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Life Insurance Facts & Figures

Life insurance

FACTS & FIGURES





Life insurance provide financial protection in lieu of specified premium. It is a king of insurance wherein life itself gets protected from the uncertainties and unexpected incidents in one's life.





USA FACTS

95 Million US Adults don't have any life insurance at all

(That's 41% of the population)



61% of men have some sort of life insurance coverage



57% of women have some sort of life insurance coverage





American behavior. In percentage.

93%

of Americans say that life insurance is something most people need.



50%

of Americans admit they do not have adequate life insurance coverage



44%

of Americans own an individually purchased life insurance policy





Many expert recommend at least

10

Times

your gross Annual Income

in coverage





Average recommended vs average owned. In dollars.

$405,840

Average recommended life insurance coverage



$166,800

Average amount owned



$235,600

Average amount of insurance coverage

on married men



$147,800

Average amount of insurance

coverage on married women





Death causes

WAYS TO GO

Heart disease

1 in 5 deaths



Cancer

1 in 7



Stroke

1 in 24



Motor vehicle accident

1 in 84



Suicide

1 in 119



Falling

1 in 218



Firearm assault

1 in 314



Pedestrian accident

1 in 626



Drowning

1 in 1,008



Motorcycle accident

a in 1,020



Fire or smoke

1 in 1,113



Bicycling accident

1 in 4,919



Air/space accident

1 in 5,051



Accidental firearm discharge

1 in 5,134



Accidental electrocution

1 in 9,968



Alcohol poisoning

1 in 10,048



Hot weather

1 in 13,729



Hornet, wasp, or bee sting

1 in 56,789



Legal execution

1 in 62,468



Lightning

1 in 79,745



Earthquake

1 in 117,127



Flood

1 in 144,156



Fireworks discharge

1 in 340,733





LIFE INSURANCE - REASONS & FACTORS

The major reason for purchasing life insurance is to guarantee the continued financial support of loved ones who depend on the insured in the event of the insured's death.

Six reason

You might need life insurance

-To replace one's ability to earn income

-To replace one's ability to care for others

-To pay for expenses arising as a result of a death

-To provide for special business needs

-To fund a charitable interest

-To provide supplemental income later in life



Life Insurance Needs curve

Life begins

College/Work

Marriage/First Home

Children

Peek Earnings & Asset Accumulation

Debt Reduction

Grandchildren

Retirement & Wealth Transfer



Three attributes

Life insurance has three attributes:

The death benefit

The premiums

The span of years over which you pay the premiums



Six Factors

In order to accurately estimate the amount of life insurance needed, here are some of the factors that must be considered.

-The future expected income of the insured

-Existing debts

-Expected future spending, including non-routine costs like college

-Future Social Security or pension benefits

-Like;y costs associated with an individual's death, including estate taxes and funeral expenses

-Lifestyle changes that might be made by the survivors in the event of the death of the insured





TYPES OF LIFE INSURANCE

The two most common types of life insurance are:



Term life insurance

-Provides coverage for a specific amount of time

-It has a monetary value that is paid to the named beneficiary in the event that the policy holder dies.

There is a premium paid on the policy each year in order to keep it active.

This form of insurance does not grown in cash value and is not used as an investment.



Main reasons to choose term life insurance:

-Their main concern is to cover the income earned during their working years

-The money saved for choosing term over whole life insurance could be put to better use during the insured's lifetime

-Large face value for small premium payments



Whole life insurance

-Also considered "permanent" insurance

-It is in effect for the life of the policyholder, as long as the premiums are paid when specified

-It also pays on the value of the policy upon the death of the policyholder, however, this kind of insurance can grown in value over time.



Main reasons to choose whole life insurance:

-Using for Inheritance

-Insurance coverage for life

-Installment or lump sum payments

-Convert to an annuity





Main Purpose(s)

Term life insurance

Short-term financial liabilities

Whole life insurance

Long-term financial liabilities and cash accumulation



Cost

Term life insurance

Lower when initially purchased, increases with age based on term duration

Whole life insurance

Initially higher than term premiums, but often level for life



Coverage Duration

Term life insurance

Limited time - generally for 5 to 30 years or 75-85 years old

Whole life insurance

Lifetime, as long premiums are paid



Cash Value

Term life insurance

None

Whole life insurance

Accumulates over time on a tax-deferred basis



Access to Cash Value

Term life insurance

Not Applicable

Whole life insurance

Yes, through loans and withdrawals*



Key advantage

Term life insurance

Typically offers the highest death benefit for the lowest cost

Whole life insurance

Offers lifelong protection and tax-deferred savings



*Certain limitations may apply to loans or withdrawals.

Policy loans and withdrawals will reduce the benefit and cash values, and my be taxable under certain circumstances





Life Insurance Premiums

Whole life Insurance premiums remain the same for your "whole life"





Life Insurance Comparison

Death Benefit

Term Life, Whole Life, Universal Life, Variable Universal Life



Flexible Payment

Universal Life, Variable Universal Life



Invested in Market

Variable Universal Life



Cash Value Guaranteed

Whole Life, Universal Life



Tax Advantages

Term Life, Whole Life, Universal Life, Variable Universal Life



Low Monthly Cost

Term Life



Which type of insurance is purchase depends on:

Needs

Goals

Finances of the purchaser





LIFE INSURANCE PREMIUMS MAJOR INFLUENCES

Like any other insurance policy, your life insurance premium is determined by several criteria.

Major influences

Age

Physical/Health Condition



Some other influences

Occupation

Risky or Hazardous Sports

Gender

Lifestyle Smoker/Drugs

Type of Policy



It never pays to fool the insurance company since these companies are expected to know their field and, if even a small amount of fraud is determined, your claim may be denied when the time comes for your heirs to collect it.





LIFE INSURANCE COMPANIES

The list is long. Here are some of the most popular life insurance companies.

Assurity

American General Life Companies

Genworth Financial

AVMA

Aviva

Banner Life

Companion Life

American Nation Family of Companies

ING

John Hancock

Lincoln Financial Group





No one life insurance product is better than the other.

You have to determining what is best for you based on a wide variety of factors.

Life Insurance Facts & Figures

shared by steverusso on May 07, 2012 in Health

Life Insurance Facts & Figures

shared by steverusso on May 07, 2012 in Health

8K views

8 faves

4 comments

Here is an interesting info graphic that will show some great facts from death causes to types of life insurance. Interesting enough, it has been said that over 95 million US adults don't have life in...
Rank: 109 of 9410 in Health
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