Lifeinsurancei

Standard Life Insurance Company What Is Standard Life

Standard Life Insurance Company What Is Standard Life Insurance?

Standard life insurance is the title given to most life insurance policies that are issued with standard rates. Health status along with credit are two factors that determine whether an insured is a standard risk or a sub-standard risk for life insurance. Some life insurance companies will issue policies on people with health problems but will give them a higher table rate than the standard rate. There are companies that exist just for the purpose of insuring the non-standard risk. The premiums are much higher because of the risk.

The majority of the life insurance companies are standard life insurance companies that use the table rating method for adverse risks. When you apply for life insurance your application is sent to an underwriter. The underwriter examines all of the details on the application. It is the underwriters job to determine the risk factor and table rate for each applicant. There are several resources available to underwriters about your medical history. One such resource is called the medical insurance bureau. This is an organization that provides medical information to life insurance companies. The MIB will not always have your medical details but the bureau will be able to provide dates and times along with the nature of an illness and injury. Disclosing accurate medical history on you application is critical. Do not omit health history because that is a red flag to an underwriter and may cause your application to be rejected.

It is best to purchase as much life insurance as possible at the youngest possible age. The rates are low and most of the time you will receive standard life insurance rates. Most of the companies online offer standard life insurance rates. Some companies have preferred rates that are even lower than the standard. Standard Life Insurance Companies are common. Most companies will take a trial application on special risk applicants. This is an excellent way to see if you qualify for standard life insurance. You are not obligated to put any money down on a trail application until you are accepted by the insurance company.

Smokers life insurance Smoking can kill your wallet

When insurance brokers look out into the world they see two types of prospective customers. Every individual person fits into one of the two categories. They are either smokers or non-smokers.

Someone who occasionally smokes socially and someone who smokes everyday can end up in the same insurance category. He will pay even more if he smokes more than 20 cigarettes a day. Often premium rates for smokers can be up to three times the rate non-smokers pay. This is because insurance companies believe that smoking amplifies the risk of untimely death.

The financial penalties of smoking extend far past the price of a pack of cigarettes. In addition to the nickel-and-dime of a pack of smokes every time he runs out, the smoker endures costly consequences to lighting up.

Homes and vehicles that retain the stench of cigarette smoke lose resale value. Smokers can also be penalized when shopping for a new home because insurance companies believe smokers are more likely to burn down the house.

Smokers will also pay more for health insurance, dry cleaning and yearly teeth cleaning appointments. All of these costs add up quickly to put a hefty dent in a smokers wallet.

It isnt simply what a smoker pays in extra an expense that reduces funds, but being paid less in the first place can cause his bank account to suffer as well. Studies have shown that smokers earn up to 11 percent less than non-smokers. These figures not only take into account time wasted on smoke breaks, but first impressions as well. Smokers may be perceived as less attractive and therefore passed by for jobs.

Insurance costs arent the only money matters smokers have to worry about; however, it is a huge issue. A smoker literally burns his money away. That nicotine rush can cost thousands of pounds a year more in insurance premiums.

While saving money on insurance premiums may not persuade him to quit smoking, a smoker may not be conscious of how much the habit is actually costing him. He may even lose his job. There have been several companies in the news recently who have fired employees who smoke simply because they pay more insurance on smokers than non-smokers.

It begs the question, is it worth the cost?

But, the high cost of smoking doesnt necessarily only affect the smoker himself. Documented studies have shown that Americans spend over 60 billion pounds a year treating smoking related illnesses. Women who choose to smoke during pregnancy cost the country another 3 billion pounds a year. It also causes the deaths of 2,500 unborn babies a year and results in low birth weight and life-long complications in countless others.

Fires set by smokers who fall asleep or are otherwise careless with their habit, cost the government 500 million pounds a year. The human cost is great, as fires started by cigarettes take the lives of more than 2,000 people a year.

Smokers with group life insurance push up premiums for smokers in the same pool by 4 billion pounds a year.

Smoking is by far the most prevalent cause of untimely death in the United States today. More than 400,000 people a year pay with their money and their lives to light up a cigarette.

That quick fix can not only be deadly, but greatly reduce quality of life as well. Be it human life, depreciation of property, health factors or jacked-up life insurance premiums, the decision to smoke cigarettes is costly.

Should Your Life Insurance Policy Be Written In Trust?

