A Pursuit of Happiness Suggestion

This morning, I was reminded of the most memorable birthday present I have yet received. My children gave it to me. I was so pleased to receive it that they have made it a birthday tradition of sorts. I typically don't get very excited about presents because I already have more "stuff" than any man would need. I'm good at packing 10 lbs of stuff in 5 lb bags.

Two years ago my birthday present consisted of a small envelope about the size of a thank you card. I opened it and read the following: A gift of a hive of bees has been donated in your name to a 3rd world family. It then went on to explain about the mission of Heifer International.

I've always been a visual person and I could see, in my minds eye, a family receiving the bee hive. I felt their joy and I could see the benefits that it would bring to them and to the agriculture of their community. I saw how it blessed their lives and I felt really really good inside. I still feel that way every time I think about that gift.

Last year, having seen how their previous gift had affected me, my children stepped up and purchased a pig in my name. When the pig has piglets the receiving family commits to passing along one of the young to another family who then passes one on and on and on! What a wonderful concept!

I highly recommend this form of gift as it multiplies itself many times over. The basic premise behind Heifer is "Teach a man to fish". Recipients of Heifer's program make a committment to pass on a portion of their harvest to others so that the gift continues to grow for generations.

So what does this have to do with life insurance? I suppose both nothing and everything. Nothing because you don't need life insurance to do good in the world and everything because life insurance can continue creating goodness long after you have left the planet.

May you also enjoy the experience of receiving and giving such a gift.

Like me, because you are building your financial future, you naturally want to know it is secure. Begin your insurance journey by framing your security on a foundation of term life insurance. You can get started by visitin my website www.jamesrichard.com

Getting an Accurate Term Insurance Quote on the Internet

Term insurance - Simple and straight forward; right?

Yes and No. Term insurance is a simple way to begin the lifelong process of protecting your human life value. It generally has no cash value* and can be designed to meet a specific insurance need for a specific length of time, thus the name "term" insurance. Term insurance comes in a variety of flavors: Annual renewable term, 5, 10, 15, 20, 25, and 30 year terms, decreasing term or mortgage term, Non-Medical term (No medical exam required) and ROP** (Return of Premium) term.

Term insurance is very easy to explain: for example, a typical 20 year term policy has a guaranteed premium (cost) that is guaranteed to remain at that same premium for 20 years. With a significant annual increasing premium at the end of the initial 20 year term.

The insurance company is assuming that you will fall into one of three categories at the end of the policy's term:

• 1. You no longer need the insurance and you will drop the policy.


• 2. You are in good health and will reapply for a new policy with new underwriting.


• 3. You are in poor health or dying and must keep the policy in-force to collect the death benefit. If you fall into category 3 you will pay dearly to keep the policy. You can reduce the risk associated with category 3 by reviewing your term insurance coverage on a regular basis.

Quoting term insurance is not a simple concept; the insurance company determines the appropriate price to charge by a process called underwriting. Underwriting is complicated because different companies may have different requirements to qualify for a certain underwriting classification. If you do not know the underwriting requirements for a particular company you are not likely to find the best price and you may well find you've been offered a rerate (higher price). So what is the solution to the underwriting dilema? Enlist my services and get a qualified and experienced life insurance agent that knows which companies will give you the best price for your underwriting issues!

Here is a partial list of issues that affect underwriting:

• Height/Weight
• Nicotine use: Cigarettes, Cigars, Pipe, Chew - how much, how long
• Family History: Any cancer or cardio disease prior to age 60 in parents, brothers or sisters?
• Driving history: Tickets, DUI?
• Blood Pressure
• Cholesterol Levels
• Liver Enzyme Levels
• Occupation
• Avocation: Hazardous sports - scuba diving, sky diving, motor vehicle racing, mountain climbing.
• Health History: Diabetes, Cancer, Heart Disease, etc. etc. etc.

Of course, it is still possible to get rerated because companies will be reviewing medical records and lab results that may be unknown to you and I, however, when we are armed with as many of the details listed above as possible, we will be accurate the vast majority of the time.

*Dividend paying policies may accumulate some cash, these kind of policies are rare or are generally associated with a permanent life insurance plan.

**Return of Premium Term Policies refund all premiums paid at the end of the term and may refund some of the premiums if the policy is dropped prior to term.

