Battle of the Sexes: Who Pays More For Life Insurance?

In a society where the battle of the sexes runs neck-at-neck for almost all cases, it's a hands-down winner in the race for who plays less for life insurance. The winner is women. But why?

A study by the Society of Actuaries done in February of 2001, concluded that testosterone wreaks havoc behaviorally and biologically on men's bodies, which leads to a higher risk of disease, as well as risk-taking behavior-like unsafe driving and drug and alcohol abuse. This is because testosterone promotes higher blood pressure while it lowers the effectiveness of the immune system. The greatest difference in mortality rates is seen at age 22, when testosterone is at its highest.

Traditionally, it was believed that women lived longer than men because most worked from home. But more recent studies have shown that women who are out in the working force actually live longer than those who are homemakers.

Additional studies have been done in an attempt to study demographic mortality rates of men and women. The conclusion of such studies showed that men typically have a higher rate of dying from cancer, diabetes mellitus, heart disease, strokes, pulmonary disease and infections-hence why men pay more for life insurance. The highest and more prevalent danger now, for both sexes, is cigarette smoking. Smoking takes more than nine years off a normal life expectancy, compared to a life expectancy of a non-smoker.

If risk-taking behaviors and bad habits are assessed early, and steps are taken to correct them, both men and women can expect to extend their life expectancy substantially. The better and healthier you are, the easier it will be to find affordable and adequate life insurance. If you are interested in receiving a life insurance quote, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class life insurance providers - helping you find the best life insurance coverage for you and your budget.

Better Yourself and Better Your Life Insurance Rates

If you're overweight, have high blood pressure, high cholesterol or a heart condition, you know what the best steps are to take in order to improve your condition. You should be eating healthier, getting plenty of exercise, taking medications as directed and seeing a doctor regularly to monitor your condition. But did you know that by bettering your overall health, you could also be improving your life insurance rates as well?

"When it comes to illnesses, the higher risk you are, the higher your life insurance payments will be," says David Roush, CEO of Insurance.com. "If you pay a higher life insurance rate due to a medical condition, you can possibly lower your premium by trying to improve your overall health. Many insurance companies are very receptive to customers trying to make changes in their life to improve their health, and often this type of behavior is rewarded with a price reduction."

Insurance companies focus on your health when it comes to life insurance. The less risk you represent, the better your rates are going to be. If you initially purchased a life insurance policy when your health wasn't so good, but you took the steps to get yourself up to and above par, you can then request a premium reduction. Just ask your insurance agent what specific requirements there are, and see if you've met them. There's no limit to how many times you can ask your insurance company to review your medical records to see if you meet the requirements for a premium reduction

Many times, insurance companies require proof from a doctor that the improvements that you've made have been maintained for a certain amount of time. More severe health problems, such as cancer or heart disease, warrant a longer improved health period requirement. If you have a condition that will never improve, such as heart-wall damage, you will more than likely never see a rate reduction.

Another step some life insurance companies take is to require you to undergo medical tests ordered by the insurance company. The bright side of the test is that if you are being tested for one thing and the insurance company finds something else wrong with you, your life insurance rate will not be affected by it.

If you are interested in saving money and getting a life insurance quote, log on toInsurance.com. Here you will be able to evaluate multiple rates from best-in-class life insurance providers - helping you find the best life insurance coverage at the most affordable price.

Federal Estate Tax Repeal: How It Affects You

The federal estate tax (a.k.a. the federal death tax) is a tax that applies to estates worth $1 million or more. Since 2002, the estate tax has gradually been on its way out. Exemption levels are increasing, while the tax rate is decreasing, and by the power of these elements combined, in 2010 the estate tax will be nothing more than a mere memory…for a little while at least. Once the federal estate tax is repealed, any inheritance that a heir sells will be subject to capital gain taxes, and the capital gain won't just be taxed on the value gained after the inheritance (like it currently is), but on value gained since the original purchase. These include property, stocks and bonds, which are currently considered capital assets.

With the new rules, if someone bought a bond for $20, then after you inherited it, its worth rose to $200, and then you sold it for $300-you would be required to pay capital gain taxes on the bond totaling $280. You end up paying taxes on the total amount you gained from the inheritance, minus the original purchase price. With the old rules, you would just pay $100 of capital gain taxes, because while it was in your possession, it grew $100 in worth.

This isn't a permanent feature though. In 2011, the estate tax will be back in action, but the exemption level will drop back down to $1 million or more, while inheritance will once again be taxed at 55 percent. Below is a copy of the Federal Estate Tax Repeal Schedule:

Federal Estate Tax Repeal Schedule
Year	Tax Rate	Exemption Level
2002	50%	$1 million
2003	49%	$1 million
2004	48%	$1.5 million
2005	47%	$1.5 million
2006	46%	$2 million
2007	45%	$2 million
2008	45%	$2 million
2009	45%	$3.5 million
2010	Tax Repealed	Tax Repealed

Exemption Clause
To make everything more complicated, there is an exemption clause in the tax legislation regarding the federal estate tax repeal. According to financial experts, this "exemption clause" in the capital gains tax could potentially be offset by an exemption of up to $1.3 million per individual, with an additional $3 million exemption for transfers to a spouse. How do you know what qualifies for this exemption? This exemption would work the same as the $20 bond example above, by changing the base value of asset to the current value at the time of inheritance.

Pros and Cons
One of the pros of the law is that long-term planning may become more stabilized. A con is that with the inheritance status change, record keeping and estate planning are going to be even more difficult. With new exemption clauses and spousal transfer issues, the federal estate tax code will be more complicated than it is now.

Should you brace for a big impact?
As long as your financial plan for the coming years is flexible, there is no reason to fret. It's too early to say whether or not you will be affected by the changes in the law, but if buyer's remorse for purchasing a second to die policy is eating away at you, remember this: having alternate life insurance policies will only help you and give your beneficiaries an added cushion when you pass away.

Keep in mind also that although the federal estate tax will be repealed, there will still be a state estate tax in effect. Depending on when you die, the value of your estate, your financial status and the laws that are in effect at that time, it may be beneficial for you to have a survivorship policy or alternate life insurance policy to aid your family in paying off any remaining estate taxes or debt that are not covered.

If the federal estate tax has you concerned, and you want to be sure you have adequate life insurance coverage in the event of your death, or if you are just interested in getting a life insurance quote, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class life insurance providers - helping you find the best life insurance coverage for you and your family.