Variable life insurance is life insurance that gives account flexibility for more risk-oriented policyholders and it provides permanent protection for them. It pays the death benefit to a named beneficiary and offers low-risk, tax-free cash buildup. It permits the death benefit to vary, with regards to the fund returns of the cash value account. It lets a policyholder borrow from the policy, during his lifetime. However, it does not offer any guarantee on the amount of cash value, during the policy holder?s lifetime. It offers no premium flexibility and no face amount flexibility.
Universal variable life insurance is a variable life insurance that gives more control on the cash value account policy features, than any other form of insurance. It does so by paying the death benefit to a named beneficiary and offering low risk tax deferred cash value option. Furthermore, it offers separate accounts for investing in money market, stock and bond funds. It offers premium flexibility and allows people to make withdrawals or borrow from the policy, during their lifetimes. It insists that if a contract is terminated in early years by the policyholder, he will receive less cash value total returns, than mentioned in the contract.
A policyholder needs to devote time to manage the accounts. A policy?s long-term success depends on the investment made by the policyholder. This insurance does not work well with small premium amounts because it is necessary for the premium to cover the account and investment.
These variable life insurance policies are regulated at the state and federal level and can be risky. They do not guarantee either principal or interest. It is imperative that while purchasing a variable life policy, the agent presents the buyer with a prospectus. This should be equipped to furnish all the necessary information on the product.
While wide variety of insurance policies available for purchase offers great flexibility in safeguarding our possessions and loved ones, it can also create some confusion and myths around policies. Let’s take a look at some myths about life insurance and home insurance and shed some light on some of the most commonly asked questions:
Myth #1: Use Insurance Policies To Cover Everything
While there is such a term as “under-insured,” we can also be over-insured. When choosing what items to put under coverage, a certain risk and benefits analysis should be performed by the policy owner, and preferably with an experienced agent. The possibility of a particular accident occurring should be weighed against the associated premium. There is a cut off line between protecting against reasonable disasters and paying premiums on a policy that will almost never pay off.
Myth #2: Claim Every Incident
Before making an insurance claim, take a moment to do some math. Nearly all plans require deductibles, so getting an idea on the total damages before filing a claim is a good idea. An abundance of claims will also make you appear to be a risky person to insure, meaning your premiums may very well increase. Now, don’t be shy about using the home insurance you purchased, but be careful of situations where it doesn’t pay to file a claim.
Myth #3: Only The Main Income Generator Needs Life Insurance
Some people see a stay at home spouse as a person with zero income, therefore they do not need life insurance. Putting aside the obvious emotional toll and final expenses, do realize that a homemaker does a lot to maintain a household that would otherwise be very expensive. Look at the cost of childcare, and then add in food preparation, housekeeping, school transportation, and the dozens of other activities that homemakers do on a daily basis. Now you can see why a full time homemaker contributes at least the equivalent of a full time job.
Myth #4: You Don’t Need Flood Home Insurance If You Don’t Live In A Flood Zone
Deciding on a flood rider on a home insurance policy requires a calculation of risks and benefits. Be aware that any area can suffer from flash flooding when a period of heavy rain follows a drought or long dry season. Water damage is usually not covered on standard home insurance policies; make sure to investigate the risks involved without flood coverage.
Myth #5: Whole Life Insurance Is Always The Best Option
The myth that whole life insurance is ‘always the best’ stems from the fact that whole life and universal life policies have a cash value that accumulates and is usable before the insured passes away. Of course, this perk comes with an increased premium. There are very few rules when it comes to insurance plans that are set in stone. Always weight the options between whole life and term life policies. Sometimes it makes better sense to purchase the less expensive term policy and invest the difference in a retirement account.
Ultimately, taking a look at these five myths will help us make better financial decisions when it comes to insurance.
Many people need help in finding affordable whole life insurance, as it is extremely important decision to have to make. The following suggestions will make shopping for a whole life insurance policy a much easier process.
