Posts Tagged ‘retirement’
Sunday, February 28th, 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).
The most obvious difference is that you make one large cash payment when your coverage begins. You are probably used to having a monthly bill! That one lump sum funds your coverage, and so you do not have any more payments to make.
So you see that you have given the insurer a certain amount of money. In return, they issue you a policy for a sum that is probably a few multiples of the original amount. Many people are using this product to fund their estate.
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 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.
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 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.
Another feature is the fact that many policies allow you to accelerate the death benefit in case of a terminal illness. This way, a person could use the money if they need it. Some also have provisions for withdrawing part of the cash value in case of nursing home confinement.
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 tell you more. ? Look here to get Single Premium Life Insurance Explained.
Tags: elder care, estates, Finance, insurance, retirement, seniors, single premium whole life, wealth, whole life insurance
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Sunday, February 14th, 2010
When many people sit down to discuss their insurance needs, they are often confused when trying to calculate how much life insurance they can afford. However, this is not the only consideration. Another important calculation to determine is how much life insurance is actually needed. Before making any decision, get a life insurance quote online and it will help to determine how much you can afford.
Begin the shopping process by creating a monthly budget. Subtract monthly expenses from monthly income to determine how much money is left over. Knowing this amount helps customers set an easily affordable margin for life insurance. A clear financial picture helps people select policies that are easily affordable and lessens a customer’s risk of overspending.
Those who work for a company that provides a benefit package should inquire if life insurance is available. Many employers offer life insurance along with health insurance and other benefits. When large groups of employees have access to the same life insurance, discounts may be available. Signing up through a work-driven program could potentially save employees on life insurance costs.
Many people struggle with determining how much life insurance to purchase because it can be confusing. To properly determine the amount of coverage to purchase, look at current lifestyle choices. Consider current and future expenses of educating children and the ages of those children. These factors make it easier for individuals to select the insurance policy that will best protect their families.
People should purchase an amount of life insurance that meets the needs of their family. Education for any dependent children should always be considered in this equation, but other factors affect how much insurance to purchase as well. For example, determine how much money a family needs to survive and could they survive on a spouse’s salary alone. Asking these tough questions will help steer customers toward the policy that best meets their needs.
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 find life insurance quotes today or if you are looking for more free information just visit this website, click here for: life insurance quotes online!
Tags: annuity, Business, death, Family, Finance, home, insurance, liability, Life, property, retirement, safety, term life insurance, whole life insurance
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Wednesday, February 10th, 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.
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.
However, considerations should also be given to stay-at-home moms to cover child care expenses and other concerns like household bills. It isn’t necessary to purchase insurance policies on children, but insurance can be purchased on other members of the family in order to benefit the children. Other insurance considerations are credit or mortgage life insurance which pays off credit instruments or mortgages upon the policyholders’ death. If you are single, life insurance is not always needed if you have no dependents.
It is easy to find and compare life insurance quotes online. One thing to consider when securing a quote is that people normally purchase about twelve times the annual salary of each insured member. Online insurance brokers make it easy to view and compare quotes from various companies.
If you want to obtain life insurance quotes now or if you are looking for more free information just visit this website, click here for: life insurance quotes online!
Tags: annuity, Business, death, Family, Finance, home, insurance, liability, Life, property, retirement, safety, term life insurance, whole life insurance
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Thursday, January 28th, 2010
Are you trying to decide if you should buy term life or whole life insurance? This decision can be tough when you consider the advantages and disadvantages of permanent vs temporary policies.
One big advantage of term policies is that they are generally less expensive for more coverage. Even if your contract lasts 20 or 30 years, it is still temporary. And term policies provide pure insurance, and so they do not normally have any cash value no matter how long you have paid your premiums.
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.
But life insurance companies have come up with another rider (option) you can put on term to make it more attractive. This is called a return of premium (ROP) rider. This option will actually pay the policy owner all the premiums back if the policy does not have to pay on a claim.
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 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.
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.
Still, this makes term with ROP attractive to many people. They get the lower term premiums, but with just a little more added to their premium, they can get their money back at the end. I still cannot tell you if this is the choice you should make. Your own situation is unique. But I think that many people would take this option if they knew about it.
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: Finance, insurance, life insurance, retirement, savings, term life insurance, whole life insurance
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