Don't kill your life insurance policy

Don't kill your life insurance policy

• Most policies have two major exclusions that can invalidate claims.
• Burden of proof on insurers to prove what they do, don't pay.
• Honesty protects policyholders; revealing too many details unwise.

The high-profile deaths of actors Heath Ledger and David Carradine -- both of which initially were thought to be suicides -- have brought attention to a serious financial question: Can certain factors (such as suicide) invalidate a life insurance policy?

In some cases, the answer is yes. The trouble starts with a few words known as "an exclusion" that may be found in a life insurance contract. An exclusion is a circumstance -- such as a particular cause of death or an allegation of fraud -- that invalidates a claim.

How likely is it your heirs will end up in court fighting for the benefit you're paying for now?

People who work in the industry insist it's relatively rare for life insurance companies to fight death claims.

"If the applicant does what's right, then the insurance company will do it. It's not a bait and switch; it's not something they're trying to avoid," says Rich Fuller, owner of Special Risk Services, an insurance agency in Littleton, Colo.

However, others are not so sure. For example, Joseph Belth, professor emeritus of insurance at Indiana University in Bloomington, says some insurance companies routinely resist paying claims that take place within the first two years after a policy is written.

"Many of (the claims they resist) are small policies and the people are not in the position to mount a real battle," says Belth, who also edits The Insurance Forum.

"There's really not enough money involved to interest a lawyer in getting into it, so (the beneficiaries) aren't really in a position to fight it."

2 big exclusions

Exclusions are not as prevalent as they used to be. In the past, many life insurance contracts contained exclusions for deaths due to acts of war, commissions of felony or even participation in riots.

Nowadays, some of these more oddball exclusions may still survive in group insurance, especially accidental death and dismemberment, or AD&D, insurance. However, the vast majority of life insurance policies include only two exclusions:

• Death by suicide. This one is pretty straightforward and is intended to prevent suicidal people from taking out a big life insurance policy to ensure their heirs will get a million-dollar payday.
• Material misrepresentation on your insurance application. This includes any intentional falsehoods or omitting key information that an insurance company would use to decide whether and at what cost to cover you.

In most states, these exclusions only apply for a limited time because of what's known as an "incontestability clause," says R. Marshall Jones, a life insurance consultant based in West Palm Beach, Fla.

“The burden is always on the insurance company to prove what they're supposed to pay.”

"In general, the contract will say that the death claim cannot be denied because of a misstatement of fact after the contract has been in force for more than two years," Jones says.

The only way an insurance company can contest the claim after that is if the company can prove intentional fraud, Jones says.

Unfortunately for Ledger's family, the actor's death occurred less than two years after his policy went into effect, and this exclusion and another related to his suspected suicide played a major role in the legal battle over a $10 million life insurance claim.

The insurance company in question, ReliaStar Life Insurance Co., alleged the star's death from a drug overdose was in fact a suicide and that Ledger had misled the company about his history of drug use during the underwriting process.

replacecontent-tcm:8-127983

Despite their allegations, ReliaStar eventually settled the case for an undisclosed amount in January 2009.

The 10 Most Dangerous Foods to Eat While Driving

Drivers who are drinking and stuffing their faces while on the road are a serious problem.

Restraining Orders for Food?

Hagerty Classic Insurance, a provider of classic-car insurance, looked more closely at this issue after a DMV check on an insurance applicant turned up a "restraining order" against anything edible within his reach while driving. The man apparently had several accidents attributed to eating while driving on his record.

Eating while driving is one of the many distracting things you can do, according to a study released by the National Highway Traffic Safety Administration (NHTSA) and the Virginia Tech Transportation Institute. 87% of rear-end crashes in which the driver struck the lead vehicle, and 42% of near-crashes involve some form of driver distraction.

Though NHTSA doesn't track specific information on food-related distraction, it does track general distractions. According to NHTSA, distraction was most likely to be involved in rear-end collisions in which the lead vehicle was stopped and in single-vehicle crashes. What makes distractions like eating such a problem is that they combine with unexpected situations – like a sharp curve or another driver's sudden stop – to cause an accident.

