Although it’s unpleasant to think about, a time will come when the investment you’ve made by purchasing life insurance will come to its fruition when you pass away. The death of a loved one can be a trying and stressful time for a family, because not only do they have to deal with the emotional trauma created by their loss, they also have to deal with the practical matters surrounding a death, such as burial arrangements, reading a will, settling estate and business issues and getting the life insurance claim paid.

Knowledge is power in such situations. The more your family knows about your life insurance policy, the quicker they’ll be able to claim its benefits in the event of your death. Being able to get access to this cash quickly is important because in the event of an unexpected death your family will still have to pay their mortgages, credit cards, medical bills, college costs, etc. Not knowing how to access the policy, or not knowing that it exists, can severely hamper your family in a time of great need.

Most life insurance policies can be collected within just a few weeks or the process could take months, depending on whether the beneficiaries have access to all the documents they need and whether the policy is within the contestability period.

When the insured on a life insurance policy dies, the first step a beneficiary needs to take is to get in contact with the provider of the policy. Once the beneficiary does this, the company will send him or her claim forms and other documents that he or she will need to fill out. There’s a lot of paperwork involved in filing a life insurance claim, so budget the time you need to read, understand and complete all the paperwork. Once you finish the paperwork and submit it, the insurance company can get started on processing the claim. This will involve making sure the policy is valid and possibly investigating the death to make sure it falls within the policy’s coverage.

Things you may need to provide the insurance company include:

• death certificate
• coroner’s report
• copy of the policy

Be prepared for a lengthy investigation if your claim falls within the policy’s contestability period. The contestability period is typically a two year period after the purchase of the policy. The contestability period was brought about as a result of insurance providers’ determination that some individuals had been purchasing life insurance and misleading the insurance policy about the state of their health. Having to pay these claims cost the companies money, and drove up premium prices as the companies had to recoup their losses.

If the beneficiary of a life insurance policy is unable to find a copy of the policy, a useful tool he or she may make use of is the Medical Information Bureau’s Policy Locator database, which is available for $75 at www.mib.com/html/lost-life-insurance.html.

To make it easier for your loved ones to collect on your policy if you die unexpectedly, you need to make sure they know and understand the terms of the policy and have access to the documents they may need. Keep vital documents such as tax returns and insurance policies in a safe place in your home. It may also be advisable to also keep copies in a safe deposit box at a bank.

Communication of financial matters is important in any relationship. That’s why you should inform your spouse or any other beneficiary of your life insurance policy about the existence of the policy, its terms and what benefits they can expect to receive. Division of property and assets after a death in the family can sometimes bring out the worst in people, so to avoid family acrimony, it’s best just to go ahead and clearly inform everyone of what they’re entitled to in the event of your demise.

One thing that you don’t want to happen after your death is for your insurer to deny your life insurance claim. So be sure to be truthful on all forms your insurer sends to you. Don’t lie about pre-existing health conditions or bad habits like smoking. Insurers vigorously investigate suspicious deaths where they may be able to find a way to get out of paying a claim. Don’t fall into this trap by misleading your insurer to save a little money on your premium. Remember, your family’s financial stability may be riding on this.

An unexpected death can put great financial hardship upon a family with funeral costs and continuing life costs such as mortgages and monthly bills. Making sure your family knows how to quickly claim the benefits of your life insurance policy can help alleviate these problems.

Divorce is a stressful and extremely exhausting process. Not only are you having to deal with the emotional fallout concerning the termination of your marriage, you’re also having to deal with the equitable distribution of property accumulated during your marriage, and other financial issues related to you and your spouse’s decision to go your separate ways.

One key asset that is often overlooked when divorce proceedings begin is life insurance. Because it’s money that’s not immediately available, you might not give it as much thought as you would other more accessible property such as a house, car or stocks and bonds. However, life insurance is a valuable asset, and one that you and your former spouse should come to an agreement on regarding its continuation and payment.

A recent case in Florida, Kearley v. Kearley summed up the actions divorce courts can take regarding life insurance policies and benefits. The court in Kearley basically held that divorce courts may value, classify and distribute life insurance policies, can regard life insurance policies as a means to handle unpaid obligations such as mutual debt at the time of a spouse’s death, and can also treat the policy as a source of security to help take care of any alimony or child support obligations in the event of an obligor’s untimely demise.

In short, courts can make a spouse keep another spouse on a life insurance policy in order to help meet any child support or alimony obligations in case the other spouse dies, and courts can also require divorcing spouses to purchase life insurance to meet the support needs of their children should one of the spouses meet an unexpected death.

