I want to start off this 2010 with an article regarding Life Insurance. Many people find this topic morbid but believe me when I say this contract is as important as a Will and should be taken just as seriously as health insurance. Due to the length in details of this article I have provided chapters for easy reading. I hope this will educate you on Life Insurance and the importance of its necessity. (Note: For better understanding "You" is the policy owner and the insured)

Chapters:

1= Introduction

2=When/If you have Life Insurance already

3= Difference between a Insurance Agent and Broker

4= Types of Policies

5= What are Riders and popular types of Riders

6= The medical exam

1) About general Life Insurance:
This is a contract between you and an insurance company to pay a certain amount (the premium) to a company in exchange for a benefit (called the Death Benefit, face amount, or policy amount) to the beneficiary (the person you want to get paid in the time of your death). This can range based on the type of policy (which will be discussed momentarily), your health, your hobbies, the Insurance company, how much you can afford in premiums, AND the amount of the benefit. It sounds overwhelming but it is not if you have the right agent or broker.

Now many people can say that Life Insurance is like gambling. You are betting that you will die in a specific time and the insurance company bets you won't. If the insurer wins, they keep the premiums, if you win...well you die and the death benefit goes to the beneficiary. This is a very morbid way of looking at it and if that is the case you can say the same for health insurance, auto insurance, and rental insurance. The truth is, you need life insurance in order to ease the burden of your death. Example 1: A married couple, both professionals that earn very well for a living have a child and like any other family has monthly expenses and 1 of the couple has a death. The odds of the spouse going back to work the next day is very slim. Odds are in fact that your ability to function in your career will lower which RISK the cause of not being able to pay expenses or having to use one's savings or investments in order to pay for these expenses NOT INCLUDING the death tax and funeral expenses. This can be financially devastating. Example 2: lower middle income family, a death occurs to 1 of the income earners. How will the family be capable of maintaining their current financial lifestyle?

Life insurance is about the ability of lowering the risk of financial burden. This can be in the form of simple cash or taxes via estate planning.

KEY Definitions:

The Insured: The person that is covered by the insurance company (He/She does NOT have to the policy owner)

The (policy) Owner: The one that pays the premium, controls the beneficiary, and basically owns the contract (Does NOT have to the insured...hope you understand it can be either/or).

Face Amount: Also known as the death benefit. The amount to be paid to the beneficiary.

The Beneficiary: Is the person/persons/organization who will receive the face amount (death benefit)

2) When/If you have Life Insurance:
First, you should review your beneficiaries once a year and your policy approximately once every 2-3 years. This is free! You need to make sure the beneficiaries are the people/person you want to get paid! Divorce, death, a disagreement, or anything of the sort can make you change your mind about a particular person to receive the benefit so make sure you have the right people, estate/trust, AND/OR organization (non-profit preferably) to receive the benefit. Furthermore, you need to review every 2-3 years because many companies can offer a lower premium OR raise the benefit if you renew your policy or if you find a competitor that sees you have been paying the premiums may compete for your business. Either way, this is something you should consider to either save money or raise the policy amount! This is a win-win for you so there should be no reason not to do this.

3) Life Insurance Agent or Broker, what is the difference?:
The major difference is an Agent is usually an independent sales man that usually works with different insurance companies in order to give the client the best possible policy while the Broker works for a particular company. My personal advice: always choose an Agent. Not because I am one myself BUT because an agent can look out for your benefit by providing different quotes, types, riders that are available (explained later), AND pros/cons regarding each insurance company. If you don't like a particular insurance company, tell the agent and he should move on to the next carrier (if he persist for some odd reason, fire him). Buyers BEWARE: The Agent should get paid by the carrier that is chosen, not by you specifically. If an Agent asks for money upfront for anything, RUN! There are also Insurance consultants that you pay but to keep things simple, see an Agent. Consultants and Agents are also great in reviewing current policies in order to lower premiums or increase benefits.

4) Types of Policies:

There are 2 main categories: Term and Permanent Insurance. Within each of the 2 categories have sub-categories. I will explain them at a glance in order for you to make the best possible choice for you and your loved ones. Remember, you can have estate/trust or a organization as the beneficiary. (Note: There are even more sub-sub-categories within these sub-categories but the difference are so small and self explanatory that I have not included it in this article. Once you speak to an agent you will have enough knowledge by this article that you will know what questions to ask and know if you agent is right for you).

