Posts Tagged ‘life Insurance’

Life Insurance VS A Retirement Policy

August 4th, 2017 Comments off

Many people find out at retirement that they have not enough money to live the lifestyle they are used to. There are too many people in this country that have no retirement benefits and will be living on social security benefits alone. For someone living on social security benefits their lifestyle will change dramatically and they will find that they may not have enough money to keep their home and retirement becomes a burden rather than a joy.

Many people believe that a life insurance policy is only to be paid out in the event of the policy holders death. The truth is that many people use life insurance policies as a way to protect their financial well being during their old age. The life insurance policy is able to be funded from many resources, such as stocks and bonds, certificates of deposit, mutual funds and even cash reserves from your bank account. This money can then be withdrawn at retirement age tax free.

Having the security of death benefits for your family is very important but having peace of mind about your financial well being after retirement is a huge concern for most people. The life insurance policies can be created to offer payouts over a specified period of time or can be paid for your entire lifetime. The best feature of the policies is that you put in it what you want to invest in your future and the payments will not be considered taxable income.

Retirement benefits can be utilized in many ways with the life insurance policies. You can borrow from cash values or have a payment plan designed to meet your needs. In both instances there will be certain pros and cons.

Money that is accumulated in a life insurance retirement policy will be able to be withdrawn at retirement age without paying tax or taking any penalties. If you are using an IRA for retirement you can expect payments to be made to you but you will have that amount taxed as income. The tax free money is a huge advantage to the life insurance retirement policy.

If you are borrowing cash from the retirement policy as a method to avoid having to pay any taxes on the money you may be surprised that you could be hit with capital gains tax on any payments that aware in excess of the premium, this is for the lifetime of the policy so if you paid over for 40 years you can expect a huge penalty. If you are now 80 or 85 and are trying to just get by with paying estate taxes and pay the high cost of health care this tax could put you in the poor house and cause you to lose everything you own trying to pay it back.

You may have been shown a great retirement package from the agent you bought the policy from and then find out when you retire it is less than what it should have been. The rates change and if you had a great rate at the time of purchase and they have since fell you will not have the benefits you once though. With a standard retirement package you may be able to have more security in knowing what your benefits will be but they will be taxable and you have less chance to increase them over time. With the insurance policy you can add as much cash to your policy as you wish and you will never be taxed on your payments after retirement but you do have a slightly larger risk involved with your money.

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Tips When Considering A Life Insurance Policy

July 29th, 2017 Comments off

If you have anyone in your life that rely on you to support them financially then you will want to have proper life insurance coverage. Life cover should be at the top of your list of priorities. How will your family survive financially when you are gone? It is not something any of us want to think about but it is reality.

You want to be sure that your loved ones who depend on you for financial support are taken care of even after you are gone. It is important that they be able to survive if something happens that you do not.

A lump sum life cover policy is pretty straight forward. You may need help with choosing plan types and amount of coverage. Ask your agent to give you the advice on how to select the best policy plan that is right for you and your needs.

There are some things you should know prior to applying for life coverage. Be sure you are taking out a adequate amount of life coverage. Dont forget to factor in all the bills. Your coverage amount can be estimated by using an internet calculator. Be careful not to be under insured. You do not want to find yourself over insured either.

You will have to figure out how long you will want the insurance coverage in place. A trust will ensure that all loved ones receive their benefits.

Policies that are not placed in a trust become part of your estate and could increase the inheritance tax liability. A trust form should be given to you with your policy information.

One of the more popular policies is the Level Term Assurance (LTA) this means your policy amount will stay the same through the duration of the coverage. If you are looking for a less expensive policy and only need coverage for a debt such as a mortgage you can buy Decreasing Term Assurance (DTA) for a great rate.

The most popular cover is the Level Term Assurance (LTA) where the sum of your insured amount remains the same for the duration of the term. If you only require cover for payment of a home loan or other decreasing debt you could check out Decreasing Term Assurance (DTA) for a much better rate.

If you have had a life cover policy for many years you might want to shop around, it is possible to switch to a lower cost one. Always look to be sure you are not losing any irreplaceable benefits when cancelling a policy.

If you have had a life cover policy for some time you might want to shop around, it is possible to switch to a lower cost one. Be sure that you are not losing any valuable benefits before cancelling a policy. You have to keep in mind that if your health has gotten worse or any huge life changes have occurred you will be paying a more costly rate for a new policy.

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Mortgage Insurance Quote In Alberta: The News in the Interest Rate World

July 18th, 2017 Comments off

The real estae world has been sent completely on its ear this year, with bailouts, credit problems, foreclosures and more. What will happen? It is important to make an intelligent guess about how interest rates will go.

Tight conditions in the lending world should normally mean lower rates, since lenders would have to lower rates in order to attract customers with good credit ratings. But it appears that banks are actually raising rates, in the hope that will improve their revenue.

It seems almost short sighted, but to make up for plunging revenues, banks are increasing rates across the board, instead of giving attractive rates for their most credit worthy borrowers. Matters in the financial industry are far from normal, however, and credit card companies are also using this strategy of higher rates to boost revenue in this tight market.

