Real Estate News

Happy New Year,
Make it a better world. “Pay it Forward” as in the movie. If you haven’t seen it, do!

Welcome,

Basically, almost everyone wants to buy a house and honestly everyone of legal age and competent mind can if they have the will and knowledge. Sure you can buy all the get rich schemes on the web and off the high intensity infomercials but do they really work for everyone? Or do most of them end up on a shelf? Check Ebay when you get done here. It is unbelievable that people pay hundreds of dollars for these so called courses with dreams of making fortunes and then auction them off for 30-40 dollars. That was a terrible investment. They would have fared much better by taking legitimate courses or at least not spending their money.

You may ask, how does one buy a house without money and good or any credit? No joking around Donald Trump does it every time, using other people’s money. If you try hard enough you can find someone to sell you their property with owner financing. You just make arrangements with them for the sale price, the interest rate and term. You and they may prefer a short term loan, say ballooning it in five years. This means you make the regular payments for 60 months. This should be adequate time to get stable income and credit, even if you have filed bankruptcy. Of course there are many more ways of acquiring real estate.

Would you consider selling your own property, or does it scare you to death. It really isn’t that big a deal or a lot of dumb agents wouldn’t be doing so well. Do I sound disgusted with some agents? I am. As an appraiser and broker I have seen a lot of corruption and it enrages me. That’s one reason we decided to do this. But, if you are working with an agent, hopefully you spent some time selecting a good one with an impeccable record. In today’s market contracts are received within minutes of placing a sign in the yard. Contracts are available on-line, at the office stores and in the library. The average real estate sales commission is 6%, which most people don’t know is negotiable. By law there is not supposed to be a set amount across the board. Many times companies offer lower commissions and then some agents won’t show the property and are even bold enough to say so. They will show new construction which is typically 5% but nothing else.

If you choose to sell your property here are some starter points. Make it look good from the street. Decisions begin right there. Many times a purchaser will take one look and say no. Make your schedule very flexible so when they want to see it they can, or they’ll move on. Clean the clutter and dust. Have some coffee brewing or some bread baking. Let the people freely browse the house with you. Don’t lead them. Many times your familiarity with the house causes you to just rush through, but they need time!

Suzie is a licensed real estate broker and certified residential appraiser with 20 years of experience who hopes to improve the industry one step at a time.

http://www.freewebs.com/realestatenews/.

[tags]trump, house, home, real estate, insurance, mortgage, buy, sell, fsbo, money, government owned, gov[/tags]

The Top Ten Things You Need To Know About Homeowners Insurance

1. Buy the right insurance for you. “You should know what you have, and you should know ahead of time that you are covered,” says Jeanne Salvatore, vice president for consumer affairs with the Insurance Information Institute, a nonprofit industry trade group. She recommends looking at your insurance coverage in four key areas: the structure of your house, your belongings, your liability to others and your living expenses if you’re forced out. “If there’s a disaster, you want to be able to rebuild your house and replace everything in it. And you need enough liability coverage to protect you in case you do get sued.” Living expenses would cover the cost of making the house livable or living elsewhere while your home is being repaired or rebuilt.

2. Get replacement value insurance. Face it, this is an insurance policy, not a garage sale. You don’t really care how much your possessions would fetch on the open market, the so-called “cash value” or “fair market value.” You want to be able to replace everything you lost with similar, new items. And make sure that your policy spells out that both your home and its contents are covered by replacement-value insurance.

When it comes to replacing the house itself, look for extended or guaranteed-replacement-value coverage. Guaranteed replacement, which covers rebuilding no matter what the cost, is not offered much any more, says Don Griffin, assistant vice president of commercial lines for the Property Casualty Insurers Association of America (PCI). Many companies offer extended-replacement-value insurance, which will cover up to 100 percent of the value of the home, plus a certain percentage to cover rebuilding the home in today’s market.

3. Understand the claims process thoroughly. Two policies can promise the same amount of coverage, but they can be vastly different when it comes to covering you and your family after a loss. Have your insurance agent explain exactly how claims are handled, especially when it comes to writing you a check. Do you receive your entire claim upfront, or just a fraction? Does the company pay you for all the things you’ve lost, or only those things that you replace?

Some policies will give you the cash value of your possessions right after a loss, but wait to cover the replacement value until after you’ve replaced your items — and have the receipts to prove it. This could be a problem if you’re wiped out and have no cash reserves.