Courts can also set rules regarding cashing in of an existing life insurance policy. For example, a court may order the equitable distribution of proceeds from the cashing in of a life insurance policy between two spouses. Courts may also order that a divorcing spouse deciding to keep a life insurance policy must pay the other spouse the cash value of said policy.

Divorce courts can also order an injunction restraining a spouse from changing the beneficiary on an existing life insurance policy while proceedings are underway. This can prevent a divorcing spouse from circumventing court rules on division of community property by naming someone else as the beneficiary of the policy.

While courts do have the discretion to order that one spouse keep and maintain life insurance for the benefit of the other spouse, this authority may not be exercised capriciously. A court’s decision to order another spouse to keep and maintain life insurance for the benefit of the other spouse must be based on an alimony or child support award to the other spouse, the ill-health of a spouse and the ability of a spouse to obtain life insurance. In fact, some courts have ruled that a spouse’s duty to keep and maintain life insurance for the benefit of the other spouse ends once any alimony or child support obligation terminates.

Of course, if both spouses agree to waive rights regarding their status as a beneficiary of a life insurance policy, the court may grant this request. Oftentimes in divorce, a spouse will agree to this waiver as a bargaining chip to obtain some other benefit in the divorce agreement, such as the retention of a house, car or other property. Divorcing spouses considering this option should carefully weigh the benefit of what they are receiving against the potential loss of security or support should the other spouse die unexpectedly, especially if they have children to maintain and support. The average cost of raising a child from infancy to age 18 is more than $100,000, a difficult proposition without the expected support of the other spouse.

If a spouse is found to have violated a court order regarding a life insurance policy, there are several remedies available. For example, if the spouse is still living, the court may use contempt powers to fine, jail or compel the spouse to comply with the order.

Many times the other spouse doesn’t find out about the offending spouse’s violation unless he or she dies. If this is the case, the other spouse may go to court and file for the creation of a constructive trust, which would pay the spouse the money he or she is owed from other assets owned by the deceased spouse. For example, a husband constantly reassured his former spouse that he was maintaining the $100,000 life insurance policy he was ordered to maintain, but when he died, it was discovered that he had not. The wife filed for a constructive trust which was held against other policies naming his second wife as a beneficiary.

In conclusion, when obtaining a divorce, it is important to consider the value of a life insurance policy as marital property, and work to ensure the equitable distribution of the policy, or the maintenance of a new policy as surety for any alimony or child support obligations.

Life insurance is a fantastic way to ensure that your family or business is taken care of in case of your untimely demise. Many folks also use it as an investment vehicle, taking advantage of the cash value of their policies and federal regulations making life insurance policy investment earnings tax-deferred.

While life insurance can be used as an investment vehicle, it may not be the best investment vehicle out there. There are a number of other investment options out there that have favorable tax circumstances and that may also provide better returns on investment than your life insurance policy. To choose which option is best for you, you need to understand your life insurance policy, and also understand the other options available.

Life insurance can be good investment vehicle under the right circumstances. Life insurance policies are used as investment vehicles primarily by those who want to take advantage of the tax-deferred status on earnings on the cash value of the policy made through investment. For folks taht have a high tax bracket and need an tax-deferred place to park their money and watch it grow, using life insurance as an investment vehicles is a fairly sound strategy. And there is one circumstance when a life insurance policy is a great way to invest. The downer is that you have to die for your beneficiaries to reap this benefit. If you die while the policy is in force, your heirs will collect the benefits of the policy tax-free, and they can also have any cash value you’ve built up in the policy.

Folks should be aware, however, that many life insurance policies contain fees and service charges related to this type of investment that may reduce the value of their earnings. Insureds should check their policies carefully and ensure that they know everything about the fees and commissions associated with their policy before they use it as an investment vehicle to save for retirement.

If you’re looking for other investment options, consider the following:

401 (k) plans — A 401 (k) plan may be a better option, especially if your employer sponsors a matching program where the employer puts in the same amount you put in, essentially doubling your investment. 401 (k) plans are tax-deferred, meaning that the income you put into the plan is not taxed. For example, if you earn $40,000 per year and contributed $3,000 to your 401 (k) plan, your taxable income for the year only would be $37,000, instead of the whole $40,000.

When the time comes for you to withdraw the money for retirement, there are no fees and commissions like the ones associated with life insurance policies.

