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Insurance Settlements

Life Settlements – Liquidate your life insurance policy and receive money you can use now. Eliminate premium payments and get the true value of your life insurance policy. Life Settlements (Senior Settlements) let you benefit now from unwanted or unaffordable life insurance policies.

While there a many different types of life insurance policies, they generally fall into two categories – term and permanent.

Term

Term Insurance is the simplest form of life insurance. It provides financial protection for a specific time, usually from one to 30 years. These policies are relatively inexpensive and are well suited for goals, such as insurance protection during the child-raising years or while paying off a mortgage. They provide a death benefit, but do not offer cash savings.

Purchasing term insurance is like renting a home. It is a short-term solution. Monthly costs are usually lower, but you will not be building equity. Just as many people rent (while saving to buy a home), individuals who need insurance protection now, but have limited resources, may purchase term coverage and then switch to permanent protection. Others may view term insurance as a cost-effective way to protect their family and still have money to put into other investments.

Permanent

Permanent insurance (such as universal life, variable universal life and whole life) provides long-term financial protection. These policies include both a death benefit and, in some cases, cash savings. Because of the savings element, premiums tend to be higher. This type of insurance is good for long-range financial goals.

Purchasing permanent insurance is like buying a home instead of renting. You are taking care of long-term housing needs with a long-term solution. Your monthly costs may be higher than if you rent, but your payments will build equity over time. If you purchase permanent insurance, your premiums will pay a death benefit and may also build cash value that can be accessed in the future.

Renewable Term Insurance.

This policy allows you to renew coverage at the end of the term without having to submit medical information. The company renews your policy even if your health has deteriorated. However, the premium rate will usually rise with each renewal.

Convertible Term Insurance.

You can convert your term coverage into a permanent policy without providing evidence of insurability (usually a medical exam). Premiums for convertible policies are usually higher than for nonconvertible policies. Once converted, the premiums for the permanent coverage will be higher than those you are currently paying for the term policy for the same death benefit. However, the premiums for the permanent policy will now remain the same while the term premiums will continue to rise on renewal.

Level Term Insurance.

These policies provide a fixed premium for a certain number of years, usually 10 or 20 years, while the death benefit remains unchanged. The advantage is that you lock in a certain rate for the period of the policy. The disadvantage is that rates will jump considerably if you want to renew with another level policy.

Decreasing Term Insurance.

The death benefit in this type of policy decreases over its term. For example, you might start with $100,000 of coverage and the amount of coverage would decrease by $10,000 each year for 10 years. The premium will vary over the term of the policy.

Many financial experts consider life insurance to be the cornerstone of sound financial planning. It is generally a cost-effective way to provide for your loved ones after you are gone. It can be an important tool in the following ways:

Income replacement:
For most people, their key economic asset is their ability to earn a living. If you have dependents, then you need to consider what would happen to them if they no longer have your income to rely on. Proceeds from a life insurance policy can help supplement retirement income. This can be especially useful if the benefits of your surviving spouse or domestic partner will be reduced after your death.

Pay outstanding debts and long-term obligations:
Consider life insurance so that your loved ones have the money to offset burial costs, credit card debts and medical expenses not covered by health insurance. In addition, life insurance can be used to pay off the mortgage, supplement retirement savings and help pay college tuition.

Estate planning:
The proceeds of a life insurance policy can be structured to pay estate taxes so that your heirs will not have to liquidate other assets.

Charitable contributions:
If you have a favorite charity, you can designate some of the proceeds from your life insurance to go to this organization.
Insurance Settlements Amount

How is the settlement amount determined?
The settlement amount depends on which type of policy you have. Having inadequate insurance can affect the amount of compensation you get.

Replacement Cost and Actual Cash Value:
Replacement cost provides you with the dollar amount needed to replace a damaged item with one of similar kind and quality without deducting for depreciation-the decrease in value due to age, obsolescence, wear and tear and other factors. An actual cash value policy pays you the amount needed to replace the item minus depreciation.

Suppose, for example, a tree fell through the roof onto your eight-year-old washing machine. If you had a replacement cost policy for the contents of your home, the insurance company would pay to replace the old machine with a new one. If you had an actual cash value policy, the company would pay only a percentage of the cost of a new washing machine because a machine that has been used for eight years would be worth less than its original cost.

