Frank Walker's Blurty
 
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Below are the 5 most recent journal entries recorded in Frank Walker's Blurty:

    Monday, September 13th, 2010
    3:57 pm
    20 Year Term Insurance
    One of the great uses of term insurance is that its ability to cover areas of time when individuals really need coverage. In some cases these individuals may have basic life insurance coverage with a company as well. Term insurance is inexpensive, and for some may be less expensive than increasing the coverage on their existing policy.

    Need

    The common times of need or increased need are special and specific instances in the life of individuals. These times are set apart from the rest of life. One example of this is when having a child. Another may be when someone is seriously ill. These are not periods that last forever generally. Instead these periods present themselves and then after some time they are no more.

    For each period a specific need can be estimated. Generally this is linked to considerations like the time that is involved. For example, a child is legally under guardianship for eighteen years. This might be the basis for determining the need that would exist of the parent that supplies income were to die. Sometimes the timeframe may be longer. In other cases, possibly of adoption, the period may be shorter. Similarly the specific illness and estimated medical costs may play a role in determining the need in that situation.

    Twenty

    While those that have sufficient finances may select the thirty year term life, those with limited funds may find the twenty year more than sufficient. In most cases it will cover the individual until the child is entering their own life. It will also cover the period involved in the most grave of illnesses.

    Twenty year policies are likely to provide the buyer with a notable amount of savings as well. This is due to the fact that the insurance premium actually increases with the age of the insured individual. It is quite likely that over the course of twenty years there will be a transition from one premium category to the next.

    In the worst case there is usually the option to renew the term life policy as well. This can allow for additional coverage and time if some unexpected situation arises. Keep in mind that the new policy may have a higher premium depending on the insured individual's age.

    Term Life Considerations

    Term life of any length has special considerations. Among them are the significant savings that can be achieved. It is important to keep in mind that term life does not usually have the cash value option that other insurance policies may offer. Therefore saving some of the savings may be a good idea.

    There is also the fact that term life is not renewable forever. There may be limits regarding the number of times that the policy is renewed. In addition there is a general age limit of seventy-five years of age. Beyond this limit individuals do not typically qualify for term life insurance. Because of this it is important to plan for the time beyond the limit. There are some term policies that allow for conversion to a permanent policy. There may also be policies that will allow you to begin after that age. The premiums assessed when opening a policy at that age may be significant. This is something that a bit of planning may help with.

    For more information from Frank on how to buy life insurance and annuities, visit our Annuity site. Or if your looking for life insurance you can visit our insurance site! Feel free to check out our Insurance blog too!
    Sunday, September 12th, 2010
    3:55 pm
    Universal Life Insurance Plans
    Universal life insurance is something that has followed from whole life. The details are not that complex. The distinctions between universal and whole life are significant though. As with many well designed products, universal creates access to entire-life insurance that might not otherwise have access. Access alone does not always make a particular policy the best choice though.

    Premium

    Universal is a policy that can be maintained throughout a life. Such a time period requires special planning. Some individuals may not have sufficient money or adequate income sources to commit to a payment throughout the rest of their life. While that is precisely what whole life requires, universal offers an adaptation of that. The premium paid on a universal life policy can be adjusted throughout the course of the policy. This allows individuals that may have increased need in the future or decreased money to begin their policy at a level they are comfortable with now.

    In addition, the premium itself is known to be lower than those paid for whole life insurance. The result is that those with lower income levels may find the policy accessible. Universal premiums do remain notably higher than the premiums for term life insurance though.

    Coverage

    As touched on above, the coverage that a universal policy supplies is adjustable during the active period of the policy as well. This creates a customization that can help to save money and create convenience. In times when more insurance is needed the policy owner may not have to seek out a new policy. Instead they can simply increase the coverage that their universal policy offers.

    There are sometimes less expensive ways to add coverage though. These may include initiating a term insurance policy in addition to the universal policy. Since term insurance is much less expensive, it may be possible to get more coverage for less money.

