Term Life Insurance – Everything That You Need to Know to Get the Best Policy for Your Needs

If you have a spouse, children or both and their current and future standard of living is dependent on the money that you bring home every month, then Term Life Insurance is the best financial purchase that you will ever make! For just a few cents per day you can guarantee that if something unforeseen happens to you, they will not have their future will assured.

The Purpose of Term Life Insurance

Nothing can be any simpler than Term Life Insurance. In exchange for a set premium the insurance company promises to pay your beneficiary (the person designated to receive the proceeds) the full amount of your policy.

This type of insurance policy does not build any cash value. You simply decide how long you want the coverage to last and pay the specified premium. The longer the length of coverage the higher the premium.

Here is an example for a $100,000 policy for a 35-year-old male non-smoker:

A ten-year term policy is $7 monthly, A twenty-year term policy is $9 monthly and a thirty-year term policy is $13 monthly

Here is an example for a $100,000 policy for a 50-year-old male non-smoker:

A ten-year term policy is $14 monthly, A twenty-year term policy is $21 monthly and a thirty-year term policy is $36 monthly

How Long Do You Need Life Insurance For?

Most people will need coverage for longer than they may think. Consider these reasons for buying life insurance and the appropriate time frams:

You have young children and you want to guarantee that in the event of your premature death (isn’t all death premature?) their college is paid for. In this case either a 25 or 30-year term policy would be best.

You have a mortgage on your home and it currently requires your income as well as that of your spouse to make ends meet. Since most mortgages are of the thirty-year variety, I would look for a 30-year term policy.

You and your spouse are age 50 and empty nesters but it requires both incomes to maintain your standard of income, including saving for retirement. In this case a twenty or thirty-year term policy is ideal.

Buy the Least Expensive Policy That You Can!

Regardless of the insurance company a $100,000 twenty-year term policy will pay $100,000 in the event of death. Since you do not build any cash values it doesn’t matter what company you choose to buy from. The one caveat is that you only want to buy from an insurance company that is rated “A” or better by A.M. Best. These are the companies with the strongest financials. On my website you can shop the rates of the best life insurance companies in the United States.

Shopping is critical because but rates will vary significantly from one company to the next. Rates for $250,000 Thirty-Year Term policy for a 40-year-old female non-smoker with no physical exam can have monthly premiums as low as $24 with the least expensive insurance company to as high as $36 monthly to the most expensive insurance company. In all cases the death benefit is identical. My suggestion is to buy the least expensive plan!

If You Are Healthy – Change Plans and Save Money!

Rates on term life insurance have been steadily decreasing over the last thirty years. Just because you purchased a twenty-year policy five years ago does not mean that you cannot save money or extend your coverage for the same premium by switching companies. Unlike cash-value life insurance you have nothing to lose by changing plans. But you may have a lot of money to lose by not switching. And in today’s economic world we must make our dollars work harder for us!

48% Of Americans Die Without Leaving Life Insurance Benefits

While the fact that 40% of Americans dies without leaving any life insurance benefits is shocking, another 21% of Americans reported that a loved one died and did not leave enough life insurance. These statistics beg the question: why would an income earning spouse or parent not buy life insurance to protect their dependent’s futures?

One study found that many people put off buying life insurance because they found all very confusing. To those people I have some very good news! Term insurance is simple. You simply choose the number of years that you want coverage, get some rates and then choose the least expensive policy.

Another reason that many people do not buy life insurance is because they do not want to deal with an insurance agent. These individuals see insurance agents as little more than salespeople and no one wants to be sold. There is very good news on this front as well. As a result of advances in technology there are websites like mine where you can get a quote and enroll without ever talking with an insurance agent, unless of course you want to!

Term Life Insurance Has Never Been Cheaper

A 35-year-old make non-smoker can get $100,000 of twenty-year term life insurance for $9 a month. This same individual can leave his family the same $250,000 twenty-year term life insurance for only $4 a month more.

So don’t put off protecting your family’s financial future.

Life Insurance Policies

There are various aspects to consider before getting a life insurance policy. One of them is a sustained doubt about the significance and need for life insurance. A life insurance policy is relevant for all individuals who are concerned about the financial future of their family in case of death.

Apart from the purely protectional needs, life insurance policies, like whole and variable life insurance, offer the opportunity for tax-free investment and reaping dividends, and they have a built-in cash value. Purchased with due discretion, it can be utilized as liquid cash to cater to the various needs of policyholders.

There are various types of life insurance policies customized to suit the different needs of various individuals. Depending on the number of dependants and kind of insurance needs, a suitable life insurance policy can be chosen after consultation with financial experts and advisors.

Whole life insurance and term life insurance are the two basic forms of insurance policies. With time, there have been different variations to suit the changing demands of people. A term life insurance policy is also called temporary or short-term life insurance. These are purely protection-oriented and provide death benefits only if the insured dies within the period specified in the policy. In case the insured lives past the specified duration, no money is given.

