Insurance sales pitch red-flagged

Watch out for unauthorized life-insurance offers Date published: 3/26/2006

THE OFFICE of Personnel Management has just released a letter warning that insurance company salespersons are misrepresenting themselves as affiliates of the Federal Employees' Group Life Insurance Program.
OPM wants everyone to know that neither they nor FEGLI have endorsed this contact. Nor have they authorized any privately sponsored life insurance plans.

Federal workers and retirees should understand that FEGLI does not use sales agents or telephone solicitations of any kind. Furthermore, OPM stresses that no one from FEGLI will ever contact employees or enrollees, at work or at home.

To read more click below:
Watch out for unauthorized life-insurance offers

life insurance for cancer survivors

Life Insurance Offered to Cancer Survivors ABC News
HARTFORD, Conn. Mar 27, 2006 (AP)— The Hartford Financial Services Group Inc. will make life insurance coverage more accessible to men with prostate cancer, recognizing rising survival rates with early detection.

buying life insurance online

By Marty Weishaar
Efinancial.com

Before submitting your information to an online Life Insurance website there are a few things you should know.

Research-
Do a little research on the site before submitting any personal information. The top sites will contain articles, calculators, or blogs to help with the decision process. Make sure that the site has a learning center or contact information with a relevant privacy policy before submitting anything.

Your personal information-
Most websites use your personal information to offer you quotes while shopping online. Some sites just collect data without showing you a quote, and sell if off to multiple agents who may only work with 1 or 2 carriers, so be careful. You will likely want to work with a website that gives you quotes online and has agents on their staff. Any life insurance site that just acts as a "lead generator" is not looking out for the best interest of the consumer, just trying to make a buck off of your valuable data.

Viewing quotes Online-
Using data like your state, birth date, height and weight, online life insurance sites can offer quotes online. You are also asked to either choose a health class or answer a couple minor health questions to get a more accurate quote. Quotes that you receive can vary between sites, but all of the quotes come direct from the carrier, so they should be the same. If someone says they can get you a cheaper rate, it is most likely with a different company. That is the good thing about life insurance, whether you buy if from brokerage A or Brokerage B, you pay the same amount regardless of where you buy it. Agents can’t hide fees like the mortgage industry. Agents are paid from the insurance company, not you.
Generally you will see the same quotes on all of the websites- Most of the online brokerages work with the same top rated carriers like AIG, Chase, Transamerica, Genworth, Banner Life, RBC Insurance to name a few. Some small agents will only work with a few carriers, so be sure to ask for information on multiple carriers, and be sure to ask for their rating. Often times, a cheaper rate, means a lower caliber insurance company.

Application Request-
You may see life insurance sites use the term “application request form”. This isn’t to have the company actually send the application, more to gauge interest in purchasing life insurance. If a site says that you can apply online, it just means you can start the application process online. Life Insurance requires certain forms and questionnaires, and any brokerage you work with will have to get these same forms.

Where to find a good website-
Chances are that if you are looking for life insurance, you have gone to a search engine to research. This is the best spot to get a quality quote. Search engine advertising is extremely expensive, so these advertisers will tend to be the most trustworthy in the industry. Be careful of emails that offer "free life insurance quotes", most legitimate sites don’t use email or spam. These are likely the sites that will sell your information of 5 times.

What happens when you buy life insurance online-
Online Life Insurance brokerages have made it easy to buy online.
Step 1-fill out a quote online
Step 2-speak with an agent to confirm your information and schedule a medical exam
Step 3-An agent will fax, email or mail a pre-filled paper application to your home or office. You can sign and return or give it to the person who gives the exam.
Step 4-Your policy is submitted to the carrier and is now in the underwriting process, this takes between 1 and 6 weeks.
Step 5-Your policy is approved, and coverage is in force.

If you are searching for life insurance, be sure to visit www.efinancial.com along the way.

For more information, call 1-866-703-2332 to speak with an agent now.

Bankrate life insurance calculator

A bit lengthy- so they can make some advertising dollars.

http://www.bankrate.com/brm/insurance-advisers/life-insurance.asp

article from MSN about purchasing life insurance

How to get the best deal in life insurance
Marriage and/or children mean it’s time to buy life insurance, says Jean Chatzky. Here’s the most economic way to buy it

When it comes to life insurance, it is unnecessary for most single people. But with a spouse and a family, your decision to get coverage is a smart one. The key to picking the right policy is to figure out how much support — in dollar terms — your dependents would need if something happened to you, then go out and buy that coverage at the most cost-effective price from a top-rated insurer. It can be a pretty tough maze to navigate, so let's take it step-by-step.............

