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The Most Dangerous Jobs & Impact On Life Insurance

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Life insurance rates and approval can be affected by type of employment. When a life insurance company reviews a potential client, they must scour not only medical history, but also any existing threats to their life. They must then determine just how much of a threat that person's job is to their life longevity. The significance of the workplace-related threat will determine the amount that person must pay and will be covered for. In a recent research study, Insurance.com collected data for the most dangerous jobs to have when applying for life insurance. Their results were based on a percentage rate of workplace fatalities against total number of workers in that field, rather than the total number of deaths. This article will review the top seven most dangerous jobs on that list.

1. Fishers/Fishing Workers – working on a fishing boat continually exposes workers to large, dangerous equipment and storms at sea that can capsize their fishing boat.

2. Logging Workers – logging is well-known for frequent accidents. Loggers are frequently killed by trees or large pieces of wood falling on them.

3. Aircraft Pilots/Flight Engineers – while auto accidents may not result in fatalities most of the time, nearly every airplane crash is inevitably fatal, if not leaving the victim permanently debilitating.

4. Structural Iron & Steel Workers – this industry exposes workers to extremely dangerous equipment that cuts, punches and presses metal. The force of these machines in accidents is often fatal or permanently debilitating.

5. Farmers & Ranchers – most farm equipment is dangerous to use. Riding horses, four-wheelers and farm equipment through off-road terrain is a high risk for accidents. Machinery-related accidents are also common in farming and ranching, making it a risky choice of work.

6. Roofers – it is a well-known fact that roofers must face working at significant heights. There is not always something to cushion their fall if they have a slip accident and fall off the roof.

7. Electrical Power-line Installers & Repairers – working with electrical lines is dangerous work. These workers are constantly exposed to high voltage in the power lines.

Those who work in dangerous fields should not neglect seeking life insurance. Most companies that hire workers in these industries offer company life insurance. If not, shop around and compare rates. Coverage can be obtained, but it will likely be more expensive. It is especially important for workers in these fields to be sure family members are protected by purchasing life insurance.

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Choosing the Best Policy: Top Differences Between Permanent, Term, and Convertible Term Life Insurance

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Taking out a life insurance policy is an important step to protecting loved ones, but many people are confused by the options. The guide below explains the key differences between permanent life insurance, term life insurance, and convertible term life insurance.

Permanent life, or whole life, policies are best for lifelong needs. Individuals frequently use this insurance type to cover the cost of final expenses, contribute to charity, leave a business legacy, prevent the family's financial distress, and/or develop an estate plan. Permanent life insurance policies also accumulate cash value, which can be withdrawn as a loan to help with temporary emergencies.

Term life insurance, on the other hand, is designed for people with temporary needs who are on a limited budget. Coverage lasts only for the specified term, with typical periods being 1, 5, 10, 20, or 30 years. Many people purchase term policies to gain temporary coverage until a certain date, such as until a loan is paid off or until children reach age 18.

Comparison of Permanent and Term Life Insurance:
<ul><li>Permanent life is designed for long-term needs, whereas term life is suitable for short-term needs.</li>
<li>Permanent life is more cost-effective over time, while term life is more affordable upfront.</li>
<li>Permanent life offers level premiums, while term life premiums can increase or decrease throughout the policy term, up to the maximum allowed.</li>
<li>Permanent life premiums remain the same. Term life premiums increase based on the insured’s age each time the policy is renewed.</li>
<li>Permanent life offers a guaranteed death benefit, whereas the term life death benefit can remain level or decrease, depending on the type purchased.</li>
<li>Permanent life accumulates cash value, which can be loaned. Term policies have no cash value.</li></ul>

A convertible term life insurance policy is a mixture of the previous two options. Owners are granted a term life policy, with the option to exchange it for permanent insurance during a specified period without needing to show proof that the insured is in good health. This provision is beneficial if the insured gains weights, develops high blood pressure, or begins suffering from any number of diseases. Some insurers require the coverage amount to be converted all at once, while others will permit partial conversions over time.