People with short-term insurance needs, like a young individual with dependents, a house loan or a car loan, favor this kind of insurance policy because they are cheap and affordable in comparison to whole life policies. In the initial years the premiums are very low; however, as the mortality risk of the insured increases with age the premium cost increases and at time becomes more than that of whole life insurance.

There are now two kinds of term life insurance, namely level term (decreasing premium) and annual renewable term (increasing premium) policies. The premiums of level term are initially higher than renewable term, but become lower in the later years. Whole life insurance has an ingrained cash value and guaranteed life protection features. The initial steep premiums of whole life insurance may exceed the actual cost of the insurance. This surplus, which is the cash value, is added to a separate account and can be used as a tax-free investment to reap dividends, and is also used to enable the insured to give a level premium latter on. There is a guarantee of getting the death benefit on the maturity of the policy or death of the insured, apart from cash value surrendered in case of cancellation.

Return of premium is popular because it combines the features of whole and term policies. It costs double the amount of a term policy. The policy is made for a set time, but full value is given on death within that period or in case the policy matures. Universal, variable and universal variables are different variations of whole life insurance policies. A universal life insurance policy offers the flexibility to the insured to choose the kind of premium payment, the death benefits and the coverage amount.

Variable life insurance policies enable the insurance buyer to invest the cash value in direct investment for a greater potential return. A universal variable insurance policy integrates the flexibility factor of a universal policy and the investment option of a variable policy. Single purchase life insurance enables a buyer to buy the policy and own it through a one-time premium payment. A survivorship or second-to-die insurance policy is a joint form of life insurance policy which is devised to serve the specific purpose of certain individuals. Apart from these, there are also endowment life insurance policies. Endowment is with profit kind or unit-liked kind. On maturity of the policy or on the death of the insured the value of the policy or the amount insured, whichever is more, is given back.

Life insurance policies differ from company to company, and hence the various parameters have to be analyzed meticulously with the help of experts and financial advisors to get the best deal.

Looking On The Bright Side of Houses

The Premiums that Come with Expert Lawn and Landscape Maintenance Services

By and large, there is just so much in your cup as a homeowner when it comes to home maintenance tasks and this as such makes it such a hassle when it comes to the need to tend to your lawns that as well call for so much like weeding, mowing and pruning the lawns. When it comes to business establishments, such will be depending on a clean and welcoming environment for the need to bring in customers to the business. But this be as it is, you must as well factor landscaping needs of your property into your business model as you as well have so much in your hands to handle as a business.

Thus the best bet for a solution to all this as it is for many business owners out there and homeowners is to go for a professional for your lawn care and landscape maintenance needs. Having such a partnership with these experts is one that benefits you and your garden in a number of ways. Read on in this post and see some of the top benefits that follow hiring of the professionals for your landscaping and lawn care needs.

Looking at these benefits and reasons why this is one move you will appreciate is for the boost it gives your property’s appeal. The main reason for this is considering the fact that the landscape design on your property actually has such a huge impact on the looks that your property will have in a general sense. By and large, for you to achieve this, you need to make sure that your lawns are ever clean, the yards neat and the trees as well should be looking healthy as can be and for this, you need to have a professional lawn care and landscaping company contracted to attend to these.

Professional landscaping and lawn care services are as well recommended looking at the fact that with them, you will be able to see an improved quality of care for your trees and lawns. This is even looking at the fact that for such quality, there is a lot of skill, equipment and experience that is called for which is only available with the experts in lawn care and landscaping.

Added to the above, professional landscaping and lawn care services as well will get you cost effective solutions to your lawn care and landscaping needs in the property.

Different Life Insurance Policies, Different Rates – But, Now’s The Time To Reevaluate Your Policy

Here are the top four life insurances listed from most expensive to the least expensive.

Universal life insurance

Whole life insurance

Return of Premium life insurance (R.O.P.)

and least expensive of all – Standard Term life insurance

The least expensive may sound good but it may not necessarily be the best insurance for you and your family. A lot of people may have different policies. Two or even three. Each one covering a specific need.

Okay, let’s get to these important tips that could save you money when shopping for life insurance.

Buy life insurance while you’re young.

The younger you are when you purchase a life insurance policy the better. Your rates will be much lower. Buying life insurance for your children when they are young will keep their premiums low for the rest of their lives. Up to 10 times lower!

Find a life insurance policy that meets all your needs.

In other words, a policy that is’ tailor-made’ just for you and your family. Everyone has different needs.

You have a home with a 30 year mortgage that you would want to protect with a 30 year policy. You are 30 to 40 years of age. You should consider a small Whole life insurance policy with an additional 20 year Term life policy. Perhaps you are close to retirement. A 10 year Term life insurance policy may be right for you.

If you are a smoker, you want to consider a short term life insurance policy. (Just quit smoking!! Get a new policy! Many policies are much cheaper for a non-smoker. You will not only get healthier, but think of the money you’ll be saving! Not just on your premiums, but on all that you spend on tobacco!! )

How much life insurance should you purchase to meet your needs and the needs of your family?

First, you need to sit down and figure out what your needs are and the needs of your family.

