Even Betty White is getting in on the action. The 90-year-old actress and recent SAG Award winner for the “Best Female Actor in a TV Comedy Series” appeared in a YouTube video about this concept. The video has received more than one million hits. “It’s the hottest program for spicing your golden years,” says White.

International Communications Research conducted a survey on the subject and found that 79 percent of people felt that life settlements was something insurance professionals and financial planners should be telling their clients about. More than half say they’re worried they’ll have to keep working after the age of 65. “Many people didn’t know selling their life insurance policy was even an option; however, boomers are demanding more education from their financial advisers, said Wm. Scott Page, president and CEO of The Lifeline Program. A recent Associated Press report found that 44 percent of baby boomers lacked confidence in being able to retire.

Life Settlement An Increasingly Common Way To Pay For Retirement is a post from: Peppercoin Insurance

Once you do decide on a policy, it’s important to put the paperwork in a place where your loved ones can access it easily. “Consumers need to be familiar with their life insurance policies so they don’t overlook important features that could be critical to their livelihoods,” says Jeff Koll, assistant vice president of product development for Colonial Life & Accident Insurance Company.  ”Make sure you have a copy of your policy, that you know where you keep it and that someone else in the family also knows where you keep it.  You can always request a copy of your policy from your insurance company if you need it.  In addition, evaluate your insurance coverage from time to time to make sure it’s appropriate for your stage in life.” To help you in your decision Colonial Life created this list of commonly overlooked aspects of life insurance.

1. Waiver of premium.  This feature pays the premium of a policy if you become seriously ill or disabled and can’t afford the payments.
2. Accelerated death benefit. This feature allows you to receive cash advances against the death benefit of your policy if you’re diagnosed with a terminal illness. This can be a great feature to help pay for medical treatment and other expenses when they have only a short time to live.
3. Guaranteed purchase option. With this feature, you can purchase coverage at designated future dates or life events without proving you’re in good health.
4. Long-term care riders.  Some life products include this option, which allows you to use the benefits of your policy to pay for long-term care. But using that option means you will not receive your full life benefit when you pass.
5. Spouse or child term riders.  Life policies with this feature allow you to purchase term life insurance for your spouse or dependent child, up to age 26.  If you can’t afford separate policies this can be more affordable.
6. Cash value plans. This type of policy pays out upon your death and also accumulates value during your lifetime. It adds an investment element to your life insurance.
7. Mortgage protection.  This feature, typically found on term life policies, will pay your mortgage if you die.
8. Cash withdrawals and loans.  Many universal and whole life policies allow you to withdraw or borrow money, using the cash value of the policy as collateral. Interest rates tend to be relatively low.  You can also use the cash value of your life policy to pay your premiums if you need or want to stop paying premiums for a period of time.  You must pay back the loan or your beneficiaries will receive a reduced death benefit.
9. Survivor support services. Some life policies offer services that provide objective financial and legal assistance to beneficiaries.
10. Employee assistance programs. This feature makes resources available to you for problems that can affect your personal and professional life.  Resources are usually free and help address issues such as substance abuse, stress, marital problems, legal concerns and major life events.

Life Insurance Lingo: Ten Things You Need To Know is a post from: Peppercoin Insurance

The goal of this new study is to help close the insurance coverage gap. Many people want to do the right thing when it comes to life insurance, but some struggle with who to trust or where to get solid information. Around 40% of consumers don’t think they have enough life insurance to meet their family’s long-term needs. “While the industry has done an excellent job of offering products that meet the consumer needs, we now have the deep insight needed to bridge the coverage gap and bring consumers to the table – creating a more effective way of doing business,” said Anthony Vossenberg, senior vice president, Life and Annuities at Genworth in a news release. “This study provides advisors and agents with insights needed to educate consumers about their insurance needs and motivate them to secure their financial futures.”