The internet is a great place to begin looking for a whole life insurance policy. There are many great websites that could give you life insurance quotes from several different companies at once. Just remember while filling out the initial questionnaire that you answer all questions honestly in order to get the most accurate quote. You should also be sure to follow up with the insurance company to make sure that no further information is needed to process your whole life insurance policy.
If the internet isn’t accessible all you need to do is pull out your phone book and look up that names of local insurance agencies. They can be a great help for those looking to find affordable whole life insurance and most all local insurance companies will be happy to walk you through everything that a whole life insurance policy covers in order to make sure you get the policy that will meet all your unique needs.
Make sure to do some comparison shopping when you are looking to find a reasonably priced life insurance policy. Most people that need help in finding affordable whole life insurance policy need to keep this in mind so they make sure they purchase the best possible policy for the best possible price.
Do not feel by any means that you need to purchase the first whole life insurance policy that is offered to you. Ask plenty of questions and make sure that you understand every last part of the insurance policy. If the insurance agent or insurance company that you are working with are not answering your questions clearly enough or are pressuring you into purchasing a policy that you are unhappy with then move on.
Keep all these tips in mind if you need help in finding affordable whole life insurance. This way you will be able to find the policy that will meet all you needs at the best possible price.
Now that you have finally decided to sit down and make sure that you have all of your final arrangements set in place, there is a lot that you need to consider when it comes to the best whole life insurance. The whole life insurance policy is one that is generally the best for people when it comes to the long-term outcome but it is something that people generally avoid because of the upfront money. Generally speaking, even the best whole life insurance plan will have you paying a pretty high premium.
This is to make sure that the best whole life insurance company has gained enough money from you upfront in order to pay out down line. Also, the best of the best whole life insurance companies will only have you pay a premium for about twenty years or so which means your monthly premiums will be on the higher side. It is better to pay the high monthly or yearly premiums now instead of later when you are retirement. Taking care of getting the best whole life insurance plan in place now is something that is extremely important to take care of.
When it comes to trying to shop for the best whole life insurance it is extremely important to make sure that you are not taking the first policy that you come across. The reason is that you may very well come across truly the best whole life insurance policy and find that you are over paying. Now you can always stop the policy that you paid for and begin a new one with the better company but all of the money that you put into what you thought was the best whole life insurance plan is wasted and that is money that you are not going to see again.
Make sure that you are keeping good notes of all of the various companies that you come across and what the details are for the policies that they are offering. By taking notes and taking the right amount of time to compare it all, you will be able to truly find the best whole life insurance plan out there. Once you have found the best whole life insurance plan you will want to go ahead and take care of it and get it all started The sooner you sign up for the best whole life insurance plan then quicker you will be done paying for it all.
There exist a plethora of various interest assumptions, fees, expenses and many other factors that are used in order to develop any given life insurance company?s premiums for a particular policy. The rates of these policies are at the end of the day based upon only a single factor. That factor is the statistical probability of the insurance holder dying within the period of the given year. Such statistics of that probability, depending upon the experience of the insurance company and the government records, are then used to compute and determine a yearly death cost for each thousand dollars of life insurance benefit.
Since statistical probability of people dying at a young age is very less, correspondingly the death cost for those particular years also will be extremely low. Gradually as people begin to age, the statistical probability of death simultaneously begins to increase. This increase is slow to begin with and then increases more rapidly usually after the insurance holder passes his or her middle age. Thus the annual death cost also increases.
From this information you must have now gauged that the cost of term life insurance varies from case to case. If you are looking for a fast method of obtaining quotes that is also hassle free, the best place to start is the Internet. There are now a number of sites that have online forms that need to be filled and then with the simple click of a button you can have an estimate of the cost of your policy. These forms are easy enough to fill and have some mandatory fields to fill. The information that you need to provide via these forms is just basic data like age and brief medical history. This information is then used to determine the cost of the term life insurance policy.
You can thus check on a number of different insurance providers before settling on a final one after comparing the costs and the quotes.
A term life insurance policy or plan that does not have any form of agent commissions or cuts attached to it is commonly termed as a no load term life insurance policy. This kind of no commission policy is thus devoid of any tussle due to conflicts of interest on behalf of agent and the person seeking insurance. This is a kind of coverage that can cost the policy holder a lesser amount of money and at the same time can offer the individual a quality product.
