Time for a Life Insurance Audit

I’m sure you’ve read this quote before: “The unexamined life is not worth living.” Socrates said it when choosing whether to testify about his own life, even in the face of a verdict that could mean certain death.

One of the wisest examinations we can make as financial providers in today’s world concerns both life and death. It’s a Life Insurance Audit.  Times change, children get older, the financial status of our homes, cars, and investments change. Insurance is not one of those things that is a one-time, “set it and forget it” proposition.

As unpleasant as the prospect of leaving your loved ones may be, it is also an inevitability. A Life Insurance Audit is one way to make sure you are still getting the value you want and the financial benefit that others will depend on in your absence.

Ask yourself these worthwhile questions about your current policy.  Can I get the same coverage for less than I am now paying and put more money back in my pocket? Can I increase the benefit my family will receive for the same premiums I am now paying?  Can I extend my coverage to last longer without it costing a fortune?

As advocates for consumer education and consumer purchase options, Efinancial has put in place the tools and materials to put you “in the know.” but even more importantly, Efinancial makes it possible to audit your life insurance about as quickly as humanly possible. Just use our easy, insurance quote request form and you can compare your life insurance coverage, rates and term to policies from not just one, but many of America’s top insurance companies.

You won’t find a more objective or more efficient life insurance examination than with Efinancial. That’s because unlike most insurance agents we’re not here to sell you any one policy or any one company.

As Socrates said, an unexamined life is not worth living. But an examined life insurance policy is worth living with and living well!

Economics Bestseller “Super Freakonomics” Answers “Why Suicide Bombers Should Buy Life Insurance?” (Hint: To make it harder to datamine them!)

The New York Times’ runaway bestseller, “Freakonomics,” was a worldwide sensation that sold more than four million copies in 35 languages and changed the way we think about number-crunching and socio-economics.

Now, the distinguished writing team of  University of Chicago economist Steven D. Levitt and journalist Stephen J. Dubner has released “Super Freaknonmics: Why Suicide Bombers Should Buy Life Insurance.” The mix of sharp thinking and great storytelling uses the same no holds barred, street-smart approach to exploring societies ills, asking (and answering) questions like” “What’s the best mathematical way to catch a terrorist?” “What do hurricanes, heart attacks and highway deaths have in common?” Or, “Why are doctors so bad at washing their hands?”

Illustrating the statistical science of datamining, the authors showcase research on how economists use information to both unearth and debunk startling trends in society. They examine whether TV has caused a rise in crime? Or whether hospital emergency rooms can do more harm than good for the average patent? Or whether  eating Kangaroo save the planet?  One such case study looks at the efforts to identity terrorists from a databased standpoint by looking at personal financial trends, including life insurance, to tell them apart!

Spoiler Alert: Read Why Suicide Bombers Should Buy Life Insurance >>>

What is a Life Insurance Trust?

A Life Insurance Trust is an irrevocable, non-amendable trust which is both the owner and beneficiary of one or more life insurance policies.

Upon the death of the insured, the Trustee invests the insurance proceeds and administers the trust for one or more beneficiaries. If the trust owns insurance on the life of a married person, the non-insured spouse and children are often beneficiaries of the insurance trust. If the trust owns “second to die” or survivorship insurance which only pays when both spouses are deceased, only the children would be beneficiaries of the insurance trust.

In the United States, proper ownership of life insurance is important if the insurance proceeds are not to be subject to  federal estate taxation. If the policy is owned by the insured, the proceeds will be subject to estate tax.  To avoid estate taxation, some insureds name a child, spouse or other beneficiary as the owner of the policy.

Learn more about the usefulness of Life Insurance Trusts >>>

Insurance Q&A: How much does it cost to raise a child?

When thinking about life insurance coverage, a central question for parents is “How much does it cost to raise a child?”  The U.S. government has answers.

Middle-income U.S. parents of a child born in 2008 can expect to spend $291,570 for food, shelter, and other necessities to raise that child over the next seventeen years, up from the 1960 low-low price tag of $25,230, and $204,060 in 2007, according to a  report from the U.S. Department of Agriculture (USDA).

Read more on getting the right Life Insurance coverage for your family >>>

America’s Deadliest Jobs – Life Insurable?

