When shopping for life insurance you will need to decide between many variations including: term life insurance, whole life insurance, universal life insurance mortgage life insurance, and whole life survivorship. Each type of life insurance offer a unique level of pros and cons. Consumers need to take time to learn the details of each type of coverage to ensure the proper purchase.
It is essential for consumers to know a lot about life insurance before buying. As noted above, there are many types of policies as well as hundreds of companies that sell them. Those who have a strong knowledge of what is available and what they need usually have the easiest time finding and purchasing a quality life insurance policy.
Life Insurance Ratings -- Which rating is available to you?
Life Insurance health ratings are determined on current and past health history. These ratings take into account what you see the Dr. for, the types of medications you take, and pre existing conditions. Next is the the 'paramedical exam'. This is when a nurse comes to your house and gives you a complete physical. Blood, urine tests, and asks medical questions. Final determination will come from a combination of these items that are sent to the underwriting department.
Based on your 'health history' and your immediate paramedical exam, the carriers underwriting department will put you into a table rating with 'preferred plus' being the best rate class you can get. So, a young healthy person can usually get preferred plus, but - say someone in their 50's that has high blood pressure and his height and weight arent' that good will get a standard rating. If you need more help selecting a policy, give us a call -- Morgan Moran, or Vince Bagni - Paramount Insurance (800) 554-9142.
| "Dear Paramount. -- We are so grateful for your help in selecting our life insurance policy. Special thanks to our consultants, 'Vince' & 'Morgan' for answering all of our questions. We couldn't have done it without them." -- Jeff Bergin, Apopka, Florida. |
| NEWS THAT AFFECTS YOUR LIFE INSURANCE RATES
Life Insurance Companies Get Bailout Money! The Treasury Department Wednesday confirmed that life insurers are qualified to join banks and carmakers on the list of industries getting taxpayer bailouts. In a statement, the agency confirmed that certain life insurers are eligible to receive an unspecified amount of the money that remains from October's $700 billion Wall Street rescue program. The transfer of the money is expected soon. "There are a number of life insurers who met the requirements for the Capital Purchase Program because of their thrift or bank holding company status. These companies applied within the appropriate deadline," said Andrew Williams , a Treasury spokesman, in a statement. "These are among the hundreds of financial institutions in the pipeline that will be reviewed and funded as appropriate on a rolling basis." The $218 billion program was created as part of October's bailout and is designed to help bolster the balance sheets of financial institutions. In exchange for receiving capital, participating companies provide senior preferred shares to the Treasury Department , paying a dividend of 5 percent annually for five years and 9 percent if the money hasn't been repaid after that. At the end of 2007, before the economy's steep swoon, life insurers had assets under management exceeding $5.1 trillion , half of which was in corporate bonds. Life insurers are the largest buyers of corporate bonds, which mature over a long period. Insurers try to match these long-term investments to the risks they're assuming as they guarantee retirees annuities that are dispersed over similarly long periods of 15 or 20 years. The only insurer to date to receive bailout money is American International Group , which was brought to the verge of collapse by problems in its Financial Products division, not in its insurance business. The Federal Reserve rescued AIG on Sept. 15 with an $85 billion bailout that's grown since to about $180 billion . In order to receive the funds, life insurers must own a regulated bank or thrift. Companies that met this qualification and sought funds — as reported by McClatchy on Oct. 24 — include the Hartford Financial Services Group and Lincoln National . Prudential Financial already owned a thrift and has also applied for taxpayer funds. Two other insurers, Genworth Financial and MetLife , qualify for funds but hadn't indicated before Wednesday whether they've sought rescue money or would in the future. The American Council of Life Insurers , a trade group, welcomed the confirmation by Treasury that government funds are forthcoming. "As we have argued all along, allowing life insurers to participate in the (program) would be consistent with the stated goals of the program to increase the flow of financing to U.S. businesses and stabilize the credit markets," said Frank Keating , the council's president and a former Oklahoma governor, in a statement. Many life insurers offer consumers variable annuities that pay a guaranteed return, regardless of whether bulls or bears are running the stock market. Although the obligations require payment years off, the financial markets are in such turmoil that life insurers are being forced into protective strategies that make it hard to offset the risks they've assumed. The money from the Treasury Department program will allow life insurers to wade back into the corporate bond market without significantly affecting their operating capital. The life insurers' council said the bailout was for a broader good. Keating said that the goal of the program "is to provide capital to the marketplace in order to unclog credit and financing that corporations rely on to grow and in turn hire new workers. "Providing this funding to life insurers would clearly be in line with this goal," he said, acknowledging the unusual nature of Treasury's decision, "particularly concerning an industry that does not have a federal regulatory presence."
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