What are the basic types of life insurance?

About 70 % of U.S. households agree that life insurance is the best way to protect against the financial consequences of a primary wage earner’s premature death, yet around half believe they do not have enough.1 However, choosing from the many types of life insurance policies that are available can be a difficult process. A few main categories are described below to help you search for a life insurance policy that is appropriate for you.

Keep in mind that the cost and availability of insurance depend on factors such as age, health, and the type and amount of insurance purchased. Before implementing a strategy involving insurance, it would be prudent to make sure that you are insurable.

Term Life Insurance
Term life insurance is the most basic and usually the most affordable. Policies can be purchased for a specified period of time. If you die within the time period defined in your policy, the insurance company will pay your beneficiaries the face value of your policy.

Policies can usually be bought for one- to 30-year time spans. Annual renewable term insurance usually can be renewed every year without proof of insurability, but the premium may increase with each renewal. Term insurance is useful if you can afford only a low-cost option or you need life insurance only for a certain amount of time (such as until your children graduate from college).

Permanent Life Insurance
The other major category is permanent life insurance. You pay a premium for as long as you live, and a death benefit will be paid to your beneficiaries upon your death. Permanent life insurance typically comes with a “cash value” savings element. There are three main types of permanent life insurance: whole, universal, and variable.

Whole life insurance. This type of permanent life insurance has a premium that stays the same throughout the life of the policy. Although the premiums may seem higher than the risk of death in the early years, these “overpayments” can accumulate cash value and are invested in the company’s general investment portfolio. You may be able to borrow funds from the cash value or surrender your policy for its face value if necessary.

Access to cash values through borrowing or partial surrenders can reduce the policy's cash value and death benefit, increase the chance that the policy will lapse, and may result in a tax liability if the policy terminates before the death of the insured. Additional out-of-pocket payments may be needed if actual dividends or investment returns decrease, if you withdraw policy values, if you take out a loan, or if current charges increase. Guarantees are based on the claims-paying ability of the issuing company.

Universal life insurance. Universal life coverage goes one step further. You have the same type of coverage and cash value as you would with whole life, but with greater flexibility. Once money has accumulated in your cash-value account, you may be able to vary the frequency, as well as the amount, of your premiums. In fact, it may be possible to structure the policy so that the invested cash value eventually covers your premium costs completely. Of course, it’s important to remember that altering your premiums may decrease the value of the death benefit.

Variable life insurance. With variable life insurance, you receive the same death protection as with other types of permanent life insurance, but you are given control over how your cash value is invested. You have the option of investing your cash value in stocks, bonds, or money market funds. The value of your policy has the potential to grow more quickly, but there is also more risk. If your investments do not perform well, your cash value and the death benefit may decrease. However, some policies provide a guarantee that your death benefit will not fall below a certain level. The premiums for this type of insurance are fixed and you cannot change them in relation to the size of your cash-value account. Any guarantees are contingent on the claims-paying ability of the issuing company.

Variable universal life is another type of variable life insurance. It combines the features of variable and universal life insurance, giving you the investment options as well as the ability to adjust your premiums and death benefit.

As with most financial decisions, there are expenses associated with life insurance. Generally, life insurance policies have contract limitations, fees, and charges, which can include mortality and expense charges, account fees, underlying investment management fees, administrative fees, and charges for optional benefits. Most have surrender charges that are assessed during the early years of the contract if the contract owner surrenders the policy.

Withdrawals of earnings are taxed as ordinary income and may be subject to surrender charges plus a 10 percent federal income tax penalty if made prior to age 59 1/2. Withdrawals reduce contract benefits and values. Any guarantees are contingent on the claims-paying ability of the issuing company. Life insurance is not guaranteed by the FDIC or any other government agency; they are not deposits of, nor are they guaranteed or endorsed by, any bank or savings association. For variable life insurance and variable universal life, the investment return and principal value of an investment option are not guaranteed and fluctuate with changes in market conditions; thus the principal may be worth more or less than the original amount invested when the policy is surrendered.

