Which Insurance Best Fits Your Needs – Term Life Or Whole Life Insurance Policy? | Life Insurance

There are two general types of life insurance; Term life and Permanent life. Term life is the simplest form of life insurance and can provide substantial coverage with affordable premiums for specified periods of time of one year (annual renewable term) up to 30 years. Permanent life is a form of insurance that spans your entire life. It is more expensive than Term life insurance, but allows you to build cash value.

Determining the type of life insurance to fit your needs depends on a number of factors, including:

· How long you will need the insurance

· How much you can afford to spend on insurance

· Your financial objectives for purchasing insurance

· How much risk you are willing to take

Most of the time, a medical exam is required to qualify for life insurance. But it depends on the type of coverage you're purchasing. Often, insurance companies require brief medical exams to qualify customers. This can include a basic physical exam, urine specimen, blood work, EKG, and X-ray. For high amounts of life insurance, such as $2,500,000 and up, treadmill EKGs are usually required, too. There is no cost to you for the exam, and an appointment may be scheduled at your convenience in your home or office.

Typically, insurance medical exams are done by paramedicals who are licensed health professionals and who are often independent contractors hired by the insurance company. Paramedicals can also perform employment physicals and drug screening. They're quick at what they do you'll usually get a call within a day and are examined within three days.

Whether or not a life insurance company requires a medical exam from people who are applying for insurance really depends on the company's underwriting requirements and the type of policy you are purchasing. Insurance companies' criteria are based on how old you are and how much insurance you're applying for.

Certain health conditions simply cannot be masked, but to obtain the best possible results, here are some recommendations.

· Get a good night's rest the night before your exam.

· Don't drink for at least eight hours before the exam.

· Don't smoke or chew tobacco for at least an hour before the exam.

· Avoid coffee, tea, or other caffeinated drinks like cola for at least one hour prior to the exam.

· Limit salt intake and high-cholesterol food 24 hours before your exam.

· Don't engage in strenuous physical activity 24 hours before the exam.

When deciding which type of life insurance would best fit your needs it is also important to consider death benefit, premium and cash value. Term life insurance provides a death benefit for a stated period of time, while Permanent life insurance provides a death benefit for as long as you live. Permanent life insurance premiums are generally level and payable for life. Term life insurance premiums will increase over time (at each renewal) and are payable for a specific period of time. Term life insurance does not accumulate cash values and does not earn dividends. Permanent life insurance accumulates guaranteed cash values and its policies may be eligible for dividends.

When it comes to choosing life insurance one of the most important things is to look for a policy with benefits and premiums that match your present and future needs and ability to pay. The correct product for your situation may be a combination of permanent and term life insurance, since most people have a need for both temporary and lifetime protection. This entry was posted in Uncategorized by. Bookmark the permalink. Proudly powered by WordPress

Which Insurance Best Fits Your Needs – Term Life Or Whole Life Insurance Policy? | Life Insurance

Are You Feeling Peer Pressure To Buy Whole Life Insurance?

Are You Feeling Peer Pressure To Buy Whole Life Insurance?

by Hank Coleman

A friend of mine recently complained about an old college roommate who was trying to pressure him to buy whole life insurance. He was having trouble figuring out how to tell him no, because they'd been so close back then.

This is an all-too-common occurrence for young professionals in their late 20s and 30s. This is the time when friends and family are test-driving new professions like sales gigs, for example.

Many insurance brokers push whole-life policies because they provide them with the juiciest of commissions.

Several governmental surveys suggest that the average American will change jobs more than 11 times in his life. For many of us, it's only a matter of time before we take a sales job that pays on commission.

Why They Peer Pressure You to Buy Whole Life Insurance?

For many people starting off in the financial services industry, the mantra is you eat what you kill. They have to sell their product, insurance policies, investments, brokerage services, etc., because the lion's share of their paycheck comes from commissions on the sales they bring in.

But when people take that first sales job, they're not likely to have a big, established client base to sell to. So they turn to the contacts they  do  have friends, family and coworkers whom they bombard with pitches to buy products that might not always be the best fit for them.

Why Whole Life Insurance Gets a Bad Rap

Most Americans are just fine with a term life insurance policy a relatively low-cost safety net to to protect the people who depend on your income and other contributions should you die prematurely.

How much you need depends on the expenses you expect it to cover if you're responsible for mortgage payments, or expect your income to fund your children's college tuition, you'll need more. But when those needs are in the past, you often don't need much life insurance.

A whole life policy is with you for your entire life as long as you make the insurance premiums. But what do you need that money for if your kids are grown and your mortgage is paid?

A 20- or 30-year term life insurance may be a better option for many families. And it's a whole lot cheaper. A $100,000 whole life policy for a healthy 20- or 30-something may cost about $150 per month. But the same person can often get a 30-year term-life-insurance policy that pays out $500,000 upon death for as little as $20 a month.

Many insurance brokers push whole life policies because they provide them with the juiciest of commissions. And of course, every family's situation is different. For example, there are a few interesting uses for whole life insurance that make it a good deal for wealthy individuals. But the vast majority of Americans would benefit more from term life policies.

We Don't Want to Disappoint Our Friends

Our friends mean well. And it's hard to tell them that we don't want to buy the whole life insurance they're selling. That's the problem my friend recently ran into. How do you tell someone you've known all your life someone who was a groomsman in your wedding that you're not interested?

Most of our friends are just trying hard to make a living. They want to succeed. And we want them to succeed in their new professions, but not at the expense of our own financial security.

So, no, I don't want to buy whole life insurance, nor a life insurance policy for my new baby, who, though adorable, has no income to replace. Far too often, it feels like a multilevel marketing pyramid scheme where the brokers and those at the top are making money feeding off those of us at the bottom.

My brother-in-law recently joined the ranks of investment managers at a large national brokerage house, where he'll have to sell the brokerage services in order to earn a commission and a paycheck. It's only a matter of time before he approaches his sister and me for a sale.

About Hank Coleman

Hank Coleman is the founder of Money Q&A, an Iraq combat veteran, a Dr. Pepper addict, and a self-proclaimed investing junkie. He has written extensively for many nationally known financial websites and publications. Hank holds a Master's Degree in Finance and is currently pursuing his Certified Financial Planner credentials. Email him directly at Hank[at]MoneyQandA.com.

Are You Feeling Peer Pressure To Buy Whole Life Insurance?

Difference Between Term Life And Whole Life Insurance | Waterway Fin.

The Difference Between Term Life And Whole Life Insurance

Posted on April 2, 2014 by Chris Herath 0 Comments

One of the key factors in purchasing a life insurance policy is understanding the difference between term life and whole life insurance. Many people end up purchasing the wrong policy and are left with a policy which does not fill their needs, or they are paying too much for. One of the basic principles of life insurance is understand the difference between term life and whole life insurance. They both serve individual purposes at different points in your life, and you may even finding yourself needing both methods of life insurance protection. The way these policies are designed to perform, and the duration of each make them very different from each other.

The post will describe the basics of both term life and whole life insurance, cases when they should be used, and the advantages and disadvantages of each type of policy. Our goal at Waterway Financial Group is to educate consumers before they make their purchase so they can do it right the first time around. When someone does not know what they are buying they end up with wrong product and their family or business is not protected the way it should be with a properly designed life insurance plan. 

