In the late 1980s, the AIDs epidemic gave birth to the viatical market, in which a terminally ill patient would sell their life insurance policy to a viatical firm for more than the cash surrender value. As AIDS patients began living longer, this practice eventually evolved into the Life Settlement industry. Today retirement age citizens with impaired but not critical health problems are offering their life insurance policies on the secondary market, selling to third party beneficiaries for more than the cash surrender value.

Today the size of this market continues to grow. Companies like MP Hanley and Associates market policies to a qualified institutional investor, several in fact, in order to secure the best deal for their client. The reasons for selling a life insurance policy vary from case to case. Perhaps a client feels they no longer need the policy. Their children may be grown up and gone, their estate taxation rate may have gone up, or their spouse may have died. Perhaps their premium is too high. Or maybe they just want the money to live out their remaining years comfortably. Whatever the reason, often times the opportunity to cash in for several times the cash surrender value is too much of an opportunity to pass up. So who qualifies for such an opportunity, and why?

life settlement The life settlement market is, as one might imagine, geared toward retirement age policy holders. One can qualify simply by being over the age of 65, having a policy worth over $250,000, and having a life expectancy of 2 to18 years. Life expectancy will be determined by an actuarial firm working on behalf of the potential investor. In fact the investor will do all kinds of due diligence in order to make sure a policy offers maximum financial potential in the future. Future premiums will be paid by the settling firm, who will then cash in the policy at the time of the former owner’s death.

The life settlement market has made a life insurance policy one of the most valuable and viable personal assets a person can have today. Circumstances change, and as they do more and more people are warming to the idea of a life settlement as a way to address current circumstances or set themselves up for the remaining years of their lives. Whatever the reason, the option is now there. In this way alone times, and the life insurance industry itself, have evolved.

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Settlement Option: How a beneficiary is given disbursement of the death benefit. The company might pay one lump sum or institute a money market account in the recipient’s name and supply the recipient the option of leaving the funds in the account or withdrawing some or all of it.

Suicide Clause: A life insurance policy will not disburse a death benefit if the owner of the policy commits suicide within the initial two years after purchasing the policy.

Surrender Charge: If you cancel an annuity or life policy ahead of time, the company may subtract a fee from the sum it owes you.

TAMRA: Technical and Miscellaneous Revenue Act. A 1988 Federal law that formed a new category of life insurance contracts. The contracts’ policy loans and surrender costs are subject to taxation regulations comparable to deferred annuities.

Term Life: The most basic form of life insurance, it normally offers no cash value element. You pay a premium and the company guarantees to pay your beneficiary if you pass away. The policy lasts for a particular length of time or “term,” such as 1, 5, 10, 15 or some odd years, or to an elected age like 65 or 100. If you are still alive at the close of the term, the policy terminates unless the company concurs to restore it. Renewal premiums are dependent on your current age. Sometimes called “temporary insurance.”

Underwriting: The insurance company’s procedure for deciding whom it will insure. An underwriter’s verdict may be based on your application, physical exam, health records, and other information to conclude whether you meet the company’s standard.

Universal Life: A flexible-premium life insurance contract which accrues values and pays a death benefit. You select the policy’s premium and face total and you can alter these permitting the policy is in effect. It is feasible that the cash value will produce more than the guaranteed lowest interest rate. It is also feasible that the cash value will develop more rapidly than is necessary to cover the price of insurance.

Vanishing Premium: An insurance company’s prediction on an illustration signifying that your policy could accomplish a position where you would not have to pay premium payments because the policy would have sufficient cash value to encompass the premiums.

Variable Life: A sort of whole life insurance in which the face quantity and cash value count directly on the investment performance of a particular fund. Reserves are put in investment accounts that are disconnected from the company’s universal account. Most policies promise a lowest face sum, but a cash value minimum is hardly ever guaranteed.

Viatical Settlement: A concurrence to sell the rights of your life insurance policy to a different, unrelated person who becomes both the possessor and beneficiary of the policy.

Waiver of Premium: A stipulation that postpones your duty to pay premiums when you are immobilized or you meet some other policy prerequisite. This is a frequent feature in life insurance polices.

