Posts Tagged ‘annuities’
Thursday, January 14th, 2010
Many people neglect getting their life insurance plan in order. The reasons for the procrastination vary and can include thoughts about not needing insurance at this time, fear about not qualifying due to prior health issues, and of course, the cost.
While the industry will disagree, the truth is that there are times in your life when you probably do not need life insurance, but these are few, relative to the times when it is important for the financial well being of your family.
The many options available can make your head spin, and not all choices are easily understandable by the average person out there. Don’t worry: All the different plans can be demystified. Your agent can be a great resource. Following is basic information you need to know:
Straight life insurance, also known as whole life or permanent, is set for life when you purchase the policy as is the death benefit. In general, the younger and healthier you are when you purchase the policy, the lower your premiums for the remainder of your life.
As long as you pay the premium, your beneficiary will receive the proceeds when you die. Straight life policies build up cash values that you can borrow or withdraw if needed, but this will reduce the amount that will be paid to your heirs, if it is not paid back.
Annuities are a type of coverage that not only has a death benefit, but also a life benefit. It can create a stream of income for you while you are still alive. There are several types of annuities, but there are two basic types; fixed and variable.
A fixed annuity pays a fixed yield and has pre-determined payout to you while still alive depending on the date that you annuitize the policy and how many years the insurance company estimates you will live to collect those payments. You also can elect to pay a fixed payment monthly in exchange for a fixed monthly benefit for a specified period of time.
A variable annuity functions the same way, but can potentially pay much better benefits. Your premiums are invested in the stock market so they have the potential to earn or lose money. Your actual monthly payout, should you decide to annuitize depends on your success with your investments. There are also other options available with annuities, but you should talk with an agent for more details. Discuss with them about whether or not this is a good option for you.
Perhaps the most popular is term life which is the easiest to understand. It is also the most economical. Term life is for a specific period of time (example 10 years) and will pay to your heirs only if you die during the term of the coverage.
Young families can purchase a high amount of coverage relatively inexpensively to ensure that young children will be cared for in the case of the death of one of the partners. Term life does not build cash value.
Burial coverage is self explanatory. It is meant to pay funeral costs.
Mortgage life insurance is like term coverage but usually more expensive. The purpose is to pay off the mortgage in case of the death of one of the borrowers on the mortgage. The value declines at about the same rate as the mortgage balance declines. Inexpensive term insurance, which retains a consistent life amount through the term of the policy, is a better value.
For more specific information about what type of protection would be best for your situation, it is always recommended that you do your own research, and of course, check with an agent who can answer your questions.
In the San Francisco Bay area, call on Stoneridge Financial for advice and assistance with life insurance and other insurance related investment products. Powered by SEO 2.0 Services
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Sunday, December 13th, 2009
People that want the most for their investment dollars but also want a safe guaranteed investment are looking towards fixed annuities more often these days. There are a great many reasons to choose a fixed annuity over a CD. Often the rates are higher and the annuity gets tax-sheltered growth. Not all annuities are alike. When you select an annuity, shop just like you would for any other purchase. You want to buy the best annuity on the market.
Some of the items to look for in a fixed annuity are not as transparent as the interest rate. While the interest rate is a place to start, you need to look at certain specifications in the policy.
Each policy has an initial rate guarantee period. The initial rate is often quite attractive but if it doesn’t have a longer lock-in period, you might be stuck with a product paying low rates. Some companies have an extended initial rate guarantee but offer a first year bonus to make the product more attractive. After the initial year, the rate applied to the subsequent years is often much lower.
Each product has a minimum guaranteed rate of return also. This is the rate that no matter what the economic conditions, the company promises is the lowest you’ll ever receive. When interest rates at the bank drop below a percent, the minimum guaranteed rate becomes important.
On occasion, minimum investments become important. If you plan to remove money periodically until you deplete your policy, you’ll want to avoid a fixed annuity with a penalty if the funds fall below a specific amount. If you’re a smaller investor, you won’t even be able to start a fixed annuity if your funds don’t meet the company minimum.