Term Insurance: A temporary policy in which the beneficiary is paid only upon death of the insured (you) within a specific time period (hence the word "Term"). Term Insurance is usually less expensive with a smaller death benefit. Some do not require medical exams BUT expect to pay a higher premium since the risk of the insurance company is unknown. Also, term insurance normally does not accumulate cash value (explained in permanent insurance) but can be purchased on top of your permanent policy (for those that may have coverage already):

Convertible Term: Ability to convert policy to permanent. There are some REALLY GOOD policies that require no medical exam, driver history, or hazardous avocations at a certain point in order to convert to permanent coverage guaranteed with all the benefits that permanent insurance policies has to offer.

Renewable Term: Able to renew a term policy without evidence of insurability.

Level Term: Fixed premiums over a certain time period than increases (great for those that are young adults and expect within 10 years to have a increase in pay).

Increasing/Decreasing Term: Coverage increases or decreases throughout the term while the premium remains the same.

Group Term: Usually used for employers or associations. This covers several people in order to reduce premiums. (Great for small business owners)

Permanent Insurance: Just as the name states, this provides coverage throughout the lifetime of the insured. This also builds cash value which is fantastic for tax purposes because if you loan out money to yourself using this cash value there are no tax implications. Few policies may have in general withdrawal tax-free. However in most cases, If you withdraw the cash value you pay the only the taxes on the premiums (the amount that grew) which is fantastic. Just make sure your agent knows not to have the cash value grow larger than the death benefit otherwise it is subject to 10% taxes! Surrender charges may also apply when you withdrawal so PLEASE consult with an agent who can assist you with these details. You should consider Permanent Insurance if you have a family and don't mind an increase in premiums (amount you pay) by a few dollars compared to term.

Traditional Whole Life: Pay a fixed amount of premium in order to be covered for the insured's entire life which includes accumulating cash value.

Single-Premium Whole Life Insurance: Whole life insurance for 1 lump sum premium (usually that 1 lump sum is very large in order to get a great death benefit).

Participating Whole Life Insurance: Just like Traditional Whole life except it pays you dividends which can be used as cash OR pay your dividends for you! There is no guarantee that you will be paid the dividends, this is based on performance within the insurance company.

Limited Payment Whole Life Insurance: Limited payments for whole life but requires a higher premium since you are in fact paying for a shorter amount of time. This can be based on payment amounts (10, 20, 30, etc payments) or a particular age (whole life is paid up at age 65, 75, 85, etc).

Universal Life Insurance: Flexible premiums with flexible face amounts (the death benefit) with a unbundled pricing factors. Ex: If you pay X amount, you are covered for X amount.

Indexed Universal Life: Flexible premium/benefit with the cash value is tied to the performance of a particular financial index. Most insurance companies crediting rate (% of growth) will not go below zero.

Variable Life Insurance: Death Benefit and cash value fluctuates according to the investment performance from a separate account of investment options. Usually insurance policies guarantee the benefit will not fall below a specified minimum.

Variable Universal Life Insurance (also called Flexible Premium Variable Life Insurance & Universal Life II/2): A combination of Variable and Universal which has premium/death benefit flexibility as well as investment flexibility.

Last Survivor Universal Life Insurance (also called Survivorship or "Second to die" Insurance): Covers 2 people and the death benefit is only paid when both insurers have died. This is FANTASTIC and somewhat a necessity for families that pay estate taxes (usually High-Net-worth individuals).

5) Life Insurance Riders, what is it and why is it very important:
Rider is the name of a benefit that is added to your policy. This provides special additions to the policy which can be blended and put together. There are SO MANY types of riders that I would have to write a different article regarding Riders (and insurance companies add new types of riders often) but I want to at least name the most popular (and in my opinion, the most important) that you should highly consider when choosing a policy. Riders add to the cost of the premium but don't take riders lightly; it can be a life saver!

Accidental Death Benefit Rider (AD&D): Additional death benefit will be paid to the beneficiary if you die from a result of an accident (ie: Car accidents, a fall down the stairs). This is especially important if the insurer travels often, relatively young, and has a family. Please note: You can buy AD&D Insurance separately.

