life insurance

How to Find Affordable Life Insurance In Nevada

postBefore you can begin your search for affordable life insurance in Nevada you need to decide on what type of life insurance you want to purchase: whole life insurance or term life insurance.

Whole life insurance is an insurance policy that you keep for your whole life. Whatever the premium is at the time you take out the policy – based in part on the amount of coverage and your age – that premium remains constant for life.

With a term policy your coverage lasts for a certain number of years – the term of the policy – and then the policy expires and your coverage ends.

Initially term life insurance may seem like the better deal because you’ll initially pay a lower monthly premium for basically the same coverage as you’d get in a whole life policy. But at some point your term insurance will expire and then you’ll need to buy another policy with a new – and higher – age-based premium. The purchaser of a whole life policy, however, continues paying the same level premium for life.

While several things affect the cost of your insurance, there are two primary determining factors for the monthly cost of your life insurance: the amount of your coverage and your age at the time you take out the policy.

Obviously the more insurance you take out, the higher your premium will be. However, the cost of a $1,000,000 policy is seldom twice the cost of a $500,000. The higher your policy amount the better “deal” you will be offered.

The younger you are when you take out your policy, the lower your monthly premium will be – so it is better to take out a policy this year than wait for another birthday to pass.

Your health is also a concern. If you have a history of heart problems, diabetes, cancer or any other life-threatening health concerns you can count on paying a higher premium for your life insurance. If you smoke you can also figure on paying a higher premium – but if you can kick the habit not only will you save money on cigarettes, you’ll also be able to get a lower life insurance premium. Likewise, losing weight can also lower your monthly premium payment.

Make sure your credit rating is in good order. Many people are not aware of it, but your credit rating can have an affect on the amount of your life insurance premium. Pay off your credit cards and keep your credit rating high.

If you drive a sports car or a high-performance vehicle or if you have a job which can be considered dangerous you life insurance premiums will reflect the added risk the insurance company is being asked to take.

Lastly, shop around. Policies with nearly identical coverages can vary in price by hundreds of dollars each year depending on which company you choose. However, don’t choose the lowest-priced company if it is not a company that you feel comfortable counting on to be there when the time comes to collect on your policy.

Remember, when you’re searching for an affordable life insurance company in Nevada, not only is the company taking a risk by insuring you – you are also taking a long-term risk by counting on the company to still be in business when it comes time for your loved ones to collect the benefits you worked so hard to leave them.

Experts Fear Life Insurers Are Courting Reserve Risk

After more than a year studying a surge of intricate financial deals in the life insurance industry, regulators said Thursday that they had found transactions that could “give the industry a black eye,” but could not agree on what to do about them.

“There are some transactions out there that we’re not comfortable with, and we’re not sure you’d be comfortable with,” Douglas Slape, chairman of the research panel, told a ballroom full of industry representatives at a conference in suburban Washington. “We can’t go into the details because it’s confidential.”

Differences among the panelists soon became apparent as the group laid out its findings. Some expressed concern that insurers were “betting the policyholders’ money,” while others argued that the transactions were carefully vetted and safe.

The National Association of Insurance Commissioners convened the research project, in part, in response to an article in The New York Times on the growing practice among life insurers of offloading huge numbers of policies into opaque, off-balance-sheet subsidiaries. The transactions, often valued in the hundreds of millions or even billions of dollars, can improve the appearance of the insurers’ balance sheets and free up money for other projects, or to pay shareholder dividends.

The Times article questioned whether the use of the special-purpose vehicles meant a shadow insurance industry was being created, outside the usual reach of state insurance regulators.

Diverging views among Thursday’s panel of state regulators pose a problem because the transactions often involve an insurer in one state, a subsidiary in another, and policies sold to customers in any number of other states. States, rather than the federal government, are the primary regulators of the nation’s insurance companies.

“Our entire financial solvency system falls apart if there is not uniformity” among state regulators, said Joseph Torti, a panelist from Rhode Island. “We need to be able to understand what our sister states are doing.”

