Life Insurance Policies – Popular Types

Available life insurance policies. There are so many life insurance policies to examine. Let us take a look at some of the basic types of term life insurance, whole life insurance and universal life insurance policies. See how they work and how to apply them to your particle need. Each policy was designed to be applied to specific needs, here are brief outlines of how to apply policies to needs.

Decreasing Term

These term life insurance policies have level premiums for the duration but the face amount decreases each year. They are designed for applicants who need a large amount of coverage initially and much less as time passes. You can use decreasing to cover the amount owed on a mortgage. As your balance decreases the insurance amount decreases. Upon the death of the insured the mortgage is paid off.

Yearly Renewable Term

This is really a one year term policy, you have the option of renewing the policy each without proving you can qualify. The face amount remains level throughout but the premium increases as the insured gets older.

If you want coverage for a very short period of time yearly renewable term may be good for you.

5 year Term

This is usually a level term life insurance policy lasting for 5 years. Premiums are level, at the end of the 5 year period coverage ceases. This policy is also used for short term needs, for example, you may use this to cover a loan balance or possibly to pay college costs for a child or grandchild in event of your death.

10 Year Term

The 10 year term life insurance policies are level term plans that lasts for 10 years, premiums are level and so are death benefits. Generally this plan is used for short term needs.

15 Year Term

People with families sometimes use the 15 year term policy to protect the young ones while they are dependent on the bread winner. A lump sum can be paid upon death or an income if the sum insured is large enough. Premiums are level throughout and so are death benefits.

20 Year Term

Probably the most loved level term life insurance policies are the 20 year term plans. The death benefit is level for the entire 20 year period and so is the premium. This policy is great for family protection, key man life insurance or to fund a buy sell agreement for a partnership or corporation.

30 Year Term

Another fairly popular term policy is the 30 year term policy. It works just like the 20 year policy but last 30 years instead of 20. As people get older they tend to want to buy one last policy that will protect the ones they love up until death. Many people ask for this policy.

Whole life insurance

This life insurance policy has many variations and is well liked by people who like to know they can get something back after a while. Whole life has a guaranteed cash value. If the policy is a participating policy it can pay dividends, this depends on the performance of the company.

Universal Life

This life insurance policy combines term life insurance with a savings plan. The amount applied to saving is very flexible. The death benefit can be increased or reduced at the will of the owner of the policy. A medical may be required if the death benefit is increased.

These are the most bought life insurance policies, on or off line.

Life Insurance No Medical Exam

Life insurance no medical exam. The availability of life insurance online without the need for a rigorous medical exam has made buying life insurance much simpler for many people. There is a limit to the amount you can get though.

If you are between age 18 and age 65 no exam life insurance can be bought online. One carrier limits the amount to just under $400,000. All you need do is answer a few targeted medical questions.

The medical exam has been used for years to determine qualification for coverage for many years, it has also been used to help classify risk. Technology has got to a level where in growing cases medical exams are no longer necessary, life insurance companies can get the information required in seconds once they have basic information on an applicant.

It is important to note that the providers of the required information readily avail themselves to carriers. The Medical Information Bureau report, fondly referred to as the M.I.B. report, is invaluable. If you have been diagnosed with any condition which may affect risk this is where life insurance carriers get their information. This is literally done in a matter of seconds. Life insurance no medical exam benefits from this.

A Pharmacy Report also helps the company decide to issue or not to issue a policy. Think about it, one can quite easily determine what ails a person by the medication prescribed. This is very helpful to the life insurance company. We can also say this helps you, the applicant, as well. It saves you time, it also helps you get covered quickly.

If you are in fairly good health and the amount of coverage you need is less than $400,000 you should try applying for no medical life insurance online. In the recent past only term policies could be acquired this way, whole life and universal life can now be bought online without a physical. You will need to call for the whole life and universal life rates though.

Life insurance no medical exam is something the life insurance companies like, it costs them less to issue a policy.

Life Insurance Plans Available Online

Let us take a look at some of the life insurance plans available online for your scrutiny. For a long time now term life insurance plans have been offered. This allows you to put a policy in force more quickly than previously. It used to be that an applicant had to make an appointment with an agent who would go to your home or office to explain the details of the policy you wanted to buy.

