Category Archives: Insurance

14 More Things You Probably Didn’t Know about Death

 

As a follow up to our post, The 19 Things you Probably didn’t Know about Death, here are 14 additional things you might not know about death:

Your Doctors’ Sloppy Handwriting Could Be the Death of You
According to a 2006 report from the National Academies of Science’s Institute of Medicine (IOM), misunderstandings in medication and dosage due to poor handwriting have killed more than 7,000 people annually. The recent introduction of electronic prescriptions is expected to significantly cut down on these deadly errors.

Snack Dispenser, or Bloodthirsty Killing Machine?
Since 1977, an average of two to three people per year have been crushed to death by vending machines. So if your candy bar gets stuck in the little coil, just leave it. You don’t want to piss these things off.

The Left Hand Path…To the Grave!
More than 2,500 left-handed people die each year from using products made for right handed people. The deadliest of which being the right-handed power saw.

Hot Shower Hazard
In the U.S., hot water related burns account for roughly 1,500 hospital admissions and around 100 deaths per year.

The Little Soldier’s Last Stand
Muscle cells activated by calcium ions can cause postmortem muscle contractions, particularly in the penis, which can cause erections, and even ejaculation, after death.

The Living Dead
Cotard’s Delusion (Also known as Walking Corpse Syndrome) is a rare mental illness that causes living people to believe they are actually dead.

When Masturbation Turns Deadly
Auto erotic asphyxiation is the act of strangling or suffocating yourself in order to heighten sexual arousal and orgasm during masturbation. Unfortunately some people just don’t know when to quit, leading to roughly 600 deaths per year from auto erotic asphyxiation.

Man’s Best Friend?
We’re all transfixed by shark attacks in the news, but did you know that your furry friend is a bigger menace to humanity than Jaws? That’s right, dogs kill roughly 34 people per year in the U.S. And while the Pit Bull is predictably the biggest culprit, causing more than 245 deaths between 1982 and 2013, breeds that are considered to be more family friendly can also be dangerous. Labradors and Lab-mixes accounted for 54 fatal attacks in the same 21-year period.

Eaten by Your Own Stomach
Your digestive system is loaded with digestive bacteria that lives on after you pass away. Once you die, this bacteria begins eating away at the dead tissue in your gut before spreading to the rest of your body.

Immortality is Real
There is a secret to eternal life, but unfortunately for you, it involves being a jellyfish. The Turritopsis dohrnii (also known as the Immortal Jellyfish) is one of the only known organisms on the planet to have developed the ability to return to a polyp state. This unique transformation process essentially enables the jellyfish to restart the life cycle over and over again at any stage of its life.

Himalayan Popsicle Graveyard
Mount Everest is littered with the frozen bodies of about 200 failed adventurers. Their corpses now serve as gruesome landmarks for climbers on their way to the summit.

Tunnels of Terror
Due to suicides, accidental falls, and the occasional psychopathic pusher, around 50 people per year are fatally struck by New York City subway trains.

You Are Constantly Dying
About 40 million cells in the human body die every minute.

Dead Man Talking
Due to postmortem muscle contractions, gas that has built up in the lungs can sometimes be forced out through the mouth resulting in eerie groans, moans and sucking sounds from the lips of the deceased.

There you have it – 14 facts about death that you probably now wish you didn’t know. But I bet you’ll think twice about shaking that vending machine the next time it steals your dollar.

If this article inspired you to look into life insurance,  get term life insurance quotes here or contact us if you would prefer speaking with one of our representatives.

Article source: http://www.lifeinsure.com/14-more-things-probably-didnt-know-death/

What are Life Insurance Settlement Options?

When the named insured on a life insurance policy dies, the beneficiary (or beneficiaries) is eligible for the policy death benefit. Inside the life insurance policy, there are life insurance settlement options that pertain to the method in which the funds will be paid to the beneficiary. Normally, there are a number of different settlement choices that are available to the beneficiary (beneficiaries).

In many circumstances, beneficiaries will select the lump sum payment. This happens when the overall amount of the funds are settled at one time in one payment. Proceeding with this choice can often help the beneficiary in choosing to pay off large obligations such as funeral and burial expenses, as well as any other final debts of the deceased. The funds may additionally be used to replace the insured person’s income and helping surviving loved ones to pay ongoing living expenses moving forward.

