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Selling your life insurance is an option you might consider if you’re in a difficult financial situation for which you don’t see a close end. A terminal illness or old age could cause you to think twice about paying those hefty premiums at this stage of your life. Selling your life insurance carries with it complex implications and substantial risks, so it is important that you educate yourself regarding the big picture. If you’re interested in selling your life insurance, this is a good starting point to obtain some basic information.

Basics: Vocabulary

If you’ve already done any research on selling your life insurance, chances are good that you’ve come across two main terms: viaticals and life settlements. Both refer to the selling of your life insurance to a third party. So what’s the difference? “Viatical” is typically used to refer to the transaction involving a chronically or terminally ill insured, while a “life resolution” is a transaction involving a senior (generally over the age of 65) who is not terminally ill.

Even though you now know the difference, it does not mean that your state does. These terms might be used interchangeably, or your state might use one of them to refer to both transactions. For example, your state could use “Viatical resolution” to refer to any type of transaction regarding selling your insurance. Be aware that this kind of ambiguity may exist in relation to the vocabulary used in the sale of your life insurance policy.

How it Works
The owner of the life insurance policy policy will sell it for a percentage of the death profit a lump sum to a third party and, in exchange, receives an often substantial lump sum payment. The third party then gets the new owner and/or beneficiary of the policy and pays all of the future premiums and eventually collects the death benefit when the insured passes away.

Those considering selling their life insurance may either directly approach a viatical company or resolution firm, or they may Choose to work with a broker. The broker will act as an intermediary and present the information to several different companies/firms in an effort to find the highest price for the sale.

The settlement firms buy the insurance policy on behalf of investors. In this position, the investors become the owners and beneficiaries, and the resolution firm pays the premium until the insured dies. The firm then collects the death profit and either pays its investors a percentage of the annual return or repackages the policy for sale to another party.

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More and more people are buying life insurance policy online and the numbers seem to be doubling every two years. The reasons are clear. Prices are lower on the Internet and life insurance policy is fundamentally a simple insurance product.

Despite the underlying simplicity of life insurance, most web sites channel their online clients through a telephone based help and advice service manned by experienced personnel. They represent your safety net so if a little technical knowledge is called for, help is at hand.

But it’s always a good idea to have a few Top Tips in your back pocket when you’re shopping online for life insurance. They’ll help you ask the Good questions and find the best policy.

1. Always have your Life insurance policy policy “Written in Trust”.

This implies that in the event of a claim, the money goes directly and immediately to the person(s) you nominate when you first take the policy out. It also avoids all possibility of your estate having to pay Inheritance Tax on the proceeds of your policy and that could represent a 40% tax saving !

All you have to do is tell the online brokerage organising your policy that you want your policy “Written in Trust” and the names of the people who the life insurance company pay in the event of a claim. They will then sort it all out for you. The extra good news is that this service is invariably free of charge. So it’s a win win situation and there aren’t many of those around these days !

2. In the earlier years a Reviewable Life insurance Policy will be cheaper but a Guaranteed Policy will work out a better buy in the longer term.

With a “Guaranteed Policy” the insurance policy company guarantees never to increase your policy’s premium.

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If you die, life Insurance Policy is designed to provide financially for those you have left behind and have listed as your beneficiaries. In buying life Insurance you, the insured, enter into a legal contract with the Insurance company, also known as the insurer. Basically, the contract states that if you make your monthly Insurance payments in a timely manner, your family or other beneficiaries will receive a specific amount of money when you pass on.

Although some may find the idea of life Insurance distasteful, it is considered to be essential in protecting the fiscal health of your spouse and children should they find themselves fiscally taxed due to your death.

Types of Life Insurance Policy

There are two primary types of Insurance Policy: permanent life and term life Insurance Policy. Each provides specific types of protection for your loved ones.

Term life Insurance, the simplest form of life Insurance Policy, is designed to protect your family for a specified length of time or “term.” Term policies, which range from 1 to thirty years, provide a one-time death benefit but no cash savings. This means term policies only provide benefits as long as the insured has paid the premium, which is the was of the Insurance. Premiums are divided into equal monthly payments that are assessed for the entire period of coverage. If you bought a policy that covered you for a three-year term, then you would make 36 equal premium payments on that policy.

Permanent Insurance is designed to offer both a death benefit and an investment return after a length of time. Because this type of Insurance Policy offers a long-term savings plan, premiums are higher than those for term life Insurance. Common types of permanent Insurance Policy are whole life, universal life, and variable universal life.

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When shopping for term life insurance, you want to find the Good amount of insurance coverage at a reasonable price with a company you can trust. But for many people, getting started is the hardest part. That’s where the following Life insurance policy Checklist can help.

1. What you would like your policy to achieve?

Ask yourself what it is you want your life insurance to do. For example, do you want to have insurance coverage that will:

- Pay funeral arrangements?

- Pay the outstanding balance owing on a mortgage and other debts?

- Offset the loss of your income? And if so, for how long?

- Contribute to the future education of your children?

- A combination of all or part of the above?

Knowing what you would like to accomplish with your life insurance policy and approximately how much you need to achieve these goals will help you determine how much life insurance policy you should consider purchasing. Online life insurance calculators are available to help you put a dollar value on the amount of coverage you need.

2. Who would you like to insure under the life insurance policy policy?

Most insurance companies offer a variety of life insurance policy products to suit your lifestyle and family needs. You can get an insurance policy on your own life, or you can get one policy for both you and your spouse (called a joint life insurance policy policy). The most common joint life policy provides coverage when the first partner dies, leaving the life insurance benefit to the surviving spouse.

3. How long will you need life insurance policy?

Consulting a psychic isn’t necessary, although it does require that you estimate the timing of your life insurance needs. For example:

- When will your mortgage be paid off? The amortization period of your mortgage will often determine how long your term life insurance policy should be.

- When will your children be finished school? One day they’ll finish their education and having enough life insurance coverage to pay their educational expenses won’t be necessary.

- When are you planning to retire? You will have less income to replace at that time.

Knowing how long you’ll need life insurance coverage before you begin shopping will ensure you’re comfortable with the life insurance product you end up purchasing. Online tools are available to help you figure out which term for your life insurance policy policy is most recommended for people with similar lifestyles.

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These days insurance policy have been swarming the four corners of the United States. Whether we like it or not, insurance policy is a need. Why? There is no denying the fact that one disaster can have a devastating effect on a firm, a family and an individual. It can be damage, bankruptcy and death to name a few. What are the factors that we should consider and how can we know the insurance policy that we need.

CAR/AUTO insurance policy

One has to consider the purpose of owning it whether for personal use, for public transport use like a private taxi, or use for transportation of goods and industrial materials. Age is also a major consideration. Old vehicles pay a higher premium than new ones. The type and model of the vehicle has a major role also. When buying car/auto insurance online, there are sites that leave automated tools. They’re using an auto coverage analyzer where you have to answer a few question about your financial standing, automobile term, etc. From this information it will generate what category of coverage you need.

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