Accidental Death & Dismemberment Rider: Same as above BUT if you lose 2 limbs or sight will pay the death benefit. Some policies may offer smaller amounts if losing 1 eye or 1 limb. This is great for those that work with their hands.

Disability Income Rider: You will receive a monthly income if you are totally and permanently disabled. You are guaranteed a specific level of income. Pay attention to this detail, depending on the policy it will either pay you depending on how long the disability lasts OR time frame of the rider.

Guaranteed Insurability Rider: Ability to purchase additional coverage in intervals based on age or policy years without having to check insurance eligibility.

Level Term Rider: Gives you a fixed amount of term insurance added to your permanent policy. This rider can add 3-5 times the death benefit or your policy. Not a bad deal!

Waiver of Premium Rider: If you become disabled which results to the inability to work/earn income, the waiver will exempt you from paying the premiums while your policy is still in force! There is a huge gap between policies and insurance companies so the devils in the details with this rider.

Family Income Benefit Rider: In case of death of the insurer, this rider will provide income for a specific time period for your family.

Accelerated Death Benefit Rider: An insurer that is diagnosed with a terminal illness will receive 25-40% of the death benefit of the base policy (The decision is made between the insurer and the insurance company). This will lower the death benefit however depending on your finances or living lifestyle, this rider should not be taken lightly and should seriously be considered.

Long-Term Care Rider: If the insurer's health compels to stay in a nursing home or receive care at home, this rider will provide monthly payments. Please Note: Long Term Care insurance can be bought separately for more benefit.

6) The Medical Exam:
This section is not to scary you away but to mentally (and possibly physically) prepare you for the medical exam so this way you know what to expect and can get the lowest possible premiums while receiving the highest possible death benefit. This really shouldn't be a concern if you work out regularly and maintain a healthy eating habit (notice I said habit and not diet. Diets don't work for long term).

The exam is mandatory for most insurance policies. Many term insurance do not require one but expect a low death benefit and/or higher premium. The idea of the exam is not just to see if you're insurable but to also see how much they will charge the insurer/policy owner. The exam is done by a "paramedical" professional that are independent contractors hired by the insurance company who either come to your home or has an office where you/the insurer visit. They are licensed health professionals so they know what to look for! In very few cases the insurance company may ask for an "Attending Physician Statement (APS)" from your doctor. This must be provided by your doctor and NOT copies by you. TIP: The "paramedical" job is to give the insurance company a reason to increase your premiums so don't give any details that are not asked.

First part (either called Part 1 or Part A) is complete by the Agent or by you. Part 2/B is the paramedical or physician portion. The best bet is to have your agent contact a paramedical that specializes in mobile exams for an easier exam for you. Paramedical will contact you to schedule an appointment. The exam is not optional so it's not a matter of yes or no but when and where. This entire exam will cost you nothing except time so make the time, life insurance is important!

The paramedical/physician will take your medical history (questions), physical measurements of height and weight, blood pressure, pulse, blood, and urine. Additional tests will vary based on age and policy amount (yes, the higher the death benefit = the more tests that must be provided). Now if the policy is substantial, the insurance company may not send a paramedical but require an actual Medical Doctor to exam you. Of course, this is chosen by the insurance company so remember my tip earlier! This exam may even include a treadmill test and additional crazy exams in order to see if you qualify for that substantial amount and low premium. On the flip side, if you choose a low insurance policy, you will just have a paramedical doing simple tests that mentioned earlier with no additional exams.

What they are looking for: Paramedical/Physicians are looking for health conditions that may shorten your life. Remember, insurance companies are here to make a business and if you're a liability then it might be a risk they do not want to take or raise the premium to make the risk tolerable. Blood and urine is taken to see the following:

- your antibodies or antigens to HIV

- Cholesterol and related lipids

- Antibodies to hepatitis

- Liver/kidney disorders

- Diabetes

- Immunity disorders

- Prostate specific antigen (PSA)

- Drug tests such as cocaine

The Results: They are sent directly to the insurance company's home office underwriters for review. Many times you can request (must be written request) to receive a copy of the results however many insurance companies will automatically do this. Many times they will find abnormalities but it's usually not a concern and just speak to your medical professional for a follow up (remember: the insurance company will look at these exams with a "fine tooth cone" in order to see what the risk are). The underwriters will look at the exam results and the application (remember part 1/a? well, now they want to see if your also lying) and determine the premium amount. Smokers pay more; any nicotine in your system will consider you a smoker, even if it is just socially.