Keogh plan — A Keogh plan is a pension plan for self-employed individuals. In a Keogh plan, you can contributed up to 20 percent of your annual income, or $49,000, whichever is lesser to the plan. The contribution is tax deductible. In the Keogh plan, you can start withdrawing funds at age 59 and a half, and must start withdrawing funds by age 70. The Keogh plan was established in 1962 as a means for self-employed individuals to save for their retirement. There are a lot of administrative burdens and upkeep costs associated with the plan, but it remains popular because of the high contribution limits.

IRA — An IRA is an investment tool that you can use to set aside money for retirement. Contributions to your IRA are tax deductible up to a certain point. When you withdraw the money, you’ll be assessed taxes on that income. This may be advantageous because your income is likely to be lower after you retire, meaning you’ll pay less money in taxes then.

Roth IRA — The Roth IRA is a retirement plan that is similar to the IRA, but does not allow tax deductions for contributions. Instead, distributions are exempt from taxes. However, if you withdraw funds from the plan before you are eligible to do so, you will incur a tax penalty. Qualified withdrawals include those taken after age 59.5 or after one becomes disabled, those taken to purchase a first home, or the withdrawal of a deceased plan member’s funds by a beneficiary. Depending on your income and investment strategy, getting your tax deferral on the distribution side rather than the contribution side may be more advantageous.

Before purchasing life insurance or investing in any other retirement savings plan, it’s best to consult with a financial planner you can trust. It’s also helpful to know how much income you’re likely to make in the future, and to have a savings blueprint for your retirement. With good information and good planning, your financial advisor can guide you toward making the correct decision regarding your retirement.

Life insurance, like all financial service products, is governed by various federal regulations. These regulations apply to life insurance in all 50 U.S. states and the other federal territories. There are also state regulations, of varying depth and complexity from state to state.

The federal government does have some regulations concerning life insurance, but the majority of regulatory policy for life insurance policies is set by each state.

In order to buy the policy that’s best suited for you and your family, you should be aware of how state and federal life insurance regulations can impact your policy, both when you buy it and when it is time for benefits to be paid to your heirs.

Insurance companies have the stewardship of enormous sums of money, some in the range of hundreds of billions of dollars. Because the sums are so large, the financial health of insurers is a matter of public interest, therefore warranting the oversight of the federal government. Federal regulations largely work to ensure the insurer’s financial solvency so these companies can meet their obligations and guarantee fair competition and business practices among insurers.

State regulations handle the nuts and bolts of how policies operate and what rights and obligations insureds and beneficiaries have. For example, many states include a “free look” provision, which allows insureds to review their policy for 10 days after they’ve signed it, and if they find something they don’t like, they can cancel it without penalty. The time period for the “free look” provision varies from state to state. The “free look” provision is one of the most widespread consumer protections in the U.S.

Another common insurance regulation is a rule that gives policy holders a grace period of 30 days to make up a missed premium before their insurer can cancel their policy. Some states may have longer than 30 days.

Regulation of the release of medical or personal information by insurance companies to outside entities and insureds also can vary from state to state. For example, there are few regulations in Vermont preventing an insurer from releasing policyholder information to outside entities, but insurers are required to release all of a policyholder’s information to that policyholder on request. In Illinois, insurers are obligated to release medical information to a physician of the policyholder’s choice, but not to the individual policy holder.

States also often have regulations regarding how quickly a claim must be paid in the event of an insured’s death. For example, in Louisiana, claims must be paid within 60 days of an insured’s death or else interest begins to accrue that the insurer must pay over to the beneficiaries later.

States also regulate to protect insurers from fraud as well. Most states allow insurers to include a two-year contestability period in their life insurance polices, meaning that if an insured dies within two years of buying a policy, the insurer may challenge statements made by the insured on their application for coverage that may have been misleading concerning the insured’s health or lifestyle. This protects life insurance companies from individuals who lie about their health in order to secure benefits for their heirs. Preventing this is important in order to protect the integrity of insurance companies risk estimates, which set rates and approve or deny coverage based on the level of risk each potential insured poses to the company.

Understanding your policy and the regulations that govern it is important to picking the policy that’s best for you and allowing your heirs to garner the maximum benefit available from it. Unfortunately, the general public remains woefully uninformed concerning life insurance policies and regulation.
A recent survey conducted by the American Council of Life Insurers found that only about a third of Americans understood that most regulation of their insurance polices occurred at the state level. Almost one-fifth believed that the industry was not regulated at all.

Another disturbing trend found by the study was the fact that many state insurance regulatory agencies are underfunded, thus leaving them short-staffed and ill-resourced to handle the task of policing the industry.

These reasons should be more than enough to convince you to learn as much as possible about how your policy is regulated in order to safeguard the safeguard that is intended to protect your family.

