Posts Tagged ‘retirement’
Wednesday, April 21st, 2010
Life settlements are becoming a much utilized tool of financial planning and source of retirement income. Inevitably, the first question asked by potential policy sellers is regarding the potential life settlement value of their life insurance. There are a number of things that contribute to the value of a life insurance policy on the secondary market.
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.
The life settlement value of life insurance is also affected by the type of policy. Non convertible term policies are not appealing on the market, but Universal, Whole Life and convertible term policies are sought after. Universal life policies are often the most attractive to buyers as they provide a great deal of flexibility in premium payments and often have cash value that can be accessed by the buyer.
Policy owners are also a component to the valuation of a life settlement. If a policy owner has previously declared bankruptcy or been divorced, buyers may devalue a policy. Some potential buyers are concerned that a former spouse or creditor will attempt to claim the life insurance policy. In addition, the value of a policy can be affected by the state of residence of the policy seller. Depending upon the type of life settlement transactional environment a state’s laws create, a policy can be given a premium or receive a discount by buyers.
Something that many people don’t consider as part of the life settlement appraisal process is the overall condition of the life settlement market. Although life settlements are an uncorrelated asset class, the industry is very much affected by economic conditions. The purchasers of life insurance policies on the secondary market are financial institutions. The ability of these organizations to purchase policies depends upon rates or return in other asset classes, liquidity and even current public opinion.
Understanding the many things that go into valuing a life insurance policy as a life settlement, will help policy owners decide when to consider selling their policy. Recognizing the many factors that contribute to a life settlement offer may ultimately help policy sellers maximize their life settlement value.
Want to find out more about a life settlement, then visit Kelly Ramirez’s site to get a free life settlement appraisal.
Tags: best life insurance, financial services, insurance, Life Insurance, life settlement, life settlement appraisal, retirement
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Sunday, April 18th, 2010
Seniors are becoming more interested in non traditional sources of retirement income during these unstable economic times. One new strategy for seniors seeking cash are life settlements. Seniors with unwanted life insurance policies are now selling them for instant cash in life settlements.
Life insurance policies are usually purchased to provide much needed financial security in the event of someone’s death. When a life insurance policy is no longer needed many people mistakenly assume the policy has little or no value. In years past policy owners had two options for their unwanted life insurance. First, they could stop paying premiums, which then allowed the policy to lapse. In this scenario, the policy owner gets nothing. Secondly, some life insurance allows for the policy to be returned to the insurance carrier for the “cash surrender value”. Unfortunately, the cash surrender value is often only a nominal amount of the policy’s death benefit.
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.
Contacting a life settlement broker is usually the first step of the life settlement process. The life settlement broker can provide a free estimate and negotiate offers with potential financial institutions interested in buying life insurance policies. The life settlement brokers usually require an application and then they will collect the other medical records and insurance documentation on their own to get the process started.
Learn more about a life settlement. Stop by Kelly Ramirez’s site where you can find out all about a life settlement broker and what one can do for you.
Tags: best life insurance, insurance, Life Insurance, life settlement, life settlement broker, retirement, viaticals
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Wednesday, February 24th, 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.
This sound simple, but it does make this product a little different than other types of coverage you may have purchased before. It is whole life insurance and that one payment can guarantee lifetime coverage. In addition, the amount of the face value you can buy will usually be much larger than the actual cash you put into it. So this may be a great option if you want to turn a smaller lump sum of money into a much larger inheritance.
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.
Now understand that the price you would pay for a particular policy will depend upon many different things like your age, health, the insurance company, etc.
Who should consider single premium life (SPL)? It is something to consider if you have a lump sum of cash that you would like to leave to your heirs. Your children, grandchildren, or a favorite charity could be the beneficiaries.
Be aware that your insurer will probably charge you for early surrenders. So if you do have to cash out before the term of these fees, you could lose money. Policies are different, so make sure you know how this will work for you.
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!
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.
There could be some disadvantages to single premium life insurance. Remember that early cash outs can incur surrender fees. You lose some of the tax advantages of regular life policies too. And of course, you do need to have a lump sum of cash to fund it.
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Tags: best life insurance, elder care, estates, finance, insurance, retirement, seniors, single premium whole life, wealth, whole life insurance
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Wednesday, February 10th, 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.
It has been said that, “The value of an asset increases exponentially while the value of your labor only increases incrementally.”
The return of your money is more important than the rate of return on your money. Those that fail to grasp this concept lose the real value of money by losing the control of their money.
What about this:
Where does all your money go when you get a paycheck?
Into a Bank owned by someone else?
Does your money make you or the Bank the most because of this transaction?
The late Adrian Rogers argued that you cannot multiply wealth by dividing it. Ritually, putting your money into a Bank owned by someone else gives someone else control of your money— not you. This simple process— the separation of you and your money— can be very costly. Remember, every time you lose control of your money, you lose money! Once you give the control of your money to others they can assess fees and service charges, use your money to make themselves money, or lose your money and pay you little or nothing for compensation.
