Life Insurance Policies
Whole Life Insurance – Did You Know?
Did you know that whole life insurance or some variation thereof is bought more than another types in the United States? Why do you think this is so? Is it because the people know nothing about term insurance? Not so! Term insurance is simple to understand. You own $1,000,000 of term life insurance for a specific period of time and you die within that period the life insurance company pays $1,000,000, as long as you keep paying the premiums. Everyone knows about term life insurance.
Permanent life insurance is a different matter. There is much more to absorb when it comes to a permanent policy. You can consider the whole life insurance policy which is really a policy which lasts for the rest of your life, even if you live to age 100. The premium payments can be level for the entire period or, as with some modified whole life policies, you start out with a lower premium and it increases every year for 5 or 10 years then it levels off.
On the other hand you can contract with the life insurance company to pay only for a specific period of years, 10 years or 20 years for example, and the policy will remain in force for the rest of your life. You can also arrange with the company to pay one lump sum and you have your single premium whole life insurance policy for the rest of your life.
Even the the variable life insurance policy is whole life based thus it is considered permanent life insurance. Variable life insurance is a whole life policy with an investment portfolio attached.
These are the basic variations of whole life insurance. Each life insurance company has a different slant to their modified whole life policies, however.
Whole life insurance policies have guaranteed cash values which you may use as you see fit. You may use these values as collateral if you want to get a loan from a bank or other financial organization. On the other hand you may choose to borrow the money from the policy itself. The interest rate is usually lower and you are never under pressure to repay within a given period of time. Any outstanding balance, however, will be deducted from the face amount upon your death.
Whole life insurance policies also earn dividends if your life insurance company is effective with their investments and also if they keep expenses down. Dividends are not guaranteed. These dividends are applied according to your wishes.
The dividends earned on your whole life policy can be used to reduce premiums, can be paid to you in cash each year, can be left with the life insurance company to accumulate interest or they can be used to purchase paid up additions. Paid up additions are tiny single premium whole life insurance policies which increase the amount paid at death. They also have cash values which accumulate interest and they earn dividends as well.
Permanent life insurance policies are very effective, yet complex, tools. If you take the time to understand them you will more appreciate why more people buy them than term insurance. Whole life insurance can be kept for the rest of your life.
What is Life Insurance Settlement?
Win – Win Financial Solution for Seniors!
A Life Insurance Settlement is the sales of a life insurance policy to a third party in exchange for a cash settlement in excess of the cash surrender value of policy —even if none exists! This is also called as Life settlement, Insurance settlement or Senior settlement.
Typically, a Life insurance settlement or senior settlement is about three to five times the cash surrender value of the policy.
Life settlement: When an individual who does not have a terminal or chronic illness sells a policy for other reasons, including changed needs of dependents, wanting to reduce premiums, and cash for meeting expenses, that is known as a Life settlement.
Viatical settlement: When an individual with a terminal or chronic illness sells his or her life insurance policy that is known as a Viatical settlement.
Hitherto, elderly Americans with life insurance policies they do not need or cannot afford to keep up have had little option. They will let the policies lapse or sell them back to their insurers. Now lots of them are glad to have an alternative, i.e. Life Insurance Settlement or Senior Settlement. Seniors may now be able to sell their policy for far more than the cash surrender value the insurance carrier would offer.
When you go for Life Insurance Settlement or Senior Settlement, the life insurance policy owner sells his or her contractual rights under the policy at its present market value in exchange for a lump sum cash payment, which payment exceeds the cash surrender value of the policy.
The purchaser of the policy will then become the new owner and the new beneficiary of the life insurance 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 settlement or Senior settlement present a unique opportunity to the senior policy holder to extract the maximum possible value from an existing life insurance policy and repurpose those funds for whatever financial needs may exist.
Seniors can use the money received from Life Insurance Settlement or Senior Settlement, to purchase new insurance, travel the world, start a business, buy a property or fulfill their dreams. The money is theirs to simply enjoy and use it for any reason they can think of. In fact, seniors can use the cash settlement for medical expenses, living expenses, or anything they desire—with no restrictions.
There are various reasons why seniors sell their life insurance policy and opt for Life Insurance Settlement or Senior Settlement.
Why Sell Your Life Insurance Policy?
1. If you are chronically ill, selling your current life insurance policy provides needed funds to cover financial burdens caused by your illness. A viatical settlement gives you the ability to regain needed financial security.
