toddkenefsky.com

Ever wondered why one would need life insurance especially as it is seen as an additional expenditure that one might not need. Well, we can surely find somewhere else for that money to go, and the real truth is, we may not really give it much thought until we have a family and begin accruing assets. Life insurance is an insurance policy, just like our auto or homeowner’s insurance, which offers us with added assurance that in any eventuality we will be covered financially. In the case of death, life insurance allows our family to ensure of our end of life needs, that includes burial or cremation at the least, and more depending on how much coverage we purchase.

As we live in the age of credit purchases, we bear a considerable amount of debt through our working years. This includes mortgage and car payments, as well as personal loans, credit cards, and student loans, just to name a few. A majority of companies offer their employees some type of life insurance coverage that can be purchased at a reduced group rate. This can either be a minimal amount or it can be twice your salary, it just depends on your personal situation and which options are available to you. A lot of people prefer to buy life insurance with their personal insurance agent for additional insurance that can be bought for varying amounts of coverage. This enables either the surviving spouse of family members to cover up burial expenses and any other outstanding debts of the decedent. Amounts of coverage vary and chosen based on what the individual would like to provide his or her survivors.

Premiums are based on what type of policy is selected and the age of the person seeking coverage. We are constantly getting mailers in our mailbox for a reduced rate policy if we act now, and frankly speaking, all those terms can be rather confusing. So what is the difference between a whole life policy and a term policy? A term policy is just that; when you are purchasing a definite amount of life insurance for a specified term, generally twenty years. The premium remains the same during this time period and does not build any type of cash value. On the other hand whole life insurance policies, do build cash value, and can be either borrowed against, or cashed in at various stages all through the policyholder’s whole life. Some policies require a physical exam and medical history questionnaire to be completed before coverage can be instated. Usually smokers pay higher premiums as well as people with chronic illnesses that include high blood pressure or diabetes.

Life insurance is a good idea, in particular if you don’t want to leave your family in a helpless situation facing bankruptcy because they can’t make ends meet without you. A number of companies specialize only in life insurance, and local insurance agents that can assist you clarify exactly what you need. Remember the older you get, the more it costs, so if you’re considering a term policy, make sure to buy it when you are young!

Starting a business is a stressful endeavor. There is so much to consider regarding basic operations and so many forms to fill out and papers to file. It is truly a wonder that businesses are able to get off the ground at all. If you are a new business owner, you know that insurance of all types is very much part of the equation in the development and opening of your business. However busy you are with the basic operations of business, you must take time out to implement a strategy to keep your business secure. To be sure, an essential ingredient to this security is taking out “key person” insurance (also known as Business Life Insurance).

Key person term life insurance is taken out on the life of the key executive or the business owner. All firms or small businesses depend on the key people or business owner to manage and keep the business running. These head people are critical for the success of the business and therefore the insurance is actually taken out for the benefit of the business. Businesses take out the policy on the key individuals and so the business also pays for the policy premiums. The monies that are paid to the business upon the death of the key executive or business owner allows that firm or business the time to figure out what direction to take. Those left to run the business can strategize as to how they can save the business. Will they hire a new head executive? Will they restructure operations? Will they need to eventually sell off assets or sell of the business altogether? What debts need to be paid? No matter the case, the monies paid out by the term life insurance buys a business much needed time to make the important decisions that need to be made.

What Value to Place on a Key Person

To be sure, any business operation would feel displaced upon losing its key person — especially when considering how to replace him/her with someone just as competent. In small firms, it is usually the founder who holds responsibility for keeping the books, managing employees, handling key customers and running all basic operations. Losing the key person leaves any company with much uncertainty and instability. There is no easy formula for determining the value of a key employee as each circumstance is unique. The company must consider anticipated profit losses, replacement costs and a compensation-multiple formula. These are typical methods of estimating a loss and subsequent policy value. The best thing to do is to shop for rates from several different life insurance agents as they can help you estimate how much of a policy to buy. You may also get term life insurance quotes online. Most agents agree that buying term life insurance instead of a whole or variable life is better as the premiums will be much lower.

Sole Proprietorships

Keep in mind that one-man operations do not need to take out key person term life insurance. If you are a business with zero employees there is no need to worry as your assets transfer to your family (family employees do not count). If your family depends on the income from your business, it is advisable that you take out personal life insurance.

You do not want to overlook the importance of an investment such as key person term life insurance. It can mean the survival or closure of your business legacy.