Suppose, also, that the tree damaged your 15-year-old roof so badly that it had to be completely replaced. If you had a replacement cost policy, the insurance company would pay the full cost of installing a new roof. If you had an actual cash value policy, it would pay a smaller percentage of the cost of replacing it.

Extended and Guaranteed Replacement Cost:
If your home is damaged beyond repair, a typical homeowners policy will pay to replace it up to the limits of the policy. When the value of your insurance policy has kept up with increases in local building costs, a similar dwelling can generally be rebuilt for an amount that is within the policy limits.

Some insurance companies offer a replacement cost policy that will pay a certain percentage over the limit to rebuild your home-20 percent or more, depending on the insurer-so that if building costs go up unexpectedly, you will have extra funds to cover the bill. These are called extended replacement cost policies.

A few insurance companies still offer a guaranteed replacement cost policy that pays whatever it costs to rebuild your home as it was before the disaster. But neither a guaranteed nor an extended replacement cost policy will pay for a house that’s better than the one that was destroyed.

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Are you thinking about your family’s welfare if you passed away? Or do you think you will be able to live comfortably when your partner died? If you are thinking of the possibility such as this, you might think of considering life insurance as a must have.

Life insurance grants your beneficiaries money when you passed away. Others used these money on paying debts, the funeral costs, the deportee’s child’s tuition for college, or expected expenses.

The main reason of having life insurance is to provide your dependents a source of income when you are gone. Life insurance companies are responsible on replacing your lost revenues.

There is a medical examination requirement when buying a life insurance. It involves urine and blood specimen, blood pressure evaluation, weight and height measurement. An interview regarding your health background is also conducted.

Mainly, there are two types of life insurance policy presently offered to the consumers. These are:

1. Term-Life Insurance – this is a less expensive life insurance policy. This is because the term of making payments for this policy only covers until you are able to make payments. Therefore, if such incident like you accidentally dies within the period you are making payments; your dependents will receive the corresponding benefits according to the duration of your payment.

There are at least four kinds of term-life insurance policy.

a. Convertible-life-term insurance allows you to convert your policy into permanent-life insurance. There is no need for medical exam, but the cost is subjected to increase.

b. Term insurance allows you to apply for a new life insurance policy without requiring you to undergo a medical examination. This is also subjected to a higher premium cost.

c. Level-term-life insurance allows you to pay for the same amount every year for the whole duration of the term. Along with this, you will be receiving equal amount of benefits if you happen to die during the payment period.

d. Decreasing-term-life insurance compensates a death assistance that slowly decreases in merit over time. Payments usually stay the same all through the duration.

2. Permanent-Life Insurance – This involves timely payments which means you are entitled to finish paying for the premium even you are dead already. You family or relative may continue paying for it if in case such event happened. The good thing of buying this type of life insurance is it provides a saving feature which can be utilized even you are still alive. It is said that this is more costly than that of term-life insurance.

There are at least four kinds of permanent-life insurance.

a. Whole-permanent-life insurance allows you to pay a permanent payment for a set death benefit. It also has a saving feature of cash that will provide you a money reserve.

b. Universal-permanent-life insurance allows you to change the amount of your insurance policy. But these changes may require you for a medical examination.

c. Variable-permanent-life insurance is quite risky. This is because your premium is invested on buying stocks, market funds and bonds. If the investment did not turned out well will result to bankruptcy. In the contrary, if it turned out good will provide you a higher money reserve.

d. Variable-universal-permanent-life insurance is a combination of premium and bereavement benefit flexibility of a universal-permanent-life insurance with the savings flexibility and danger of variable-permanent-life insurance.

When buying for a life insurance policy, you have to determine the kind of insurance and the range of your need. You have to take time on learning the basics of the term catered by the life insurance company before making a decision of buying one.

Dave Poon is an accomplished writer who specializes in Insurance. For more information regarding Exam Life Insurance [http://www.bestinsuranceworld.com/exam_life_insurance.php] please drop by at [http://www.bestinsuranceworld.com]

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A Life Insurance Policy is a personal property, like a house, car, antiques, old painting or stocks and bonds. You can sell your life insurance policy like you sell your other personal property items. Life insurance may now be viewed as a traditional asset that can be purchased or sold. Sale of Life insurance policy is called as Life insurance settlement, Life settlement or Senior settlement.