The premium is determined by a category that you fit in. This really depends on the insurance company on how they factor but the general rule is if you are a higher risk, you pay higher premium. If you are standard risk, you will pay a standard premium, and if you are a preferred risk, you will pay a low premium.

You can decline the policy after you receive the final quote after the exam but do remember this: All results will become part of the MIB group's database (Medical information Bureau). This is a clearinghouse of medical information that insurance companies use to store information after you apply for Life/Health/Disability Income/Long Term care/Critical Illness insurance. So for seven years it will be on database. You can receive a free report annually (like a credit check) at their website which I included at the bottom of this article.

Now that you know practically everything there is to know about life insurance. I hope you realize how important it is. It may seem like a lot but the hardest part is simply choosing what type of policy is right for you. This can be done with the help of your Agent. In the end, everyone is different and everyone should analyze their own situation and need for the beneficiaries. If you have even the slightest concern for a loved one regarding what will happen if you was no longer with us then you should consider life insurance. There truly is a feeling a relief once you know you and your loved ones are covered regardless of how much you or that person makes. For many that feel that their loved ones don't need the death benefit due to whatever the case may be ("they earn enough money to survive" is the biggest reason I hear against life insurance), this can be a simple last gesture of "I love you" or appreciation for them being part of your life.

I hope I was able to educate you in Life Insurance and if you have any additional questions please feel free to email me.

MIB website: http://www.mib.com/html/request_your_record.html

Financial Consultant, Risk Manager, Insurance Agent, and Retirement Planner here to give honest opinions on the current financial trends. (*Please note: This is not a solicitation and opinions on this blog are independent and not connected to blogger.com. Please consult with your financial representative prior to applying any recommendations on this blog or twitter. If you have ANY questions, please feel free to contact me. I will be more than happy to chat with you!). http://www.MichaelAponte.Biz

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Insurance as we know it today could be traced to the Great Fire of London, that in 1666 devoured 13,200 houses. After this disaster Nicholas Barbon opened an office to insure buildings. In 1680 he established England's 1st fire insurance company, "The Fire Office", to insure brick and frame homes. The first insurance firm in the United States provided fire insurance was formed in Charles Town (modern day Charleston), South Carolina, in 1732.

In 1752, Benjamin Franklin founded the Philadelphia Aid for the Insurance of Houses from Loss by Fire. It refused to insure some buildings in which the risk of fire was too great, like 100% wooden buildings.

The Principles of Insurance:

The exact time or occurrence of the loss need to be uncertain. The value of losses ought to be relatively unsurprising. In order to determine premiums or in other words to calculate price levels, insurers must be able to estimate them. Insurers require to know the price it would be called upon to pay once the insured event occurs. Most types of insurance have maximal levels of payouts, with several exceptions such as health insurance.

The loss should be significant: The legal principle of De minimis (From Latin:about minimal things) dictates that negligible matters are not covered.The payment paid by the insured to the insurer for assuming the risk is known as the 'premium'.

Potential causes of chance that may give rise to insurance claims are named "perils". Examples of perils might be fire, theft, earthquake, hurricane and numbers of additional possible risks. An insurance policy will set out in details which perils are covered by the policy and which are not. The damage must not be a catastrophic in scale, If the insurer is insolvent, it will be unable to pay the insured. In the United States, there are Guaranty Funds to reimburse insured victims whose insurance companies are bankrupt. This program is managed by the National Association of Insurance Commissioners (NAIC).

Indemnification (compensation)

Anyone wishing to transport risk (an individual, corporation, or organization of any type) becomes the 'insured' party once risk is assumed by an 'insurer', the insuring party, by means of a contract, defined as an insurance 'policy'. This legal agreement sets out terms specifying the total of coverage (reimbursement) to be rendered to the insured, by the insurer upon assumption of risk, in the event of a loss, and 100% the specific perils covered against (indemnified), for the duration of the contract.