Like me, because you are building your financial future, you naturally want to know it is secure. Begin your insurance journey by framing your security on a foundation of term life insurance. You can get started by visiting my website www.jamesrichard.com

Human Life Value

My last post stated, "Buy as much term insurance as the insurance company will sell to you!" This will approximate your HUMAN LIFE VALUE....and no, I'm not joking!

Today, I'll answer these burning questions:

• "What is Human Life Value?"
• "Why Human Life Value?"
• "Isn't it expensive to have that much insurance?"

WHAT? - Human Life Value is the economic value you create for your loved ones while you remain on the planet. It is generally calculated by estimating your total earnings during your working years and determining a lump sum of money, that if invested today, would replace those earnings. Other factors like family size, estate taxes or special needs children can and do come into play to increase the need beyond human life value. However, to keep things simple, I'm going to stick to general needs.

WHY? - I feel a metaphor coming on here...Lets imagine that the government has legislated cloning. Each citizen may, at their own expense have one and only one clone created. Let's further image that you have gone through the expense of being cloned. This is no ordinary clone. This clone has your body, your mind and your memories and so you are able to send the clone into the world to create additional income for you and your family. A few years later, your clone is invited to a foursome at the country club and a freak accident on the golf course takes out your clone. By law you must now take care of the funeral expenses. (You can fill in your own details on the freak accident, this is a metaphor; remember?) OK, how much of the clone's income would you want the clone insured for? Did you answer, "All of it!"? If not, what are you going to do away with in your present life style?

EXPENSIVE? - How about an example: Bob's a big guy, (yes he's a little overweight) His wife Janet works outside the home and he has 2.5 children...ok, he has 2 children...just testing to see if you were paying attention. He is 40 years old and is making $50,000/yr. Bob's human life value is approximately $1,000,000.

Now this is where price is greatly affected by Bob's current health so we'll look at a range of prices for a 10 year term policy:

• Standard Non-smoker $62.75/mo.
• Standard Plus Non-Smoker $51.18/mo.
• Preferred Non-Smoker $39.61/mo.

Remember Bob is "a little overweight" so I'm ignoring Super Preferred Non-Smoker $29.26/mo. Tell me, would you insure the clone for the $Million, or for two dollars a day; what are you and your family going to do without?

Put me to the test and you'll see how inexpensive insuring your Human Life Value is at your age!

Coming soon: "Getting an accurate term insurance quote on the internet! or "How to avoid the annoyance of a rate-up!"

Like me, because you are building your financial future, you naturally want to know it is secure. Begin your insurance journey by framing your security on a foundation of term life insurance. You can get started by visiting my website www.jamesrichard.com

Why term insurance

It isn't unusual for people to make mistakes when buying life insurance. Think about it. How often does the general public buy life insurance? If you have life insurance; how long has it been since you bought that policy? What has happened to the purchasing power of that policy? What will it buy in today's dollars?

My point is... THE MAJORITY OF AMERICANS ARE GROSSLY UNDER INSURED; but why are they under insured?

Let's answer that question with a better question. "How much life insurance would you want, if it were free?" Did you respond; "as much as I could get?" That's how I'd respond!

All too often, I see situations where families are in jeopardy, because they have too little of the wrong kind of insurance. Now, there certainly is a place for permanent insurance...meaning Universal life or Whole life...and there are many situations where permanent insurance is most appropriate. (When?...that's a later post.)

So what should be the first consideration when purchasing a life insurance policy. "Buy as much term insurance as the insurance company will sell to you!" This will approximate your HUMAN LIFE VALUE.

To be continued...stay tuned for more on "Why Human Life Value"... Thanks for visiting

Like me, because you are building your financial future, you naturally want to know it is secure. Begin your insurance journey by framing your security on a foundation of term life insurance. You can get started by visiting my website www.jamesrichard.com

Welcome

As this is my first post, I simply want to welcome you to the blog. It's purpose is to provide you a source of insurance related information minus all the "BS". My intention is to share ideas with you and to field questions from you that will make you an informed and confident insurance buying consumer. Thanks for visiting.

Like me, because you are building your financial future, you naturally want to know it is secure. Begin your insurance journey by framing your security on a foundation of term life insurance. You can begin by visiting my website www.jamesrichard.com