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Home » Business And Finance Articles » Life Insurance Scenarios

Life Insurance Scenarios

Most individuals have some form of insurance, whether it is for their vehicle, home or health. But it is important, however, not to overlook the benefits of life insurance, which pays money to beneficiaries when the insured dies.

HOW LIFE INSURANCE WORKS

Typically, the insured person makes payments into the plan - called premiums - in exchange for a "death benefit," the money that is paid at the time of death. If you are considering purchasing life insurance there are a few potential problems you need to be aware of.

DIFFERENT TYPES OF LIFE INSURANCE POLICIES

There are numerous types of policies you can choose, but life insurance policies generally fall into three categories - protection, long-term savings and estate conservation.

Many people purchase life insurance for the purpose of providing for their dependents in the event of their death, thus protecting your existing stream of income. If you are in the protection category you may want to consider term life insurance, which offers only a death benefit for a specified period of time such as until you retire.

If long term savings is your reason for purchasing insurance, you may consider a cash value policy. With this type of life insurance, your beneficiaries receive a payment upon your death based on the full amount of coverage , not the cash value of the plan. The value of these plans is usually tied to an underlying investment portfolio and that is how funds accumulate.

Another added benefit is that these policies usually allow a holder to borrow from the accumulated funds in the plan without taxes or penalties. Depending on the policy, you can typically withdraw a portion of cash value and not pay it back, or even cancel the policy and receive the money that has been accumulated over the years.

USE LIFE INSURANCE FOR ESTATE PLANNING

Life insurance can also be used as an estate planning tool, especially if your goal is to preserve wealth for future generations. This type of policy covers one or two lives; the cash generated by these plans typically helps your heirs pay estate taxes and provide otherwise.

Now you have to decide how much coverage you need to provide the amount of income your family will need in the event of your death. After all, your goal in purchasing life insurance most likely is to ensure that income continues for those who are now dependent upon your income.

WHO NEEDS LIFE INSURANCE?

It also is important not to ignore the need for life insurance protection in a single or dual income family. The death of either spouse could create a financial strain on your family.

And here is another random article you might be interested in...

Customer Service Is Dying- and I'm Not Feeling So Good Myself

Have you ever called a company and been greeted with the phrase "Hold, please"? How do they know you can hold? They don't even know who you are. Maybe you can't hold; maybe you have 10 seconds of juice left on your cell phone and your hair is on fire. Then you finally get someone on the phone, only to be told, "I can't actually help you; I'm just paid to apologize, and I'm really sorry about that."

Being frustrated by a lack of customer service is nothing new. It just seems that in the last few years, companies have become more innovative when it comes to not helping you solve your problems. I recently asked a hotel employee to help me with my luggage. He told me to hold on and he would have someone look into it. I thought, "Hey, you're someoneâ€"why can't you look into it?" I realize that we are as busy as we have ever been, and that many younger people were not brought up in the traditional culture of customer service. But none of these excuses will protect your business in today's challenging economy, where customers are questioning value even with companies they have known for years.

Maybe it's time to get back to basics and make service a real priority. Sure, plenty of companies claim to offer great customer care. But raising your service standards requires more than a promise; you need to set concrete goals and establish effective procedures to meet them. Whether you own the company, handle key accounts or just accidentally encounter your customers, you'll reap huge benefits by applying the following customer service goals:

On the Phone

• Be friendly! No one wants to send a check to people who seem to be bothered by their call.
• Ask permission before putting a caller on hold. If a customer is greeted with "Hold, please," what the customer really hears is "Hang on! Someone much more important than you just called in."
• Keep it professional. Smoking cigarettes, slurping a drink, and playing the drums on your desk makes callers feel like they are getting advice from a guy in a bar.
• Make sure that callers don't have to repeat themselves. Someone who has explained a problem three times to three different people hangs up angry, whether or not the problem is solved. All the Time
• Create a positive image to attract business. Remember that squirrels are just rats with good publicity.
• Display compassion for people who are upset. People who don't think you care won't value your solution.
• Be very clear when you explain a process. When customers don't know what you're talking about, they assume you don't either.
• Do what you say you're going to do. When you don't follow through, people don't think you have forgotten. They think you don't care.
• Know when to bring in someone else. When it becomes clear that the customer thinks you are the problem, set your ego aside and send in a fresh face.
• Establish a simple, easy-to-implement, customer service plan. When something is really complicated, it's hard to tell if it's working.

Well, I think customer service will surviveâ€" and I feel better now that I've written this articleâ€"but it's important that we help nurse that ailing customer service to a full recovery, ensuring a healthy prognosis for today's businesses. The companies that attract and keep the best customers are usually the most effective at managing expectations and emotions. Successful companies train their people to anticipate customer needs and to solve problems before the customer knows they exist. But before you can do any of this, you have to start with the basics. If you really want customers, set customer service goals. Remember, if you don't know where you're going, any road will take you there.

Garrison Wynn is a nationally known speaker, trainer, and coach. He is the President and founder of Wynn Solutions, specializing in The Truth about Success.

www.wynnsolutions.com