Villa Rose Associates Ltd.

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FOR IMMEDIATE RELEASE

                                        TERM LIFE INSURANCE

Term Insurance is pure protection against financial loss resulting from death during a specific period of time. Term insurance is usually the best buy for a person needing insurance for a relatively short period of time - less than ten years.  Term Insurance offers the most coverage for the least amount of premium.  It is NOT designed to meet a permanent need.

• Advantages:
•  
  • Usually 10% to 20% cheaper than whole life contracts.
  • Pure Protection.
  • Can be renewed or converted.

• Disadvantages:
•  
  • No Savings element.
  • No benefit if insured outlives specified period.

Three Types of Term Insurance

• Annual Renewable Term (ART), Offers level coverage with increasing yearly premiums that automatically renews each policy year when premiums are paid.   Suited for the individual who desires coverage for 5 years or less.
• Level Term (LT), Premiums and coverage remain level for the specified period of time stated in the policy (usually 5,10, 15 years).  After the level premium period ends, re-entry is available for the next period of time.  Designed to provide guaranteed current premiums for longer periods of time and is suited for individuals needing coverage 15 years or more.  Over an extended period of time LT plans are generally more cost effective than ART policies.
• Decreasing Term (DT or MORTGAGE INSURANCE), Coverage decreases annually by a specific percentage for a predetermined period of time while the premiums remain the same.  Generally the most expensive. Coverage ends when the policy face amount decreases to zero.

BLENDED INSURANCE

Some times your need is greater than your budget can afford.  To accomplish our goal for coverage sometimes it is beneficial to blend term with another form of insurance such as whole life-life insurance.  This way you would maximize coverage and minimize premiums.

Basic Uses of Life Insurance

• Provide financial security for desired beneficiaries.
• Force savings through premium payments.
• Provide for estate liquidity, equalization for heirs, and wealth transfer.
• Fund Repayment of a specific debt, such as a house mortgage.
• Provide for a special need, such as college expenses, to create an estate, or to pay the estate taxes.
• Use split-dollar insurance for key employees.
• Satisfy spouse's claims in a matrimonial settlement.
• Use for business cross-purchase agreements.

Life Insurance Facts

The American Council of Life Insurance (ACLI) provides a free booklet with a step-by-step process of purchasing life insurance.  The booklet provides simple insurance buying tips, how to find an Agent, and the questions to ask an agent.  ACLI is a trade association of more than 600 life insurance companies that together provide approximately 90% of life insurance in the U.S.  They have a free booklet entitled "What You Should Know About Buying Life Insurance" which can be obtained by calling (800) 338-4471.

Note: Both Jeffrey Rosenthal and Margaret Diaz are independent Life and Health Insurance Agents.

Shopping for Insurance

A simple and economical way to shop for term insurance or any insurance is to meet with several agents.  Your concerns are coverage, benefits and cost.

CAUTION: The least expense policy is not always the best value.  The lowest quote for a term policy may require the applicant to requalify for coverage in a few years, while a slightly more expensive policy guarantees coverage at the same rate for a longer period.

Locating A Missing Insurance Policy

Many times when a person dies, the location of his/her insurance policy is known.   The policy may be tracked down through: Missing Policy Search, American Council of Life Insurance, 1001 Pennsylvania Ave, N.W., Washington, D.C. 20004.

The Council also maintains a list of companies that have merged. changed names, or gone out of business.

Keeping Track Of Hidden Insurance Benefits

Many people have insurance coverage that they are unaware of or have forgotten.   If these people die accidentally, it is probable that the insurance payout will not be made because a spouse or next of kin is unaware of the policy.  Keep a file of all insurance policies.  Include those received through credit card companies, auto clubs, credit unions, banks, clubs, associations, etc.

10-Day FREE Look

Most people are not aware that they have up to 10 days after an insurance policy arrives in the mail to cancel it and receive a FULL REFUND.

Insure The Parent, NOT THE CHILD

In order to protect a child, a parent needs insurance on his/her life and not on the child's life.  If a parent dies the child will receive the funds needed for such things as a college education.  An insurance agent may argue that a child's premium is very low and that the insurance policy will protect the insurability of the child should the child become chronically ill. 

It is a Policy of both Jeffrey Rosenthal and Margaret Diaz to NOT offer Life Insurance Policies for children.

Riders

A excellent rider to add to your policy, if your state does not require it, is a AUTOMATIC POLICY LOAN (APL) provision.  This provision prevents accidental cancellation of the policy for non-payment of premiums.  In the event of non-payment it uses any accumulated cash value to make the payments.  However, if there is no cash value the policy will lapse.

Insurance Company Ratings

-CHECK LIFE INSURERS-

This rating system is for an informed insurance consumer, and NOT an endorsement by Either Jeffrey Rosenthal or Margaret Diaz of of any company.

* Only A.M. Best charges for a rating by phone - $2.50 a minute.   Your agent should be able to provide a FREE A.M. Best guide for the proposed Insurance Carrier.

This material is not intended to replace specific advice for your situation.  You are advised to discuss your situation with a qualified attorney, tax advisor, financial advisor, or insurance agent. The rules are quite complex and we did not intend to over-simplify these complicated rules.  Our intention was to familiarize you the the concepts and vocabulary so that you may have an informed discussion with a qualified professional.