Many times when a couple gets married or has a child they’ll take the time to evaluate their insurance coverage. But this study shows that the time between that major life event and the actual purchase of the insurance can vary drastically. Experts hope to reduce the time frame between those big life changes and matching up the insurance coverage to the new needs.

Study: Life Insurance Coverage At Lowest Point In Five Decades is a post from: Peppercoin Insurance

Now more than one in four prefer this method. “‘Obviously, the Internet has fundamentally changed consumers’ buying practices over the past 15 years,” said Marvin H. Feldman, CLU, ChFC, RFC, president and CEO of the LIFE Foundation in a news release. “Recognizing the growing consumer interest to use the Internet to conduct research and buy life insurance, life insurance companies and agents have developed and implemented innovative strategies to engage and serve consumers through their websites and social media platforms that are more convenient for the customer.”

The study found that younger consumers have the most interest in making life insurance purchases directly from the company. Roughly one in three in the 25-44 age bracket say they would prefer to buy direct, with most saying the Internet was their vehicle of choice. This information was recently released in a new LIFE Foundation/LIMRA study called “The 2011 Insurance Barometer Study.” But no matter how they purchase it, most people agree that life insurance is a necessity, with 86% saying that most people need it.

Growing Number Buying Life Insurance Without Professional Help is a post from: Peppercoin Insurance

Medical expenses due to terminal illness: According to Life Quotes, Inc, if you are battling a terminal illness you can take a portion of the death benefits to fund medical expenses involving treatment and care. This means your family will be stuck with less of a bill after you pass.

Children from a former marriage: Insurance proceeds can be used to pay for expenses involving any children left behind. It’s important to purchase enough insurance to care for your youngest child, a reason to reevaluate your coverage regularly. As your children grow your needs likely change.

Charitable donations: Your life insurance proceeds don’t have to go to a person– they can also be given to a cause. You can set up for your insurance money to go to a charity as the beneficiary.

Your business partner or long-term girlfriend or boyfriend: Your life insurance beneficiary doesn’t necessarily have to be a relative. You can also designate a business partner or long-term girlfriend or boyfriend as long as they meet certain criteria.

Ways To Designate Your Life Insurance Proceeds is a post from: Peppercoin Insurance

Families with the greatest need for coverage are typically viewed as those with children under the age of 18, and right now 11 million of those households are without life insurance protection. Premiums actually cost much less now than they did ten years ago. According to statistics from ING, a $500,000 20-year term policy costs about $25 a month.

There are several reasons experts say explain the drop in coverage including the recession, procrastination and fewer insurance agents. The cost is why 40% of families say they don’t have life insurance. But ironically, if the primary income earner in the family were to die, 40% say they would have trouble meeting expenses. Another reason is the lack of urgency that life insurance carries. It’s a voluntary purchase which is why many people delay buying it. “A lot of people really overlook the whole need (for insurance) until they have a health condition, and then life insurance prices are out of reach for them,” Amy Danise, editor of Insure.com, told USA Today.

A final explanation for the lack of life insurance is the reduction in insurance agents. About four out of five families don’t have a life insurance agent, according to the study. Statistics show that in 2010 there were 184,873 affiliated agents. Two decades ago that number was nearly a quarter of a million. Since the days of door-to-door salesmen are gone, Byron Udell of AccuQuote tells USA Today, “there’s less of it getting bought.”

Fewer American Households Purchasing Life Insurance is a post from: Peppercoin Insurance

According to the Wall Street Journal, extremely low interest rates are creating problems for insurance companies because it lowers their profitability. And since it looks like rates could remain low, life insurers are changing products they offer. They’re not able to provide the features they once could, and this includes long-term care insurance as well as retirement-income products. “MetLife remains committed to our current LTCI policyholders and certificateholders and will continue to ensure that they receive quality service, particularly when needed most — at time of claim,” Jodi Anatole, vice president, Long-Term Care Products, for MetLife said in a news release. “While this is a difficult decision, the financial challenges facing the LTCI industry in the current environment are well known.”