See if you can add more funds and what the minimum addition must be. Once you find how easy the annuity is to manage for both organization and tax benefits, you’ll probably want to add more. Consider this aspect when going into a fixed annuity. You also may find that the older you get, the less complicated it is to have only one or two products.
It’s important to find out how long the surrender charges last on the fixed annuity of your choice. While some annuities have as short of a period as a year and then quit charging an early surrender fee, others may have one that lasts a lifetime and don’t go away even if you pass but require annuitization by you or your beneficiaries to avoid it.
While most annuities allow the beneficiaries to make the decision how they want the proceeds, those products that only allow them to annuitize or face a stiff penalty give them limited access. If you have children that spend money easily and you want this to last, it’s not a bad idea. However, you can get the same results using a spendthrift beneficiary designation for that child and still give other beneficiaries access to a lump sum settlement.
See if you have a right of withdrawal before the surrender period. Almost all annuities allow you to take the interest, but some allow as much as a 10 percent annual withdrawal from the product without a charge. Some of the annuities offer cumulative withdrawals. This means that if you don’t use it, you don’t lose it. Instead, if you don’t take the 10 percent withdrawal the first year, you have 20 percent the second year.
Shopping for an annuity is the same as any other major purchase. It requires that you shop carefully and look for features that are important for you. Even though you may talk to an insurance agent and look at the products he offers, check around for other products to see if his are the best for your situation.
Christopher Tyler educates on the topic of fixed annuities and other investment options for retirement. As the economy has fallen into the worst recession in decades more and more investors are looking for safe options to grow their investment for retirement. Come see to learn more about the fixed annuity as a viable investment for retirement.
Tags: affordable life insurance, annuities, annuity, annuity insurance, finance, fixed annuities, fixed annuity, insurance, life insurance
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Thursday, September 24th, 2009
by Susie Cusick
If time seems to be running out and you have not arranged any insurance, it is possible to get a guaranteed life insurance policy. There are many policy types to choose from, but this is one of the most popular for those of a certain age.
Insurers can give a guaranteed life insurance policy to anyone of any age. So if you are in your 20′s, 80′s, or 90′s, then this is a suitable option for you. It is common for those who have a serious medical condition and have been unable to get cover elsewhere to opt for a guaranteed life insurance plan. This means that the lump sum will be paid out to the named benefactor, no matter what happens. – it is guaranteed.
A guaranteed life insurance policy is popular because there is no requirement for you to have a physical examination. The insurer will also ask few or no questions about the status of your health when you apply for this type of policy.
The only possible drawback with this policy is that the insurer may impose a restriction in the form of a specified exclusion period. It is usually about 2 or 3 years and means that if you die within this time then the death benefit shall not be released to the beneficiary. If you die outwith the exclusion period, then the death benefit will be paid as normal. It is common that the insurer will return any paid premiums to the beneficiary should you unfortunately pass away during the exclusion period.
It is true to say that the payments you make towards this type of policy will be a bit more than that of others such as a term life policy. It pays to remember though, that the beneficiary will still at least receive the paid premiums should you pass within the allotted timescale of exclusion, so there is some return of funds.
If you are an important part of the company you work for, it may be worth looking into key man life insurance. This type of insurance is taken out by an employer to cover those employees that are very important to the business. A key man life insurance policy always has the named beneficiary as the owner of the business, but they can choose to financially support any dependents or family you have left behind with these funds. It may be worth seeing if your boss has a key man life insurance policy already in place as this may be of benefit to your family later on.
No matter what type of policy you are looking for, it is important to have it all arranged before the inevitable happens. The last thing you want is for your relatives and dependents to be left struggling with finances when you pass away.
More advice and information about all types of insurance and particularly guaranteed life insurance can be found online. You will find that insurance companies and financial advisors are very knowledgeable about these products and can assist you with the easy and speedy applications process.
