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 Posted: Sun Nov 23, 2008 9:50 am Post subject: life ins issue |
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I am currently having an insurance cover (life) of 100000 $ where it has costed me mere 270 $ annual premium.problem i faced for this is stringent rules for income proof.
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ensurepune
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| Posted: Sun Nov 23, 2008 11:50 am Post subject: |
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| Quote: | | insurance cover (life) of 100000 $ where it has costed me mere 270 $ annual premium. |
This sounds a little too good to be true...what 'kind' of life policy is this?
| Quote: | | problem i faced for this is stringent rules for income proof. |
I don't understand what this means? they need you to prove how much you make? if so what is so hard about that? and why do they need to know that? clearly I'm no life ins. expert...hopefully the experts will be along shortly, in the meanwhile please supply the answers to these questions.
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Lori
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| Posted: Sun Nov 23, 2008 2:35 pm Post subject: insurance |
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| I'm not an 'expert' either...............but, that sound like ALOT of Life Insurance for very little money, ENSURE. I've inquiried about different kinds of Life Insurance, in the past. I've never been told I needed to provide mu income to do it. What Insurance company do you have? Do you care to tell us? |
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sdchargersfan
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| Posted: Mon Nov 24, 2008 3:19 am Post subject: |
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| I do not think it is from around here unless anyone knows Prune. Thats the location mentioned under his forum name. |
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fireyone
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| Posted: Mon Nov 24, 2008 5:36 am Post subject: |
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| Quote: | | I do not think it is from around here unless anyone knows Prune. Thats the location mentioned under his forum name. |
Good catch Firey , I'm sure he is from another continent.
Anyway, Ensure they may be asking for the proof just to know how much you make as income and whether or not you'll be able to continue paying the premium. I don't know what do you mean by ‘stringent rules for income proof'? if you're not satisfied with their treatment you certainly should search for another insurer if the market isn't a monopoly. |
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jeorge
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| Posted: Mon Nov 24, 2008 11:03 am Post subject: |
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Ensure Pune wrote:
| Quote: | | I am currently having an insurance cover (life) of 100000 $ where it has costed me mere 270 $ annual premium.problem i faced for this is stringent rules for income proof. |
Well, I counted the zeros and I keep getting $100,000.
There wouldn't be any income verification from any insurance company in the USA for that small amount of life insurance.
Most companies won't even write term life insurance less than $100,000.
Now, if Ensure left off a zero and meant to type $1 million (1,000,000) then YES and regardless of young age, excellent health or ability to afford the premium, financial underwriting will come into play with that large of death benefit.
Edit:
Fireyone caught this one!
Pune is in India.
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GarySpicuzza
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| Posted: Mon Nov 24, 2008 11:14 am Post subject: |
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| Quote: | | Now, if Ensure left off a zero and meant to type $1 million (1,000,000) then YES and regardless of young age, excellent health or ability to afford the premium, financial underwriting will come into play with that large of death benefit. |
Why is that Gary? I'm never had any policys over 200 or 250k, that I had on my husband, but I was planning to kill him then...  (just kidding) to my knowledge I've never been asked to prove any income
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Lori
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| Posted: Mon Nov 24, 2008 11:38 am Post subject: insurance |
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| WAY back when (!)..when I joined the military, our Life Insurance policy was $200,000.00 or $100,000.00. THEN...it depended on your income. I mean, if you were a 'newbie' in the military, they took out $10.00, per month (Army Reserves) for your payment ( to get $100,000.00). If you were in for a while, they took $15.00 per month ( for the $200,000.00). |
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sdchargersfan
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| Posted: Mon Nov 24, 2008 11:44 am Post subject: |
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yes clearly another of her posts said,
| Quote: | | as far as business of AIG in india is concerned they haven't faced any problem as such. |
Pune, please explain to us India's regulations regarding this income verification, and is it on all policys and if so what is the reason for it?
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"Never, never be afraid to do what's right, especially if the well being of a person or animal is at stake. Society's punishments are small compared to the wounds we inflict on our soul when we look the other way." Martin Luther King Jr. |
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Lori
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| Posted: Mon Nov 24, 2008 1:45 pm Post subject: |
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 Happy to see different replies to my thread (rather investigating one).I am basically from India.Here i have taken insurance from TATA AIG Life insurance company.
They have stringent financial underwriting rules that they should avoid people taking undue advantage of the large amount of insurance money.People here sometimes do take policies of higher amount may be up to 1o million and then commit suicide which even proved to be a suicide at least they think that their families will get some amount from insurer.to have a check on these scrupulous activity they have stringent income proof checks.
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ensurepune
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| Posted: Tue Nov 25, 2008 11:13 am Post subject: |
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Pune dropped this in my QM which I think clearly explains the reason behind this strict income verification in India
| Quote: | | here in india people are underinsured,here for 100 billion population we have only 24 insurance companies.here most people are from BPL (below poverty line)where there daily earning may be on an average to be 1 doller for 10 hrs working.so people will take insurance of high amount and for family's sake they may(sometimes they are)commit suicide where their family members will get large sum from insurer.to avoid this there u have to prove that u r eligible for high prem.insurance product. |
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"Never, never be afraid to do what's right, especially if the well being of a person or animal is at stake. Society's punishments are small compared to the wounds we inflict on our soul when we look the other way." Martin Luther King Jr. |
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Lori
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| Posted: Tue Nov 25, 2008 11:23 am Post subject: |
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| Quote: | | Why is that Gary? I'm never had any policys over 200 or 250k, that I had on my husband, but I was planning to kill him then... (just kidding) to my knowledge I've never been asked to prove any income |
Because, 100k, 200k even 250k is chump change to life insurance companies. It's a relative insignificant amount of money.
Financial underwriting comes into play with larger face amounts and certainly with $1,000,000 or more.
At that point and above you have to prove to the insurance company why you need that much coverage REGARDLESS of your ability to pay the premium.
For example, a 20 year old male non-smoker could buy a $1 million dollar annual renewable term policy for as little as $18.25 per month.
Even a broke college student could come up with $18.25 per month to pay that premium but the insurance company would never issue the policy just because you're young, healthy and can afford the premium.
Where is the financial NEED for that large of a face amount?
Who suffers a devastating FINANCIAL loss for the death of a 20 year old?
Are there ulterior motives for such a high face amount on a person that young?
Isn't it contrary to normal 20 year old male "bullet-proof" mentality to be concerned with life insurance?
Who's the beneficiary? A 50 year old Cougar?
Now I could make an argument the young person is wanting to protect his/her future own insurable interests and is concerned about the future impact of federal estate taxes on his future children or may need a business loan in the future and the bank may require a collateral assignment of his life insurance to secure the loan.......
...but I'm afraid my "best" efforts would be quashed by the company underwriters and they may, at most, issue a $500,000 policy on a 20 year old.
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GarySpicuzza
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| Posted: Tue Nov 25, 2008 11:41 am Post subject: |
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| Whoa...I am blown away one dollar an hour for 10 hours worth of work. Thats probaly the financial need right there. Can you imagine? |
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fireyone
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| Posted: Tue Nov 25, 2008 11:57 am Post subject: |
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Got it...
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Lori
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