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About AARP Life Insurance for Seniors

AARP has three life insurance options for members age 50 to 80 -- and their spouses ages 45 to 80 -- that all share certain features. None require medical exams or tests, although two demand applicants truthfully answer health questions. There are no waiting periods for AARP plans, although some limit coverage within the first two years.

How to Deduct a Life Insurance Premium

Life insurance is a type of insurance that financially protects either loved ones or business entities from your premature death. You are not allowed to deduct life insurance premiums if you are either the owner or beneficiary of the policy. Essentially, according to the IRS regulations, you are not allowed to deduct premiums if you have any interest or possible gain in the policy. If you don’t have any direct or indirect interest, you can deduct life insurance premiums as part of business expenses. For example, a business may purchase life insurance for an employee as part of her benefits package, paying part of the premium but not being the insured no the beneficiary; these premiums are deductible.

How to Get Life Insurance Prospects

Starting a career as a life insurance salesman could be one of the most difficult endeavors you will ever undertake. The insurance marketplace is saturated with other agents, plus you have to compete with gigantic corporations whose marketing budgets are significantly more than yours. New prospects are the lifeblood to any insurance agent, and learning how to acquire them quickly and inexpensively is one of the most important goals you should have. Your geography and the demographics of your target market will influence the manner in which you solicit new business, but there are several fundamental techniques that should remain unchanged regardless of where you conduct your practice. However, it is important to understand that successful methods of attracting life insurance prospects are no different than for any other industry.

How to Borrow From Your Life Insurance Policy

The cash value of a permanent life insurance policy can be a quick source of funds during a financial emergency. Unlike term insurance, which pays death benefits only if you die within a specified term, permanent life insurance -- including whole, universal, variable and variable universal -- can provide benefits during your lifetime. Lower interest rates and tax benefits, combined with no restrictions on using borrowed funds, make a life insurance loan an attractive option for many consumers, according to online comments by Monica J. Lindeen, Montana Commissioner of Securities and Insurance and Secretary-Treasurer of the National Association of Insurance Commissioners.

How To Withdraw Cash Value From a Life Insurance Policy

Withdrawing cash value from a life insurance policy is one way that those who are having financial challenges can obtain the cash they may need. Perhaps you have experienced an unexpected job loss, want to invest in an investment property or have had a decrease in salary and want to use the money that is present in your policy. Look into getting cash value from a life insurance policy in order to meet your cash flow needs and desires.

How Does Term Life Insurance Work?

Getting a Term Life Policy
When you need affordable life-insurance coverage, term policies are likely to be your primary option. You can get quotes for these policies by going through an insurance agent or one of the online insurance brokers. Look at the costs of the premiums, as well as the amount of the death benefit your beneficiaries will receive. Although you may not have to undergo a full physical to be approved by the insurance underwriter for the policy, you will be asked questions about your medical history.

Basics of the Policy
Term life-insurance policies provide coverage only for a specified length of time. That term can be anywhere from 1 to 20 years, depending on the policy you select. During the term, your beneficiaries will be entitled to receive the specified death benefit if you pass away. For example, if you have a 10-year policy for $100,000 and die during the ninth year, your beneficiaries will receive the full $100,000. Failure to pay the premiums, of course, will cause your policy to be canceled before the end of the term. Because the insurance company is betting that you will not die during the term, the insurance premiums are more affordable, because the risk to the company is lower.

How to Get a Life Insurance License

The life insurance industry provides a challenging and lucrative career opportunity to recent college graduates holding financial degrees ranging from accounting to statistics. Agents formerly only offered and administrated insurance policies that paid cash benefits to survivors of the policy owner after death; now life insurance professionals provide a wide range of estate planning financial instruments to their clients. As the range of services has expanded so have the certification requirements; currently all 50 states require perspective agents to have a life insurance license.

Determine the level of financial services you want to provide to your clients. A Health and Life license permits the sale of basic insurance products such as term and whole life policies, but providing wider range financial services such as investment products and commercial securities requires more extensive licensure.

How to Calculate Life Insurance Cash Value

Some types of life insurance policies, including whole life, universal life and variable life, can accumulate cash value during the policyholder's lifetime. Policy holders can choose to receive the cash value as a lump sum, or take out a bank loan using the policy's cash value as collateral. The longer the policy holder keeps the policy active, the higher the cash value grows. Policy holders should understand how to calculate a policy's cash value to determine how much they can receive.Premium Payments

When a policy holder makes a premium payment, some of that payment goes towards increasing the policy's cash value. The insurance company invests that money into a low-yield investment instrument, such as bonds or mutual funds. As long as the policy holder maintains the scheduled premium payments, the cash value will continue to grow. If the policy holder chooses to use the proceeds from the investment pool to make premium payments, the cash value will not grow as quickly.

How to Get Life Insurance With No Medical Exam and No Health Questions

Guaranteed issue whole life insurance meets the needs of people with health conditions that would preclude the issuance of a more traditional term or whole life policy. Their main attraction is that they are offered on a no-questions-asked basis – that is, you’re covered for life, or until you stop paying premiums. Thus, even if you have a serious disease like AIDS or cancer, you still can purchase life insurance coverage.

Guaranteed Issue Whole Life Insurance
Guaranteed issue whole life insurance policies are graded benefit, high cost, low face-value whole life policies.They are offered by such companies as Colonial Penn, AAA Life Insurance Company and Globe, as well as Mutual of Omaha. Applicants generally must be in the range of about 45 to 85, depending on the carrier. Premiums remain level for the life of the policy; as long as those premiums are paid on time, the policy remains in force and cannot be cancelled for any reason. In addition, like other whole life policies, they accrue cash value. However, they’re offered with limitations and restrictions.

How to Cash Out a Life Insurance Policy

Walt Disney, Ray Kroc, and James Cash Penney all famously cashed out life insurance policies to start their companies or to keep them afloat during tough times. If you own one of these policies, usually called permanent, whole or universal life insurance, you can cash it out in a relatively simple process.

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