Tags: affordable life insurance, annuities, Guaranteed life insurance, insurance, Insurance Providers, Investments, key man life insurance, life insurance, life insurance quote, Supplemental Insurance
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Friday, September 4th, 2009
There are many choices when it comes to taking out life insurance; one option you may want to investigate is endowment life insurance. This type of plan is slightly special in what it offers. Whereas normal life insurance plans only offer death benefit, this plan will pay money out whether you pass away or not.
In some respect, an endowment life insurance policy can be likened to a term life insurance policy. That is to say, that it will be limited to a specific amount of time, generally 20 or 30 years. The difference is that an endowment life policy will pay out whether you pass on during this period or not. It is a win-win situation as you will receive the cash if you live out the years until the policy expires. The term life insurance option does not pay out if you reach the end of the time alive.
An endowment life insurance policy can also be cashed in early. Choosing to do this will mean that you receive less than you would if you let it run, but you are guaranteed some of the funds to be able to use them whilst still living. For example, if you cash in a policy in the fifteenth year and it is a twenty year policy, you will receive approximately 50% of the amount you would have got once the policy ended. The amount you get will differ depending on the insurers and what agreements were made when the policy was started.
The major drawback of this type of insurance is that you are likely to have to pay a high premium than you would with any other kind. It is possible to get around this by getting a low cost endowment policy. This does mean lower premiums; however, the amount that will be paid out will decrease over time.
Another viable option is to invest in a return of premium insurance plan. This is the new kid on the block but will prove popular with many people as it allows you to benefit in either circumstance. The policy follows the pattern of having a set period for the policy and you will pay the regular premiums to the insurer. If you pass away during this period, the insurer will pay out the money to the beneficiary named on the policy.
The main difference with this policy type is that you will also receive your premiums back in full if you are still living one the policy ends. The premiums are free of income tax and so the amount you get paid will be the same amount as you paid in over the course of the plan. Return of premium policies can also be cancelled early. This will result in you getting back a partial amount of what you paid in but not all of it. The main benefit of this policy is that you are covered if you do die and covered if you don’t.
When you apply for life insurance there are several elements that determine the amount of premium that you will pay to the insurer. One of these elements is your age; it is likely the older you are, the higher the premium amount you pay. This is why it pays to take out life insurance when you are younger. Secondly, factors such as being a smoker can mean that you will pay more each month. Non-smokers tend to receive lower premiums because they are keeping themselves in good health.
Information regarding endowment life insurance and return of premium insurance can be obtained from insurance companies of a financial expert. They will be able to give you all the facts you need to find the right type of life insurance for you. Once you are ready to take out life insurance, many providers have simple and fast forms that you can fill out over the internet.
No site but UncommonLifeInsurance.com gives you all the tips and info on guaranteed issue life insurance and related subjects. Whether you are new to the subject or an expert, make sure to check out cheap whole life insurance by following the links above !
Tags: affordable life insurance, annuities, Endowment life insurance, insurance, Insurance Providers, Investments, life insurance, life insurance quote, return of premium, Supplemental Insurance
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Sunday, August 30th, 2009
by Susie Cusick
If you doubt that your life insurance cover is up to scratch, then you can talk to your insurance provider about combined life insurance. This type of policy is becoming more common and is one of the best ways to make sure you are prepared for any life event. Currently a favorite in commercial settings, this policy type is become more available to individual users.
The advantage of having a combined life insurance plan is that you can augment you policy to have different options on it. For example, you may wish to add critical illness cover or increase the value of the death benefit, as these may not be features already available on your policy as it stands. This plan essentially lets you have all the features you want and need, all packed conveniently together.
Many of the insurers will allow you to pick and choose which elements you want for your particular policy. It is also possible to find a ready-made combined life insurance policy that is perfect for you. You may wish to change some of the cover at a later stage and this is allowed too. Essentially, whatever options you want to add or take off of your policy, it can be done by doing combined life insurance.