With the distinct benefits offered by permanent life insurance, term life insurance, and convertible term life insurance, everyone is certain to find an affordable policy that meets his/her needs.

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How to Set Up A Life Insurance Trust

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While you may be well aware of the benefits of having a life insurance policy to provide for the expenses of your loved ones after you are gone, you may not know that these benefits are commonly decreased by the estate tax. In fact, this tax can take literally thousands of dollars away from your beloved survivors in their time and hour of need. There is a simple way to get around this tax dilemma. You can place your life insurance policy in a trust to avoid the burdensome estate tax. Observe the following steps in order to do this.

First Step

The first thing that you have to do is to decide who your trust beneficiaries will actually be. They should be precisely chosen since they will get benefits straight from the trust. You should think over your potential beneficiaries' financial responsibility when you undertake this decision.

Second Step

Next, you will need to decide what benefits that each beneficiary should get, the way they will get these, and in what time frame they will obtain them. These numbers will help you to decide the amount of money that your trust needs to have to be adequately funded. You should ensure that your insurance policy will be sufficient to cover these dollar amounts.

Third Step

Then you will need to determine which trustee will oversee and run your life insurance trust. Financial advisers, banks with which you do business, and colleagues who are financially astute are all possibilities for your trust. Institutions such as banks will require fees in order to run your trust. Other trustees, in particular personal contacts, may do this as a favor to you at no cost.

Fourth Step

In order to complete the life insurance trust process, you will need to find and engage the services of an attorney who specializes in estate planning. He or she will aid you in getting your trust established legally. When you use an attorney, you gain the peace of mind in knowing that the trust is properly set up and it will not have any problems. You will also sleep easier knowing that it will work as you intend it to if you meet an untimely demise. The extra expense associated with this is well worth the knowledge that you gain that your life insurance trust will not unnecessarily burden your family with any problems in your absence.

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I Am Moving Abroad, Will That Affect My Life Insurance Premium?

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There are many factors that can affect a customer’s life insurance premium. Unfortunately, moving abroad can be one of them.

Anytime a customer takes out a life insurance policy, the issuing company will ask a number of questions in order to asses the risk the customer presents. These questions will include whether you are planning on visiting or moving to a foreign country. The insurance company will also want to know where you are planning to move and when you expect this to occur.

This is because many countries may pose more of a safety risk than the country where a customer presently lives. Any country that is currently considered a hostile environment, including Israel, Kenya, Afghanistan, Thailand, Serbia, Sudan, Libya, Iran, Pakistan, Nicaragua, India, and Guatemala, among others, is going to be seen as a significant risk.

Countries that have a high incidence of disease or that have higher death rates, including many countries in Africa, will also be seen as a larger risk. A customer may be able to lower their risk by receiving the required vaccinations, including those for tetanus, rubella, mumps, Hepatitis B, diphtheria, measles, and polio, as well as some optional vaccinations, like typhoid, rabies, Hepatitis A, and meningococcal meningitis. Unfortunately, this will not completely eliminate the risk of moving to one of these nations.

If a customer were to move to a high-risk country, their premiums would increase. Depending on the company, this increase could make a huge impact on the affordability of the policy. This is because when the life insurance policy was issued, the company did not take the move into consideration. Anything that changes a customer’s risk factor, including disease or moving abroad, can have a negative affect on the customer’s premiums.

The good news is that some companies would still consider the policy valid and process a customer’s claim, even if they increased premiums. The bad news is that some companies would refuse any claim made while living in the high-risk country. This is why it is important to understand the terms of your policy before ever purchasing the insurance.

Moving to a low risk country, like Canada, Australia, or the UK, will usually not affect a customer’s premiums. Even so, it is still important to check with your insurance company before assuming the policy will not be affected by the move.

