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May 10, 2018, 4:46 pm

The Value of Life Insurance

by: The Financial Blogger    Category: Insurance

If you are living on a comfortable budget and have savings, you may think you don’t need life insurance. But a life insurance policy can be an important part of your overall savings, and what you leave for your heirs. Here are a few reasons why there is value in life insurance for all income brackets:

The Future is Uncertain

We all know that we cannot predict the future.  An unexpected expense, a change in the market or economy, or unforeseen illness can always change the equation. If you have life insurance, it is just one more way to help secure your family’s future, and often at set terms. Life insurance covers funeral costs, and it can replace your income for your dependents, should you pass away unexpectedly.

Life Insurance Isn’t Just for You

On a related note, the people who truly benefit from your life insurance policy are your family members. Your spouse, siblings, or parents can receive the death benefit of your policy, and of course your children can be named as your beneficiary. The insurance benefit can go towards their education or their inheritance, and it can give you peace of mind that your children will be provided for even if you are gone.

Use To Help Supplement Income

Did you know that some life insurance policies can accumulate cash value? Permanent life insurance policies have cash value and part of your monthly premiums go toward this part of the policy. You can work with a financial professional to include this type of policy as part of your overall financial plan.

Permanent life insurance lasts for your entire life, unlike term insurance which is for a specified time period. As a result, the premiums will be higher than those for term at the start of the policy, but there can be more flexibility in benefits.

Use Your Insurance If You Become Terminally Ill

A permanent life insurance policy can also help in the case of a very serious illness. This involves accelerated benefits, which can help cover medical costs. However, that money comes out of the death benefit that will be paid out, so factor in your other savings and the rest of your estate.

Talk to a trusted insurer to see the different options available and find the policy that best suits you. Regardless of where you are in life, or where your savings stand, a life insurance policy can be an important component of the legacy you leave for your loved ones.

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March 10, 2018, 2:40 pm

Life Insurance: Protection for the Future

by: The Financial Blogger    Category: Insurance

How do you plan for the future? Do you think maybe five or 10 years down the road? Maybe planning for you is what’s going to happen next week? Sometimes, it’s important to plan for the long-term, both for your retirement and for the future well-being of your family.  When considering a long-term plan, think of adding a life insurance policy to your financial future. No one wants to think about their untimely demise, but a life insurance policy doesn’t have to be morbid—it’s a sensible part of financial planning. Here’s why:

Funeral Costs

The average funeral cost today ranges from $7,000 to $10,000. Can your loved ones suddenly afford $10,000 if you pass unexpectedly? Life insurance can help cover this cost so whenever your family needs that money, even if it’s long in the future, it can be taken care of.

Pay Outstanding Debt

Unfortunately, your debt doesn’t go away even if you pass. Debts such as a mortgage, student loans and credit card bills will need to be paid by your family, but your life insurance policy can be used to pay off those debts.

By adding a life insurance policy to your financial plan, you can give yourself and your family members financial protection knowing that debts can be taken care of, and financial stress can be lessened. What if you’re single and don’t have any dependents? Your debt could still become the responsibility of other family members, so having a life insurance policy is still valuable if you don’t have a spouse or children.

Cover Loss of Income

Are you the primary source of income for your family? If you share earning power in your family, would the loss of your income create financial problems? A life insurance policy could help cover the loss of revenue in the result of your sudden death. The beneficiary would have access to the death benefit to help maintain the life you have helped to build.

Protecting Your Retirement

Eventually we reach a point where our kids are grown, our debt is paid off or very close to it, and retirement is around the corner. Life insurance can provide for your spouse or loved ones should you pass away while on a fixed income. Rather than change plans and possibly come out of retirement, your spouse can be taken care of with your death benefit.

Consider talking to a life insurance agent as you plan your financial future. With a life insurance policy you can protect your loved ones from the financial burden of an unexpected death, help pay off debts, help cover the loss of income, and can help them to lead a financially secure life. It is one of the best plans you can make.

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February 27, 2018, 9:56 am

Types of Death Covered in a Term Insurance Plan

by: The Financial Blogger    Category: Insurance

Term insurance policy is the best life insurance policy. The purpose of the insurance plan will be fulfilled with the term insurance. If there is a risk of death, the policy proceeds will be paid to the nominee so that there will be a great reprieve from dependants. However, the policyholder should be aware of the limitations and exclusions so that the claims are honored by the insurance company without fail. Certain deaths are covered by the insurance policy.