Equally important is the timetable on replacement. If you go from living in a five-bedroom home to sleeping in a motel room with four kids and a dog, you might not want to go on a shopping spree right away. How long do you have to replace your things?

4. Take a thorough and accurate inventory. Filing a claim involves two steps — proving you owned certain items and verifying their worth. This is a lot easier to do when you still have your things. Go through your entire home with a video camera (rent one if you don’t already have one.) Walk through each room, do a quick sweep and get everything you own on tape. Don’t forget the attic, basement, closets and offsite storage locker, if you have one. Or take the low-tech method: make a list and shoot a few rolls of film. Stash your video or photos in a safety deposit box with a copy of your policy. If you keep your inventory at home, make a second copy to give to a friend or keep at the office.

5. Buy floaters. Many times, homeowners insurance and renter’s insurance policies limit the amount you can collect on some big-ticket items — usually things like computer equipment, jewelry, furs and fine collectibles — to a fraction of the replacement value. If this is the case, you need to pick up a special policy known as a “floater” or “endorsement” for each of those items. A floater will also reimburse you if you simply lose the article. In the case of something new, save the bill of sale with your inventory, and fax a copy to your insurance agent. If the item is older, have an appraisal done. Again, save one copy and send another to your agent. That way, you’ll never have to worry about proving you owned an item, and there will never be a dispute over what it’s really worth.

6. Keep pace with inflation. This is especially important with a homeowners insurance policy. It may have cost you $100,000 to build your home 10 years ago, but it might cost $120,000 to replace it today. “Many insurance companies have inflation guard, which covers the increasing cost of rebuilding,” Salvatore says. When your policy comes up for renewal, talk to your agent to verify that your coverage amounts are still realistic. And when you make an improvement, add it to the total.

7. If you own a condo or co-op, protect your property. Make sure that the condo board or association has a policy that covers the common areas, and get a copy. Also look at the association bylaws to find out what portions of the home you must cover. “It’s usually from the drywall in,” Griffin says.

Since condo owners need their contents policy to cover things like cabinets and fixtures, they need a bit more insurance than the typical renter. Sometimes you get a price break if you go with the same company that wrote the policy for the condo association.

“Plus they are familiar with what they cover, so they know what to sell you,” Griffin says.

You also may want to consider assessment coverage. If the condo association’s policy is not large enough to cover a loss, or if there is a hefty deductible, the association will split the additional costs among the members in the form of an assessment. With assessment coverage, your insurance company pays the tab.

8. Consider flood and earthquake insurance. Granted, this is not for everyone. But if you live in an area prone to floods or earthquakes, it pays to know that most property policies do not cover these disasters. Some independent carriers offer both. For flood insurance, you can also contact the National Flood Insurance Program. In California, you can get earthquake insurance through the California Earthquake Authority.

9. Think about buying an umbrella policy. Liability insurance, which picks up the tab if someone gets hurt on your property or through the actions of your family members, tops out at $300,000 on most homeowners insurance policies, according to Griffin. “But nobody sues for $300,000,” he says. “That usually starts at $1 million.” His recommendation: if you have assets, pick up an umbrella policy that would add extra liability coverage to your home and auto policy. “Umbrellas are cheap — usually starting at about $200 to $350 a year.”

10. After a life-changing event, call your agent. Getting married or divorced? Are the kids moving out — or back in? The amount of insurance you need — and the items you want to cover — change over the years. Be sure you keep your policies and inventories up to date.

Matt McWilliams is one of the co-founders of HometownQuotes.Com, an online insurance quotes web site. He is originally from Pinebluff, NC and attended Middle Tennessee State University. He is considered an expert in the field of online insurance shopping and finding new ways to help consumers save money on their insurance. For more information visit http://www.hometownquotes.com

[tags]insurance quotes, home owners insurance, homeowners insurance[/tags]

California Life Insurance Quote

With this simple to follow guide, finding a California life insurance quote will be no problem at all. Many people do not know where to go to find a California insurance quote. This article will teach you the steps needed to properly find, and fill out a form to see your free quotes.

1. You need to find a reputable website that will not only give you a free California life insurance quote, but multiple free quotes. This will give you the advantage of being able to choose which company in California, you want to go with.