To read the entire article click here....
http://www.msnbc.msn.com/id/5354181/

release from our wholesale brokerage.

NEWLY RELEASED SOFTWARE DELIVERS AGENTS FAST AND EFFECTIVE METHOD FOR SELLING LIFE INSURANCE POLICIES

For Immediate Release

Efinancial Launches New Version of ALISS Automated Sales Software to Improve Customer Relationships, Reduce Sales Cycle Time and Increase Policy Matching Satisfaction.

BELLEVUE, Wash. – Feb. 28, 2006 – Efinancial, an online life insurance brokerage firm (www.efinancial.net), today announced the launch of a new version of its Internet-based life insurance sales software. Released this month, Efinancial’s Automated Life Insurance Sales System (ALISS) is a 100 percent online solution that offers insurance agents a faster and more effective method for matching customers to the best policies available, expediting the overall process and improving agent service and satisfaction.

“ALISS is the most complete life insurance contact management system on the market today,” said Brian Fife, chief executive officer of Zebraquote, a term life insurance provider. “The leverage you gain in efficiency and speed is staggering. ALISS has been an integral part of the growth and increased revenue our business has achieved.”

According to a recent report by Forrester Research and Flamingo International, the percentage of life insurance policies is expected to grow exponentially in the coming years, significantly increasing from the 18 percent recorded in 2005. Efinancial’s ALISS software enables life insurance sales leads to be carefully managed as they flow through the sales cycle, delivering important documents and actionable advice on next steps integral to quickly closing the deal. Today, Efinancial has more than 1,000 agents from single-person operations to large commercial banks that benefit from the company’s sophisticated and easy-to-use ALISS system.

“One of the most significant challenges for life insurance agents today is the time-consuming tasks associated with selling a single policy,” said CEO of Efinancial Michael Rowell. “ALISS eliminates these tasks and allows agents to sell more policies than ever before.”

Based on real feedback from agents that use the system on a daily basis, Efinancial added important new features to further simplify the entire life insurance sales process. Unlike competitive solutions, the latest version of ALISS creates an almost paperless process, including the automation of application completion, medical exam scheduling, and real time status on the underwriting process, as well as fast online quote retrieval from all carrier-quote engines. In addition, ALISS helps sales agents stay on top of a lead by emailing scheduled updates and reminders, and setting up follow-up emails. In fact, upon completion, ALISS provides agents with the application, cover letter and mail label, which are print ready for increased timesavings.
ALISS is available at www.efinancial.net at no cost for agents with carrier contracting and requires only a nominal set-up fee.

CEO Michael Rowell says, “The reason so many people get out of life insurance sales is the time consuming tasks associated with selling a single policy. I would not be in business today if we had not created a product that eliminates these tasks and allows agents to sell more policies than ever before. We work with everybody from single person operations, to large commercial banks. Everyone is having success using the ALISS system to sell life insurance.”

About Efinancial
Founded in 2001 and based in Bellevue, Wash., Efinancial, formerly 4brokers.com, is a full service, internet-based life insurance brokerage. Efinancial delivers the most advanced processing system available today to help insurance consumers expedite life insurance requests and stay informed on the status of their insurance purchase. Used by more than 2,500 contracted insurance agents today, Efinancial provides agents with top commissions, exclusive lead programs and innovative technology for saving time and money.

For more information about the company and its product, please visit www.efinancial.net. For more information, please contact: Marty Weishaar, Director of Marketing Efinancial 425.460.4903 martyw@efinancial.com

quick Q&A

What is Term Insurance?
Term insurance provides protection for a specific period of time. It pays a benefit only if you die during the term. Some term insurance policies can be renewed when you reach the end of a specific period, which can be from one to 30 years. The premium rates increase at each renewal date. Many policies require that evidence of insurability be furnished at renewal for you to qualify for the lowest available rates.
How much life insurance do you need?If you are providing financial support for people who are depending on you, you probably need life insurance. To determine how much you need, deduct the total income that would be lost upon your death from the sum required for your family's ongoing financial stability. Beyond that, it depends on your particular circumstances (e.g., whether you have considerable net worth or few backup resources) and whether you want insurance for other purposes, such as educational funds or your own retirement income. Although there is no substitute for a careful evaluation of the amount of coverage needed to meet your needs, one rule of thumb is to buy life insurance that is equal to five to seven times your annual gross income.

