Life Insurance Illustrations: You may be thinking of buying a policy where cash values, death benefits, dividends or premiums vary based on events or situations the insuring company does not guarantee (such as interest rates). If so, you may get an illustration from the agent or company that helps explain how the policy works. The illustration may show how the benefits (that are not guaranteed) will change as interest rates and other factors change. The illustration will show you what the company does guarantee. It will also show you what could happen in the future. Remember, you should always be ready to adjust your financial plans if the cash value doesn't increase as quickly as shown in the illustration.
Automobile:
Coverage for a vehicle to provide protection against losses incurred as a result of a traffic accident and any liability that could be incurred in that accident. Many states now require by law for an individual to carry auto insurance before using or keeping a motor vehicle on public roads.
Homeowners:
Coverage for private homes. It combines various personal insurance protections, which can include losses occurring to one's home, its contents, loss of its use (additional living expenses), or loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home or premises.
Life Insurance:
Coverage that pays a fixed amount of money to beneficiaries if a specific person dies during the policy period. All Life insurance policies include the following:
The "owner" who is paying for the policy
The "insured" that the policy covers
The "death benefit" that stipulates how much is to paid in the event of an untimely death while the policy is in force
The "beneficiary" who obtains the monetary benefit.
Types of Life Insurance include:
Term Life Insurance: This 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 and/or conditions.
Whole Life Insurance: A life insurance policy that remains in force for the insured's lifetime and requires premiums to be paid every year into the policy.
Universal Life: These are flexible policies that allow you to vary your premium payments. You can also adjust the face amount of your coverage. Increases in coverage may require proof that you qualify for the new death benefit. The premiums you pay go into a policy account that earns interest with charges being deducted from the account. If your yearly premium payment plus the interest your account earns is less than the charges, your account value will become lower. If it keeps dropping, eventually your coverage will end. To prevent that from happening you may need to start making premium payments, increase your premium payments, or lower your death benefits. Even if there is enough in your account to pay the premiums, continuing to pay the premiums on a recurring basis will build more cash value.
Variable Life: Variable life is a kind of insurance where the death benefits and cash values depend on the investment performance of one or more separate accounts. The payments may be invested in mutual funds or other investments allowed under the policy. When buying this kind of policy, be sure to get the prospectus from the company and study it carefully. You will have higher death benefits and cash value if the underlying investments do well. In some cases, you will pay an extra premium for a guaranteed death benefit.
Life Insurance Illustrations: You may be thinking of buying a policy where cash values, death benefits, dividends or premiums vary based on events or situations the company does not guarantee (such as interest rates). If so, you may get an illustration from the agent or company that helps explain how the policy works. The illustration may show how the benefits (that are not guaranteed) will change as interest rates and other factors change. The illustration will show you what the company does guarantee. It will also what you what could happen in the future. Remember, nobody knows what will happen in the future. You should be ready to adjust your financial plans if the cash value doesn't increase as quickly as shown in the illustration. You may be asked to sign a statement that says you understand that some of the numbers in the illustration are not guaranteed.
Aflac®:
If you have ever been out of work because of an illness or accident, you know the two most important issues are peace of mind and money to pay your bills. These individual policies add extra coverage and come in many different types including:
Accident
Cancer
Dental
Hospital Confinement Indemnity
Hospital Sickness Confinement Indemnity
Hospital Intensive Care
Life
Lump Sum Cancer
Lump Sum Critical Illness
Specified Health Benefit
Short Term Disability
Vision
Long-Term Care
This provides a variety of services that help meet both the medical and non-medical needs of people with a chronic illness or disability who cannot care for themselves. This is designed to cover for long periods of time, and provides custodial and non-skilled care to assist with normal daily routine such as bathing, dressing, and feeding. This coverage does require medical professionals to assist with chronic conditions usually associated with older citizens. It can be provided at home, in the community, in assisted living facilities or nursing homes, and can be needed by people of any age but is most common among senior citizens.
Disability Insurance
Standard Disability Insurance Standard disability protects your ability to earn income. If for some reason you become disabled in the way that the insurance agreement stipulates, you begin to get payments from the insurance company that replace what you would have made on the job. However, you need to be even more careful when buying disability insurance than with almost any other kind of insurance. Each policy is very different, so you have to pay attention to the fine print. Because of the high likelihood that the insurance company will have to pay, some insurance companies will stick in conditions that decrease that likelihood. Although this often makes the insurance seem cheaper, it actually decreases its utility to you. Although a large number of employers offer life insurance, very few offer disability insurance. The lapse may actually work out in the favor of the people who pay for the insurance on their own. This is because if the employer pays for the disability insurance as part of your benefit package, the payments you get are taxable income. Disability income is also taxable if you take the disability insurance as a tax write-off (something you should really think about before you do it). However, if you pay for the disability insurance out of your own pocket, the payments are tax-free. Additionally, a disability policy that you pay for will follow you around from job to job and will allow you to be covered even if you are taking time off from work.
