Tag: universal

Instant Term Life Insurance Quotes #term #life #insurance,whole #life #insurance,universal #life #insurance,life #insurance,life #insurance

#

Instant Term Life Insurance Quotes Now

The Advantage One Insurance website helps you find the right insurance policies to best suit your needs. If you’re interested in getting a quote first read our brief introduction to the basics of life insurance below, then answer a few questions about yourself in the form in the right hand column, and we’ll instantly generate quotes from over 140 companies to find what’s best for you.

Term Life Insurance

If you’re looking for a basic life insurance package, or no medical exam life insurance. you’re probably after term life insurance. This covers the all the essentials and is also the cheapest type of life insurance.

You pay a fixed rate over a specific amount of time (or term – for example 10 years, 15, 20 year term. or 30 year term) and the insurance company pays out a lump sum if you die within that time. These policies insure your life, but do not provide any additional form of investment.

If you want to increase the certainty of a payout, perhaps a form of permanent life insurance is best for you. These schemes do not expire (provided you keep up with payments) and they also build you a pot of savings. There are two popular types of permanent life insurance:

Whole Life Insurance

You’ll get a guaranteed payout on your death, as long as you continue to make your payments, so these plans are sometimes known as ‘whole of life insurance’. In addition, your payments also build an investment fund (a cash value) which can be withdrawn or borrowed against. This cash value remains tax-deferred until you take advantage of it.

As your beneficiaries are certain to get an insurance payout and you will be creating an investment fund, whole life policies are usually more expensive than term life insurance.

Universal Life Insurance

Universal life insurance is a permanent life insurance with added flexibility. As with whole life, it also invests a part of your premium in a tax-deferred, interest accumulating savings account, but additionally it allows you to use the interest from this to pay your monthly premiums. The policy will cover your whole life too, not just a fixed term.

You can review the allocation of your payments into the death benefit and into the savings pot at any time, and can also move money between the two. All this flexibility means universal life insurance is better for those who are looking for a longer term plan, because your premium will start high and it will take time for the investment to start paying for itself.

We hope this overview of life insurance helps making the right choice even easier.

Term Life Insurance Quotes

Advantage One Insurance helps you find cheap life insurance rates and premiums possible

Our Insurance Advisors will assist you in determining your appropriate health class

And custom tailor an affordable life insurance plan to best suit your personal needs.

We provide exceptional customer service by phone or email. And pride ourselves on having the latest technology available.

Making this process as quick and easy for you as possible. With our online applications you will receive the prompt delivery and begin protecting your loved

ones right away.

Advantage One Insurance

Has been helping families protect their loved ones since 1984. Let us share with you our knowledge and experience from being in the life insurance industry for over 25 years. We pride ourselves on educating our customers to assist them in making the right decision for their unique situation. We write all major life insurance companies in the US, that offer competitive rates, such as Banner Life Insurance, American General, Prudential. Genworth, MetLife, Ohio National and more.

Copyright 2017 Advantage One Insurance, All Rights Reserved
1022 Colonial Drive, Bensalem, PA 19020


Tags : , , , , , ,

6 Ways To Capture The Cash Value In Life Insurance #universal #life #insurance #cash

#

6 Ways To Capture The Cash Value In Life Insurance

If you’ve heard it once, you’ve heard it a million times: Life insurance is a must-have, especially when you have a family that depends on your income. If you die unexpectedly, a life insurance plan will ensure all of your family’s financial needs will be covered – from the monthly mortgage to grocery bills to your child’s college education.

While income replacement is the primary purpose of life insurance, many policyholders tap into cash-value life insurance for other reasons, such as building up a nest egg for retirement. Also known as permanent life insurance. cash-value life insurance policies provide both a death benefit and a cash-value accumulation during the policyholder’s lifetime. See How Cash Value Builds In A Life Insurance Policy to read more about how this works.

With cash-value policies, policyholders can use the cash value in a variety of ways, including as:

  • A tax-sheltered investment;
  • A means to pay policy premiums later in life; and
  • A benefit they can pass on to their heirs .

