a bit more complicated than looking for the best price on a new sweater. Life insurance rates are determined by factors such as your health, medical history, age, and whether or not you smoke.

LIFE INSURANCE RATE CLASS SYSTEM

The cost of your life insurance premium depends on the “rate class” you are placed in following your application. Insurance companies make this determination by a number of criteria about your lifestyle and medical history.

Rate classes are a reflection of risk – factors such as being overweight, being a smoker, having high blood pressure or cholesterol levels, family medical history and driving record all play a role. Additionally, some companies also investigate your credit score and how risky your occupation is. Bottom line: if you have a healthy life, you are likely to have a better rate.

Unless you opt for a “no medical exam” policy, you will need to undergo a basic physical, urine specimen, blood work, and possibly EKG or X-ray; the results of which will be factored into your rate classification.

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LIFE INSURANCE RATE EXAMPLES

According to an article from CNBC, a healthy 40-year-old male, nonsmoker could get a $500,000, 20-year guaranteed level term policy for a premium of just $420 annually. The article also mentions that pre-existing health conditions can increase the rate and smokers can “pay as much as 80% more for the same amount of coverage.”

STRATEGIES TO LOWER THE COST OF LIFE INSURANCE

Keeping the cost low may be as easy as making some simple changes to your lifestyle. If you quit smoking, lose weight, exercise to maintain better blood pressure and cholesterol, you will likely improve your rate classification. These can all contribute to a lower cost of life insurance.

Thoroughly research rates and companies online to get more information about their background and offerings. Ratings of insurance companies from sources such as Standard and Poor’s and A.M. Best can be very revealing. Look for companies with AA or A ratings, as this is a positive reflection of their stability to provide financial protection.

ONLINE RATES FOR LIFE INSURANCE PLANS

One of the best things to come from the Web is the ability to easily research any number of topics. In terms of life insurance, it can be incredibly easy to review life insurance policy information, companies and get free quotes. Simply answer a few questions and you can be on your way to receiving several quotes.

What is Life Insurance?

Perhaps a basic question, but an excellent place to start – once you begin with an understanding of what life insurance is and its applications, you can start to make choices about which type of policy best meets the needs of you and your family.

In simplest terms, life insurance provides coverage in the event of your death – ensuring that your family continues to have financial protection even when you are gone. The simplest perspective of life insurance is to look at the stage of your life and your financial means. Different types of insurance suit different life stages, needs, and financial abilities. The availability of various types of life insurance policies makes it easier to find one that is most applicable to your situation.

SINGLE
At this stage, because you do not have dependents, there will be no one who misses your income when you pass away. While insurance may not be a necessity to protect your family finances, it should be considered. At a younger age, the rates will be more affordable.

MARRIED
A small amount of life insurance is recommended at this stage - even though there are not yet children present, in the event of your death, the death payment of a policy would pay for mortgage/rent payments, credit card debts and funeral costs.

MARRIED WITH CHILDREN
Life insurance is critical once children are present because your family would be greatly impacted by the loss of your income.

RETIREMENT
At this point, your children no longer rely on your income and you are likely living off of your retirement funds. While not as much life insurance is necessary for this stage as compared to earlier in your life, it is still a consideration to cover funeral expenses and debts, as well as to supplement your surviving spouse's retirement money.

Visit the Types of Life Insurance page for a listing of all available types and links to more information about each. Additionally, you can visit the other topics in Life Insurance Basics, including rate information, uses of life insurance, and discussions about the policy and company ratings.
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