When insured parties experience a loss, for a specified peril, the coverage allows the policyholder to produce a 'claim' against the insurer for the amount of damage when specified by the policy contract.

Financial viability of insurance companies

Financial stability and posture of the insurance company need to be a major factor When purchasing an insurance contract. An insurance premium paid currently provides coverage for damges which can arise few years in the future. Due to that, the financial strength of the insurance carrier is most significant. In the past few years, a few of insurance companies became unable to pay, neglecting their policyholders with out coverage (or coverage merely from a government backed insurance pool with less the Priciples and History of InsuranceS-favorable payouts for losses). A number of independent rating agencies, like Best's, provide facts and rate the financial strength of insurance firms.

Risks Assessment

The insurer uses actuarial science to quantify the risk they are prepared to consider. Information is gathered to approximate future insurance claims, ordinarily with reasonable accuracy. Actuarial science employs statistics and probability to analyze the risks associated with the range of perils covered, and these scientific principles are utilized by insurers, in combination with other factors, to decide rate composition.

The Gambling Analogy

Certain people erroneously assume insurance a type of wager (particularly as associated with moral hazard) which executes over the policy period of time. The insurance company bets that you or your property will not suffer a damage while you put money on the opposite outcome. Virtually all house owner's insurance does not cover floods. Using insurance, you are managing risk that you may not otherwise prevent, and that does not lend itself the chance of benefit (pure risk). In other words, gambling isn't an insurable risk.

The "insurance" of Social Solidarity

A few of religious groups among them the Amish and Muslims refrain from insurance and instead depend on support provided by their society when disasters strike. This could be thought of as "social insurance", as the risk of any given person is assumed collectively by the community who will completely bear the cost of reconstruction. In closed, mutual help communities in which other people might actually step in to rebuild total lost property, this arrangement could function. The majority of societies could not effectively support this type of models and it will not function for catastrophic risks.
(Source: http://en.wikipedia.org/wiki/Insurance).

MBA - International Trade & Finance - Heriot-Watt University. Bsc. Computers and Information Systems - Long Island University - C.W Post Campus. Hobby: Photography. Married with two Children.

Owner Editor of:

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Is Travel Insurance Really Necessary?

Travel is already expensive enough, isn't it? The cost of air fare, cruises, hotels, ground transportation, food and activities and entertainment are already high enough. I don't know about you, but I work hard for my money, and when I travel, I want to keep as much of my money in MY pocket as possible. Is travel insurance a necessity or a luxury? Why not cut a few corners here and there. Why buy something if it's not really needed?

My personal answer is, of course, that I am not independently wealthy and can't withstand the potential financial losses I would incur if I require medical care while I'm traveling. Not being independently wealthy also means that I'm in the market for adequate but cheap travel insurance. I suspect that you are in the same position, so you, too need cheap travel insurance. If you're still not sure about that, consider the following.

Did you know that if you get sick or are injured while traveling abroad, your medical plan may not cover all the expenses you will incur? If the costs of treatment are higher than the maximums of your medical plan, you will be responsible for the difference, unless you have already purchased travel insurance. In fact, you may not even be admitted into hospitals in some countries without proof that you have health or medical insurance.

This is true for everyone, regardless of age or length of time abroad. Suppose you fall ill just a few hours after arriving at your destination. Or suppose you make a day-trip to another country, and you are injured in a traffic accident. Or suppose one of your children is part of a group making a class visit abroad, gets food poisoning and requires hospitalization. In all cases, without adequate travel health insurance, you will be responsible for the costs above and beyond the limitations of your existing medical plan.

Therefore, before going abroad, you need to make sure that you are adequately covered by travel medical insurance that won't break your budget. You should check to see if appropriate coverage is already available to you through your medical plan, employee benefits, or even through a credit card. If the coverage is sufficient for your needs, then you can enjoy your trip without incurring the extra expense of travel insurance. However, if you are not sure of your coverage, or if your coverage is inadequate or non-existent, then your next step should be to research and purchase the travel insurance coverage you need.

How Much Can You Expect To Pay?

When I bought my first plane ticket to China a few years ago it cost around $2000 round-trip, and my travel insurance cost me over $500 because I didn't shop around for cheap travel insurance online.