According to one of the largest UK life insurance companies, just 1% of life policies are written in trust. That is disgraceful and reflects poorly on the financial industry.

Let’s explain.

If your life insurance policy is Written in Trust then, in the event of a claim, the insurance company pays out directly to the beneficiaries you name on the policy. The significance of this is easily missed.

It means that if the policy is Written in Trust, the proceeds from the policy never form part of your legal estate and are not subject to Inheritance Tax. The importance of this is illustrated by the following figures:

Take Mr A. He’s a widower and wants to leave everything equally to his two sons. He owns his home which is currently worth 245,000 with a 10,000 outstanding mortgage. His investments are valued at 52,000 and his car and other chattels are worth 18,000. He also owns a life insurance policy for 100,000 which is not written in trust. We assume that the costs of administering his estate and obtaining probate would be 5,000.

If Mr A were to die now, his estate would be worth 400,000 less Inheritance Tax. Inheritance Tax is currently levied at 40% on the value of his estate over and above 275,000 that means that the taxman will walk off with 50,000 and his sons would each receive 175,000.

Now lets assume exactly the same figures except that in this case the life insurance policy is Written in Trust with Mr A’s sons as equal beneficiaries. Because the life insurance company pays out directly to his sons, they each receive 50,000 straight away and non of the money is included in Mr A’s estate. This means that his estate is now worth 300,000 and the taxman can only walk away with 10,000. Each of his sons receives 20,000 more and tax-free!

So simply by signing a few forms, Mr A saves 40,000 tax!

Is there a catch? No all the documentation is standard and is provided totally free of charge by the life insurance company. Your broker through whom you buy the policy, should complete the documentation for you, again free of charge. All you have to do is give the details of the beneficiaries to the broker and sign the form. Solicitors are not required. In the event of a claim, the life insurance company then has to pay out directly to the beneficiaries. Job done! Poor Mr Taxman!

Even if your policy is designed to repay a mortgage, it should be Written in Trust for your partner. Then, rather than your estate receiving the money and using it pay off the mortgage, the money can be paid directly to your partner. This saves legal delays, solicitor’s and probate fees and loads of hassle. Your partner can then use the money to personally pay off the mortgage. Whether this also saves you Inheritance tax will depend on the value of your estate and how you have structured your Will.

So we believe that a life insurance policy Written I Trust is a win win situation. And there aren’t many of those around these days! We can’t see any drawbacks.

Bye the way, no matter what you decide to do, always ensure that you have an up-to-date Will.

Shop Life Insurance Rate – Getting The Best Coverage For

Shop Life Insurance Rate – Getting The Best Coverage For The Lowest Rate

The purchase of life insurance is so much easier because of the availability of so much online information. The buyer learn son much by studying the magnificent amount of web content about life insurance. Life insurance rates are easier to comprehend when you get a better understanding about the different types of life insurance. There are basically two types of life insurance that come in many different forms. Term life insurance and permanent life insurance are the two types.

Term Life Insurance is the most inexpensive form of life insurance. Term life insurance is purchased for temporary needs over a specific time period. Once that time period elapses then the policy terminates. The short term benefit is what makes the premium low in comparison to permanent forms of life insurance. Mortgage term life insurance is purchased to cover a mortgage debt over a specific period of time. A thirty year mortgage requires a thirty year mortgage term policy that has the death benefit decrease as the mortgage balance decreases. The policy terminates after 30 years when the mortgage is fully paid. You can also purchase level term policies that provide level death benefits for specific periods of time. These time periods can be as short as five year and as long as twenty years with most companies.

Permanent Life Insurance is different from term insurance because it is designed to stay in force until the death of the insured. This form of life insurance is very popular because of its inside build up of cash value. The cash value of permanent life insurance is what enables the policy to extend until the death of the insured. This cash value account is accessible to the insured. The cash can be borrowed at a very low interest rate. Universal life policies have a partial surrender feature also that requires no pay-back of the borrowed amount.

Do your online shopping for life insurance rates based on these two forms. Compare term rates with term rates and permanent rates with permanent rates and that will make your shopping a whole lot easier.

Senior Term Life Insurance

We all know that purchasing life insurance at an older age is more expensive than purchasing it while very young. In an attempt to provide affordable insurance to meet the life insurance needs of older insureds, some companies are now offering Guaranteed Acceptance Life Insurance.