What Types of Policies are offered?
Policies offered have premiums that remain level for the initial term period your select, 1, 5, 10, 15, 20, 25, or 30 years. Therefore, following underwriting approval, your premium is guaranteed not to change during the initial term of your policy.
Do I have to take a medical exam?Yes. Every company requires a brief paramedic exam which includes blood and urine sample. This is free and is done in your home or office, at your convenience, and usually takes less than 30 minutes.

What is the Medical Information Bureau (MIB)?
The Medical Information Bureau, or MIB is a non-profit association of about 600 U.S. and Canadian life insurance companies that provide information to each about an applicant's past medical history. Its intention and purpose is to deter applicants of life, health, disability, or long-term care insurance who would omit or misrepresent facts about their medical history when applying for coverage

How do I contact the MIB about my medical file?
The MIB does not have a file on everyone. But if your medical information is on file, you will want to be sure it is correct. You can obtain a copy ($8.50) by writing to:
Medical Information BureauP.O. Box 105, Essex StationBoston, MA 02112or call (617) 426-3660.
You can also visit the MIB web site at www.mib.com to find out more.

Why might the underwriting process take a while?
If you have any medical history that an insurance company may see as questionable, they will send a request to your physician(s) for your records and this process can take a few weeks. The other reason why underwriting can take a while is that if you are applying for a large amount of coverage, most companies will request a copy of your driving record, send for a copy of your doctor records (whether there is any history or not) and also call you to complete a Personal History Interview.

What is Personal History Interview (PHI)?
A Personal History Interview is conducted over the telephone and takes about ten to fifteen minutes. The interviewer will ask questions about your personal characteristics, mode of living and may also repeat questions already asked on the application itself. Some questions may seem odd or uncomfortable but are asked only to gain a better understanding of your background. It is important that if the interviewer calls you at an inconvenient time you ask to be called back.
What if I had a bankruptcy; how will that affect my rates?With the majority of companies most will require that it be discharged completely or be over a year after filing before they will underwrite you. The reason being is that your past credit history may signify an inability to pay future premiums. Due to the high up-front cost that insurance companies incur to establish a new policy, they will be very cautious about this. If it has been discharged completely it shouldn't affect your rates.

How long does it take for the insurance company to pay a claim?
The insurance companies usually pay the claims within days of receiving the paperwork and a copy of the death certificate. Our experiences with the companies we work with have been very quick and easy.

Marty
www.efinancial.com

Term insurance is typically purchased to protect a growing family from the catastrophic loss of a breadwinner. Lower initial premiums offer the flexibility to fit immediate needs. However, over time, a more permanent and valuable life insurance policy may be needed to provide security and more stable premium payments for the future.
The affordable cost / high benefit of term insurance is its most attractive feature. However, term insurance premiums typically continue to rise with age. Some term policies do offer premiums that remain level for a pre-determined number of years, but these policies may experience significant premium increases in the future, or death benefits that decrease yearly. A policy that has long-term value and benefits, and the flexibility to help cope with change, is important. Therefore, converting a term policy to a cash value policy may make sense.Long-Term Benefits
A quality, cash value insurance policy provides the same death benefit protection as term insurance, while offering the opportunity for tax-deferred cash accumulation. Unlike term insurance premiums that increase with age, cash value insurance provides level premiums for the duration of the contract (although you must check with your insurer regarding premium payments over the life of any given policy).
Although cash value insurance initially costs more than term, the long-term savings could be quite substantial. The cash value buildup will continue to grow on a tax-deferred basis as long as the policy remains in force. By offering the flexibility to meet future needs and budgets, a cash value policy can help provide an excellent source of funding for retirement income, college expenses, or other financial needs.The conversion privilege available in most term policies offers those who cannot initially afford cash value insurance a great opportunity to convert to a cash value contract at a later date. Some term policies may offer a conversion credit that makes converting to cash value insurance even more economical.
One particular advantage of converting from term rather than purchasing a new cash value policy is that there is no need for medical or financial requalification. Significant weight fluctuations and increased blood pressure are just a few symptoms of life in today's fast-paced society. Daily pressures and expectations, both at work and at home, can contribute to both health and financial problems. Converting a term policy to a cash value contract eliminates the need to undergo a new medical examination or provide updated financial information (as long as there are no increases in the amount of coverage, or any additional riders).Making the Move
Converting your term insurance to cash value coverage may help provide maximum security and protection. You will be comfortable knowing your family will be provided for in the event of your untimely death. In addition, you will also feel a great sense of confidence in knowing your premiums are hard at work building tax-deferred cash values, which may be important in the years to come. While this approach may not be for everyone, it is always wise to review your insurance options on an ongoing basis so they remain consistent with your needs and goals.INLCONV1 Copyright ? 2003 Liberty Publishing, Inc. All rights reserved.