One of the best ways to find out about individual states’ life insurance regulations, you should visit the state department of insurance’s Web site. Here’s links to all 50:

Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming

If you’re in the military, you know that you could be deployed at any time, thus making it extremely important for you to have your business and personal affairs in order at all times. Life insurance is one of these issues that needs to be settled and kept up-to-date for the protection of your family.

Insurance coverage can be tough for military personnel, as many policies include a “war exclusion” that stipulates that benefits will not be paid if the insured dies as a result of a war or military action. Also, many policies have exclusion that bar coverage for injuries or death that occur as a result of traveling on non-commercial aircraft. Also, if you’re deployed you’ll need a plan to take care of making payments on your policy and handling any paperwork because you may not be able to handle such matters from the field.

The Servicemember’s Group Life Insurance and Veterans Group Life Insurance policies offer coverage for active and retired military personnel at reasonable prices ($3.50 per month per $50,000 in each member’s salary), but you may want to purchase coverage above and beyond what these two agencies offer. The maximum benefit for each policy is $400,000, and while this may be enough coverage for some, military personnel with new families or a large number of dependents may want to purchase more protection.

The key to finding the right policy for military personnel is to shop around, and to make sure that you know all the ins and outs of a policy before you buy it. Various insurance policies have differing rules and exclusions applicable to their policies, so it’s important to ask the insurer’s agent or broker very specific policies about coverage before you purchase it.

Going in, you should be aware of the different types of policies that are available. Life insurance is generally divided into two main policy types, term and whole life insurance.

Term insurance offers coverage over a certain period of time. After that time is over, the coverage lapses and you are unable to redeem the policy for built up cash value, unless the policy is specifically written to allow this. The premiums for term life insurance are much cheaper than whole life insurance, however.

Whole life insurance offers coverage indefinitely, or until you turn 99, at which time you’ll receive the full benefits of your policy plus any accumulated cash value. Premiums for whole life policies cost more, but you can take advantage of some options not offered by term life policies, such as borrowing against the value of the policy or cashing in the value and collecting its cash value.

When purchasing life insurance, you should first ascertain whether the policy excludes deaths caused by war or military action. You should also inquire about how payment would be handled should you die. You also may want to look into a policy rider concerning disability insurance for any injuries you may receive as a result of your deployment.

You’ll also likely want to set up a system for the continued payment of your premiums while you’re deployed. An automatic payroll deduction or bill paying service may be your best option for this. Or you may want to give a trusted person power of attorney to handle these affairs for you while you’re away.

Unfortunately, because of the many deployments caused by the Afghan and Iraq wars, a cottage industry of insurance fraudsters who specialize in trying to cheat military families has sprung up. These unscrupulous agents try to sell military families life insurance policies that are inappropriate for the families’ needs and that the insurer can easily wiggle out of paying should the insured pass away. You can learn who not to deal with by visiting http://www.commanderspage.dod.mil/ to take a look at a list of insurance and financial product companies that are forbidden to work with the government because of previous transgressions.

To learn more about insurance policies, or to report a suspected violation, you can contact your state’s Department of Insurance from the following list of phone numbers.

