Free Insurance Guide

The Dictionary of Insurance Terms and Definitions

An accelerated death benefit is the payment of a death benefit prior to the death of the insured.  Life insurance policies may have a provision (it may be silent, standard, or attached as a rider) which promises an accelerated death benefit in the event of an exceptional medical condition, such as a terminal illness, disability, or need for long-term care.  Under these circumstances—particularly that of a need for long-term care—accelerated benefits are of particular value, since the medical conditions of concern often introduce pressing financial needs, such as the need to alter one’s living arrangements and hire a professional caregiver.

Accelerated death benefits may be less in value than the benefit that the policy would pay in the event of the insured’s death.  It is often 70 or 80 percent of the policy’s face value (ordinary death benefit).

An alternative to accelerated benefits is viatical settlments.  If yours is a cash value life insurance policy and if you are terminally ill, you can probably find a buyer who is willing to purchase ownership of your life insurance policy.  The buyer of a life insurance settlement is usually a financial company, and as with an accelerated death benefit, the payment is usually in the neighborhood of 70 percent of the policy’s face value.

The incidentA life insurance agent wrote a $25,000 life insurance policy on a nine-month-old infant.  In applying for coverage, the parents responded “No” to the following question:

Has any person proposed for insurance consulted or been seen by a physician, psychiatrist or medically licensed practitioner in the last five years, or has any such person ever been declined for life insurance or offered a policy with an extra premium charge?

Three months into the policy, the infant passed away. Upon

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The article below emerged in this week’s New York Times. It discusses how banks are becoming more weary of providing mortgages to potential clients where there may be a potential loss of income due to pregnancy. However, in my opinion, they are somewhat missing the mark.  Pregnant people are not the only people who will potentially lose their income. Statistically speaking, people between ages 30 and 60 have a 1 in 3 chance of losing their income due to a sickness or injury. These same people who are between ages 30 and 60 are also most likely the ones who hold mortgages on their homes.

Instead of denying people who are pregnant mortgages, why not look at the risk for the entire lending population and require they protect their hard earned income with an individual disability policy? Th

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When you apply for life and disability insurance, you are required to go through medical underwriting. This typically involves a paramedical exam (blood and urine test) and questions about your medical history. It is up to the applicant to answer the questions to the best of their knowledge and to fully disclose any medical conditions.

If a life or disability insurance claim occurs in the first 2 years from the initial policy date, the insurance company has the right to contest the claim if they deem there was missing or non disclosed information provided on the application.

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I think it’s no longer enough to settle for referred leads. We want introductions or connections to our new prospects. With referred leads, you may emerge from an appointment with 10 names and phone numbers, and not set a single appointment. But, if you emerge with three to four quality connections, you may set and sell all four.

In this article I’d like to give you examples of how your colleagues are using referral events to produce great quality introductions that result in new clients. I’m not talking about client appreciation events. I’m talking about referral events. There is a BIG difference. You host a client appreciation event to show your appreciation to your clients. That’s i

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