Marty
www.efinancial.com

Life Insurance through stages

You have taken the first step, and have selected a life insurance policy that meets your coverage goals. Before you put that policy in a drawer to gather dust you must remember that life insurance needs change when you reach life's various milestones. In order to ensure your coverage continues to meet your needs and stays current, you must review your policy throughout the years on a regular basis.
Clearly, you recognize the importance of life insurance and the role it can play in protecting the financial security of your loved ones. And yet, are you reviewing your policy on an annual basis? Doing so becomes particularly important whenever you reach any of life's milestones. New additions in your life such as a spouse, homeownership, or the birth of a child make reviewing your policy a necessary component of planning your financial future. You may need to give your policy extra consideration in the event of
Marriage. In addition to determining whether or not your coverage amount is still appropriate, you may also consider insurance for your spouse. Updating your beneficiary list to include your new spouse, as well as correcting your policy to reflect a name change, if applicable, are important aspects of your plan.
Children. With added responsibilities comes the need for additional coverage. Keep in mind that the skills of a child's primary caretaker are not easily replaced, and childcare can be expensive. As your family grows, be sure to update your beneficiary list.
New Home or Refinancing. Owning your own home is an unbeatable feeling, but extra coverage may be necessary to help ensure that mortgage requirements continue to be met.
Start a College/Retirement Savings Plan. Review coverage amounts to supplement a potential loss incurred before your financial goals are met. Know the coverage periods of your policy to ensure you are covered for a length of time that meets your current needs and future objectives.
Starting Your Own Business. If you leave your old job to start your own business, make sure that you do not sustain a significant loss in coverage when you leave your employer's benefit plan. You should again review your policy objectives and consider the ways in which life insurance can be a useful business tool. For example, for business continuation purposes, you may now be interested in obtaining coverage for financing a buy-sell agreement. In certain circumstances, you may consider placing business partners on your beneficiary list.
New Job. If you change jobs, pay attention to the benefits. Coverage amounts will often vary greatly from employer to employer, and this must be factored in to your personal policy.
Perhaps one of the most secure feelings in life is knowing that you have covered your bases and are prepared for whatever may happen. Through annual checkups you can plan for coverage that will provide for your loved ones, and help ensure that financial goals and obligations will be met. As you approach each one of life's many milestones, you will find that additional consideration and planning are well worth the effort.INLRVW01 Copyright © 2003 Liberty Publishing, Inc. All rights reserved.

Marty
www.efinancial.com

analyzing your needs

You probably are aware it is important to have enough life insurance coverage to handle the financial contingencies that may affect your family in the event of your death. However, determining the necessary amount of life insurance can be complicated. One general rule of thumb is that you should have enough life insurance to equal five to seven times your annual salary. However, to be more specific, you may want to determine the right amount of life insurance coverage with a careful needs analysis, rather than using an arbitrary formula.
The Needs Analysis approach incorporates an evaluation of a family's most important financial obligations and goals. This includes insurance coverage to help address mortgage debt, college expenses, and future family income, as well as liquidity for meeting future estate tax liabilities.Mortgage Debt
The first point worthy of consideration is whether your life insurance proceeds will be sufficient to help pay the remaining mortgage on your home. If you are carrying a large mortgage, you may need a sizable amount. If you own a second home, the mortgage on that home should also be factored into the formula.College Expenses
Many people want life insurance proceeds large enough to help cover their children's college expenses and, possibly, graduate school. The amount needed can be roughly calculated by matching the ages of your children against projected college costs adjusted for inflation. This calculation should be revised periodically as your children get closer to college age, and it may be a good idea to be as conservative as possible when estimating long-term savings goals.Continuing Income for Your Family
The amount of income you will need to help provide for your surviving spouse and dependents will vary greatly according to your other assets, retirement plan benefits, Social Security benefits, age, health, and your spouse's earning power. Many surviving spouses may already be employed, or will find employment, but their income is based on education, training, and experience. Your spouse's income, alone, may be insufficient to cover the monthly expenses of your family's current lifestyle. Providing a supplemental income fund can help your family maintain its standard of living.Estate Taxes
Life insurance has long been recognized as an effective method for establishing liquidity at death to both pay estate taxes and maximize asset transfers to future generations. However, this use of life insurance requires qualified legal expertise to help ensure the proper results.Existing Resources
If your current assets and retirement plan death benefits are sufficient to cover your financial needs and obligations, you may not need additional life insurance for these purposes. However, if they are inadequate, the difference between your total assets and your total needs may be funded with life insurance.
There are many factors to consider when completing a Needs Analysis. In addition to the areas already mentioned, some other questions you might want to address are:
How much will Social Security provide and for how long?
How do you inflation-proof your family income, so the real purchasing power of those dollars does not decrease?
What is the earning potential of your surviving spouse?
How often should you review your Needs Analysis?
How can you use life insurance to help provide retirement income?
How do you structure your estate to reduce the impact of estate taxes?
Which assets are liquid and which would not be reduced by a forced sale?
Which assets would you want your family to retain because of future growth possibilities or sentiment?
As you develop an insurance strategy, remember to analyze your existing policies. Calculate the additional coverage you may need based on your family's financial obligations and any other resources, such as retirement benefits and savings. Remember, having the proper life insurance coverage can play a major role in any family's financial protection.INLJ2UU Copyright ? 2003 Liberty Publishing, Inc. All rights reserved.

