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With school bells getting ready to ring in the new term across the country and with new uniforms and school supplies bought, now is the time parents traditionally start turning their thoughts to life insurance, according to one of the TX’s leading price comparison sites http://www.texastermbroker.com/.
Starting a family can often make people realise the need for life insurance when they care for a dependent for the first time. However, the arrival of a new baby keeps parents and their wallets busy so it’s understandable that life insurance might slip down the priority list! But before you know it, the kids are starting school and it may be time to think again about getting insured. Life insurance offers that extra peace of mind that your children will still be looked after should the worst happen.
However, the longer you wait, the costlier it can become. Figures fromÂ http://www.texastermbroker.com/ show that a 47-year-old would incur a monthly premium of $40, over three times the amount a 30-year-old would have to pay.
Scott Thiltgen, owner ofÂ http://www.texastermbroker.com/, said: “With the children heading back to school, it’s a good time to think about providing for them in all eventualities.Â http://www.texastermbroker.com/ can take the stress out of shopping for life insurance. With just one screen to fill in, customers can find great deals at the touch of a button. Comparing and contrasting products from different providers, customers can be sure to find the right cover at the right price to suit their lifestyle and circumstances.”
Specialising in more than just car insurance,Â http://www.texastermbroker.com/ provides customers with an easy way to find the right deal on a wide range of insurance and financial products from home, van, bike, life and pet insurance to credit cards. Â It also offers comparisons for a range of household utilities including electricity, gas, phone, broadband and digital TV.
With the Toronto index losing 9% in just the last three sessions and the dow shaving off 635 points in one day, the recent economic turmoil has caused many Canadians to re-examine their investments and assets.
However, life insurance can look very attractive during volatile markets or recessionary periods and doesn’t need to be re-evaluated. The reason being, when life insurance is compared to other no risk or low-risk investments, the internal rate of return can be favorable.
Texas Life Insurance has an Internal Rate-of-Return Calculator,Â which measures the internal rate-of-return of permanent life insurance policies. Many permanent life insurance policies in Canada offer guaranteed premiums and the proceeds are paid out tax-free. The only variableÂ is when the proceeds will be paid.
The internal rate-of-return on many permanent policies can range from 5% to 11% and many life insurance companies have recently raised the premiums, or are the process of raising the rates, on these policies in response to historically low interest rates.
However, a few companies have still kept their premiums level and this offers a very favorable environment for purchasing a fully-guaranteed, non-participating whole life policy.
Some people question the need for life insurance and while this is a personal decision you should make based on your individual needs, there are some important reasons insurance companies give for why you should carry a quality life insurance policy.Â Texas life insurance obtained from Texas State Life Insurance is offered through Americo and on their website they offer some clear and concise reasons for carrying life insurance. Â Review the following reasons with your family and financial advisers to determine what is right for you.
The most obvious reason for Texas life insurance is income replacement if you were to pass away. Â Most people earn a living as their main source of income to pay their bills. Â Getting texas life insurance to cover that income for a few years is the best way to make sure your family is secure.
The next reason is to pay off outstanding debts and long-term obligations.Â Texas Life insurance can play a critical role in preparing your family for the worst case scenario. Â Bills such as mortgages, car loans, college and medical expenses add up fast and life insurance can take care of these bills in one swoop if the right amount of coverage is purchased.
Another important reason to carry Texas life insurance is for estate planning. Â Because of the way texas life insurance works, your beneficiaries should receive funds painlessly and often times tax free. Â Your family does not have to feel the burden of figuring out how to handle your bills if life insurance is in place for beneficiaries.
The final reason on this website that many people choose to carry life insurance is to have a means of making a large donation to a charity if you were to pass away. Â You can designate some or all of a life insurance policy to a charity you hold dear to your heart. Â Even if you were unable to financially make large donations to this charity you can have peace of mind knowing your life insurance policy will handle this.
These are some of the main reasons itâ€™s important to at least look into life insurance quotes for you and your other family members. Â Take the time and do your research to ensure you make the best decision based on your particular situation. Â You can be confident that it will be well worth your time and effort.
1. You never know.
Dying suddenly â€” in an accident, by unexpected illness or even of natural causes â€” can happen at any time. Texas Life insurance helps your loved ones pay the mortgage, bills, even college costs, after youâ€™re gone. It also provides tax-free cash to pay estate and death duties. Nothing can replace you in their hearts, but planning ahead with life insurance can make things easier for those you leave behind.