Millions of seniors are unaware of the flexible and liquefiable insurance policy, they can sell for cash. The flexibility of a Senior settlement or Life settlement permits policy owners to sell all or a portion of their life insurance policies.

When the life insurance policy owner sells own life insurance policy, he or she transfers all rights and obligations to a new owner. The purchaser of the policy will then become the new owner and the new beneficiary of the policy and is then responsible for making all of the future premium payments. The new owner now collects the full amount of the death benefit when the insured dies.

Life insurance settlements present a unique opportunity to the policy holder to extract the maximum possible value from an existing life insurance policy and repurpose those funds for whatever financial needs may exist. Many people choose this option because the cash value of a life settlement generally exceeds the surrender value that would have been paid by the life insurance policy.

Policies are sold for many different personal or business reasons. Below are some of possible reasons for considering a Life Insurance Settlement:

Personal:

1. The original purpose or need for the policy has changed or has diminished totally.

2. The Beneficiary of the policy is deceased.

3. Policy holder is chronically ill; selling current policy provides needed funds to cover financial burdens caused by illness. A Viatical settlement gives the ability to regain needed financial security.

4. Policy has not met the original illustrated values and premiums need to be increased to keep policy in force.

5. If policy holder is over the age of sixty-five, a Life settlement or Senior settlement maximizes the current assets by eliminating premiums and getting required funds that can be used today.

6. Insured person wishes to distribute the funds/ liquid assets as per his or her desire while living.

7. To make funds available for other investments like real-estate, stocks, bonds or to start a new business.

8. Divorce settlement has altered the need for life insurance.

9. Personal financial situation has gone bad and making premium payments is unaffordable.

10. Sale proceeds from Life settlements are needed to pay down loans or outstanding debt.

11. The policy owner’s current asset mix is weighed too heavily in life insurance.

12. A client wishes to invest in a more appropriate product, such as a lower cost survivor policy, single premium annuity for supplemental income, long term care insurance, long term care insurance or other asset protection tools.

13. A family trust has eliminated the need for personal life coverage.

14. Policy holder need to fund an alternative healthcare that present insurance does not cover.

15. Insured person has left an employer, so he or she needs to sell old group policy.

16. Policy was purchased to ensure the availability of funds to pay off a mortgage and the mortgage has been paid.

17. To take a long awaited vacation or to buy a luxury item that was never affordable.

18. When a policy is in danger of getting lapsed the policy holder can turn it into cash.

19. You can use life settlements to donate to your favorite charity or cause and feel much better about yourself knowing that you have done your part to make the world a brighter place.

Business:

1. Business owned policies those are performing below expectations.

2. Key person insurance policy is no longer required due to retirement or change in business structure.

3. A policy purchased to finance a buy/ sell agreement is no longer needed after the business has been sold.

4. Bankruptcy of business has caused liquidation of assets.

5. Deferred compensation programs in business have changed or not required.

6. If you are a corporation, selling corporate owned life insurance lets you regain back premiums paid on no longer needed policies.

Estate Planning:

1. A single life insurance policy is no longer appropriate- a survivorship policy meets the estate planning requirement and 1035 exchange is avoided.

2. If you are managing an estate, selling your current life insurance policy will help manage changes in estate size, eliminate premiums, and liquidate policies that are no longer needed.

3. A policy needs to be removed from an estate. The three year rule can be avoided by using the life settlement sales proceeds to repurchase a new policy out side the estate.

4. There is a significant reduction in size of estate due to loss of net worth and less insurance coverage is needed to fund the projected estate tax liability.

Charitable Organizations:

1. If charities can no more continue to pay premiums on gifted policies.

2. Proceeds of a Life insurance settlement could result in a larger gift to the charity organization than the policy itself.

Non-Profit Organizations:

1. If you are a non profit organization, selling a gifted life insurance policy provides funds that can be used now and also eliminates premiums.