Separately, New York State is conducting its own investigation of the off-balance-sheet insurance deals. This year it called on the insurers under its jurisdiction to provide detailed information about their special-purpose subsidiaries, why they had created them, and whether the subsidiaries were counting assets that the insurer itself would not be allowed to include on its balance sheet.

In recent years, some states passed laws allowing insurance companies to set up the subsidiaries, because they were perceived as creating good jobs.

Conventional state insurance regulation protects policyholders by requiring companies to set aside enough of the premium money they take in to build reserves to pay all future claims. Companies are also required to maintain a healthy surplus, and regulators can make them stop selling new policies if they fall too far short.

When the life insurers secure their policies through special-purpose vehicles, however, they can do so without building up a body of liquid, cashlike reserves, as prescribed by regulators.

Instead, they offer some form of collateral, like a letter of credit, to stand behind the policies. Some regulators said there were cases in which the collateral was inadequate and would not have been admitted under the usual regulatory standards.

Data compiled by SNL Financial, a data and news company, shows that the practice of securing life policies through a wholly owned subsidiary has grown sharply in the last five years. In 2006, the companies SNL surveyed used such subsidiaries for 31 percent of the policies they reinsured; by 2011, it was up to 45 percent.

SNL also found that while the practice was very popular at some companies, others did not use it at all. The American International Group used subsidiaries for nearly 80 percent of the life policies that it reinsured in 2011, for instance, while Northwestern Mutual used only unaffiliated reinsurers, where the terms would be set in an arms’ length transaction. Still others, like State Farm, were not reinsuring their life policies as of 2011.

New York Life, a modest user of affiliated reinsurers at 15 percent, submitted a written comment letter to the panel, warning of “a system that encourages companies to circumvent statutory reserving standards by using complex structured transactions.” It called for “strong regulation” that would allow only “clean, unconditional collateral” to backstop the reinsured policies.

New York Life also said that after artificially lowering their costs through the complex transactions, some companies were coming back to market and selling new policies to consumers at low prices.

“Although lowering prices to consumers is generally a worthy objective, doing so at the expense of effective solvency regulation is inappropriate,” the company stated. “It can result in reserves being reduced below the level needed to protect policyholders.”

The off-balance-sheet vehicles are designated “captives,” under state insurance law, even though they do not resemble conventional captives, which are typically used by noninsurance companies as a vehicle to insure the company’s own risks.

Conventional captives were not subject to the regulatory panel’s scrutiny. Some of the regulators expressed concern that the insurers were using the “captive” designation inappropriately, to take advantage of state laws that allow captives to keep all financial information secret.

The secrecy of the transactions was the biggest source of disagreement among the regulators.

“We think there are things that are legitimately held confidential,” said David Provost, the delegate from Vermont, the first state to allow captives. The captives often house just one very large transaction, and some companies say more disclosure would allow their competitors to find out their confidential strategies. Mr. Provost said insurance regulators in Vermont worked hard to keep their counterparts in other states informed.

Mr. Torti, the delegate from Rhode Island, disagreed. “I have not heard, in all these deliberations, why any of this information should be confidential,” he said. “I think it should be available to the public, available to investors. It should be out there.”

Mortgage Life Insurance and Mortgage Protection and You

Decreasing term mortgage life insurance pays your loved ones a lump sum if you die during the set term of the cover. The amount they are paid is contingent upon the term of the life insurance, which decreases just about in line with the amount that remains on your mortgage. By the end of the life insurance plan, the lump sum will be down to zero.

Decreasing term life insurance covers you for a set term. It will pay your dependents a lump sum if you die during that term. How much your dependents are paid will depend on the term of the insurance policy, which decreases roughly in line with the amount outstanding on your mortgage. The lump sum decreases during the period of the term by the end of the plan, it is down to zero.

How much your life insurance premium is depends on the sum to be insured, the period of cover, your age, your sex and whether you smoke or not. A non-smoker is usually defined as someone who has not smoked for at least twelve months. This kind of insurance is not great for investment purposes, as there is no maturity value payable at the end of the plan.