Basics Of Term Life And Whole Life Insurance

The basics of understanding the difference between term life and whole life insurance is to understand how each one works. Term life insurance is designed to be kept a certain amount of years, or more commonly referred to as the term of the policy. Term policies are designed to be temporary solutions which can range in duration from 1 year to 30 years. You can set the duration of the term when you apply for a policy based upon your needs whether they be short term or long term needs. At the end of the term your rates will skyrocket meaning the policy will be too expensive to be kept so most people will discontinue the policy at this point. Term life insurance does not have cash value building up in the policy like whole life insurance, as term life insurance is designed strictly for the death benefit.

Whole life insurance differs than term life insurance since it is a permanent life insurance policy. A permanent life insurance policy is designed to be kept the rest of your life regardless of how long you live. These policies will cost more of a premium since they are designed for the long term. They also have cash value which is money which can accumulate in the policy and can be accessed or used to pay up the policy so later in life you may not have to pay premiums. Whole life insurance is a more expensive product, but it does have its advantages.

Deciding Between Term Life And Whole Life Insurance

Most people initially have a hard time deciding between the difference between term life and whole life insurance in the beginning. However, when you ask yourself some questions you can get a better idea of which type of policy will work best for your situation. Some of the questions which will lead you to make a decision between the difference between term life and whole life insurance can include:

How long are you looking to keep the policy?

How much coverage do you need?

Are you willing to pay extra to accumulate cash value?

If you are looking for a policy which will last you the rest of your life than a whole life insurance policy could be your best option. If you are looking for a policy to cover a mortgage, debts, or to protect yourself while raising children than a term policy will be significantly cheaper and provide you with the coverage you need.

If you need a significant amount of coverage than term life insurance may keep your cost down. Typically whole life insurance policies are sold in lower face amounts due to the cost of these types of policies. However, term insurance allows you to get higher face amounts at lower premiums.

We mentioned earlier whole life insurance accumulates cash value which can have its advantages later in the policy. If you are not interested in the cash value accumulation than term is your best option.

Premium Difference Between Term Life And Whole Life Insurance

When shopping for life insurance we understand for most people it comes down to price. The best way to shop online is through a site like this who features an online quoting tool where you can compare the difference between term life and whole life insurance. This comparison can be done with just a few clicks. If you would like a more personalized quote outlining the difference between term life and whole life insurance please don't hesitate to give us a call. Filed Under: Life Insurance Prostate Cancer Life Insurance Sarcoidosis And Life Insurance

Difference Between Term Life And Whole Life Insurance | Waterway Fin.

A Free Term Life Insurance Quote Is Just Easy To Obtain 

By searching on the internet for life insurance, you will get a term life insurance offer with no obligation to purchase. To be able to get the free term life insurance price, you complete the form on the appropriate page of the life insurance company site. In order to get the life insurance you need you do have to make sure honest answers are provided by you to any or all the questions.

Then a realtor will carefully review the program and email a quote to you based on the term of the policy and the level of the death benefit, once the company receives your request for a free term life insurance quote. You should not base the offer you get on that of a friend or another family member since every individual is different in his/her needs. Since you are buying inexpensive term life insurance, you do need certainly to request free estimates from at the least three companies. Browsing To remove frames likely provides lessons you can give to your girlfriend.

Term life insurance is just advantageous to the life of the period. At the conclusion of the term, you've the option to continue the plan, but as you started with you may not get it for the exact same free term life insurance price. It is because how old you are has certainly changed and your requirements with regards to money have changed. Nevertheless, you still would like to get the most effective prices easy for low cost term life insurance. Learn more on the affiliated article Click here: commercial gas prices.

You may not have to be in excellent health to acquire a free term life insurance offer. In fact, you will get low cost life insurance without also having a medical examination. Even if you do have lethal diseases, you can get a free price for term life insurance nonetheless it might not be the reduced price term life insurance you are hoping for. That is because your likelihood of dying within the word are much greater because you are in an increased risk category. Even when the costs are only a little higher, you're still leaving something for your family and to pay for your funeral..

A Free Term Life Insurance Quote Is Just Easy To Obtain 

Beware Of Cheap Term Life Insurance Quotes | Waterway Financial Group

One of the first things people do when looking for a policy is they start searching for cheap term life insurance quotes, but is this the best option? When it comes to shopping for most products I do the exact same thing. However, life insurance is much different than most products and services and can come in many different varieties. This can make it very tough for the consumer to know even what they are purchasing at times. Many people purchase the cheapest policy they can, but it ends up costing them much more money a few years down the road. Some important steps can be taken to be sure you are not getting ripped off when shopping for cheap term life insurance quotes.

Life insurance carriers use a variety of different tactics to show you cheap term life insurance quotes. The majority of these policies are legitimate, but often times they come with stipulations upon the death benefit or premium increases in the near future. For a few dollars more a month you can purchase a policy for a much longer duration, and from a highly rated company. The important thing is to understand what you are purchasing, why you are purchasing it, and have looked at the illustration to make sure you will not have any surprises in the future.

Cheap Term Life Insurance Quotes

I am like every consumer, I want the best deal when it comes to purchasing my life insurance and searching for cheap life insurance quotes is one of the first steps. However, I also want a policy which is not going to increase the premium on me when I am not expecting it, or provide the protection I need for myself and my family. I also want to paired with a reputable company who has a solid history and a good financial outlook of still being around when I need it. If I did not work in the life insurance industry I would probably fall for one of those television commercials where they advertise life insurance for a few cents day. Even worse, I may even click on the internet ads which advertise cheap term life insurance and get bombarded with hundreds of calls from agents.

I have found when it comes to life insurance, if you find a policy which is WAY cheaper than any other alternatives than something is probably different with this policy. Life insurance carriers do differ on premiums, but generally they are within the same ballpark. The real price differences come in when working with high risk insurance conditions such as diabetes, cancer, and family history. If you have any type of medical history, family history, or participate in any high risky activities these low cost carriers will either decline you, raise your prices very high, or reduce your death benefit.

Difference Between Cheap And Competitive

A fine line exists between a cheap policy and a competitive policy. In my mind cheap makes me think this is something I would not want to cover my family with. When it comes to life insurance, I do not want to mess with a company without a history of good costumer service, solid financials, and good pricing. This is why I would choose to work with a company who has an AM Best rating of A, or higher. You may be able to get cheap term life insurance quotes from a company with a lower rating, but this is all we offer at Waterway Financial Group.

I would also look for a company who is offering a term life insurance policy where the premium, and the death benefit is locked in for the number of years in the term. This means not messing with a one year term policy which is going to increase in the near future. This will save you money in the long run, instead of just for the first few years. Make sure the death benefit also covers you for the amount which you need. A good way to get this information is by looking at a policy illustration.

When you choose to work with a company, such as us, you are obtaining quality and competitive life insurance, not just cheap term life insurance quotes. You can compare quotes from over 50 carriers in just a few clicks, while also being sure you are being paired with a strong company.

Beware Of Cheap Term Life Insurance Quotes | Waterway Financial Group

 the difference between term and universal life insurance?

What is the difference between term and universal life insurance?

