Reader’s Question:

I’ve heard a lot about how much coverage one should have under a life insurance policy (my neighbors here in Minnesota just loves to talk about these things!), How much universal life insurance, in essence, would you recommend?

Lee

Minneapolis, MN

This is a very good question. Everyone who wishes to have life insurance coverage should know how to recognize how much life insurance would be adequate for their needs. Many experts say you have to get a coverage amount that is ten, twenty, thirty times your annual income as a good rule of thumb. While this may be a good estimates, you can never really be sure if these are enough or in the other hand, this may be too much and you might end up wasting too much money on life insurance that could have been put to good use elsewhere. Where do you even begin?

It would be highly advisable that you get a good understanding of your family, your household, your kids (anyone who relies on you there in Minnesota, financially) needs. On an annual basis, try to determine how much you spend on bills, groceries, mortgage, loans, debts and any other financial obligations that you may have. You will now have a way of more precisely identifying how much money your beneficiaries would need in order to survive decently in the event that you pass away.

Let’s say you do pass away, how much money or income do you want to leave your beneficiaries? For how long? Also, who will take care of burial costs? Let these questions guide you in determining the right kind of life insurance policy for you with the right amount of coverage.

Reader’s Question:

If I die, what can my family expect to receive from my universal life insurance policy when they file a claim here in Westminster Colorado CO?

Paul

Westminster Colorado CO

Your family is lucky to have someone like you who cares a lot about them, Liam. Your family should be informed that universal life insurance claims in Colorado and most places in the US are usually handled by the home office of the life insurance company. They will need to inform the company and fill out a request form. Leave them a copy of your insurance policy so that they don’t have a hard time filing the claim.

Normally, insurers are required to pay beneficiaries at least eight percent interest starting from the date of death so it is in their best interest to settle their claim immediately. Your beneficiaries will receive the amount specified in your universal life insurance policy, though the insurer may sometimes adjust this amount depending on specific provisions in your life insurance coverage, like if you have any outstanding loans against the cash value of your policy or if you have accrued dividends which can be added to the amount of the benefit.

Your family also has the option to either receive the bulk amount immediately, leave the proceeds with the company and let it earn interest until they are ready to claim it or convert the proceeds into monthly income, sort of like pension for them in your absence.

Why don’t you take a look at the different options available from insurance companies. Just type in your zip code to receive free universal life insurance policy quotes. This will give you a better idea of what kinds of benefits your family can receive from universal life insurance policy before you finally decide to purchase it.

Reader’s Question:

If I don’t tell my insurer in Connecticut that I am smoking, would the insurance company in Hartford, know about it? Will anything happen to me if I lie about my smoking?

Erwin

Hartford, CT

Smokers are considered an insurance risk because they pose high risks for health problems compared with non-smokers. Smoking cause serious negative effects on health, and eventually life insurance. The insurance companies in your area, will of course know eventually.

Concealing the fact that you are smoking can be considered as a fraudulent act, therefore your insurance company will not know immediately in your application for life insurance. In the event that you prematurely die and your insurance company found out that the cause of it is smoking, then your insurance company holds the right to deny claims of your insurance!

It is better to be honest on your part so as not to scrutinize your insurance and endanger the benefits that it will bring to your beneficiaries.

Your life insurance company in Connecticut may not have known it that you’re lying upon your application of insurance, but provided they know eventually, then you’re in a costly mess both in the law, as it is a fraudulent act and your insurance in Hartford.

Reader’s Question:

How can I use life insurance as future investment in Las Vegas? I really though life insurance is just for beneficiaries who are left if I die.

Marco

Las Vegas, NV

It’s true that insurance are provided to your beneficiaries when you die, but it can do more if you buy permanent life insurance. There is one type of life insurance that only the beneficiaries can benefit, which is the term life insurance. Term life insurance is purely life coverage for most life insurers in Nevada. Your life insurance should be enforced within a specific term so that when you die, your beneficiaries will receive something. But without death on the term of your life insurance, you will most probably gain nothing.