A few years later, a little bit older and wiser, and my travel insurance for another trip to China cost me much less--about $300 for roughly the same coverage. The difference? Before buying my travel insurance for the second trip, I shopped around online and got the coverage I needed, at the right price. If I'd have purchased my travel insurance for this latest trip from my travel agent, it would've cost me about $600 for the trip, and my plane tickets only cost $1,500! Not exactly the smart way to go.

So how much will it cost you? Not as much money as it will cost you if you get sick or injured abroad and you don't have any travel insurance coverage! That's the obvious answer to the question.

In fact, how much travel insurance costs will depend on your age and the type of coverage you choose. Basic policies cost as little as $5.50 USD per $1000 of coverage. On the other hand, you can expect a full coverage policy to cost you from 7 to 10% of the cost of your trip, depending on your age. The older you are, the more you will pay. No matter what the cost of the policy, however, it's sure to be much less than the cost of medical evacuation!

The good news is that you can easily, conveniently and quickly research and locate excellent but cheap online travel insurance and reduce the costs while making an informed purchase. This is much better than taking what you are offered at the travel agency because you can choose from hundreds of travel insurance companies and polices and save yourself a lot of money in the process. One place you can start your search is at Travel Insurance Central, [http://www.travel-insurance-central.com]

What You Should Consider When Buying Travel Insurance

To assist you in your research, here are some suggestions to help you make an informed purchase.

1. Consider the worst-case scenario. If you can financially withstand the worst-case scenario then maybe you don't need travel insurance or maybe you don't need a comprehensive policy.

2. Make sure the policy you are considering provides adequate medical/dental coverage, including medical evacuation coverage just in case you need medical care in a place where the best treatment available is below the standards you are accustomed to in your country. This can happen if you fall ill in a developing country or even on a cruise ship.

3. Check your existing insurance policies for possible coverage. There is no sense in paying more for what you already have in your homeowner or tenant policy, such as theft and loss coverage.

4. If you are a frequent traveler, you should consider annual or year-round travel insurance policies. Sometimes they are called multi-trip travel insurance policies. Whatever the name, these policies can be relatively cheap when compared to single-trip travel insurance policies.

5. Know what you are buying, so read the fine print. Make sure that you understand what the company considers to be a legitimate reason for cancellation or interruption. If the list is too restrictive, maybe you should consider another policy.

6. Don't restrict yourself to buying only from your travel agent. He/She will probably only have one company's product(s) available, and it's there for your convenience, but that convenience can be quite costly!

7. Ask lots of questions about the coverage. Play the "what if" game. Ask for clear explanations of terminology. Make sure that you and the travel insurance company are speaking the same language.

8. Don't buy the insurance through your transportation provider. If the airline goes bankrupt, how adequate will your insurance coverage be?

Once You’ve Bought Your Travel Insurance

Remember that your travel insurance policy covers you between certain specific dates, so don't start your trip early or extend your trip without first changing the dates of coverage on your travel insurance policy. Of course, this might cost you extra, but that's cheaper than finding yourself without coverage when you need it the most.

Also, it almost goes without saying that you should bring your travel insurance policy with you when you go abroad. You can't consult the policy if it's sitting on your desk at home. You should also carry your travel insurance company's toll-free assistance phone number and other contact information with you wherever you go. It does you no good if you get ill or hurt and the necessary policy information is sitting in your hotel room. It's also a good idea to bring your regular medical coverage cards and info with you.

I hope these tips will help you by the best travel insurance for you. Then take your trip with the peace of mind that comes from knowing that you are insured by the right travel insurance policy at the right price. Bon voyage!

Article Source: http://EzineArticles.com/?expert=John_M._Bartanus

One of the most important things you can do as parents is to ensure the financial welfare of your children in the event of your death. Life insurance is the best way to be rest assured that your children will be taken care of if you die. Although we never like to think of that kind of thing happening, but it does.

What is Life Insurance

Life insurance is a policy that you can enter with your insurance company, which promises a certain amount to your beneficiary(ies) in the event of your death. Usually, a spouse will name the other spouse as well as their children as beneficiaries of the policy. As part of the agreement with life insurance, your insurance policy will be a monetary value, that you will in return, pay a monthly premium for. Premiums usually depend on your age, gender, occupation, medical history and other factors.