By Investopedia Staff on February 26, 2009   A A A Filed Under: Casualty Insurance, Health Insurance, Life Insurance, Property Insurance Term life insurance is the most basic of insurance policies. It is nothing more than an insurance policy that provides protection for accidental death and possibly debilitating injuries for a specified period of time. If you or your beneficiaries do not make any claims during the term of such a policy, the policy will typically expire worthless. Generally, term life insurance is cheaper to buy during the earlier years of life, when the risk of death is relatively low. Prices rise in accordance with increasing risks and advancing age.

Universal life insurance falls under a broader category of policies sometimes referred to as cash-value, or permanent, insurance. These types of insurance policies combine death benefits with a savings component or cash value that is reinvested and tax deferred. The savings portion is accumulated throughout the life of the policy and can sometimes be cashed in at some future point. Because these policies are permanent, any early termination of the contract by the policy holder is subject to penalties. During the earlier stages of your life, a large portion of the premium paid to this policy is routed to the savings component. During the later stages of life, when the cost of insurance is higher, less of the premium is devoted to the cash portion and more to the purchase of insurance.

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For example, if a 20-year-old adult purchases term insurance, his or her premiums might be $20 per month. With a universal policy, the same 20 year old might pay $100 a month, with $20 of that going toward death insurance and the remaining $80 going to the savings component. When the person reaches age 45, term insurance might cost $50 per month; however, with universal insurance, the person would still pay $100 a month, although a lower portion of this would go into the savings component.

According to most unbiased experts, term life is more appropriate for the average individual looking to insure him or herself against unforeseen events. However, this does not mean that term life is better for everyone. For example, individuals looking for the tax advantages associated with cash-value plans are not concerned with the prohibitive costs related to those plans, and individuals who start families later in life and need insurance to protect their loved ones may also decide that cash-value insurance is more suitable than term life.

 the difference between term and universal life insurance?

Term Life Insurance vs. Whole Life Insurance 

Term Life Insurance vs. Whole Life Insurance

If you are interested in buying life insurance, you will inevitably compare term vs. whole life insurance. This is because all life insurance policies are either term or permanent (whole) coverage. Both term life and whole life insurance have their pros and cons, and there are several important differences between them that might make one better for you and your family.

Fundamentally, term life insurance only provides a death benefit; it's pure insurance alone. Term life protects you for a predetermined period of time, such as 5, 10, 20, or 30 years, but does not offer an investment option or build cash value. It is cheap for companies to offer, and that is reflected in its affordable rates. Statistically, less than 5% of term life insurance policies ever result in a payout, which may seem wasteful and discouraging until you realize you have to die for your family to earn a death benefit payout.

On the other hand, whole life insurance is permanent and builds cash value over your lifetime because it has an added investment component along with its pure insurance benefit. The cash value can be used as a forced savings account for retirement, a down payment on a future home, or a gift to your heirs. Families can even use the whole life cash value as collateral for a low-interest loan that does not have to be paid back the company simply deducts the balance owed from any future payout.

Unfortunately, term life insurance is cheap and whole life is 5 to 10 times more expensive. So, is whole life insurance a good investment or is pure term coverage the better policy option for you?

What Is Term Life Insurance?

Your term life insurance premiums guarantee one very specific thing: a set death benefit payout in the event of your death only while your policy is active. This means that term life coverage functions as a parachute. If you have calculated your life insurance needs correctly, a 20 or 30 year term life insurance policy will cover your family's living expenses and liabilities during the most financially vulnerable time for you. For most American families, this is when children are still young, the mortgage hasn't been paid off yet, and a significant retirement nest egg has not been accumulated. During these years, an untimely death can be financially disastrous.

Both term and whole life policies are contracts. In the case of term, the insurer lives up to their end of the contract by paying the promised benefit to your beneficiaries when you die. Yes, this means that the contract can expire without the company actually paying at all, even though for you to live up to your half of the contract, you must make each payment, and on time. Term insurance has monetary value for you and your family only if you die, but obviously, the peace of mind and financial security of protecting your family is the purpose to begin with.

Term Life Insurance Definition

Here is what you need to remember about the basics of term life insurance:

Premiums:  fixed for the term period, in most cases

Death Benefit:  fixed, but can be decreasing or increasing if you choose

Time Period:  temporary, most policies are for 20 to 30 years

Cash Value or Investment:  none

Convertible Term Life Insurance

Among term life policies is a kind of hybrid policy called convertible term insurance. Convertibility indicates that you have the option to exchange, or convert, your term coverage for permanent life insurance in the future. The new policy will be of equal value and the conversion will happen without a medical exam or underwriting. As you might expect, this flexibility will cost you more than traditional term life and is no longer available once you turn 65 years old. The convertibility period is usually between 10 and 20 years after the policy is issued, so you have a deadline to decide.

Term Life Insurance Pros and Cons

When considering term or whole life insurance, it is crucial to understand the pros and cons of term life insurance.

Pros.

Cheap term life insurance is cheap and affordable so families can purchase more coverage on a budget. Whole life policies cost 5 to 10 times more.

Easy To Understand term protection offers straightforward terms and conditions. You buy insurance and if you die while the coverage is active, your family is paid out the death benefit. Additionally, once your term policy is in place, your health is not an issue. Changes in your health during the tenure of your term do not affect your rates because premiums are fixed. There are no interest rates or returns to manage because there is no investment option.

Minimal Commitment if you ever stop wanting or needing term life insurance, just stop paying the premiums and your contract expires. Otherwise, with permanent or whole life, you may incur penalties, fees, and taxes.

Flexibility when it comes to the type, amount and length of coverage, consumers have a broad range of choices. Policyholders can even buy cheap term life insurance now and convert it into permanent protection in the future.

Investment Options although term contracts do not have a cash value feature, the cheaper premiums allow you to take your savings and invest in other assets, such as equities, mutual funds, bonds, real estate, commodities, etc.

Cons.

Outliving Your Contract some consumers believe that, if they outlive their policy, they will have thrown away their premiums. We wish you a healthy, successful and happy life, one in which your family will never need the death benefit.

No Cash Value or Equity if you need help saving for retirement, term life does not offer an investment opportunity. You are simply paying for insurance coverage. When compared with whole life insurance, term life does not have an inherent value unless the benefit is paid.

High Renewal Rates because the cost of term life insurance is largely based on your age, health and risk profile, if your policy expires and you feel the need to renew for future coverage, your rates will be significantly higher. This is why insurance experts recommend consumers buy 20 or 30 year term life insurance when they are young and healthy.

Premiums May Change depending on the type of term policy you purchase, rates may vary. Most policies guarantee level rates for the complete term period, while others offer fixed rates for the policy's first year and increase afterwards. This is something you should research carefully and ask your company about.

What Is Whole Life Insurance?

Whole life insurance, a type of permanent life insurance, provides death benefits like term life insurance does. The death benefit is fixed, however, permanent policies also offer a cash value or investment component. This is because a portion of your premium is diverted to the cash value, acting like a forced savings account. The insurance company then guarantees a fixed rate of return on your cash value, averaging around 4% depending on your provider. Over time, your cash value increases, making whole life insurance a low-risk and stable investment.

As you might expect, the premiums for whole life coverage are higher, costing up to 10 times more than term life. Although term is your cheapest option, whole life insurance rates do not change over time because policies do not expire. Whole is active until your death, unless you withdraw the full cash value or stop paying the premiums.

