What Every Life Insurance Policy Shouldn’t Be Without

by Evolution Of Wealth on March 16, 2010

Life Insurance sidekick

There’s one thing that every life insurance policy you have should not be without: waiver of premium.

Waiver of premium is a rider that you can add to any type of life insurance policy.  It pays the premium for you if you are disabled.  This rider will vary slightly from company to company but will usually kick in after you are disabled for 6 months.  What premium is paid will vary slightly depending on the type of policy.

Universal Life Insurance

The waiver of premium on most Universal Life insurance policies will pay the greater of the monthly charges within the policy or a specified amount designated by the policy owner at issue.

Whole Life Insurance

The waiver of premium on most Whole Life insurance policies will provide the premiums for the base policy as well as most additional riders.

Term Life Insurance

The waiver of premium on most term life insurance policies will provide the premiums for the policy.  Convertible term insurance will usually have a added waiver benefit which would allow the policy owner to convert the term insurance into a more permanent policy during the disability thus having the waiver of premium continue to provide the premiums for the policy as long as the disability continues.

For example, if you had a 20 year convertible term insurance policy with the waiver of premium and you became disabled during that policy, while the waiver of premium rider was providing the premiums, you would have the option to convert to a more permanent life insurance policy and continue to have the waiver of premium provide the premiums for the life insurance policy.

Waiver of premium, it’s your life insurance’s sidekick.

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Sunday Link Rodeo 20

by Evolution Of Wealth on March 14, 2010

Highlighting just some of the great personal finance blog posts of this past week.

What’s Your Magic Number? The (literally) million-dollar question from @leanlifecoach (guest post by @finengr) It’s always good to have goals. For your retirement, you are going to need to make some assumptions, just make sure you realize that things aren’t going to happen the way you planned.

Great Financial Advice From The In-Flight Safety Handbook from @enemyofdebt This is a great lesson that too many people forget about.  You can’t help someone else if you can’t first help yourself.

What is Wrong With Chasing Bank Rates from @mjtm I’m stealing Financial Engineer’s quote from the comments: “Chasing rates is almost like the equivalent to a risk-adverse day trader. You spend a lot of time for little return, and you get caught with your pants down and miss that big opportunity.”  I couldn’t have said it better myself.

Why it’s Important to Buy during Doom & Gloom News from @Matt_SF Rule #1 of investing: buy low and sell high.  Need I say more?

Cash is king, or cash is trash? from @Monevator I’m just not a fan of excess cash doing nothing for you.

Rich Friends, Poor Friends, Can You Be Their BFF? from @plantingdollars This is a good though-provoking.  I’m a believer that you are the average of your five closest friends.  Doesn’t mean you can’t change friends.

Make sure to check out my appearances this week:

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Hidden Gem of Life Insurance Policies

9 March 2010
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The earliest life insurance policy on record was issued on June 15, 1583 in London on the life of William Gybbons.  It was for a 12-month period.
Life insurance was born as annual renewable term (ART).  What ART is is life insurance coverage one year at a time.  What this means is the cost of the [...]

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7 Disability Insurance Add-on Features

6 March 2010

Last week we started by looking at some sweet spots for your disability insurance policies.  This week we are going to jump right into looking at some add-on features that you need to know about when evaluating your own disability insurance policy or shopping for a new and/or better policy.
1.  Catastrophic Rider
I’m starting with the [...]

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Secondary Guarantees Ruin Flexibility

3 March 2010
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One of the biggest selling points for Universal Life insurance policies today are their secondary guarantees. Have you ever heard of them?  What’s been happening with Universal life insurance policies is that they are very reliant on interest rates.  How are interest rates today?  Lower than anyone ever thought they would be, even the life [...]

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Defining Financial Planning

2 March 2010
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Has anyone ever asked you what your definition of financial planning is?
There is no right or wrong answer.  In fact, I think I’ll pose this question on FiLife.com and see what we get.  Feel free to share your definition or your thoughts in the comments below as well.  In the meantime, I’ll share my definition [...]

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Pricing Your Disability Insurance

25 February 2010
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Price is only an issue in the absence of value.  The problem with disability insurance is determining value.  To understand this we first need to look at how disability insurance policies are priced.  We want to make sure we are getting the most bang for the buck and see if we can find some sweet [...]

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Whole Life Insurance is Stackable

24 February 2010
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I was reading a post over a Clarifinancial titled, Can You Own More Than One Life Insurance Policy?
His post got me thinking about the changes that have come about in the the life insurance industry.
Due the their cost structure, Universal Life insurance policies have often been touted as the most flexible life insurance policies.  I’m [...]

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Sunday Link Rodeo 19 – Special Monday Edition

22 February 2010

This is the special Samurai Alexa Ranking Challenge Edition!
In honor of this challenge I am listing out the latest post from each of the participants.  I highly recommend everyone on this list if you are looking for some great personal finance reading on the web.  Make sure to check out the original challenge and also [...]

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Why Your Finanical Planner is Like a Buffet

10 February 2010
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I don’t know about you but when I decide to go out to eat, where I go depends on what mood I’m in.

Burger – I’m probably heading to a bar or pub.
Fish – I’m going to a seafood place
Steak – Has to be a steakhouse they almost always have the best cuts of beef.
Pasta – [...]

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