If you have already invested in some cheap whole life insurance, then it may be that you want to make it work better for you. Essentially the combined plans that you can get mix the good parts of whole life and term life insurance together. Having said this, it is not always possible to modify the cheap whole life insurance policy that you have ongoing.
You need to find a combined life insurance option that has all of the best parts of a cheap whole life insurance policy and a term life insurance policy. Many people turn to variable universal life insurance products to achieve this. This options lets you change or stop your monthly premium and add new features onto the existing cover.
It is likely that you will pay more per month for this type of insurance policy; this is partly due to the fact that some of the payments you make can be used towards other investment choices. There is a bit of a risk if you opt to do this and so it is essential that you understand the implications fully before opting for this plan. Interest rates are linked to the cash value of the policy you have; this means as long as rates continue to increase, then the cash value of your policy will do so too.
Both combined and variable universal life insurance policies are ways of making your insurance work better for you. It is paramount that you identify what it is that you need currently and what you are most likely to need later on. Insurance companies are always looking to improve the products that their clients have and to ensure that they are what the client needs as an individual.
Finding out more information about combined life insurance is easy; you can talk to your insurance broker or directly to an insurance company. You can read up about the different types of life insurance you can have on the internet. Make sure that you get all of your questions answered before you decide on the right insurance plan for you.
Tags: affordable life insurance, annuities, cheap whole life insurance, Combined life insurance, insurance, Insurance Providers, Investments, life insurance, life insurance quote, Supplemental Insurance
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Friday, August 14th, 2009
by Susie Cusick
We all need to think about what lies ahead and it is crucial that you get some great life insurance advice. Taking out life insurance is a sensible move and will allow you to ensure that your family gets the protection they need when it is time for you to go. You want to be able to live the rest of your life, secure in the knowledge that there will be no money worries after your death. The last thing you want is for your relatives to be paying for your funeral or paying off debts with their own funds.
Firstly, it pays to know the difference between all the different life insurance policies that are available. There are quite a number of different types and it can all get quite confusing. The simplest form of life insurance provides funds that will only cover your funeral costs specifically. This is often known as death insurance.
Other options include term life insurance and whole life insurance. Term insurance will cover you for specific amount of time, usually around 10 to 30 years. A whole life insurance policy will keep going until you pass away. Both of these options will pay out a lump sum upon your death which can be used to pay the funeral, any debts, and leave your family some funds to keep them going. Term insurance premiums are generally lower because the policy is only covering you for a short time. The whole insurance policy may have more benefits for the higher premium you pay.
As a branch of the whole insurance type, guaranteed issue life insurance is also another option. This policy gives you a smaller death benefit, normally within the price range of $5,000 and $50,000. A guaranteed issue life insurance policy may be the best option for those who are watching their finances. It is also popular because it requires no medical examination and is easy to set up.
If you work in a high risk job or have a high risk hobby, then you may find it very difficult to get standard life insurance. If this is the case, you may need to ask about high risk insurance policies. These police offer protection for people in these circumstances, who are usually turned down for normal insurance. The premiums may be higher for this kind of policy but it may be your only option.
Essentially, you need to take a look at your life and determine which policy is right for you. It you are single, you may wish to consider the term life insurance option. If you have a partner or children, then the whole life insurance option may be best. You are looking for the best policy to ensure the protection of you and your family in the event of your death.
A wealth of information about guaranteed issue life insurance and all the other options can be found on the World Wide Web. It may still take a while to understand it all completely, but you will get a better sense of which ones are credible options for you personally. Life insurance advice is always available from insurance organizations and financial experts. You can approach them and they will explain each of the policies to you, highlighting advantages and disadvantages. Be sure to ask any questions if there are any points you specifically want clarified about the policies.
The best piece of life insurance advice is to shop around. Once you have pinned down which policy is best for you, get as many quotes as you can. This way you will find the cheapest option and may find the insurers will compete for your business.