If the beneficiaries would prefer not to collect the whole amount of the death benefit at one time, there are alternative settlement options that can be chosen. Several of the most common of these could include:

Interest Income Option

Using the interest income option, the life insurance company holds the funds and will pay a specified amount of interest on the funds. The interest can be disbursed on a monthly, quarterly, semi-annual, or annual schedule. When selecting this option, the beneficiary will have the capability to get a portion or all of the proceeds when needed.

This might be a suitable choice for individuals who do not really want the life insurance proceeds until a future date, for example, if the money was to be used for a child’s college education expense a number of years in the future.

Life Income Option

The life income option is comparable to an annuity. When deciding on this insurance settlement option, the policy’s beneficiary will be promised to get an income for the balance of his or her life – irrespective of how long it may be.

The exact amount of that income will always be dependent on the total of the policy death benefit, in addition to the age and gender of the beneficiary, as these are determining factors in the income recipient’s life expectancy.

Joint and Survivor Life Annuity Option

If using the joint and survivor life income annuity option, the beneficiary will be permitted to annuitize the death benefit payments structured upon two or more individual lives.

This would mean that the benefit payments will be dependent on the amount of benefit proceeds, as well as the life expectation of the named beneficiary who is anticipated to live longer. The payout of the benefit proceeds will consequently continue to pass from one beneficiary to the other up until the last beneficiary has died.

Specific Income Option

Should the beneficiary choose the specific income option, they will get an equal measure of income each year for a specific number of years up until all of the benefit proceeds have been paid out.

Using this settlement option, if the beneficiary should die before all of the benefit income has been collected; another person could be chosen to accept the balance of the benefit payments until all benefit payments have been paid.

Fixed Period and Fixed Amount Options

The fixed period option will pay out both an amount of principal plus interest to the beneficiary during a stated time frame. If the primary beneficiary should die before the whole amount of the proceeds have been paid, the balance of the funds will be paid to the contingent beneficiary that was identified in the insurance policy.

Using the fixed amount settlement option, the death benefit proceeds will be given out in a fixed amount over time until both the principal and the interest have been totally paid out to the beneficiary. While using this specific option, the recipient (beneficiary) has the option to either increase or decrease the payment amount – and if they prefer, they could even change to a completely different settlement option entirely.

Choosing Life Insurance Settlement Options

When it comes to dispersing the death benefit proceeds from a life insurance policy, there are several options to pick from. Consequently, it is usually a good idea to discuss which strategy would work better with an expert in the life insurance field. This way, you can be confident that you comprehend how every option functions and which one would work most effectively for your specific situation.

In any event, irrespective of whether the life insurance proceeds are obtained as one lump sum or in an installment option, the primary amount of the proceeds is generally free to the beneficiary of federal income taxation.

Advance Settlement Planning

Obtaining the settlement from the life insurance policy is only about half of the battle. It is essential that you’re buying the best type of life insurance for your family, so when the time arrives to get the payout from the insurance company, your family has the funds that they will need. There are dozens of assorted factors that you should consider when searching for the best life insurance plan to accommodate your family’s needs.

There are two distinct kinds of insurance plans that you want to choose from, a whole life insurance policy or a term life insurance policy. Each one has its particular advantages and disadvantages that you’ll wish to consider based on your life insurance needs.

In addition to getting the right type of policy, it’s essential that you buy enough insurance coverage for your loved ones. Without sufficient life insurance coverage, you could very well leave them with added debts that they will not have the money to pay off.

Speak with an Independent Life Insurance Agent

Certainly, for most individuals and families, life insurance may be confusing enough without having to consider the many settlement options available to the beneficiary. Fortunately, this is a decision that can be made after the named insured passes, but it makes sense for your spouse or another family member who has been designated your beneficiary to understand their options in advance.

Article source: http://www.lifeinsure.com/life-insurance-settlement-options/

Is Return of Premium Life Insurance a Better Deal Than Whole Life?

At LifeInsure, we’re strong believers that term insurance may be the best life insurance for the majority of people. It offers an appropriate financial safety net at a budget-friendly cost and is clear-cut, so you understand precisely what you’re getting. We also feel that return of premium life insurance is a policy that some people should consider.

Return of premium life insurance might be a good term life insurance option for some people. Return of premium does just what it declares: when the term of the insurance policy is complete, all the premiums are returned to the insurance policy holder. It’s more costly than a conventional term life policy, because it comes with a money-back guarantee.

Another well-known alternative is whole life insurance, a form of permanent life insurance that remains in force for as long as the insurance policy holder pays his or her premiums. It’s also more costly than term life insurance —by a significant amount.