If you work at a desk job these days, you may be risking a lifestyle that is far too sedentary for your own longevity. The elevator-serviced amenities of the modern office mean we’re getting less exercise. Match that with our breakneck pace workaday schedules,  fast food lunches and a stressful commute to and from the workplace. These factors challenge even  today’s office worker to safeguard their physical fitness as well as their fiscal fitness on the job.

Still,  there are far more dangerous jobs than office work. There high-risk occupations represent a real threat to life and limb, and make it tougher to get life insurance with or without a medical exam.

The U.S. Department of Labor has revealed data that demonstrates how fishermen (and fisherwomen) along with other workers in fishing-related professions were the most likely to die on the job in 2008. Of 39,000 fishing workers in the nation, 50 were killed, a rate of 128.9 per 100,000 full-time workers. Rough seas, unpredictable deadly weather and isolation during emergencies all make the job more unsafe than any other. The perils of netting a job in the fishing industry have even been dramatized on the small and large movie screens, like the popular documentary TV series, Deadliest Catch, and the Hollywood blockbuster, The Perfect Storm.
The Deadliest Professions? Is yours one of them? >>>

What is (ROP) Return on Premium Term Life Insurance and Should I Buy It?

We get some important questions at Efinancialblog.com about saving readers money.  One such query regarded the “Return on Premium Term Life Insurance” or ROP for short. What is it and should I be concerned about it, or even buy it where available?  In this case, an excellent answer has been provided across the blogosphere by Certified Financial Planner Jeff Rose and his blog “GoodFinancialCents.com.”

Jeff writes about how a young business owner client inquired about purchasing a term life insurance policy to provide financial security to his wife and young child in the event of his unexpected passing.  A term life policy makes total sense for his situation, but what he wanted to add is something called a return of premium rider.

For those who are not familiar, the return of premium rider allows the policy holder to get a full refund of all the premiums paid at the end of the contract.  At first, it sounds like a pretty good deal.  The most common complaint that consumers have with life insurance is that if you don’t die, all the money goes directly to the insurance company.  If this is the case, then purchasing the return of premium rider seems totally worth it. Or is it?

Will an ROP rider save you money on Term Life premiums? Read On! >>>

Which Type of Life Insurance is Best?

Understanding the comparative benefits of life insurance isn’t nearly as complex as some insurance agencies would have you believe. Especially since you can count the main differences between one type of insurance and another on one hand.  Let’s see which type gets a thumb’s up!

Type One: Term Life Insurance

Term life insurance is the simplest, most common, and for most people, the most practical type of life insurance.  The way Term Life works is simple:  you purchase coverage for a specific period of time (or “term,” usually 20 or 30 years).  If you die during the specified period of time, your beneficiaries receive the value of your policy.  If not, the contract becomes worthless. The premiums are usually lower than other  types of life insurance because they have no cash value. When the term elapses, so do the payments. You don’t get your term life insurance premiums back.  Term life is likely the best choice for probably 95% of all Americans due to its simplicity and low cost of coverage.

Read more about the 4 Types of Life Insurance >>

Teaching Young People to “Finovate”

At the just concluded Finovate 2009 Conference in New York City, the theme centered on innovation in all things financial, with a special emphasis on grooming the next generation of smart investors, savers and budgeters, today’s young people.

Thankfully, entrepreneurs are sensing the need to educate young people about personal finance so they can recognize true value in financial products and services and separate fact from fiction. A wonderful learning tool is Cents City, created by a Washington D.C. teacher of the year and an avid video gamer. With Cents City, Felix Brandon Lloyd and Todd Waits have created a city in cyberspace where kids can learn about saving, budgeting, and credit. The starter version is free, or you can upgrade to the “Passport Edition” for $4.95.

Slightly older kids (aged 15 and up) who have real money to play with can learn how to budget and invest at Tile Financial. Tile Financial teaches teens and young adults how to manage their money, while it also prioritizes giving back to the community.

For the those of us who are basically big kids at heart, there’s Kapitall. Kapitall offers a new way to invest that makes choosing stocks feel like a really slick (yet educational) video game. As co-founder David Neubert says, “We want to do for investing what Apple Macintosh did for computing.”

How are you teaching young people the lessons of finance?