Variable life and variable universal life are sold only by prospectus. Please consider the investment objectives, risks, charges, and expenses before investing. The prospectus, which contains this and other information about the variable life, or variable universal life, policy and the underlying investment options, can be obtained from your financial professional. Be sure to read the prospectus carefully before deciding whether to invest.

Source: 1) LIMRA, 2010
The information in this article is not intended to be tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor.

This material was written and prepared by Emerald. © 2011 Emerald Connect, Inc.

How can you insure your future?

Long ago, people realized that there is strength in numbers. For hundreds of years, we have been joining forces against all kinds of calamities — including financial troubles.

The concept of insurance is simply that if enough of us can pool our money to form a large enough fund, then together we can handle practically any financial disaster. Our motivation for contributing to this fund is our own eligibility to draw from it in the event of a disaster. One for all and all for one, so to speak.

An early example of the concept comes from the Code of Hammurabi, Babylonian laws dating back to 1700 B.C., which contain a credit insurance provision. For a little higher interest, the ancients could exempt themselves from repayment of loans in the event of personal misfortune. A citizen of the Roman Empire could buy life insurance through the Collegia Tenuiorum for slaves and wage earners, or the Collegia for members of the military. The funds provided old-age pensions, disability insurance, and burial costs. In spite of some complications and occasional bureaucratic snarls, the system has worked remarkably well through the ages.

Today, virtually all heads of families should carry life insurance. Most financial advisors also recommend automobile, health, homeowners, personal liability, professional liability and/or malpractice, disability, and long-term-care insurance. Purchasing individual or family insurance coverage is probably one of the most important financial decisions you will make. A great deal of study and advice is needed to choose wisely. A few basic guidelines can safely be applied to most consumers. Beyond these, each individual’s needs are unique and should be carefully assessed by an expert.

1. How much insurance do you need?
A good rule of thumb is: Don’t insure yourself against misfortunes you can pay for yourself. Insurance is there to protect you in case of an event with overwhelming expenses. If anything short of a calamity does occur, it will usually cost you less in actual costs than the insurance premiums you would have paid.

2. What kind of policy is best?
Broader is better. Purchase insurance that will cover as many misfortunes as possible with a single policy; for example, homeowners insurance that covers not only damage to the house itself but also to its contents. Carefully examine policies that exclude coverage in certain areas, the “policy exclusions.”

3. From whom should I buy?
Always buy from a financially strong company. Take the time to shop around for the best prices with the most coverage for your specific situation. You may be able to save money by buying multiple policies from the same agent. The information in this article is not intended to be tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor.

This material was written and prepared by Emerald. © 2011 Emerald Connect, Inc.

Choose the Highest Level of Coverage Available, Medicare Supplement Plan F

When comparing benefits and coverage between the Medigap Plans available to choose from, Plan F stands out as the plan with the most to offer in terms of supplemental coverage.
All of the standardized plans are required by Medicare to offer certain basic benefits. Each of the ten Supplement plans has unique additional benefits. With Plan F all of the boxes are checked. Plan F covers the Part A deductible and all of the co-insurances under Part A. This year the Part A deductible is $1132. It is worth noting that this is not an annual deductible, rather it is per benefit period. A benefit period begins when you are admitted to a hospital and ends after you have been out of the hospital for 60 days. You could be subject to several Part A deductibles in a year. Also covered are the Part B deductible and the 20% Part B co-insurance.
One of the most meaningful coverages under a Plan F is called "Part B excess" What is Part B excess? It is any amount over what the Medicare approved amount is for medical services. Medicare will only pay 80% of the amount that they approve for a visit or procedure covered under Part B. Most Medicare Supplement Plans will pay the other 20%. Providers can accept your Medicare and not accept Medicare assignment. This means that you will be responsible for the difference. That difference is the Part B excess. Because Plan F covers that excess not only will you never receive a bill but you also will not have to make treatment decisions based on financial concerns.
Plan F also includes the Foreign Travel Benefit. If you are traveling outside of the United States and have a medical emergency, your Medicare will not cover you at all. The Plan F pays limited benefits for medically necessary emergency care when you are out of the country. You can also pick up a Travel Medical Policy for the specific dates of the trip.
Choosing Plan F will help you achieve a situation where you have no worry about out of pocket expenses. You will have the best coverage currently available in a Medicare Supplement Insurance Plan. If you would like to see if a Plan F is the right plan for you visit http://www.medicarequote4u.com.