Although the mortgage life insurance cover reduces, your monthly premiums will stay the same throughout the policy. With some decreasing life insurance policies, you can have additional options, such as critical-illness cover. Adding critical-illness cover will mean the plan pays out if you get a qualifying critical illness or if you die during the term of the policy.

Decreasing Mortgage Life Insurance Pros and Cons

Decreasing life insurance is great if you are keen to leave a cash sum to your loved ones to help pay off your mortgage after you have died. Decreasing life insurance is also cheaper than term life insurance, which pays out the same sum regardless of when you die.

Weighing against decreasing mortgage life insurance is the fact that the policy pays out only if you die or are diagnosed with a qualifying critical illness (if you have critical-illness cover). The policy will also have no maturity value if you live beyond the plan.

Mortgage protection

Mortgage protection is an important part of your mortgage needs. Your mortgage is a big financial commitment, so protection is very important. It is always important to budget for mortgage protection as it is easy to ignore these payments when looking at your monthly mortgage costs.

When financial advisors talk about a fully protected mortgage, they mean protecting your mortgage against every eventuality. The areas of mortgage protection are death; redundancy; critical illness, and long -term sickness.

Mortgage protection pros and cons

Mortgage protection is not compulsory. Mortgage protection might seem a depressing thing to think about. However, you could become ill and be without your income at any time. This is why mortgage protection is so vital. It’s a financial safety net and, now more than ever, protecting your mortgage is vital.

Mortgage protection is good because it need not cost the earth, your premium is based on the level of cover you need, how old you are and the size of your mortgage repayments. It’s also a way of protecting your savings if you fall ill and can’t pay your mortgage, you’ll soon eat into your savings. However if you have no earned income and are on state benefits, mortgage protection insurance will not be right for you.

Copyright (c) 2009 Mark Walpole

Term Life Insurance 101

To begin with it is good to be clear on what life insurance actually is. When an individual dies, there are many financial burdens. Family expenses and mortgage payments are just a few. The primary function of a life insurance is to provide, upon death of the policyholder, an amount that is sufficient to pay for any or all of the expenses. The expenses that will be covered are predetermined in the insurance coverage. Term life insurance is a kind of insurance policy that is exclusively for death coverage. These policies are written out for a specified period of time. This is also called the term as in the name term life insurance. The most regular terms are one year, five years and ten years, although longer terms like twenty and thirty years are also available.

If the person who is insured dies during the period of the term of the policy, the death benefit is paid directly to the specified beneficiaries. However, if on the completion of the term the insurance holder is still alive, the protection ends.

Due to the fact that term insurance provides a benefit only if the insurance holder dies during the term of the policy, it?s premiums will be the nearest to the pure death cost. This is the reason why term life insurance is the coverage that is least expensive to buy at younger ages. However, at an older age, the price of a term policy will rise swiftly along with the rising death cost. This rising cost may soon become exorbitant for a number of senior citizens. The premium of a term insurance policy will stay put at the same amount during the course of the term. It then increases at every renewal.

Term insurance is the cheapest form of life insurance providing only risk coverage without any savings component. It is recommended if you have other savings and retirement plans in place.

A Guide To Low Cost Life Insurance

The objective of a Life Insurance Policy is to protect the family members from the financial loss incurred, due to the death of the insured person. Apart from the emotional trauma, they have to deal with the resultant financial loss. An insurance coverage can save them a lot of economical hassles.

There are two types of Life Insurance, namely Permanent and Term Insurance. Whole and Universal Life Insurance fall under the Permanent Insurance Plan. Permanent Insurance plans allow the investors to save and add extra benefits to the policies, by paying extra charges. They also allow extended term periods and the ability to borrow. These investments are mostly tax-free and cover the financial loss that arises due to the investor?s death. However, the premium rates of Permanent life insurances are usually high and include additional charges for adding beneficiary features. The premium rates and benefits are decided after analyzing the health conditions, income level and regular expenses incurred.

Term Insurance on the other hand, requires a lesser premium rate and is considered ideal for young and healthy people. A term insurance covers a beneficiary only if the insured dies during the insured period. A Term Insurance can become economical if the difference amount between the premium rates is invested, to earn an additional income.