Marty
www.efinancial.com

importance of life insurance

Losing someone close is one of the toughest things we will all have to deal with. If that person has not properly planned ahead to cover the expenses they have left behind then they leave a tremendous burden on their loved ones. The grieving process is difficult enough but when complicated with financial issues can leave bitter feelings. The last thing someone wants to be remembered for is not properly planning ahead.
Term life insurance is a cost effective way to protect the ones you care about from having to clean up a financial mess after you have passed on. Several unexpected costs arise after death such as funeral expenses and burial costs, medical expenses, and other costs that normally rise into the tens of thousands of dollars. In addition to these final expenses there are the normal costs of living to pay for. The regular monthly bills such as mortgage payments, insurance, loans, and other expenses must still be paid even though you're gone. All of these expenses can quickly deplete your savings or retirement money and force loved ones to sell things or investments below value. You need liquid assets that can be available quickly after your death. Even high net worth individuals need life insurance because houses, property, and other investments can't be sold fast enough to provide the required assets. If your loved ones are forced to quickly sell investments such as houses, property, stocks, or mutual funds, they possibly will take a loss just to get the money.
Stay at home parents and non-working spouses are often over looked when it comes to life insurance. The loss of a stay at home spouse means that the working spouse will often have to quit their job or pay for someone to take care of kids and tend to the things at the house.

marty
www.efinancial.com

10 tips for purchasing life insurance

1. Don't wait till you REALLY NEED the coverage! By that time you'll be that much older, you'll be sick or you will have encountered a health issue that will cause your premiums to be significantly more than you anticipated. That is of course if you can even qualify for the coverage!
2. The highest financial rating doesn't necessarily mean better coverage. The important thing is to at least be looking at an 'A' rated company. There is little, if any difference between one company's term policy and another, so basing a decision solely on ratings won't always get you best deal. The highest rated companies tend to be more conservative in their underwriting and attaining the 'best available' with them will be a bit more difficult.
3. Shop online first before you meet individually with an agent! Many online life insurance brokerage companies can be a useful source of information and can save you up to 75% on your premiums. The reason is of course because they are impartial and are not driven to sell you only one company's product.
4. Pay annually if you can afford it. Paying annually can save you up to 20% with some companies versus monthly, quarterly or semi-annually.
5. Don't smoke. If you are trying to save money then being a smoker won't help your cause. However, if you do smoke, most companies will let you re-apply for nonsmoker rates if it has been at least 1 full year from your last usage.
6. If you have cholesterol or blood pressure issues get it controlled with medication. Insurance companies don't like to see health issues go unattended. If you are doing something to control it they will likely look at that favorably and give you the benefit of the doubt when it comes to approval time.
7. If you are considering buying $90,000 of coverage, buy $100,000 instead. Many times it will cost less, the same or just a tad more for additional coverage. Insurance companies may give breakpoints at $100,000, $250,000, $500,000, $750,000 and $1,000,000.
8. Read the 'Prepare for the Medical Exam' section before completing your exam. Eating a few Twinkies or calling your stockbroker a half hour before your exam will surely turn your lab results sour and cost you big time!
9. Obtaining coverage through your company's plan may be a good alternative in the short-run. Many employer's plans however are not portable and won't let you continue your coverage if you leave. If you need coverage then, you'll have to apply for an individual policy anyway. Don't leave it to your employer to take care of you!
10. If you're 30 years old, you're as old as 31 in the eyes of the insurance company. Most insurance companies round up when determining your age and because premiums increase with age that can make a big difference. So, if you're approaching 30 and you have thoughts of applying, don't wait!

Marty
www.efinancial.com