You need to be prepared when dealing with insurance companies. Their goal is to make money off you. They will do their very best to try and sell you more coverage than you really need. Only purchase enough coverage that will take care of your family if something should happen to you. Such as, burial expenses, out-standing debts, mortgage, etc. Enough insurance for them to live on in a way they have become accustom to. (Note: An average standard is 10 times your yearly gross income plus any large debts you may have.)

The reason one should need to purchase more life insurance than needed is if you are leaving behind a large estate. This would be to keep the assets of your estate from being taxed.

If an insurance company is trying to push you to buy more coverage than you need, move on to another insurance company! There is no trick to buying life insurance. It’s not only fast and easy; It’s free on the internet! You can get many different quotes from many different insurance companies in no time at all and save you a lot of money.

Save money by matching the right insurance company to your lifestyle Let’s say that you have a high risk occupation. Such as an airplane pilot or construction worker. Or perhaps you have a high risk hobby. Such as jumping out of an airplane rather then piloting one. Insurance companies are well aware that they are taking a big. Therefore, they will charge you much higher rates figuring that you may not be paying them premiums as long as they had planned on.

The insurance companies will still insure ‘high risk’ people. But the amount of those individuals is limited. Example: An insurance company, let’s say, has a limit of 10,000 policies that they will issue to a ‘high risk’ individual. Each individual pays $1,000 per year for their policy. Now, after the insurance company reaches their limit of 10,000 policy holders, a ‘new’ high risk individual, (#10,001), is going to pay double for that exact same policy. Why? Because insurance companies are NOT going to exceed that limit and put their assets at risk. They need to compensate by charging higher rates to everyone over that limit.

Take notice of fluctuating rates as your insurance policy increases Some insurance companies are willing to give you a bit of a price break when you increase the amount of your coverage. It is possible to get a $300,000 policy from one insurance company for less than a $275,000 from another insurance company, even if both insurance companies charge the exact same price for that $275,000 policy.

It really pays to check both above and below the coverage you are looking at. You may be surprised at what you might find when you compare.

Are you paying too much for life insurance through you place of employment? Chances are, yes! You see your employer and the insurance company work together to agree on one set ‘group’ rate. Meaning, all employees’ pays the same price for their life insurance policy. They are going to figure in the number of ‘healthy’ and ‘unhealthy’ employee’s. Now, we already know that a person who is unhealthy will pay more.

Not the case through work. Everyone pays the same rate. The ‘group’ rate’. Therefore, if you are one of the ‘healthy’ employee’s, chances are, you are pay too much because you are paying a portion of the ‘unhealthy’ employee’s premium payment.

Let’s say that in a normal situation, an insurance companies rate would be $50 per week for a healthy person and $100 per week for an unhealthy person. In a ‘group’ rate situation, a set rate would be $75 per week for everyone. Every employee whether healthy or not.

That means that a healthy employee is getting an extra $25 per week taken out of their paycheck to help pay for a portion of the ‘unhealthy’ employee’s premiums.

If this is your case, the wise thing to do, if you are one of the ‘healthy’ employee’s, is to take that $75 per week out of your paycheck yourself and invest it in a life insurance policy that is tailor-made just for you. You would now be in control. You must also keep in mind that if you should ever leave this job, or retire, most likely you would lose any life insurance benefits you had through the company. By investing in your own policy, (and as long as you pay your premiums,) you would never be in fear of losing a policy that you may have paid many, many years in to.

You may save money by paying your premium payments annually.

By making annual premium payments, your life insurance company may give you a discount rate. After all, they are saving money with less labor and less paper work compared to those who pay monthly. If annual payments won’t work for you, ask the insurance company if they will offer a discount on your monthly premium if you pay by credit card. Many insurance companies don’t just willingly offer a discount. So don’t be afraid to ask!

Watch out for “Age Nearest” in your policy

When an insurance company raises your rates as you get older, these increases may not occur on your birthday as most would assume. The fact is, most insurance companies will raise the rates of your policy six months prior to your birthday. They call this ‘Age Nearest’. This could end up costing you a lot of money over the length of your policy. Make sure that you ask your insurance company ‘how’ and ‘when’ they increase their rates.

When to reevaluate your life insurance policy

There are several reasons for reevaluating your life insurance policy every year or so. Insurance rates are dropping, mainly because the internet has made it so easy for everyone to get life insurance quotes. This is resulting in a fierce competition between insurance companies. People are also living longer these days. That means longer policies for the insurance companies and longer premium payments.

It is possible to double your existing policy without paying any more than you are now. Anytime there is a substantial change in your life, you need to reevaluate your life insurance policy. You could be paying for coverage that you no longer need such as, your mortgage, your debts, or you no longer have dependants living at home.

Or, You may need to increase your coverage because, you had a child or purchased a new home. Very, very few insurance companies will ask you on a yearly basis if there are any major changes in your life. You need to inform them and ask them to reevaluate your policy. You can get a cheap life insurance quote but you have to ask and compare.

Buying Life Insurance: A Shopping Checklist

When shopping for term life insurance, you want to find the right 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 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:

o Pay funeral arrangements?

