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What Factors Will Affect Your Life Insurance Policy?

Example #1 – Are You Bankrupt?

Filing for bankruptcy can be a daunting task for many people. Therefore, one should know the kind of information that he or she should provide in order to protect his or her assets.

life Insurance Bankruptcy A life insurance policy is a very valuable property that one may have at his or her procession. This is because creditors may be interested in acquiring a share of interest generated by the policy’s values. However, there are federal and state laws that protect life insurance against the claims made by the creditors.

Types of Bankruptcy

There are two types of bankruptcy. These are chapter 7 and13. A chapter 13 bankruptcy is where one can hold on to his or her assets and are not subjected to risk of losing the property. However, one must repay some of the debts for a period of three to five years. If the cash value for the insurance is more than the rate of exemption in the state the individual is living, chapter 13 is the best option. There is a mean test that is usually done during filing of bankruptcy. If one passes the test one is eligible to filing a chapter 7 bankruptcy. One has to liquidate his or her assets for a period of four months by law. This means that the insurance can be affected.

One of the worst scenarios is where one is liquidating his or her assets then proceeds to borrow money from their retirement funds and life insurance. These are the only assets that are always protected at the time of bankruptcy. During the filing of bankruptcy, it is important to disclose everything including cash value of his or her life insurance policy. If one fails to do that, there is a high risk of losing the assets.

Under the federal and state bankruptcy law, one filing for bankruptcy may choose exemptions under the former, but not both laws. Under the exemptions; one can protect almost $10,775 cash value of life insurance.

How to Qualify and File

In order to be eligible to file bankruptcy under state protections, you must be considered a resident and live in a state for 24 months.

In order to be eligible for bankruptcy filing under state protections, one must be a resident and living in the state for 24 hours. In some states like Illinois, whole life insurance cannot be interfered with by the creditors such that it can provide support to the dependent. However, legal interpretation entirely relies on the sitting bankruptcy judge.

In summary, bankruptcy can interfere to some extent with life insurance depending on the type of bankruptcy filed, state and federal laws and the decisions of the bankruptcy presiding judge. False information concerning the cash value of life insurance that one owns can also interfere with life insurance.


Examples #2 – How Much Do You Weigh?

Insurance companies offering life insurance policies look at the trends in population health and lifestyle to help them calculate their rates. Anything that is likely to affect someone’s life span such as body weight is therefore factored in.

Diet and Life InsuranceIt is important to know if your weight is at a level considered to be healthy before applying for a life insurance policy. A consultation with a doctor should guide you on what the healthy weight range is at your age and height. The healthy weight range is based on a comparison of height to weight ratio as the America Medical Association dictates. Your weight to height ratio affects the rate of your life insurance premiums.

What Insurance Companies Analyze

Insurance companies factor in the weight of life insurance policy applicants purely for medical reasons. Since statistics indicate that overweight people with high levels of cholesterol puts them in a high-risk category. Being overweight is an important factor for insurance companies since it may be the cause of several other medical conditions that could potentially be life threatening. These include diabetes, heart disease, and liver disease. Insurance providers consider weight to be a strong indicator of future medical issues. It is noteworthy that they also use other medical details of the applicant to calculate the insurance premiums.

Before applying for life insurance coverage, you should take measures to lose weight to be able to get better rates. It is worth waiting some time to apply until you feel comfortable with your weight. Buying a life insurance policy when you are classified as overweight does not mean that the policy will remain that way indefinitely. You can apply for a fresh medical exam so that the insurance company may revise your rates. This move may lead to your rates being adjusted to more affordable ones.

Advantages From Living Healthy

As an incentive to drive people to lose weight, insurance companies introduced an option for people to get better rates by proving that they can live a healthier lifestyle. This is beneficial to both parties since the policy holder will have an affordable rate for premiums and the insurance company will benefit from having healthier clients. This reduces the risk taken by the insurance company to hold the insurance policy for the client. The client will eventually save a considerable amount of money in the long run.

Living a healthier lifestyle will ensure that the policy holder reduces weight, which causes several medical conditions. Companies that offer life insurance policies offer different rates because of the methods they use to calculate the rate for premiums. It is advisable to get quotes from several companies with detailed information on how weight affects individual companies’ calculations. This will ultimately lead you making the best decision about which company has the best insurance policy for you.


Example #3 – You Are Getting a Divorce

Life Insurance and DivorceDivorce is an issue that can make things difficult on a family, but it can also complicate matters financially. Most people in this situation have to deal with splitting up a family house, assets, savings and debt but often overlook life insurance policies. If you have a life insurance policy and you get a divorce, a few different factors must be evaluated.

If you settle the divorce outside of court, you may get to decide what to do with the insurance policy on their own. You and your spouse can work out what happens to the policy. If you let the courts decide what happens to your financial assets, you will have to do what the court says in regards to your policy. Sometimes the court will require you to maintain a life insurance policy with your ex-spouse as the beneficiary as a way to guarantee that alimony or child support is paid if you pass away.

