Posted: November 23rd, 2011 | Author: admin | Filed under: Life Insurance | Tags: Beneficiaries, Cash Surrender Value, Contract Holder, Death Protection, Insurance Life, Level Premium, Life Insurance Policy, Ordinary Life, Policyholder, Whole Life Insurance | Comments Off
Whole life insurance may be sometimes be branded as permanent or ordinary life insurance. Here is a closer look at this type of life insurance policy.
A definition of whole life insurance:
* It is a life insurance policy that offers death protection for the insured person’s whole lifetime.
* An insurance payout is made to the contract’s beneficiaries when the contract holder dies.
* It includes an investment part which may gather a cash value that the policyholder can borrow against.
* It presents a withdrawal clause which allows the contract holder to terminate her coverage and collect the cash surrender value.
* The policyholder typically pays a level premium which does not rise as the person ages.
* The earnings on the cash value of the policy gathers tax-deferred.
* The insured person may borrow money against the policy’s cash value in the form of a policy loan.
Different types of whole life insurance policy:
* Single premium whole life insurance.
A limited payment whole life insurance policy with one relatively large premium payment due at issue. The policy is fully paid up and no further premiums are required. Due to the single premium payment the policy will have an immediate cash and loan value.
* Indeterminate premium whole life insurance.
An indeterminate premium whole life policy is similar to ordinary whole life plan of insurance except that it provides for adjustable premiums.
* Level premium whole life insurance.
Level premium whole life insurance features premium payments that are level and are required to be paid as long as the insured is living.
* Limited payment whole life insurance.
If you want to pay premiums for a limited time, the limited payment whole life policy gives you lifetime protection but requires only a limited number of premium payments. Limited payment plans can provide for the payment of premiums for a set number of years.
* Non-Participating whole life insurance.
A non-participating whole life policy has a level premium and face amount during your entire life. Since the policy is non-participating it does not pay you any dividends.
* Participating Whole Life Insurance
A participating whole life policy pays dividends. Dividends may be paid out in cash.
* Child whole life insurance.
Parents or grandparents may consider buying child life insurance. Child life insurance premiums are substantially less expensive. Child life insurance guarantees your child life insurance protection for the rest of their lives. However, you may want to be careful about using whole life insurance to support a college tuition.
Wealthy people may sometimes use whole life insurance policies as an estate-planning medium. They may set up an insurance trust to apply the earnings of the policy to their estate taxes when they die. That may save their inheritors the sizeable cost of settling the estate.
That was a closer look at the definition of whole life insurance and the whole life insurance policy. You may still want to find more specific answers about life insurance. I suggest you to look for the answers to your questions either online or feel free to ask your local life insurance company lawyer.
Posted: April 25th, 2011 | Author: admin | Filed under: Life Insurance | Tags: Beneficiaries, Bonus, Cash Surrender Value, Death Benefit, Earnings, Insurance, Insurance Company, Insurance Description, Insurance Life, Life Coverage, Life Insurance Coverage, Life Insurance Policy, Policy Loan, Premiums, Purchasing Policy, Surrender Charge, Term Insurance, Term Life Insurance, Whole Life Insurance | Comments Off
Would your death leave your spouse or family with financial problems? You could consider purchasing life insurance coverage that will pay out a certain amount in the event of your death to help cover their needs. Here is some general information about whole life insurance.
A Whole Life Insurance Description:
This is a life insurance policy that can cover you for your entire life and not just for a specific period such as term life insurance. Your death benefit and premium will generally remain the same.
A whole life policy also builds cash value. This is a return on the portion of your premiums that the insurance company invests. Your cash value is tax-deferred until you withdraw it. You may also borrow against it.
Who Needs Whole Life Insurance?
If you are in need of life insurance the tax benefits and cash value of a whole life policy can be a bonus. A whole life policy will earn you tax-deferred interest near the market rate and will pay your beneficiaries a death benefit.
You may also consider purchasing a whole life policy if you require more tax-deferred savings than you have available. You can also get the life coverage you need if you can afford to pay the high premiums.
The Cash Value On Whole Life Insurance.
The cash value is what you could get if you cashed in your policy. If you decide to surrender your policy, your cash surrender value can be paid in paid-up insurance or cash.
The earnings on the cash value of a whole life insurance policy can be borrowed against in the form of a policy loan. The death benefit is reduced by the amount of the loan if the loan is not repaid.
Cashing Out A Whole Life Insurance Policy.
Cashing out a whole life insurance policy may be difficult owing to the surrender charge. The surrender charge is a charge which insurers remove out of the cash savings amount you have developed. This charge can be as high as 10% of the payoff value of the life insurance policy. It may stay in force for up to 20 years after you purchased the policy.
Borrowing Against Whole Life Insurance.
You may borrow against the guaranteed cash value of a whole life insurance policy in the form of a policy loan as long as the policy is valid. Just remember that borrowed amounts diminish the death benefit and cash surrender value of your policy.
The Best Whole Life Insurance Benefit.
There may be many different opinions regarding the best whole life insurance benefit. This can also be influenced by personal needs and circumstances.
Here follows 3 possible whole life insurance benefits:
Premiums are normally level and payable for life.
A quantity of the money you pay into your whole life policy collect as a guaranteed cash value.
A part of your life insurance premium may be returned to you as a dividend if real life insurance costs turn out to be less than was believed in setting the premiums.
That was some general information about whole life insurance.
Posted: April 15th, 2011 | Author: admin | Filed under: Life Insurance | Tags: Beneficiary, Cash Settlement, Cash Surrender Value, Chronic Illness, Contractual Rights, Death Benefit, Dependents, Elderly Americans, Financial Solution, Insurance Carrier, Insurance Settlement, Life Insurance Policies, Life Insurance Policy, Life Settlement, Lump Sum Cash, Premiums, Purchaser, Seniors, Third Party, Viatical Settlement | Comments Off
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.