Another type of life insurance which has an investment side is known as permanent life insurance. This is definitely available in Las Vegas because this is common. It can accumulate cash every time you pay your basic premiums. Even if you decide to eventually stop paying premium at certain time, the cash will continue to accumulate. The premiums will differ in terms of the cash value that it could produce plus the death benefit it offers. Permanent life insurance will have three variations: universal life insurance, whole life insurance, and variable life insurance. Each will vary on how the cash accumulates normally due to the interest rate variable.

Permanent whole life insurance will be very useful in your future because of its cash value. You can withdraw it and use it for whatever purposes. Some would buy whole life insurance for their retirement. Others would buy the same type as a valuable emergency fund. Some would use it to meet monthly mortgages or any other long term financial obligations. Life insurance is really investment for your future. All you need to do is to choose the appropriate type in Las Vegas Nevada NV and you will be all set.

Reader’s Question:

Is getting life insurance products worth the money? Why would I be needing to buy life insurance in Dallas, TX?

Drake

Dallas, TX

Hi Drake

Life insurance is important most especially if you have dependents who are depending on your income to survive in Dallas. Imagine what happens if you die and your dependents are left without sustenance. Besides its not just about their sustenance, its also about the cost of your funeral and burial. You can’t just leave your dependents to take care of those things without enough money. And how about the credits that you have, won’t the credit company go after your loved ones whom you left? This is one important consideration why you buy life insurance.

There are two options for you: term life insurance and permanent life insurance. The former type is purely life coverage. When you die, your beneficiaries will receive the death benefit within the term that the life insurance is enforced. If you don’t die within the term, you gain nothing. But at least, this type of life insurance is cheaper of the two types. And since this is popular and common, there are life insurance companies in Dallas who can give you still the lowest premium. All you have to do is get different quotes from life insurance providers in You should choose the lowest premium with your preferred face value and benefits.

If you don’t want pure life coverage, you can choose the second type which is the permanent life insurance. Variant of this type is universal life insurance, whole life insurance and variable life insurance. This type of life insurance has a cash value or others call cash savings. Meaning when you pay the premium, you are not only paying for life insurance but accumulating cash as well. In the future, you can withdraw or borrow the cash value for whatever reasons. In other words, this is life insurance plus investment.

Reader’s Question:

I have a few friends in Cleveland Ohio trying to win me into buying my own life insurance. They say universal life insurance is generally beneficial. Who can actually benefit from universal life insurance?

Charlie

Cleveland, OH

Hello Charlie

Before I answer your question, let me run you through the basics of universal life insurance.

A universal life insurance is a permanent insurance where you pay premiums at a flexible rate for cash accumulation. In other words, a universal life insurance is not purely life insurance. It is also an investment at the same time.

In comparison with term life which pays for the death benefit alone, universal life insurance is actually a savings. In essence, both the insured and the beneficiary benefit from universal life insurance. Unlike term life where only the beneficiaries can get the life insurance amount upon the death of the insured, the insured will be able to benefit the amount invested with universal life insurance.

In fact, the accumulated cash can be used to pay the premiums to keep the insurance in force. And if the cash have accumulated enough, it ca be withdrawn for other use and returned to keep the investment and insurance enforced and increase cash value. What is even more beneficial about the universal life insurance is that payment of its premiums is flexible so the policyholder pays based on current interest rate.

A universal life insurance is beneficial also to those who want to accumulate cash up to the person’s 70th year. When the person started investing at age 30, he could have accumulated enough cash to supplement his retirement.

I think it is best for you to talk to a local insurer in Cleveland Ohio about your options for insurance before you will get convinced by your friends to buy universal life insurance. Once you get the agent’s opinion, you can proceed to comparing their quote to the ones you will get free online. I encourage you to get free quotes now while you are online which can also be done in this page.