There are other types of life insurance that may provide benefits for you and for your family while you are still living. These policies can accrue a cash value on a tax-deferred basis and can be used for future needs such as retirement or your child's education.

Do I Need Life Insurance

Earning an income allows you and your family to do many things. It pays for your mortgage, buys cars, food, clothing, vacations and many other luxuries that you and your family enjoy. However, certain situations can cause you to lose your income, and those who depend on you also depend on your income. If any of the following statements about you and your family are true, then it is probably a good idea for you to consider life insurance.

1) You are married and have a spouse.

2) You have children who are dependent on you.

3) You have a parent or relative who is aging, or disable and depends on you.

4) You have a loved one in your life that you wish to provide for.

5) Your 401K retirement plan, pension and savings aren't enough to insure your loved one's future.

What Are My Life Insurance Options

There are four basic types of life insurance that can meet you and your family's needs:

Term Life Insurance

This is the least expensive type of life insurance coverage, and at least at the beginning, the simplest. Term life insurance policies do not accrue cash value, and are fixed over an extended period of time - usually one to 0 years, and they can be renewed. This life insurance policy pays the beneficiary of your policy a fixed amount in the even that you die in the period of time that your policy includes. The premiums of term life insurance are lowest when you are young and increase as you get older

Whole Life Insurance

This type of life insurance is similar to term life insurance, as well as provides cash value. Over time, whole life insurance generally builds up a cash value on a tax-deferred basis, and some even pay it's policy holders a dividend. This type of life insurance is popular, doe to the cash value that is accessible to you or your beneficiaries before you die. Used to supplement retirement funds, or to pay for your child's education, whole life insurance should be used for protection, rather than for accumulation.

Universal Life Insurance

This type of life insurance is a flexible kind of plan. These policies accrue interest and allow the owner to adjust the death benefits and premiums to their current life situation. You decide the amount of premium for universal life insurance, and of you skip a payment, this will be deducted from your death benefit. Universal life insurance stays in effect as long as your cash value can cover the costs of the policy. These rates are subject to change, but they can never fall below the minimum rate that is guaranteed when you sign up for universal life insurance.

Variable Life Insurance

This type of life insurance is designed for people who want to tie the performance of their life insurance policy to that of the financial market. The policy holder gets to decide how the money should be invested, and your cash value has the opportunity to grow more rapidly. However, if the market is poor, your life insurance policy's death benefit will be poor. As with whole life insurance and universal life insurance, you may withdraw against the cash value. Be reminded that withdrawals of this life insurance policy will be deducted from the cash value.

How Can I Save Money With Life Insurance

Below you will find some suggestions on ways to save money while purchasing the life insurance policy that is right for you.

1) If you don't need life insurance, don't buy it. Don't buy more insurance that you actually need in order to provide financial security for your family.

2) Shop around for competitively-priced life insurance policies while you are healthy. Don't smoke, or do anything that might increase your rates. Take care of yourself by exercising regularly and maintaining a moderate and healthy weight.

3) If you purchase a term life insurance policy, look for guaranteed and renewable policies. That way you won't have to periodically continue to shop around for those life insurance policies.

4) You should only buy optional forms of coverage such as riders only if necessary.

5) Shop around and compare life insurance policy rates and coverage. There are thousands of life insurance companies to choose from. It is advised that you get at least three separate quotations of life insurance, and then decide which is the best for you.

Brian M. Gardner is the Founder of Financial-Articles.com - An Online Money Making Resource. Learn how to make money and acquire wealth by investing in stocks and mutual funds, as well as how to be successful in sales, marketing and advertising.

Visit Brian's website at http://www.financial-articles.com. [http://www.financial-articles.com]

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Buying car insurance is not always something that is easily laid out for you. If you have never purchased your own car insurance or you are looking for some helpful new tips, here are some simple answers for common car insurance questions. Before you know it you will be an expert on insurance!

What are the Minimum Insurance Requirements?

For nearly all states you will need to have liability insurance at least. However, if you have a loan on your car and you do not have the title, this typically means that you do not own the car just yet and a higher level of coverage is going to be required. Make sure to check with your state to find out what you need.

What exactly is a Deductible?

