Posts Tagged ‘retirement’
Sunday, April 25th, 2010
Senior Citizens are looking to life settlements during this uncertain economy. Life settlements are becoming increasingly popular for seniors looking for sources of cash. While largely unknown, life settlements can provide an immediate lump sum for unwanted 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.
With the advent of the life settlement market, policy holders now have a 3rd option. A policy holder can sell their life insurance policy in a life settlement for an immediate lump sum payment. The buyers, which are usually banks, hedge funds and other financial institutions, often pay sellers as much as 200%-500% more than the cash surrender value. The buyers take over the premium payments and the policy seller has no further obligation.
Life insurance is an asset, just like stocks, bonds and real estate. As such, life insurance owners have the right to sell it. The right to sell one’s life insurance has been upheld by the Supreme Court since the 1800′s.
The life insurance settlement process is relatively straightforward and easy. Contacting a life settlement broker for a free analysis and consultation is the first step. These licensed professionals can provide an estimated value for a life insurance policy on the secondary market. After completing an application and collecting some documentation, the policy will be offered to a number of prospective buyers for consideration. From there, the policy seller simply chooses the most attractive offer and collects the life settlement proceeds.
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: affordable life insurance, insurance, life insurance, life settlement, life settlement broker, retirement, viaticals
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Thursday, April 22nd, 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.
A significant component to establishing the life settlement value of a policy is the insured’s life expectancy. This is probably the most important factor aside from the policy’s face value itself in determining a life settlement value. The insured’s age, health, medical conditions, family history and gender are all evaluated to determine a life expectancy by buyers and outside medical appraisers. A policy insuring someone with a short life expectancy is more valuable than one insuring someone with a longer life expectancy.
A policy’s value on the secondary market is also affected by the specific type of insurance policy it is. Whole life, Universal life and convertible term policies are commonly sold in life settlement transactions. While convertible term policies have a negligible market due to their risk of the term expiring before the policy matures. Often Universal life policies are the most valuable since they sometimes have accumulated cash value that can be used to pay premiums and the ongoing premium obligations are flexible.
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.
An often overlooked factor in the life insurance policy valuation is the state of the life settlement market. Usually the purchasers of life insurance policies are large financial institutions. Their overall health, liquidity and disposition affect their ability to purchase policies on the secondary market. If these hedge funds, investment banks and retail investment funds are flush with investment capital the market usually sees policies carry a premium. Although, policy sellers may experience weak valuations if the life settlement market doesn’t have as many active buyers.
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.
Looking to find the best deal for a life settlement, then visit www.amritafinancial.com to do an instant life settlement appraisal online.
Tags: affordable life insurance, financial services, insurance, life insurance, life settlement, life settlement appraisal, retirement
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Thursday, February 25th, 2010
Are you planning for a secure retirement and eventual transfer of your estate? You do not have to be very wealthy to benefit from this. Let us look at one product that is becoming more noticed these days with advisors and people who are making future plans. This is called single premium whole life (SPLI).
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.
Look at the example of a healthy 70 year old who retired from the public school system. Her savings and teachers pension enable her to live well. But she also has another $50,000 she inherited from her own parents. She could take this cash and fund an SPLI for, let us say, $200,000. This way she sets up a nice estate to pass on to her kids and grand kids.
The example above is not meant to represent a real situation, but is just to illustrate how this product can be used. Your own numbers will depend upon several different things like your health, age, insurer, etc.
What types of people are happy with a product like SPLI? Well, it seems to work out very well for those with a few thousand dollars that they do not expect to need in the near future. And of course, it is an option for those who would like to take that money and turn it into more money for their estate.
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.
One other single premium life insurance advantage is the fact that this large payment will allow your policy to grow value fast. Have you seen normal policies where it may take 5 – 10 years to have a cash value? Once your policy has a cash value, you can use it to borrow against. You can also cash it out. So in addition to having coverage, you also have set up an emergecy fund for future use.
Many policies also have accelerated death benefit provisions. If the insured person is terminally ill, some of the death benefit can be used to provide care while that person is alive. Some also have nursing home provisions, so this can be a good way of planning for that possible need without another long term care insurance policy.
These policies are not for everybody. If you do not have a lump sum of money, you may be better off with a regular life insurance policy and monthly payments. You should also understand that SPLI may be treated differently by the IRS. And finally, if you think you may need to withdraw your money in a short time, it will probably not benefit you. Fees or surrender charges could reduce your actual cash quite a bit in the short term.
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Tags: affordable life insurance, elder care, estates, finance, insurance, retirement, seniors, single premium whole life, wealth, whole life insurance
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Friday, February 12th, 2010
When looking for life insurance quotes online, customers often only consider how much they can afford. Customers also need to determine how much life insurance is truly needed. Obtaining life insurance quotes online helps customers discover various life insurance products on the market. Online shopping is also beneficial in helping customers determine what they need and what is affordable.
To avoid overspending on life insurance begin by making a monthly budget. Calculate the total amount of monthly expenses and subtract this number from the monthly income. Do not forget to include things like car repairs and groceries along with housing and utilities. Subtract the the total amount of bill from the total income to determine how much money is left over. Once this amount is known, it becomes much easier to select a policy that fits easily within a budget.
