Find everything about Term Insurance
policies, illness, and their impact.
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Term
Life Insurance
Find everything about Term Insurance policies, illness, and their impact. |
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How can I contact MEG Financial? Visit MEG Financial's Contact
us Page. How can I receive a quote and
is it free? What is the best advice you could give me to make sure I choose the best policy? When buying life insurance, you must first make sure that the policy you choose matches your overall goals and objectives and solves your need based on your specific circumstances. Each person’s goals are a bit different so a careful review of what is important to you is necessary in selecting the appropriate policy. When considering life insurance, a good question to ask is: “Why am I buying the insurance?”. Your answer to that question will help you identify if your need is temporary or permanent. If your need for the insurance is temporary, some form of term insurance will likely be the best option. If your need is permanent, a variation of universal life or whole life policy will probably be a better choice. Consulting with an independent insurance professional to determine the exact policy need is likely the best strategy to assure you make the best policy choice. To speak with one of our independent agents, please call toll free at 1(877) 583-3955 or fill out an online form. What is Equity Indexed Universal Life Insurance? Equity indexed universal life is flexible premium universal life insurance policy that allows the policyholder the option to allocate cash values to an index account. The cash values in the index account participate indirectly in the upward movement of a stock index without accepting the normal risk associated with investing in the stock market. The actual “interest” credited to a policy’s cash value is determined by the annual changes of an equities index (excluding dividends). What is Universal Life Insurance? Universal life insurance is a combination
of annual renewable term insurance and traditional whole life
insurance that offers considerable policy flexibility and affordable
insurance protection. Actually, universal life can be defined
as term insurance with a side fund that grows cash value. Insurance
costs, like annual renewable term insurance, can increase annually
based on the age of the covered individual. As premiums are
paid, insurance costs and fees are reduced form the policy’s
cash values. Any remaining cash values grow at a current fixed
interest rate. Policy premiums are adjustable as long as there
is sufficient cash value to cover policy expenses. Insurance
amounts can also be adjusted to meet changing needs. This option
offers greater flexibility than whole or term life. After your
initial payment, you have the
option of reducing or increasing the amount of your death benefit.
If you choose to increase your benefit, you may have to provide
medical proof that your health has not deteriorated. Term life insurance provides low cost temporary coverage for risk of premature death. It pays a benefit only if the insured dies while the policy is in force and builds no cash value. Term insurance is the most cost effective form of life insurance over the short run but over time will become cost prohibitive. A. Whole life insurance provides guaranteed coverage for the lifetime of the insured at a fixed premium and also builds cash value at a guaranteed rate. The policy premiums are determined at the policy issue date and remain constant for the life of the policy. Cash values are credited with a guaranteed interest rate and grow over time tax deferred. In the simplest terms, with whole life, you are self-funding your insurance program. What is Variable Universal Life Insurance? Variable universal life insurance is essentially universal life insurance that includes an option to “invest” cash values in mutual fund type accounts that are made up of stocks and bonds . Like universal life, as premiums are made, costs of insurance, policy fees and expenses are deducted and the balance is directed toward investments called sub-accounts. These sub-accounts are actual investment accounts that fluctuate based on the performance of the underlying stocks and bonds. What type of
life insurance should I buy? How
much Insurance do I need? In what health class will I qualify? Determining which health class you will realistically qualify for is the most important part in obtaining the best possible life insurance rate. Underwriting is the process where the insurance company reviews your health and medical history, avocations, MVR, hobbies and lifestyle issues to determine the risk of insuring you at a given rate. Each company has its own unique underwriting criteria they use to classify a given risk. It is a regular occurrence for competing companies to offer widely varying rates to the same individual. For more specific underwriting information see, Determining your health class. If there are any questions as to which health class you can obtain, please call our offices toll free at 1 (877) 583-3955. What
if I have a medical condition? Will it affect my rate? What