Once a policy owner has absolutely determined that it no longer makes sense to continue holding a policy, Life insurance settlement or Life settlement may be economically advantageous relative to surrendering or letting the policy lapsed.

This innovative wealth and estate planning tool removes the burden of expensive insurance premium payments in addition to providing the lump sum cash settlement. This allows policy holders to get cash out of their life insurance policy, in an amount in excess of the cash value of policy(if any), while they are still alive. To get the highest life settlements is to improve the quality of life during your retirement years.

About the Author:

Paul Sherman is a Cash Flow Consultant. He offers free, professional and independent advice to Individuals, Business owners and Seniors. To secure a Life Insurance Settlement or Structured Settlement funding please visit http://www.Financial-ease.com

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Your course in financial basics is almost over. The financial ABCs course so far has covered banking and credit cards (Part I) and housing and taxes (Part II). Now we turn to ABC instructions on obtaining the best deals on insurance. Let the tutorial begin.

Life Insurance

Life insurance planning:

–Term Life insurance is cheaper than whole life insurance. Term insurance pays if you die before the policy expires. If you outlive the term of the policy, you and your family lose. But, the younger you are, and the healthier you are, the better your policy price. So you should buy term life insurance at a younger age for a long term to make it pay. Make sure the rate you have for a term life insurance policy is set for the entire length of the term.

Note: Whole life insurance, also known as permanent or cash value insurance, also has a time limit. If you die before the policy expires, it will pay a life insurance benefit, but if you outlive this policy, you get to collect what you have accrued in monies from your premiums, so you can get back some of that premium money, maybe more. However, many say you should have a whole life policy for at least 15 years to make it pay.

–Only buy the amount of life insurance benefit that you need. If you are young and have no dependents, you have no need for a large life insurance which is large in order to provide an income for your family. If you have no dependents and a pre-paid mortuary trust, you may not need life insurance at all or only a small benefit to take care of burial expenses if you have no pre-paid trust.

–If you happen to have young children, it is estimated you will need 7 times your annual income as a death benefit.

–Don’t lie about your health. If you are a smoker and tell the insurer you are a non-smoker, they can deny your death benefit if you should happen to die of a smoking-related cause of death.

-Don’t depend on a life insurance policy you get through your employer. It can be a good supplemental benefit for you, but if you should lose your job, there is no federal law that allows you to keep that policy.

–Buy directly though a company rather than go through an agent to save some money, or look for low-load policies which sell for little to no commission for an agent.

–Pay your policy premiums annually or semi-annually. If you have a monthly payment, and if it is automatically deducted from your bank account, the insurance company will charge you a handling fee.

–Don’t buy special life insurance for specific risks, like flight insurance, if you have a life insurance policy that covers you already. It’s costly and a needless duplication.

–Look for group life insurance plans such as those you can get through your alumni association.

–Save money by buying one large policy, say for $200,000, rather than two or three smaller policies for $50,000.

–Avoid riders. An accidental death or double indemnity life insurance is not worth the extra cost because the chances of predicting your exact death are slim. Other riders to avoid are the waiver of premium rider and the spousal or dependent rider.

–More is less. A $250,000 policy will cost less than a $240,000 policy. Multiples of $250,000 work better for pricing of policies.

–Check when the mortality tables come out with new estimates. The last was in 2003 and showed longer life expectancy, which lowers life insurance policy rates.

Health Insurance

Health insurance planning:

It is important to have good and adequate health care, but in this economy it is also important to know how to save your pennies when it comes to health care insurance coverage. If you exercise, stay in an average weight range, don’t smoke, don’t drink to excess, take any medications properly, and have regular health check ups all in pursuit of a healthy lifestyle, you will eliminate many health care costs. For example, some insurance plans are now charging up to $100 extra on the premiums of smokers!

Here are tips to get less expensive health care coverage: –Private health insurance rates are less expensive than group insurance rates, but your employers will offer group insurance. Most employers contribute to the premium cost, and that can save you in the long run, but, if you are young and healthy, it may be possible for you to find an insurance plan with comparable coverage for less money than what you will pay through your employer. Some employers will reimburse you for the difference, even the full benefit, in cash. If you have family members who have to be covered, you should also shop to compare if what you pay on top of your employer’s contribution for the extra it costs to cover your family is less or more than what you would pay for private insurance coverage of your family.

