Archive for the ‘Life Insurance by Lifestyle’ Category
Wednesday, December 7th, 2011
Shopping for life insurance can be a daunting task. “Which company should I choose?” “How much coverage do I need?” “What term length is right for me?” “Will I even qualify for coverage?” These are a few lifestyle factors to consider when trying to figure out what your options are.
Smoking
 photo credit: Fried Dough
Most people know that certain lifestyle choices, such as smoking, can have a negative effect on your eligibility for life insurance. Tobacco use is one of the main dividing factors that life insurance companies use to determine whether or not you will qualify for premium rates. Some insurance companies will even deny coverage to a potential customer if they use tobacco products. While the best solution here is to quit using tobacco altogether, there are a few alternatives if you’re not ready to give it up completely. Did you know that some insurance companies will charge you less if you only smoke the occasional cigar, rather than actual cigarettes? Most insurance companies do not differentiate between smoking and using smokeless tobacco, but for those who dip or chew, there are a few companies out there that will be able to give you a better rate since chewing tobacco is known to cause less cancers than smoking.
Smoking may be one of the most obvious elements that can affect your premiums, but it is definitely not the only lifestyle choice that insurance companies consider when providing quotes. Did you know that your occupation, hobbies, weight, and medical history can all be used to determine your rate?
High Risk Occupations and Hobbies
photo credit: dhendrix73
If your job is considered high risk, you may end up paying more for both life and health insurance. You may qualify for premium rates if you work in an office, but a firefighter or welder may have to shop around to get a good quote or even to find a company willing to offer them coverage. If you have a dangerous hobby, such as horseback riding or scuba diving, you will probably end up paying more for coverage than if you have a hobby that is considered safe by the insurance company, such as painting.
Obesity and Medical History
photo credit: Mason Masteka
Obesity is a risk factor for many health issues, such as diabetes, high cholesterol, heart disease, stroke, and other ailments. Because of these risk factors, an otherwise healthy person who is obese will not receive premium insurance quotes. In order to qualify for a premium quote, you should be within the normal range on the Body Mass Index (BMI). If you are in the overweight or obese range, you may still qualify for a reasonable quote if you agree to take certain tests to prove that your overall fitness level is at acceptable levels. Your previous medical history may also have an effect on your quote. If you have a history of heart disease, or have taken antidepressants in the past year or 2, you may not get premium prices on your quote.
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Tuesday, July 26th, 2011
According to ING, life insurance premiums are lower than they were ten years ago, yet a recent report by LIMRA (a life insurance industry group) revealed that only 44% of American households have individual life insurance coverage, including 11 million considered to be most in need of life cover – those with dependent children. This represents a significant drop in life insurance take-up in the USA – in fact the lowest in 50 years, leaving many families at risk of financial ruin should they experience the bereavement or critical illness of a breadwinner.
Why the Decline in Take up of Life Insurance?
Procrastination is the thief of time when it comes to Life Insurance. Life insurance is not compulsory – unlike mortgage and car insurance. This is what causes “people to put off buying it”, according to Butch Britton, chief executive of ING’s US Life Insurance division. But putting off buying life insurance until a later date can have serious repercussions – as Amy Danise, Editor of Insure.com, puts it “young, healthy people can usually get the least expensive premiums”. Overlooking life insurance in the shorter term can mean waiting until health deteriorates with the result that “life insurance prices are out of reach for them”.
Life Insurance not viewed as a ‘necessity’
With many families struggling to pay back debts, due to the recent recession life insurance is being placed on the ‘back-burner’. And this is even more surprising given the fact that 40% of families with dependents said they would find themselves in a precarious financial position should one or the main wage earners die.
Sharp drop in the number of Life Insurance Agents
The number of ‘affiliated agents’ – those who sell on behalf of one insurance company – has declined from 246,000 20 years ago, to 184,873 in 2010, according to figures revealed by LIMRA. This is because premiums are cheaper than they used to be, which makes it more difficult for agents to make a profit from selling the policies. Less door-to-door salespeople has contributed to fewer sales of life policies.
The Life Insurance Industry is Fighting Back
MetLife has been targeting employers as a way to win back business. Todd Katz, Vice President of insurance products says that “employees can typically buy the policies through payroll deduction, sometimes at a lower cost than an individual policy.” Life Insurers have also increasingly turned to the internet – and although there has been an increase in online sales – the majority of life insurance is still bought “face to face from a live person at the kitchen table” according to Byron Udell, Chief Executive at AccuQuote, an online insurance comparison website.
Source: USA Today, December 2nd 2010
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Thursday, June 30th, 2011
There are over 11,500 stores in New York City which are licensed to sell tobacco products and in a recent drive to boost awareness over the health risks associated with smoking the Mayor of New York, Michael Bloomberg implemented a health awareness campaign targeting these outlets.
The owners of the stores have been asked to put up signs outside the shops which show images of how smoking tobacco can harm the body. They include pictures of a lung damaged by cancer, a decaying tooth and a brain, which has suffered a stroke. The graphic posters are accompanied by information for the residents of New York on how to get help in quitting smoking, and a call to join New York City’s quit program.
Tobacco Companies Maintain their Market – while Smokers Continue to Die from their Habit
Surely, you may think, any attempt to reduce the amount of deaths by smoking has to be a good thing? Not only will there be a reduction in the numbers of deaths due to smoking but non smokers will have added financial benefits such as more money in their pockets and access to far cheaper life insurance.
