Level Term Life Insurance Companies
Level term life insurance companies offer the most popular type of insurance available today because the premium is guaranteed for the entire length of the policy. The premiums will never increase during the period the policy in effect. Therefore, it is far less expensive than a cash-value policy. Many agencies advise clients to choose a policy death benefit that is twenty times the beneficiary's annual income. The reason for this amount (which may seem high) is so that the beneficiary can invest the life insurance funds into a conservative investment account (about 5% per year) and never have to touch the principle because he can live off the interest. The premiums for a higher death benefit are not as much as one would think, especially if the insured is 30 or under and healthy. But the high death benefit can secure a family's income if a premature death were to happen during the policy period. Level term life insurance companies try to sell polices to healthy younger clients. In doing this, they offer great rates to those with no pre-existing medical conditions. Employer-sponsored programs may offer these policies, but additional coverage may be necessary and can be obtained by contacting the company's agency representative to boost up the policy and death benefit amount.
This coverage can be obtained for periods of five, fifteen, twenty, or thirty years. The "term" is chosen for the amount of years the policyholder expects that their dependants will rely on them. A rule of thumb is to take the youngest child and write a level term life insurance policy for the period until that child is out of college (about 23 years old). At this point, the couple's issues for dependency vastly decrease since they do not have any children in the home. If the policyholder dies during the term, the beneficiaries will get the full death benefit. If the policyholder dies after the term, the beneficiaries get nothing. By purchasing the most simple level term life insurance coverage offered, the premiums will be surprisingly low.
The purpose of level term life insurance is to protect someone else financially if the policy holder should pass away unexpectedly. Christians looking into all the options available to them through level term life insurance companies should seriously consider their motivation for the purchase of the policy. The Bible does not mention the issue of insurance, but it does require that Christians make wise, responsible decisions. "Through wisdom is a house builded; and by understanding it is established" (Proverbs 24:3). God also expects us to wisely provide for our children, and that includes protecting them against circumstances that could devastate their lives, such as the death of a parent. No one can protect them emotionally, but we can see to their needs financially.
Long term care health insurance is a dependable resource in case a consumer is ever unable to meet their basic living needs because of accident, illness, or frailty. Long term care insurance can help a person afford the help that is needed to dress, bathe, eat, shop, and generally survive. Increasingly, society is becoming more fragmented and less able to afford caring for anyone who suffers from a chronic or extended illness. This makes extended medical coverage a priority when, through modern medicine, people can live longer than before but not necessarily live well. It is estimated that one fourth of all American households are involved in extended caregiving; that's 22.4 million families, many of whom are caring for someone at home while juggling full-time jobs. If the combined lifetime risk of needing home and community help (or nursing home assistance) is about 6 out of every 10 people, then there is an urgent consideration for extensive personal medical coverage throughout the course of a lifetime no matter what the ensuing circumstances.
Extended medical coverage helps defray the high cost of home or community care (between $12,000 - $50,000 a year) and nursing assistance which ranges from $30,000 to $80,000 per year. Without extended medical coverage, 72% of elderly Americans are impoverished in only 1 year. Long term care insurance is as much for the disabled as for a healthy spouse whose standard of living is so compromised that it forever changes the course of their life. It seems clear that extended coverage is the only way to preserve a person's independence and dignity. Many of those who have no coverage and their assets are completely gone, may qualify for welfare's Medicaid program which can be limited in both availability and quality, but at least there will be something available for some of those who have no safety net. Most consumers wouldn't consider 65 years old elderly, but even so, 43% of everyone needing long term care health insurance for medical problems that last the rest of their lives are younger than retirement age. "I waited patiently for the Lord; and he inclined unto me, and heard my cry." (Psalm 40:1)
It is important to understanding that the elderly are not the only ones who may need extensive medical help. Once a consumer has determined what is needed in regards to long term care health insurance, choosing a reliable, well-funded insurer is vital. Larger companies can afford to specialize in policies that feature extended coverage. They may offer stand-alone, comprehensive policies or riders to the cash value of a policy. An insurance rider for an "accelerated death benefit" helps if someone's condition is terminal, which is usually not the case and shouldn't substitute for true long term care insurance. Sometimes consumers can ask for coverage as an either/or provision of a policy's death benefits, but they should always compare that rate with a stand alone policy. Finally, long term care insurance can be combined with a disability income policy so that both can be used when there is a need. Long term health care coverage will provide the security a person needs if ever their health fails, forcing them to depend on others for their daily needs.