It is crucial to do a little research and then decide the right kind of life insurance plan, according to individual needs. A wrong investment might lead to the loss of policy. It is advisable to compare the quotes offered by the various low cost insurance companies online. Investors can take the help of insurance brokers to have a better idea of the pros and cons of their policies. Life insurance policies ensure that the surviving family members benefit from the investment made by the insured.

Online Term Life Insurance Quotes in Less Time than it Takes to Brush Your Teeth

Online term life insurance quotes have played a dramatic role in driving down the cost of term life insurance rates. Why is this? Term life rates have decreased substantially due to the increased price transparency of the Internet, the highly competitive nature of the insurance industry, and the convenience of the online quoting process. All of these three factors have helped many Americans to find very affordable term life quotes online.

Price Transparency of the Internet

10-20 years ago shopping for term life insurance could be a gigantic hassle. When you consider that an appointment would need to be scheduled, illustrations would need to be prepared, and a sales presentation endured all simply to see some concrete numbers. (And that is not even taking into consideration the fact that it was next to impossible to compare more than two different companies side by side). Now with the price transparency of the Internet rates have dropped quite a bit as insurance shoppers can now just compare online price quotes in less time that it takes to brush your teeth.

Highly Competitive Nature of the Insurance Industry

The insurance industry is extremely competitive, especially in the area of term life insurance. With the exception of Return of Premium (ROP) term and a few other term insurance variations there is not really a whole lot of difference in one term life insurance policy versus another. Yes, you want to choose an insurance company that is rated an “A” or higher by AM Best for their financial strength and yes, you want a big company that you can trust but once those criteria are satisfied then term life insurance is a very commoditized product. This ability to compare “like to like” and “apples to apples” puts tremendous downward pressure on insurance companies to maintain competitive term life insurance rates.

Convenience of the Online Quoting Process

No appointment is necessary. No traveling is necessary. No sales presentation is necessary. No requirement to request information during standard 9-5 business hours is necessary. All of these positives are reasons why the online life insurance quoting process is fast becoming a preferred avenue for many Americans. You can now request life insurance quotes from multiple insurance companies and view some solid numbers from the comfort of your own home or office 24/7 – all in less time than it takes to brush your teeth!

Term Life Insurance Quotes Online

What is Term Life Insurance?

In it’s simplest definition it is a life insurance policy that is used as coverage for a set number of years or ‘term’. Terms can typically range from 1 year to 30 years.
Term life insurance in contrast to other forms of life insurance, does not build cash value with time. Being that it is a temporary form of insurance limited to a certain term, it will only pay a benefit if the insured person dies during the term. In this case the beneficiaries are paid a fixed benefit. If the insured dies outside the term by even a day the benefit is not paid.

Why choose a Term life Insurance policy?

As it is a temporary insurance not building cash value, it is a more inexpensive form of insurance than others. With lower premiums it can provide a higher benefit return to premium ratio. It is particularly useful as a temporary insurance option to cover your financial responsibilities for any dependents you may have. Some Insurers offer what is sometimes called a conversion option, which essentially allows the insured person to switch to a permanent life insurance policy when their cash flow allows within a certain a certain period of years. This conversion privilege option has the advantage of turning the term life insurance policy into a more desirable permanent policy without the requirement of proving themselves insurable at the conversion time.

Types of Term Life Insurance.

While at the lowest end of the scale a 1-year policy can be sought, but as noted earlier, this will have no benefit should the person die outside the 1-year mark. 1 year is not a commonly sought term for life insurance but is available should the special need arise. There is a variation of the standard term policy that is known as Annual Renewable Term or ART.

This is a safer option for the insured as it can allow for the small one year term to be covered but the policy allows for extended coverage for a set number of years after that. This ART version of term life insurance is a slightly more expensive and as the age of the insured person increases so does the premiums of course.

Choosing an Insurer

The best option when looking for term life insurance quotes online is to compare their features and benefits as there will inevitably be some differences both in price and policy structure. Many big insurers advertise online and have websites that will allow you to request further information and quickly do the comparative research you need to make an informed decision.