It used to be that when the economy slowed down, banks would lower their interest rates and this would give an incentive to borrowers. Things are not like they were before, however, and new rules seem to be the rule.

How should a homeowner view this crisis, and what steps should he take? Is it better right now to wait out this unusual phase, in the hopes rates will fall back down, or take advantage of whatever credit is there before the economy gets worse?

Not only is there a current, there are many who even believe there is a depression coming, which will surely lead to deflation. Deflation would mean even lower interest rates so anyone who is considering a purchase or refinancing at this stage would probably be better off to wait for conditions to improve in the world of interest rates.

Some lenders are still actively seeking borrowers. There are quite a few small banks that never got caught up in the credit crunch like the larger banks. In this case, being small was an advantage, since many of them were insulated from the issues now haunting most of the credit industry.

A second good argument for waiting is that home prices continue to fall, with predictions of futher price cuts of as much as 35%, even after the 20 to 25% decreases already seen. Case-Schiller, a research organization that leads such studies, reports that in some regions prices have plummeted 25%, with national averages at 17%. If a combination of lower interest rates and lower home prices are in store for the future, it may be wise to delay a home buying decision.

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Most Common Variables Considered When Calculating Travel Insurance Rates

June 23rd, 2017 Comments off

Travel Insurance is a form of limited or special situation insurance that covers loss arising from a specific event. This could be flying in an airplane or riding in a train. The policies are based on the behavior of a group of individuals engaged in an activity and the likelihood that a loss will occur.

Travel Insurance is rated based on the occurrence of a loss as it affects a group of common interest, such as airline passengers. This differs from individual coverage, which rates the risk of loss occurring based on the personal preferences and habits of the insured. It would be difficult to use individual underwriting standards such as age and health status to travel insurance since not everybody flies in an airplane.

Group insurance factors in the community experience of the group as a whole in order to access the probability that loss will occur. Community experience factors can include the number of air disasters in a given region, or in a given year, or by a given carrier. When assessing loss exposure on a group basis it is easy to discern certain trends and patterns regarding the chance of loss. Since air travel is deemed safe with air disasters occur very infrequently (roughly 1 in 2.5 million), the rates for travel insurance is very low.

If you accept that activities such as air travel are safe with a low probability of occurring, why the need to buy travel insurance? Insurance is about something not happening, as oppose to a loss occurring. Insurance provides a way to restore value in the event of a loss and for some, having the piece of mind that some benefit may be available may be important.

Travel insurance policies are typically issued in kiosks at an airport. It may also appear as a rider associated with a credit card or to a person’s property and casualty indemnity coverage. However it is purchase, the benefit provided is a low amount of coverage, maybe no more than $25,000 (although a few higher death benefit policies exist). This is done based on the community experience-rating factor that looks at the incident of death or dismemberment occurring based on the chance of an airline disaster.

How old you are, how physically fit you may be, whether you smoke or not, are all rating factors or variables that are not important to issuing travel insurance. None of those factors has an impact on a plane taking off and landing and the likelihood that a crash will occur. That the instances of plane crashes are so low suggests that very limited factors need to be considered when pricing travel insurance.

Insurance is based on a concept of risk transfer. This means that the individual pays a premium amount that insures that if something were to happen, the insurance will provide a benefit to compensate the policy’s beneficiary. The amount paid in premium is low relative to the potential benefit that is paid. The insurance company rates the potential for loss and prices its policy accordingly so that it is able to pay if that loss occurs. The higher probability that a loss can occur means a higher premium. Applying group underwriting principles to travel insurance helps provide a product that is low cost and pays a uniform benefit.

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Why You Should Consider Long Term Care Insurance What Is Long Term Care Insurance? Is Long Term Care Insurance Right For You?

June 10th, 2017 Comments off

Thanks to advances in healthcare, people are living longer than ever. This also means that more and more people are finding themselves in the position of paying for long term care services, either for themselves or for their loved ones. These types of expenses are typically very costly when paid for out of pocket.

Individuals who are interested in exploring their long term care insurance options should start shopping for policies once they reach middle age, since this will increase their chances of qualifying, and also for locking in a low premium rate.

Long term care insurance can be expensive, and is not a viable option for everyone. It is something that everyone should consider, however. The right policy can help you reduce your independence on your family members, as well as decrease their financial and emotional strain as you age, and can help you retain control of your finances and control of how and where you receive long term care.

The type of long term care policy that you purchase depends on your individual preferences and needs. It is possible to obtain policies that pay only for nursing home care, only for home care, or for both types of care. Another important consideration is the daily benefit amount, because if your medical and elder care expenses exceed your monthly or daily benefit amount, you will be required to pay for the difference yourself. For these reasons and many more, it is important to research all of your options and consult with your insurance broker before purchasing any type of coverage.

LTC insurance is not standardized and there is no guarantee of coverage. Based on your answers to questions about your medical history, a company can choose whether or not to sell you a policy. If you are considering it is best to apply with several companies to see if you are accepted before considering the price. Many people are rejected so to really explore your options it is best to first see which companies will accept you.

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