Whole Life: Life insurance with a savings aspect. Premiums normally are the same (rank) annually. When you are youthful, your premiums are more than the price of insuring your life at that point in time. The surplus amount builds up and resembles a savings account, called “cash value.” This surplus is utilized by the company to insure you in the future, when your level premium is not sufficient enough to cover you.

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Are you in the market for life insurance? I bet you are looking for the cheapest policy with the most coverage, right? Obviously you want to provide your family with the most money possible so they can continue their life after you pass. If this describes your situation you need term life insurance NOT whole life insurance. There are many advantages including:

• Monthly premium stays the same over the term of the policy
• Cheaper policy for a lot more death benefit

I get asked multiple times a day what the best type of life insurance is and without a doubt term policies offer the right solution. Most people get life insurance to provide for their family in the event they pass away unexpectedly not if they live into their nineties. Just think about it, would you rather make sure your 10 year old son can go to college and succeed in life or would you rather see to it that your 50 year old son can buy a sports car when you die?

That last statement is exactly why buying a term policy is better than permanent. Term life insurance offers the cheapest premium for the most death benefit and for a specified period of time. This allows you to determine how much you want to provide for your family and for how long. Take the example of your 10 year old son, he has 8 years until he goes to college so if your only purpose of buying life insurance is to make sure he can get his degree then a 20 year term policy will work.

Another reason you should buy term insurance is your 2 year old twins and your wife. If you want to make sure your wife can stay home to raise your children and allow them to go to college it will take at least $500,000. Buying a permanent policy with $500k in death benefit would drive you into the poor house before you died. A healthy 40 year old male can get a half million dollar policy for less than $25 per month as opposed to a whole life policy which is likely to cost $150 or more per month.

If you still have questions talk with an insurance agent to find out more. The best way to find a local insurance agent who specializes in term life insurance is to shop online. You can get multiple insurance quotes in only minutes and find the cheapest term insurance from leading insurers.

Go to http://LifeInsuranceQts.com/getquotes.html for free quotes.

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Looking for the best company to cover your insurance needs can get very confusing. There are hundreds of insurance companies both regional and national that have different, and even opposing, policies when it comes to coverage. One of the best reviewed companies is the National Benefit Life Insurance Company (NBL). It has received strong ratings from the Insurance Marketplace Standards Association, Standard & Poor’s, and A.M. Best. It has also received a myriad awards from independent customer organizations around the country. Now the big question is: Does it live up to expectations?

The Company

Situated in Long Island, New York, NBL is a subsidiary of Primerica, one of the biggest financial services in the country. NBL has more than $30 billion face amounts on record and this keeps on growing as more and more people seek life insurance from them. NBL currently covers more than half a million individuals working for thousands of employers. NBL operates on a national level, covering businesses from all 50 states.

National Benefit offers many different term life policies. This is life insurance that is designed to protect your dependants financially for a certain period of time. This is especially important if you’re just starting a family, if you’ve just purchased a house, or if you have some other type of debt or expense you’re worried about paying, like paying for your child’s college expenses.

Disability Benefits

NBL started in 1963 under a different name. Fifty years later, they have developed a specialty on state disability, student insurance, health, and accident insurance. Of particular interest to many New Yorkers is NBL’s policies on disability claim. Different states have different statutory disability benefits laws. New York, in particular, requires employers to pay their employees weekly benefits if they ever had an illness or injury that is non-work related. If you have been with the company for more than 30 days, you can file a claim for your condition.

Although the NY Disability Benefits Law generally covers employees who work in New York, there are a few exceptions such as when your company’s headquarters is located in this state of if you’re performing services for someone in it. Disability claim can be obtained provided you have the right documents from your doctor.

Companies who are interested in getting a disability insurance quote from the National Benefit Life Insurance Company can head out to their website and fill out the application form. You will be asked basic information such as your company’s legal name, address, and intended date for the policy. The website also has a toll free number that you can call if you have further questions.

Life Insurance Quotes

Looking for life insurance quotes? Click to compare life insurance quotes online. Protect your family from financial ruin by finding the right policy for you. It’s easy and free. Just enter your zip code in the box and press enter. We’ll show you a list of companies in your area. Don’t wait – get your insurance quotes at http://getlifeinsurancequotes.info today!