Most companies today will offer this kind of no load life insurance quotes or policies directly to the public for purchase. In order to receive an estimate, the customers who may be interested in such a policy can shop on the Internet or even speak to several professionally licensed advisors. The professional advisor is very different from an agent who makes commissions on sales. In case of a product devoid of commission the initial fee attached may be higher but on the overall the customer would have saved more money.
Purchasing a life insurance policy means being responsible for the future of one?s family. In case of a no load life insurance policy the premium rates that are quoted can most likely be noticeably less than that of a standard plan from a regular insurance company. This again can be attributed to the fact that there are no marketing fees or commission so to speak added on to the price of the policy. A no load term life insurance is additionally a form of coverage that costs you the least amount of money. Such term policies will have non-existent cash value, but will however provide you peace of mind in knowing that your family and assets are protected financially for a specified period of time in the face of any unforeseen mishaps or tragedies.
Life insurance agents are the representatives of a life insurance company who contact people and make them aware about the various insurance options available. They help the customers decide the insurance policy that would suit their needs as well as budgets. However, life insurance agents need to find and filter potential customers out of the huge population that provides the customer base. As there are many types of policies, there are also many types of life insurance leads.
Today the Internet is one of the biggest and possibly most reliable source of generating life insurance leads. Customers who are looking for life insurance quotes submit their details for assessment. This information is collected and stored as a lead. The life insurance agent, who receives this lead, will then contact the potential customer and offer more details. Usually, people do not submit their request on only one website. This means that multiple insurance agents will have the same lead and will contact that prospect. This is advantageous to the customers, as they will now get competitive rates. Customers usually inform the insurance agents, that they are getting better rates elsewhere, which might result in the agents revising the quote to a lower rate.
Life insurance agents also keep a tap on other markets that require life insurance. For instance, people purchasing a mortgage are required to have a life insurance policy in certain cases. Life insurance agents then contact such customers and approach them to fulfill their life insurance requirement. Such leads are known as mortgage life insurance leads.
Health insurance leads are also generated in a similar way. Life insurance agents procure the list of customers who have either purchased or enquired about a health benefit policy. Such prospective customers are also more likely to buy a life insurance policy if a policy is customized in their budget and offers required benefits.
There are many companies in the market that specialize in generating and then selling these lists to insurance agents as well as brokers. These companies can also be approached for various types of life insurance leads.
MetLife, the nation’s largest life insurer, said Tuesday that it would make its business more transparent by moving some deals for hedging risk back to the United States from offshore, pleasing regulators but underwhelming the stock market.
For a number of years, MetLife has been using a Bermuda subsidiary, Exeter Reassurance, to reinsure several billion dollars’ worth of variable annuity contracts, in which customers pay in advance to receive guaranteed payments in retirement. By buying the reinsurance, MetLife was able to remove the obligations to these policyholders from its balance sheet.
Such transactions have become extremely popular in the life-insurance business in recent years, and regulators at the New York State Department of Financial Services have been investigating the deals since last July. The department’s superintendent, Benjamin M. Lawsky, recently called them “financial alchemy.”
“Let’s call it shadow insurance,” Mr. Lawsky said in a speech in April, recalling the so-called shadow banking system that appeared in the run-up to the financial crisis.
MetLife and other insurers have been trying to cope with the Federal Reserve’s long-running policy of keeping interest rates very low to help revive economic growth. Many life insurers are having trouble because they normally buy bonds to make good on annuities they sold in the past, and they cannot get the yields they need in the current low-rate environment. They can reduce the obligations on their balance sheets, however, by shifting them to reinsurers.
But buying reinsurance from an off-balance-sheet subsidiary “does not actually transfer the risk for those insurance policies off the parent company’s books,” Mr. Lawsky said in his speech. By law, reinsurance must involve a real transfer of risk; otherwise insurers are not supposed to use it to improve their balance sheets.