are my options? How do I apply for life insurance? Anyone can apply directly on-line, e-mail us to apply or you may call our office toll free at 1 (877) 583-3955. If applying on-line, after getting your quote, you can click the Apply Now button and add any comments and then submit your request. A licensed insurance professional will call you within 24 hours to review options and go over the application process. If you call us toll free, we will take the necessary time to answer any questions or concerns and then take the application over the telephone within10-15 minutes. Our goal is to be as efficient as possible in respect of your time but at the same time get the best results! What
are the medical exam requirements to obtain a policy? How long does the process of applying for insurance take? Generally speaking, the application process should be expected to take 4-8 weeks to complete. After the application and insurance exam are completed, the underwriting process begins where the insurance company will review your mini-physical results and medical history. During the underwriting process, the insurance company may request a copy of your actual medical records. Once your medical records are obtained, the insurance company will review the entire file and an approval will usually follow within 5-7 business days How can I make sure that I select a good insurance company? Financial ratings for most insurance companies are available with one or more of the independent ratings services. These services include AM Best, Standard & Poor’s, Moody’s, Fitch and Weiss Research. Each of the independent rating services has its own criteria for ranking an insurance company. You may also visit the websites of each of these services or you can contact MEG and we can provide the financial ratings of any insurance company. When you obtain a quote for either term life insurance or guaranteed universal life insurance, you will see the AM Best rating for each company listed. We recommend using companies that have at least an “A” rating with AM Best but prefer “A+”.
During the first 2 years of every life insurance
policy there is a contractual clause known as the "contestability
period". The contestability period protects the insurance
company from fraudulent and misleading statements made by applicants
for insurance. During this initial 2 year period, all insurance
companies will investigate death claims for fraud and misleading
statements made by deceased applicants. If the insurance company
can prove in court that an applicant for insurance lied or
committed fraud during the application process, a claim can
be denied. The contestability period also includes a suicide
provision. The suicide provision states that death claims made
on behalf of individuals that commit suicide within the first
2 policy years will be denied. If suicide occurs after the
first 2 years, the claim will be paid. Generally speaking,
fraud, misrepresentation and suicide within the first 2 years
are the only policy exclusions. Policy language varies among
companies so read your policy carefully. When am I required to send payments and how do I pay? You can make your first payment when
you submit your application, subject to certain conditions,
or you can wait until the insurance company approves your
policy before submitting money. If you send payment with
your application, and all policy conditions are met, you
are "conditionally covered" after your exam has
been completed. "Conditionally Covered" means that
you are covered during the underwriting process as long as
the insurance company eventually approves you at the same
rate class that you applied. If you choose not to send money
until the policy is approved, no coverage will be in effect
until the insurance company receives payment.
No! Life insurance policies are unilateral contracts meaning they cannot be cancelled by anyone other than the insured individual or the policy owner. As long as you pay the premium on time, the coverage will remain in effect. However coverage can be cancelled at any time by simply discontinuing premium payments. (1) The S & P 500 (Standard and Poor’s Composite Price Index) is composed of 500 commons stocks representing major U.S. industry sectors. “ Standard and Poor’s®,” “S & P®,” “S & P 500®,” “Standard & Poor’s 500,” and “500” are trademarks of The McGraw-Hill Companies, Inc. (2) “Dow Jones” and “DOW JONES INDUSTRIAL AVERAGE (DJIA) COMPOSITE STOCK INDEX” are service marks of Dow Jones & Company, Inc. This product is not sponsored, endorsed, sold or promoted by Standard & Poor’s and Standard & Poor’s makes no representation regarding the advisability of purchasing such a policy. (3) The NASDAQ-100®, NASDAQ-100 INDEX® and NASDAQ® are registered trademarks of the NASDAQ Stock Market Inc. (which with it affiliates are the “Corporations”). This product has not been passed on by the Corporations as to their legality or suitability. This product is not issued, endorsed, sold or promoted by the Corporations. THE COPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THIS PRODUCT. THE INDEX DOES NOT INCLUDE DIVIDENDS PAID BY THE UNDERLYING COMPANIES. |
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