The top 10 food offenders in a car are:

1. Coffee – Even in cups with travel lids, somehow the liquid finds its way out of the opening each time you hit a bump.
2. Hot soup – Many people drink it like coffee and run the same risks.
3. Tacos – Any food that can disassemble itself will leave your car looking like a salad bar.
4. Chili Dogs – The potential for drips and slops down the front of clothing is significant.
5. Hamburgers – From the grease of the burger to ketchup and mustard, it could all end up on your hands, your clothes, and the steering wheel.
6. Barbecued food – Ditto. The sauce may be great, but if you have to lick your fingers, the sauce will end up on whatever you touch – and that wheel will be tough to grip.
7. Fried chicken – Another food that leaves you with greasy hands, which means constantly wiping them on something, even if it's your shirt.
8. Jelly donuts – Have you eaten a jelly donut without some of the center oozing out? It's simply not possible.
9. Soft drinks – Not only are they subject to spills, but also the carbonated kind can fizz as you're drinking if you make sudden movements, and most of us remember cola fizz in the nose from childhood. It isn't any more pleasant now.
10. Chocolate – Like greasy foods, chocolate coats the fingers as it melts, leaving its mark anywhere you touch. As you try to clean it off the steering wheel you're likely to end up swerving.

Insurance companies don't track specific information on eating and driving, because it's too difficult to break it down. But every company knows it's a problem. The difficulty in pinning down the exact cause of accidents lies in separating distractions such as cell phone use, talking to passengers, reading the newspaper, and eating, all of which drivers engage in while also trying to operate a two-ton piece of machinery.

How widespread is this food problem?

In a 2001 survey of 1,000 drivers for Exxon, more than 70 percent of drivers say they eat while driving, up from 58 percent in 1995. Eighty-three percent say they drink coffee, juice, or soda while driving and a few even say they'd love a microwave in their car.

While the NHTSA study doesn't mention eating as a driver distraction, food is probably involved in many crashes. Actions that cause distracted driving and lead to vehicle crashes are:

• Using a cell phone. Calling for carry-out?
• Reaching for a moving object. Flying French fries?
• Looking at an object or event outside of the vehicle. Where is Starbucks?
• Reading. Or tweeting for the closest BBQ?
• Applying makeup. Every second counts!

A 2008 national poll conducted by Nationwide Mutual showed that only 3 percent of respondents said "eating" is the most dangerous distraction for people while driving.

But, can you afford to be distracted? Think of this way. If you take your eyes off the road for 5 seconds every 5 minutes you drive, you've lost control of your car for a full minute every hour! And, besides being the right thing to do, cutting back on everyday driving distraction will help you save money on car insurance. Insurance.com's study of accidents and traffic tickets shows that the average auto insurance rate increases 25% following the first accident.

Got a great story about food and driving?

Tips for getting the best insurance quotes

Tips for getting the best insurance quotes.

General insurance tips:

1. Have your current insurance policy with you when requesting your insurance quotes.
2. Consider a higher insurance deductible.
3. Place all of your insurance policies with the same company to qualify for a multiple policy discount.

For car insurance quotes

1. Be sure all vehicle discounts are applied (Anti-lock brakes, Alarm system, daytime running lights, vin-etching, etc.).
2. Take a defensive driving course.
3. Be very accurate about your mileage to and from work.
4. Ask about affinity discounts.

For a homeowners insurance quotes

1. Be sure that your home is insured to its value
2. Be sure all home discounts are applied (Alarm, smoke alarms, fire extinguishers, dead bolt locks, etc.).
3. If your older home has been renovated, tell your agent.

For a life insurance quotes

1. Consider level premium term insurance.
2. If you are a smoker, quit for at least 13 months and request that your insurance company consider you for a nonsmoker insurance rate.

For a health insurance quotes

1. Consider a higher co-payment or deductible.
2. Join a group health insurance plan.

For a long-term insurance quotes

1. Consider a longer elimination (waiting) period.
2. Purchase coverage when you are young (premiums are lower).
3. Pick a daily benefit based on where you live.