In the case that you get into a car accident if you are named at-fault, you might have to pay a certain amount of money. The amount of money that is your insurance company pays will be called the deductible. If there is a balance after the deductible is paid, you will have to pay that out of your own pocket. So if you have $800 worth of damage and you insurance only pays the $500 deductible, the remaining $300 is yours to pay.

Does my credit rating affect my insurance costs?

This will depend on the company that you are signing up with. There are a variety of companies that may do a simple credit check on you in order to determine if you will be able to pay for the needed insurance. Check your credit score ahead of time in order to find the right company that works with all type of credit.

How much car insurance should I get?

The state minimum is always going to be the required amount to drive safely on the roads. If you feel that you are in need of extra coverage that is something that you will need to determine. Look into bodily, collision and MedPay coverage. The more that you know, the easier it is going to be to get the best coverage for your car.

How can I get cheap car insurance?

Many people are constantly looking for ways to save as much money as possible on car insurance. Try taking some safe driving courses or look for online companies that offer lower rates. If you can find the right outlets and the right coverage, you should have no problem getting the cheapest rate.

When it comes to these car insurance questions, the answers are easy to come by. Do some research and make sure that you are get the best possible coverage. Check with your state driving laws to find out just how much coverage is required to drive legally.

Buying car insurance is not always something that is easily laid out for you. If you have never purchased your own car insurance or you are looking for some helpful new tips, here are some simple answers for common car insurance questions. More info on this as well as teen insurance video.

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Auto Insurance

In 1997, the State of Arkansas started tracking the registered motor vehicles in the state with their vehicle liability insurance. This means that the vehicle identification number (VIN) of the motor vehicle in Arkansas must match its corresponding insurance policy declared on the States Office of Motor Vehicle database. Aside from having the same insurance policy on the data base, the state also requires all the vehicles registered in the state to have the required minimum liability insurance.

For bodily injury per one person, the required amount is $25,000 per accident. For bodily injury for two or more persons per accident, the required amount is $50,000.

The property damage per accident is $25,000.

All drivers driving in the streets, roads and highways of the state must carry their insurance cards and must present them to the officer of the law in case of an accident or a traffic stop.

The States Office of Motor Vehicles also requires all insurance companies to notify them of any non-renewal, cancellation and lapses in policy. This means that once your insurance is no longer valid, your vehicle registration is automatically suspended. You will then have to reinstate it and show your proof of liability insurance if you want to legally use it.

Home Insurance

Homeowners in the State of Arkansas generally choose from the three most common types of home insurance in the state: the basic, the broad and the special.

The basic home insurance protects the home from the basic perils, such as fire, lightning, hail, windstorm and theft. The broad home insurance protects the home from the basic perils plus the additional six other perils, such as building collapse, weight of snow or ice and damage from home appliances.

The special home insurance protects the home from all the perils except for earthquake and flood. If you want to have protection or coverage against fire and earthquake, the insurance companies can offer them at additional cost.

The premium for home insurance in the state depends on the following factors: the size of the home and other buildings in the property, the construction cost of the home, the chances of natural disaster occurring in the area, the material of the home, the location of the fire department in relation to the home and the crime rate in the neighborhood. These are the common factors that affect the rate of premium. There are, however, additional ways to reduce the premium; such as availing of the discounts. The best way to get the best price is for homeowners to shop around for home insurance and inquire about how they can avail the discounts they qualify for.

Health & Life Insurance

With the increasing cost of health care, it is important to get health insurance. In the State of Arkansas, there are several ways to find affordable insurance for the whole family. The first thing to do is to shop around for health insurance. Do your research and you will certainly find several insurers that will offer you health insurance that fits your budget. The next thing is try to get the major medical coverage.

Now under the law of the state, insurance companies are prohibited denial or limitation of coverage if you are under a group plan. The law also prohibits insurance companies from canceling a policy because of illness. If you are unable to get health insurance because of a preexisting condition, the Arkansas Comprehensive Health Insurance Pool will offer you coverage.

Now, in terms of life insurance, the most common types in the state are term life insurance and cash value insurance.
The term life insurance shall cover you for a period of one to several years and will pay the death benefit if you die during the covered period.

The cash value insurance is lifetime coverage. At the same time, you can borrow money from the insurance or your policy. This, of course, has higher premium.

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