Posts Tagged ‘retirement’
Tuesday, August 31st, 2010
Term life insurance, as its name suggests, is basically a sort of life insurance policy. At its simplest level, it promises your payment will be fixed at a set rate for a set period of time. This is known as the “term.” After this “term,” though, your payments are likely to change leaving you with no choice other than to meet them or to stop with that policy.
It is purely a life insurance policy in that it will not pay out if you are injured or something similar. It will only pay out in the event of your death. Payout will be to your named beneficiary in most cases, unless there are reasonable legal grounds for a dispute.
As there are with all types of insurance policy, there are circumstances in which term life insurance policies will not pay out even if the policy holder dies. Let’s say, for example, that the premiums are not up to date and policy holder was behind or there was a breach of one of the terms. In almost all life insurance policies, there is a clause stating there would be no pay out in the event of suicide.
This type of life insurance policy is particularly useful for people who fear that their death would leave a large number of expenses behind that their family might struggle to meet. These expenses could be the cost of the funeral, covering debts or mortgages left by the policy holder or even raising children they might have left behind.
It often works out much less expensive than a permanent life insurance policy and it sometimes used to “bridge” for those concerned about the possibility of leaving those expenses with their families. For example, someone who is just a few years away from retirement may well decide to take out a term life insurance policy just until they reach retirement, at which point they feel they would have enough money to cover these expenses themselves in the event of their death.
Find out more about term life insurance.
Tags: cheap life insurance, death, Finance, funeral expenses, Insurance, life insurance, retirement, term life insurance
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Thursday, August 19th, 2010
If you are middle aged, you can still find plenty of term life insurance companies who want your business. But keep in mind that you could have very different needs than a younger person. Purchasing a policy at 60 is not the same as purchasing a policy at 35. For one thing, a younger person will pay less for the same coverage. This changes the way older people may think about life insurance.
Lots of things change between youth and middle age. At 25 to 40, many families still need to protect younger children and have years to pay off a home mortgage. At 50 or 60, some of these obligations are gone, or at least they are a lot closer to being taken care of. Since premiums for longer term policies are quite low for younger adults, if they are fairly healthy, it is common for younger people to price thirty year term life.
But middle aged peope have another persepctive. They may only need the higher amount of coverage for a fixed amount of time. Perhaps they only have a few years left on the mortgage, or their kids are almost through with their eduction. Premiums cost more as we get older, and so it only makes sense to think about ways to lower that cost. The price difference for a 10 year term policy and a 20 year term policy will be more signifigant. If they can even find a 30 year policy, it will cost even more.
None of us really know what our lives will be like in 10 years though. But you can find a very common option on 10 year term policies that allows you to convert them to whole life. This way you can take advantage of cheaper premiums today. But you can still have the option to buy more coverage later.
This option has worked out well for many people. The term premiums we pay to today will be cheaper. This is because it is term, and also because it is only for 10 years. But we will still be able to choose to extend coverage in the future if we need it.
We know how to look for10 year term rates no matter how old you are. Our fast and free online quotes will guide you to the best US term life.
Tags: 10 year term, 20 year term, Finance, Insurance, life insurance, life insurance terms, mortgage kids, retirement, term life insurance
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Thursday, August 12th, 2010
Death is a difficult life experience that all of us face at one point or another. The prospect of our own death is one that we often prefer to ignore and dismiss. If you can set aside your discomfort of discussing these inevitabilities, you will be able to anticipate areas in which you can ease the burden of your own passing.
For your loved ones, there are few of life’s struggles that are as challenging as dealing with death of a family member. The pain associated with death is difficult for almost everyone to deal with. Mourning after death is both common and anticipated.
As you approach the point in your life in which you own passing may soon occur, you begin to wonder about the effect your death will have on your loved ones. There isn’t much that you can do to comfort them upon your death, and there is little that can be done to help ease the burden they will face.
One of the simplest ways, however, that you can lighten their load is to prearrange and make the adequate preparations for your funeral and burial. This can be achieved in a number of ways, the easiest of which is through a burial insurance contract.
Many people do not realize the significant cost of funeral services. Not only are you paying for the items that you would expect such as the casket and burial plot, but there are a number of unanticipated expenses as well. The cost of the funeral can easily range upwards of $10,000. Using burial insurance is one way in which you can help to cover these financial details and provide a least a little comfort once you are gone.
The common reaction this price tag is shock or awe. When your family is hit with this bill unawares, your passing can add a new level of stress, worry, and despair. If your family is left scrambling to scrape up the cost of your death, a new dimension to their sorrow is unnecessarily added.
Burial insurance is designed to cover the costs of the funeral and can be established to either pay the death benefit to a beneficiary or directly to the funeral director. When the funeral director receives the funds, he is able to arrange the rest of the funeral.