–Employers usually offer their employees two insurance plans, one with broader coverage for higher premiums and one with less coverage for less costly premiums. If you have to pay a percentage of your insurance premium costs, beyond what your employer contributes, you should evaluate the plan you take year-by-year as your circumstances change. Some years you will have children to immunize or to take to the orthodontist, and other years you will have maternity costs, which will dictate the higher insurance costs. But, look at your circumstances every year, and don’t buy more insurance than you need.

–Consider what the higher premiums offer you. Broader coverage, for instance will usually allow you physician choice, but if the physician(s) you use is in the lower rated insurance’s network, why pay for the broader coverage?

–Evaluate whether or not you should have higher deductibles and co-payments. With higher deductibles, you will pay less for your insurance, but more out of pocket. However, your out-of-pocket expenses will only be for times you use coverage, not over the course of your insurance policy, using coverage or not. If you have no maternity expenses or other expenses on the horizon and are fairly healthy, why not pay as you go and less for yearly insurance coverage?

–Open a health savings account, an account in which you and your employer can set aside monies for each year. This money can be used for deductible payments, co-pays, and other costs not covered by your health insurance, and you will not pay tax on these dollars. The rub is if you put in more money than you will use in a year, you forfeit the balance-so you have to do some careful pre-estimating.

–Ask employers and private insurers if they can offer you a lower rate on health care premiums as incentives for exercising, having a good weight, not smoking, etc.

Both Life and health insurance are important, but you have choices. Some of those choices will saw you money, especially when you are young. When you know the ABCs for planning you can be way ahead of the game.

Jan Rideout is co-founder of http://www.Pennypinchinghints.com, a comprehensive site dedicated to helping people manage their money, access shopping coupons, and find savings with deals and freebies.

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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 settlement” 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 Settlement” 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.

How it Works

The owner of the life insurance policy will sell it for a percentage of the death benefit a lump sum to a third party and, in exchange, receives an often substantial lump sum payment. The third party then becomes 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 settlement 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 on behalf of investors. In this situation, the investors become the owners and beneficiaries, and the settlement firm pays the premium until the insured dies. The firm then collects the death benefit and either pays its investors a percentage of the annual return or repackages the policy for sale to another party.

Take comfort in know that the process of selling one’s life insurance is typically very confidential. Most viatical companies and settlement firms understand the discretion necessary to make the process run smoothly and easily. However, a company may act disrespectfully and become borderline intrusive by trying to keep track of the insured’s condition. For this reason, it is important to work with a respectful, experienced organization.

Who Considers Selling

Those with serious, life-threatening illnesses are most likely to consider selling their life insurance to provide cash for various expenses, such as mounting medical bills. For those who are not terminally ill, selling the life insurance might be a good idea for a number of reasons. If the owner’s beneficiary has died or if the owner can’t afford to keep paying the premiums, it would appear that they no longer have sufficient use for the life insurance. Seniors around retirement age may also consider selling their life insurance, even if they are free of debt, in order to receive a lump sum of money with which they may do whatever they please.

Keep in mind that different companies may have different eligibility requirements to be able to sell your life insurance policy.

Advantages to Selling Your Life Insurance

It might be easy to see some of these benefits, but others are a little less obvious.
# You’ll receive a lump sum cash payment right now. As mentioned above, this is especially useful to the terminally ill who have mounting medical bills.
# You will receive more by selling your life insurance than you would if you simply surrendered it to the insurance company. It is possible for an insured person who is 65 or older or who is terminally ill to sell a policy with little or no cash value for a $100,000.00 or much more.
# You won’t have to pay any more insurance premiums. If your financial situation is becoming strained with no end in sight, eliminating premiums is a way to alleviate the burden.
# You don’t have to repay the money, like you do when you borrow against your insurance policy.
# Even though your life insurance benefits won’t be available once you die, you can still leave money to a certain person or organization – it will just come from the money that is leftover after using the funds from selling your policy. So, selling your life insurance does not

mean that you’re definitely robbing your beneficiaries of their gift.
# In some cases, the money you receive is tax-free.
# There are no regulations or restrictions on how you make use of the money you receive. You may spend as much of it or as little of it as you wish, however you please.