Tags: affordable life insurance, annuities, guaranteed issue life insurance, insurance, Insurance Providers, Investments, life insurance, Life insurance advice, life insurance quote, Supplemental Insurance
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Wednesday, August 12th, 2009
by Susie Cusick
Perhaps you have been reassessing your life insurance and feel that there is inadequate cover; if this is so, you may wish to look into combined life insurance. This kind of policy is becoming increasingly popular and is a surefire way to ensure that your life insurance contains all the necessary cover for what life can throw at you. Having been resident in many businesses for a long time, this insurance product is now making its way onto the private market.
The basic premise of combined life insurance is that you can change your cover to suit your needs. You may need additional cover for accidental death benefit or critical illness cover which is not already part of the insurance that you have. You may want to be prepared in case you develop a disability or are at risk of losing your source of income. This life insurance option is one way to ensure that you have the cover you want all in one place.
The majority of the insurance agents will allow you to pick which features you would like to have on the combined life insurance policy. You may find that there are standard packages that are already tailored to suit you and you just need to purchase them. If you require to change any of the features in the future, then this is possible too. In essence, whatever you want to take off or add onto the combined life insurance policy is up to you.
If you have already invested in some cheap whole life insurance, then it may be that you want to make it work better for you. Essentially the combined plans that you can get mix the good parts of whole life and term life insurance together. Having said this, it is not always possible to modify the cheap whole life insurance policy that you have ongoing.
You want to make sure that you have the best elements of cheap whole life insurance policy and term life insurance policy and make it into a combined package. One of the most popular ways of doing this is to take out a variable universal life insurance policy. This gives you the flexibility to set your premiums but you can add on any elements that you need to.
The premiums may be a bit higher by choosing this option as it is possible to put part of the premiums you pay into an investment option. This involves an element of risk and is something you should think about before choosing this type of life insurance. The value of your policy is also linked to interest rates and as long as the interest rate is rising, the cash value that you will receive will continue to rise.
Both of these options present the opportunity to make your life insurance work best for you. It is just a case of getting to know exactly what you need and what you are likely to need in the future. Insurers are keen for customers to get the best deal and the appropriate cover for their individual circumstances.
Finding out more information about combined life insurance is easy; you can talk to your insurance broker or directly to an insurance company. You can read up about the different types of life insurance you can have on the internet. Make sure that you get all of your questions answered before you decide on the right insurance plan for you.
About the Author:
Be sure to check out UncommonLifeInsurance.com for comprehensive information on return of premium. To find all the advice and insights that you may need about cheap whole life insurance at your fingertips, Follow the links right now !
Tags: affordable life insurance, annuities, cheap whole life insurance, Combined life insurance, insurance, Insurance Providers, Investments, life insurance, life insurance quote, Supplemental Insurance
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Wednesday, August 12th, 2009
by Susie Cusick
When it comes to insurance, it may be the case that you have to apply for high risk life insurance. This type of policy is only available to people who have a known serious medical condition, a hazardous occupation or potentially dangerous hobbies. If any of these situations apply to you, then you may find it extremely difficult to get standard life insurance from many insurers.
When you apply for insurance the companies will ask you a range of questions to determine whether you are eligible to be covered by them. If you are a high risk to them then it is unlikely that they will agree to give you a policy. And because you are deemed to be a higher risk, the cost of term life insurance cover will be more for you. You may not consider yourself to be a high risk, particularly if what you do is only a hobby, but it will concern the underwriters enough to refuse the cover.
For example, you may enjoy rock climbing at the weekends. This may not seem high risk but there is more of a chance of you dying than if we were sitting at home watching television. This is all taken into account by the insurance companies. If you are in the army or have a debilitating health condition for instance, then you are classed as high risk too.