Burial insurance can insure for the cost of all of the funerals expenses, covering the casket, funeral director fees, burial plots, etc. Having this type of policy allows your loved ones to make the arrangement that you would want for your funeral, and does not restrict them to what they can afford at the time of your death.
Before you take commit to burial life insurance, make sure to visit Owen Matthews online at the Life and Health Guru. The staff is dedicated to providing good, unbiased insurance information and cover topics ranging from general insurance to guaranteed issue term life insurance.
Tags: burial insurance, business, family life insurance, Final Expense Insurance, Finance, funeral insurance, funerals, guaranteed life insurance, Insurance, life insurance, Money, People, Personal Finance, retirement, seniors
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Tuesday, July 6th, 2010
Over half of all seniors are unfamiliar with life settlement transactions. Of those that have heard of them, many do have an accurate understanding of the process or the transaction. Misunderstandings and misconceptions unfortunately get in the way of innumerable seniors cashing in their life insurance policies for large lump sums.
The life settlement industry is an evolution of the viatical industry that sprung up in the 1980’s and 1990’s to buy policies of AIDS patients. Now the life settlement industry overwhelmingly serves healthy senior citizens. Insureds absolutely do not need to be in poor health or have a terminal illness to qualify for a life settlement.
Medical exams or in person health evaluations are not part of modern life settlements. While life settlements do involve an analysis of an insured’s health, this is accomplished by third party actuaries only reviewing medical records. The documentation is ordered by a life settlement broker and the policy seller has no burden in obtaining the records other than signing a release allowing for their request.
Many people assume that a life insurance policy must have extensive cash value in order to qualify for a life settlement. The opposite is actually true. While cash value in some policies can be used by buyers to pay future premiums, it also presents an obstacle for purchasers. A life settlement offer must exceed the cash value of a policy or the seller will not be sufficiently motivated to participate in a life settlement. Therefore, policies with too much cash value will be too expensive for potential purchasers.
Life settlements are fairly straight forward transactions once the misconceptions are eliminated. Using a good, licensed life settlement broker is always key in having the best experience and gaining the highest offers. A broker should do most of the work and present the offers for a seller’s discretion.
Want to find out more about a life settlement, then visit The Life Settlement Monitor blog.
Tags: family life insurance, Finance, Insurance, life insurance, life settlement, Personal Finance, retirement
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Wednesday, June 30th, 2010
Dying is an unfortunate reality for everyone and life insurance is designed to protect those left behind. Financial hardships resulting from a family member’s death can be devastating. Life insurance provides some security from the loss of a loved one’s financial contributions. They pay a lump sum to the named beneficiaries when the insured dies.
Today term insurance is one of the more widely purchased life insurance products on the market. It provides life insurance for a specified period of time. Term policies are typically issued for periods of 10, 15, 20 or 30 years. However, the length of coverage varies from product to product. Term policies are attractive because they often provide the lowest cost coverage of any life insurance product. Although, once the term is up, insureds are left without coverage. Insureds often find buying new insurance after term insurance quite expensive since their advanced age is considered a higher risk by carriers.
Whole life insurance is a very popular type of life insurance. It is a permanent policy, meaning the insurance remains in effect until the insured dies as long as the premiums are paid. It carries the additional benefit of building cash value in a set aside account. The cash value can be borrowed against by the policy owner and used at their discretion.
Like Whole life, Universal life insurance is a kind of permanent insurance. Universal life also builds cash value in a separate account. Universal life is thought to be a flexible life insurance because the accumulated cash value can be used to pay premiums. In addition, when premiums are not paid and cash value is not available, the policy may have the death benefit reduced to stay in force. Universal life insurance is becoming one of the most popular forms of life insurance today because of the flexibility it offers.
Life insurance provides a peace of mind that financial security won’t compound the issues associated with someone’s death. There a wide variety of policies available to suit everyone’s budget and particular needs.
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Tags: family life insurance, financial planning, Insurance, life insurance, retirement
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Thursday, June 3rd, 2010
Even with talk of a double dip recession, those in the life settlement industry have reasons to be optimistic. While the past two years have been difficult, industry insiders are beginning to see some light at the end of the tunnel. While nobody is celebrating, there are many reasons for measured optimism.
While many life settlement providers have not been buying policies in the recent past due to a lack of funding, some are starting to report good news. Inactive providers are waking from their hibernation with new capital to spend on American life insurance policies.
The Amrita Life Settlement Index reported a steep gain in April based on increased buying activities by life settlement providers. Most noticeable was a sharp increase in the amount of bids being submitted for life insurance policies on the secondary market. The increased competition suggests a strengthening market overall. A stronger, more competitive market will benefit sellers with higher sales prices.