When first applying for your life insurance policy, it is important to be completely truthful on the application. If you may move overseas in a year, let the insurance company know upfront. This may cause them to increase your premiums or refuse your application entirely. However, it is much better than the company finding out that you were dishonest and contesting your claims. As with every aspect of life insurance, it is better to be honest and know your options, than try to cheat the system and end up losing in the end.

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Choosing the Best Policy: Top Differences Between Permanent, Term, and Convertible Term Life Insurance

Browse: Life Insurance Resources

Taking out a life insurance policy is an important step to protecting loved ones, but many people are confused by the options. The guide below explains the key differences between permanent life insurance, term life insurance, and convertible term life insurance.

Permanent life, or whole life, policies are best for lifelong needs. Individuals frequently use this insurance type to cover the cost of final expenses, contribute to charity, leave a business legacy, prevent the family's financial distress, and/or develop an estate plan. Permanent life insurance policies also accumulate cash value, which can be withdrawn as a loan to help with temporary emergencies.

Term life insurance, on the other hand, is designed for people with temporary needs who are on a limited budget. Coverage lasts only for the specified term, with typical periods being 1, 5, 10, 20, or 30 years. Many people purchase term policies to gain temporary coverage until a certain date, such as until a loan is paid off or until children reach age 18.

Comparison of Permanent and Term Life Insurance:
<ul><li>Permanent life is designed for long-term needs, whereas term life is suitable for short-term needs.</li>
<li>Permanent life is more cost-effective over time, while term life is more affordable upfront.</li>
<li>Permanent life offers level premiums, while term life premiums can increase or decrease throughout the policy term, up to the maximum allowed.</li>
<li>Permanent life premiums remain the same. Term life premiums increase based on the insured’s age each time the policy is renewed.</li>
<li>Permanent life offers a guaranteed death benefit, whereas the term life death benefit can remain level or decrease, depending on the type purchased.</li>
<li>Permanent life accumulates cash value, which can be loaned. Term policies have no cash value.</li></ul>

A convertible term life insurance policy is a mixture of the previous two options. Owners are granted a term life policy, with the option to exchange it for permanent insurance during a specified period without needing to show proof that the insured is in good health. This provision is beneficial if the insured gains weights, develops high blood pressure, or begins suffering from any number of diseases. Some insurers require the coverage amount to be converted all at once, while others will permit partial conversions over time.

With the distinct benefits offered by permanent life insurance, term life insurance, and convertible term life insurance, everyone is certain to find an affordable policy that meets his/her needs.

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How to Determine the Right Amount of Life Insurance

Browse: Life Insurance Resources, Personal Finance Blog

When your family counts on your to support them, it is important that you plan for their future. Sadly, the most common life insurance mistake that heads of household make is to purchase too little. In the event of the breadwinner’s death, a lack of adequate life insurance can add to the family’s emotional turmoil by plunging them into financial tragedy. Thus, it is imperative that if you have people who depend upon your income to meet their daily financial needs, you plan for their future by ensuring that you have enough life insurance.

Life insurance serves one of two needs: It either provides a lump sum of cash to pay for specific expenses like funeral, elimination of debt or financing a college education. Or, life insurance serves to provide a steady income to those left behind. If your goal is the first of these, to provide a lump sum of cash for a specific purpose or purposes, then choosing the amount of life insurance should be easy, simply buy what your family needs to cover those specific things. However, if your purpose is to provide a constant flow of income to your beneficiary then there are some things to be calculated.

Financial Guru Suze Orman advises that people have enough life insurance so that if that money were invested, the interest earned on the money would provide the income necessary to support the individuals that depend upon it, without their ever touching the principle. In this way there is no worry that the money will run out, no matter how long the beneficiary needs it. Orman’s website offers an easy to use calculator to determine just how much insurance you need to achieve the above. The formula is simple; just add up all of the expenses that the beneficiary will need to pay for. You want an annual total, so calculate monthly expenses, and then multiply by 12. Next, add in annual bills or other things like property taxes, property insurance and medical bills. Next, assume a moderate investment return of 4%, by taking the desired annual income and multiplying it times .04. This will give you the initial life insurance amount necessary to generate the annual income to meet your family’s need. For example, with this equation you learn that if your family requires $40,000 a year to live, then 40,000 times .04 is $1,000,000 in life insurance that you should buy.