To help save some money, those who are employed by someone else may want to inquire as to whether or not their employer offers life insurance as part of their benefits package. Many employers may have access with their insurer but fail to ask their employees if they would like to purchase coverage. Not only would this option save you from purchasing as much coverage on your own but it can potentially save a lot of money.
Purchasing life insurance can be tricky because many people have trouble determining how much insurance to purchase. Begin by evaluating who needs the coverage should something happen. How old are the children and what is the cost of them getting an education? A customer should work alongside his spouse to help determine what coverage will help provide for their children adequately. Evaluating their lifestyle helps customers clear up the confusion about how much insurance is necessary.
The amount of life insurance coverage you need should be based on the above factors. Having children costs money and the cost of their education must be taken into consideration as well. However, do not forget to factor in how much your spouse currently makes and whether they would be able to work after your death or whether they would have to stay home to raise the children on their own.
The housing needs of your family should also be considered when calculating how much insurance to purchase. How much is still owed on the home? What are the monthly mortgage payments? We all want to make sure our families have a roof over their heads, especially if we are taken away from them prematurely and that’s why getting life insurance quotes online is a great first step in insuring your family’s future financial security.
Look closely at current and future housing costs when looking for life insurance quotes online. Factor in how much monthly rent or mortgage payments affect your budget. Those who own a home should consider how much money is still owed on the property. Purchase a policy that will allow a family to be free of housing worries in the event of an untimely death.
Taking care of your family after an untimely death is important, but is the responsible thing to do. Getting life insurance quotes online is easy to do and after determining how much insurance is needed, you can rest assured knowing you have done everything to protect your family. This may not be the easiest topic to discuss with your spouse but it is one of the most important. Invite him or her to sit down and get life insurance quotes online today.
If you would like to obtain life insurance quotes at once or if you are looking for more free resources just visit this website, click here for: life insurance quotes online! Get a totally unique version of this article from our article submission service
Tags: affordable life insurance, annuity, business, death, family, finance, home, insurance, Liability, life, property, retirement, safety, term life insurance, whole life insurance
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Thursday, February 11th, 2010
Most people will be able to benefit from life insurance. It supports its beneficiaries financially and brings peace of mind to the policy holder. Here are a few reasons for why you need to get life insurance.
It essentially works like this: in return for your monthly premiums, the insurance company agrees to pay a lump sum to your beneficiaries (the person or people you designate to receive the death benefit).Most obviously, life insurance can provide for your family in the event of your death.
That means that even if you die, your family can pay off debt, keep their home, go to college – in essence, your family will be able to maintain its lifestyle without your assistance. Of course, all this depends on which type and how much life cover you choose to buy.Your beneficiaries are not restricted in how they use this money.
In some instances, the benefit may be used to pay off money you owe. Some people may choose to link their largest debts to a decreasing term insurance policy due to the magnitude of their debts. For instance, a decreasing term policy covering a home debt will charge lower premiums as the the home loan is paid off. The insurance company will pay the remaining amount to the bank should death occurs before the loan has been fully paid.
If you wish to your death benefit to cover more than outstanding debt, consider whole life insurance. With this type of cover, you make premium payments over the course of your life. You may choose to pay level payments or arrange to pay higher premiums at the beginning of the policy which will allow you to stop making the payments at 60, 65 or 85 and retain your coverage. In return for your payments, the insurance company will pay a death benefit in the amount you choose to your beneficiaries upon your death, regardless of how long you held the policy.
South Africa is only one of two countries where life insurance is available for people who have tested positive for HIV or have AIDs. The premiums are slightly more expensive and the insurance companies will need policy holders to continue with anti HIV therapy.
Make sure that you deal with reputable and dependable companies that are known to honor their payout agreements. Most experts recommend checking with more than four companies to find out about the different options and plans in the market.
Bear in mind that a life insurance policy may be the only protection your family has from financial hardship in the event if an unexpected death. The peace of mind coming from the knowledge that your family will be provided for more than offsets any inconvenience you may experience now.
Tom Martens is the content syndication coordinator at lifeinsurance-southafrica.co.za. South Arica’s leading Life Insurance portal
Tags: affordable life insurance, death, Estate planning, insurance, life, Life Cover, life insurance, Life Protection, medical, retirement
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Tuesday, February 9th, 2010
Could you live ten days without money? Try it and find out what an asset money really is. Assets have a tendency to multiply. The problem is hardly anybody treats their money as an asset.
It has been written that “The value of an asset increases exponentially while the value of your labor only increases incrementally.”
Most people are concerned about the rate of return on their money when they should be concerned about the return of their money. And so they lose the real value of their money by giving it to someone else.
What 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?
It has been written that “you can’t multiply wealth by dividing it.” Habitually letting others have first right to your money by depositing your paycheck into their bank, gives them control over your money and not you. This will wind up costing you thousands of dollars, if not more, over time. Each time you give up management of your money to someone else you lose wealth. When you allow others to manage your money your money now can be subject to account charges, service fees and management fees. Plus the managers of your money will make money off your money and pay you very little in comparison to what they are making.
