March 30th, 2007
Whole life insurance is a type of life insurance policy that provides coverage to the insured individual for their entire life. That means that if you buy a Whole life policy today and maintain the premium payments in good faith, that you’ll have coverage until the time of your death or until your 100th birthday, whichever comes first. If you are fortunate enough to live to be 100 years old, your insurance company will then issue you a check for the face value of the policy. The face value is the amount of money that the policy would have paid to your beneficiary if you had died, but instead, because you lived to achieve this ripe old age, they would issue it to you instead.
Whole life insurance isn’t as popular today as it was several years ago. The reason for this is because it’s more expensive than the more popular “Term Life” policies and also because a portion of what you pay into a Whole life policy goes into a savings account for you. This wouldn’t seem like such a bad thing, however, in most cases you can find investment plans that will pay out better than one of these savings plans. The best thing that you could do is to get some sound financial advice from a financial planner. They can explain different methods of investing, such as stocks, bonds, mutual funds and more.
I’m not saying that Whole life insurance is necessarily a bad thing. With a Whole life policy, at least you’re doing “something” to provide protection for your family. The only point that I’m trying to get across is that there may be better options out there for you. You could buy Term life instead and invest in low-medium risk mutual funds.
The choice is up to you. You could always start out with a less expensive Term life policy and graduate it into a Whole life policy a few years down the road, if you wish. Talk to both an insurance agent and a financial planner before you decide if Whole life insurance is right for you.
Popularity: 66% [?]
Tags: amount of money, beneficiary, insurance, insurance agent, insurance company, investment plans, life insurance policy, mutual funds, sound financial advice, term life policies, term life policy, whole life insurance
Posted in Life Annuities | 2 Comments »
March 29th, 2007
If you run a small business you know that if something happens to you and you cannot work, you are history. Temporary Disability Insurance for your small business is a must. Often you do not even have a choice. You must buy it and if you do not then chances are the bank will not give you a loan to start your small business, reject your business plan or decide not to give you the money you need to expand.
Indeed, banks have check box forms they fill out to CYA themselves and prevent loan defaults. Disability Insurance and Loss of Income Insurance is a box on those forms. Even still, if you do not borrow money from a bank and use personal savings, you could lose your entire business or savings if you are injured or hurt and cannot work.
What if you need major medical treatment and it drains your bank account and you are out of work for a month? What about six months? Can your business survive without you? Chances are that it couldn’t, as much as we might wish to think otherwise.
It is for all these reasons that when I found myself needing disability insurance, I consulted an expert on insurance to walk me through it all and explain to me what was covered and what is not covered. It pays to ask questions and listen to the experts.
I certainly hope this article is of interest and that is has propelled thought. The goal is simple; to help you in your quest to be the best in 2007. I thank you for reading my many articles on diverse subjects, which interest you.
Popularity: 44% [?]
Tags: banks, business plan, loan defaults, loss of income insurance, medical treatment, money, personal savings, small business, temporary disability insurance
Posted in Disability | No Comments »
March 28th, 2007
As one of life’s basic financial needs, insurance can cover a range of different aspects. And while some methods of insurance, including home insurance and life insurance, are now fairly common aspects of a consumer’s financial education, it’s important for modern consumers to be aware of the range of insurance options available to them. Payment Protection Insurance (PPI), for example, can be an excellent way to cover your debt repayments in the event of an accident or sickness that may prevent you from working, or in the case of sudden unemployment.
For instance, many consumers opt for building and contents insurance as a form of home insurance. After all, your home is one of your most important assets and knowing that your home will be taken care of in the event of an accident or a crime can often be paramount to your mental well-being. Many financial providers will allow you to take out building and contents insurance as separate or combined cover, offering you protection against things such as fire, theft or flood damage.
However, in addition to building and contents insurance, taking out payment protection insurance can also protect your home and remortgage payments. For example, if you have a car accident, or are struck suddenly by an illness that leaves you unable to work for several months, payment protection insurance can help you keep paying your building and contents insurance during the period of your absence from employment.
Moreover, payment protection insurance can leave you able to pay your mortgage or remortgage during any period of work absence that you may incur. Remortgage payment protection, for example, will often cover disability and unemployment for a designated number of days – which can be especially important if you’ve taken out a bad credit remortgage and are keen to rectify your credit rating.
PPI can be found in a range of forms; for example, accident, sickness and unemployment cover can cover specific types of accidents and illnesses. Some consumers may also find it useful to take into account income protection, as this will help you maintain a monthly income in the event of an accident or illness, rather than simply help you cover your existing personal debt repayments.
If you’re looking for more information on building and contents insurance or any other type of payment protection insurance, a variety of consumer financial institutions will be able to help, including the Financial Services Authority (FSA) and the Association of British Insurers. What is certain, however, is that investing in additional payment protection costs when you take out a mortgage, remortgage or contents insurance plan, can make a crucial difference to your long-term financial life.