Mr. Lawsky said questionable reinsurance deals throughout the industry were increasing the likelihood that policyholders would not receive their payments at some point. He also expressed concern that they were causing systemic risk within the broader economy, the way the booming growth of mortgage-backed securities had done in the years before 2008.
MetLife’s chief executive, Steven A. Kandarian, said in an annual presentation to investors on Tuesday that repatriating MetLife’s policy obligations from Exeter “proactively addresses recent regulatory concerns” about such deals, adding that Mr. Lawsky’s inquiry had been an important factor. He also said the change would put MetLife in a better position to comply with new collateral requirements put in place by Congress after the financial crisis.
Mr. Lawsky issued a statement on Tuesday praising MetLife’s decision, saying the company had “acted wisely in bringing this subsidiary back to the United States, where it will be subject to stronger rules and oversight.”
MetLife said the transaction, which it expects to complete next year, was also part of an effort to lower the risk of its variable annuities business. It also said it was ratcheting back on sales of the annuities, aiming for $10 billion to $11 billion worth this year, compared with $28.4 billion in 2011.
MetLife’s shares closed down 1 percent, or 48 cents, to $42.82.
When MetLife’s transaction is complete, it will have returned Exeter to the United States and merged it with three state-regulated MetLife units: the MetLife Insurance Company of Connecticut; the MetLife Investors U.S.A. Insurance Company, now based in Delaware; and the MetLife Investors Insurance Company, based in Missouri. A spokesman said it was not yet clear where the merged company would be based.
shopping can be a great way to relieve stress after a busy week at work. You get to spend time thinking about those jeans will look on you or how cool that TV would look in your living room. It gives us a chance to escape from the realities of life for just an hour or two. Thanks to the Internet, you have more options than ever when it comes to how and where you shop. Auction sites in particular have revolutionized how we think about paying retail prices for just about anything people use on a regular basis.
Auction sites are auctioning off almost anything that you can imagine. If you don’t know what you want, you can bid on a gift card that you can redeem online or at a retail establishment when you do finally figure out what you want to buy. These sites offer you an opportunity to buy a new computer or set of golf clubs for far below retail value. There are even auctions where the bids only go up a penny at a time until the item has been sold.
These penny auctions specialize in auctioning off brand name items at a substantial discount. You could potentially get a $1,000 item for as little as $5 or less if you have a good bidding strategy. The only downside to a penny auction site is that you have to pay for the right to bid. This could drive up your costs substantially. However, as long as you limit yourself to a fixed number of bids, you can keep costs in check in the event that you lose.
Auction sites are a great place to do clothes or Christmas shopping. You can buy real products from real people who will ship your goods to you within days. Whether you are in Arizona or Alaska, you can connect to sellers around the world to get the best prices on the goods that you shop for everyday. If you are into saving money, online auctions are the best place to go to get like new items at closeout prices.
Life Insurance is an important investment and irrespective of the income level, it is imperative to buy at least a basic Life Insurance plan. This helps to secure emotional and financial stability. It is very important to know and understand which plan would be ideal for an individual’s specific needs. The details that have to be considered are the financial status, assets, affordability, debts and credits, including child support expenses and any other related expenditure. The present insurance market offers a host of varying policies and it is quite difficult to make a choice.
Permanent and Term Life Insurance are the two regular Life Insurance plans. They have their own advantages and disadvantages. They should be opted for keeping in mind optimum benefits and minimum expenditure. A permanent insurance guarantees forced saving, tax-free income, paid-up additions to the benefits, provisions of extended term periods and the provision of borrowing. However, a high rate of premium is applied, to avail of these features. It covers the monetary loss incurred by the investor?s death.
Term Insurance, on the other hand, covers the beneficiary only if the investor dies during the insured period. The premium charged for such insurance is much less than a permanent insurance and it has no saving feature. According to experts, a term insurance can be the best deal if the investor saves the difference and puts that money to good use. The interest received can become an additional income in that case, maintaining a low cost insurance at the same time. Surveys reveal that twenty percent of the investors lose their policies within two years and fifty percent of them in five years, after buying permanent policies.
Investors can go through all the necessary details associated with a particular policy and then decide if it meets their requirement.