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Ernest Said:

life insurance underwritting rules?

We Answered:

Underwriting criteria vary from state to state and company to company. One company's underwriting manual will not match the underwriting criteria on another company's policy.

Call a local agent and ask him/her for information on the company he/she represents.

Lorraine Said:

How to use rule of 72 to find how much insurance I need?

We Answered:

"Rule of 72" is an investment term that allow you to determine how much interest (rate of return) you need to earn in a certain period of time to double your money.

For example - to double your money in 8 years you need 9% interest.

I have never used that to calculate a life insurance need.

Here are a couple of simple ways to calculate your need.

1.
If your family needs $54,000/year the easiest way is to figure out what rate of interest the death benefit proceeds could be invested at. If you could get 5.4% interest on an investment than $1,000,000 will provide that level of income for life.

2.
You should probably get at least 760,000 based on this very simple calculation:

54,000 x 10 years = $540,000
plus loans of $220,000

This is an oversimplified way of looking at your insurance need. I recommend that you meet a local broker or agent to do a more thorough review and find the right policy for you.

Sara Said:

How much interest would I earn on this money?

We Answered:

I think you've misunderstood what interest rates you're getting. If a checking account paid 3 percent per month, that would be an annual percentage rate of 36 percent! There's not a checking account -- or any kind of account -- in the world that pays that much!

If all the rates you've listed there are actually the ANNUAL rates, not the monthly rates, then the interest you'd earn per year would be as follows:

3 percent of 30,000 = 900
0.25 percent of 10,000 = 25
1.5 percent of 100,000 = $1500

That's $2425 per year, or little over $200 a month.

Salvador Said:

life insurance program manual?

We Answered:

The distribution of this information is very limited. Most agents in the field don't even have access to a complete underwriting guide. As far as "calculations work sheet", if you find a product that still has this (instead of a software program), it is usually marketed to a specific niche, skewing the rates.

If you don't already have access to this information, you're not supposed to. This means you are much better off trying to get in person than from people on the internet. Good luck.

If you need this for any product and it doesn't matter, get a brochure on a guaranteed issue policy. It will have a rate chart and detail underwriting conditions.

edit: Policy rates for term life are usually figured as cost per thousand plus policy fee multiplied by payment mode (quarterly semi-annual etc). This gets messy with cash value policies. As for an underwriting manual, the Swiss Re book is the default for most of the industry. http://www.swissre.com/pws/business%20se… Check with a large BGA (http://www.nailba.org/content/membersear… or an underwriter to ask how to get a copy. You can also check out the types of risk factors here to start your db (http://www.nailba.org/content/foryoursel… You also want to know your competition. Research the Genius underwriting system because I think that's the direction you're headed. Many companies have something similar that they use internally.

Julian Said:

Is anybody aware of an account or investment that does not count against college financial aid, efc calc?

We Answered:

This sounds like a scam.

Nelson Said:

The American Counsil of Life Insurance and the Life Insurance Marketing?

We Answered:

Repost here:

http://answers.yahoo.com/dir/index;_ylt=…

It is the link to Home > All Categories > Science & Mathematics > Mathematics

Esther Said:

Is there a low risk type of investment that can outpace an ROP life insurance's rate of return?

We Answered:

You've done some good analysis and neither will be a bad choice, but just let me give you a few more things to consider:

1) Most ROP policies have very, very low cash values prior to the end of the term. In other words, you are going to have to pay the premiums the full 30 years or else you will not come even close to the rate of return you are calculating. Most other investments you can get to the money and realize a substantial return without having to wait 30 years. I'm not saying that you can't do it, but just note the commitment you will be making.

2) Remember that you are not throwing your term insurance premiums away. That $50 per month is providing you protection and security. You are trading a relatively small amount of money per month in exchange for not leaving those who depend on you financially destitute. The only scenario where you would be wasting that $50 is if you didn't need life insurance in the first place and in that case you would be wasting $50 per month either way.