Individuals who may want more than a standard term life insurance policy understand that both of these are more expensive and contemplate, “If I’m paying much more, why don’t I simply get the policy that will last my whole lifetime? Whole Life looks like the better choice!”

But a return of premium policy might be a better purchase for somebody wanting to get additional value for the price. Here is why:

Comparing Return of Premium Term Insurance and Whole Life Insurance

Return of premium and whole life policies aren’t just different for the benefit of being different. They both have benefits – or at least perceived benefits – and negative aspects in comparison to conventional term life insurance.

Comparing Benefits to Term Life Insurance

The most significant benefit to buying a return of premium life insurance policy is stated in the product name: you receive all the premiums back at the end of the term.

Many people are convinced that life insurance is a misuse of money if it will never pay out, that they have put significant money into something and didn’t deliver something tangible in return. This is the wrong way to think about it for three simple reasons.

return of premiumFirst, it means you outlived your insurance policy, which is awesome.

 

 

return of premiumSecond, you did obtain something: peace of mind that your personal obligations would be taken care of after you’re gone.

 

 

return of premiumFinally, without life insurance coverage, you’re presuming that nothing terrible will happen to you or, at the very least, your family would be able to handle all expenses without your salary contribution. Those are both huge assumptions.

 

 

A return of premium insurance policy can allow an insured person to feel much better about their investment by providing a monetary return if you outlive the insurance policy – a win-win. It’s money you’ve actually paid and not “brand-new” money, but it can be an attractive boon in your retirement to get a major sum of money returned (like an extreme version of finding five dollars in a jacket pocket).

Whole life, on the other hand, will last for as long as you pay your premiums. That can offer a feeling of ease that you will always be protected and your beneficiaries will receive something, no matter how long you might live. The cash value component of whole life also functions as a mandatory savings vehicle. Over time the insurance company reduces its commitment to cover your death benefit as your cash value increases and subsequently becomes large enough to cover the whole death benefit payout.

Potential drawbacks compared to term life insurance:

Of course, as with almost everything, there’s an additional side of the coin, and there are a few drawbacks to both of these insurance policies that term insurance doesn’t have.

In a return of premium insurance policy, you pay a little bit extra each month and then receive the money back at the end of the policy period – normally 20 or 30 years later. But consider what you could have accomplished with that money in that period of time.

We are going to get into some numbers in a bit, but let’s say you are paying $70 more each month than a conventional term life policy for the advantage of getting that money paid back to you. At the end of a 20-year term, that’s an additional $16,800. If you invested that money in a retirement plan or mutual funds, you could have multiple times that, dwarfing the total you “saved” by getting the premiums paid back.

Whole life has comparable disadvantages. The cash value component typically doesn’t produce as high a return as other investment instruments, you have to pay for an insurance policy later in life when you most likely don’t need to have it, and you could be accomplishing a lot with the additional money you’re paying out on the policy. That’s why many financial consultants have a strategy of “buy term and invest the rest.”

Return of premium life insurance has a lot more value than whole life insurance policies:

In the end, if you’re going to invest some extra money in your life insurance, a return of premium insurance policy offers a better value than a whole life. You get an extra benefit, and it’s a great deal cheaper.

Let’s look at an example.

A very healthy 30-year-old male considering a 20-year, $500,000 return of premium insurance policy can buy it from AIG starting at about $91 a month. A female in very good health can buy it for about $75 a month. Similar policies for a man and woman from Prudential Insurance Company would cost about $101 and $88 a month, respectively.

 

Compare and contrast that to a whole life policy from State Farm. A $500,000 policy for a very healthy 30-year-old male is about $459 a month, and $409 for a female.

 

Both insurance policies cost more than a conventional term life insurance policy, but yet the price difference is huge. A complete year of a return of premium policy will cost you the same as paying for just a few months of a whole life insurance policy.

 

Additionally, you will get that cash back in the end. Whole life has a financial investment option but, once again, you might not see huge returns from it. Using a return of premium policy, you can continue to practice “buy term and invest the rest,” investing the $300+ you are not investing in a whole life policy each month and having the premiums returned.

 

At the end of the day, a budget-friendly conventional term life policy will be adequate for most people’s needs. But if you intend to get some additional value out of your insurance policy and then have to decide between a return of premium and whole life insurance, a return of premium policy is the obvious winner for most folks.

Article source: http://www.lifeinsure.com/return-premium-life-insurance-better-deal-whole-life/

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