Alaska . . . . . . . . . . . . . 907-269-7900
Alabama . . . . . . . . . . . 334-241-4141
Arkansas . . . . . . . . . . . 501-371-2640
Arizona . . . . . . . . . . . 1-800-325-2548
California. . . . . . . . . . . 213-897-8921
Colorado . . . . . . . . . . . 303-894-7499
Connecticut . . . . . . . . . 860-297-3900
District of Columbia. . . 202-442-7790
Delaware. . . . . . . . . . . 302-674-7300
Florida . . . . . . . . . . . . . 850-413-3131
Georgia . . . . . . . . . . . . 404-656-2070
Guam . . . . . . . . . . . . . 671-635-1817
Hawaii . . . . . . . . . . . . . 808-586-2790
Iowa . . . . . . . . . . . . . . 515-281-6348
Idaho . . . . . . . . . . . . . . 208-334-4250
Illinois . . . . . . . . . . . . . 312-814-2427
Indiana . . . . . . . . . . . . 317-232-2395
Kansas . . . . . . . . . . . . 785-296-7829
Kentucky . . . . . . . . . . . 502-564-6034
Louisiana. . . . . . . . . . . 225-342-1226
Massachusetts . . . . . . 617-521-7777
Maryland . . . . . . . . . . . 410-468-2244
Maine . . . . . . . . . . . . . 207-624-8475
Michigan . . . . . . . . . . . 517-373-0220
Minnesota . . . . . . . . . . 651-296-2488
Missouri. . . . . . . . . . . . 573-751-2640
Mississippi. . . . . . . . . . 601-359-2453
Montana . . . . . . . . . . . 406-444-2040
North Carolina. . . . . . . 919-733-2032
North Dakota. . . . . . . . 701-328-2440
Nebraska. . . . . . . . . . . 402-471-2201
New Hampshire . . . . . 603-271-2261
New Jersey . . . . . . . . . 609-292-7272
New Mexico . . . . . . . . 505-827-4592
Nevada . . . . . . . . . . . . 775-687-4270
New York. . . . . . . . . . . 518-474-6600
Ohio . . . . . . . . . . . . . . 614-644-2673
Oklahoma . . . . . . . . . . 405-521-2991
Oregon . . . . . . . . . . . . 503-947-7984
Pennsylvania. . . . . . . . 717-787-2317
Puerto Rico . . . . . . . . . 787-722-8686
Rhode Island. . . . . . . . 401-222-2223
South Carolina . . . . . . 803-737-6180
South Dakota . . . . . . . 605-773-3563
Tennessee. . . . . . . . . . 615-741-2218
Texas. . . . . . . . . . . . . . 512-463-6500
Utah . . . . . . . . . . . . . . 801-538-3805
Virginia . . . . . . . . . . . . 804-371-9691
Virgin Islands . . . . . . . 340-774-7166
Vermont. . . . . . . . . . . . 802-828-3301
Washington . . . . . . . . . 360-725-7080
Wisconsin . . . . . . . . . . 608-266-0103
West Virginia . . . . . . . . 304-558-3386
Wyoming . . . . . . . . . . . 307-777-7402

When you welcome a new child into the world, the last thing you want to think about is the possibility that your new baby may suffer an untimely death. That’s why juvenile life insurance is a turn off to many people, and understandably so. But if you consider the policy as an investment in your child’s future, rather than a stopgap in case he or she passes away unexpectedly, you may reevaluate this potentially solid source of revenue for future needs.

Purchasing a juvenile life insurance policy is a good idea for two simple reasons: you’ll be able to lock in an extremely cheap premium early, meaning that later on in life your child can take over the policy and pay less for it than he or she would have to if your child had bought a new policy; and the policy can be used as a savings vehicle because most whole life policies allow you to build tax-deferred savings. (Cash value is essentially the money over the premium that you pile into a life insurance policy. Over time it grows and can be borrowed against or withdrawn.)

A great thing about building up cash for college this way is that this money will not be counted in financial aid assessments done by colleges and the federal government. This means your child will be eligible for a broader range of scholarship opportunities, but will still have substantial savings as well.

There is a certain amount of debate concerning the efficacy of juvenile life insurance policies as an investment and savings tool for children. Some financial planners argue that while juvenile life insurance may be an attractive investment to some, there are actually some better ways to save money for your child’s future. These investment opportunities include:

• A 529 savings plan is a means of saving for your child’s education that is run by state government or a specific education institution. The plan’s purpose is to help families save funds for their children’s college education.  There are two basic types of 529 savings plans, a regular savings plan that allows parents to pump money into mutual funds or other investments, and a prepaid tuition plan which allows parents to pay for your child’s future education at current tuition rates. The pre-paid plan is a good option because tuition are steadily increasing throughout the country each year. In some states costs have increased by double digit margins in just a few years. By locking in educational costs now and paying them off in just a few short years, you can save a considerable amount of money later.   529 savings plans are tax-deferred at the federal level, meaning you won’t have to pay taxes on revenue generated by the investments until it’s time for you to take them out and use them. Many state governments also grant exemptions from state taxes for 529 plan money. Another benefit of a 529 plan is that you can make substantial contributions to them. In many states, parents can contribute up to $300,000 to a 529 plan.
• A Roth IRA is commonly associated with retirement savings, but they can also be used to save money for college. One of the main benefits of the Roth IRA is that it is extremely versatile and can be applied to many needs, so long as the user is savvy concerning the tax regulations regarding the plans. A Roth IRA is a retirement savings plan that levies no taxes on withdrawals of contributions. This means you can pump money into the plan now, let it grow as the financial products that it’s invested in generate revenue, and then withdraw as much principal as you need later without incurring a tax penalty. So basically, the money you’re saving for your kid’s college can earn you some retirement income, thus allowing you to kill two birds with one fund. Even if you do have to dip into the Roth IRA’s earnings, disbursements of earnings used for college costs of yourself, a child or a grandchild aren’t subject to a 10 percent withdrawal penalty that withdrawals of earnings for other purposes are.
• A Coverdell Education Savings account allows parents to save for the education of their children in a tax deferred account. Withdrawals from the account are not taxable so long as they are used to pay for qualified education expenses such as tuition, books, fees or qualified expenses for room and board.