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

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

o Contribute to the future education of your children?

o 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 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?

Most insurance companies offer a variety of life insurance 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). 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?

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

o 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.

o 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.

o 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 is most recommended for people with similar lifestyles.

So now that you’ve got the how much, who and how long questions answered, you’re ready to shop.

1. Compare life insurance quotes from multiple companies:

It pays to shop around because life insurance rates can vary considerably depending on the product you choose, your age, and the amount of coverage you request. This is the easy part, because with the Internet you can compare life insurance quotes easily, online, anytime.

2. Which life insurance rate has been quoted – standard or preferred?

There are two basic life insurance rate groups you should know about when shopping for life insurance coverage: standard rates and preferred. Standard life insurance rates are the rates the majority of Canadians qualify for, while about one third of the population is eligible for preferred rates.

Preferred life insurance rates are typically offered to very healthy people and means you may pay a smaller premium than most. Usually preferred rates are offered only once the results of the medical information and tests are known. It will depend on your blood pressure, cholesterol levels, height, weight, and family health history. But preferred rates are worth it. They could save you up to 30-35% off your quoted premium.

When comparing prices, make sure you’re comparing ‘standard to standard’ or ‘preferred to preferred’ life insurance rates. If you’re not sure, ask the broker. It would be disappointing to find out you were quoted preferred rates at the beginning, only to find out you don’t qualify for them later.

3. Review the life insurance broker’s availability:

How easily can you get a hold of the broker? What are their hours of operation? Whether it is through their website or telephone, the life insurance broker should be easily accessible to you should you ever have questions or need to speak to them about a change in your life insurance needs. Look for toll-free numbers and extended hours of service as guides.

4. Review the medical information required to obtain the policy:

Typically the more medical information you provide, the better the price. For a policy that asks few or no medical questions, you can bet the premium is higher for the same coverage then a plan asking for more information. Depending on the company, your age, and the amount of coverage you want, you could be asked to provide blood and urine samples. To obtain the samples, a nurse will visit at not cost to you.

5. Consider a life insurer’s financial stability and strength:

A company’s financial stability is something to consider if you are planning on making a long-term purchase like life insurance. There are organizations out there, like A.M. Best, that evaluate insurers and provide a rating on their stability and strength.

6. Ask about renewal options and requirements:

Once the initial premium is set, it is usually guaranteed for the length of the policy (often 10 or 20 years). But what happens when the policy expires? Most policies are renewable until you are 70 or 75 so don’t forget to ask your broker if you will have to take a medical to renew your policy. While your premiums will be higher on renewal, find out if they will also be guaranteed to remain level for the second term of the policy.

7. Confirm the policy can be cancelled without penalty:

Most term life insurance policies can be cancelled at any time without penalty. Make sure to check with your broker to see if the life insurance company has any unusual cancellation policies.

8. Consider the conversion options and restrictions for the policy:

As your life changes so do your life insurance needs and you may want the option to convert your coverage some day.

To convert a term life insurance policy means to transfer all, or part of, the death benefit of the policy into a permanent life policy without a medical. For example, say you originally bought a term policy to protect a mortgage and child. Once the mortgage is paid and the child grown, you might find it desirable to convert the policy into one that will give you a new level premium for the rest of your life, and a death benefit that is guaranteed not to expire as you age.

When you purchase your life insurance policy, find out if there are any limitations on your age at the time of conversion. In most cases, you have the option of converting up until you are 60 or 65. As well, ensure you are given several options of the type of policies you can move into, the more the better.

Final tip – choose a life insurance broker you trust:

While it doesn’t necessarily impact the type of policy you choose to purchase, a rapport with your broker is critical in feeling comfortable with the life insurance policy you buy and the information you’ve received.

Learning The “Secrets” of Homes

Advantages of Real Estate Appraisal

Many people invest their cash in the real estate because they anticipate to get high returns at the end of it all. Before an individual buys the property, they will need to consult the real estate appraiser who will help them to be able conduct the appraisal of the property.

When an individual conducts real estate appraisal before buying or selling their property, they will get a lot of benefits. An individual will benefit from the fact that they will reduce their property tax when they know the actual price of the property. One should get a skilled individual who will conduct the appraisal and know the value of the property. A person should get real estate appraisal services from experts who will have a standard price that they will charge their clients. The property tax can be lowered when the assessment of the property is lower than what was projected so that a person can save more cash.

When one does real estate appraisal, they will always make sure that they have avoided the delays in lending. The lenders will agree to finance the individuals who will have a commercial investment when a professional appraisal is done to determine the value of the property. Therefore a person should always get the experts who will conduct the appraisal and give accurate results at all times. Before the lenders can lend a loan to their clients, they will need to know the value of their property so that they can use it to clear the balance in case the borrower is able to clear it on time. A person should make sure that they have shared with the lenders the amount of money that their property is worth so that it can be easy for them to get the financing. When one accesses the financing from the lenders, they can be able to carry out a lot of projects in their society.

