Posts Tagged ‘retirement’
Monday, April 26th, 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.
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.
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.
Policy owners that understand the factors contributing the value of their life insurance policy are more apt to maximize their asset’s value. By recognizing what makes a policy attractive and valuable they can better plan if and when to sell their life insurance.
Learn more about a life settlement. Stop by Kelly Ramirez’s site where you can find out the value of your life insurance policy with a life settlement appraisal.
Tags: affordable life insurance, financial services, insurance, life insurance, life settlement, life settlement appraisal, retirement
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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 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.
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.
Life insurance policies have been sold as far back as the 1800′s. The Supreme Court of the United States upheld the right to sell an insurance policy asset in the 1800′s. Just like real estate, stocks, bonds and other assets, life insurance can be sold by its owner.
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: affordable life insurance, insurance, life insurance, life settlement, life settlement broker, retirement, viaticals
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Sunday, February 28th, 2010
Lots of us are looking at our retirement planning, and we just wish we could be sure that we could leave more money to our kids or grand kids. We may have a lump sum of cash we could set aside, but wonder how it could grow so we can leave a nice cash estate behind us. A product called Single Premium Life Insurace may be a good option to consider.
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.
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.
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.
One possible future use of an SPLI is its ability have a cash value very quickly copared to regular life insurance. Once that happens, you can have a place to borrow from. You may also cash out the policy.
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.
We can help you figure out if Single Premium Life Insurance will work for your family!
Tags: affordable life insurance, elder care, estates, finance, insurance, retirement, seniors, single premium whole life, wealth, whole life insurance
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Monday, February 22nd, 2010
Money is hardly ever considered an asset. Yet you can prove that it is an asset by attempting to live 10 days without using it. Because assets tend to multiply this is an important realization.
Someone once said, \”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.
Consider the following:
Your paycheck. Where do you deposit it?
A commercial bank or one that you own?
Who benefits the most by this process? You or the other guy?
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 give up interest you could have earned by paying cash or you lose money by paying someone else interest when you use their money. You lose money regardless.
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 watched his Infinite Banking Video Then Contact him he can help you
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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Wednesday, February 10th, 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.
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.
It is important to remember that with this policy, no restrictions are placed up your beneficiaries as to how they utilize the money. Your beneficiaries can decide if it will be used to alleviate debt, purchase their home, or even attend college. The amount they receive will vary depending upon the type and coverage you purchase.
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 would like your insurance death benefit to pay more than just enough to settle outstanding deaths, whole life insurance may be a viable option. Here, premium payments are made in the course of your life. Plans are available where you to pay a level amount throughout, or pay higher premiums at the start of the policy. Depending on the plan, payments cease stop at age 60, 65 or 85 but coverage will still continue. In the event of your death, the insurance company will pay out a benefit to your chosen beneficiaries. The benefit does not depend on how long you have actually 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.
Be sure to deal with well known, reliable companies with a history of making the payouts they have agreed to. Most experts suggest approaching at least five companies to educate yourself about the different life insurance plans and options available.
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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Thursday, January 21st, 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.
Whole life policies also have advantages. For one thing, as the name implies, it will cover us as long as we live if the policy is kept in force (paid for or paid up). Cash values slowly build up over time, and this means we may be able to use our policies as an asset.
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!
Consider an example. Mr. White bought a thirty year, $500,000 policy. He survived to the end of it. While he must be happy to be alive, he does not get any more benefit from his coverage.
But if he choose to purchase the Return of Premium benefit, for a little more money, he can actually get a check back for all of the premiums he paid.
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 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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Sunday, November 8th, 2009
Disability Insurance is a simple insurance cover that makes sure that when you are unable to work due to disability you are not affected by huge financial losses. There are a number of companies offering these insurance cover. It is, thus, pertinent that you do some window shopping and find if you are getting the best deal, which means best coverage for such a small amount as possible.
Quite ordinarily on a day to day basis, there are two major kinds of disability insurance. One is short term and one is long term. Short term disability insurance does not stretch beyond a term of two years, while long term disability insurance can be extended up to one’s entire life.
Taking a disability insurance policy is a serious responsibility because in the time of hardship it can be a right hand man, but if you chose the wrong one it may indeed add to your miseries. Hence, take every possible care and ensure that when you sign the papers you are very well aware of its implications to last detail. Do not consider just one or two aspects, but the entire package.
Remember, your disability insurance policy can be canceled only by you and not by the disability insurance provider except when you go default on premiums. Not only that, the disability insurance providers cannot even increase your premium unless you have specifically agreed to it.
How much it costs you depends upon a number of factors including age, employment and hobbies. The premiums vary in accordance with the risk of disability involved. The larger the risk, then the premium even gets bigger.
What is quite curiously grabbing my attention is that the risks of dying are much lower than the risk of disability, but people still go for life insurance with out regard to disability insurance without giving much thought to it.
Agreed that the burden of the cost of living when you have a number of insurance premiums to fill is quite heavy, but if you have a family to support it is really worthwhile to contemplate a disability insurance for unforeseeable mishaps. After all, who can see the future in this day and age, and if no one has, the best option is to weave a security net around your loved ones so that in case you fall, at least they manage to weather the storm.
Looking to find the best deal on Health Insurance, then visit www.onlinehealthinsurancetips.com to find the best advice on Shopping Effectively For Health Insurance for you.
categories: disability insurance policy,disability insurance,life insurance policy,life insurance,insurance,disability,handicap,old age,retirement,family,home
Tags: affordable life insurance, disability, Disability Insurance, disability insurance policy, family, handicap, home, insurance, life insurance, life insurance policy, old age, retirement
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Tuesday, July 7th, 2009
by Tomas McFie
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 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.
Think about this:
Your paycheck. Where do you deposit it?
Your bank or a third party’s bank?
Do you or someone else profit the most from this way of doing business?
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 give up interest you could have earned by paying cash or you lose money by paying someone else interest when you use their money. You lose money regardless.
Do not be fooled, banks and financial institutions make money when they loan your money out to others. If you practice Becoming Your Own Banker however, you are the one who will profit the most by allowing for your money to return to you in a tax free environment the IBC way.
About the Author:
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: affordable life insurance, bank on yourself, banking, becoming your own banker, finance, Financial Planning, i, ibc, infinite banking concept, Investing, investment portfolio, life insurance, Money, retirement, riches wealth and money, taxes, wealth building and protection
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