Insurance World

One-Year Monthly Point-to-Point

The monthly point-to-point index change is determined by subtracting the prior month’s index value from current month’s index value and dividing it by the prior month’sindex value. If this results in a positive monthly point-to-point index change and is not more than the declared cap, then it is
used as the capped index change for that month. If it is more than the declared cap, then we use the declared cap as the capped index change for that month.

A negative monthly point-to-point index change is not subject to a cap.

A “capped index change” for each month is captured over a 12-month period. The sum of the 12 monthly “capped index changes” will be the index credit rate on the index crediting date. The index credit rate is multiplied by the option’s account value to determine the index credit.

One-Year Annual Point-to-Point

The annual point-to-point index change is determined by subtracting the prior year’s index value from the current year’s index value and dividing it by the prior year’s index value. If this results in a positive annual point-to-point index change and is not more than the declared cap, then it is used as the index change for that year. If it is more than the declared cap, then we use the declared cap as the index change for that year.

A negative annual point-to-point index change is not subject to a cap. The index change will be the index credit rate on the index crediting date. The index credit rate is multiplied by the option’s account value to determine the index credit.

Participation Rate

The participation rate may very greatly from one annuity to another and from time to time within a particular annuity. Therefore, it is important for you to know how your annuity’s participation rate works with the indexing method. A high participation rate may be offset by other features, such as simple interest, averaging, or a point-to-point indexing method. On the other hand, an insurance company may offset a lower participation rate by also offering a
feature such as an annual reset indexing method.

Annual Point-to-Point

The index-linked interest, if any, is based on the difference between the index value at the end of the one year term and the index value at the start of the one year term. Interest is added to your annuity at the end of the one year annual reset term.

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Most of us would agree that we do need some sort of life insurance. While not personally a benefit for us, it can be a great help to our loved ones once we are gone. At the same time, it is important to make sure we not saddle ourselves with a policy that is too expensive or will be of little assistance when the time comes. Here’s some ideas on how to buy cheap life insurance that still fills the bill.

First, evaluate just how much cheap life insurance you really need. To accomplish this, you need to take a good look at your overall financial circumstances. Are you the sole support of your family? What would happen to other loved ones, such as elderly parents, if you were to predecease them? Are there already mechanisms in place elsewhere in your financial portfolio to handle paying off the mortgage, or making sure there are moneys set aside to help your kids with college? A cheap life insurance policy can speak to your particular condition, and prevent you from paying premiums for services or coverage that you really do not need.

Once you have ascertained what you need in a cheap life insurance policy, the next step is to begin gathering data. A time-honored way to being this process is to contact local agents. Be aware that the agent may not be interested in selling you a cheap insurance policy and try to direct you toward a bigger package. Resist the urge to cave in, but use these encounters to broaden your knowledge of what type of cheap life insurance packages are offered by theses local agents and how well they provide service on those policies. The data you compile through these efforts will help you directly as you move on to the next level of investigation.

After getting as much information on cheap life insurance as possible from your local agencies, turn your attention to the Internet. Just about every insurance provider has a website, and many agents as well. By using keyword searches such as “affordable life insurance” or “cheap life insurance”, you can get an idea for which companies offer different policies that can be customized to fit your needs. In addition to the individual sites, there are a number of websites that do comparisons of various policies side by side. These sites are perfect for someone who is looking for cheap life insurance and wants to have the convenience of comparing different offerings side by side.

Looking very closely at the terms of each cheap life insurance package you are considering is very important. Make sure you understand any nuances of the contract regarding time frames for reporting a claim or how long it will take for a claim to process and pay to your loved ones. What documentation is needed to process the claim and will someone such as the beneficiary or a surviving relative be responsible for collecting necessary documents or will a call to the company or an agent get the call rolling? Remember, the whole idea behind cheap life insurance is to make life a little easier for your loved ones in their time of loss, not add more burdens. Make sure the cheap life insurance you purchase will be a blessing, not one more problem to solve.

When choosing a cheap life insurance policy, it is important to remember that you do not have to give up excellent customer support in order to purchase a cheap insurance policy. Part of your evaluation has to include not only the specifics of the policy itself, but also how well the issuing company takes care of its customers. Before you ever settle on and sign any kind of cheap life insurance policy, make sure you investigate the company very closely. Make sure that you look at both your local agents and the internet options for cheap life insurance. How easy is it to speak with someone when you have a question about your coverage? What type of reputation does the company have when it comes to paying up on cheap life insurance policies?

Purchasing reliable and cheap life insurance is easier today than ever. Just be sure to do your homework and your loved ones will be well take care of.