2. Your quote is based upon the information you provide, so please be as accurate as possible. Upon finding a reputable site for your search, you simply need to fill in your name and zip code.

3. Any good insurance program, will find a good list of results for you to pick from. These results will be displayed on screen and you simply choose which company you would like to go with. It really is that easy to find your quote.

4. Within minutes, you will be well on your way to having one of the best California life insurance plans around. I wish you good luck and for more information visit the link below.

For more information: California Life Insurance Quote

[tags]California Life Insurance Quote, California Life Insurance, California life insurance plans[/tags]

The Awful Truth about Annuity and Insurance Leads

You see the websites, you see the ads: exclusive, never before sold, prospects eager to buy, insurance and annuity Leads. Some leads cost a few dollars - others are over one-hundred a pop.

I was curious, just how good are these insurance and annuity leads? I decided to find out.

I’m not going to name specific insurance and annuity lead websites, but I will give you a summary of how it all shook out.

Insurance and Annuity Lead Website A:

Cost: Cheap

Results: Terrible. 10% of the leads my staff called got number no longer in service recordings. The rest: the people had no idea what we were talking about. They were not interested in annuities, insurance or investments, nor did they remember filling out a request for information form on the internet.

Sales: 0

Insurance and Annuity Lead Website B:

Cost: Average

Results: Terrible. Prospects didn’t recall filling out request for information on anything related to annuities, insurance or financial planning. Most just hung-up.

Sales: 0

Insurance and Annuity Leads Website C:

Cost: Expensive

Results: About twenty percent remembered filling out a request for info. However, they had been called numerous times by different agents. Most were getting sick and tired of the calls. A few had begun working with other agents. Most hung-up angrily.

Sales: 0

I spent two-thousand dollars on this experiment. I did not find one-receptive buyer. I had thrown away my money, not to mention time spent by my phoning staff to contact these “hot prospects”.

What the heck was going on? How could these websites sell such garbage?

I poked around, wrote a few e-mails to ‘industry experts’, not surprisingly, nobody got back to me. Luckily, I did end up making contact with a marketing person who had previously worked for a big lead selling outfit. She gave me the juicy details of how the majority of these lead companies operate, whether it is insurance leads, long-term care leads, annuity leads, or MLM/Work-from-Home leads. They all employ the same methods.

Method #1: You send cute E-card to your mother wishing her a happy birthday. You fill out name, e-mail and click send. Your name and e-mail are captured. If the site is a lead harvester masquerading as an e-card site, you will now be e-mailed by people looking to sell you annuities, business opportunity offers, etc.

Method #2: Leads site buys huge database, often just regional phone book listings. They sell these ‘leads’, which are nothing more than names and numbers picked from the phonebook. Some of these people may even be on the Do Not Call list, which could land you in hot water.

Method #3: Harvesting leads from search engines. Often these leads are quality, but are expensive to capture, so the leads companies will sell the leads over and over. By the time you buy the lead, it could have been sold twenty times. Sometimes you’re the first to buy and you will find some quality prospects, more often you’re not.

Method #4: Internet robots crawl web sites hunting for e-mail addresses associated with insurance and annuity content. Somebody might be inquiring about annuities on a newsgroup or forum, next thing they know they’re getting offers from annuity companies. The Annuity Lead companies don’t let you in on how they’ve harvested the leads. It’s called spam and you could get in serious trouble for contacting these people unsolicited.

My contact did say there are decent leads sites. She said to check their policy to see if they guarantee the leads. Keep in mind, just because they have a guarantee doesn’t mean you’ll get your money back if the leads fail to produce results. But often sites with some kind of guarantee are sites that harvest only quality leads and only sell them once.

If you’re still of the mind to try internet leads my advice is to try just a few. Don’t buy into a huge program that requires a minimum monthly or a large upfront purchase. Experiment a little with a cross-section of sites. Who knows, you may find one that’s legit that’ll help you make some money.

Bill Broich is the founder of The Broich Approach, an annuity selling and marketing system based in Olympia, Washington. You can find more information about him and his system at: http://www.broichapproach.com

[tags]annuity, leads, insurance, lead[/tags]

Market Value vs Replacement Cost What Is The Difference

For those who have ever purchased a home, which requires Homeowners insurance, you may recognize that there is a difference between the amount you paid for the home and the actual amount of your basic coverage for the home, without belongings.