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Let’s be honest. The topic of life insurance isn’t exciting or glamorous, but it is important. In fact, many experts consider life insurance to be the cornerstone of good financial planning.

But how do you know if you need life insurance? How much is enough? What kind of life insurance policy is best for you?

Answering these basic questions about life insurance will help to simplify the shopping process and ultimately allow you to select the best policy to secure your family’s future for years to come.

Establishing Your Needs

To clear up any misconceptions, life insurance is designed to protect your loved ones from financial loss in the event of your death. Knowing this, it’s important to establish whether you need life insurance and how much you should purchase.

According to MetLife you generally need life insurance if:

• You have a spouse
• You have dependent children
• Relatives or elderly parents depend on your income
• Your retirement funds are not enough to provide for your spouse’s future
• You own a business
• You have a large estate

The beneficiaries of your life insurance policy can use the proceeds from your life insurance to:

• Pay for last expenses and funeral costs
• Cover estate taxes (if applicable)
• Pay off existing debts (mortgage, car loan, credit card debt)
• Pay for everyday expenses (food, clothing, childcare)
• Put towards your spouse’s retirement fund
• Donate to charity

If you don’t have dependents, you may still wish to purchase a life insurance policy to avoid becoming a financial burden to your loved ones in the untimely event of your death. Young singles also benefit from purchasing life insurance while they’re young and healthy, allowing them to secure a low premium for years to come.

Choosing a Dollar Amount

Figuring out how much life insurance your loved ones would need to maintain their quality of living can be tough. Generally speaking, experts recommend purchasing between 5 and 10 times your annual salary. But, as MetLife points out, your exact need for life insurance will depend on your personal and financial circumstances.

You can get a ballpark estimate of your life insurance needs by first totaling the funds your family would need for the abovementioned items (funeral costs, daily living, etc.). You can find helpful worksheets online that will help you organize and come up with this list of expenses.

After you’ve totaled your expenses, take stock of the funds you have in cash, savings, retirement accounts, bonds, property, pension and Social Security. Subtracting your financial resources from your expenses will give you a rough idea of how much life insurance you should purchase.

When it comes to choosing how much life insurance to purchase, it’s a good idea to get an idea of your needs before buying a policy–but your licensed life insurance professional will undoubtedly help you choose a dollar amount that accurately reflects the needs of your beneficiaries.

Selecting a Policy

Generally speaking, there are two types of life insurance: term life insurance and permanent life insurance. The type of policy you select will depend largely on your life insurance needs and what resources you have to pay life insurance premiums.

Term Life Insurance

Term life insurance, as the name suggests, will cover you for a specified amount of time, which means the insurer will only pay out a death benefit if you die during the term of your policy.

According to the Insurance Information Institute (I.I.I.), most people purchase a 20-year term policy, although smaller terms are available. Of course, you can renew your term life policy after it expires, although your premiums may increase as you age. But all in all, because of the “temporary” nature of term life insurance, policies are generally much cheaper and are therefore an attractive option for young people and families with a limited income.

Permanent Life Insurance

On the other hand, permanent life insurance, as you might have guessed, is permanent. A permanent life policy will pay out a death benefit whether you die tomorrow or in 60 years.

Permanent life insurance is also an appealing option for many because of the added benefit of the policy growing on a tax-deferred basis, which can grow to be fairly large over time. As a policyholder, you may be able to borrow against this cash value while alive, which has been of great help to some. Of course, most loans need to be paid back otherwise they will be subtracted from the death benefit, and your beneficiaries may have to liquidate assets to pay back the loan.

Nonetheless, permanent life insurance offers a wide variety of saving and investment options. Because of this, policies are generally more expensive than term policies, which may be hard for young adults to handle.

Your life insurance professional will help you decide which type of policy is best for your life insurance needs–and your budget. But researching these policy types beforehand can help you narrow down which policies appeal to you.

Knowledge is Power

No, learning about life insurance and planning for the unexpected isn’t glamorous, but it is important. So take advantage of consumer resources and talk to a life insurance professional about purchasing affordable life insurance. You’ll rest easier at night knowing your loved ones are taken care of for years to come!