If you have questions about medicare supplement insurance plans in your area stop by. We are standing by to assist you with free advice and a personalized medicare supplement quote.

Florida Seniors and Medicare Supplement Insurance Plans

Florida Medicare Supplement Premiums and Selection, some influences.
In the state of Florida you may expect to pay up to 60% more for your standardized Medicare Supplement Plan. The Florida rates are among the highest in the nation.
The temperate climate, easy lifestyle, vibrant and active senior community, and lower housing costs and taxes in Florida are just some of the reasons that so many Americans choose to retire here each year.
Florida leads the nation in percentage of citizens 65 and older with 17.7 % of the total population falling into that category. Currently Florida's Senior population is over 3,339,000. Medicare Beneficiaries in Florida number over 3,300,000.
Since medical expenses increase as we get older, a very large group of aging people will impact the cost of doing business for an insurance company that is marketing Medicare Supplement Plans to that group. The higher claims cost has caused some companies to decide not to offer plans in Florida. This limits the choices for seniors. This also causes the premiums to be more expensive.
Another factor affecting Florida Supplement rates are some of the insurance regulations in the state. These tend to be good for the consumer, but can also cause higher rates.
Issue age pricing. All Medicare Supplement Plans in Florida must be sold as "issue age" vs. "attained age". With issue age pricing your premium depends on your age when you purchase the policy. Attained age plans increase based on your age as you get older, these increases tend to be significant. Issue age policies do not increase based on age, rather are in conjunction with increases in the Medicare deductibles and other cost sharing and have much less impact on the cost of the plan, resulting in predictable costs going forward.
All insurance companies wishing to market Medicare Supplements in Florida are mandated by the state to have plans available to people who qualify for Medicare under the age of 65. These are beneficiaries who typically have been on SS disability for 24 months. This gives them the ability to secure protection against medical costs and increased quality of care. It also creates a higher risk, higher cost group of insured.
These are only a few of the factors contributing to the higher cost for Medigap Plans in Florida. If you are a Florida Senior you owe it to yourself to be pro-active and compare plans and prices so that you can be confident that you are getting the most bang for your health care dollar and that you have the right coverage for you.We are standing by to help.


Stephanie Coutavas is an Insurance Professional specializing in Senior Insurance Solutions and Medicare Insurance. Co-founder and Senior Broker at http://www.medicarequote4u.com/ /Common Sense Insurance Solutions Group. Stephanie decided to specialize in Medicare because, "I saw the effects of the confusion and misinformation in the senior market. I really feel that with the proper,correct information, presented in an understandable way that our Seniors can position themselves for the future and achieve the peace of mind and security that they deserve at this exciting stage of life. We strive one client at a time to make sure that we address the individual and that they are better for having met us, regardless of whether they choose us as their broker." Call or visit http://www.medicarequote4u.com/. 888-347-5552

Medicare Supplement Plans In Nevada, Colorado, Utah.

When you compare these 3 states and the Medicare Supplement Plans they have to other states in the country you see a major trend. For the most part they are much less expensive when compared to other states that have large cities in them. As we know Colorado has Denver, Nevada has Reno and Las Vegas, and Utah has Salt Lake City and some other medium size cities within. So why is there a big price difference between these states and others. We will talk about 2 reasons.

Typically the healthier the state the lower the rates. All of these states boast a very good health rating. When a Medicare Supplement Company has lower health claims they also have lower costs which they usually pass along to the consumer as lower rates for there plans. Actuarially these companies are able to look in years past to try to determine there future costs for claims, when they see that in years past claims costs have been comparably lower than other states they are able to keep prices lower because of that. These rocky mountain area states thus are benefiting from a healthy life style, All of these states have lots of outdoor activities which aide in preserving a great health rating.