Risks of Selling Your Life Insurance

Understanding the risks associated with selling your life insurance will help you make an informed decision. Be sure to consult a financial advisor or tax attorney to make sure you understand the implications of the sale.
# You might lose your eligibility for some public assistance benefits, especially those based on your income and assets (such as food stamps, welfare, Medicaid and some Social Security benefits).
# There could be tax issues. Selling the policy will

result in a tax bill if the settlement amount exceeds your cost basis.
# With improved medical care, the ill person may live longer than expected.
# You might face unhappy heirs. This might not be a problem for you, but it could lead to a long road of (possibly legal) complications and battles. Some settlement actually companies require the beneficiaries to also sign off on any sale, which could be good or bad, depending on whether or not you’re dealing with a cooperative beneficiary.

Other Options

If you come to the conclusion that selling your life insurance policy is not for you, there are other options (though none that would provide you with such a large lump sum). An insurance agent should be able to help give you more information on some of these ideas.
# Borrow against your insurance policy
# Cash out the policy if it has surrender value
# Look into accelerated benefits or living benefits
# Borrow money (from family or friends perhaps) and use the life insurance policy as collateral

If you believe that selling your life insurance policy is the right decision for you, make sure you deal with a dependable, experienced broker or settlement company to ensure that you get the best service and results from your transaction.

David Springer is a consultant for Sovereign Funding Group. An experienced, reputable company that offers convenient, no-risk services to help you with the selling of your deferred payments, business financing solutions including viaticals and life settlements.

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This article has been bought to you by Jackson Sharp. He enjoys writing about insurance products, and has recenbtly completed and Apple iPhone Insurance website.

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.

Craig Kirsner, MBA is offering his new Free Special Report “7 Secrets to Saving 50% to 100% on your Life Insurance, Guaranteed”, which also reveals how you can save a fortune using our Life Expectancy Insurance Pricing. To receive your free report, call 1-800-807-5558, extension 103 or email Craig at StuartPlanning dot com

http://www.StuartPlanning.com

Craig is a published author who at the end of 2005 wrote a book accurately warning that we had just passed the top of the real estate market, and that recession would follow the drop in real estate market prices. He received his Masters In Business Administration from the Chapman School at Florida International University, specializing in Finance. He was one of the top graduates in his class and was inducted into the Beta Gamma Sigma Business Honor Society.

Craig received his undergraduate degree from the University of Florida with a double major in Finance and Risk Management.

Craig is very active in many civic groups and charities and in 2006 was named Hands On Miami’s “Volunteer of the Year”.

Copyright Stuart Estate Planning 2009. All Rights Reserved. ***Disclaimer: This information and the corresponding websites do not constitute professional services, including, but not limited to investment or legal advice. Please consult an accountant, investment professional and/or attorney before implementing any strategy.

Article Source: http://EzineArticles.com/?expert=Craig_Kirsner

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Long term care insurance is a very important but costly policy. Will you like to get lower rates? Below are tips to help you in that quest…

1. Same as for all other policies out there, you’ll enjoy cheaper rates if your employer gives long term care benefits through a group policy. This option helps you save because the company might likely bear part of the cost. In addition, insurance providers generally offer groups concessions in order to attract more members of those groups.

Search for any opportunity out there for a group long term care policy. It will save you a lot. Howbeit, make sure it’s offered by a carrier that’s been around for sometime and is financially strong enough to remain in business for many years to come. This is essential since it may take many years before you make a claim.

2. Some life insurance policies or annuities make provision for you to include long term care benefits as a rider. Check if yours allows this. If you’ve yet to get any of them then it is recommended for you to purchase a life insurance policy or annuity that either has long term care include or allows you to include it as a rider.

Why does this bring about savings? It’s clearly because it’s cheaper for a provider to combine both in one policy than to offer both as different policies.

3. Just as a higher deductible will lower your premium for other insurance policies, a longer waiting period will reduce your long term care insurance premium.