Coverage of deaths

The sum assured will be paid to the nominee on the death of the policyholder. The policy should be in force and the payment will be done within the term. If the policyholder survives after the term, there will not be any benefits from the policy.

It is very much important to understand the difference between the insurance and the investment. The term plan is the purest and oldest form of life insurance. It will cover the risk of death and the payment will be made to the nominee. You should not consider the term plan as an investment. For the small monthly or annual premium paid by the policyholder, the insurance company will offer huge financial benefit upon the death of the policyholder.

The following Type of Death Covered in a Term Insurance:

If the policyholder dies suddenly in sleep, it is considered as natural death. The sum assured will be paid to the nominee upon filing the claim by the nominee.

The life insurance policy covers the accidental death as well. If the death takes place within 90 to 180 days after the accident, it will be treated as the accidental death. If the policyholder dies due to the accident, the hospitalization charges should be borne by the family members. When the policyholder is covered by the term insurance, the proceeds of the policy will be delivered to the nominee so that they will be able to overcome the financial distress in a very efficient way.

  • The natural death
  • Death due to health-related issues
  • Death due to medical condition or disease
  • Accidental death
  • Additional sum assured will be paid based on the additional riders
  • Covers sudden death due to unforeseen external event
  • Death due to the involvement of motor vehicle accident
  • Death due to fire accident
  • Accidental fall from the rooftop
  • Death due to drowning in floods, rivers or any other water source
  • Death due to lightning strike
  • Death due to earthquake
  • Death due to electric shock
  • Death due to cyclone or heavy storm

Benefits of term life insurance plan

While buying a life insurance plan, you should be aware of the Types of Death Covered in a Term Insurance Plan. You are advised to go through the terms and conditions of the insurance company and should compare various policies to choose the best policy for your needs.

  • Covers the risk of death
  • The insurance company will pay the sum assured to the nominee in case of the death of the policyholder
  • Offers tax exemption under section 80C of the Income Tax Act
  • The payment made to the nominee is tax-free

Death outside country

If the policyholder updates the information about his or her residence, the insurance company will cover the risk of death in a foreign country as well. The policyholder should inform the insurance company that he is living outside his country. The appropriate policy service form can be filled by the policyholder so that there will be seamless processing of the claim by the insurance company. Certain countries are marked unsafe for Indians. If the policyholder travels to those countries, the insurance company will reject the claim.

Claim settlement

The claim processing varies from one insurance company to another insurance company. If the death takes place two years after the issuance of the policy certificate, the insurance company will investigate the matter extensively. As the insurance company will take risk in issuing a policy with huge compensation, it will double-check the facts before settling the claim. There will not be any issues if the policyholder dies 10 or 12 years after subscribing the policy. The claim settlement will be done quickly.


The term insurance plan will protect the interests of the policyholder and his or her dependents. The risk of death will be covered by the policy and the lump sum payment is many times higher than the insurance premium. However, you should be aware of the terms and conditions under which the policy can be claimed. If the policyholder dies naturally, the insurance company will process the claim and the death benefit will be awarded to the nominee. Hence, you should know about exclusions also while buying the term insurance plan.

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November 27, 2017, 2:34 pm

How Much Do You Pay for Your Health If You Don’t Have Insurance?

by: The Financial Blogger    Category: Insurance

Photo by Fabian Blank on Unsplash

The truth is, health insurance has become costlier. For some, paying premiums, copayments, and deductibles simply isn’t an option.

Which is why some people choose to go without health insurance. Still, the cost of care is expensive, with a trip to the emergency room being as much as four times that of rent.

Just how much do you pay when you aren’t covered? Can you cut down on costs even without coverage? Read on to find out.

Photo by Ken Treloar on Unsplash


The Cost of Care Without Coverage

According to John Hopkins, a 2015 study revealed that the average cost of a doctor’s appointment for a new uninsured patient came out to $160, more or less.

Of course, this dollar amount changed depending on the state the patient was seeking care in. In Pennsylvania, for instance, the cost was $32 less, with an appointment costing roughly $128. Doctor’s appointments in Oregon, meanwhile, were around the $188-dollar mark.

What can be said is that if you don’t have coverage, similar to other products and services, location matters.

Also, know that the study indicated that 6% of uninsured patients were turned down care because they did not have insurance. That said, those who don’t have the coverage may have fewer options.