At the dawn of 2010, many hoped that Europe could provide some liquidity into the United States life settlement market. A recent European trade mission along with strong interest from European institutions were interpreted as clear signals that the American secondary market for life insurance policies would rev up this year. Many were optimistic that foreign investment would add liquidity to the American market and somewhat normal buying activity would resume. Europe’s most recent economic crisis has measured those hopes. The Euro dollar is on an extended slide against the US dollar creating an additional incentive for European investors of US life policies. However, the underlying European economy is undermining the investment climate there and eroding the ability of institutions to make these kinds of long term investments. European investment banks and funds are now concerned with liquidity as they watch other assets lose value during the PIIGS crisis.
While European money may not come to the rescue of the US life settlement market anytime soon, there are many reasons to believe a recovery is underway. Based on current market activities there are signs of a more balanced equilibrium between buyers and sellers. Unfortunately, only time will tell if the current wave of optimism is well placed or misguided.
Learn more about a life insurance settlement . Stop by Kelly Ramirez’s site where you can find out all about selling your life insurance policy.
Tags: business, family life insurance, Finance, Insurance, life insurance, life settlement, retirement, viatical
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Wednesday, April 21st, 2010
With uncertainty in the economy, seniors are looking to non traditional sources of money for their retirement years. A growing number of seniors are turning to the novel life settlement market for cash. While many don’t know life settlements are available, they offer large and readily accessible sums of money from unwanted or unneeded life insurance policies.
Life insurance offers great financial security for when someone dies. Although, most believe that unwanted life insurance has little value outside of its original purpose. Most believe there only two things that can be done with unwanted life insurance. Either surrender the policy to the life insurance carrier or let the life insurance policy lapse. If the policy lapses the owner gets nothing. If the policy is surrendered to the insurance carrier, the policy holder usually gets very little.
Life settlements offer a third and more attractive option. A life settlement occurs when someone sells their existing life insurance policy for an immediate lump sum payment. The seller benefits by getting instant money which is often 200%-500% more than the cash surrender value offered by the insurance carrier. While the buyer, often a financial institution such as a bank or investment fund, pays the ongoing premiums and receives the death benefit when the policy matures.
Unfortunately, many seniors don’t realize that life insurance policies can be bought and sold by their owner, like any other asset. The right to sell a life insurance policy has even been upheld by the U.S. Supreme Court. In fact, life insurance policies have been sold in the USA dating back to the 1800’s.
The first step in selling a life insurance policy is to contact a life settlement broker. During an initial consultation, they can provide free estimates of your policy’s life settlement value. Once an application is submitted, life settlement brokers will solicit buyers for your policy. Then a policy holder can choose the best offer and receive their payment.
Want to find out more about a life settlement, then visit Kelly Ramirez’s site on how to choose the best life settlement broker for your needs.
Tags: family life insurance, Insurance, life insurance, life settlement, life settlement broker, retirement, viaticals
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Tuesday, April 20th, 2010
Financial planners and retirees are starting to embrace life settlements as a tool to generate income for seniors. Determining the value of a life insurance policy before starting a life settlement is an important first step in selling one’s life insurance. The value of a life insurance policy is affected by a numerous factors relating to the insured, policy and policy owner among other things.
The personal information of the insured is one of the most important factors in determining a life insurance policy’s value. Obviously the shorter the insured’s life expectancy, the more the valuable the policy becomes. The insured’s age, overall health, sex and even family history play a role in valuing a policy. These characteristics are evaluated by potential buyers and independent medical appraisers to project a life expectancy.
The type of life insurance policy also plays into the valuation. While, non convertible term policies are not typically sold on the secondary market, Whole Life, Universal and convertible term policies are actively being purchased. Usually the Universal Life policies are the most sought after as they offer flexible payments and sometimes have accumulated cash value which can be used to pay premiums in the future.
Another important factor in valuing a life insurance policy are the owners themselves. If the owner has a divorce or bankruptcy on their record, some buyers may fear the policy will be claimed by a creditor or former spouse. The owner’s state of residence also affects a life insurance policy’s value. Since states regulate the secondary market of life insurance, some states are more restrictive than others about the transaction and investment aspect of a life settlement. The competitive environment that results affects the offers that buyers ultimately make to policy sellers.
The life settlement market itself has an impact on the value of life insurance policies. The buyers of life insurance policies are typically large financial institutions such as retail banks, hedge funds and investment funds. When these institutions have capital to deploy the life settlement market becomes more competitive and policies carry a premium. However, the financial institutions don’t have as much money to invest in policies, the life settlement market may see discounting of policies.
Deciding to sell one’s life insurance is an important decision. The most important part of that decision is understanding how much a policy is worth and taking the steps necessary to maximize its value.
Want to find out more about a life settlement, then visit Kelly Ramirez’s site to get a free life settlement appraisal.