In the case of whole life insurance, the company's contractual obligations are a bit different. As the policyholder, you complete your half of the contract by making timely, lifelong annual payments. Your insurer completes their half of the contract by paying your beneficiaries the agreed sum when you die, no matter when, assuming you don't cash out and/or void your policy.

Whole Life Insurance Definition

When considering whole life insurance, here is what you need to know:

Premiums:  permanently fixed, but a policy can be paid off in a lump sum or modified time period

Death Benefit:  fixed, minus the net balance of outstanding loans using the cash value as collateral

Term Period:  permanent; as long as your premiums are paid, the contract cannot be canceled or voided

Cash Value or Investment:  yes; the company pays a fixed interest rate, usually around 4%

As with term life policies, medical examinations are an issue at the time you purchase your policy, and your answers on any questionnaire will be confirmed by your physical exam and blood test. However, in contrast to the term life policy, as long as you maintain your whole life policy, you will not have to submit to a medical examination again. In other words, because there is no need for renewal, you do not need to worry about your health or premiums in the future.

Whole Life Insurance Pros and Cons

Although term may be the most commonly purchased policy, every family's financial situation is unique. Compare the pros and cons of whole life insurance to determine whether it fits your future goals.

Pros.

Forced Savings Account many Americans lack the discipline or budgeting skills to save. Whole life insurance commits a family to planning for long-term financial security.

Tax-Deferred Investment your insurance company pays you interest on the investment portion of your policy, and the gains accumulate tax-deferred. Unlike stock portfolios, mutual funds, real estate, or other investments, you do not pay capital gains taxes. This is similar to a Roth IRA, yet there are no restrictions or penalties on when you can withdraw your money.

Tax-Free Withdrawals  - whole life policies are unique because they permit you to borrow against the policy's cash value, tax-free, during your lifetime. This ability to borrow against the policy is one of the features that you pay more for. Just remember, if the loan is not paid back into the policy, the net balance owed will be subtracted from your death benefit payout.

Consistency your  death benefit and premiums are locked-in and fixed. Many whole life policies even set the interest rate on the cash value permanently.

Cons.

Long-Term Commitment, No Flexibility the downside to so much predictability is that whole life policies are more restrictive and unyielding than term life policies. The value of the policy never changes, but neither do the payments no matter what. Whole life insurance is permanent coverage. If your financial situation changes and you cannot afford the premiums, all you can do with your whole life policy is decrease its value by borrowing against its cash value or stop paying the premiums, suffer a surrender penalty, and lose all your protection.

Fees, Expenses, and Costs whole premiums aren't cheap to begin with, and not all your money goes directly to paying for insurance and growing your cash value. Fees and charges include mortality, administrative expenses, surrender penalties, state premium taxes, withdrawal fees, etc. These expenses lower your overall contribution to the policy's cash value.

Buying Life Insurance The Medical Exam

Most term and whole policies require medical examinations for the underwriting process. The exceptions are no exam life insurance and guaranteed life insurance . Insurance companies offer free life insurance quotes based on your personal information and medical history. However, final premiums depend on your current, verified health so be honest on your application/questionnaire because any material misrepresentations will come to light after a physical health exam and blood test.

Factors That Affect Life Insurance Rates

Your Age, Gender, and Occupation

Current Health and Weight

Your Medical History

Family Medical History

Smoking or Drinking Habits

Dangerous Hobbies or Lifestyle Choices

For example, imagine that you are 35 years old and have two young children. You choose a 20 year term life policy to ensure that your children will be adults by the time the term expires. You calculate that $500,000 is enough to cover any possible needs for your children and spouse, and the insurance company quotes you an annual rate of $250. However, after you undergo your physical examination, your actual yearly premium increases to $300, even though you are currently healthy. The increase is a result of your family's medical history, indicating you are at high risk for diabetes and heart disease. Assuming this is about the same price other carriers will offer, you can either agree to the premium increase or not buy coverage at all.

Once your term life policy is in place, your health is not an issue. Changes in your health during the tenure of your term do not affect your rates. Of course, health changes can and usually will impact renewal rates; in fact, health changes for the worse can even make renewal of term life policies impossible in some cases.

The Final Word Our Recommendation

Whole life policies are significantly more costly because they guarantee a pay out and offer an investment component that accrues value at a tax-deferred rate. However, most experts agree that investing through your whole life policy just isn't as wise as using stocks, bonds, index or mutual funds, IRAs, 401Ks, real estate, retirement accounts, etc. In fact, whole life insurance is most valuable as an investment for those lucky few without consumer debt, with incomes of at least $250,000 to $300,000 annually, and with sufficient savings for all anticipated major purchases, such as tuition and real estate. Generally speaking, whole life insurance is used by high net worth individuals seeking tax-advantaged investments.

If this isn't you, keep your investments and savings separate from your insurance coverage and buy a term life policy. By purchasing cheap term life insurance, you can take the difference in premiums and invest in other assets, such as an index fund, stock portfolio, and/or investment property. The stock market has returned, on average, approximately 9% over the last 100 years, a return far greater than the guaranteed 4% you will earn, after fees, on your whole life cash value. In the long run, your retirement nest egg will generate higher returns and provide more income. Our recommendation buy affordable term life insurance and invest your money outside of an insurance policy, unless you are absolutely certain whole life is the right policy for you and your family's needs.

Term Life Insurance vs. Whole Life Insurance 

Frugal Honey: Choosing Between Term and Non-Term Life Insurance

Choosing Between Term and Non-Term Life Insurance

If you read personal finance blogs or books long enough, you will surely encounter the”Buy term, invest the difference” phrase. Which basically means to buy basic, no-frills insurance and invest the difference of what you would have spent on non-term life insurance (i.e. whole life, universal and their many permutations) in mutual funds or stocks, since that will usually guarantee a better yield than”investing” with non-term insurance.
At first glance this does seem like the correct move, but is it the right move for me? If there's anything I've learned from my Registered Financial Planning (RFP) class is that there is no cookie cutter solution for everyone. Needs are different and so it follows that solutions will likewise differ as well.
For example, I've been thinking of getting life insurance for my husband and so I looked at term insurance  with daily hospital income from PruLife. Here's the table of payments sent to me (this was sent last year, but let's just assume that the price is the same or if there is an increase that it is only minimal):

If I get term insurance of Php1,000,000 (Package 3) for my husband until he turns 65, this is how much we'll be spending:

Year 1= 45y.o. =  Php10,017.00 Years 2- 6 = 46 y.o. to 50 y.o. = Php74,270 Years 7-11 = 51 y.o. to 55 y.o. = Php114,855 Years 12-16 = 56 y.o. to 60 y.o. = Php178,145 Years 17-20 = 61 y.o. to 64 y.o. = Php220,172
Total premiums paid for 20 years= Php597,459
On the other hand, the quotation I got from the same company for basic whole life insurance for the same amount of Php1,000,000, excluding daily hospital income, for my husband is Php34,690 per year. If we avail of that policy and pay for the same 20 year period, the total premiums paid will be: Php693,800 (Php34,690 x 20 years).
That's a difference of Php96,341 between the premiums paid for term and basic whole life, which is honestly quite a negligible amount when spread out over a 20 year period.
Furthermore, a basic whole life policy has a built-in savings component which you can access if you need cash. Term insurance does not have the same advantage and whatever you pay for the year is considered gone if you don't kick the bucket within that year.
I realize though that my analogy isn't exactly apples to apples, because my example for whole life insurance does not have a daily hospital income rider and if it did have the same rider as the term insurance, then the premium will most definitely be higher. But my point is, do not discount non-term insurance right away by chanting”Buy term, invest the difference” like an automaton. See for yourself first if it will indeed be to your benefit to buy term.
From what I see, these are the people who will get the most from term insurance:
1. Those at the start of their careers or married lives, because it's exactly those people who are just starting out in life who need protection more (i.e. mortgages, car loans, young children); 2. Those who cannot afford the higher premiums of a basic or variable life insurance, but want the same degree of protection for their beneficiaries; and 3. Those who will actually invest the difference in stocks or mutual funds.
As always, buy insurance because you want to insure your earning capacity for your family's sake. Never do so for investment purposes. Investing should only be a secondary consideration when it comes to taking out a life insurance policy, because let's be real, there are other vehicles that outpace the returns of insurance funds year in and out, despite what your insurance agent might hint at.
If you have dependents and you want to secure their future, protect them by taking out life insurance on yourself or your spouse. There are no ifs and buts about it.

P.S. I do not claim to be an insurance expert by any means, neither am I affiliated with any insurance company. These are just the ramblings of an ordinary person who takes insurance coverage seriously. 

Frugal Honey: Choosing Between Term and Non-Term Life Insurance

How to choose the best life insurance online

            

How to choose the best life insurance online Here's some free information on how to choose the best insurance online without getting scammed:

Many people wonder why they should invest in life insurance. The fact is when you pass away and do not have coverage or money; your loved ones must take the burden of paying funeral costs, arranging, and so on. The cost of funerals is costly, so this is unfair to your loved ones. Life insurance will cover you, and will offer some stress relief in the event you die on funeral costs.

Moreover, if you pass on, your family will have to pay your mortgage, car payments and so on. Do not let this happen. Some life insurance policies will offer you unemployment coverage, burial, mortgage coverage and so on.

Life insurance plans will protect you and your family. You can find affordable plans online so there is no reason not to seek coverage. Some life insurance plans will cover debts you owe, expenses and so on. You will find life insurance plans that will cover all your estate costs too.

Life insurance often includes the cash value plans and the term life policies. Cash value will provide you coverage for the course of your life. In short, this is the permanent plan whereas term life is a plan that when it expires you must renew the policy. Obviously, the cash value is the better choice.

Cash value life will offer you benefits that will cover you in the event you pass. You have asset value that attaches to this plan. In other words, you have lifetime coverage at some of the best rates on insurance. In short, this plan will protect your financial interest. You have options to with some term life insurance. Some plans will allow you to request a conversion to change your plan to a cash value plan. Some term life plans will not give you this option.

You have other options with life insurance plans, but the cash value is obviously one of the better choices. Still, you can go online to use quote system at the insurance sites to find great rates, comparable costs, and several types of insurance plans.

If you are an employer, looking for group insurance coverage you will find a wide assortment of policies online also. Cobra, term life (group option) and other plans are available. Use the quote system to find the best rates on group life insurance. Check the packages offered, since some insurance plans give you better rates and benefits than other plans will.

Life insurance is important. To make your family's life easier, go online and search through the different plans to find what works best for you. Get the protection you and your family both deserve

How to choose the best life insurance online

Term life insurance that pays before you die 

Term life insurance that pays before you die

When you think about a life insurance policy you think of it as a way to provide income to your family when you die, right? Of course, there are whole life and universal life insurance policies that can offer access to cash value while living after a certain number of years and amount of premium paid. However, these are often out of financial reach for many people and do not fit into their financial planning. For most middle income families a term life insurance policy is going to be the life insurance policy of choice because it provides a large death benefit for a low cost. But, once again, it only provides a payout at death, right? 

Not anymore. There are now term life insurance policies that can provide financial protection against critical, chronic, and terminal illness. For example, what kind of financial state would your family be in if you were diagnosed with cancer, became paralyzed in an accident, or were diagnosed with some other disease that left you unable to fully take care of yourself? The death benefit from a TERM life insurance policy, issued by some companies, can now be accessed while you are living if you are facing a chronic, critical, or terminal illness.* In other words, term life insurance now offers another layer of financial protection against the unknowns of life bringing greater peace of mind and financial security during life's most difficult moments.

*Not available in all states. This entry was posted in Life Insurance. Bookmark the permalink. Speed up the life insurance application process Can your term life insurance do this?

Term life insurance that pays before you die 

Is Term Life Insurance for Seniors over 60 a Smart Buy?

Is Term Life Insurance for Seniors over 60 a Smart Buy?

When you are in your 60's and looking for life insurance should you buy term life? The answer is not a simple yes or no. It might be a smart purchase and it might not! There are two very important factors to consider. Who or what are trying to protect and where is your budget for this coverage? Let's look deeper.

Term Life Insurance for Seniors

Just to be clear, level term life insurance has a premium and a face amount that do not change for the entire term period. This is usually the type of term life insurance we recommend. After the term period has expired the premium will skyrocket and be unaffordable.

Here's what's available in your 60's:

10 year term- seniors through age 80 can purchase. Many carriers offer these policies. If you smoke, some carriers limit purchase to age 70 or 75.

15 year term- available for seniors through age 75. As with a 10 year policy many carriers offer, and they may limit age for smokers.

20 year term- a few carriers offer for seniors through age 70, many more through age 65. Smokers again will often see a lower age limit.

30 year term- not available in your 60's.

Now you understand how term life insurance works. Let's talk about the permanent options next.

Permanent Life Insurance for Seniors

There are 2 main types of permanent coverage available.

Universal Life Insurance- is a permanent policy that is very flexible. It can be structured to last your lifetime with no cash accumulation- essentially a term policy for life. This is usually the least expensive option. There are many different kinds of universal life insurance and that is a discussion for another day. These policies are available up to age 90, although you may be limited to how the carrier will rate you. (Age may impact you qualifying for the best ratings.)

Whole Life Insurance- is a permanent policy that amasses cash value. Although you can borrow from that value, it may affect policy guarantees so you want to be careful about that. Final expense policies are small whole life policies. They have easier underwriting guidelines and many people who cannot qualify for traditional policies can qualify for these type of policies.

Now we should consider your needs for insurance.

What are you trying to do?

There are many reasons to purchase life insurance in your 60's. What your goal is will help determine your first choice of policy. Some examples are:

Final expense protection- you want a small permanent policy to cover funeral expenses. A whole life final expense policy is most likely your best option.

Protect a spouse- the most comprehensive coverage would be a permanent policy- probably a universal life with no cash accumulation. These policies require full underwriting, so the next question would be your health. Can you qualify? And then can it fit your budget?

Protect a special needs child- the same as protecting a spouse. You want a policy that will last your lifetime if you can get it.

Estate Tax Protection- you would want a permanent policy. No cash accumulation needed. It's particularly helpful to cover inheritance taxes so your heirs don't need to come up with the cash.

Mortgage or debt protection- a term policy might be sufficient. It depends on your exact situation.

You need coverage for a specific time period- that one's easy- term life is your least expensive option.