It is possible to find some select insurers who will provide high risk life insurance for these unique cases. It is almost certain that you will have to pay a higher premium than perhaps the cost of term life insurance under normal circumstances, and you may get a lower death benefit paid out than other life insurance types. Fundamentally, it is a choice between high risk insurance and none at all for most people in this position.
Help is at hand in the form of a specialist broker. They are experienced in helping people find high risk life insurance. They will ask you to fill out one form and provide them with some form of medical report to confirm your current health status. All of this data is then passed to insurers who deal with providing high risk life insurance. The broker then receives the appropriate premium quotations for you to look at.
The non-standard rates that they offer can be lower than you might expect. This is due to the fact that they are a streamlined and specialized, and so can afford to be cost efficient for you. You may also benefit from finding out about impaired risk insurance which can be cheaper than high risk insurance.
The advantage of these niche providers is that they employ the use of current philosophies when calculating the premiums. Many standard insurers use an old mortality rate calculation table. Newer methods such as the “clinical medical underwriting” philosophy, allow providers to take into consideration medical advancements and the effort those with medical conditions take to improve their lifestyle. This in essence, means they have the capacity to live longer than previously expected, which is taken into account.
You will find these specialized insurance brokers and companies who deal with high risk life insurance available online. It is possible to get a quote for the cost of term life insurance with a high risk element quite quickly. If you are in this situation then you do not need to struggle to source the right life insurance for you all on your own.
About the Author:
No site but UncommonLifeInsurance.com gives you all the tips and info on cost of term life insurance and related subjects. Whether you are new to the subject or an expert, make sure to check out return of premium by following the links above !
Tags: affordable life insurance, annuities, cost of term life insurance, High risk life insurance, insurance, Insurance Providers, Investments, life insurance, life insurance quote, Supplemental Insurance
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Saturday, May 2nd, 2009
by Russell Arnold
Whether you refuse it or not, wellness life insurance can really serve protect your household. Although there are lots of individuals who do not hold the thought of death, it is however something that cannot be avoided. Untill you have discovered the spring of youth, dying is the ultimate scourge to your knowns. Expiry does not only mean the passing of a dear one. In many instances, death haunts people because of the serials of consequences that it activates. For example, the demise of the breadwinner in the family unit is good enough intellect to have greater than life problems. Do you wish your family unit to go through this sort of situation? Get a wellness life insurance instantly.
Affordable Total Lifespan Insurance Policy will cover you for your whole lifespan. Your expiry gain and premium mostly continue the same. All lifespan policy also builds immediate payment value, which may enable you to get a return on a percentage of the insurance premiums that the policy party places. The cash rate is tax-deferred until you withdraw it and you are also capable to take up against that sum of money.| A health lifespan insurance is a form of well, policy, that handles many things. The funeral prices are ordinarily the major insurance coverage of many health life assurance. In many examples, a health life assurance also offers individuals with the benefit of not worrying about hospital charges. There are also health life insurances that will offer your dear ones with sure sum of money after your death. Offered by the various common and personalized institutions, health life assurances can be compared to social securities. Mortals who hold health life assurances are needed to give a minimum total during a period of time. Once the policy ripens, the bearer of the health life assurance would be eligible to various benefits held in the policy.
Cheap Term Life Insurance is little cost and great for teenage healthy mortals who are healthy and may not be able to afford cash-value life assurance premiums and wish to ensure their dependents are looked of in the case of death. Your insurance policy will cover a pre-determined “term” taht is normally one, five or ten twelvemonths. Your premium payment and death benefits are simply during that term. After the term you will hold choices to continue insurance coverage and get the chance to convert to a cash-value life assurance policy.
Some health life assurance also covers giving decided amounts of money to the donees of the insurance policy holder. Depending on the type of health policy, the funds could be received in volume or in scheduled releases. Holding a health life insurance of this kind will assure that life would still go on for those who were left behind.
So in future you proceed for a sky-diving trip, or some other adventuresome act take some long term health care policy. By doing this you will be serving a favor to you and your family.
About the Author:
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