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Life Insurance Versus Annuities

Browse: Life Insurance Resources, Personal Finance Blog

If you are planning for a financially secure retirement, you may be considering various long-term investments. During this process of financial deliberation, one of the inevitable questions that will come up is deciding between life insurance and an annuity.

This debate usually raises questions like:

• Which investment is better?
• Which offers insurance after death?
• Which provides an income after retirement?
• Which gives more financial security?
• Which protects our money better?

The truth of this debate is that both are excellent financial instruments and both have their advantages. In fact, a convincing argument can be made for either one of them.

A better question to ask, then, is which one will serve you better. Let’s take a closer look at the two investments.

<h3> A Life Insurance Contract</h3>

A life insurance contract protects the family of the investor when he or she dies. The sum the beneficiaries receive is far greater than the combined total of all the premiums that the investor regularly paid for it. These benefits, of course, are received providing the contract is still in good standing when the investor dies.

<h3> An Annuty</h3>

An annuity can best be described as an income producing insurance product. They form part of an excellent retirement strategy. Investors receive income from the annuity after retirement. After someone invests in an annuity, it pays out on a future date, and this pay out can be based on a lump sum or a monthly, quarterly, or annual basis. The payment size depends on the length of the payment period. A fixed annuity is a guaranteed payout while a variable annuity is a stream of payouts.

<h3> The Difference between Life Insurance and an Annuity</h3>

The difference, then, between life insurance and an annuity comes down to one main thing: the difference and timing of the benefit. Life insurance meets the needs of the family of the investor when he or she has died while an annuity takes care of the investor’s income needs when he is no longer working. The life insurance will return an amount that is many times larger than all the premiums paid for it while an annuity will pay back the total investment value and the gains that were earned on it. In deciding between the two, it is important to think about where you think you will be in your retirement years and what needs your family will have after you die.

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Is Life Insurance an Annuity?

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Life insurance and annuities are often offered by the same companies, and sometimes they can be purchased together as part of a single plan, but a life insurance plan and an annuity are two different things.

What is Life Insurance?

Life insurance is a contract that is signed between a policy owner and an insurer. The contract states that the insurer will pay the policy holder's beneficiaries an agreed upon amount upon their death. In many cases, life insurance can also be expanded on to pay a sum to the beneficiaries in the event that the policy holder falls ill with a critical illness. The policy holder agrees to pay a given amount on a regular basis.

Life insurance can be divided into term life insurance and permanent life insurance. Term life insurance will pay out the benefits to the beneficiaries if the policy holder dies during a specified period of time. Permanent life insurance will pay the beneficiaries upon the policy holder's death, regardless of when the death occurs, as long as the owner continues to pay their premiums on time.

What is an Annuity?

An annuity is a way of receiving income during retirement. The policy holder pays the insurance company, and the insurer then begins to make regular payments when the policy holder retires. The amount of income that the policy holder receives depends on how much money was given to the insurer.

There are two different types of annuities that a policy holder can take advantage of. They can either purchase an immediate annuity, or a deferred annuity. With an immediate annuity, the policy holder would purchase the annuity using all or part of their life savings. The insurer would then pay the policy holder a specific amount each month, either for a set amount of time or for the rest of their life.

With a deferred annuity, the policy holder would make regular payments to the insurance company before retirement. During this phase, it can be treated like an investment that will grow either by a fixed percentage or in a manner similar to a mutual fund account. The investment is also tax deferred, meaning that no taxes are paid on the annuity until the income is earned after retirement. Again, during the retirement phase, the policy holder is paid a specific amount each month depending on the total value of their account. The payments will continue either for a set amount of time or until death.