Tags: family life insurance, financial services, Insurance, life insurance, life settlement, life settlement appraisal, retirement
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Monday, March 1st, 2010
Would you like to be able to take a lump sum of money, and then turn it into a larger sum of money so you could pass it on to the next generation? If you have spoken to a financial advisor or insurance agent, they may have mentioned SPLI (Single Premium Life). This product can work well for some people.
Single premium whole life insurance is not much different than the regular policies you are used to. But instead of making multiple payments every month, quarterly, or annually, you simply fund it with one large upfront payment.
That money, paid at the start, will guarantee coverage for your whole life. What you have done, really, is to turn a sum of cash into a much larger amount of coverage on you. This is how you can take one amount of money, and turn it into a larger estate to pass on to your beneficiaries.
Let us say that a retired school teacher is comfortable with her pension and savings. In this example, she just inherited $22,000 from an uncle, and is certain that she will not need to use this money to enjoy her life. She may be able to take this amount of money and buy a $100,000 SPLI policy so she can have a very nice estate to pass on to her son.
The paragraph above is only meant to illustrate how this works. The amount of cash you would have, and the death benefit you could buy, depend upon different things. As with any other life insurance, your premium and coverage amount will depend upon age, health, etc.
Would SPLI be something for you to think abuot? If you have some money, and would like to be sure you can leave more money to survivors, it may be something to think about. It works best if you are sure that you do not need that money to live on, especially in the next few years.
Be sure you will not have to use the money for a few years. In the first few years, policies can impose fees and surrender charges. So it is probably not the right life insurance if you are not sure if you will need the money to live on.
Another advantage to the owner is a SPL policy’s ability to grow a cash value quickly. If you can leave the money alone for the few years you will need to get past surrender charges, you can have a nice place to borrow money from. You can also cash the policy in. The cash value should grow quickly since the insurance is already funded by the initial payment!
Another feature is the fact that many policies allow you to accelerate the death benefit in case of a terminal illness. This way, a person could use the money if they need it. Some also have provisions for withdrawing part of the cash value in case of nursing home confinement.
But SPLI is not good for everybody. There are some disadvantages to consider. You do need the money to fmake that first, and only, payment. If you do have to surrender early, you risk losing money for fees. The IRS treats these a little differently than regular life policies too. You may not enjoy all of the tax benefits.
Get more information on questions like Why Retired People Purchase Life .
Tags: elder care, estates, family life insurance, Finance, Insurance, retirement, seniors, single premium whole life, wealth, whole life insurance
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Monday, February 22nd, 2010
Money is an asset! Try living a week to 10 days without it and you will appreciate just what an asset it really is. But most people do not treat money like an asset and therefore they destroy moneys best quality. You see money treated as an asset multiplies exponentially.
Someone once said, “The value of an asset increases exponentially while the value of your labor only increases incrementally.”
The Rate of return on their money, for many, seems to be more important than the return of their money. But the real value of money is destroyed when rate of return is the focus. This is because someone else is in control of the actual money.
Think about this:
Your paycheck. Where do you deposit it?
A commercial bank or one that you own?
Do you or someone else profit the most from this way of doing business?
Do not ever think that you can multiply your wealth by dividing it up. Allowing others to have access to your money by placing it on account at their bank, gives that bank control over your money. You automatically become second in command of your money by doing this. When the bank controls your money, you do not and they make money off your money while you pay the fees, the charges and all other costs associated with banking and financial institutions.
That is why everyone needs to read about the Infinite Banking Concept in the book Becoming Your Own Banker by R. Nelson Nash. Nash explains how, you can take control of your money, which is the asset that can build real riches and lasting wealth. This process is called the Infinite Banking Concept or IBC. IBC allows those who utilize Becoming Your Own Banker, aka BYOB, to recover the costs associated with the banking equation. What is the banking equation you might ask? The banking equation is simply this:
You finance everything that you purchase in life. You either pay someone interest to use their money to make a purchase, or you give up the interest you could have made on your money when you make a purchase with your own money. Either way you lose.
But when you practice the Infinite Banking Concept, you can pay cash for your purchases and earn the interest that banks or finance companies would have otherwise earned off you. This is because you are now using your money as an asset and the growth becomes exponential when compared with what happens when you put your money in a bank owned by someone else, or with an investment firm.
Tomas McFie is a professional financial coach and is widely known for helping people recover the money they currentley spend. Don’t Make another payment until you have viewed his Infinite Banking Video Then Contact him he can help you
Tags: Bank on Yourself, Banking, Becoming Your Own Banker, family life insurance, Finance, financial planning, IBC, Infinite Banking Concept, investing, life insurance, Money, retirement, Riches Wealth and Money, Taxes, Wealth Building and Protection
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