Nobody is financially independent until they have mastered the concept as taught in the book Becoming Your Own Banker, by R. Nelson Nash. Nash teaches a concept called Infinite Banking which will teach you how to control and benefit from the financing equation which is as follows:
You lose money whenever you buy anything. You lose money that you could have earned in interest when you pay cash, or you lose the interest you have to pay someone else to use their money to make your purchase.
When you Become Your Own Banker, you recover the cost of interest you pay out when you borrow from your own banking system and pay yourself back. You are now using your own money as an asset and it will multiply.
Dr. Tom 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 watched his Infinite Banking Video Then Contact him he can help you This and other unique content ” articles are available with free reprint rights.
Tags: affordable life insurance, Bank on Yourself, Banking, Becoming Your Own Banker, 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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Thursday, February 4th, 2010
The internet has made it easier than ever to find affordable whole life insurance and term life insurance quotes online. The free flow of information that the internet provides not only makes it easy to find quotes, it also drives down prices as various insurance providers compete with each other. Getting an online quote is the best way to make an informed decision on life insurance before the purchase.
Let’s take a look at the choices you have with life insurance. First of all life insurance is certainly a must for everyone. Who wants to have a catastrophe occur while leaving loved ones unprotected when they need financial security the most? It’s a smart idea to carry some type of life insurance to ease the burden on loved ones who are already dealing with a stressful time.
There are two common types of life insurance. These types are whole life insurance and term life insurance. Whole life insurance is valued in cash and often doubles as a savings account. Term life insurance will pay a fixed amount when the insured party dies.
When searching for life insurance quotes online, it is often best to set aside some time and think about what type of insurance is best catered toward your specific needs. Once that is sorted out, it is time to start comparing online quotes. Some people find that term life insurance with a separate savings account is the way to go, for others this is not the case.
Quality life insurance packages will cover funeral and burial expenses, income replacement, and estate taxes. These are the most important things that life insurance covers. Taking out a policy that covers funeral costs and burial costs is extremely important as these two post-mortem necessities are often extremely expensive and are sometimes impossible for a family to afford without life insurance. Other coverage options should be carefully thought out prior to searching for life insurance quotes online.
Traditionally, the family member that makes the most money should take out the life insurance policy. This is because the family with the highest individual income normally leaves the largest void upon death. It is important to analyze your individual family financial situation and make an informed decision. Sometimes taking out more than one policy is the best course of action. There are a plethora of online guides designed to facilitate these types of difficult decisions.
Of course, there are other things to take into account when deciding on a policy. Single mothers need to worry about bills such as electric, heating, and water as well as childcare expenses. It may also be beneficial to purchase mortgage or credit insurance to pay off debts after the death of the debtor. Normally, children and singles don’t need life insurance provided that they have no dependents.
While securing insurance quotes online, keep in mind you should buy about 12 times the annual salary of each family member as a starting point. Getting life insurance quotes online can be compared to each other and are very easy to do. There are even online insurance brokers who can pull together quotes from several different companies.
If you want to receive life insurance quotes at once or if you are searching for more free resources just visit this website, click here for: life insurance quotes online! You are welcome to reprint this article – but get your own unique content version here.
Tags: affordable life insurance, annuity, business, death, family, finance, home, insurance, Liability, life, property, retirement, safety, term life insurance, whole life insurance
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Friday, January 22nd, 2010
Are you shopping for life insurance? It can be tough to pick one best type of coverage for you, and for the security of your family. While you are considering, here is some more information that may make your choice easier.
We know that term is usually cheaper. That is because it does expire after a time period, and because it does not normally grow any cash value. It is considered pure insurance.
But on the other hand, whole life covers us through our entire lives. As long as we keep the policy in force, it will provide coverage on our lives. It also can build up a cash account or cash value. This can be borrowed against, cashed in, or used in senior life settlements. This makes whole life attractive too.
Now you must consider one more term life rider that may make a policy more attractive. Return of Premium (ROP) means that you can get all of your money back if you survive your policy. If you buy a 10, 20, or 30 year policy, and you live past the end date, you can get a check back at the end!
Think about this simple example. Mrs. Bradshaw took out a twenty year policy with a half million dollars in death benefits. At the end of two decades, she might be happy to be alive. But she cannot get any benefits from her policy.
But she might decide to pay a bit more for the ROP rider. Then she can pay on her policy for twenty years, survive until after it expires, and collect the total amount of her premiums paid inn one check at the end.
Understand that the policy will either pay out a benefit or it will refund premiums. If the insured person would pass away in year 8 of the policy, and a spouse or child collected, then there would be no premium refund.
But this rider can be a useful tool to help people do some long term planning. Does this make term the best choice? It is impossible for me to give everybody one right answer. The best choice for you, and your family, depends upon many factors. But the more you know, the better able you will be able to make the best choice for you!
Visit us to look for return of premium term insurance in your city or town. We want to help you feel good about your decision, and find the best types of life insurance for you.
Tags: affordable life insurance, finance, insurance, life insurance, retirement, savings, term life insurance, whole life insurance
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