Before deciding on whether a juvenile life insurance policy or another investment vehicle is the best way to save and plan for your child’s college education, you may want to consult with a financial planner. He or she has extensive knowledge of these and other college savings financial products and can help you choose the one that best suits your ability and needs.

If you have a pre-existing health condition, finding life insurance coverage at an affordable rate can be a challenge. There are companies that specialize in providing high risk coverage to insureds with pre-existing health conditions, but this coverage often comes at a heavy cost.

Life insurance is essentially a bet between you and an insurance company that you won’t die before the term of the policy expires or the premiums you paid the insurance company, plus the investment revenue they produce exceed the value of the benefits. To hedge their bets, insurers charge higher premiums or deny coverage to potential clients with a history of health problems or conditions.

Life insurance companies go to great pains to make the best coverage decisions for their bottom line as possible, paying actuaries to determine probability of mortality and physicians to conduct health exams of potential clients. All of this is done to determine as exactly as possible how much of risk each potential insured poses to the company.

If you’re determined to have pre-existing conditions that are likely to raise your premiums or possibly disqualify you from college, it becomes imperative for you to shop around if you wish to purchase life insurance to provide for the financial security of your family after you are gone. There are options available for customers with pre-existing conditions, provided that they are willing to dilligently search for appropriate insurance products.

The first step in finding life insurance coverage at a reasonable price if you have a pre-existing health condition is to use an insurance agent who has experience in finding coverage for clients who are considered “impaired risks.” These agents, by virtue of experience, know which insurance companies place the lowest priority on your specifc pre-existing condition and will charge the lowest premium for it. They’ll also be able to present your individual circumstances to prospective insurers in the best possible light.

Prior to applying for life insurance coverage, you’ll need to collect all documentation of your pre-existing health and medical conditions. It’s important to fully and accurately tell your insurer about the illnesses or disorders that you may suffer from and also inform them of what medications, therapies or treatments you may be taking for the problem. You’ll need to be as complete as possible, to the point of informing your potential insurer of the specific dosages you’re taking as well as being able to name all the doctors and physicians you’ve seen in the past decade. It’s a good idea to make several copies of this information once you gather it all, and place at least one copy in a secure location.

It’s also important to create a health summary, which lists your positive health habits as well as any illnesses or injuries you may have suffered. For example, if you’re a non-drinker or non-smoker, you’ll probably want to list this on the summary. Any exercise or fitness program you may participate in should also be listed. With regard to your illnesses, you don’t need to list the ones from which you’ve been cured, but if you’re currently in remission of an illness, you’ll need to list that. Also you’ll probably want to list any accidents you’ve been in since you were an adult, especially ones that led to permanent damage or the need for a permanent enhancement, such as metal screws or a steel plate.

When you’re looking for life insurance and you have a pre-existing condition, it’s best to apply to new insurance companies. Newer companies are more likely to be willing to take a chance on you than older, more established insurers and will also be more likely to give you a competitive rate.

When you do find an insurer that you like, you’ll probably be expected to submit to a medical exam. Avoid strenuous activity, get plenty of sleep and avoid caffeine for at least 24 hours prior to the exam, because lack of sleep or stress can exacerbate existing health conditions.

Finally, as a last resort for some customers may be a guaranteed issue individual life insurance policy. These policies are issued without an medical examination or questionnaire. These policies should not be mistaken by customers with other policies known as simplified issue or quick issue policies, which don’t require a medical examination, but do involve the potential insured having to answer questions about his or her medical history. These products are often marketed toward elderly customers and only provide a small amount of coverage, usually between $15,000 and $20,000. These products often come with higher than usual quarterly or semi-annual payments.

Life insurance, like all financial assets, is worth reviewing every once in a while in order to ascertain whether you’re getting the best value for your dollar. Our world is in a constant state of change, and insurance policies, like all other things are also subject to the rising and receding tides of fortune and fate. Although few investments in life seem as solid and as permanent as a life insurance policy, the truth is that changes can often occur in the issuing company’s own financial health.

Because of the potential for change, it may be worthwhile at some point to consider replacing your in-force life insurance policy. The conventional wisdom is that replacing an in-force policy usually isn’t in the policyholder’s best interests, but depending on individual circumstances, the conventional wisdom can be wrong.