You can likely chop your car insurance bill in half

If you're looking to trim your expenses as much as possible, you might be eying your insurance bills. There are many ways to tinker with your car insurance coverage to chop your premium down to a bare minimum. You could call your insurance company and:

* Drop your liability limits to the minimum level allowed by state law
* Drop your collision and comprehensive coverages
* Keep collision and comprehensive but increase your deductible to $1,000 or more
* Drop your uninsured motorists (UM) coverage

How low can you go? You can likely chop your car insurance bill in half by dropping your liability limits from "recommended" limits of 100/300/50 down to 25/50/10, dropping collision and comprehensive, and dropping UM (see chart below for average savings). Many states have minimum liability limits of 25/50/10, but others are higher or lower. See the minimum levels of car insurance you are required to buy.
How low can you go?
Average national insurance premiums
Vehicle Coverage of 100/300/50 with comprehensive & collision, UM included Coverage of 25/50/10, no comprehensive or collision, no UM Savings
Honda CR-V $834 $426 49%
Honda Odyssey $786 $338 57%
Chevy Tahoe $878 $420 52%
Ford F-series pickup $905 $438 52%
Toyota Camry $885 $412 53%
Chrysler Town & Country $768 $355 54%
Audi A8 $1,268 $426 66%
Source: bestinsurance4u.com research.
Average national premiums calculated for a 40-year-old single male driver. Policy limits of 100/300/50 assume a $500 deductible. Model year 2004 was used for all quotes because collision and comprehensive are often dropped on older cars. We used states with liability minimums of 25/50/10; some states require higher minimums.

But remember this: Dropping your car insurance to a bare minimum opens you up to substantial risk.

"You want to consider that very carefully. You’re trying to protect the assets you have," says Robert Passmore, spokesperson for the Property Casualty Insurers Association of America (PCIAA), an industry trade group. If you have a house, savings and investments, they could be put at risk if you cause a large accident where damage exceeds your insurance limits. And if you've dropped your UM coverage, a driver with no or inadequate insurance could wreck your finances too.

Passmore notes that the most expensive coverage dollars are the first dollars. In other words, $100,000 in coverage does not cost twice the price of $50,000 in coverage. "It’s like getting a volume discount," says Passmore.

Another quick way to save money is to comparison shop and change companies based solely on price. Before you leap to another insurer, check its track record. You won't receive more value for your insurance dollar if your new company has poor customer service. Many states release "complaint ratios" showing the relative number of consumer complaints against each company. bestinsurancequotes4u.com has contact information for state insurance departments.

recession in full swing and unemployment still moving higher

With the recession in full swing and unemployment still moving higher, consumers are looking for opportunities to save money any way they can. The most common budget items most look to trim first are things like groceries, gas and other expenses that vary month to month. But for some reason insurance costs, which are generally fixed, are often ignored.

That could be a costly mistake. Simply reviewing your auto and homeowners insurance policies and making a few adjustments could save you more than one hundred dollars a month. But where should you start?

First, take a hard look at your deductibles. Raising your home and auto insurance deductibles from $250 to $1,000 could reduce your premiums by 25 and 40 percent, respectively. You'll incur higher out-of-pocket costs should you need to file a claim, but the amount you'll save on your premiums may be well worth it.

Savings: Up to $45 per month. Time: Approx. 15 minutes

Second, carrying your home and auto insurance policies with a single insurer could save you even more. According to the Insurance Information Institute, converting to a multi line policy could save you as much as 15 percent on each premium. Plus, you'll have one fewer bill to pay each month.

Savings: As much as $20 per month. Time: Approx. 30 minutes

Third, if you haven't compared insurance providers in more than a year, you're overdue. And the simple act of shopping around can save you money instantly. There are a number of ways to get quotes, but one of the easiest ways is to let those quotes come to you by using an online comparison site such as WWW.bestinsurancequotes4u.com.

Savings: As much as $50 per month or more. Time: Approx. 15 minutes

Total Savings: Up to $115 or more per month

Total Time: Approximately one hour
learn more about ways to save on your auto and homeowners insurance, visit the bestinsurancequotes4u.com

Bestinsurancequotes4u.com

Creative E Marketing

Was incorporated in September 2000 to enable local and regional agents to leverage online marketing power and gain access to consumers shopping for their insurance needs on the Internet. Since its inception, A has quickly risen to become one of tho top source for online insurance marketing.

Lead Program was designed with the local agent mind. It gives the agent control over the lead price, the territory they want to target, and their daily volume of leads. We help agents grow their business by providing them with high quality, real-time auto insurance leads, homeowners insurance leads, and term life insurance leads .

we continues to expand services to help agents market themselves on the Internet. In January of 2006, Creative E Marketing launched bestinsurancequotes4u.com, an online directory of auto insurance agents. Agent Directory helps agents increase their online marketing reach by targeting consumers looking for a local insurance agent. we continues to create innovative ways to help insurance agents use the Internet to grow their business.