(If you don’t have health insurance, it is important that you know ahead of time of doctors and health facilities that accept uninsured patients; that way, should you need to visit a doctor as soon as possible, you will know where to go.)

Photo by Crew on Unsplash


Health Insurance Options When You Don’t Have Coverage

As mentioned, health insurance is pricey. Because of this, coverage may not be an available option. If you find yourself in this situation, know that you do have options.

If you are 65 or older, consider looking into Medicare, a government-funded healthcare program geared towards American seniors. For more information on how Medicare works, MedicareFAQ does a great job of going deep on exactly what Medicare is and how it operates.

If you aren’t a senior but are going through tough financial times, consider looking at Medicaid—another government-backed healthcare program aimed at providing coverage for low-income American citizens.

If these options do not work for you and you are between companies, you may still be able to stay on your previous employer’s health insurance. Research thoroughly to determine if this is an option for you.

Or, you could create your own emergency health savings, allotting a portion of your income to your health each month. That way, should a medical emergency take place, you have accessible funds to use.

Think of it like setting funds aside for a large appliance or trip. (Speaking of trips, check out From A to BC: 8 Reasons to Go North on an International Jet Charter.)

Please know that these are not your only options. Other options include being under your parent’s’ health insurance (if you are under 26), COBRA, and more.


Final Thoughts

Just because you do not have health insurance doesn’t mean you go without care. There are accredited and licensed doctors and health facilities that do accept uninsured patients.

While medical appointments, medication, etc. will be out of pocket, talk with your doctor and/or health facility to determine if a payment plan or discount is possible.

How much do you pay out of pocket for medical costs? What ways have you saved and reduced costs? Leave a comment.

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November 8, 2017, 11:26 am

What is Too Little Life Insurance? Too Much?

by: The Financial Blogger    Category: Insurance

If you are thinking about getting life insurance, or if you are evaluating a policy that you already have, you probably already know there are two main life insurance types: term life insurance and permanent life insurance. Both can provide coverage for the people in your life who would need help if you weren’t around any more. But both options are generally not right for each customer.

Without much forethought, it’s easy to get a life insurance policy that is too big, or too small, for your unique needs. In the first case, you can pay way too much money over the lifetime of your policy. In the other case, your dependents may not have the financial help they need when you pass on. These decisions have long term consequences. Do some reading, get some quotes, and obtain the best life insurance policy for you and yours.

Too Much Life Insurance

One of the most common causes for an individual having too much life insurance would be when they choose permanent life insurance, without actually needing it. There are variations to this model, but generally a permanent life insurance policyholder will 1) pay more money each month to ensure a death benefit to loved ones and dependents, no matter how long the policyholder lives, and 2) have money taken out of each monthly payment to save or accumulate cash value.

This savings component create a permanent life insurance policy’s cash value. Depending on the type of permanent life insurance you have, you might use this growing balance for income, to act as collateral for borrowing, or to increase the death benefit that will eventually go to someone you care about.

Typically, permanent life insurance policies are selected by people with estates, high net worth, those with complex investment needs, or those who want to make sure that their chosen policy benefits those who need it.

For all of these reasons, permanent life insurance can be a great option for many kinds of people. But for others, it may be a little too expensive and complex. This policy might seem like the only way to know for sure that your death benefit will have the effect you desire, but this assurance can usually be achieved other ways. Some of these people may be better served with more affordable and simpler term life insurance.

Too Little Life Insurance

37% of parents with children living at home do not have life insurance, according to the 2015 Bankrate Money Pulse survey. Among the remaining 63% that do have life insurance, one-third have less than $100,000 of coverage. That might seem like a lot of money, and it might be when considered as a lump sum. But $100,000 or less may not be enough to cover the living expenses of a people or people who have, up until this time, depended on you for their support.

If you find yourself in this situation, it’s time to get realistic about how much life insurance coverage your dependents, family, and loved ones actually need. For policyholders of term life insurance plans, additional coverage is probably more affordable than you think, and can certainly provide a better financial solution than insufficient coverage.

For people who purchased life insurance without thinking too much about the details, the end result is frequently too much, or too little coverage. If you haven’t bought life insurance yet, make sure you carefully consider your needs and the needs of those who will receive the death benefit of your policy. In the end, you can have just the right about of life insurance for your unique situation.

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