Don’t Throw Away Your Cash Value

Far too many policyholders make the costly mistake of leaving behind a wad of cash value in their permanent life policies. When the policyholder dies, his or her beneficiaries receive the death benefit, and any remaining cash value goes back to the insurance company. In other words, they’re essentially throwing away that accumulated cash value.

Fortunately, you can take steps to ensure you don’t trash your cash value. Here are six popular strategies to help you make the most of the cash value in your permanent life insurance:

Strategy 1: Boost the Death Benefit

If you have accumulated a sizable cash value over the life of your permanent life insurance policy and do not intend to use these funds yourself, you may choose to leave a larger death benefit to your beneficiaries. How can you pull that off? It’s usually very simple. Just call your life insurance company and say that you’re interested in making a trade: You’d like to increase the death benefit in exchange for the cash value on your policy. Because the life insurance company doesn’t want to lose your business, it will more than likely accept your request.

During the trade, your objective should be to completely drain the cash value and transfer the full amount over to the death benefit or the face value. For example, if you have a universal life insurance policy with a $200,000 death benefit and $100,000 in cash value, your goal is to completely empty the cash value and boost the death benefit to $300,000. That’s $100,000 more that will fall into your heirs’ hands instead of going to the life insurance company.

Strategy 2: Pay for Life Insurance Premiums

Once you have accumulated enough cash value, you can tap into it to cover premium payments. This is known as being “paid up.” The vast majority of life insurance companies are willing to honor this request – all you have to do is ask. Using this tactic, you could save $2,000 or more in premiums each year.

Strategy 3: Take Out a Loan

If you’ve built up a sizable cash value, you may also choose to take out a loan against your policy. Life insurance companies often offer these cash-value loans at interest rates lower than a traditional bank loan. Of course, you’re not obligated to pay back the loan since you’re essentially borrowing your own money. However, it’s important to note that any money you borrow, plus interest, will be deducted from the death benefit when you die.

Strategy 4: Make a Withdrawal

If you’re low on funds or simply want to make a large purchase, you have the option to withdraw some or all of your cash value. Depending on your policy and the size of your cash value, such a withdrawal could chip away at your death benefit or even wipe it out altogether. While some policies are reduced on a dollar-for-dollar basis with each withdrawal, others (such as some traditional whole life policies) actually reduce the death benefit by an amount greater than what you withdraw. Be sure to discuss this tactic with your insurance agent before you make any sudden moves.

In recent years, cash-value life insurance policies have become extremely popular with investors looking to supplement their retirement income. If you have accumulated a healthy cash value, you can use these funds in a variety of ways as an asset in your retirement portfolio. Often, these funds are guaranteed to grow tax-deferred for many years, which could really beef up your nest egg.

Most advisers say policyholders should give their policy at least 10 to 15 years to grow before tapping into cash value for retirement income. Talk to your life insurance agent or financial adviser to discuss whether this tactic is right for your unique situation.

Strategy 6: Full Surrender

Of course, you always have the option to surrender your policy and receive the accrued cash value. Before taking this route, it’s important to consider many factors. First and foremost, you’re relinquishing the death benefit when you surrender a life insurance policy – which means your heirs will receive nothing from the policy when you die. In most cases, you’ll also be charged surrender fees. which could greatly reduce your cash value.

Additionally, the cash you receive through the surrender is subject to income tax. If you have an outstanding loan balance against the policy, you could incur even more taxes. Before taking the leap, consult your insurance adviser about the potential consequences and read Cashing In Your Life Insurance Policy .

Don’t let the cash value you have in a permanent life insurance policy accumulate without deciding how you will use it. And make sure the cash value is drained and redeployed later in life.

An agreement between two parties (known as counterparties) where one stream of future interest payments is exchanged for.

An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories.

A form of short-term borrowing for dealers in government securities.

An aggressively managed portfolio of investments that uses leveraged, long, short and derivative positions with the goal.

Records that outline the financial activities of a business, an individual or any other entity. Financial statements are.