This is simply because you paid market value for your home while the insurance company used replacement cost value to estimate what the costs would be to rebuild your home. So what exactly is the difference between market value and replacement cost?

Market value is simply the price you paid for your home and most often insurance agencies do not give market value a second consideration because the real estate investment market can fluctuate so greatly.

If you look at a property in 2003 in your area, it may have sold for $100,000 but just three years later in 2006 it sold for $130,000. This has to do with the demand for homes in the area and the rising costs of real estate, but this doesn’t have anything to do with what the actual cost of rebuilding the home would be.

Homeowners insurance companies will always look at the cost of rebuilding the exact same home in the exact same location for a certain year. This is the definition of replacement cost. So, if you are purchasing homeowners insurance in an area where the market is through the roof and homeowners are paying triple or double the building value of the home, then your actual replacement cost and insurance coverage may be lower than the market value of the home.

If you live in an area where the market is not so great during that particular year, then what you paid for your home might be less than what the actual replacement cost of the home is for that year. This is essential to keep in mind when calling the insurance company, as many customers are confused or even upset at the differences in price that insurance companies want to charge for coverage.

Keep in mind when receiving estimations from the insurance company that many may give you replacement value insurance coverage costs as well as market value insurance coverage costs, but it is always best to take the replacement value insurance coverage since this is what will be needed to replace your home in the long run. You also want to remember that land value should not be included in the replacement cost assessment, so don’t let an insurance agent suggest otherwise.

Before speaking with an insurance agent, be sure to properly document the square footage of your home and each room, any special amenities that the home has including wood floors, marble or granite countertops, porches, decks or sunrooms, and basements.

The insurance company will also want to know major appliances that come with the purchase of the home, as well as the basics of the plumbing system, electrical systems and air conditioning/heating units that are installed. This can help them to assess how much it will cost to replace these items during the current year of your Homeowners insurance policy, so you won’t be left out in the dark!

Credit: Ian W Anderson of homeownersinsurance.cc, the homeowners insurance information site. For more homeowners insurance information and articles like this one visit: Homeowners Insurance

[tags]homeowners insurance, home insurance, homeowners insurance quotes, market value, replacement cost[/tags]

Body, Mind, Spirit - The Key is What’s In-Between

If you have a health problem with your body, go to a doctor. With your mind, go see a psychologist. With your spirit, see your pastor, priest or rabbi.

What could be wrong with that?

Do you know when most heart attacks occur in American society? Mondays between 6am and 8am. Why is that? Well, of course, it’s because we wake up after our happy weekend and we think “Ugh, Work.” And that bothers some of us so much, we just die. Literally.

Is there a physical cause to this heart attack? Of course. Maybe the person was overweight, or maybe they had too much cholesterol in their blood. But why did they kick off on a Monday?

Most health problems have a mental aspect as well as physical. Remember Fred Sanford in Sanford and Son? Everytime his son would aggrevate him, he would fake having a heart attack. “I’m coming, Elizabeth!!” Obviously, he was just pretending, but it is true that an emotional event can bring on all kinds of physical problems.

So, what happens when you go to a doctor about your heart, or your elbow, or your sore throat? He can only inspect the physical. He doesn’t feel qualified to delve into the emotional, mental or even spiritual aspects of your problems. And yet, you know those things are there, and you know they’re contributing to your problem.

Your doctor might refer you to a psychologist if he suspects that your problem includes something mental, but that’s usually only after he’s exhausted all his “physical options.” It used to be doctors would say “Don’t worry, it’s all in your head.” Now that’s not considered very good manners. But what a strange thing to say! What disease isn’t at least partially in your head?

Cancer has been proven to be a problem with the immune system. If your immune system is operating at full power, it fights and beats the cancer cells before they have a chance. And it’s also proven that your immune system takes a dive whenever you feel bad emotionally.

Can you imagine? Depression could be linked to cancer?

Most doctors would not admit that. They say cancer is linked to genetics and possibly to diet. That’s it. Physical causes only.

But there’s so much more we can do.

For our example of a better approach, let’s look at Traditional Chinese Medicine. Chinese Medicine is a very interesting combination of therapies that address body, mind and spirit.