If two customers of exactly the same profile choose precisely the same coverage amount with the only difference being the waiting period, the shopper with the longer waiting period will receive a cheaper rate. For instance, let’s assume the first person chooses a 30-day waiting period and has to pay a premium of $3,000. If the second person elects to have a 90-day waiting period, he/she would pay about $2,100 or 30% less.

But as you take advantage of this opportunity to get cheaper rates, don’t forget that you’d have to make provision for your long term care expenses during the chosen waiting period.

4. For people who are married, you can pay a lot less for long term care insurance if both of you buy one joint policy. With a joint policy you’ll get paid if either or both of you need long term care. However, while buying this type of policy do double diligence and be certain the needs of both of you are provided for in the fine print.

Below are other factors that will affect your long term care insurance rate…

1) Your weight

2) Smoking

3) A history of drug or alcohol abuse

4) Multi-policy discount

And whatever steps you take, remember to obtain and evaluate quotes from many insurance providers. This will save you thousands in premium dollars over the years…

Free Insurance Quotes and Online Insurance Quotes

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Most people who own homes have come to aware how necessary to support an sufficient level of coverage that will provide the required level of protection, but very few people understand that there are mitigating circumstances and scenarios that may require some additional planning and thinking.

Many homeowners do not think about different situations that may warrant a reassessment of their property insurance. For example, most people who have decided to rent out their homes simply do not understand that their homeowners insurance policy may be absent in some areas. Some insurance companies have additional rules and riders that must be used if this property is not used as a primary residence, and there are often higher premium attached to these changes. Homeowners should be sure that they know who will be responsible for different types of situations that could lead to financial or physical responsibility.

Although the measures required can not be sharp, to most homeowners, the simple truth is that failure could lead to claim denied coverage or be limited. Mortgage life insurance is different type of product or program that is designed to protect the property by paying off the entire debt in case of death of the insured. Although there are some obvious advantages of mortgage life insurance, there are also some things that need perscrutation as well. Much mortgage life insurance policy provides only the survivor’s allowance is paid to the creditor and may be quite high compared with other types of life insurance. Families who have more than one income members should know what they really want to have separate policies to cover all the possible worst-case scenarios. The most obvious advantage is that homeowners can be confident that their mortgages will take care in case of death, but this can often serve as a consolation for widows.

Some homeowners, of course, more likely to use mortgage insurance life than others, and the most common clients are those who are concerned about the possibility of paying for a mortgage loan, if there are significant reductions in income. Many families depend on two incomes and can not make ends meet with less. Individuals may not be interested in protecting their homes from foreclosure in the event of death.

There are several families that can not be too long for their homes, and these clients may be better suited another insurance product. While many people use different types of term life products to protect their home, it is also becoming increasingly popular use of other types of life insurance and a return of premium life. Consumers understand that when the mortgage is paid off, other products of life insurance may be available to continue to expand coverage and will pay benefits in the event of death of the beneficiary, not the lender.

Adequate protection for the house is absolutely not one size fits all, and depends on a number of different factors. The landlord must ultimately decide what type of insurance products will best meet their needs. Regardless of what the consumer decides to do, then measures should be taken to ensure that every worst case was considered and prepared.

So, in case you are looking for Chicago life insurance, please go to this site which is specializing in life insurance in Chicago. This is the place where you can find lots of info about Chicago life insurance.

And whenever you need more knowledge on this topic, please don’t forget that we are living in the world where information makes life easier.

That is why if you are properly armed with the information in your sphere of interest you can rest assured that you will in any case find the solution to any bad situation. So, please make sure to get back to this blog on a regular basis or – the least time consuming way of doing it – sign up to its RSS feed. In such an easy way you will have a direct shortcut to the freshest info updates here. Blogging can be helpful, you just need to know how to use the info today.

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Like many other issues, this times a lot in common. Just as I can tell you that there is one senior law for health for all, I also can not answer that question “yes” or “no” without more information. But what I can do is give you several reasons that older people can benefit from the coverage. If some of the reasons apply to you, or an elderly person that you are helping care for him, it might be time to start trading on the policy.

Estate transfers

Many people want to give money to heirs, and life insurance policy can be a good way to achieve this goal. Most of the time proceeds from the death benefit will not be taxed. And since most of us just pay a monthly fee, it can be affordable way to plan the transfer of property.