Other Considerations

This is where your age, health and finances speak up. You have to be comfortable with your insurance premiums. No one wants to be insurance poor! Talk to your independent life insurance agent. They can help you determine the optimum policy to fit your needs and your budget. Independent life insurance agents help make this process easy.

The Bottom Line

Whether you're a senior who needs life insurance for 10 years or for your lifetime it's important for you to fully understand what you are buying. I know you want the best price possible, so talk to your independent life insurance agent. They can help you navigate the sea of choices and help you get the best bang for your buck and the best choice for your needs.

Author: Lenny Robbins.

Is Term Life Insurance for Seniors over 60 a Smart Buy?

What Happens At The End Of Term Life Insurance

Understanding What Happens At The End Of Term Life Insurance

Many people purchase a term life insurance policy because they have a life insurance need which extends 5 years, all the way to 30 years. Although this does not seem like short term, it is considered a temporary, or term life insurance policy. As humans, we are typically procrastinators so many people do not think what happens at the end of term life insurance since it is so far away.

Proper life insurance planning is not just about today. It is about your future.

Term life insurance fills the life insurance gap for a specific number of years and is great at filling temporary solutions such as:

Income Protection

Mortgage Protection

Business Obligations

Educational Costs

Final Needs

Term life insurance is there for the what if's and will provide the safety net your family needs in the worst case scenario.

The good news is, statistically most people will never need to use their term life insurance policies because they will go on to outlive their policy. So the majority of people will be left asking what happens at the end of term life insurance.

Premium Increases

One of the things we can all agree upon is that time flies. One day you are purchasing a 20 year term life insurance policy, and the next day you are receiving notice of your premiums increasing because you are a month away from your 20 year policy anniversary.

This is the moment when most people reach out to us, because they are facing a premium which is 10x more expensive than what they have been paying over the past 20 years.

The easiest answer to what happens at the end of term life insurance is very large premium increases. For most people these premium increases are so drastic they are no longer to afford paying for the policy. This is the point exactly, as life insurance carriers want you to stop paying for this policy and get a new one.

At this point you have a few choices. You can:

Pay the much higher premiums which will continue to increase (not recommended in most cases)

Obtain a new life insurance policy

Convert your existing policy to a permanent life insurance policy

Drop coverage completely

For many people conversion is a very attractive option in order to have a permanent policy for later in life.

Conversions

Many (not all) term life insurance policies have conversion options. Conversion options allow you to make some, or all, of your term life insurance into permanent life insurance. Most policies have a conversion period in which you can complete this process without going back through underwriting.

We recommend those who are considering a permanent life insurance policy convert their policy before the end of the term. The younger you are, the cheaper your permanent life insurance will be.

A great solution to this is to own a term life insurance policy to fill the void with the best bang for your buck. The term life insurance will cover your temporary solutions. Couple a permanent life insurance policy with your term and you now have a solution which will last you the rest of your life.

Deciding upon which option for you will work best for what happens at the end of term life insurance is not always an easy solution. With some proper planning you can be sure you do not get stuck in a situation where you are uninsurable and have no affordable options available. We can help you evaluate what will work best for you and your situation. Filed Under: Life Insurance Decreasing Term Life Insurance Explained Cavalcade Of Risk #208

What Happens At The End Of Term Life Insurance

Cheap Health Insurance Options For The Unemployed, Self-Employed, Or Early Retiree | Financial Samurai

Whether you are unemployed by choice or due to unfortunate circumstance, having health insurance is a must. According to The American Journal Of Medicine, 62% of all bankruptcies in 2007 were health related and that's before the economic meltdown. What's more frightening is that back in 2001, health related bankruptcies were only 45% of total. The epidemic is growing!

Say what you will about Universal Healthcare, with a nation as rich as ours going bankrupt at the rate of 62% due to health expenses is an absolute travesty. Genetics and a drunk driver hitting you while crossing the street doesn't discriminate between rich and poor. So why should one die while another lives when all it takes is money to save a life?

In 2009 roughly 2.3 million people were unemployed for longer than six months. By June 2012, the ranks of the long-term jobless soared more than 100 percent to 5.3 million. The employment market is thankfully recovering with a rise in corporate profits, but we are still at levels much higher than the natural rate of full employment.

You do not want to be unemployed AND uninsured. You've already lost your steady paycheck. The last thing you want is to have a medical disaster that wipes out your savings, emergency fund, and retirement funds. If you lose everything while unemployed, it will be brutally difficult to rebuild. You might very well enter a cycle of poverty and never get out.

CHEAP HEALTH INSURANCE OPTIONS

* Employer Sponsored Healthcare (COBRA):  After you leave your company, you usually get COBRA if your firm has more than 20 employees and is using health insurance as a tax deduction. COBRA refers to the Consolidated Budget Reconciliation Act of 1985, and specifically to Title X of the Act. Title X states that an employer must provide the same health care coverage at the same group rate for a certain period of time at the employee's expense if an employee leaves.

It's important to understand that COBRA is by default not free. COBRA is simply giving the ex-employee the optionality of paying the same health insurance premiums while the employee was working for up to 18 months. Many employees have no idea how many months of COBRA they can get, so make sure you ask. COBRA premiums are also negotiable as I've written in my book on how to negotiate a severance package. In my case, I was able to ask for six months premiums fully paid.

COBRA is the easiest health insurance option for those who no longer have jobs. Your healthcare provider network of doctors is the same so you don't have to look for new people or fill out any additional paperwork. The goal of COBRA is to allow a healthcare safety net until an employee finds a new job. The typical COBRA policy lasts for one to six months before the ex-employee is on their own.

* Spousal Health Insurance Plan:  If you are lucky to be married or have a long-time partner after you've lost your job, the first thing to do is ask your spouse to ask HR or the benefits department about how you can join your spouse's plan. One husband who was paying $400 a month in health insurance premiums at his old firm was added to his wife's plan for only an additional $100 a month. One can say getting laid off actually saved the couple $300 a month.

If you are married, it's best to do a three scenario cost analysis: 1) The cost of having your own separate plans with your respective employers, 2) The cost of spouse X on spouse Y's plan, and 3) The cost of spouse Y on spouse X's plan. As my above example demonstrates, the married couple would have been much better off if the husband was on his wife's plan for the past seven years to the tune of $25,200 in health insurance premium savings! Of course there's more to a plan than just money. We all have our own doctors and specialists we like in various locations.

For those of you who are not technically married and one of you loses his/her job, there's also hope as well. There's a concept called common-law marriage that is contracted in nine states (Alabama, Colorado, Kansas, Rhode Island, South Carolina, Iowa, Montana, Utah and Texas) and the District of Columbia. New Hampshire recognizes common-law marriage for purposes of probate only, and Utah recognizes common-law marriages only if they have been validated by a court or administrative order. The point of common-law is to provide protection for one spouse who may be at a tremendous financial disadvantage of the couple separates. If you live in one of these nine states, check with a local attorney or ask your HR department about your rights.

From an employer's perspective, adding a spouse to an existing employee's health insurance package is a marginal financial burden. Think about how little it costs to add another driver's name to your car insurance policy for example. The car insurance premium cost only goes up by 10-20%. One of my interviewees for my book highlighted that he got on his partner's health insurance plan for free after his COBRA ran out. All his partner did was mention to HR that he has been living with her for 10 years and would like to include him during open enrollment. Every employer is different. You just have to understand your employer's policies by asking.

