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There are two different types of life insurance, term life insurance and permanent life insurance. Term life insurance is the easier of the two plans. This plan supplies you with death protection for a pre-determined amount of time, anywhere from one to 30 years. If you happen to die while paying on this type of policy your beneficiary will be paid the amount of money you specified when purchasing the policy. If at the end of the term you are still living your death protection coverage will cease unless of course you renew the policy. You can purchase this policy on a minimum budget and it is particularly perfect for providing coverage while your children are still in the home or while paying off a mortgage or other large loans.

This plan is merely a “quick fix.” It is similar to leasing a vehicle. You pay a lower cost for the privilege of driving the car knowing you will return it after a short period of time. However, just like when leasing a vehicle there is an option to buy. If you are purchasing term life insurance because you need protection now but can’t afford the higher payments of permanent protection in most cases you can switch your plan over to permanent protection when your situation changes (be sure to verify this before purchasing any policy). You can also look at term life insurance as an efficient means of protecting your family while using your remaining finances for savings or other investments.

Although this type of coverage is less expensive than permanent life insurance your premiums will increase at renewal periods as you grow older. Normally at renewal periods you will also be required to obtain a physical in order to qualify for the lowest rates.

There are four different types of term life insurance policies one of which is renewable term insurance. This policy will delete your need to submit to a physical when renewing your policy. The company agrees to renew your policy even if your health has declined however, be prepared to pay higher premiums with each renewal when purchasing this plan.

Convertible term insurance will allow you to switch from term to permanent life insurance without succumbing to a health exam first. Of course this convenience will more often than not come with the expense of higher premiums. On the bright side once you convert to permanent your premiums will not increase as with the renewal of the term plan.

Level term insurance presents a permanent premium for a pre-determined number of years, usually 10 or 20, and the death benefit remains the same. With this policy you will lock in a particular price for the duration of the policy. The down side to this plan is that the rate will rise significantly if you decide to renew with subsequent level policies.

The remaining plan is the decreasing term insurance policy. Throughout the term of this policy the death benefit will decrease. You may start out with $250,000 worth of coverage however for the first 10 years each year your benefit will be reduced by $10,000. The premiums on this policy will also vary over the term of the policy, it is for these reasons that this policy is not highly recommended nor sold very often.

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There’s More To Advising A Grieving Client Than Offering Sound Financial Advice

A Financial Planner’s Calling

As I take a leisurely walk through the older section of the local cemetery, I am fascinated by the barely legible dates on the weathered headstones. Proceeding up the asphalt pathway, I come to the new section of the cemetery. As I compare the old section with the new, one fact becomes crystal clear: Americans are living longer.

In the next three decades, most baby boomers will reach retirement, causing the over - 65 population to skyrocket. The aging U.S. population will have a huge impact on how financial planners conduct business. The structure and methods used to create a successful long-term relationship will need to change dramatically to accommodate the evolving financial and emotional needs of older clients.

As an advisor working in the senior market, many referrals are individuals who are grieving due to the recent loss of a loved one. The person dealing with grief and recent bereavement require special care. If handled properly, I have found that I can play an instrumental role in the healing process and the client relationship will be strengthened.

Role of the Trusted Advisor

The agonizing process of dealing with financial realities only adds to a grieving client’s sorrow. Often, a surviving spouse must shoulder ongoing family and business commitments. In this situation, the financial advisor must perform many tasks and help the client make important financial decisions quickly. Life insurance policies, investment accounts, trusts, wills, deeds, debts, employee benefits, health care coverage, changes in beneficiaries, Social Security benefits, and budgetary issues are just a few of the major issues that must be addressed.

The confidence and guidance of a trusted financial advisor is particularly crucial at this time, because it is too easy for a grieving client to make costly financial mistakes. This guidance extends beyond financial advice, however. Advisors looking to develop a long-term relationship with a client should be prepared to take on additional responsibilities, including the mental and emotional health of the client.

The Grieving Process

It is a fact that the financial planning community has yet to establish specialized training in bereavement. As a result, most financial advisors, attorneys, life insurance representatives, bank personnel and tax accountants are ill equipped to properly assist a grieving client. There are, however, several steps advisors and financial professionals can take to educate themselves about the grieving process. First, it is helpful to understand the five stages of grief, as described by author Elizabeth Kubler-Ross. If a financial advisor is oblivious to these stages, he cannot fully understand what the client is experiencing.

Five Stages of the Grieving Process

Denial - The individual is overwhelmed and refuses to accept the loss.

Anger - The individual resists the loss and expresses his anger by acting out toward family, friends

and health care providers.