Those with long-term care insurance policies will likely face more premium rate increases. This type of insurance helps cover costs of in-home care or nursing home fees. The reason for the increases is due to the fact that many policyholders are living longer which means the claims they generate cost more.

MetLife To Stop Offering Long-Term Care Insurance is a post from: Peppercoin Insurance

Another 18 percent of companies polled say they’ve also seen a drop in the amount of money staff are willing to contribute to their pension. “We’re witnessing several concerning trends that would point to many employees currently taking a very short-term view of their financial situation,” Marketing Officer Marco Forato told The Press Association. “Although there’s no denying that a lot of people are struggling financially as a result of the recession, workers should only opt out of long-term financial benefits as a last resort. It is vital that employees instead seek to protect themselves and their dependants by having robust financial cover in place.”

Officials say that while the workers may be getting a slight cash boost, they could be laying the groundwork for future financial problems. Not only are they jeopardizing their retirement plans but if they become ill and can’t earn a salary, their dependents will also be in trouble. Research shows that roughly one in three British workers would only be able to survive less than a month on the statutory sick pay which equates to about $100 a week.

Many In UK Trading Insurance Benefits For Cash is a post from: Peppercoin Insurance

The case could eventually impact tens of thousands of soldiers’ beneficiaries who received payments. The Associated Press reported that company officials couldn’t address the current legislation, they say they are handling money properly. The suit deals with Alliance Accounts which are similar to checking accounts. Beneficiaries can write “checks” to receive some of the insurance money or they can get 36 equal payments each month. If they opted for the Alliance Account, beneficiaries received interest rates ranging from .5 to 1.5 percent. But the soldiers’ families say Prudential actually holds the money in a general account worth $2 billion and that the company earns five to six percent interest. Then they say the company keeps the difference.

Parents Of Deceased Soldiers Sue Over Handling Of Life Insurance is a post from: Peppercoin Insurance

Officials say that some insurance companies are telling families of late military personnel that they’re putting life insurance policy money into an interest-bearing account. But what really happens, according to some officials, is that the insurance company is benefiting from most of the interested earned– some times taking as much as 4.8 percent while the families receive just .5 percent of the interest. Another issue Cuomo is raising is that the insurance money is being put in banks that are not insured by the Federal Deposit Insurance Corporation, or FDIC. “It is shocking and just plain wrong for these multi-national life insurance companies to pocket hundreds of millions in profits that really belong to those who have lost family members and have already suffered immensely,” Cuomo told CNN.

Officials say the accounts being targeted in the investigation include Prudential’s Alliance Account and MetLife’s Total Control Account. However, the attorney general’s office says they’re looking into the entire life insurance industry. According to CNN, Prudential’s Chairman and CEO John Stangfield released a written statement saying, “It is important that the beneficiaries of our fallen service men and women are treated with dignity and respect during a very difficult time. Given the questions raised over the life insurance program we administer for the Department of Veteran Affairs, we welcome an opportunity to address the concerns and to set the record straight.” Stangfield denied doing anything wrong. “Prudential does not in any way take money from beneficiaries,” the company said according to CNN.

MetLife also commented. According to CNN the company’s spokesman John Calagna released a written statement saying, “However we strongly disagree with many misleading statements in recent media reports and want to be clear regarding several important features of MetLife’s Total Control Account (‘TCA’). Our materials carefully explain the TCA to our customers so that they understand that they can use their checkbooks to withdraw all of their benefits immediately or over time as they choose,” Calagna told CNN. “They have full access to their funds and earn a guaranteed minimum interest rate that exceeds what they could earn on most money market accounts.”

Secretary of Defense Robert Gates told CNN he had no idea many military families were being treated this way. “Until today, I actually believed that the families of our fallen heroes got a check for the full amount of their benefit,” Gates told CNN during a Pentagon briefing. “So this came as news to me. And so I will just say I will be very interested in the outcome of an investigation.

Investigation Looks Into Life Insurance Policies Of Fallen Military is a post from: Peppercoin Insurance