2. Funerals are expensive.
In some cases, upwards of $7,000 to $10,000 â€” and weâ€™re not talking about extravagant funeral services. This is the average cost of a burial ceremony that will be faced by your loved ones.Â At an already difficult and emotional time, your life insurance can cover these expenses without financial hardship or further stress.
3. Protect those you love.
In your life, you work hard to make sure those you love â€” spouse, partner, children, family members â€” are taken care of. Itâ€™s just as important to consider providing financial support for the future living costs of surviving dependents. After all, they will have to go on without you. Make sure theyâ€™re protected, too.
4. Death shouldnâ€™t mean debt.
Life Insurance can help your dependents cover any financial responsibilities that are left after your death. Debt can be a tremendous burden, on top of the already emotional toll your absence creates in their lives.
5. Anything can happen.
If you develop a serious illness, you may not be able to get life insurance to the extent you need it â€” or at all. If you have a terminal illness, life insurance can provide you with financial support. Life insurance can also be used in case of emergencies by requesting a withdrawal or loan.
6. Take care of business.
Life Insurance isnâ€™t just for individuals. It can protect a business from financial loss, liabilities or instability in the case of the death of a business owner/partner. Whether providing necessary short-term cash or keeping operations going until things settle, life insurance can be invaluable in maintaining the business youâ€™ve worked so hard to build.
7. Supplement your retirement.
You can use life insurance to make sure your retirement savings lasts as long as you do. An annuity is like a do-it-yourself pension plan â€” you put an amount of money into a life insurance product and in return you get a guaranteed stream of income month after month, for as long as you live.
8. It makes financial sense.
Life insurance is considered a financial asset, which can help increase your credit and help you to get a loan or health insurance. Many policies have cash value, which even in case of bankruptcy cannot be touched by creditors.
9. Give to charity.
Life Insurance can enable you to leaving a lasting gift to a favorite cause or charity that is much larger than you would otherwise set aside for donation.
10. Peace of mind, plain and simple.
No amount of money can ever replace a person. But more than anything, life insurance can help provide protection for the uncertainties in life.
At Futurity First, our community-based agent representatives can help you find the right insurance solutions. Even if you already have life insurance, itâ€™s important to make sure itâ€™s up-to-date.
Walmart has agreed to pay more than $2 million to settle a class-action lawsuit that alleges the retail giant secretly took out life insurance policies on some of its Florida workers in the 1990s.
After attorneys fees and other costs, the settlement will result in an estimated payout of $5,800 each to the estates of more than 200 deceased former employees, according to court filings in U.S. District Court. The two lead plaintiffs, Richard Armatrout of Tampa and Wayne Atkinson of Pasco County, are each to receive $10,000.
The plaintiffs’ wives, Karen Armatrout and Rita Atkinson, were former Walmart employees who died in 1996 and 1997, respectively.
When contacted for comment, plaintiffs’ attorney Michael Myers released a joint statement from his clients and Walmart: “The settlement is the result of significant arms-length negotiations and is fair and reasonable. Walmart has not bought company-owned life insurance (COLI) in 15 years, and it just makes sense to settle this matter.”
The plaintiffs’ law firms in Houston and Miami are expected to receive $673,000 in legal fees under the settlement.
U.S. District Judge James Moody on Thursday gave preliminary approval to the settlement and scheduled a hearing for Oct. 17, when the beneficiaries of the class action can object if they wish.
The class includes the executors and administrators of the estates of people whose lives were insured under Corporate Owned Life Insurance Polices purchased by Walmart while they worked as associates in Florida and whose deaths occurred no later than Jan. 31, 2000, and resulted in the payment of insurance policy payments to Walmart.
The company received $55,000 to $90,000 on each policy payout, according to court filings.
The settlement ends a string of litigation that began more than four years ago.
Walmart has maintained all along that it did nothing wrong and that it informed employees that it was taking out the policies in their names. The company said employees were allowed to opt out.
The lawsuit, however, alleges the company told employees that Walmart would not collect policy benefits.
The company has said in court filings that it received more than $9 million in payouts from the policies, which were taken out on all full-time Walmart employees who, in December 1993, were ages 18 to 70 and participated in the medical benefits plan. The company stopped taking out the policies in 1995 but continued to receive payouts on employees who died, even after they left Walmart.