The three big tobacco companies, Philip Morris, RJ Reynolds Tobacco and Lorillard, however have joined together in an attempt to block the campaign and have the signs taken down. In an attempt to keep their customers they are taking legal action against what they perceive to be a so far successful campaign to cut the number of smokers in New York City.
Tobacco Manufacturers Talk of ‘Rights’ in Attempt to Win Against Health Campaign
Unfortunately if past history is anything to go by, they may well succeed in their attempt. Back in 2003 Reynolds and Lorillard were successful in suing the California Department of Health Services and managed to wipe out their effective anti-smoking advertisements. The tobacco giants usually call on the services of the First Amendment in these types of cases arguing that store owners should not be forced to put up any material they do not wish to.
The Residents of New York City however surely have rights which outweigh the spurious rights cited by the big tobacco companies – for instance – the right to be educated as much as possible against the dangers of smoking and the right to live a long healthy life – with the added benefit of good medical and life insurance.
 photo credit: manu_zoli
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Thursday, June 23rd, 2011
A recent survey by LIMRA which questioned 70 life insurance industry leaders on how they view sales of insurance products over the coming year showed that the majority felt overall life insurance sales will remain unchanged. 68% of executives believed that sales of group life insurance will not rise during 2011.
According to Robert Baranoff, the Senior Vice President of LIMRA, “Generally speaking, significant growth in life insurance sales is driven by new products in the market” and that “While overall sales may not substantially grow in 2011, LIMRA predicts that certain products will stand out in this low-interest environment.”
Indexed Life Insurance Products have the best Potential for Growth
Around a third of the life insurers said they believed that the insurance products with the best potential for growth were those which are indexed, with low interest rates making them a better investment for producers. The next best life insurance products were predicted to be whole life policies – 27% of execs felt these would show some growth in 2011.
Life Insurers target the ‘Middle Market’
One area which life insurance companies are currently attempting to target is the so-called middle market. The amount of American households without any life insurance is at an all time high – in fact, the highest for 50 years, which is why insurers are pulling out the stops to increase sales of life policies in this market.
Use of Agents on the Decline
The use of agents was not seen by the majority of life insurers as a cost-effective way of targeting consumers. The number of sales agents is predicted to fall even further in 2011 – the number of agents recruited in 2009 was down from the previous two years. LIMRA has carried out research which shows that out of the 220 companies who were recruiting 20 years ago, only 73 are still actively recruiting, with just five companies being behind 65% of the new hiring.
Bank Assurance Predicted to Grow
Bank assurance – the distribution of life insurance products by banks is, however predicted to grow during the coming year, with seven out of ten of the insurance executives questioned of this opinion.
Bank assurance grew by 30% in the last quarter of 2010, and the research indicates that interest rates will be a big feature in greater growth this year.
LIMRA is a research organization which also supplies professional consultancy services to insurance and financial services companies worldwide.
Source: www.limra.com
Insurancenews.net January 2011
photo credit: quinn.a nyar
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Thursday, May 12th, 2011
Why Should You Consider Selling Your Life Insurance Policy?
Over the past few years, many investors have seen the value of their portfolios and their homes drop dramatically. This can leave people frustrated and in search of additional sources of cash to either make up for these losses, or to help pay mounting bills.
So You’re In Need of Cash
One such way for some to obtain a lump sum of cash is by selling your life insurance policy. Depending upon your age and health status, you could sell an unwanted to unneeded policy in a transaction called a life settlement. In a life settlement, a third party purchases your life insurance policy, takes over the remaining premiums, and collects the death benefits when you pass away.
When selling your policy through a life settlement transaction, you will typically receive more than the amount of cash value in the policy, but less than the amount of the death benefit. Prior to life settlements, if you no longer wanted or needed coverage, or if you could not afford the premium, the only options available were to either cash in the policy and receive the amount of cash surrender value, or simply let the policy lapse.
What Are The Drawbacks?
Although life settlements have many benefits, there are some drawbacks that must be considered before moving forward on such transactions. First, life settlements still operate in a primarily unregulated marketplace. In fact, due to the lack of regulation and oversight, there are even concerns from the Securities and Exchange Commission regarding inconsistencies and other issues as they relate to the policyholders financial safety. In fact, there have even been recommendations that life settlements be defined as securities so that the investors in these transactions can have protection under federal securities laws.
Another concern with life settlements is that whoever purchases your policy – most likely a complete stranger – essentially has a financial interest in your death, since they will become the recipient of the policy death benefits. In addition, when selling a life insurance policy, you will be disinheriting your beneficiaries.
So, if you are considering such a move, be sure that you have other plans in place for the financial protection of your loved ones who should need it when the time comes.
 photo credit: soukup
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Wednesday, July 28th, 2010
 A look from at the findings of the Bureau of Labor Statistics listing the most dangerous professions in the United States. The Bureau of Labor Statistics recently updated its Census of Fatal Occupational Injuries which tells us which are the most hazardous professions to work in within the US. The CFOI builds up a picture about the circumstances of the death of an employee using death certificates, workers’ compensation reports and Federal and State administrative reports regarding the incident.
Which Workers Pose Risk to Life Insurance Companies?
The figures help inform employees about the various risk areas involved in their work, aid the promotion of better work practices and are used to improve workplace safety standards; in fact the National Safety Council uses the data as the basis for its information and research. There is however, another use for these statistics –as a tool for life insurance companies to help them apportion risk to potential policy holders – life insurance premiums will be higher for those working in the most hazardous industries since they will be a higher risk to insure.
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Tags: bureau of labor statistics, census, dangerous jobs, life insurance, occupations
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