Private placement life insurance (PPLI) is a special type of life insurance that initially originates from the United States. The PDF attachment explains what basic life insurance is and what types of people might require it. PPLI differs from traditional life insurance in that it is privately offered and has a cash value that is linked through the policy to one or more investments, rather than a normal retail type product. Due to the features of this type of investment, US insurance carriers will typically register variable life insurance offerings with state and federal securities regulators. Many PPLI products for US persons are offered through non-US carriers, Cayman, Puerto Rico,...
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Term to Perm Life Insurance Conversion Tips There are many types of life insurance policies that can help protect you and your family. Term life insurance can be an attractive choice for millennials who are looking for affordable coverage, especially if they’re not ready to commit to permanent, whole life insurance. Even better? While with a term life policy you get coverage for a defined length of time, there are policies that can be converted to permanent life insurance for part or all, of the coverage period down the line. Permanent life insurance also has some key benefits on its own for millennials who may be ready for additional benefits now. Here are a few key...
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Life Insurance What type of insurance and how much coverage you have is an important aspect of a solid financial strategy. As you consider the purchase of a life insurance policy there are three important questions to answer. How much life insurance should be purchased? How long do you want the policy to stay in force? Which type of policy will best suit your needs? In order to arrive at an adequate amount of life insurance, consider: Help for Special Needs family members Estate planning situations — life insurance can be a valuable tool to provide estate liquidity to pay for final expenses and possible estate taxation Business planning — to fund buy/sell agreements between...
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Make sure you know the terms of any waiting periods on life or funeral policies you have recently taken out, or on which you have missed premiums. During a waiting period, you typically only enjoy cover for a death resulting from an accident and not from natural causes. Even if you, or any other insured under the life policy, die from natural causes one day before the end of the waiting period, the policy benefit will not be payable. Claims rejected for deaths during these waiting periods are the cause of most of the complaints to the office of the Ombudsman for Long-term Insurance. This shows that the complainants are often unaware of the restrictions that apply to their cover. The waiting...
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The wife of a notorious Palestinian terrorist who attacked an Israeli airliner has lost out on her bid to collect on her late husband’s life insurance because he failed to mention his unsavoury past when he took out the policy in 1987. In overturning a lower court decision, the Ontario Court of Appeal ruled against Fadia Khalil Mohammad given the important omission on his original application. “It is a principle of long standing that an applicant for insurance has an obligation to reveal to the insurer any information that is material to the application,” the Appeal Court ruled. “The deceased knew that his past activities were relevant.” Mahmoud Mohammad Issa Mohammad, a member of the...
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Common Life Insurance Exclusions Common Life Insurance Exclusions Life insurance pays out a death benefit when you die, but there are a few common exclusions that could prevent your beneficiaries from receiving any money. If you are covered by a life insurance policy but your death falls under one of these exclusions, the insurance company may not have to pay out the benefit. 5 Common Life Insurance Exclusions If you aren't aware of the exclusions in your life insurance policy, your family could be left without a life insurance payout. Here are five common exclusions and what they mean for you: Suicide - Most life insurance policies list suicide as an exclusion. Insurance companies will...
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1) Term life insurance is typically on a short time basis, this is the most affordable type of life insurance, particularly when bought at a younger age. It is often referred to as ‘temporary insurance’, as one is only covered as long as the premiums are paid. It is sold as a 10, 20, or 30 year level, which means that the premiums stay the same for those years. This term often comes with an option to convert to universal or whole life policies which are referred to as ‘permanent insurances’. Premiums for term insurance are downright cheap for people in good health up to about age 50. After that age, premiums start to get progressively more expensive. The same holds true for whole life...
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Facility applies to policies bought after Jan 1, 2014 Worried about a lapsed life insurance policy? Now, LIC has introduced a facility to revive policies that have remained lapsed for over two years. The measure will be available for policies purchased after January 1, 2014. A traditional, non-linked policy which has lapsed can be revived within five years of the first unpaid premium while a unit-linked policy can be revived within three years. “The policies which have lapsed for more than two years and were not allowed to be revived earlier can also be revived now,” LIC said in a statement on Monday, adding that this will help ensure financial security. Persistency ratio The move will...
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A Look at Whole Life Insurance Whole life insurance is designed to remain in force for your whole life, as long as you remain current with your premiums. In exchange for fixed premiums, the insurance company promises to pay a set benefit when the policyholder dies. Whole life insurance policies can build up cash value — effectively a cash reserve that pays a modest rate of return. This growth is tax deferred. Guarantees are based on the claims-paying ability of the issuing company. Most whole life insurance policies allow policyholders borrow a portion of their policy’s cash value. Interest payments on policy loans go directly back into the policy’s cash value. When the...
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Protect What Matters Most! Life insurance may be one of the most important purchases you'll ever make. In the event of a tragedy, life insurance proceeds can help pay the bills, continue a family business, finance future needs like your children's education, protect your spouse's retirement plans, and much more. If you're considering securing you and your family’s financial future, we would be happy to review your current situation and offer a few ideas on how you can protect it! Types of Life Insurance: Term Insurance, the most affordable type of insurance when initially purchased, is designed to meet temporary needs. It provides protection for a specific period of time (the "term")...
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