A person who want to buy or sell property should make sure that they have conducted the real estate appraisal so that they can know the actual amount of money that it should cost. Therefore, an individual will not under price or even overprice their property and hence they will get returns within a short time because they will get ready clients. Therefore a person will get good amount of money depending on the value of their property after it has been appraised. The experts who will help the individuals to conduct the real estate appraisal will help the to gain confidence to carry out the transactions. One will also be able to get advice from the experts who will do the real estate appraisal.

The 10 Laws of Services And How Learn More

The Benefits of Home Security Systems

The decision to acquire monitored or unmonitored security systems is the decision of the homeowners. Monitored security systems are preferred among many people due to the many benefits they offer. People need to shop for different home security systems to determine the one that is perfect for them. It’s important to ask for help from individuals who have experience of the home security systems during the purchase for first-time buyers. Buyers need to be knowledgeable of companies that supply quality security systems within the market. Homeowners can get a variety of companies with the desired quality of security systems from online market.

The security systems help to protect people’s valuables. Securing security systems can be a way of making family members comfortable by making them feel protected. It’s possible for people to prevent damages by noting intruders and taking actions before they accomplish their mission. Homeowners can shield themselves from financial losses through installing the right security systems. The evil people try as much as possible to avoid premises with security systems as they know that it’s difficult for them to survive their missions. The systems have alarms to notify in case of intruders trying to break into the premises.

People tend to have peace of mind when they are away from home when they have security systems in place. Individuals who have connected their security systems with their phones can be able to monitor their homes from wherever you are. It’s possible to identify dishonest employees within the family. The security systems can help to reduce criminal activities within a region if the majority of the families take the initiative. Some systems allow remote control of devices through the phone. The workers tend to act more responsibly since they know that they are being watched.

People with security systems can benefit from cheap insurance policies. Availability of security systems help to minimize risks that can occur which makes the homeowners get favorable terms from the insurance firms. People get to realize when there are fire or gas problems within their premises. The ability of the systems to allow control of devices makes it possible for people to manage their electricity usage. The systems help parents watch over their children while they are not around. The ability of the house owners to switch off devices from their phones protects them from panic when they leave without putting them off.

The higher the number of features within the security system the more efficient it is. The search for the security system requires people to compare prices from different companies. Buyers have higher chances of getting better prices for the security systems due to the increasing number of dealers in the market.

The Facts About Cash Value Life Insurance – What Suzie Orman Won’t Tell You About Buying Insurance

For years now, made for TV experts and infomercial wizards have been dispensing financial advice to millions of eager Americans. Celebrity advisors such as Suzie Orman and Dave Ramsey for example, utilize the television media, to provide consumers advice on everything from credit issues and home mortgages to stock market investing and life insurance. As a result, many of these advisors have amassed thousands of devoted followers of their brand of financial wisdom while making income from the sale of books, CD’s, newsletters, etc. There is nothing wrong with utilizing the media to build your “brand” and increase your visibility. In fact, this is an accepted and highly successful technique for building a financial services business. However, the information provided by many of these “experts” often reflects a certain philosophical bias that can be short sighted, self serving and not reflective of individual financial circumstances. The hallmark of good financial advice is that recommendations are always based on conducting a thorough investigation to determine an individual’s current financial situation and future plans. Only with the knowledge of a client’s current assets and resources, investment risk tolerance and priorities for the future can a financial advisor be sure that their recommendations are right for any individual. Without this knowledge, all financial advice is generic and thus may not be right for everyone.

No where is this type of one size fits all advice more prevalent then in the belief that when it comes to buying life insurance, term coverage is always best. Suzie Orman, Dave Ramsey and others, have expressed the opinion that consumers, in all cases would be better off buying low cost term life insurance versus the more expensive cash value permanent life policies. They routinely advice listeners to purchase less expensive term insurance and utilize the money saved on costlier permanent life insurance to invest in the stock market mutual funds, IRA’s or other market driven products. In the insurance industry, this is referred to as (BTID) “Buy Term and Invest the Difference”. Proponents of the “BTID” philosophy argue that cash value policies are not sound long term investments because life insurance companies invest too conservatively in order to generate the returns guaranteed to cash value policy holders. The “Buy Term and Invest the Difference” crowd advocate a more aggressive investment approach for premium dollars beyond what life insurance companies can expect from the conservative markets. They also argue that you will only need life insurance for a short period of time anyway, just until you have accumulated enough through debt consolidation, savings and investments to live comfortably. Orman on her website explains, “If you are smart with the money you have today and you get rid of your mortgages, car loans and credit card debt and put money into retirement plans you don’t need insurance 30 years from now to protect your family when you die”.

Clearly eliminating personal debt and investing wisely are worthwhile and important financial goals for everyone and should be given the highest priority in any financial recommendations. On the other hand, if you are unable to achieve a debt free lifestyle or realize substantial market returns, you run the risk of losing your insurance protection due to premium increases or becoming ineligible to qualify for coverage when it is needed most.