About InsureMe

Megan L. Mahan is a copywriter and insurance information expert with InsureMe in Englewood, Colorado. InsureMe links agents nationwide with consumers shopping for insurance. Specializing in auto, home, health, long-term care and life insurance quotes, the InsureMe network provides thousands of agents with insurance leads every year. For more information, visit InsureMe.com.

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Many people neglect getting their life insurance plan in order. The reasons for the procrastination vary and can include:

o I don’t want to think about dying

o It is too confusing.

o Do I really need it?

o Will I qualify?

o It’s too expensive right now and not in the budget.

While the industry will disagree, the truth is that there are times in your life when you probably do not need life insurance, but these are few, relative to the times when it is important for the financial well being of your family. The many options available can make your head spin, and not all choices are easily understandable by the average person out there. Don’t worry: All the different plans can be demystified. Your agent can be a great resource. Following is basic information you need to know:

Straight life insurance is also called whole life or permanent. Your premiums are set for life when you purchase the policy as is the death benefit. In general, the younger and healthier you are when you purchase the policy, the lower your premiums for the rest of your life.

As long as you pay the premium, your beneficiary will receive the proceeds when you die. Straight life policies build up cash values that you can borrow or withdraw if needed, but this will reduce the amount that will be paid to your heirs, if it is not paid back. Annuities are a form of life insurance that not only has a death benefit, but can also create a stream of income for you while you are still living. There are several types of annuities, but there are two basic types; fixed and variable.

A fixed annuity pays a fixed yield and has pre-determined payout to you while still alive depending on the date that you annuitize the policy and how many years the insurance company estimates you will live to collect those payments. You also can elect to pay a fixed payment monthly in exchange for a fixed monthly benefit for a specified period of time.

A variable annuity operates in a similar manner, but can potentially pay much better benefits to you because your premiums are invested in the stock market, and have the potential to earn or lose money. Your actual monthly payout, should you decide to annuitize is dependent on your success with your investments. There are also other options available with annuities, but you should talk with an agent for more explanation and discussion about whether or not this is a good option for you.

Perhaps the most popular is term life which is the easiest to understand and is the most economical. Term life is for a specific term (example 10 years), and will pay to your heirs only if you die during the term of the coverage. Young families can purchase a high amount of coverage relatively inexpensively to ensure that young children will be cared for in the case of the death of one of the partners. Term life does not build cash value. Burial insurance is self explanatory. It is meant to pay funeral expenses.

Mortgage life is like term life but usually more expensive. The purpose is to pay off the mortgage in case of the death of one of the borrowers on the mortgage. The value declines at about the same rate as the mortgage balance declines. Inexpensive term coverage, which retains a consistent life amount through the term of the policy, is a better value. For more specific information about what type of protection would be best for your situation, it is always recommended that you do your own research, and of course, check with an agent who can answer your questions.

Do you need no-nonsense planning and straightforward solutions when buying life insurance? Visit Stoneridge Financial to get great life insurance advice geared to your needs. Powered by SEO 2.0 Services

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The raging fires of the debate as to whether term life insurance is superior to permanent life insurance have cooled somewhat even though some so called experts hold fast to their beliefs. There are some, even though they have no real qualifications in insurance who hold to to the idea that term is better. There are others who claim to be investment experts who also agree. Has anyone ever bothered to ask the actuaries who have spent hours designing these products what their opinion is? Has anyone asked the consumer? The desire for permanent life insurance never died but on the other hand term life insurance is more popular than it used to be.

There are strong arguments that term life insurance is pure life insurance but is it really? There are the contenders who claim that the difference between the inexpensive term policies and the more costly whole life insurance if invested would yield humongous profits but will it? Is that money invested anyway? Americans are enjoying more prosperity today than they ever had. Can a part of their prosperity be attributed to the fact that they are investing more money? Is the money saved or invested a result of the fact that they buy more term insurance and therefore have more money to put away? I don’t think so.

Americans earn more money today than they ever have and they are more conscious of the possibilities of true prosperity if they invest their money. The fact is that buying term life insurance as against whole life has nothing to do with their upward financial movement.

