Term Life Insurance Beginners Guide

August 18th, 2007 by Jeannine C

Buying life insurance can seem so intimidating.  For starters, the only time it really pays off is when something very sad happens, so it is quite understandable that no one likes to think about it.  But life’s reality is that sad things happen all the time, and the only thing that could make that worse is leaving your family unprepared.  That is why if your life includes wonderful things like children or a home, it is important to make arrangements in advance, just in case.

Term life insurance is the most affordable way to meet short term needs, such as ensuring that there is enough money for the kids to go to college or pay off the mortgage should something happen.  This type of insurance is purchased to cover a specific period of time, anywhere from one to thirty years, with a payout level you select.  One of the best features of term life insurance is the fixed premium, so you will always know exactly what amount to budget.  The cost of the policy is based on your age and health at the time of purchase.

Begin the process of securing term life insurance by determining the resources your family would need.  Consider what your annual income is, how many dependents you have, and what expenses would continue even when you are gone.  What would your spouse need to pay for four or five years of college tuition for each child?  How big is your mortgage?  If you are not there, do you want your spouse to stay home with the children through a difficult time, or would she/he be able to work too?  Are there any other outstanding loans or obligations your family would face?

One important thing to remember when purchasing term life insurance is that there is no savings component to this type of policy. Your premiums only cover the cost of the policy, but it does ensure that your loved ones will be paid the full amount if you should die.  It is possible to choose a “convertible” policy which can be converted to permanent life insurance when the term expires; if this is something you are interested in, ask about it before you buy your term policy.

Once you have identified the amount needed, compare quotes from multiple term life companies.  Based on their claim experience, you may be surprised at the range of rates you receive.  Shopping online can actually make this pretty easy.  After you’ve purchased your policy, other than paying the premiums, you won’t have to worry about taking care of this again, unless there is a change in your responsibilities, like having another child or buying a more expensive home.  If that happens, you will already know what to do, and in no time you’ll secure the resources to protect your family even if you are not there.

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Listen to Term Life Insurance Beginners Guide
Listen to Term Life Insurance Beginners Guide

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Bank of America Launches New Mortgage Program Including Insurance Especially Designed for “Local Heroes”

August 10th, 2007 by Jeannine C

Bank of America has launched the Neighborhood Champions Protected Mortgage Program, which is a new type of mortgage exclusively for police, firefighters, teachers and medical workers.  It includes an insurance component which would pay up to $300,000 of their mortgage balance in case of accidental death, paralysis or dismemberment.  The program also permits little or no down payment and has flexible credit guidelines as well.

The program was inspired by an Orange County, FL, sheriff’s deputy, 26-year-old Adam Pierce, who was shot on duty in 2005.  Following his recovery, he was unable to resume his duties as an officer.  “Adam Pierce embodies what this loan program is out to do, and that is to protect these outstanding professionals,” said Bank of America Consumer Real Estate and Insurance Services Group President Floyd Robinson.  “Too many Americans in these professions of honor simply cannot find and afford quality housing, especially in metropolitan areas.  (This program) also provides security and peace of mind should tragedy strike.”

Bank of America has grandfathered over 8,000 existing borrowers into this program.  Home equity loans are also available.  Some portions of this program may have tax consequences, so be sure to check with your accountant before committing to this type of mortgage.  For more information, call 888-870-9459.

What makes this program special is the Accidental Death and Dismemberment coverage.  Many people purchase a term life insurance policy when they buy their home simply to ensure their family has a place to live in case something should happen.  However the added cost of this policy sometimes proves too much for the limited salaries of government and medical workers.  Now even if something happens to them on the job, their home is safe.

Kudos to Bank of America for this program which helps individuals who have chosen to serve and protect the rest of us.  It is a great idea, and I hope that other companies follow suit, not only in the mortgage industry, but other industries as well.

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Listen to Bank of America Launches New Mortgage Program Including Insurance Especially Designed for “Local Heroes”
Listen to Bank of America Launches New Mortgage Program Including Insurance Especially Designed for “Local Heroes”

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