As we mentioned in previous articles, it is important that people own a business understand what is business insurance, so they can protect their business in case of any unforeseen event happened causing hardship to the business owner and their family such as business store burned down one day, if you don’t carry insurance, you would endured some hard times after that. You make sure you have insurance for anything of importance, or anything that could prevent me from earning a living. In this article we will discuss the important role of key person life insurance purchased by the company will warrant the long term stability of company’s operation and success.
A key person is one who is recognized as being essential to business success and whose death would result in substantial loss to the company.
The key person may be insured
1.to the value of 1 or 2 years income
2.the amount could represent the financial loss to the business.

Here are some characteristics of key person insurance:
1.the premiums paid are not a tax deductible expense.
2.the premiums are not a taxable benefit to the life insured.
3.dividends are not considered to be taxable income, until they exceed the ACB of the policy.
4.annual Cash Surrender Value increases are not considered as taxable income.
5.the death benefit is non-taxable when received.
6.private corporations would have the share value increased by the corporate owned (key person) insurance. Proceeds (less the return of premium) are added to the Capital Dividend Account.

I hope this information will help. If you need more information of the above subject, please visit my home page at:
http://lifeanddisabitityinsuranceunderwriter.blogspot.com/
http://businessinsurance20.blogspot.com/

http://businessinsurance21.blogspot.com/

All rights reserved. Any reproducing of this article must have all the links intact.

Mortgage protection life insurance is a type of payment protection insurance and one of a number of types of cover related to protecting the family home and income. This form of cover also goes under the name mortgage payment protection insurance or (mppi).

One of the less expensive sorts of life cover, Mortgage Protection Insurance offers Term Assurance, which is the fixed period of time over which the cover lasts. So the insurance cover will last until the mortgage is paid off. You can find two types of term assurance, level term assurance and decreasing term assurance.

As the name suggests, mortgage protection life insurance provides cover for the insured to protect his or her family if death should occur during the life of the mortgage. The insurance will pay a certain amount to the recipient for them to pay the rest of the mortgage off.

We do all of course hope that nothing lethal would happen as we moves through life, unfortunately and sadly this is not always the case, incidents can occur. There can be a resistance to taking out payment protection insurance as it does add an extra burden to the family finances that can already be under strain. As none of us can tell what the future holds it is important to think about the consequences of remaining family members if choosing to be uninsured.

Anyone paying off a mortgage now has to make arrangements to remove the financial burden from the rest of the family. If there is any doubt about a partner’s or your family’s ability to cope financially if this happened, then sufficient mppi cover would be a very wise decision. Life with the loss of a loved one is always going to be extremely difficult to deal with emotionally and adding money problems to this would make such a situation much more of a strain. Even for those who have sufficient money to cover the payments the small sum of payment protection insurance would put everyone’s mind at ease and help immensely at a difficult time.

To confuse things a little more, Mortgage Protection Insurance is also known as decreasing term assurance and differs from level term assurance in that it provides the insured a reducing amount of cover over the term of the policy. The reason the amount decreases is that it is designed to match the outstanding amount of the mortgage. In other words if your mortgage initially starts at say 90% of the value of your property that should be the amount of cover provided at this time. However, after paying your mortgage for 15 years the amount you now owe is much less and so the insurance cover has also decreased to match the reduced amount left to pay.

One possible advantage of mppi compared to level term assurance is cost. Because the risk to the insurer reduces over time as both the amount of any pay out and inflation eat away at the real value of the cover the premiums may be cheaper. Level Term Assurance however offers the same amount of cover constantly, thus the risks to the insurer increase as the person insured ages and the amount of payout remains the same as at the start of the cover. MPPI premiums are also unchanging; once they are determined they remain the same for the duration of the cover.

Applying for mppi over the Internet is now a simple process, with some sites offering payment protection insurance form a range of providers rather than a single insurance company. There are various sites that can provide you with payment protection insurance from a broad range of providers so you can see all the options available to you on one site. If you are looking for a quote for property related cover including MPPI or Level Term Assurance, then go to the Personal Touch Financial website as they use the UK Quotefair system to find the best quotes.

Life insurances are a type of insurance that gives monetary benefits to the beneficiary of the person insured once he is already dead. One of the types of life insurances is the term life insurance which is known as the least expensive form of life insurance. This became a popular choice for many people as it can give the person his needed insurance without paying too much. Thus, the need for protection of an individual is reached while keeping the minimum amount paid for the insurance.