So if your goal is to leave money to your spouse or children after the pass, consider using the policy.

Another issue of succession

Here is a usual situation. Let’s see the example of someone who holds a small law firm wants to keep his daughter, who is also a lawyer. He also has two sons, but they solved to become teachers, so they have no real interest in managing a law firm. But the man wants to be fair to his sons, and he knows that the law firm is its biggest asset.

So he buys a life insurance policy, the names of two sons. This policy in effect buys them from any interest in a law firm. Owner of the law firm used its scope in order to extend its assets will be sufficient for all children.

Insurance business

One of the common reasons that older people are looking for coverage, because they are needed for their company. Many managers and business owners are elderly. Funding sources may insist that their loans are protected policy. Besides, key man insurance can make sure that the company can reestablish financial assistance in case she loses a valuable member of the team. Such companies, large and small, are a major buyer of policies for older people.

Final expense

Probably the most common type of senior life we see advertised a smaller denomination whole policy life. In business, it is called final expense or burial policies. They tend to benefit in the event of death of several thousand dollars to twenty-five thousand dollars. They are designed to help the family pay the insured for the final cost. These can be things like funerals, medical services, debt, and travel.

If an elderly person has enough money saved and do not want to push the burden of the final cost of a spouse or children, small policies can ensure security. Sometimes older people are purchasing them for themselves, but other cases have grown children will pay a premium for their parents. It may be difficult to bring up the topic, but this is done, it is often a relief for the whole family.

You need a policy? Own budget, savings, and the unique situation should be considered. For some people, it would be better to postpone for a few dollars each month to a final spending plan. But many families have found it easier just to pay the premium.

So, in case you are looking for Chicago life insurance, please go to this site which is specializing in Chicago life insurance. This is the resource where you can find lots of info about Chicago life insurance.

And whenever you need more knowledge on this topic, please don’t forget that we are living in the world where knowledge makes life easier.

Due to this if you are properly armed with the knowledge in your sphere of interest you can be sure that you will always find the way out from any bad situation. So, please make sure to visit this blog on a regular basis or – the easiest way to take care of it – sign up to its RSS. In such an easy way you will have a direct shortcut to the freshest info updates here. Blogging can be helpful, you just need to know how to use the info today.

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Part of choosing a life insurance policy is understanding the different types of life insurance.. You see, these companies offers Whole Life and Term Life insurance.

Let’s focus on advantages of Whole Life Insurance. Whole life insurance isa type of life insurance that is acquired with a larger coverage for the insured. Whole life insurance remains in effect until the pay out of the policy.

Just like the Term Life Insurance, the policy will pay out upon the death of the insured or upon an event as specified in the policy.

Whole life insurance has a few major benefits over term life insurance.

It provides stable features

Whole life insurance offers stability. Its features are characterized by stable premiums, a guaranteed pay out and guaranteed coverage.

Time is not restricted since pay out even takes place prior to death . Whole life insurance guarantees financial coverage in case of death thus providing the financial benefit to your beneficiaries .

The insurance has monetary value

As I have mentioned earlier, one beneficial feature of whole life insurance is its cash value benefit. This means you can access loan based on the current cash valueor even cash out early and get whatever you have paid into the policy .

Life term insurance is not equipped with cash value, thus making whole life insurance much attractive in that aspect .

Usually any amount borrowed is not required to be paid back, but the borrowed amount is taken from the value of the policy. Thus, you may have heard of people who uses the value of the policy to pay the policy itself and it is possible to do so.

Provides flexibility

Whole life insurance policies are quite flexible. You can add onto to modify the beneficiary and change things as the years go on and your needs change. Just because you started the policy with certain terms does not mean it has to stay that way throughout the policy.

Additionally, because the policy carries cash value that you can cash out with at any time, you always have the option to take your policy elsewhere without losing the money you have paid into it.

Whole life insurance does not appear as the best option for the majority but given its coverage in case of death, it is an attractive package which secures your beneficiaries.

Whole life insurance is appropriate to those with dependents and those who are heavily relied upon for support. This type of insurance can give you a peace mind knowing that your beneficiaries are financially compensated in case of death.

You can look around to source for the Best Life Insurance Rates.
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