Term life insurance is good insurance simply because it provides cash or income to our loved ones if we should die while they still need to depend on us. The cost is minimal, depending on the type of term policy you buy. The truth is that whole life insurance does the same thing. Your outlay is more but whole life provides many options that term does not consider.

Whole life has cash values that can be left to accumulate with the life insurance company. Your whole life policy can also earn a dividend. The amount will depend on how well the company performs. Dividends are not guaranteed. The dividend can be left to accumulate interest, can be used to reduce premiums or may be used to purchase paid up additions which are small single premium policies of the same type as the base policy. These additions also accumulate interest.

I think these so called experts should refrain from trying to tell people what type of life insurance to purchase and give them the option of looking at both types. These people are quite capable of making their own decisions as to whether the superiority of term life insurance is a myth or is in fact a truth that all intelligent people should accept.

For details on term life insurance go here:

http://www.lifeinsurancehub.net/termlifeinsurancequotes.html

For details on whole life insurance go here:

http://www.lifeinsurancehub.net/whole-life-insurance.html

For more than 40 years Donald has been known for his extensive knowledge of the life insurance business. He has represented some of the largest and most admired life insurance companies in the United States as well as Canada. His advice is invaluable.

Donald’s website is: http://www.lifeinsurancehub.net

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When buying life insurance, there are so many options that it may be difficult to know where to start. While an insurance agent can certainly help you understand these options in simple terms, learning about the major types of insurance can help your research and know the right questions to ask. Here are the major types of insurance available and a little information about them.

Term Insurance

Protection with this life insurance is provided for a limited period of time. The amount of time could be in 5 or up to 20 year blocks as well as specific ages up to 80. These policies are available with differing premium guarantees. If the guarantee is for a long length of time, the premium will be higher initially. The beneficiary receives the full face amount for the policy in the event of your death during the period of term.

The premiums become locked for the length of time specified through the terms of the policy. Earlier ages can offer lower premiums for the life insurance but will be higher as you age. The plans could be converted to the whole life insurance. Level insurance is provided if the exact same benefit is continued across the time of the policy. There is also decreasing coverage that is available throughout the period for the same rate of insurance.

Whole Life

Whole life insurance is also known as permanent insurance or ordinary life may be another term used. This insurance policy protects for the entire life of the insured. During younger ages, the cost for the policy may exceed the amount needed but it builds up a cash value over time that will cover the cost in later years. The cost for whole life insurance is usually more that term life and the premiums are payable throughout the lifetime of the policyholder.

The cash value of this life insurance puts forth a savings into the policy. The amount may differ in comparing insurance companies. There are many types of whole life insurance that are available and options to add-on. Depending upon your needs, consulting with a local insurance agency can answer any questions you may have regarding this type of insurance policy.

Variable Life

This type of insurance for life is based on the cash value and face amount which are then specified in units. The premiums are then allocated into investment pools. These include any money market accounts, stocks, mutual funds, bonds, and real estate investments.

There is also the coverage of a minimum death benefit when purchasing traditional variable insurance. Universal insurance does not pay a minimum and the coverage may terminate due to missing the high premium payments that are possible.

When purchasing any type of insurance, check with your local agent to find out all of the details. Buying insurance should be consulted with a professional to determine the right amount of coverage and the details for the type of insurance. There are many factors that are considered when buying insurance and contacting an agent can answer questions you may have.

If you are in the market for life insurance, look no further than Henry Insurance Agency to find the best suitable life insurance to suit your budget.

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Equity Index Universal Life (EIUL) insurance allows a holder to have the flexibility to adjust their premiums as well as benefit from the performance of the financial markets. An EIUL policy is a form of permanent life insurance that ties the cash value of the policy to a financial index. The policy has a fixed interest rate portion as well as the indexed account. Overall, it combines the benefits of a universal life policy with an indexed investment. The S&P 500 Index is used by most companies as the underlying index for the product.

Typically, EIUL policies will have a ceiling as well as a floor established for the returns. In this way, the policy will never lose money. However, if the financial index is doing better than expected, an investor could potentially not see all of the benefits.