Replacement is defined as the discontinuance of an existing life insurance policy in order to begin a new insurance policy. Each state has a different legal definition of replacement, and it should be noted that replacement is different than “twisting,” that is, replacing an insurance policy primarily to benefit the insurance agent through proceeds from the new policy sale.

There are a number of pros and cons weighing in and against replacing an existing policy with a new one, and we’ll examine both sides of the issue.

One of the primary benefits of replacing an insurance policy is that you may be able to get a lower premium price or more benefits because of changes in your insurability or general health. For example, at the time you purchased your existing life insurance policy, you may have been employed in a high risk occupation such as a firefighter or police officer, but have since moved on to a safer profession such as teaching or accounting. This change may induce another insurer to offer you a lower premium or make you eligible for a higher level of coverage. The same holds true for changed health circumstances. At the time you were insured, you may have had an illness that caused the insurer to charge you a higher premium. Since then you may have been cured of the illness and thus deserve a lower premium. Or, at the time that your policy was issued, you may have been a smoker, but since then have kicked the habit, thus entitling you to a lower premium.

Changed life circumstances may also necessitate a replacement of a life insurance policy, such as when a former spouse or business partner make a claim of ownership of your policy.

On the other hand, there are quite a few factors arguing against the replacement of a life insurance policy. If you purchase a new policy, you’ll have to start over with a new suicide clause and contestability period. You’ll likely have to undergo another medical examination if you purchase a new policy, and there’s a chance that you may have a health condition that you’re currently unaware of that could result in you being denied coverage or paying a higher premium. Your existing policy may have favorable provisions for policy loans that you may not be able to replicate in a new policy. Also, there may be surrender charges with the old policy or new commission fees that you must pay with the new one.

When considering replacing an insurance policy, you should also think about the investment component of your existing policy. How much cash value do you have built up in the policy? Does this cash value become subject to taxation or forfeiture if you discontinue the existing policy? Do you currently have a policy loan out? Will you have to repay it immediately if you discontinue the policy. These are all important questions that you need to answer before deciding to make a policy replacement.

On balance, replacing an insurance policy probably isn’t advisable for most people. However, if you can identify a substantial benefit in changing policies, or if you have doubts about the financial condition of your insurer, replacing an insurance policy can be a good idea.

Replacing a policy is a big step, and one you should undertake only after evaluating all the benefits and disadvantages of such a move. Consult with your insurance agent and financial planner before considering such an undertaking to take advantage of their expert advice.

Each life insurance company follows a different set of policies and procedures when underwriting a policy. Your health is a big part of this process, but understand that one company may charge much more or much less for a specific health condition that you may have. The keys to finding the best rate is to understand your prospective insurers underwriting policies, to shop around and to be prepared for any physical exam your insurer may require.

By being upfront and above board with your agent prior to the underwriting process, your agent can select a company best suited to offer a good premium for any existing health conditions you may have. Each individual insurer sets its own priorities regarding existing health conditions, and some will charge you more for a certain condition than others. By being honest with your agent from step one, you can help him or her steer you to the company that will offer you the most competitive price. Remember that in most cases, your agent is an independent operator, meaning that he or she isn’t an employee of any particular insurance company. This means he or she is free to shop around and find the best possible insurer for you.

Going into an insurance medical exam, you should remember that the medical professional’s job in that examination is to ascertain how much of a risk you pose to the insurance company, and to determine what premium you should pay to cover the risk.

In most medical exams for life insurance, the exam is done in your home or office by a paramedical professional. When you go in for the medical exam, you can expect to answer lots of questions about your medical history and your family medical history. You’ll also undergo a series of tests. Doctors will check your weight and height. They’ll test your blood pressure. They’ll also take blood by finger prick or needle to do laboratory analysis for things like HIV, hepatitis, diabetes, immunodeficiencies or other diseases. You’ll also be subjected to a urinalysis to check for illegal drug use or tobacco use.

Depending on how old you are and how much coverage you’re trying to buy, the exam may cover other areas. For example folks over the age of 50 seeking to purchase $1 million in coverage can expect to have to undergo an EKG and get tested by a doctor instead of a paramedical professional. As the age of the insured and the policy amounts get higher, the insurer may also order a treadmill test as well.

Some low face value policies don’t require a medical exam at all. For example, if you’re under 40 and you’re only seeking a $50,000 policy, chances are you won’t have to submit to an exam.