* Parental Health Insurance: Thanks to The Affordable Care Act, young adults up to age 26 are allowed to remain or join their parent's or guardian's health plan. The U.S. Department of Health and Human Services estimates that approximately 2.37 million young adults will be affected by the new law, out of which 1.83 million are currently uninsured. For more information about The Affordable Care Act, here is a helpful Q&A page from the Department Of Labor.

To provide some perspective, approximately 30 percent of Americans between the ages of 19 and 29 have no health insurance. This age group makes up 13 million of the 47 million Americans currently living without health insurance.

* Leveraging The Internet:  Let's say your COBRA has run out, you don't have a spouse or domestic partner, you're 26 years old and you still haven't found a job that will provide health insurance. Don't worry. The internet has been a boon for consumers because it allows us to find more efficiently find the cheapest options. The best place you can find the best online quotes is via  eHealthInsurance.com. They have been around since 1997 and are situated right here in the San Francisco Bay Area. They are the nation's first internet-based health insurance policy company and has the #1 marketshare. They are licensed in all 50 US states and partner with over 180 health insurance companies to find you the best rate. I've actually personally met a couple of their agents before.

When I was working, I paid roughly $350 a month in health insurance premiums for a UHC Basic, Rx co-pay plan. The firm contributed another $400 for my group health insurance plan based on the documents I received after I left. Hence, my automatic assumption was that I would have to pay AT LEAST $750 a month in equivalent health insurance premiums once I became unemployed. I say at least because firms get discounts for group plans vs. individuals. It's the same concept of buying in bulk.

My health insurance plan was pretty good. I had medical PPO with a $25 co-pay program that covered 90% of my entire bill. In other words, if my doctor's bill was for $1,500 to fix my leg, I would pay $25 + $150. As I'm pretty active in sports and outdoor activities, it was important to get a plan that provided at least the majority of coverage. That said, I also have the finances to be able to cover most disaster scenarios if I need to. I just don't want to pay out of pocket for anything that costs more than $3,000. Figure out your own threshold if you have not done so already.

I checked the quotes with eHealthInsurance and found a plan as cheap as $105 a month for 80% coverage of my entire bill (co-insurance). The only caveat is a $2,000 a year. In other words, I have to pay out of pocket for my first $2,000 in co-pay and medical expenses before health insurance kicks in. Given I feel comfortable paying up to $3,000, this combination of $105/month and a $2,000 deductible sounds good. The main thing I'm worried about is disaster insurance that costs tens or hundreds of thousands of dollars.

There are literally hundreds of health insurance plan combos on eHealthInsurance to choose from. You just have to figure out what you are comfortable affording on a monthly basis and how much you can afford if something bad happens.

DON'T TAKE ANY CHANCES 

When I was employed, all I would ever hear from colleagues and politicians was the crippling cost of health insurance skyrocketing multiple times faster than inflation. As a result, I read every single page of my employee benefits handbook, interviewed dozens of people who left their job, spoke to HR, and searched the internet for options. What I've hopefully demonstrated in this post is that there are affordable health insurance options for anybody who no longer works.

It is vital we all have at least disaster prevention health insurance because we never know when bad luck will strike. If you are unemployed not by choice, please don't risk not having any health insurance to save $100 a month. Remember, more than 62% of bankruptcies are health related. Being unemployed and uninsured is one thing. Being bankrupt and unhealthy is a path towards potential for the rest of your life.

If you're looking for health insurance, take a minute to search eHealthInsurance for  Free Health Insurance Price Comparisons for Individuals and Families  to find out what's most suitable for you. They have the largest health insurance network online and are much more efficient than the Affordable Care Act through healthcare.gov.

Cheap Health Insurance Options For The Unemployed, Self-Employed, Or Early Retiree | Financial Samurai

Cheap Health Insurance: How To Pay Less & Save Money

Save Money On Insurance / Save Money On Health Insurance / Cheap Health Insurance: How To Pay Less, Save Money & Get More 

A guide to obtaining cheap health insurance and reducing the cost of your health insurance premium to save money

The cost of health care is expensive, as Australian's however we are quite lucky; the Government subsidises and helps us with our medical costs in many ways. Ranging from funding public hostpitals to reducing the costs of prescription medicines; no Australian is completely out of reach when it comes to offering medical support in some way.

In saying that, the Government can only go so far with their help; this is why people need private health insurance.

Put simply, private health insurance is a safe guard that covers us financially should we need medical assistance; this means we are not left unable to receive treatment or support should we be unable to afford the treatment (that is above and beyond Government funded assistance).

Ways you can save money on health insurance

For those wishing to either apply for health insurance or simply reduce their ongoing health insurance premium, here are some of the more popular ways to save money.

Remember, everyones circumstances are different so you must discuss any ideas you get about saving money directly with your health fund or financial planner so you continue to make smart choices for yourself.

Reduce your extras cover

Extras cover refers to items that aren't particularly life or death' when it comes to medical treatment. Things like; massage, optical, physiotherapy, natural therapies and more.

The best way to pay less for health insurance is to remove extras you don't need; there is no point paying for natural therapies if you don't indeed intend to claim for them.

Popular extras that often get used are minor dental, optical and ambulance cover. Before completely removing your extras cover, check whether you can instead pick and choose with your health fund so you get the extras you need, without the ones you don't.

Check if paying in advance saves money

Similar to other forms of insurance, some health funds offer a discount for upfront payment (of a full year). This means you may get a percentage discount if you pay a full 12 months in advance.

Increase your excess and co-payments

Your excess is how much you must pay to activate' your claim. Essentially if you have to claim via private health insurance, you will need to front the excess up front before they pay the rest of the claim.

Some health fund providers let you slide your excess higher or lower; the higher your excess, the lower your premium is in most cases. This means you need to weigh up the probability of making a major claim in the short term, versus the longer term savings you receive by upping the excess.

Your co-payment is how much you agree to chip in towards your daily hospital costs should you need to claim. The higher the amount you are willing to chip in, the lower your health premium will potentially be.

Use your health funds approved provider list when seeking treatments

For those wishing to utilise their private health insurance to the max, check with your health provider and obtain their list of approved providers that offer gap free treatment.

Most health funds have a list of agreed providers' that they work with; this means you might be able to receive treatment and not have any out of pocket expenses.

Avoid the 2% penalty (a long term way to save)

Long story short; the Government wants all Australian's to take out private health insurance. To do this, they created a schemed called Lifetime health cover' which results in a 2% penalty loading on top of your health insurance premium if you don't take out health insurance prior to the age of 30.

The 2% penalty will apply to people over 30 years of age until they hold health insurance for 10 years; it will then cease. This scheme is to encourage people to take out health insurance younger and maintain it for life.

Compare health funds (before buying and ongoing)

Before applying for health insurance, always shop around. Premiums will vary amongst providers, much the same as car insurance or home and contents insurance.

Health insurance can be very confusing so it might pay to compare with a health insurance expert or comparison service to simplify the process.

For those already holding health insurance, it never hurts to shop around once a year to check your existing provider is still competitive and giving you the cover you desire.

Government rebates that may save you money

The Government also offers an initiative to help Australian's afford their annual health insurance premium and it is reffered to as the Private health insurance rebate .

