Archive for the ‘Life Insurance’ Category
August 31st, 2010 | 
Author: I have seen many questions here along the lines of either (a) a person died and had life insurance, but I do not have the policy and do not know what company sold the policy, or (b) a person died and I do not know if that person had life insurance.
How much of the profit that Life Insurance companies make is because the company does not receive a claim when an insured person dies, either because the beneficiary did not know that there was a life insurance policy, or because the beneficiary does not know what company issued the policy?
Most of those people, are just HOPING to find life insurance money sitting around now that their relative has died.
70% of Americans die WITHOUT active life insurance in place. 95% of policies sold – not any particular type, but all types, across the board – stay in force less than five years, and don’t pay out because they cancel first.
So the Insurance companies make very very little profit off of insurance policies that never get claimed. The vast majority of their profits, are off the reserves.
But it’s a good reminder – it’s very, very important for everyone who HAS life insurance, to tell at LEAST two different people where to find it – and their will, and where their bank accounts are.
It’s ALSO pretty easy to track DOWN life insurance once someone dies – as active policies send out a statement every year, even if they ARE paid in full. And if they’re not, they will send out BILLS.
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Term Life Insurance
Life insurance is a subject that brings on many different opinions. While some believe it is a waste of money or even considered gambling, most people understand that life insurance is primarily used to ensure that your family or beneficiary is well taken care of upon your death. Life insurance also ensures that your family will be able to take care of your burial and funeral expenses.
While there are many different types of policies as far as life Insurance is concerned, term life insurance is considered to be “pure insurance” because it builds no cash value like other policies. While some life insurance policies are used as a type of savings or retirement account, term policies are in place for a specific amount of time and only paid out in the event of death. Term life is the most practical and unselfish way to ensure no one has to worry about how to take care of you in the event of your death.
History of Life Insurance
As with most things ancient, Rome recorded one of the first life insurance policies in existence. Roman groups called Fratres (or burial clubs) came together to establish this form of security for their workers. These policies were set up by the poor to pay for the funerals of fellow club members and to help the surviving family financially.
The first insurance company in the United States was started in 1735. This South Carolina based company, called the Friendly Society, lasted until 1740. In 1759, the first life insurance company was established in Philadelphia by the Synod of the Presbyterian Church. It was started for the benefit of Presbyterian ministers’ families. As with the Romans, the basic financial needs of surviving family members would be taken care of.
As far as ancient times, society has known that those who are left behind need some sort of financial security upon a loved one’s death. Undoubtedly, it seems that even in ancient times, burial and funeral expenses alone were enough to wipe away a family’s savings. In the case of a family being impoverished, a proper burial might even be out of the question.
While no one likes to think of death and dying, term life insurance is something that is very much needed. The trauma of losing a loved one is obviously emotionally and mentally draining and at least a life insurance policy allows the added financial burden to be eliminated. Choosing the right policy to accommodate your needs is the key to planning a secure future for your family.
Most Practical Choice
If you are looking for a simple way to look after your family after your passing, term life insurance seems to be the most practical way to go. With even a minimal policy, you can ensure that your family will be able to pay for burial and funeral expenses. If you have children, hopefully your policy will enable them to attend college or perhaps your family’s house can be paid off.
With the advent of the Internet, it is easy to study the various types of term life insurance available online as well as the requirements that each carrier might have. You can obtain fast quotes online as well. Some Term Life Insurance companies even offer “no medical exam” policies or “cheap” policies that are affordable. Terms usually run in 10-year periods – 10, 20 or 30-year policies are the norm.
Sharon Taylor
http://www.articlesbase.com/finance-articles/overview-and-history-of-life-insurance-136524.html
Get the Best Quotes from Top Rated Life Insurance Companies
Life insurance protects your family in case of your death, providing a death benefit that can pay off the house, cover college tuition, pay medical and funeral costs, and help the family stay solvent. Because life insurance is so important, you want to make sure you get the best quote from a top rated life insurance company.
Get the Best Quote
To get the best quote on your life insurance, follow these tips:
* Decide what kind of life insurance you want. The two main types of life Insurance are term and whole life. Term is less expensive because it’s life coverage only – when the insured dies the beneficiary receives the face amount of the policy. Whole Life Insurance combines life insurance with an investment component. Part of your premium pays for the insurance, while the rest is invested.
* Buy insurance when you’re young and in good health, especially if you want Term Life Insurance. As you get older your premium increases.
* Don’t use tobacco. If you do use tobacco, quit.
* If the insurance company requires a medical exam, schedule it for morning. Your blood pressure, cholesterol, and stress levels will be better then.
* If possible, apply for your insurance toward the end of a quarter or year, when insurance companies are trying to reach sales quotas.
* Comparison shop. Rates for the same life insurance coverage can vary greatly, so check several companies. The best way to comparison shop is to visit an insurance comparison website where you can get quotes from multiple companies. On the best of these sites, you can chat with insurance professionals online who will answer your questions (see link below).
Choose a top-rated company
Once you have rate quotes from several companies, you want to research the companies so you can choose a top-rated company. The Internet is a great source for investigating the ratings of insurance companies. Two of the better sites to check a company’s rating are:
A.M. Best (ambest.com)
A.M. Best rates insurance companies based on their ability to pay claims, their credit rating, and their ability to pay it’s debtors and stockholders.
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Your State’s Department of Insurance
All States have a Department of Insurance website and most list complaints filed against insurance companies. If your state doesn’t list complaints, you can go to the California Department of Insurance website – www.insurance.ca.gov – to get this information.
Visit http://www.LowerRateQuotes.com/life-insurance.html or click on the following link to get the best quotes from top rated life insurance companies and see how much you can save. You can get insurance tips in their Articles section.
ryan@thesatellitetvguide.com
http://www.articlesbase.com/insurance-articles/get-the-best-quotes-from-top-rated-life-insurance-companies-136042.html