    The Details

    There are some aspects of insurance policies that have become less standardized. The growth rate, while it may be fixed as in whole insurance or variable as in variable universal, sometimes is an option. Determining the growth rate that is best may be simple. Fixed growth is based on a set interest rate. Indexed growth is indexed, or linked, to another figure, perhaps the performance of the insurance company. Variable growth is based on the performance of the investments premium monies are invested in. One rate may be among the more common with universal insurance at a particular insurer. Any particular insurer may have the liberty to write a completely custom policy for you.

    The details of what occurs if premiums are not paid may vary as well. In some cases the cash value of the policy is used to pay the recurring fees and expenses of policy maintenance. Similarly fees may be deducted in the case of withdrawals. These fees may be significant.

    Reading the policy details is an important part of policy ownership. It should be done prior to agreeing to beginning a policy. If there are additional questions regarding the policy asking a third-party or the insurance agent may be a good idea.

    For more information from Frank on how to buy life insurance and annuities, visit our Annuity site. Or if your looking for life insurance you can visit our insurance site! Feel free to check out our Insurance blog too!
    Saturday, September 11th, 2010
    3:53 pm
    Term Life Prices
    It is important to understand that there are difference among term life policies. This is what makes shopping around a worthwhile task. In some cases the determining factor may be the specifics that you have negotiated. In many cases though you will find a variety of prices for similar policies.

    Company to Company

    Each insurance company may have a slightly different price for basically the same insurance. In many cases this is the result of fees and other differences that vary from company to company. With term life there are not typically the amount of administrative fees that can be found with other types of policies. They may still account for a considerable amount of the costs though.

    Simply comparing the costs of similar standard policies that are close to what is needed will often provide a good starting point for selecting the most economical company. Sometimes the cost can be an indicator of the quality as well. For instance, if the cost is too low or too high then the insurance may not be a good choice.

    Policy to Policy

    Even with the same or similar policies the amount of coverage and other details that vary from one policy to the next may impact the price quite a bit. Typically the less coverage, the lower the cost. Especially with term life there is a near direct correlation. There are other factors that can contribute to higher costs as well. The older the individual that is being insured is, generally the higher the price will be. This is also a standard and direct correlation with term life.

    The length of the policy may also affect the price that is paid. Individuals that agree to longer policies may actually receive a discount on the individual premiums. Especially in cases of individuals that will cross age thresholds during the coverage time there are major potential savings. This is the result of the fixed premium feature. This is another standard feature among term life policies. It can hold a premium at a low rate even when the individual crosses into a higher cost age group.

    Negotiations

    Keep in mind the general rules when negotiating your individual policy. These include the age cost rule, the company cost rule, and the length cost rule. In most cases the agent will be able to tell you if they are able to negotiate a new price. If they are not consider checking with several other companies prior to agreeing. There is nearly always an exception.

    Similarly consider researching online quotes. These can often establish a good comparison level. Using these and current average costs found online you can place the cost of a specific policy as high or low.

    Ultimately a cost can be a deciding factor. It is important to keep in mind that it is not the only consideration though. In some instances the service and other factors may make a higher cost worth it. Insurance is an important part of life. Life is an important thing. Give it some thought.

    For more information from Frank on how to buy life insurance and annuities, visit our Annuity site. Or if your looking for life insurance you can visit our insurance site! Feel free to check out our Insurance blog too!
    Friday, September 10th, 2010
    3:51 pm
    Universal Life Insurance Premiums
    This is one of the major differences between universal and whole life. The details are significant, and they have significant impacts on the experience individuals will have during the ownership of their policy as well. Despite this realities, the actual difference are fairly simple to understand. In addition there are options available that can allow for further customization of the premium during the course of the policy.

    Initial Low Cost

    Most people will find that universal life insurance offers them access to a lifetime policy with cash value features at a lower cost than other options. This is something that may initially attract someone considering lifetime policy options. By examining a bit more there are possibilities to save more though.