Real World Experience
The “Buy Tem and Invest the Difference” concept makes sense until you examine it’s it closely and compare it with the real world experiences of life insurance buyers. Looking at the experiences, of many policy holders who buy term life protection with the intent to invest their premium savings, we see why this strategy may not be practical for the average consumer. Most consumers are neither experienced nor consistent market investors nor do they have the time and discipline necessary to become successful market players. The results are that most consumers eventually buy term insurance and never invest the difference. Or in other words “Buy Term and Spend the Difference”.
A 2003 Harris Interactive study found that 77% of more than 1,000 Americans surveyed had bought term insurance as a way to save for long-term financial goals. But only a third of them could identify those goals, and just 14% invested all the money they saved by buying the term policy. By contrast, 17% spent it all.
According to 2007 Dalbar Report’, investor results over a twenty-year period (1987-2006), showed that the average investor only earned 4.3% during a period where the S&P 500 yielded 11.8%, And, this was during one of the best bull markets on record. And, it doesn’t include the 2008 stock market downturn nor does it consider investor fees or expenses paid. Clearly many people are being misled when it comes to actual returns experienced by the average investor. The average investor never realizes higher interest gains on their premium savings and as a result of ” BTID” generally find themselves without life insurance coverage because they can no longer afford the higher term premiums or no longer qualify for coverage.
IRS Taxes:
Another reason to question the “BTID” philosophy is that even where consumers are successful in achieving higher investment returns from mutual funds earning, all such returns are subject to capital gains taxes.
Insurance buyers must factor in taxes when comparing the guaranteed returns from cash value life insurance versus mutual funds shares. The interest returns on mutual funds gains are subject to as much as, 25-38% in taxes, depending on one’s income tax bracket. In addition, mutual fund gains must also be adjusted to account for the investment fees these fund providers charge share holders for the opportunity to invest. These fees will further erode any positive market gains achieved. The question is what is the true rate of return on mutual fund shares compared to guaranteed returns found in most cash value policies?

Market Volatility:

The BTID concept presupposes you will have no further use for life insurance because you will have generated sufficient market returns through this more aggressive investment strategy which will out pace any potential cash values generated through conservative returns on whole life. However, we know the stock market can be a tricky thing to predict especially for investors who depend on market returns to provide retirement income, and create legacy assets. The stock market in 2008-2009 provides a recent example of how difficult it is to create returns when they are needed the most. “In the 12 months following the stock market’s peak in October 2007, more than $1 trillion worth of stock value held in 401(k)s and other “defined-contribution” plans was wiped out, according to the Boston College research center. Whether it is 401K shares or individual mutual funds, all investors are subject to market risk and timing near the end of their working careers which can still blow their savings and future retirement plans.

Will you need Life Insurance?
What Suzie Orman, Dave Ramsey and others are missing is that the arguments about the rate of return you can get from cash value insurance are completely secondary. The main reason to own cash-value life insurance is the permanent nature of the coverage. We face greater financial risks during our retirement years than at any other point in our lifetime. Even if you can afford to self insure, many of these financial risks can be managed most effectively through owning life insurance and by shifting the risk to an insurance carrier rather than assuming all the risk yourself. The disadvantages of not having life insurance at retirement are far greater than any potential benefit gained by self insuring. Since life insurance is cheaper and easier to purchase when you are young and healthy it makes more sense to lock in fixed insurance premium rates and provide lifelong financial protection for your loved ones. In addition, life insurance can not only protect one from the risks of premature death, but can also provide protection from the risks of outliving your retirement savings, help pay estate taxes, and replace lost pension income. With more and more people living into their 80s, 90s and beyond, the real fact is that lifetime insurance coverage cannot practically or affordably be maintained with term insurance.

Price versus Value

Many people are familiar with the concepts of homeownership. In general, most Americans accept the financial principal of homeownership without question. The principal that owning is always better than renting is part of the American cultural legacy. Why because it is about value and not the price. Well this same principal can be applied relatively easily to owning a cash value policy. The example below shows you how closely buying and owning cash value life insurance resembles buying and owning a home:

o You pay more up front to purchase a house and to buy Cash Value Life Insurance.
o They both build equity over time and free of income taxes.
o After a number of years owners usually can get all their money back with a reasonable interest return.
o You can access your home equity and policy equity only buy selling or by taking out a loan against them
o If you take a loan against them, you can use that money tax-free.
o You don’t pay income taxes on the value of the house or the CV Life Insurance until you sell them.
o Both a home and cash value life insurance are considered financial assets.

