How to Save Money on Life Insurance

A time-honored adage reminds us that “Money saved is money earned”. According to a recent media poll, most senior citizens like investing in life insurance in order to prevent money from being wasted. Technology can be a key facilitator in finding the best place to make this money-saving investment. EFinancial empowers consumers to use technology and find the very best value.

The new consumer-centric online marketplace has compelled life insurance providers to step up to the plate. The newly transformed life insurance company has become a money saving corporation catering to the needs of today’s economy-minded consumers. A recent blog post set out to advise consumers on how to save money by smart investing in life insurance.

How to save money when investing on life insurance – Consumer should always evaluate the financial soundness of companies when investing in life insurance. A great many companies offer life insurance products these days. Which are the best? Narrow down your search by focusing in on companies that have a have a good reputation in the market. Avoid being lured by those who offer low premium rates. A lesser known and lesser reputed premium-leader could turn out to be the wrong choice in the long run.

-Determine the right rate class- Once you have decided which companies you want to go for determine the rate class that suits you best. Most of the life insurance companies sell different price classes.

- Find the best rate – Locating a good rate may be a daunting task for you as many companies essentially offer different rates for the same policy.

-It’s advisable to look for renewal guarantees- Always go for renewal guarantees. So, that after the current renewal ends you are able to start a new term and in the process save money.

Getting the right kind of deal and saving money by buying life insurance may turn out to be a messy affair if you do not take proper precautions before venturing out to find the deal that suits you best. It is a good idea to get some handy tips from an industry insider so that you do not fall in a financial trap.

Saving money is all about making then right moves at the right time. Invest in life insurance that returns the optimum value to yourself and your family.

Life Insurance For Business Owners

The Houston Chronicle offered some sage advice in response to a reader question this week. The columnist was Ron Consolino, a management counselor for SCORE, Counselors to America’s Small Business, a volunteer, nonprofit association and a partner of the U.S. Small Business Association.

The question?

An entrepreneur died suddenly after a successful startup. His business could not go on without him. This created a hardship for his family, for investors and for employees. What could have been done to protect their interests?

Entrepreneurs are often too busy developing an idea and building a successful company to consider what would happen to their business if they, a partner or a key employee were to die suddenly.

If they’ve guaranteed a business loan, it’s likely that the lender will call the loan upon the death, leaving the successors without critical working capital.

“A business owner has the obligation to protect the ongoing viability of the business,” according to George Black, SCORE counselor and a former insurance industry advisor.

The best way to reduce this uncertainty is to have life insurance for your business.

“Life insurance can soften the economic blow and provide the necessary cash to stay in business during the transition,” says Black.

It may not be optional. Before making a business loan, many banks will require the business owner to have a life insurance policy.

Life insurance can provide for the successful liquidation of a financial interest in the business, thereby protecting heirs. If employees are scheduled to assume ownership following the death of the owner, the insurance policy can be designed to provide funds for the purchase of the business.

In addition, the life insurance policy can be used to pay federal estate taxes. It also can fund a buy-sell agreement between partners.

If the business is to be sold outright after a death, the policy will provide working capital for the transition. The availability of a ready source of cash will make the business much easier to sell.

Assets are usually discounted during such a sale and the availability of insurance funds will help your heirs.

A related type of insurance is “key person” insurance, which compensates a company for the loss of any other employee who is vital to the business operation. The business has funds to tide it over while the business slows down, and there are funds to search for and compensate the key person’s successor.

For businesses with multiple owners, each partner should have a life insurance policy to facilitate an automatic buyout of the dead partner’s interests.

How to File A Life Insurance Claim

Death comes uninvited. The initial shock and the sorrow of a sudden loss can make even the simplest, most straightforward steps, like filing a life insurance claim, seem overwhelming and complex. All too often, the spouse of a family breadwinner does not have the details about how to go about claiming life insurance.

While procedures, conditions and requirements may vary, common sense and full disclosure of information typically represent the simplest path to filing a life insurance claim.

Filing A Life Insurance Claim

If the the original policy is on file or in hand, the claims process is considerably easier. If the policy is missing, or out of reach, the details should be gathered and made available to to the insurance company, including the name of the policyholder, the policy number and the date of issuance of the policy.

Completing a Life Insurance Claims Form

After the policy has been found, the next thing to do is to locate the agent who sold your spouse the policy. If the agent cannot be found, the insurance company can be approached directly and the life insurance claimant or “nominee” can fill out the claims form. When completing the claims form, the nominee has to specify the date, place and cause of death. Along with this, details of the insurance policy also need to be filled in.

The claims form needs to be accompanied by a set of documents. The most important of the lot is the death certificate, issued by the municipality where the person was buried or cremated. This has to be accompanied by a statement by the doctor(s) who treated the policyholder before death.

Life Insurance Claims In Case of Accident

In case the death was due to an accident, then a first information report needs to be filed with the police, a copy of which has to be filed along with the claims form. Along with this, a police report, which has details of the circumstances of the death, and a post-mortem report (if at all it was carried out) also need to be filed.

Also, the nominee needs to prove that he or she is the nominee mentioned in the policy. In this a case, a copy of any photo identity card suffices.

There is no fixed timeframe within which the claim needs to be filed. The only thing that the nominee needs to prove is that the policy was in force when the policyholder died.

What if the premiums haven’t been paid?

If a term insurance policy has lapsed, because the policyholder has not paid the premiums, the insurance company does not process the claim.

Term insurance is pure insurance. In term plans, in case of death of the policyholder during the period of the policy, his nominee gets the sum assured (commonly known as the cover age amount). Of course, if the policyholder survives the period of the policy, he does not get anything.

In case of insurance policies other than term plan, however, a more lenient view is taken, provided the policyholder has paid premiums for three consecutive years before defaulting. After deducting for the premium due and other charges, the proportionate sum assured is paid out.

Find more information in the EFinancial Insurance E-Learning Center.