It is a tier based approach that looks at how much you earn, whether you have singles cover or family cover and in turn applies a discount to your health insurance premium.

Basically it gives you a percentage discount on your premium.

How do you receive this rebate?

You can have this rebate refunded to you when you lodge your tax return, or alternatively ask your health fund to apply the percentage discount immediately to your regular health insurance payments to improve your cash flow and reduce your premium from day one.

Calculating your health insurance rebate

You can see the health insurance rebate tiers or use the rebate calculator to do the work for you.

The Medicare levy surcharge: how it works & ways to save money

The Medicare levy charges you a penalty of between 1% and 1.5% of your total annual income and is only charged if you do not have sufficient private health insurance cover.

This is a Government initiative to once again push Australian's into using private health care and taking our private health insurance.

You can simply avoid this charge by taking out private health insurance. In some cases, it's not much more to have health cover and you may actually save money.

See the Medicare levy tiers and where you fit in here or simply use the Medicare levy calculator.

Cheap Health Insurance: How To Pay Less & Save Money

Cheapest Health Insurance May 2014 | Cheap Health Insurance

This three are the  Cheap health insurance 

1. COBRA
A good place to start out yearning for cheap insurance is with the Consolidated Omnibus Budget Reconciliation Act (COBRA). If you're not used you'll be eligible to continue your previous employers' insurance through elapid snake. This conjointly applies to kids going off to varsity you'll be ready to continue on your parent's amount through elapid snake. this can be a decent possibility for those who might have lost their job and area unit still undergoing medical treatments. WARNING! this can not be an inexpensive insurance possibility. The premiums are abundant higher. it's best to collect all of your on the market insurance choices 1st and so choose the most effective insurance set up for you.

2. Worker's Compensation Insurance
Sometimes, you do not ought to look so much for cheap insurance. many of us beneathstand} that they'll be lined under their state's Workers' Compensation program. If you're being treated for any work connected injury, your leader should give you treatment underneath their Workers' Compensation program.

3. Medicaid
Medicaid is usually unnoticed as an inexpensive insurance possibility. Some suppose if have employment, they will not qualify for health care. health care can pay health care expenses for low-income families and people. every state sets the eligibility needs. If you're operating and still haven't got enough to shop for cheap insurance, it does not price you to check if you or your kids qualify for health care, thus it's perpetually best to see health care 1st before moving on to subsequent choices. And, there's excellent news regarding health care additional states area unit adding health care edges for low-income families thus if you do not qualify currently, keep advised of your state's health care and insurance laws as a result of you'll qualify within the future. Be Sociable, Share!

Cheapest Health Insurance May 2014 | Cheap Health Insurance

Average Cost Of Health Insurance May 2014 | Cheap Health Insurance

Cheap Health Insurance

The cost of insurance within the u.  s. could be a major consider access to health coverage. The rising price of insurance leads a lot of shoppers to travel while not coverage and increase in insurance prices and incidental to rise within the price of health care expenses has junction rectifier health insurers to produce a lot of policies with higher deductibles and different limitations that need the buyer to pay a bigger share of the price themselves. many of us with pre-existing conditions like cancer and depression ar turned down for coverages, denied all coverage of these conditions or ar charged higher costs for coverage. 

In my seek for the reality concerning what quantity ObamaCare can increase the price of health care insurance, I found a daunting map of the u.  s. that projected what the proportion hikes would be state by state for folks with individual coverage. The projections, ready by the Society of Actuaries in March 2013 foreseen some pretty outrageous total health care will increase for folks with individual coverage within the likes of Calif. (62%), Alabama (60%), Texas (34%) and Arizona (41%). solely in ny, Massachusetts and New Jersey would the premiums decline slightly for folks with individual coverage, a phase of the market that's expected to extend from eleven.9 million folks nowadays to twenty five.6 million as a lot of Americans sign on for coverage beneath ObamaCare.

These projected will increase, that you won't hear the White House mentioning, ar as a result of the undeniable fact that premiums ar driven primarily by the underlying price of treatment and not health plans body priced and profitz. is normally, the states expected to have possess giant jumps within the premium currently have low current individual prices and people having high current individual costs can show decreases. Be Sociable, Share!

Average Cost Of Health Insurance May 2014 | Cheap Health Insurance

Low Cost Health Insurance Nevada 

   After the signing of the affordable care act into law, the State of Nevada developed the Nevada health link. Its purpose is to assist people in purchasing Low Cost Health Insurance Nevada. The link compares the available health insurance providers, assists in selection of a health plan that will cater for your needs and choose a deductible that favors you.

With an aim of making health insurance affordable to employers and individuals, the affordable care act featured a provision that permitted the formation of nonprofit oriented health insurance companies. These companies were started on loans offered by the federal government. The nonprofit health insurance companies are consumer oriented and operated plans that were introduced as low cost alternatives to the big private health insurance companies. They were introduced to ensure that everyone has access to the Best Health Insurance Plans Nevada.

In addition, all employers with less than 50 employees will benefit from the small business health options program. They can use this program to purchase low cost health insurance Nevada for their employees. A good workplace health insurance plan leads to a happier and healthier work force.

Types of Nevada health insurance plans

There are four main types of health insurance covers. They include; platinum, gold, bronze and silver. All these plans cover similar health benefits. The difference is the amount of money you have to pay. The charges are as below;

Bronze: you pay 40 percent of the total amount and the plan pays 60 percent.

Silver: the plan pays 70 percent and you cater for the remaining 30 percent.

Gold: you cater for 20 percent of the total insurance amount and the plan caters for 80 percent.

Platinum: this is quite affordable since you pay 10 percent of the total and the plan caters for the remaining 90 percent. Tags:   Health Insurance, Low Cost Health Insurance, Low Cost Health Insurance Nevada

Low Cost Health Insurance Nevada 

Poor Missourians could get dental coverage under changes OKd by lawmakers

JEFFERSON CITY Some Medicaid-eligible adults would have access to dental insurance for the first time since 2005 under a bill agreed on by Missouri lawmakers Tuesday.

The chairmen of the House and Senate budget committees announced the measure among other funding decisions Tuesday during a conference committee to reconcile differences in the two chambers' fiscal year 2015 budgets. The budget must be completed by Friday, the constitutional deadline for passing the state's spending plan.

Medicaid provides free or low-cost health insurance for more than 800,000 low-income Missourians. About 60 percent are children and the rest are custodial parents, pregnant women, the elderly and people with disabilities.

In 2005, then-Gov. Matt Blunt and the Legislature eliminated an assortment of services, including dental care for most adults. Since then, Medicaid has provided dental benefits only for children and adults who are pregnant, blind or in nursing homes.

The bill agreed upon by the conference committee Tuesday provides $48.2 million in federal and state funds to reinstate adult dental care for the fiscal year beginning July 1.

The $48.2 million would cover 30 basic procedures, such as exams and X-rays and provides money for dentists in the program.

The bill also provides Medicaid-eligible adults access to occupational, speech and physical therapy benefits.

Rep. Sue Allen, R-Town and Country, previously said it didn't make sense to cover the cast and surgery for a broken bone, but not cover the therapy to help the injured person regain strength and range of motion. Allen is a licensed physical therapist.

The bill is HB 2011.

Poor Missourians could get dental coverage under changes OKd by lawmakers

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