Competition is also a large factor in rates, as you look across the country at rates you will notice an important trend. In states where there is only 1 or 2 companies that sell Medicare Supplement Plans we find that the rates are very high. In states like Nevada, Utah, and Colorado we find at least 5 companies that offer these types of plans. With that being said every company is vying for a position in the market. When you are dealing with a standardized plan having a position in the market has every thing to do with prices.

Standardized plans is of tremendous importance as to why competition is so important, think about it like this. If you went to a car dealership to purchase an automobile you would not pay $5000 more for the exact same car with the same options, that will get you to the same place. It just does not make sense. It is the same with Medicare Supplement Plans. Educated consumers know that these plans are essentially identical company to company which means that there is not much more to talk about than price.

Whether you are looking at a Utah Medicare Supplement Plans, a Nevada Medicare Supplement Plan, or a Colorado Medicare Supplement Plan you are in a good position. Living in these states could save you thousands of dollars over the course of  your Medicare Career.

What Is Necessary In A Medicare Supplement

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Health insurance provided by the government to retirees is called Medicare. Due to the increased need for medical coverage during this time period and the rising cost of health care, a Medicare supplement may be needed also. This may not be sufficient to cover all expenses, even those that are already covered such as doctor's and emergency room visits and prescription medications.

Part C coverage, also known as Medicare Advantage, is available through many private insurers to help cover costs not provided for by Parts A and B. If enrolled in these two parts, and with end stage renal disease, a person may be eligible for purchasing this provision. The individual must also be able to pay for their Part B premiums on their own.

Referred to as Medigap, this supplemental insurance is meant to cover the gaps that exist in regular coverage. Often a person must wait during an enrollment period prior to reimbursement for expenses. The expense of coinsurance and deductibles may also be at least partially paid for under this policy.

Aging can be very costly and place a person's assets in risk of being depleted. For this reason, long-term care insurance may be purchased to provide money to cover expenditures associated with assistance for daily activities, skilled nursing care, rehabilitative services, or even to live in a nursing home. Generally, Medicare does not help with these.

Private insurers offer these types of policies so that the elderly need not burden younger relatives and family members with these expenditures. The type and amount of coverage is usually a determinant of price. Monthly premiums will vary based on this choice.

More than one Medicare supplement exists to enable those approaching retirement to plan for increased medical expenses of growing older. The government health care plan may not be enough in some cases. For this reason, Medigap and long-term care insurance policies may prove beneficial.

How To Make The Most Of Your Medicare?

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Medicare to some might seem daunting. With all of the information out there, and the potential for having to choose a health care plan to supplement Medicare you might feel overwhelmed. It can be a great time however. The reason is because for the most part you should be able to save quite a bit of money when it comes to your health care costs.

If you are like most people turning 65 and starting Medicare you have been paying quite a bit for medical care. The average 63 year old is paying $425.00 per month for there Major Medical Insurance. For a family of 2 that can mean huge costs of just under $1000 per month for Insurance. You would also have to factor in the costs of co-pays, deductibles, and medications as well. Before you know it you are out of pocket a good chunk of your monthly income.

That is why many people have breathed a sigh of relief when it comes to starting Medicare. It should be mentioned however that Medicare is not a 100% plan. If you have just traditional Medicare there would still be some additional costs on a regular basis for health care.
These costs include deductibles, and co-pays, and also medications. The reason why we find so many people like starting Medicare is the fact that Medicare cost a fraction of what a comparable underage 65 health insurance plan would cost. The only fixed cost for Medicare is Part B which is an average of $115.00 per month per person.
With this low cost of Medicare what most people have chosen to do is to purchase a Medicare Supplement Plan. What a plan like this accomplishes is that you are able to “supplement” what Medicare does not pay for. As of 2011 there are some major expenses Medicare does not pay for like: $1132 Part A deductible, Hospital Co-Insurance, $162 Part B deductible, 20% co-pay for Part B services, amongst other expenses as well. Having a Medicare Supplement Plan depending on the plan chosen can pay for some of these expenses up to all of these expenses. Allowing you to have a fixed cost on a monthly basis that will cover all of your medical expenses. Folks that we have spoken to have found that having a Medicare Supplement Plan can be a painless way to keep costs low, especially when comparing it to the coverage they had previously.