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 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.
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.
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 viewed his Infinite Banking Video Then Contact him he can help you
Tags: Bank on Yourself, Banking, Becoming Your Own Banker, best 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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Tuesday, February 9th, 2010
Life insurance shopping can be confusing, especially because customers do not realize the benefits of looking for life insurance quotes online. The most important elements to life insurance is the amount of insurance actually needed and what is affordable. Customers looking for new life insurance should get quotes online. Online quotes help people determine which policies offer adequate coverage at an affordable price.
The most important factor in determining how much life insurance you can afford is by making a personal monthly budget. For each individual, the amount will be different. Simply calculate the total amount of your monthly bills and determine how much money remains. This will help to set an amount that you would like to stay under and you will be better able to make a decision on life insurance quotes online.
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.
While the children’s education should be the starting point for determining what to purchase, people need to ask themselves a number of tough questions. Determine what amount of income the family need. Would the spouse be able to work, or would it be necessary to stay at home with the children? While no one wants to think about what would happen after his death, it is important for determining the amount of life insurance that will fully protect his family.
The continuing rise in the cost of living should also be a factor in how much insurance a customer decides to purchase. While no one can determine exactly what the costs of things will be in five years, it is safe to say that they will continue to go up over time. For a five year plan, add an extra 10 percent to the current cost of living expenses. This should help offset the rising costs and still leave a family protected.
Of course, the cost of living must come into play as well. While we don’t have a crystal ball to determine what the prices will be in five to ten years, it is easy to figure out that the cost of living will continue to rise and adding on an extra ten percent for cost of living should cover the difference.
While taking the steps to maintain a family’s financial stability is never an easy topic to discuss among spouses, it is very important. Work together with a spouse to determine how much insurance is needed and do not shy away from asking the tough questions. Obtain life insurance quotes online and compare and contrast several policies, finding the one best suited to the family’s needs. Ultimately, customers rest easier at night knowing their families are protected no matter what happens.
If you want to find life insurance quotes now or if you are looking for more free resources just visit this website, click here for: life insurance quotes online!
Tags: annuity, best life insurance, business, death, family, finance, home, insurance, liability, life, property, retirement, safety, term life insurance, whole life insurance
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Monday, February 8th, 2010
Life insurance is one of those things that few people could fail to benefit from. It offers peace of mind to the policy holder and financial support to its beneficiaries. If you need a list of reasons to get life insurance, here are a few to get you started.
The most obvious part of life insurance is that in the event of your death, it will help to provide for your family. It works as simply as this: because you have been paying your monthy premiums, the company that holds your insurance policy will agree to pay a specified lump sum of cash to the benificiary listed on your policy (this is the person or people you designate to receive the death benefits).
Your beneficiaries are not restricted in how they use this money. 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.
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.
If you are HIV-positive, South Africa is one of only two countries that offer life insurance cover for people with HIV/AIDS. Your premiums may be somewhat higher, and your insurance provider will require you to maintain antiretroviral treatment.
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 syndication coordinator at lifeinsurance-southafrica.co.za. South Arica’s leading Life Insurance portal
Tags: best life insurance, death, Estate planning, insurance, life, Life Cover, Life Insurance, Life Protection, medical, retirement
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Friday, February 5th, 2010
When considering the purchase of life insurance, it is best to do some research in order to best make an informed decision. One of the most efficient ways to make an informed decision is by researching life insurance quotes online. It is simple to find whole and term life insurance quotes on the internet.
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.
Generally speaking, there are two kinds of life insurance, both of which are intended to replace the monetary value or input from a deceased family member. Term life insurance pays a set amount after the policy holder passes. Whole life insurance operates more like a savings account and has a cash value.
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.
Life insurance proceeds can cover a variety of things, but some aspects should be at the top of the list. The policyholder’s replacement work income, the estimated burial expense and the taxes incurred from the settling of the estate are among just a few of considerations. Receiving life insurance quotes online should include all of these considerations before you decide to inquire 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 now or if you are searching for more free information just visit this website, click here for: life insurance quotes online!
Tags: annuity, best life insurance, business, death, family, finance, home, insurance, liability, life, property, retirement, safety, term life insurance, whole life insurance
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Sunday, January 24th, 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.
Lots of people like to point out that term life insurance costs less for more coverage. This is one advantage of buying temporary and pure insurance. It will expire, and it will not usually grow a cash account.
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.
You understand that if Ms. Davis were to pass away, and her death benefit was paid out, the premiums would not be returned.
This is still a very attractive option, and it does prompt many consumers to buy term with a return of premium option. I cannot tell you if this is a good choice for you. All I want to do is to let you know that you have this option so you can make a good buying choice.
Visit us to look for return of premium term insurance in your city or town. You need to make an informed choice, and find the best life insurance type for you.
Tags: best life insurance, finance, insurance, Life Insurance, retirement, savings, term life insurance, whole life insurance
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