10 July 2014 0 Comments

Why buy life insurance if you don’t need it?

Not everyone needs life insurance.  If you are single with no one dependent on your income and your liquid assets are more than sufficient to meet final expenses, then you really don’t have a current need for life insurance.  However, the operative word in that statement is current.  Is it possible that some day there [...]

29 May 2014 0 Comments

Is a MEC bad? Can it be avoided?

The term “MEC” is an acronym for Modified Endowment Contract.  A MEC is created when the premiums paid in the first 7 years of a life insurance policy exceed certain limits.  Unless you’re an actuary there is no need to know the formulae that defines those limits.  If you are contemplating the purchase of a [...]

20 May 2014 0 Comments

The Language of Life Insurance

I’m guilty!  There are times when I banter around terms that mean something to me, but are meaningless—or downright misleading—to non-insurance people.  That’s why I included a Life Insurance Terminology tab on this site.  But, even with that assist, much of our “insider’s terminology” needs clarification.  So, here goes on some of those terms that [...]

16 May 2014 0 Comments

What do you do with the cash?

In my last entry I discussed steps to take when replacing one life insurance policy with another.  Now I’ll cover what considerations there are when a life insurance policy that has cash value is either being replaced or discontinued. Options available to use the cash to continue insurance with the same policy were covered two [...]

14 May 2014 0 Comments

Help! My Life Insurance Premiums are too High!

If premiums for your car insurance are too high, you simply shop the market and if another insurance company beats what you’re paying, you switch.  It’s a pretty easy decision to make.  But, the Life Insurance switch is not so easy.  Aside from the fact that life insurance policies tend to be more complex, it’s [...]