2. If you are over the age of sixty-five, a life insurance settlement or senior settlement maximizes your current assets by eliminating premiums and getting funds that can be used today.
3. Pay off debts.
4. Make funds available for other investments.
5. Turn a lapse insurance policy into cash with Life settlement.
6. Pay your medical care bills.
7. Finance your retirement.
8. If you are a corporation, selling corporate owned life insurance lets you regain back premiums paid on no longer needed policies.
9. If you are a non profit organization, selling a gifted life insurance policy provides funds that can be used now and also eliminates premiums.
10. If you managing an estate, selling your current life insurance policy will help manage changes in estate size, eliminate premiums, and liquidate policies that no longer are needed.
What Insurance Policies Qualify for Life Insurance Settlements or Senior Settlements?
To find out whether you qualify, here are some of the requirements.
(A) Must be at least 65 years of age
(B) The face value of the policy is at least $50,000
(C) The insured has experienced deterioration in health since the insurance policy was issued; life expectancy is under 15 years
(D) The insurance policy is in effect beyond the two year contestable period
(E) You Are Over 21 with a Life-Threatening Illness – Viatical Settlement
But any policy owner, including individuals, corporations, charities or trusts, may sell any life insurance policy, including group and term policies.
What Types of Life Insurance Polices are purchased?
1. Government issued policies
2. Term Life
3. Universal Life
4. Survivorship policies
5. Many Group types of policies
6. Corporate Owned Life Insurance
7. Whole Life
8. Basically All Types of Life Insurance Policies
The Life insurance settlement value could be potentially much higher than the cash settlement of your life insurance policy. Do not continue to pay expensive premiums for coverage you no longer need, and do not surrender the policy or let it lapse. The Life Insurance settlement, Senior settlement or Viatical settlement solution is typically the Win-Win scenario that you have been looking for.
Why Should I Buy Life Insurance Over the Internet?
Because life insurance is so important, most people consider where they should purchase it from. There are several options when shopping for a life insurance policy. An individual can acquire they coverage desired via local brokers, life insurance companies or directly from the web.
To uncover the best deals and rates requires a great deal of research. Many sales people are hired by life insurance companies to assist the customers select the suitable life insurance plans. Contacting these salespeople through telephone, e-mail or personally can be one to buy coverage.
However, always make sure that the life insurance organization is sanctioned by the state and the Better Business Bureau before shopping with them.
The World Wide Web is the ultimate location to find all the information you need. Online shopping is the simplest and most reliable way to buy a life insurance policy. On the internet you can get a fast accurate quote and also get information. Directories for online industries include a lot of companies. These can also help you to revise, equate, and buy a fitting life insurance policy for your state
The internet provides a number of sites where you can search for relevant information on where to buy life insurance plans. Information about the ratings and policies of leading providers of life insurance are available from these sites. By providing life coverage policies to meet their customers needs, these companies share similar fundamentals. Nevertheless, they each are different in coverage, exceptions and terms.
For example, Metropolitan Life Insurance Company, Transamerica Occidental Insurance Company, American General Insurance Company, CIGNA and Aetna are some of the recognizable and famous names among life insurers accessible on the internet.
These companies easily handle all types of life insurance policies. Each company will have their own website where you can check ratings and information about life insurance. A customer should go to all these sites to compare and find out the cheapest plan with all necessary coverage, before making the purchase.
Dependable applications and worry-not management of policies are some unique things that Metropolitan Life Insurance Company presents. For monitory planning their solution and services are the best. Asia and Europe are primarily served by Metlife and being a part of Reinsurance Group of America it serves the customers as well.
***American General Insurance Company*** (AIG) A leader worldwide in financial services dealing with insurance,retreat planning and savings. The insurance company covers the service internationally all over Asia, North America, Europe, and Latin America. AIG provides affordable life insurance, at a reduction rate of 75%. Online quotes make a shopping less time consuming and infinitely faster.
Term, whole, and universal life insurance policies are available at great rates from Transamerica Occidental Life. Other online companies who offer cheaper rates for life insurance are Aetna and Cigna.
There are certain online life insurance sites that help people to buy their policies. Using the assistance of the sites, you’ll be able to have an answer to your question as to where to purchase your life insurance. Visit the websites below to get moving in the correct direction. The quotes from major life insurers will be compared as listed above.