Guaranteed Acceptance Life Insurance policy rates are less expensive than the traditional term insurance policies. As the name implies, you are guaranteed to be accepted for this life insurance. There are no health questionnaires to complete and no physical exams to take. As long as you pay the premiums, the policies cannot be cancelled. Additionally, you may lock your premium rate for the policy amount you want. Your rates will not change for as long as you keep your insurance.

Where’s the catch you may be asking. Well, the policies are written for a limited period of time. For example, Colonial Penn’s policies are for a two-year limited benefit period. They are available for people between the ages of 50 and 85 (This age range varies depending on insurance company and state regulation).

Generally, if death occurs during the first few years, a reduced benefit is paid or the company may return the premiums paid plus interest. For instance, with a Gerber Life policy, if death occurs by natural causes within the first two years (during the limited benefits time), the beneficiary will receive all of the premiums paid plus 10%. However, if death was a result of an accident, or if death due to natural causes occurs after the two years, your beneficiary will receive the full benefit amount. In the event of suicide (with certain state exclusions), the beneficiary will receive the amount of premiums paid only.

Most life insurance companies offer a Guaranteed Acceptance Life policy for seniors. There may be variations from state to state, but the basic premise is the same. They all offer an affordable insurance option for seniors.

Please see our list of recommended insurance quote providers below to get free insurance quotes from many providers. These sites also offer pages and pages of free insurance information.

Selling Your Life Insurance (Viaticals and Life Settlements)

Selling your life insurance is an option you might consider if you’re in a difficult financial situation for which you don’t see a close end. A terminal illness or old age could cause you to think twice about paying those hefty premiums at this stage of your life. Selling your life insurance carries with it complex implications and substantial risks, so it is important that you educate yourself regarding the big picture. If you’re interested in selling your life insurance, this is a good starting point to obtain some basic information.

Basics: Vocabulary

If you’ve already done any research on selling your life insurance, chances are good that you’ve come across two main terms: viaticals and life settlements. Both refer to the selling of your life insurance to a third party. So what’s the difference? “Viatical” is typically used to refer to the transaction involving a chronically or terminally ill insured, while a “life settlement” is a transaction involving a senior (generally over the age of 65) who is not terminally ill.

Even though you now know the difference, it does not mean that your state does. These terms might be used interchangeably, or your state might use one of them to refer to both transactions. For example, your state could use “Viatical Settlement” to refer to any type of transaction regarding selling your insurance. Be aware that this kind of ambiguity may exist in relation to the vocabulary used in the sale of your life insurance.

How it Works

Second to Die Life Insurance Policies

Usually, the death benefit from a second-to-die life insurance policy is intended to go to the children , a charity or pay taxes owed after both spouses pass away.

In the U.S. there is a marital deduction permitting you to leave an unlimited amount of assets to your surviving spouse with no taxes payable at your death. Those assets then become part of the estate of the spouse and if it includes a second to die life insurance polciy it could help pay any taxes. In Canada, there is more lenient tax treatment.

There are also tax ramifications for small businesses, which is why business partners also purchase second-to-die policies.

THE REASON TO BUY SECOND TO DIE LIFE INSURANCE POLICIES

With a second-to-die life insurance policy your beneficiaries can pay debts with the proceeds of your policy, so they won’t be forced to sell your house or liquidate assets to pay the bill.

A second-to-die life insurance policy can help to construct a financial plan reducing the tax burden of wealthy individuals by creating trusts and using second-to-die life insurance as part of the estate-planning process.

ADVANTAGES TO SECOND TO DIE LIFE INSURANCE POLICIES

1.Less expensive. Second-to-die life insurance is usually less expensive than life insurance but depends on the blend of the ages. The premium is based upon the joint life expectancy.

2.Estate Preservation. A second-to-die policy appeals to individuals who feel strongly about preserving their estates with the life insurance paying the taxes.

3.Easier to buy. It’s easier to qualify for a second-to-die policy than for individual life insurance. Since both insureds must die before the benefit is payable, the insurance company is less concerned that one of them might not be in good health.

* Builds your estate. In some cases, second-to-die life insurance is marketed as a way to build an estate, not just insulate it from taxes. Much like individual life insurance, the death benefit of a second-to-die policy can ensure that certain people receive money, even if you spend every nickel.

4.Second-to-die life insurance might make sense for people who don’t have a lot of money but want to leave an estate for their children.