Why Students Need Life Insurance Too

As the cost of higher education rises, families turn to loans to send their children to college.

Shock statistics from the Consumer Financial Protection Bureau state that as of the end of last year, outstanding student loan debt was more than $1 trillion. Are you the parent of a college-going child?

Have you co-signed a loan to cover the cost of your child’s education and if so have you taken out life insurance in your child’s name to settle that loan in the event of his/her death?

Think about it this way. Like any other parent you want the best for your child and that includes a tertiary education.

You are happy to co-sign a student loan because you know that your child will work to pay back the loan once they have completed their studies. But then one day every parent’s nightmare becomes reality and your child passes away before he or she can pay back the loan, perhaps even before he or she can finish studying. What now? Because you co-signed the loan you are responsible for paying back what is owed.

This is where life cover steps onto centre stage. If you take out a life insurance policy in your child’s name you know that if he or she passes away their life insurance policy will pay the policy beneficiaries a lump sum amount. These funds can be used to pay off outstanding debt, including student loans, store cards and credit cards. The money can also be put towards funeral expenses as well as the costs of settling your child’s estate.

No parent wants to think about the death of his or her child. For many the thought of their child dying before them is too horrific to even contemplate. But as responsible adults we have to plan for the worst and ensure that we are financially protected against the death of our child. Think of it this way. If your child passed away and you assumed responsibility for his/her student debt how would you cope with the repayments? Would you be able to afford them? How, for example, would this unexpected financial burden affect your retirement plans?

Take charge and speak to your child today about taking out life insurance in his or her name. While it might be a difficult conversation it is one that has to take place. And remember, taking out life insurance while you are young and healthy means that you will save on premiums as you grow older.

Spotting False Term Life Insurance

False life insurance fraud is perhaps the most sensitive kind of insurance scam, since larger frauds are often discovered only after the death of the insured. Although buyer frauds are very common, and can even lead to the murder or suicide of the insured in order to cash in their insurance, this article focuses on seller fraud, where those selling or claiming to sell insurance are involved in the fraud.

Fake websites and agents

These exist for the sole intention of obtaining an unsuspecting person’s money, usually through credit cards. Websites may be made to look like those of a genuine insurance company, or may represent a completely bogus organization. These can be recognized in a variety of ways, the easiest of which is to check whether the web address starts with https:// – this is a secure site and payment information can be entered here. Often, links to fake sites will be emailed to you, so check if the email is from a public account or your insurance company’s account. Furthermore, hovering the mouse pointer over a link in the email will tell you if the email was sent from the same site, and not a fake one. It is important to remember that no bank or insurance company will tell you to “renew information” through an email. If you receive such an email from your bank, verify it by calling them, and not on the number given in the email!

Fake agents are a little trickier to detect, since both real and fake ones will approach you personally and advertise policies. Thieves collect premiums and do not pass them on to the insurance company. As a general rule, verify with your company beforehand if they have any policies and whether they have sanctioned agents to collect premiums.

Ghost companies

These “companies” are really just groups of con artists operating out of a single room, who dial their targets and sell them policies, claiming to be certified or licensed. The smartest thing to do is to check with your state or national insurance department whether these companies exist. As always, do not hand over credit card information over the phone, and ask around for any news on insurance scams.

Churning

This involves selling or advertising unwanted policies with an intent to generate commissions rather than yield any genuine benefits to the customer. For example, an annuity plan that generates cash but only after 15 years is unlikely to be popular among 60-year olds. Hiding the disadvantages of this plan, which often include paying large penalties or surrender fees in order to receive payment earlier, is often involved.

Similar to churning is selling plans that over or under-cover the client, only to generate commissions for the broker. The best way to avoid this kind of fraud is to run one’s account independently, without letting brokers have discretionary authority over buying policies.

Insurance companies have the services of surveillance investigators and often an in-house insurance fraud investigation unit to help them tackle buyer fraud, but you will have to get by with common sense and vigilance. There is no such thing as “extra careful” when it comes to your financial matters, especially life insurance!

I Love Doing What I Do for My Kid

When I was a kid, my mom was a leader in the scout club that I joined. I really loved having her be part of it with me. She volunteered so much of her time, and I appreciated it, even as a young girl. Mos of my friends did not really think about what their parents did for them, but I was always aware of it and very appreciative. So, when my daughter was born, I vowed to spend time volunteering to take part in the activities she was part of. Recently, I looked into t shirt printing in Tampa so that I could get some shirts printed up for her scout trip. She was so pleased with me. Continue reading I Love Doing What I Do for My Kid

Why Should You Get a Life Insurance Policy?

Almost everything in life is uncertain and we should always prepare for any unplanned situation that might pop up. Life is uncertain, and we need to be prepared for the unexpected. In fact, the only things certain in life are taxes and death. One or both of these things are bound to happen at some point in a person’s life. While taxes will always be present in every society, death can come like a thief in the night.

Sickness and death are particularly frightening as it is. Death is certain-a part of life and its certain that one day we will go back to our creator. What’s really frightening though is if we are not prepared when this happens. This is the reason why every person should have a life insurance policy.

A life insurance policy can go a long way toward helping dependents who have experienced the death of a loved one. If the breadwinner of the family dies, his dependents can be left with nowhere to turn. If he has a life insurance policy, however, then his dependents will have a safety net until they can fend for themselves.

Policies can do more than serve as a lifeline for dependents after the insured dies, however. They can also help defray death-related expenses, including funeral costs and the cost of probate for the insured’s will.

Some people are not as lucky as others and they will not be able to leave mansions and lands to their dependents. With this Insurance, a parent can be sure to leave an inheritance to his dependents or beneficiaries. This makes the product especially important for those who have young children-the benefits will help cover their expenses until they are able to work and fend for themselves. The amount of coverage a person should get should be based both on the number of dependents he has and the premiums he can afford on his paying capacity.

There are many things in life that the average household can live without, but life insurance should not be one of those things. The importance of this increases as the number of people in a household increases. A single person with few, if any, close relations can get by with relatively on a very little amount or perhaps no insurance at all. The same is not true for those who cannot be said for persons who have family members or other types of responsibilities.

This unique product is a way to protect your family against possible financial trouble or even ruin, depending on the circumstances. It is also a way to relieve some of the anxiety that family members may feel as they wonder how they will get by should the breadwinner in the family suddenly dies. Some forms of life insurance can even be used as a means of saving money over the long term.

There are various types of policies, and Often one type will be a far better option for a particular family or person than another might be for that same family or person. Because there are so many types of policies available, consumers need to reach out and connect with a trusted agent.

A reputable agent will normally be a state-licensed agent who carries different types of policies from different companies. There are life insurance agents, as well, who normally work for a particular insurance company and sell the products of that company. An Independent Agent can offer many different types of policies at different price points, because he or she carries more options from more sources.

Aside from choosing the correct type of policy, Consumers must also decide on the level of coverage they need. A consumer might say: “I need $10,000 worth of life insurance” but when asked to justify that amount they are at a loss to do so. Is that amount too much; is it too little? Often they simply do not know. The amount of coverage needed will vary from one family to another. It can also vary depending on where in life a person is when he or she takes out the policy. A newly married couple, young in age, will normally need less life insurance coverage than a middle-aged couple with a home mortgage and student loans that need to be paid off. Then again, a high earning young couple may need more life insurance than a middle-aged couple if the high-earning couple needs to replace one of the incomes lost through death. As you can see, coverage is dependent on many issues and aspects, some of which are hard to explore without the aid of a qualified life insurance agent.