In today’s world, and in future times, you buy your policy quickly online. The time it takes to get your policy in your hand is literally cut in half.

Everybody seems to want to buy term life insurance today. It could be because term life insurance policies cost less or it could be that they are easier to come by. Quite a few companies have recently introduced universal life insurance plans as well as whole life which you can buy online.

The verdict as to what type of policy people really want may soon change, we will see. You can get the rates and values by speaking to a licensed agent for the time being. I look forward to the day when all this information is directly available online. The competition is going to be stiff online just like it is off line when buying these permanent life insurance plans.

So here is what we have. 5 year, 10 year, 15 year, 20 year and 30 year level term life insurance policies are available in just about any amount online for purchase. In some cases you can complete the actually complete the application online and get approved or declined in minutes. These companies do not ask for a medical exam. They do want answers to medical questions though.

Generally though you give the life insurance companies some basic information and they will have a licensed agent call you to complete the entire application or just part one of the application. You may be required to have a physical examination done at the companies expense.

It just seems that the time is coming when everything will be done online. All life insurance plans will be available for purchase online. That should be fun. You will still need to do a physical in some cases though.

Life Insurance No Exam Required

Life insurance no exam. Everyone needs some type of life insurance at some point. Some don’t want to do the medical exam or simply have no time to sit with an examiner and go through their medical history. Life insurance companies have given this great consideration and come up with a “life insurance no exam” type of underwriting.

What they do is to allow the licensed agents to go through a shorter questionnaire which covers all the applicants medical history then verify the answers they get. You see, technology has got to such a level where it is pretty easy to get details about a persons present and past medical conditions. The company has to get a signed authorization before they can do this.

The Medical Information Bureau is an excellent source for this information. They have a database of information on just about every person who ever visited a physician, medical clinic or hospital. It only takes seconds for the life insurance company to get this information and it it pretty accurate.

Another source of information is the Pharmacy Report. There is a database of every prescription ever filled in a persons name. Life insurance underwriters can tell you what type of ailment you experienced just by the prescriptions you filled. Each drug has a limited number of conditions that they are used for. Certain combinations of pharmaceuticals are applied to certain ailments. I am not a physician but these companies have physicians who work for them.

There are certain limits to the amounts of life insurance no exam required that you can apply for. This varies from company to company and by plan. The maximum in some cases is $250,000, other companies offer up to $350,000 or $400,000 depending on the type of life insurance you want to purchase.

Life Insurance Needs

Let us take a look at life insurance needs. Who needs life insurance, why should one pay out money for a life insurance policy?

What is a life insurance policy really all about, what does it do? Life insurance is really a contract between a life insurance company and an individual. This contract states that upon the death of this individual the sum insured will be paid to a named beneficiary or the estate of the insured.

That being settled let us look at who needs life insurance.

Married Person With Dependent Children

The life insurance needs of married people with dependent children cannot be disputed. While you are alive and have an income you will do whatever is necessary to be sure the children have a roof over their heads and food to eat. You also sacrifice if necessary to provide an education for your children. If you have a spouse you want to know that s/he is able to continue on even if you died. There are tremendous life insurance needs there simply because you are married and have dependent children.

Single Parent

Life insurance needs for single parents are humongous. Think about it. You have to protect the children just as the married person does. When a married person dies there is at least one person surviving to take care of the children. The single person’s need is greater because someone may need to be paid to look after the children if this parent died.

Single Person With No Children

Life insurance needs are a lot fewer for a single person with no dependents. Outstanding debt, if any, need to be paid off. Funeral expenses as well as attorneys fees for probate need to be paid.

Business Persons

Business peoples life insurance needs take many different forms. Many businessmen need to have a life insurance policy to cover floating debt which may be necessary just to stay in business. Sole proprietors need life insurance to provide start up funds if they want a relative or friend to restart the business.

Key person life insurance is a necessity. You need a policy on that person who you cant do without. If that employee takes a vacation you have a problem. Think about the problems that would arise if s/he died.

Partnerships and small corporations have life insurance needs that cannot be ignored. These policies are used to fund buy sell agreements if a partner or shareholder should die. The proceeds go to the surviving partners or shareholders upon death and are used to buy out the shares from the deceased persons heirs as per the agreement.