Tags : , , , ,

Universal Life Vs Whole Life – Online Insurance Quotes – Start Now #universal #vs

#

Universal Life Vs Whole Life – Free insurance quotes from the top insurance companies. Compare rates for health, auto, life, home and other types of insurance.



Tags : , , , ,

Variable Life Insurance – 360 Degrees of Financial Literacy #variable #universal #life #insurance #policy


#

Variable Life Insurance

If you want the assurance of a death benefit and level (unchanging) premium payments for the life of your policy, coupled with the possibility of enhancing your death benefit through the use of investments, then variable life insurance may be the answer you’re looking for. You don’t need to worry about monitoring the amount of money in your policy. Your coverage remains in force so long as you pay your premiums. On top of that, you have the chance to build additional benefits in a tax-deferred separate account.

How a variable life insurance policy works

Although other types of whole life and universal life insurance policies offer a (relatively) low return on your cash value account, a policy with a variable account has the potential for greater appreciation. Here’s how a variable life insurance policy works: Each time you make a premium payment, the insurance company deducts its sales and administrative expenses related to your policy. The remainder of the money is credited to a cash value account from which the company deducts its monthly costs for insuring your life. Your cash value is placed into an account separate from the insurance company’s general account.

You can choose from a variety of accounts known as subaccounts, including stock, bond, and money market accounts, into which to invest your cash value. You may generally allocate your money to as many subaccounts as are in the variable life insurance portfolio, and you may change your allocations at any time without charge, up to certain limits.

Because these subaccounts are securities-based, they have the potential to grow faster than the cash value accounts contained in nonvariable insurance policies. But, of course, with this potential for rapid growth comes greater volatility and the possibility of loss. Growth is not guaranteed, and your cash value will fluctuate on a daily basis. You’ll need to pay close attention to the performance of your subaccounts and may wish to consult an investment professional. Also, because the cash value of your variable life insurance policy is regulated as an investment product by the Securities and Exchange Commission, you should receive a prospectus. The prospectus contains detailed information about investment objectives, risks, charges, and expenses, so read it carefully before purchasing a policy.

Risk versus return

Placing your money in any type of securities-based product offers the chance for big gains, but also carries the risk that you may lose your entire principal. The dollar amount of your cash value will fluctuate on a daily basis. Because you control your investments, you must decide how much risk you are able to tolerate before purchasing a variable life insurance policy. But remember, no matter how well or how poorly your subaccounts perform, most variable life contracts are designed so that your level premiums pay for a minimum death benefit equal to the face amount of your policy.

Accessing the money in your policy through loans

As with any type of permanent life insurance, your cash value can be used as collateral to obtain (generally) tax-free loans from your insurance company. If you do take out a loan, that portion of your cash value designated as collateral is transferred to the company’s fixed interest account. This is because the chance exists that the balance of your variable subaccounts may fall below the amount of your loan due to market fluctuations. The company charges interest on loans at a rate a few percentage points higher than the return you receive in the fixed account. Consequently, loans have a permanent effect on the performance of the subaccount investment return. At the time of your death, the company will deduct all outstanding loan balances, plus accumulated interest, from the death benefit paid to your beneficiary.

Surrendering your variable life policy

If you no longer need insurance coverage or if you need to access all of the cash values of the policy, you can surrender (cancel) your policy. The company will return your accumulated cash value, minus outstanding loans and interest and any deferred sales charges, known as the surrender charge. Any gain above the premiums (less any dividends received) that you have paid into the policy will be taxed as ordinary income. Keep in mind, however, that surrendering your policy will end your insurance coverage completely.

Buying a variable life policy

Because variable life insurance policies contain portfolios holding stocks, bonds, and other investment instruments, they are regulated as securities. The insurance professionals who sell variable life must be properly registered with the National Association of Securities Dealers, as well as your state’s insurance division. As a policyowner, you receive periodic statements of your policy death benefit and cash value amounts, as well as (at least) annual reports describing in detail the composition, performance, and other information regarding the subaccounts and subaccount advisors. If you’re uncomfortable with your statements or reports, consult your agent or an investment professional.


Tags : , , , ,