They also focus on the “in-between.” These therapies recognize, not only body, mind and spirit, but the intangible “something” that sits in-between each of these. They even have a word for it. They call it “chi.” This is a kind of life force that regulates all the parts of “you:” body, mind and spirit. If your chi is good, then your health is good.

Chinese therapies include acupuncture, where tiny needles are put into the skin in certain parts of the body. The focus? To improve chi. It also includes chi gong, which is a set of exercises and meditations to improve, you guessed it, chi. Chinese massage, tai chi, herbs, and many other therapies are all focused on the “in-between,” the “chi.”

Many ancient health systems have a similar concept to chi. With the medicine practiced in India, called ayurveda, there is a concept called “prana.” It means the same thing. It’s a life energy, and all Indian therapies focus on improving that life energy, bringing it up to full force so your body, mind and spirit can thrive.

In America, we tend to want medications that will mask over the symptoms of our problems, not those that go after the root cause. In fact, the top five selling pharmaceutical drugs were all symptom-fixers, including Lipitor, a cholesterol-reducing drug, and Zoloft, an anti-depressant. Does this really seem like the best way to combat illness? To throw a blanket over the problem so we can’t see it?

Next time you have a health problem, no matter how small, I’d like you to think about how it might be your “chi.” It might be a problem, not with your throat, or your butt or your head, but it might be something that a qualified Chinese medical doctor could help you with, and, in the process, help your overall health in every way.

Daryl Kulak is the author of Health Insurance Off the Grid, a book to help you be able to afford your holistic lifestyle.

[tags]holistic, health, healthcare, alternative medicine, complementary, integrative, energy, insurance[/tags]

The Importance of Title Insurance

Most property buyers understand that a title search is necessary to be sure they are receiving a marketable title at closing. However, there are some title problems, which cannot be discovered even through the most thorough title search.

There are hidden hazards, which are beyond the scope of a reasonable search of title records. These include such things as: forgeries, fraud, errors by the Clerk’s office in the recording of deeds, mechanics liens, defective foreclosures, faulty surveys, misinterpreted wills, conveyances by a minor or a mentally incompetent person, an undiscovered heir or ex-spouse who returns to claim interest, a deed delivered after the death of the property owner, and other issues.

A title insurance policy protects you from a loss, which would result from any of the title defects above, up to the policy amount.
A “Lender’s” title insurance policy provides protection to the lender up to the loan amount. In the event of a claim a title insurer covering a lender will cover that lender’s loss, acquire the note on the property and enforce payment of any remaining balance from the borrower.

An “Owner’s” title insurance policy protects the property owner’s real estate equity, which is the difference between the Lenders Title insurance policy amount and any liens or encumbrances on the property, which are specifically excepted in the policy.

The cost of an Owner’s policy is minimal when obtained at the same time as the Lender’s title policy because the title insurance company gives a “simultaneous issue rate.”

A homebuyer pays a one-time premium for Owners title insurance, and the Owners title insurance itself lasts as long as the purchaser or his/her heirs own the property. Lenders title insurance must be reissued when refinancing the mortgage.

Remember that a title insurance policy does not ensure that title problems will not occur, but it does protect you from loss resulting from title defects, which threaten your ownership up to the policy amount. Title insurance also pays legal fees involved with defending your rights. Although title losses occur infrequently, they can be very expensive and time-consuming when you are not properly insured.

Owner’s Title Insurance may not be included on your Good Faith Estimate because some lenders in certain states do not require it. Also in some states it is the responsiblity of the seller to pay for and provide it.

Adrian Skiles

[tags]georgia, florida, north carolina, mortgage, home loan, mortgage company, mortgage broker, refinanc[/tags]

Risk Retention Groups “RRG”

In response to a hard insurance market in the mid 1908’s, Congress passed the Liability Risk Retention Act of 1986. The legislation was intended to simplify the regulatory process for affinity groups such as doctors, real estate developers etc, who wanted to find an alternative to the and unavailability high cost of certain types of insurance coverage. The Act created two new legal statuses: Risk Purchasing Groups and Risk Retention Groups.

Risk Purchasing Groups are simply groups (individuals or companies) that want to join together to buy insurance at group rates. The Act prohibits states from placing certain restriction on these groups.

Risk Retention Groups (RRG) are insurance companies formed by an affinity group that enjoy an important regulatory status. Basically, the Act allows an affinity group to form an insurance company is one state (a sort of “home domicile”) and be automatically qualified to do business in the other 49 states.