When you get a divorce with a life insurance policy, you have to consider the beneficiary of the policy. As long as the court does not require you to keep your ex-spouse as a beneficiary on the policy, you have the legal right to change the beneficiary at any time. You will simply have to contact the insurance company and ask for a beneficiary designation change form. For example, if you get a divorce and then remarry, you may not necessarily want your ex-spouse to be the beneficiary on your life insurance policy. Because of this, you can change the beneficiary to your new spouse. If you forget to change the beneficiary on your life insurance policy, the money could go to your ex-spouse unexpectedly.

If you purchase a whole life insurance policy or some other type of policy that includes a cash value, this could lead to further issues when getting a divorce. Typically, when you file for divorce, you will have to split all of your assets in half. If your life insurance policy has a cash value, your spouse would be entitled to half of that amount.

When this happens, you have a few different options to consider. One option is to cash out the policy and give your spouse half of the value. Another option is to keep the policy and take out a policy loan for half of the cash value. With this approach, you would be able to keep the policy intact and repay the policy loan over time. A third option is to use other assets that you have to pay off your spouse for half of the policy value.

Regardless of what happens to your existing life insurance policy during a divorce, you have to reevaluate your need after the divorce is complete. If you are going to be single without any beneficiaries to be concerned with, you may not need another life insurance policy right away. If you still have kids to take care of or a new spouse, making sure that you are covered in some way should be a priority.

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How Tiny Prints is Winning at Customer Service

I learned about Tiny Prints during the summer of 2010. I was talking about the company with a few people at my work and no one had heard of them. I had checked out their website and seen the cool products they offered. Next thing you know the holidays were rolling around the corner and my wife and I needed to get our Christmas cards taken care of. We were tired of the long floppy prints you get at Walgreens or CVS and wanted something different. We had my sister take the perfect picture which included our dog. We perused the Tiny Prints website and found a stylish design that came on card stock. The prices were a little bit more expensive, but you were also getting quality. Everything turned out great and we received so many great comments during our holiday celebrations.

Tiny Prints Christmas CardA year later we were back in the same spot, but running a little late. It was around December 10, 2011 and we were just taking our picture. I set up the tripod and had the cheese ready to get our dog Rex to pay attention. I hit the timer, ran in for the picture and flash. We ended up getting it on the 3rd try. I was pretty impressed with our efforts. That night I picked out the perfect card at Tiny Prints that matched the colors of our picture. I got the wife approval and ordered.

Now, since we were running out of time in December, I paid the extra $20 or so bucks to have it expedited and arrive in 3 days. The next night I realized I was looking at the wrong address list and we needed to order an extra 30 cards. I hop back on the Tiny Prints website and was easily able to re-order the prints we just purchased. I am sure I am not the only person that does that! Again I pay for the fast shipping which was roughly another $20.

A few days pass and I am expecting the first shipment of cards to arrive. I log on to track our order and notice they are still not even in our state! After paying the $20 for fast shipping I was pretty upset. Whats the point of paying the extra money if they arrive late? I sent an email to the customer service department explaining my frustration and asking for a refund on my shipping costs. They promptly got back to me and explained they were running late on some orders during this Holiday season. I understand where they are coming from and was glad when they refunded my shipping.

Two days later the first package arrives and it also happens to be the day the second package was supposed to come. I log on to track the shipment and AGAIN it is out of state still. I thought the first occurrence was a one off experience. I was a little frustrated and contacted them for a refund again. They replied right away to apologize and refunded the shipping expense again. The cards eventually arrived and everything worked out, but I told my wife that I was not sure if we would use Tiny Prints again.

About a month later we received a letter from Tiny Prints in the mail. It was a typed note explaining their gratitude for our business and making amends for their delays during the Christmas rush. Along with the card was a $50 gift certificate. Boom! It was perfect because my wife was pregnant and due on March 1st. We knew we would be sending out birth announcements. It was a classy move by Tiny Prints and they definitely saved their customer with the maneuver.

Tiny Prints NoteOn February 24th we welcomed our son Mason to the world. It had been very busy since his birth and we finally had some pictures taken of us. I grabbed our $50 gift certificate and ordered some really neat cards from Tiny Prints. They arrived in the mail just this week. We also received a small envelope in the mail the same day which had my hand written name on it. I don’t believe it had a return address and so I opened it up wondering what it could be. It turns out that it was a very nice note from Ophelia at Tiny Prints, and again, it was hand written. She was nice enough to take the time to congratulate us on our son Mason and commented on how she liked the picture which included our dog. I was blown away. I showed it to my wife Lisa and she was amazed as well. She loved how it was a personal message and not just a typed template.

Sometimes the little things will make a huge difference. We are not always perfect, but putting in the effort and always trying your best will win you many karma points in life. In this case, it is safe to stay that Tiny Prints has some lifelong customers.

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