You don’t need to go on a crash diet or emergency workout routine before a medical exam for your insurer. Chances are that if you have lifelong bad habits, a week of doing pilates isn’t going to make much of a difference. Besides, insurers aren’t looking for Olympians, they’re just trying to insure average folks. There are a few things you can do to make your medical exam easier, and curb some potentially premium-raising physical reactions.

For starters, get a good night’s sleep before the exam. Being tired can exacerbate any health conditions you might have, and thus potentially raise some red flags with the insurer’s physician.

Keeping your blood pressure low is also important. Hypertension, or high blood pressure, can be a contributing factor to a higher insurance premium. By doing things to keep your blood pressure in check, such as refraining from smoking, avoiding salty foods and abstaining from alcohol, you can keep your blood pressure low.

Stay calm. Avoid coffee and other stimulants because it can lead to an abnormal looking EKG. Staying calm is perhaps the best overall advice for folks about to undergo a life insurance medical exam. Stress can exacerbate health conditions.

Avoid strenuous physical activity for about a day before the exam.

Information gathered from a insurance exam is entered into a national database, so it’s rather pointless to schedule another exam for another company if you don’t get favorable results from your current exam.

It is possible to buy high risk life insurance policies that don’t require medical exams, but in most cases it is more beneficial to undergo the medical exam and find out how much your premium is going to be.

Purchasing life insurance is a sensible, prudent method of securing the financial integrity of your family or business in the event of your untimely passing. Buying life insurance is like any other business deal — you want to buy the policy that best fits your individual needs at the best possible price. Accomplishing this goal necessitates finding a knowledgeable, competent agent who you trust to have the client’s best interests at heart when evaluating available policies.

When selecting an insurance agent, you should do your due diligence and carefully gather all the information you can about the person you are doing business with before committing to anything. Life insurance is a complex financial product, and represents a multi-year investment, so having someone you can trust to advise you is important. All too often, folks have purchased products that later did not pay out the benefits they thought their families would receive, or that had hidden costs or fees based on the advice of agents more concerned about their commission or fees than the well-being of their customers.

A good jumping off point for researching your insurance agent is your state government. Each state in the union has a department of insurance which regulates the insurance industry. While some states have more aggressive departments of insurance than others (with California being one of the best-regulated markets), each should have a Web site where you can research whether or not your potential agent is licensed. Your agent must be licensed in the state that he or she is selling insurance in, so if the agent you’re considering is not, you can automatically rule him or her out. Also, most state insurance department Web sites list information about each agent’s education in the field. The more effort the agent has put into gaining and maintaining his or her professional credentials, the more likely it is that he or she is a competent and ethical agent.

In addition to state departments of insurance, some insurance agents are also regulated by the National Association of Securities Dealers. The NASD Web site, www.nasdr.com, also lists whether an agent is licensed to sell insurance in his or her state. The site also has valuable information regarding the employment and educational history of nearly 500,000 registered securities professionals.

When considering an insurance agent, you should consider his or her employment history, the agent’s experience as a life insurance advisor, how much life insurance business the agent’s firm does, and whether the agent’s firm has the Chartered Life Underwriter designation. A Chartered Life Underwriter designation shows that the holder is qualified to dispense financial advice in a number of areas, including life insurance. Because most agents these days are involved in estate and financial planning too, hiring an agent with the Chartered Life Underwriter designation can give you access to a professional who can guide you through a variety of steps you can take to ensure the financial security of your family or business in the event of your untimely passing. To get this designation, the agent must take five core courses and three electives and pass two 100 question exams.

So, in sum, you should look for the following when picking a life insurance agent:

• Licensure
• Education and employment history.
• Chartered Life Underwriter credentials

The life insurance agent throughout modern history has been a much-maligned figure. In cinema and on television, insurance agents have often been portrayed as shifty, unscrupulous charlatans and frauds. In fact, for a time, insurance salesmen ranked near the bottom of professionals in consumer confidence surveys. Like any group of people, a few bad apples can spoil the barrel, and the unethical conduct of a very few insurance professionals in the past have given the industry a black eye.

Things have changed, however. Today’s insurance professionals are, with few exceptions, extremely ethical and reliable. The industry, and government, have done much in recent years to enforce ethical behavior among insurance agents and other professionals. Also, the changing nature of the industry has led to a more professionalized sales force.

The improved regulation of the industry has not removed the customers’ duty to do their due diligence in examining and evaluating potential insurance agents. Folks looking for life insurance should carefully research their potential agent’s professional credentials before buying a policy to ensure that the agent is their best representative in one of life’s most important financial decisions.