Advantages of Cash Value Life Insurance versus Term Insurance

Benefits of Ownership Cash Value Life Term Life
Premiums that never increase over time Yes No
Your cash values accumulate tax deferred. Yes No
The cash accumulated in your policy can provide you with a
tax-free income in retirement. Yes No
Creates a liquid ‘Emergency Fund’ Yes No
Considered asset when applying for bank loans Yes No
Guarantees – Only Life Insurance and Annuities guarantee your
investment principle Yes No
Cash values can be accessed income tax-free and penalty free prior

to age 59½. Yes No
Cash value life insurance is not attachable by creditors. Yes No
Cash value life insurance doesn’t count as an asset when you apply
for college financial aide. Yes No

Conclusion

The success of people like Dave Ramsey and others in shaping the debate over term versus permanent insurance is largely based on unrealistic assumptions and misconceptions about the benefits of cash value life insurance. Their advice while otherwise sound, when it comes to buying life insurance does not reflect the realities of the experiences and habits of the American consumer. A larger question is why are so many people touting the benefits of “BTID”, including insurance carriers like, Primerica, Inc., (Division of Citigroup), which bases it’s entire marketing strategy on the BTID philosophy. In my opinion, the answer is two fold. One, the insurance industry has done a poor job of educating the public regarding their options. Two, term insurance is a highly profitable and less risky product for all life insurance carriers. Think about it! They are only on the hook for a short period of time-minimum of one year and a maximum of 30 years. There are no additional cash values obligations or potential dividend payouts to be accounted for.

Additionally, according to industry statistics, only 1-2% of all term policies actually pay out a death claim to the policyholder. This suggests that the majority of policy holders either lapse their term contracts before the end of the policy period and thus receive nothing for the years of premium payments made nor retain any of the insurance protection from the policy. In addition, companies like Primerica, also earn additional fees and commissions from the sale of their mutual funds to policy holders. This makes “BTID” a good marketing strategy for the certain insurance companies but not necessarily good for consumers. Consumers should consider the total amount of insurance coverage they will need to protect their families, and for how long they will realistically need the coverage, before purchasing any life insurance. The most important life insurance buying strategy is to make sure your family has the right amount of coverage, whether that becomes term, permanent or a combination of both. However, in my opinion, owning a cash value life insurance policy is a better value than buying term insurance as long as you can afford it. If you need life insurance and can get comparable returns to the market without the risks, more guarantees, tax free income, plus other benefits, then why not buy cash value life insurance? Consumers should not be fooled into accepting simplistic advice such as “buy term and invest the difference” just because it comes from someone with a TV show.

8 Lessons Learned: Services

Benefits of Hiring a Professional Residential Painting Company

A the matter does the painting job and one done by professional are very distinct. Some of the homeowners think through the right DITY o the painting job they will save a lot of money that would somewhat be wasted through the professional. It is short term, but in the long run they end up spending more money. Try working with the professional. They will save you money in the long run. Working with the professionals comes with a bundle of benefits. This will affect the quality of the work done. When you use the professional services, you can quickly tell the work of the professional through hat the gives ads the final output.

With the professionals there is much to benefit from. That is why we have this article for you. Find out more.

One of the people that they bring along with the professional is the crew they come with. They have the right equipment that will offer the right kind of a job required. It is very prudent that you work in the right direction and in the right way where you get the right understanding. At the end of the day, they are people you will surely get along with, and you will work with really well. The professionals will always give you the best job that you deserve. They will work out the job with the right machines at ensuring that you get the right output. The manual job in the company is as well offered by trained professionals who are out there to enhance excellence. The the professional institution sand has accredited people they are in the right place to get the job done in the right way. They also brings advanced equipment to the job as well professions painting tools that .

Residential painter is not an easy job. This is an area you are likely to spend most of your time and money at the end of the day. Professionals save your money and time. They are useful in the planning and the execution as well. In case you are not into these kinds of jobs, you are not able to get the right quotations that will lead you getting the right jobs at the end of the day. Professional as good in the budgeting a well as the timeframe. Should they tell you to wait for two weeks, be sure the painting work will be done with the period unless there are other underlying issues that might come up. They will as well carry pain to last the entire project.

Professional understand the difference between fake and original.

Life Insurance – 3 of the 7 Secrets to Reduce Your Life Insurance Premiums by 50% to 100% Guaranteed

We are in the midst of one of the most uncertain financial times in the history of America. This is the perfect time to take a very close look at the Life Insurance policy you’ve been paying for all these years and find out about the new, innovative and guaranteed policies which could reduce your annual premium outlay by 50% to 100%, assuming you qualify medically. Tens of thousands of policy owners have already taken advantage of these new plans issued by the largest and highest rated insurance companies in the world.

The Wall Street Journal recently warned that thousands of older Universal Life Insurance policies are failing due to Life Insurance companies having credited much lower interest rates over the years than they originally projected when these policies were first purchased. This interest deficit leaves the policy owner on the hook for unplanned-for cash-value shortfalls and policy expenses. These factors determine how long the policy will last based on the original non-guaranteed planned premium. Many of these so-called permanent policies are subject to early lapse in spite of the fact that the policy owner had been paying his billed “planned premium” each and every year. It’s all too common that neither the original agent who sold the policy nor the life insurance company ever took the time to educate the policy owner about the fact that the so-called “planned premium” they’ve been paying all these years was based on assumptions that failed to materialize. As a result, thousands of policy owners who expected to keep the policy in force until the insured’s death have been receiving lapse notices when the insureds are at advanced ages with medical conditions that preclude them from any reasonable economic options. In addition, if the worst happens and a policy lapses, its demise can result in a big tax income tax bill to the policy owner.