With the flexibility that a purchaser gets from an EIUL policy, they also have additional risk. On average a traditional universal life policy will increase 4 to 6% per year. An EIUL can achieve index-linked gains as high as 18%. However, there can also be years when the return is less than 4%. There is, however, not as much risk with a index universal life insurance policy as with investing directly in an index fund.

So how can an insurance company offer customers the benefits of an index fund without passing the entire risk on to them? The answer is that insurance companies are not actually investing the premiums in an equity index. They will invest the premiums in fixed-interest investments and call options.

Potential customers who are shopping for EIULs should consider the following items when they are comparing different policies:

o Cap – What is the maximum annual increase?

o Participation rate – How much does the account grow when the index performance is positive?

o Asset fees – How much is deducted in fees from the index’s performance?

The cap growth rate varies, but it is typically in the 10 to 14% range. The guaranteed minimum gap is in the 3 to 4% range. The participation rate is listed as a percentage. For example, if the underlying index is the S&P 500 and it increases 10% and the participation rate is 65%, then the EIUL would be credited with interest of 6.5%. Participation rates vary from 60% to 135%.

Almost all insurance companies credit interest based on the annual point-to-point method. This means that the equity-index value each year is compared to the value at the beginning of the year. Even though this is the most common method, it is important to confirm which method is being used before a policy is purchased. It is also important to check when minimum EIUL guarantees are credited to the account. Some companies may not do this annually. Instead, they will credit the guarantees every five years or even over the lifetime of the policy.

EIULs offer policy holders many benefits. In addition to the ones listed above, they have the ability to determine how much of the premium goes into the indexed account. However, EIULs can be confusing. Someone considering purchasing this product should consider all of the options associated with the policy and understand how the crediting mechanisms will operate over the life of the product before they make the final decision to go ahead.

For more information from Steven on how to select life insurance policies, including a description of all the various types, visit Best Life Insurance. For a list of solid brand-name life insurers see, Life Insurance Company Ratings.

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Change comes along in life & financial needs as you become a member of the old age group. People start thinking about their retirement plans and how they are going to continue living life without a paycheck. At this stage of life, many insurance companies offer insurance plans with proper terms based on the age of a person. This includes discounts available for senior citizens. For Example, the auto insurance rates decrease as your age increase. However, this does not hold true for life insurance policies as the rates are mostly expected to increase as you grow older. It’s not an easy task to find an affordable life insurance plan for senior citizens.

Life insurance is considered sensible and is considered a required investment for every senior citizen. There are numerous costs and burdens to consider as you get older such as the expenses of a funeral. Affordable life insurance plans can protect your own family from financial burdens at old age.

Some of the known significant major terms which you need to look into annuity for any life insurance plan are:

Annuitant Criteria

Payment Terms

Contract Manager

Flexibility of Annuity

Time Period for Surrender & Charges applicable

Recipient’s information

Safety Provision to extended family members

Paying off final debts and customer debts

Any senior citizen having the basic computer and internet knowledge can find life insurance policies online. There are number of websites and online businesses offering such services. These websites can assist you to during your search and provide you with all the information and benefits accompanied with the insurance plan. Some websites also provide online calculators where in you can calculate the monthly installments or payments and there by you could find out if the insurance plan is affordable or not.

Another important thing to remember while purchasing life insurance for old age group i.e. seniors is to make proper comparison analysis. It’s a key step wherein you need to compare the available multiple insurance plans and pick in the best one fitting your needs and budget. Considering the company financial status and reputation is also important to decide on the risk factor associated. Only after carefully evaluating all this information; you could choose the most suitable insurance policy offering you the best overall coverage for insurance with the lowest affordable payments.

At the same time if you a looking for a policy or life insurance coverage for seniors above 80, there are some things which you need to consider before making a decision. First, you need to check and ensure that the policy you purchase is for entire life covering the age until 100 years. Some policies do provide an option to cover until age 120 years, however these are found to be expensive.

Make sure you do not choose a policy which has terms and benefits decreasing as per age for obvious and listed reasons. Overall, finding a company which offers the best and flexible insurance coverage at an affordable price should be the final selection for any senior citizen.

For more tips and information regarding Affordable Life Insurance
visit Affordable Insurance for your source of life insurance information costs and quotes.

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