INSURANCE

Child Life Insurance

The death of a child isn’t something parents want to think about. But life insurance isn’t necessarily all about death. Child life insurance is about the future…and preparation. Taking steps today can help create a better tomorrow. And as parents or grandparents, our chief concern is making the future better for our children.

How Does Child Life Insurance Help a Child
Right now, when a child is young, strong, and healthy, life insurance is obtainable at a minimum cost. But if a child develops a problem like a chronic disease, life insurance can be almost impossible to obtain. So signing up for a low premium term life insurance policy now, with a guaranteed periodic purchase option, will make it possible for them to have life insurance as adults.

Another possibility for them is to purchase a whole life insurance policy, which will last for the rest of their lives. Their age and health status won’t make any difference…nor will it matter if they serve in the military or have dangerous occupation hazards.

Such child life insurance is perfect for planning for the future because of the cash value the plan would accumulate. As an adult, they could borrow against this value…or stop the policy and withdraw the money (to pay for college or any number of things).

Who Can Purchase a Child Life Insurance Policy
Parents, grandparents, and legal guardians can all purchase child life insurance policies. New parents often have heavy financial burdens during the first few years of a child’s life, and buying insurance is difficult. So grandparents (who might be more financially stable) purchase insurance for their grandchildren.

When Does Coverage Start for a Child Life Insurance Policy
When you start a life insurance policy for a child, the coverage begins immediately. There are no necessary medical exams to go through…just a few health related questions on the application is generally enough to get a child qualified.

The rates for child life insurance vary. Whole life rates stay the same. Term life rates depend on the policy, how old the child is, and several other factors. Policy renewal agreements can vary also, so make sure it’s spelled out before signing up for term policies. Some times you can purchase a term policy and then switch it to whole life at the end of the policy’s period.
Child life insurance policies can last as long as you wish to sign for. Again, whole life policies for children don’t ever end, while term policies are defined before you purchase it.

Who Receives the Benefits
In child life insurance policies, the parents or legal guardians are the beneficiaries. But the one who benefits the most is the child. He or she benefits from the security of a life insurance policy that will continue even if he or she is diagnosed with a life threatening disease. Secure your children’s future now with child life insurance. It’s good for them, it’s good for you

Group Life Insurance
Does your company offer group life insurance? If not, you might be ignoring one of the most cost effective ways to make your benefits package more attractive to potential and current employees.

Is Group Life Insurance Important
Today’s employees expect more than a salary from their employees. In a recent survey by Wall Street Journal, participants were asked if they would rather: have no pay increase but retain current benefits, or get a raise and see benefits decrease. Fifty six percent of respondents said they would rather keep their benefits. This illustrates how important it is for employers to offer a competitive benefits package, aside from a decent salary.

Among the many benefits an employee can offer, group life insurance serves as an excellent way to attract new employees. It also increases the morale of current employees and creates loyalty within the company.

Who Will Group Life Insurance Cover
Group life insurance policies can apply to any existing or new employees and associates. And most policies can offer extra benefits that employees can opt for at a discounted rate if they want to pay for the added expense. This makes it easy for employers to offer more than one plan, but still only pay a minimum for premiums.

How Does Group Life Insurance Costs Compare to Individual Life Insurance
Group life insurance is often cheaper than individual life insurance for several reasons. First of all, it’s a form of collective bargaining…it’s buying in bulk. So you’re getting bulk rates, and everything is cheaper in bulk. It involves less paper work for the agents and less time selling to each individual. These are the incentives for insurance companies to give lower rates on group life policies.

Employers especially benefit from group life insurance in a unique way. There’s no mandatory medical exams in order to be qualified. For some, this is the difference between being able to obtain insurance and not being able to. Chronic diseases make getting life insurance difficult. The fact that they can obtain life insurance through your company could be enough of a reason to persuade hard working employees to stay in their positions.

What other Benefits does Group Life Insurance Offer
Since group life insurance is part of the wages you pay, it’s tax deductible. If you’re going to use a tax write-off, it may as well do something for you. Adding benefits to employee packages increases morale and, consequently, work productivity.

Many plans offer a Waive of Premium benefit. If an employee is totally disabled, he or she can continue group life insurance coverage without paying the premiums. This (again) is a tangible sign of appreciation for your employees.

You can customize group life insurance policies to fit your company needs. Many plans offer customization to fit specific employees (per salary, years with the company, etc.)

Your company’s benefits package is the ‘main attraction’ to the work force. Adding to it will attract a better working class, and help you retain your hardest workers. Take steps now to add group life insurance to your benefits package.

Term Life Insurance
The Affordable Plan for Life and Family
Term life insurance is the most affordable option for anyone who needs to provide a future course in the event of their untimely demise. It’s called ‘term life insurance’ because it lasts for a defined term at the time of the purchase. As long as the premiums are paid each month, the beneficiaries are paid the full death benefit if the policy holder dies during that period.

Term life insurance costs less than permanent life insurance policies like whole life and variable life. The reason is because the policy accrues no cash value (except in the case of Return of Premium Term Life Insurance, where you can get a full refund for all the premiums you’ve paid at the end of the policy period). Another reason is because the policy is guaranteed to end within a certain number of years. The insurance company hopes this will be before the policy holder dies.

What Will Term Life Insurance Pay
Mortgages, education, cost of living, or burial costs. Term life insurance is typically set up to pay for all the things that the regular ‘bread winner’ of the household would pay. You can also use it to pay the taxes involved in a estate inheritance.

You can purchase term life insurance policies for terms of one to thirty years. The most popular option is for fifteen years. At the end of the term, the policy ends. Some policies come with a guaranteed renewal rate, so you can purchase a new policy when the old one ends. The rates will obviously be higher because of the age increase.

Will I Need a Medical Exam to Qualify for Term Life Insurance
In most cases, companies require policy holders to undergo a brief medical exam before qualifying for term life insurance. Insurance companies try to make it as simple as possible. Some companies will even send a qualified nurse to your home for the exam.

It might be possible to bypass the exam and receive immediate coverage depending on your age. You can expect to pay more for this kind of term life insurance, and if you have serious health problems, it might be unavailable. Remember that insurance is something you buy ahead of time. You couldn’t make an accident claim on an auto insurance policy if the accident happened before you purchased the policy. In the same way, if you have serious health risks, term life insurance might be much more expensive or unavailable.

What Else Should I Know About Term Life Insurance
Some policies provide you with accelerated benefits options. They’ll pay you benefits before death if you have a terminal illness. This would cost more, but in some cases, the added protection is worth the money.

Sometimes you can lower your premiums by presenting your health profile before purchasing a term life insurance policy. Show the company that you have less risk of dying than an average person.

Term life insurance isn’t for everyone. But if you can’t afford an investment insurance, but still want to protect your family if you die at an early age, term life insurance might be the answer.