Fortunately, many older insureds are able to leverage their relatively good health combined with the cash value in their old policies and our physician-directed medical underwriting to qualify for the same coverage at a much lower cost. To address these very serious issues, we provide you with the following 3 of The 7 Secrets to Saving 50% to 100% on your Life Insurance Costs:

1. How to Double your Life Insurance Death Benefit at the Same Cost, Guaranteed. A large number of top rated life insurance companies are now offering guaranteed premium Universal Life insurance products with innovative premium payment strategies that can actually double an insureds death benefit at the same original outlay, assuming they qualify medically. These new Guaranteed Universal Life Insurance policies are much more competitively priced and have far stronger guarantees than older Whole Life and Universal Life policies.

A 67 year old husband and wife had an old Last-To-Die policy with a non-guaranteed death benefit of $1,200,000 at a $13,625 annual outlay. Their new policy had a guaranteed death benefit of $1,825,000, a 51% increase in death benefit, at a $6,000 annual outlay, a decrease of 56% in cost. The new policy was guaranteed to their age 100 by one of the highest rated and safest insurance companies in America.

Their older policy had a so-called blend of Term Insurance and Whole Life to maintain the total original death benefit. Most people are unaware of the fact that the Term Insurance portion of their Whole Life insurance policy is not guaranteed. The price of this term component can be increased by the parent company anytime the company feels the product is not profitable enough.

2. Using a Physician Directed Medical Underwriting approach consistently achieves the best possible insurance company ratings, resulting in the lowest possible outlay. The average life insurance agent typically submits your application to only 1 or 2 insurance companies and simply waits and hopes for the best underwriting offer. Life Insurance agents don’t normally have any real resources to make a difference in the dynamic process of medically underwriting your risk. Many agents often turn over the responsibility of ordering your private medical records to the insurance companies themselves, which is the worst thing they can do for their client, for many reasons. Because Doctors are now so afraid of potential lawsuits, they routinely write down everything in your medical file including remotely suspected and often unsubstantiated medical issues. This way, if a serious medical condition develops in the future with one of their patients who may be the litigious type, they have a written record to protect themselves. Unfortunately, this “write everything down and cover yourself” approach with today’s medicine causes many difficulties for older people who apply for life insurance. The problem is that when they apply for life insurance, insurance companies search their medical records for keywords in their medical records like cancer, heart disease, diabetes, high blood pressure, stroke and carcinoma. Even when the medical issue was simply suspected and turned out to be nothing, insurance companies routinely rate you up and charge you a higher premium.

The better way to underwrite is to have a physician obtain and review each of your medical records before they go to the insurance company. If something is in your records where your doctor more than likely wrote something to “cover themselves”, the physician will personally call the doctor to confirm his suspicion. If it was, in fact, a Cover Yourself item, which it often is, he will ask your Doctor send a follow up letter to the insurance company which accurately explains the issue away. This kind of “hands on” medical underwriting approach obtains consistently low premiums from Life Insurance companies.

In addition to your medical records being reviewed, an insurance physical is completed by a doctor at your home. Generally you should do this physical first thing in the morning, because you have to fast for 8 hours before the test and you are the most calm early in the morning.

After these steps are complete, don’t apply to only 1 or 2 insurance companies, your complete medical package and insurance exam should go to the 10 highest rated insurance companies that specialize in low outlay, guaranteed life insurance policies. Today, Life Insurance companies are quite willing to compete for your business. Out of the 10 companies, often 1 or 2 will give a much better medical rating than the other companies. This translates into the lowest possible outlay for you.

For example, a 65 year old recently applied for $2 million of life insurance who had a number of health issues which included a history of cancer and physical disability. The best underwriting offer he had gotten was a “Standard”. However, another insurance company that had originally offered him Standard agreed to a make a Business Decision and give him a “Preferred” health rating. His new insurance death benefit  increased by 80%, and his premiums decreased by 45%, on a guaranteed basis to his age 100, with one of the largest and highest rated companies in America.

3. How to pay $0 premiums for your life insurance. Many of our high net worth clients who have lost much of their net worth and income in this economic downturn have a reduced need for the life insurance they bought. Some have taken advantage of the Life Settlement Marketplace to sell their policy for cash instead of simply surrendering their insurance for its cash surrender value.

Most people are not aware of an exciting new type of Life Settlement Program that only a few companies offer: The Shared Death Benefit Program. Through this Shared Death Benefit Program, the client gets to keeps half of their death benefit for their family and never has to pay anymore premiums. The buyer pays all the future premiums for as long as you live, and they get to keep half the death benefit when you die in exchange for paying all future premiums.

A 72 year old woman had a five million dollar insurance policy and because her net worth and income dropped so dramatically, she decided she only needed to retain half of her $5,000,000 policy. Her insurance company offered her a paid up policy of $1,600,000 with no further premiums. The Shared Death Benefit program gave her a fully paid up $2,500,000 paid up policy, with no further premiums for as long as she lives.