In theory an RRG only has to file with the states outside its home domicile:

* a plan of operation or a feasibility study which includes the coverage, deductibles, coverage limits, rates, and rating classification systems for each line of insurance the group intends to offer, and;

* a copy of the group’s annual audited financial statement submitted to the State in which the group is chartered, and;

* a reserve statement prepared by a qualified actuary.

In practice, state bureaucrats have proven very difficult to subordinate. There have been numerous suits against various states that have thrown up impediments that seem at odds with the Act.

Wayne Walker

Principal, Windward Harbor LLC

© Windward Harbor LLC 2004
http://www.windwardharbor.com

[tags]RRG,risk retention group,self insurance,Risk Retention Act[/tags]

To Smoke or not to Smoke - Tobacco & Nicotine Testing Kits

Smoking is a health hazard, to both those who smoke and those who are exposed to secondhand fumes. Due to this hazard, many companies have begun to test their employees for nicotine via nicotine drug tests. Nicotine tests help employers and insurance companies alike evaluate a person’s health more accurately, often times resulting in increased costs to the smoker.

Nicotine Testing for Insurance

Nowadays, many insurance companies require a full physical before accepting an individual onto one of their coverage plans. While this certainly holds true for health insurance, it is even more prevalent in the realm of life insurance policies. Life insurance companies require applicants to undergo an insurance company test for smoking. This is typically performed through blood testing for nicotine or a nicotine urine test. Should an individual be found to have nicotine in their system, they will be required to pay a higher insurance premium. Quite simply, smoking puts your health at risk, and insurance companies are not willing to take that risk without first, a tobacco test and second, higher monetary compensation.

Employer Nicotine Testing

While an employer cannot discriminate against employees who smoke, they can certainly screen their workers for nicotine use. These tobacco tests help companies decide how much their employees are required to pay for health insurance coverage. The thought behind this practice is that it would not be fair for a non-smoker and a smoker to pay the same premiums.

Nicotine Tobacco Testing

Nicotine drug testing can be carried out in several ways, the most popular of which are nicotine urine testing and blood testing. A great tobacco test kit can be found at TestCountry. This home nicotine test kit is a urine test that detects both nicotine and cotinine in a sample of urine taken from a donor. Nicotine urine testing can be done at home, in the office or during an insurance mandated physical. Results appear quickly and these nicotine tests are laboratory accurate.

Oftentimes, parents are concerned about whether or not their teenagers are smoking cigarettes. But with a tobacco test kit, the answers to your most pressing question will be answered. Nicotine addiction is very real. The sooner you find out if your teen is smoking, the sooner you can help your child overcome their nicotine addiction.

Insurance companies can potentially save money by enforcing insurance company test for smoking. These nicotine drug tests help insurance companies adjust their premiums to be fairer for non-smokers, as it is not fair for non-smokers and smokers to pay the same rates.

Employers also benefit from tobacco use detection tests and can save money when they buy health insurance for employees. Using nicotine urine testing is easy and effective and helps employers decide on fair insurance payment rates for their workers.

More information about this article can be found at
Nicotine & Tobacco Tests. The article is prepared by Serhat Pala who runs the website TestCountry.com.

Some of the information used in this article is taken from :
Life Insurance and Nicotine Testing

Smoking at the workplace

Nicotine Test Kit for Testing Tobacco Use

[tags]smoking,smoke,nicotine,life insurance,cotanine,testing,tests,tobacco,smoker,quit smoking,smokers[/tags]

Life Insurance Troubleshooting Your Policy Problems Answered

While many of us understand the basic functions of our life insurance policies, it’s not uncommon for questions to arise long after you purchased the policy.

To help address your policy problems, we’ll answer four of the most common life insurance questions to help you gain understanding and control of your life insurance policy.

Questions Answered

How do I file a life insurance claim?

To begin the claim process, you’ll need to obtain a couple copies of the policyholder’s death certificate. If you have trouble obtaining copies of the death certificate from the hospital or coroner’s office, your funeral director should be able to get you a copy.

Next, you’ll need to contact your life insurance agent. Your agent will help you complete the necessary paperwork to file the claim. If you’re not sure who the insured’s agent was, you can contact the insurance company directly and someone will help you file the claim. Remember to bring a copy of the death certificate for your agent as it will be needed to ensure quick claim submittal.