    Premiums with a universal life insurance policy are offered initially as a fixed premium. This can be helpful in budgeting for the future. The low cost can also help some to get more coverage with the amount that they have to spend. There is an added option that can allow individuals to get more when they can and get less when they do not need as much.

    Variability

    The feature that is referenced here is a variable premium. In some cases this refers to a premium that simply changes. In the case of universal insurance though the power of change is in the hands of the policy owner. If the individual needs more coverage then they can simply arrange to pay higher premiums. In addition is circumstances dictate that they must pay lower premiums, they can simply arrange that as well. This will typically result in lower benefits.

    This sort of variability is empowering. It is something that many may not completely take advantage of either. In the case of universal life there is a cash value feature. This includes the growth of the value in the policy. By paying more early on individuals can actually take steps to grow their money more quickly.

    Fees and Other Negatives

    It is important to understand that they amount paid in does not all go directly into your cash value. Instead there are some fees and other costs that are typically deducted. This means that there may be a difference between the typical use of the word premium and the actual premium contribution. (Premium is sometimes used to refer to any money paid to an insurance company.) Understanding how much is paid to fees and how much is paid to the premium is an important part of understanding your policy. The details should be described in the policy. In addition if you have questions about your bill and the itemized charges the agent or company should be able to help you with that.

    Even the total amount of the premiums that you pay in may not equal your payout. This is because some policies may have additional fees at the time of a withdrawal or death benefit. These should be described in the policy as well. Lastly there is the potential of value growth or loss with some policies. This can further affect the final value of the policy too.

    For more information from Frank on how to buy life insurance and annuities, visit our Annuity site. Or if your looking for life insurance you can visit our insurance site! Feel free to check out our Insurance blog too!
    Thursday, September 9th, 2010
    2:32 pm
    Term Insurance Coverage
    Term insurance coverage is basically just what the name implies. It is a sort of insurance that covers the individual for a term, or specific period. It has become one of the forms of insurance that are recommended by financial advisors. It is acknowledged as having definite benefits among the insurance community as well. There are some limitations to these policies as well. Understanding both is an important part of solid planning.

    Benefits

    It really does depend on who you ask, as to what response you will get regarding benefits. There are some standards that will likely be favorites among many potential owners. An insurance agent may be quick to point out that the entire benefit is available from the time the policy becomes fully active. This is significant. With other policies based on cash value the benefit may increase with the payment of premiums. With most term life the full benefit is available from the beginning.

    The attraction for many financial planners is that term insurance remains so inexpensive. It has been pointed out time and again that if the owner invests the savings, compared to a typical entire-life policy, with a return of approximately eight percent over their life they will have more wealth than the value of the entire-life policy would be if it had been started at the same time. That is a convincing argument for those that are focused on creating wealth.

    Term insurance has options as well. There are some policies out there that offer cash value features. These are more expensive than standard term insurance. In many cases there is no growth potential either. They are less expensive than most entire-life policies though, and they offer a return of nearly all the premiums paid in.

    Drawbacks

    Now that term insurance seems so perfect, take a look at some of the drawbacks. These policies will not cover an individual for their entire life. If the individual wants insurance beyond approximately seventy-five years of age they will need a different type of policy at that point. This is a double-whammy for some. The first negative is that they have to go shopping for insurance, the second is that they are now at an age that makes premiums more costly. There are ways to avoid some of the negative, but term insurance coverage does expire.

    Most policies do not have any value. This means that at the end of the policy the money is simply gone. This can be frustrating to some. While they are more costly, there are term policies with cash value features, as stated above.

    Considerations

    Just because it does not cost much and it is not intended to last forever does not mean that term insurance is not a serious purchase. It is important to verify the quality of the company that is offering the policy. There are unscrupulous companies, even in the term insurance market. Similarly the details of the policy are key. Read over the policy itself. Listening to the insurance agent is a good start, but the actual details are in the policy.

    Your insurance is about planning your finances after you are no longer here.

    For more information from Frank on how to buy life insurance and annuities, visit our Annuity site. Or if your looking for life insurance you can visit our insurance site! Feel free to check out our Insurance blog too!
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