Reader’s Question:

I had a heart attack 2 weeks ago. Will it be possible to purchase an affordable life insurance rate in Alabama after the attack?

Rick

Birmingham AL

It is important to provide the correct and accurate information possible to your insurance company to get the right quotation of life insurance rates. In addition, if the
insurance company finds out that you lied about the incident of the heart attack, they might automatically increase your premiums and pay the retroactive fees by force.

The severity of heart attack and heart disease will determine the cost of the life insurance rate which will not cost you an arm and a leg. Your condition will not necessarily mean
that you will have to pay more. By showing the insurance company that you are taking the proper medication to improve your health, you may be able to get the standard life insurance rates.

An application for life insurance policy right after the heart attack can result in higher rates. The best thing to do is to wait until a year or two. This will give you time to heal in addition to the proper medication and a change in lifestyle as directed by your doctor. This action will also show that your health has improved and stabilized because of the proper steps you take for the past 1 or 2 years. Remember to document the progress in your health. You can show the medical files to your Alabama life insurance company to get affordable life insurance rate.

Tags: cheap life insurance, life insurance, life insurance quote

Reader’s Question:

Last week, my friend and I found out that she has cancer. Is it still possible for her to get a life insurance here in Alabama?

Linda

Birmingham, AL

Hi there, Linda, I hope your friend is doing fine. Yes, it’s still possible for her to get a life insurance even if she has cancer. There are certain roadblocks though but it’s definitely not that impossible to get one. If she’s thinking of getting a life insurance policy, these are some things to consider: What type of cancer does she have? At what stage is the disease already? And what kind of treatment is she undergoing?
There are policies that will offer payments for hospitalization, surgical operations, medicines, doctors, chemotherapy and radiation treatments.

Most of the time, cancer leads to other health problems even with the treatment going on. Cancer makes your body weaker and impairs your immune system, which make you more susceptible to other infections and diseases. Unfortunately, treatment for these diseases are often not included in cancer insurance policies.

Sometimes, patients need to travel long distance to have their treatments. And commonly, cancer patients need to be accompanied in traveling for miles. These travels cost a lot and most insurance companies will not cover these expenses. However, there are still some companies that will also pay for the people accompanying the patient. Some life insurance policies will cover you even if you already have coverage under another health policy. Gather more information about the waiting period of cancer policy effectivity, as well as the maximum time period of your coverage.

Try contacting an agent in Alabama so you and your friend can get more information about cancer insurance policies. Good luck!

Tags: cancer life insurance, life insurance

Reader’s Question:

My dad is a pilot by profession. And I learned that my dad’s profession is considered high risk in Birmingham, Alabama. With this, he is paying higher life insurance rates as compared to others. Why is that?

Tina

Birmingham, AL

In general, life insurance companies consider a person’s lifestyle in setting their life insurance rates. And one of the main factors that insurer consider is a person’s occupation. Policeman, scuba diving instructors, fireman, soldier, and pilot to name a few are professions that are considered to be riskier to be insured. They are commonly called as hazardous occupations.

Since your dad’s profession in Birmingham, Alabama is considered a hazardous occupation then it’s only normal to expect a higher life insurance rates. That is because the kind of work a person has affects his or her health thus affecting one’s life expectancy. It is strongly advisable for a person with hazardous occupation to carefully choose his/her term life insurance carrier. A life insurance company with rated A or A+ should be taken into consideration and also the mortality table that the carrier uses. The mortality table helps set the life insurance premium a person will pay depending on the risk he/she poses.

For more information about life insurance quotes, you can ask your life insurance agent or check the websites so you could compare term life insurance quotes.

Tags: hazardous jobs life insurance, insurance advice, life insurance

Reader’s Question:

I am a single parent of a 5-year old from Alabama. Do I need a life insurance? Can a life insurance cover my child’s college education? Will a life insurance pay my mortgage and credit card debts after my death?

Marianne

Montgomery, AL

Very relevant questions, Marianne.

Yes, I think you need one…especially that you seem to be the breadwinner of the family. A life insurance will take care of your family’s needs in the event of premature death. The logic is this: when someone else depends on your income, then by all means, secure his/her financial future by getting a life insurance.

I think all of your questions can be answered by one: How much life insurance do you need to maintain you family’s lifestyle?
To put things into a simple perspective, you have to bear in mind that when you plan to purchase a life insurance policy in Montgomery, you need to assume premature death. By doing this, you will be able to highlight your family’s needed protection from the loss of income in case you die.

A primary consideration when estimating your life insurance needs is the immediate, as well as the long term, income needs of your family upon your death. This includes, but not limited to, funeral expenses, final medical expenses for the insured, repayment of short-term loans (such as credit cards, auto loans, etc.), and paying off the mortgage.
Simply put, you need enough to protect your families’ loss of income if you die. When calculating the amount of Life Insurance that you need, you should consider the immediate needs of your family upon your death, as well as their long term income needs. Example of long term needs include lost income to support your family until your kid is grown up and need to pay for college. Retirement can also be protected by a life insurance.

For you to get the best deal, you may contact a local life insurance agent in Montgomery and ask for a free quote after you sit down and discuss your current circumstances. Or better yet, you can start to search online to get free quotes from Montgomery life insurance companies.

Reader’s Question:

I am planning to get a life insurance in Alabama but I don’t know how to go about shopping for it. Any tips?