Long Term Disability Insurance CoverageLong term disability insurance can be purchased individually through an agency or through an employer sponsored disability program. Those individuals who are unemployed, temporarily out of work, or in need of supplemental coverage will be responsible for seeking their own policy. Coverage through work will allow an employee to retain a portion of their income while they receive medical rehabilitation for whatever ailment disables them. Long term disability insurance coverage is available to those that put a portion of their paycheck into a premium. When the employee is approved for reimbursement of funds, they must forgo an elimination period.
The elimination period is the amount of time that must be given between the last paycheck that the employee received and the time when official funds are released. Long term disability insurance is typically paid by both the employee and employer. The longer the employer works for a particular organization, the more money is deposited into the employee's long term disability insurance coverage account. Employees may be offered the option of contributing to their coverage, or they may be required to do so.
The option to purchase this type of coverage is dependent upon the employer's plan. Although long term disability insurance is designed to provide income for the disabled employee for an extended amount of time, there are limits. The maximum limits are determined by the particular plan chosen, and the amount of the premium that is paid for the long term disability insurance coverage. The higher the premium paid, the more coverage available for a longer period of time. The lowest premiums will only cover a small percentage portion of the disabled employee's salary and for no longer than 6 months. Choosing which type of plan or policy to select is important for the individual.
"Through wisdom is a house builded; and by understanding it is established." (Proverbs 24:3). Christians that are paying into a long term disability insurance plan should be sure to research the insurance agency responsibly for a reputable service before actually purchasing a policy. If the employer only offers one choice, then the Christian should take advantage of that benefit. A Christian is responsible for financial stewardship with the money that they are given by God. Finding the most reputable company to do business with and a fair value for product or service is part of the financial stewardship responsibility. It is crucial to use wisdom and discretion when dealing with financial matters.
Long term disability insurance rates are an inexpensive way to prepare for an extended period of inability to work and loss of income. Typically people think of coverage that is necessary for the home, car or medical needs. However, it is easy to forget that regular employment income is how those needs are met and without the ability to work these assumed protections quickly become impossible to keep. This inability also affects how the home is run and provisions for the family are depleted. A manageable long term disability insurance rate is therefore critical because it protects income with the support and ability needed to cover financial needs while physical disabilities work to be corrected or overcome with the right care and physician.
Being physically afflicted is not a new occurrence nor is it a surprise to find times of distress come upon each and every person. Paul wrote of spiritual afflictions but they can relate to the reality of physical long term disabilities that plague many. "No man should be moved by these afflictions: for yourselves know that we are appointed thereunto...we told you before that we should suffer." (1 Thessalonians 3:3-4) Rates are calculated on a percentage per $100 of income. There can be a variance of long term disability insurance rates within a given company plan, however due to choices made on the individual, plans other than that determined by the employees' salaries. That variance in rates is by the election of the individual's elimination period - the time which they choose to delay receiving the benefits once they become disabled and eligible. Normal elimination periods are between 90 days and 180 days. This variance in elimination periods before the benefits kick in reflect a decrease in the long term disability insurance rate as the elimination period increases. A standardized monthly plan is offered by some companies and include coverage of the member's spouse or partner for free.
From the start, it is important to understand the conditions that disqualify an applicant. The applicant cannot qualify for long term disability insurance rates if they are already pregnant or soon to be pregnant, unemployed, earning less than $18,000/year, required to carry a weapon for their job, or looking for individual short term coverage. While these categories often cause confusion, the applicant should clearly understand the purpose of a long term disability insurance rate. This is not for someone who is disabled already or is already facing a medical problem. If the applicant is already in one of these categories it is recommended to research the use of whole life insurance as an alternative.