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What Type of Life Insurance is Right for Me?

Browse: Life Insurance Resources, Personal Finance Blog

Death is a part of life that no one is fortunate enough to escape. However, purchasing life insurance can be purchased to help protect a person’s loved ones in the event of their death. Families are always grateful for life insurance policies in the event of their loved one’s death as it helps secure them financially for any financial hardships they may be facing. So how does one go about choosing which type of life insurance is best for them? Let’s take a look.

The first step in purchasing life insurance is to choose between term life insurance and whole life insurance. Term life insurance plans are accompanied with premium rates that increase over the life of the policy. Whole life insurance plans are accompanied with fixed premium rates over the entirety of the policy. Term life insurance policies provide coverage to a policyholder’s spouse in the event of their death until the policy expires. Whole life insurance plans cover a spouse until the time of their death.

Whole life insurance policies are typically accompanied with higher rates than term life insurance policies; however, whole life plans will most often save people money in the long run if they can afford the premium levels without difficulty.

It best for a person to opt with a term life insurance plan if they are unsure how long they will be able to afford paying their premiums. Term life insurance is also a wise choice for someone who does not have a steady job to provide steady income.

There are other types of life insurance plans. They include universal and variable life insurance. For those people who are interested in cash value life insurance plans a universal life policy is a wise choice. This type of policy provides several accounts that credit can be increased within. However, if the cash value decreases to zero a policyholder may not stay covered.

If a person is looking to determine their investment options they should opt with variable life insurance. Any person who has a variable life insurance plan should know a thing or two themselves about investing. Fees are also associated with this type of insurance plan so it is important to stay up-to-date with any fees the policyholder might be charged.

It is always very important to complete research on potential life insurance providers. This helps a person determine whether or not they would be satisfied with the coverage the company would provide.

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At What Age Should I Buy Life Insurance?

Browse: Life Insurance Resources, Personal Finance Blog

Life insurance is a product almost everyone should have at some point, yet it is also a product that many people put off purchasing. Part of this issue is the reason this insurance is purchased; people do not like dealing with the idea of their own demise. Unless you are a single person with no relatives, no family and no financial obligations, you need to purchase life insurance. A common question many people ask is, "At what age should I buy life insurance?"

In order to answer this question, you need to understand how life insurance premiums are priced. There are two main types of life insurance, whole life and term life. Of course there are hundreds of variations on these two basic types depending on an individual’s circumstances and needs, but for the purposes of this explanation these two basic types are fine.

A whole life policy covers an individual for the entirety of their natural life. There is a payment period, where monthly or quarterly payments are made until the policy is paid in full. Once this happens, there are no further premiums due. The premium payments also build up cash value over time which can be borrowed against in times of need, which reduces the death benefit.

Term life insurance covers only a specified period of time, such as five or ten years. Payments made on a term policy do not build cash value. At the end of the term, the policy is canceled and a new policy needs to be written, usually at a higher premium payment than the last term.

Life insurance premiums are priced based on the odds that an individual might pass away during the time period of the policy and the insurance company will need to make payment to the beneficiary. When people are young, there are far less health problems such as heart disease, cancer and other afflictions. These become more and more common as age progresses, and cause the premiums one would pay for a new policy to increase each year as well.

Whole life insurance is most affordable when a person is less than 30 years old. Once a policy is in place, it cannot be canceled as long as the premiums are paid. As we age, the cost of a whole life policy gets more and more expensive, and can be cost prohibitive if any health problems emerge.

Like whole life, term insurance premiums also increase with age but are generally much cheaper than whole life. Companies will often give a renewal discount to existing term customers, which can save a decent amount of money off the total premiums paid.

The bottom line is to get life insurance as early as possible. This will save a huge amount of money in premiums in the long run.

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Making a decision about life insurance is a big one. We recommend term life insurance at SaveOnQuotes.com but get all the facts and browse our life insurance resources.


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