Joanne

Montgomery, AL

As a long term proposition, you have to make sure that you will get the best deal in Alabama according to your needs, policy type, stability of the insurance company, and the best price.

First, you have to analyze your life insurance needs, considering the economic needs of the dependents left behind. Your financial situation in Alabama and the standard of living you want to maintain for your dependents or survivors would also be a factor, with the assumption of death, for you to determine your family’s long term needs.

Second, decide the most appropriate type of life insurance for your needs. There are 2 main types of life insurance: (1) death protection without any side fund buildups or “cash values”; (2) death protection which offer or require “cash value” accounts (return on investment component).

You can start comparing rates of life insurance policies from local Alabama life insurance companies. All you have to do is to plug in your zip code on the box located on this page and get some free quotes!

Reader’s Question:

A friend of mine in Alabama suggests I purchase a variable life insurance policy and opt to invest the cash value in Alabama-based fund. Am I guaranteed I’d get my investments with this type of policy?

Tara

Montgomery, AL

Good Question, Tara.

No. Variable life is designed as a true investment with a death benefit. It has features to shift the uncertainties of investment gains and losses to the policyholder. In this type of policy, the insurance company invests your premiums to a fund of your choice which the company offers to you as possible investments.

The cash value, death benefits, and award to your beneficiaries of your policy will then depend on how well the insurance company invests your money. It provides no guarantee of either interest rate or minimum cash value. Therefore, theoretically, the cash value can do down to zero, and if so, the policy will have to terminate.

However, since there is also a possibility of increasing your cash value if your insurance company in Alabama invests it well, variable life insurance policy may also be a good option. Just make sure that when you purchase such policy, verify the investment and never put it on a speculative fund.

Reader’s Question:

A local insurance company in Alabama offers coverage for a universal life insurance. Does a universal life insurance policy assure of a fixed premium for the whole term?

Nick

Huntsville, AL

Good Question Nick.

No. The insurance policy can increase charges since it offers greater flexibility compared to the Alabama whole or term life policy. With a universal life insurance policy, you can make changes while the policy is in force. Even after your initial payment, you can still reduce or increase the amount of your death benefits and even pay premiums any time and in any amount, as long as you don’t miss a minimum payment. Because of this flexibility, insurance companies can increase charges at any time during your term.

Though offering greater flexibility in terms of making changes while the policy is in force, the Alabama universal life insurance policy can have many moving parts which should be understood before you make the purchase. For example, if you choose to increase your benefits, you may have to provide medical proof that your health has not deteriorated. You can also pay premiums any time and in any amount, but in some cases, there are limits to how much extra you can pay in advance premiums.

Ask your local insurance company in Alabama for details on the moving parts of their universal life insurance.

Reader’s Question:

I recently moved to Alabama and a local life insurance company agent who happens to be my neighbor is offering me a whole life insurance. She says that I should get a participating policy. What does that mean?

Mary

Huntsville, AL

Thank you for asking Mary

Whole life insurance policies generally offer “permanent protection” with a cash value account that grows over time. It provides a level death benefit and level premiums throughout your life and for as long as you continuously pay premiums. Who owns the cash value? The insurance owns it but will make it available to you in the form of low interest loan.

Whole life can be issued in two ways: as participating or nonparticipating. Participating whole life policies typically cost more by design and contain the intention of returning some part of the premium to the policyholder each year in what’s called a dividend. Nonparticipating whole life insurance has no dividend or return of premium features, but generally cost less from the start.

For more accurate policy issues, feel free to contact your neighbor in Alabama. She might be able to give you more detailed information as to policies available for you.

Reader’s Question:

I have a whole life insurance policy with a company based in Alabama. I have been paying premiums for two years already and this year, I am planning to purchase a new house in Florida. Can I still use up the amount from the cash value account of my whole life insurance in Alabama?

Frank

Montgomery, AL

Thank you for asking Frank

Yes. Ordinary whole life insurance offers a “permanent protection” with a cash value that grows over time. It provides a level death benefit and level premiums throughout your life for as long as you continue to pay the premiums. It also contains a cash value account that builds over time which eventually equals the face amount of the policy.

Normally, in whole life insurances, the Florida insurance company owns and retains title to the cash value of your premiums but will make it available to you in the form of low interest loan. I you don’t pay them back the interest, you risk your beneficiaries receiving a reduced death benefits.

It is best to consult your local life insurance policy in Alabama for more detailed information

Reader’s Question:

I have currently moved to Alabama and am planning to apply for a life insurance. How does term life insurance differ from cash value life insurance in Alabama?

Mark

Birmingham, AL

Thank you for asking Mark.

Term life insurance is a type of insurance policy that provides death benefits without any savings, investment or “cash value” components for the term of coverage. It is usually the cheapest and the simplest to understand. Normally, premiums of this type are guaranteed not to increase for a given set period of time. The company cannot cancel you as long as you pay the premium.

On the other hand, cash value life insurance is another type which offer or require “cash value” accounts with a return-on-investment component aside from death benefits. “Cash value” accounts maybe in a form of a long-term savings account (though without insurance by any federal agency) or stock market investment. Expect to pay much higher premiums per $1,000 of coverage because of the funding for a cash value in addition to the assumption of death costs.

It would be much better if you contact a local life insurance agent in Alabama to know more information about life insurance in Alabama.