Popularity: 63% [?]
Tags: accident sickness and unemployment, accident sickness and unemployment cover, accidents, bad credit remortgage, building and contents, building and contents insurance, car accident, credit rating, debt repayments, financial education, financial providers, fire theft, flood damage, home insurance, illnesses, insurance options, life insurance, payment protection insurance
Posted in Disability | No Comments »
March 27th, 2007
Short term health insurance or temporary health insurance is a good way to alleviate the risk of an unforeseen and unfortunate event while in the midst of a transitional period. All of that to say that it is extremely important to make sure that you keep continuous coverage and do not let your health insurance coverage lapse.
Short term health insurance is very affordable as most plans are comprehensive major medical plans but without all of the extra benefits like copays for prescriptions and copays for doctors visits that can be quite pricey. Short term health insurance is a great way for students that need cheap health insurance coverage to obtain coverage in an inexpensive and easy manner. (Note, that temporary health insurance should not be a permanent substitute for a real health insurance plan but is most suitable when the student has a job offer with health benefits soon on the horizon or is getting married and will then have health benefits or some other similar scenario).
Many temporary health insurance plans can be compared, purchased, and then be made effective all online and within a couple of days or even hours. Medical exams are almost never required for short term health insurance (or for most individual health insurance plans for that matter unless maybe you are approaching your 60s and have not had a physical for 10 or more years). Almost all insurance companies offer online quoting for their individual and short term health insurance plans.
Although short term coverage is very cheap you will still want to shop around and find a well known and reputable insurance company. You can request health insurance quotes directly at the insurance companys website but it is usually easier to request quotes from an independent website as they will show you health insurance quotes from 3 or more insurance companies that offer coverage in your area side by side for an easy comparison.
Popularity: 52% [?]
Tags: cheap health insurance, health insurance coverage, health insurance plan, individual health insurance, individual health insurance plans, insurance companys, medical exams, medical plans, real health, reputable insurance company, short term health insurance, short term health insurance plans, temporary health insurance, term health insurance
Posted in Disability, Health | No Comments »
March 26th, 2007
The need for some clients to protect assets from Medicaid Spend down is obvious. It can be because of the well spouses needs, a handicap child or a myriad of good solid reasons. This is where the annuity salesperson come charging to the rescue.
Most agents know that certain types of annuities can avoid spend down and can provide protection for the assets in the annuity. These annuities have specific language to make them fully qualified under Medicaid rules. Most annuity contracts DO NOT contain the language to qualify for the Medicaid rules.
The monthly payout must be for the life expectancy of the annuitant. The annuity cannot have any free look in the contract and the value of the annuity is agreed by all parties to be zero. The only value of the annuity is the monthly income. These features are actually part of the contract and are allowed by 29 states in the US. It is sometime referred to as the name on the check rule.
The personal liability comes into play when an agent does not fully understand the rules nor the process that must be adhered to in order to qualify the funds. An agent will sell just an annuity explaining to the client the funds are safe from spend down. You have to ask yourself why would this happen? The reason is obvious, large commissions.
Commissions for the Medicaid spend down annuity are often very low while the commissions for a standard annuity are usually much higher. The agent will sell the concept of the annuity but provide a product that will never qualify for Medicaid spend down. This is where the liability issue comes to the surface. Of course by then the agent could be on to a different career or the obvious answer is I didnt say that.
At the time of need the client could be faced with additional stress and maximum exposure to exposed assets. This creates a very unfair situation for the client and the agent is almost never left holding the bag. Then of course there is this sales pitch and explanation.
Recently I ran into a situation where an annuity agent had sold a 17 year surrender contact to a widow aged 77. She was told that the annuity would protect all her assets and she could leave those assets to her children. In a couple of years she became ill and was in need of nursing home car and the annuity was the primary asset. Of course as a single person there was no way to protect the funds in the annuity and with the children, I called the agent. His reply was amazing, he said he knew the annuity was not going to be Medicaid qualified but it was not his problem, it was his errors and omissions problem. He knowingly sold the product for the monstrous commission and had calculated the insurance company would make things right.
The client had to eventually cash in the huge surrender penalty annuity and suffer the losses. She was ill and not up to a fight with anyone and just wanted to be left alone.
The shame of this story is as annuity salespeople we are all considered guilty by the actions of a few. So here is my advice.
Always work with an attorney who specializes in Medicaid planning
Never call yourself a Medicaid specialist
Never give legal advice
If you sell a Medicaid qualified annuity make certain the contract will work in your state, ask the home office, they are there to help
And finally, be honest and open. Make certain the prospect understands exactly how a Medicaid Qualified Annuity works and how the benefits directly affect them and their personal situation.
Popularity: 100% [?]
Tags: annuities, annuity contracts, assets, commissions, liability issue, medicaid, medicaid rules, personal liability, sales pitch, salesperson
Posted in Agents Marketers | No Comments »