About Creative E Marketing

we Corporation has been in the online insurance business since 2000 and is one of the largest producers of personal lines insurance in the U.S. Each year, millions of insurance consumers visit us to gain insurance knowledge as well as comparison shop for insurance policies.

In 2007, over 5 million insurance consumers visited us. When ready to get an insurance quote, consumers fill out one of our online insurance questionnaires, and become the insurance leads that are available through us.

Term Life Insurance - Money Saving Tips

Term life insurance is a very affordable way to provide life insurance coverage for your loved ones. Even though it is affordable, there are still ways to save on a policy while making sure you maintain the proper coverage level you need.

1. Buy Term Life Insurance When You're Young

Many people may feel they don't need life insurance when they are young. While your financial needs may be lower at a younger age, the rates are also substantially cheaper when you're young. Remember, the goal is to cover your primary assets (like your salary and house) so that if something were to happen to you, your beneficiaries would be able to persevere financially. The best advice is to lock in as much protection at a young age while your health and prices are still good.

2. Your "Half" Birthday Could be Costly to Your Life Insurance Premiums

While some companies raise their prices based on your actual age, most companies increase the price of their policies six months before your birthday. It's a term called "Age Nearest" in the industry, and that half-year price increase could really add up over a 20-year term life policy. As above, the quicker you purchase your policy the better.

3. Select the Right Length of Term Life Insurance Coverage

Everyone has different needs, and not one size fits all when it comes to term life insurance. While it may make sense for people in their 30s and 40s to secure a 20-year term length, a 10-year term might be more appropriate for someone nearing retirement. People who are trying to quit smoking, for example, might be best suited purchasing a shorter term (and then replacing it with a longer term policy when they qualify for non-tobacco prices). Lastly, individuals who have 30-year mortgages might want to consider a 30-year term to ensure that the house is protected throughout the period of the loan.

4. Check for Term Life Insurance Policy Price Breaks

Companies often offer "price breaks" at certain coverage amounts (e.g., $250,000 vs. $225,000). The truth is that many people can actually pay less money for more coverage. Check how little your prices increase when you increase coverage to $250,000, $500,000, or $1,000,000.

5. Buy the Right Amount of Term Life Insurance Coverage

Many agents may try to sell you more coverage than you need. The purpose of life insurance is to "indemnify" (replace financial loss), and what most people should be looking for is income replacement for their beneficiaries. Independent financial planners recommend the following rule of thumb: purchase an amount of coverage equal to 6-10 times your annual gross income.

6. The Right Hobby With the Wrong Insurance Company Could Cost You on Life Insurance

People who participate in high-risk sports or activities (such as hang-gliding, skydiving, mountain climbing, scuba diving, and racing), or even those who like to have an occasional cigar could very well pay more money if they don't pick the right company. Every company looks at risk factors differently and some are more liberal in certain areas than others. Speak with a licensed insurance expert and make sure they have all the underwriting criteria at their disposal and match you with the right company.

7. Work Life Insurance Policies Aren't Always the Best Deal

While purchasing a life insurance policy through your employer is convenient, it may not be the best deal available to you. Work policies are often based on a composite profile of the employees you work with, many of whom may be less healthy than you, or have other underwriting factors that might drive up rates. These type of policies also expire if/when you leave the company. Inexpensive term life insurance polices that cover your dependents until they can live comfortably on their own are often a better alternative.

8. Check Out Your Payment/Billing Options with Term Life Insurance

Many life insurance companies offer discounts to consumers who pay their premiums annually, or who pay monthly by electronic funds transfer (EFT).

9. Review Your Term Life Insurance Policy Often

Do a review of your life insurance policy a minimum of every three years, if not more often. Rates may be lower, and your circumstances may have changed, necessitating more or less protection. If you are replacing a policy, make sure you allow enough time to get your new policy in place so coverages won't overlap or lapse.

10. Don't Overspend on Term Life Insurance Protection

Term life insurance is the most affordable and cost-effective pure protection available, and it is typically much less expensive than a comparable whole life policy. The old axiom still rings true: "Buy Term and invest the difference."

www.bestinsurancequotes4u.com