Walmart, which said it canceled its policies in early 2000 because it was losing money on the arrangement, says the program was intended to reduce its income taxes and help pay rising employee health care costs.
Wal-Mart Stores Inc. has settled three other lawsuits on the issue in Texas, Louisiana and Oklahoma.
The U.S. debt crisis will have serious impacts on the insurance industry. With the credit quality of the U.S. having a negative outlook, insurance companies are facing increased risk themselves.
A.M.Best recently reported on what downgrading of the financial strength of the U.S. would have on the Â portfolios and the financial strength of U.S. insurance companies.
Bottom line is that the insurance companies profit from their investments. If their investments are performing poorly due to negative outlook or poor economy, they will have to find another way to increase revenue.
The easiest way for life companies to do so is to be tougher on underwriting. Insurance companies can control this like flipping a switch. Getting tougher will not impact the top 7% who would qualify for the best rates. But it would impact people with even minor personal health or life style risk. By â€œflipping the switchâ€ the insurance companiesÂ will increase profits and lower their financial risk.
If you are shopping out your current insurance or getting quotes for new life insurance. Make sure you disclose all your medical and lifestyle information to an experience agent before choosing the best company for you. It is expected that insurance companies will get tougher and each company will choose different areas to get tough.
In a world where money is tight we often find ourselves choosing between paying for the “must haves” and neglecting the “should haves.” Life insurance, unfortunately, is a perfect example of this. We all know that we should have life insurance to at least cover our final expenses, but many of us don’t purchase life coverage because it’s just one more thing we’d have to spend our hard earned money on, andâ€”let’s face itâ€”we’ve got a lot of other bills wanting our monetary attention.
The problem with this sort of thinking is that life insurance really isn’t a “should have;” it’s a “must have.”
Thinking about life going on after we’re gone is a little scary, but the fact is that it does, and someone you love will be left with funeral and other expenses that they’ll have to meet without you. Now, there are plenty of people who believe that their social security benefits will be enough to at least pay for their funeral, but the truth is that social security pays a death benefit of only $250â€”a far cry from the $6,000 average cost for a funeral today! On top of that, your loved ones will be left with mortgage payments and other living expenses. Life insurance is an excellent way to cover those expenses.
There are a few different types of life coverages available to meet your needs and budget. The two most common types are term life and whole life. But, which one is right for you? The answer is that the kind of insurance you should purchase really depends on your individual circumstances. To know which will work best for you, you must first understand the difference between the two.
Term Life Insurance
Term life is exactly what the name impliesâ€”a life policy that ends after a specific period of time. Term life pays a death benefit to the beneficiaries you designate upon your death, but has no cash value. In other words, you can’t “cash in” the policy or borrow against it prior to your death. Of course, the policy only stays in effect throughout the time period if you continue to pay your premiums in a timely manner.
People who purchase term insurance often do so with a specific purpose in mind. For example, an individual who has just taken out a sizeable business loan that he or she wouldn’t want to leave a spouse responsible for might buy term life to cover the loan in the event of his or her death. Term coverage also appeals to those who want to offer their families some protection when they die, but who have a limited income that doesn’t allow for the higher premiums of whole life.
At the end of a term life policy, you may be able to renew for another set amount of time. Your premiums may be higher for this next term due to your increased age or illness. You may also be able to convert the policy to a whole life policy at a later date.
Whole Life Insurance
Whole life also provides exactly what its name suggestsâ€”a life policy meant to cover you for your entire life. Again, the continuation of the policy is dependent on promptly paid premiums.
Whole life is more costly than term because it is a policy meant to last over a great length of time without a premium increase. In other words, even if you become terminally ill, your whole life insurance premiums will not go up. With term life insurance, premiums remain constant only through the set time, but may increase at the end of the term due to attaining an older age and/or if serious illness arises; possibly preventing renewability.
Whole life is designed to meet your permanent needs, including payment for final expenses and adding to a nest egg that can be drawn on in times of need. Whole life does have a cash value that will grow over time and that can be loaned against. However, any loans taken on the amount will be deducted from the death benefit paid.
Which Is Right For You?
Whether you choose to purchase term versus whole life is really up to you and is entirely dependent on your unique situation. The best thing you can do in making your decision is to speak with a qualified life insurance agent who can provide you with quotes for both types of policies and discuss your options.