How will I receive the death benefit?

Once the life insurance claim is submitted, you’ll need to choose how the life insurance proceeds will be allocated.

According to the Insurance Information Institute (I.I.I.), there are generally four ways to distribute the death benefit:

Lump Sum. You receive the entire death benefit in one payment.

Specific interest provision. The insurance company pays you both principle and interest on a prearranged schedule.

Life income. You receive a guaranteed income for life. However, the amount you receive depends on the benefit amount, your gender and age at the insured’s time of death.

Interest income. The life insurance company holds the proceeds but pays you interest on the policy. Thus, the death benefit remains in tact and goes to a second beneficiary after you die.

No matter which option you choose, you should receive the proceeds from the policy within days of filing the claim. Life insurance companies are required by law to pay claims in this fashion. To learn about the guidelines under which your insurer must pay a claim, contact your state’s division of insurance.

What should I do if I can’t find the policy?

Unfortunately, there’s no database for purchased life insurance policies. That’s why it’s very important to know where the insured’s life insurance policy is at all times. Nonetheless, there are some things you can try to locate a lost policy.

You can start by trying to determine:

• Which company might have issued the policy
• Which agent may have issued the policy
• Whether the policyholder had life insurance through an employer, union or other group

The I.I.I. recommends trying to locate that information by:

Searching records, storage areas and safe deposit boxes. There you may find insurance-related documents, old checks, premium payment receipts or policy notices.

Contacting the policyholder’s legal and financial consultants. Previous and current consultants may have some information regarding the deceased’s life insurance.

Contacting the insured’s employer(s). Previous and/or current employers will be able to tell you if the policyholder had a group life insurance policy.

Checking tax returns. By checking past tax returns, you may find interest income from or paid to a life insurance company.

Checking the mail. Even if the policy was paid up, the insurance company will send an annual premium or dividend notice in regard to the policy.

Checking north of the border. If there’s a possibility that the policy was purchased in Canada, you can contact the Canadian Life and Health Insurance Association at (800) 268-8009, or visit them on the Web.

Probing the MIB database. While there’s no database for life insurance policyholders, there is a database for life insurance applicants. For $75, you can search the MIB database, and while it rarely pays off (MIB finds about one in five policies), it might be worth a shot.

If these tips still don’t result in the location of a lost policy, contact your own agent, lawyer or financial consultant as they may have additional recommendations.

What if I can’t pay my life insurance premiums?

Financial hardship can fall on anyone. If this happens to you and you can’t pay your life insurance premium, you should know what to expect.

Generally speaking, if you have a term life insurance policy, not paying your premiums will result in a lapsed policy, which means that the policy will automatically be cancelled and you probably won’t see any proceeds from the policy.

If you have a permanent life insurance policy, the I.I.I. says you’ll have some of the following options:

Cash out the policy. When you cash out, you’ll stop paying the premium and collect any available cash value. However, if the sum of the cash value is more than what you’ve paid in premiums, that cash may be taxed.

Non-forfeiture. A “reduced paid-up” option might be available to you, allowing you to stop paying premiums completely for a reduced death benefit and no cash savings. You may also be able to convert a permanent policy into an extended term policy.

Lapsed policy. If you choose to let your policy lapse, you may be able to get it reinstated. Some insurance companies allow you to do this if you do so within five years of lapsing. Reinstatement, however, may be contingent on your ability to pass a medical exam and pay back the premiums owed plus interest.

If you fall on hard times, be sure to contact your life insurance agent right away to work out an arrangement. Depending on your circumstances, it’s generally better not to let a permanent policy completely lapse as you may forfeit the cheap life insurance you had when you bought the policy.

Don’t Let Your Questions Go Unanswered!

If you have questions about your life insurance policy, it’s always a good idea to discuss them with an insurance agent. They can give you new, up-to-date and state-specific information about your life insurance policy so you won’t have any surprises down the line!

About InsureMe

Megan L. Mahan is a copywriter and insurance information expert with InsureMe in Englewood, Colorado. InsureMe links agents nationwide with consumers shopping for insurance. Specializing in auto, home, health, long-term care and life insurance quotes, the InsureMe network provides thousands of agents with insurance leads every year. For more information, visit InsureMe.com.

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