Term life insurance or term assurance is life insurance that provides coverage at a fixed rate of payments for a limited period of time, the relevant term. After that period expires, coverage at the previous rate of premiums is no longer guaranteed and the client must either forgo coverage or potentially obtain further coverage with different payments or conditions. If the life insured dies during the term, the death benefit will be paid to the beneficiary. Term insurance is the least expensive way to purchase a substantial death benefit on a coverage amount per premium dollar basis over a specific period of time.
Term life insurance can be contrasted to permanent life insurance such as whole life, universal life, and variable universal life, which guarantee coverage at fixed premiums for the lifetime of the covered individual unless the policy owner allows the policy to lapse. Term insurance is not generally used for estate planning needs or charitable giving strategies but is used for pure income replacement needs for an individual. Term insurance functions in a manner similar to most other types of insurance in that it satisfies claims against what is insured if the premiums are up to date and the contract has not expired, and does not provide for a return of premium dollars if no claims are filed. As an example, auto insurance will satisfy claims against the insured in the event of an accident and a home owner policy will satisfy claims against the home if it is damaged or destroyed by, for example, a fire. Whether or not these events will occur is uncertain. If the policy holder discontinues coverage because he has sold the insured car or home, the insurance company will not refund the full premium. This is purely risk protection.
Wednesday, May 25, 2016
process of life insurance
In summary, the life insurance application process will look like this:
Compare Quotes – you want to make sure to compare rates with all the companies to ensure you get the best rate. The easiest and most efficient way to do this is to work with an independent agency that works with all the companies on the market(that’s us). This doesn’t cost you a dime but can save you a ton of time.
The Application – next is to apply with the company through a short application process, this usually takes 10 to 20 minutes. It will include some basic information, health questions, and beneficiary information.
The Medical Exam – this will be scheduled while you’re applying at your convenience. A nurse will come out to your home free of charge, at a place and time of your choosing. The nurse will check your blood pressure, weigh you, take a blood and urine sample and ask you some basic questions. This shouldn’t take more than a half an hour.
Underwriting – the longest portion of the application is the underwriting. The good news is, it doesn’t require any action on your end. This is the part of the process where the life insurance company will review your application, access your medical and personal history to asses your risk and assign you a health/rate class. In layman terms that means figure out if you qualify and at what cost. This can take 3 to 6 weeks to accomplish unless you opt for a no exam life insurance policy.
The Decision – once the underwriting is complete the company will come back to you with a decision. You will either get the rate you applied for or it will come back “other than applied.” This means that you got a better, or worse rate than what your agent qualified you for. This will depend on factors like your health, lifestyle, and history.
Compare Quotes – you want to make sure to compare rates with all the companies to ensure you get the best rate. The easiest and most efficient way to do this is to work with an independent agency that works with all the companies on the market(that’s us). This doesn’t cost you a dime but can save you a ton of time.
The Application – next is to apply with the company through a short application process, this usually takes 10 to 20 minutes. It will include some basic information, health questions, and beneficiary information.
The Medical Exam – this will be scheduled while you’re applying at your convenience. A nurse will come out to your home free of charge, at a place and time of your choosing. The nurse will check your blood pressure, weigh you, take a blood and urine sample and ask you some basic questions. This shouldn’t take more than a half an hour.
Underwriting – the longest portion of the application is the underwriting. The good news is, it doesn’t require any action on your end. This is the part of the process where the life insurance company will review your application, access your medical and personal history to asses your risk and assign you a health/rate class. In layman terms that means figure out if you qualify and at what cost. This can take 3 to 6 weeks to accomplish unless you opt for a no exam life insurance policy.
The Decision – once the underwriting is complete the company will come back to you with a decision. You will either get the rate you applied for or it will come back “other than applied.” This means that you got a better, or worse rate than what your agent qualified you for. This will depend on factors like your health, lifestyle, and history.
Tuesday, May 24, 2016
life insurance
An early form of life insurance dates to Ancient Rome; "burial clubs" covered the cost of members' funeral expenses and assisted survivors financially. The first company to offer life insurance in modern times was the Amicable Society for a Perpetual Assurance Office, founded in London in 1706 by William Talbot and Sir Thomas Allen. Each member made an annual payment per share on one to three shares with consideration to age of the members being twelve to fifty-five. At the end of the year a portion of the "amicable contribution" was divided among the wives and children of deceased members, in proportion to the amount of shares the heirs owned. The Amicable Society started with 2000 members.
The first life table was written by Edmund Halley in 1693, but it was only in the 1750s that the necessary mathematical and statistical tools were in place for the development of modern life insurance. James Dodson, a mathematician, and actuary, tried to establish a new company aimed at correctly offsetting the risks of long term life assurance policies, after being refused admission to the Amicable Life Assurance Society because of his advanced age. He was unsuccessful in his attempts at procuring a charter from the government.
His disciple, Edward Rowe Mores, was able to establish the Society for Equitable Assurances on Lives and Survivorship in 1762. It was the world's first mutual insurer and it pioneered age based premiums based on mortality rate laying "the framework for scientific insurance practice and development" and "the basis of modern life assurance upon which all life assurance schemes were subsequently based".
The first life table was written by Edmund Halley in 1693, but it was only in the 1750s that the necessary mathematical and statistical tools were in place for the development of modern life insurance. James Dodson, a mathematician, and actuary, tried to establish a new company aimed at correctly offsetting the risks of long term life assurance policies, after being refused admission to the Amicable Life Assurance Society because of his advanced age. He was unsuccessful in his attempts at procuring a charter from the government.
His disciple, Edward Rowe Mores, was able to establish the Society for Equitable Assurances on Lives and Survivorship in 1762. It was the world's first mutual insurer and it pioneered age based premiums based on mortality rate laying "the framework for scientific insurance practice and development" and "the basis of modern life assurance upon which all life assurance schemes were subsequently based".
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