Bargaining - The individual attempts to postpone the reality of the loss by pleading for an extension of life or for the chance to “make everything right”.

Depression - This stage is characterized by an emotional void or disinterest in outside matters. The

individual finally realizes the full impact of the loss and struggles with the idea of separation.

Acceptance - The individual comes to terms with the loss and gains a greater perspective on the

situation, integrating the loss with his re-engagement in life.

Although the grieving process, which encompasses both psychological and physical signs is necessary and healthy, it can seriously impair your senior client if left unresolved over a long period of time. Recognizing the symptoms of an unhealthy grieving process and taking the appropriate steps may literally save the client and their family.

Advisors should note that the grieving process is individualized and has no time limit. What’s more, individuals do not experience the grieving process in any particular order. Often, when confronting grief, the person will re-address certain stages repeatedly.

Advisor Attributes

Grieving family members struggle with their loss. In many cases they believe their whole life has collapsed. Their anguish, despair, pain, and sorrow may seize much of their purpose and determination in life. Given the emotional turmoil involved, it is my experience that these clients require a special care. A financial advisors attitude, attention, patience, kindness and empathy will convey a level of concern and understanding which are required in order to properly deal with the bereaved clients’ stages.

A Modest Suggestion

As I leave the cemetery, I have a new appreciation for the grieving client. I realize that for the benefit of our society the financial planning industry must take action in its approach to, and understanding of, grieving clients and their families.

The financial planning community should institute a national program that identifies expertise in grief and bereavement.

Identifying professionals in the financial community with the desire and knowledge to work in this area could greatly benefit those in need. This designation would assure those needing guidance would receive advice from a financial advisor certified in the subject of grief and bereavement.

As I near the exit of the cemetery, a memorial that stands above the others piques my interest. Four generations are buried in this mausoleum, dating from 1809 to 1992. At the entrance a large granite plaque displays an insightful quote by Thomas Mann: “A man’s dying is more the survivors’ affair than his own.”

Truer words have never been spoken.

” GOOD GRIEF”

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Life insurance can be an effective tool to make certain and protect your family’s financial future. It has been acknowledged universally as a method by which the breadwinner can substitute risk and uncertainty with timely aid for the family in case of their unfortunate death.

Since a life insurance policy will replace your lost income after your death, it is important to choose the right kind of policy. Hence, it is essential to find a company that will cover your insurance with the right amount, and at a reasonable price.

Need for a life insurance policy:

There are several reasons for an individual, specifically a breadwinner, to make out a life insurance policy. To assuage your concern for your family in case of your death, most life insurance policies offer various death benefits that take care of your family after your death:

1. For example, a member of your family may have some special needs. You can buy a life insurance policy that will act as an emergency fund in the event of your untimely death.
2. If you want to make sure that your child gets quality education even after your death, a life insurance can also work as a fund for your child’s education.
3. An insurance policy will ensure the maintenance of your family’s standard of living.
4. Your family can also use it to clear personal and business debts, after your death.

Duration of insurance coverage:

Before buying a policy it is advisable to ensure the duration for which you want life insurance coverage. You can take online help to decide the coverage duration.

Need for a checklist

After you decide on your specific need, and the duration of your life insurance policy, you can begin looking for a suitable policy. It is prudent to prepare a checklist before buying, as this will ensure that you end up purchasing the right policy.

The checklist must include various factors on which you can assess insurance companies, which includes various criteria set by insurance companies too. Here are a few pointers:

1. Before buying a life insurance policy, it is advisable to ensure that you have all medical information regarding your health, because most companies expect that, depending on your age and the duration of insurance coverage.

2. It’s a good idea to compare various life insurance companies on the basis of quotes that they have to offer. You can take the help of the Internet to compare the quotes based on your choice of insurance product and your age.
3. You can also take help from a broker through the telephone or the Internet and clear all your queries.
4. Once you decide on a particular insurance company, it is important to ascertain the company’s financial strength and stability.
5. It is also advisable to gather information about the options for renewal that various insurance companies offer, because some companies charge high premiums if you renew your policy.
6. Some insurance companies charge a penalty if you cancel your policy, so make sure that the company you choose does not demand a penalty on cancellation of policy.
7. You may also want to make some changes in your policy in due time, as your insurance needs can change with time. So, when you purchase your insurance policy find out if there is an age limitation for any kind of conversion of your policy, and whether the option of moving into a better policy is there.

Joseph Kenny writes for the UK Loan Store and offer more information on payment protection insurance and other loan topics available on site.
Visit Today: www.ukpersonalloanstore.co.uk

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