            At the start of the insurance, your term life insurance can be the most inexpensive one that you can get. Once you have paid for your insurance, it will not have accumulated cash value. However, you can have a ready amount useable in times that you may need it. However, as time goes on, the amount may increase. What you must do when selecting a term life insurance is to consider the long term set up and check if it would fit your budget. Also check on different offers that the other companies may have so that you will have a choice on which type of term life insurance would be best for you.

            There are many people that prefer the term life insurance since it can provide their family their safety needs without getting too much of the bulk in their family budget. The saved money from the family budget can now be used in other investments that are needed by the family.

            Since there are many companies that can offer an individual a term life insurance, you will not have a hard time searching for the one that you can avail. A person will simply have to undergo the usual physical check up before the insurance starts and it will continue as long as the insurance premium is paid. You may find different companies that also have different kinds of offers to you. You will have to select one that can meet your needs but you will need to carefully evaluate the terms of the term life insurance so that you can assess if it really is the deal that you need.

            With the term life insurance, you will be protected by the insurance for a certain period of time. Thus, it only covers a number of years and after which, renewal may be done. This kind of life insurance is desired by many individuals primarily because it provides security at a lower rate. But if a person wants to learn how to get more benefits from his insurance, he will have to learn more of the details and terms so that everything will be cleared and it may fall in accordance with the plan. Also, it must be known that the premium may increase for each renewal of the insurance. Thus, there may be a time when the premium of this kind of insurance is no longer the cheapest in the market. Knowing these drawbacks will help you know the things that must be done if you already consider having the insurance for yourself.

Any person would want to make sure that his family is protected from any danger. Thus, there are many insurance companies that are willing to help you out. Each company may have different offers and benefits. One example would be the term life insurance. This kind of insurance is one of the most inexpensive thus giving more people a better chance to keep their families protective without the need of spending too  much for an insurance.

            Even if this claim of term life insurance is generally true, an intelligent buyer would still have to check on how the term life insurance works so that maximum level of benefits can be learned from it. Additionally, you would still need to do your own searches in finding the term life insurance companies that have the best rates that can be offered to you and choose the one which meets the needs of the individual. Thus, with the greater options, an individual can see that there are more things that can be achieved with the life insurance of his choice.

            As the term implies, this kind of insurance only covers a fixed period of time. It is usually in five, ten, twenty, or thirty years period and it does not mount up any cash value. Thus, if you are after the accumulated cash value of insurance, then the term life insurance is not the one that would suit you. However, it may be a big help for the insured individual as he can have his financial needs made available as it is called for.

            With the promised benefits of the term life insurance, you can see that it is one of the most sought after insurance deal that can be found. However, this does not change the need for an individual to check on other offers as it may have better options opened for you. Try checking many companies since it is possible that another company have a better rate to offer. With the many options opened in choosing a term life insurance, you will have a bigger range of options and you can choose which rate is more competitive for you and which settlement is more suitable for your needs. Also, you can choose the term life insurance company that you think is more stable and the one that have the greater possibility o still exist throughout the term.

            The term life insurance is just one type of life insurances that gives a beneficiary a certain amount as the person insured dies. As this is cheaper, the family may allot the excess funds that they have to other forms of insurance or plans that suits their needs. They may choose to spend their money in college plans or other forms of expenses that the person may consider important. With the help of the cheaper form of life insurance, you can have a better option especially if the person only considers having a temporary life insurance. This can help you save more money as you will only have to pay for this type of insurance for a given period.

India is a land of where around 1/6th of the total population of the world stays. After the economy of India underwent a renaissance in the early 1990’s, it totally changed the perception that was prevailing in the minds of people across the world. Due to this many investors from even the remotest corner of the world started to approach this potentially rich economy country. This led to a situation where many insurance companies both national and international appeared on the scene. The thing to notice here is that although at that time the concept of Insurance was not new to the people. But it was only after the economic reformation that created the interest in the people regarding to the concept of life insurance.

Peerless insurance company was one of the pioneers in the sector of Life Insurance. After that Life India Corporation, General Insurance Company and many others companies brought many pleasant changes which ultimately popularised Life insurance. Life insurance is a policy that today many companies offer to the customers. Under this policy the person or the members of the insured person’s family gets compensated in case if any thing happens to the insured person. These policies are an effort to serve the families who looses their bread winner in an unfortunate incident. But that does not mean that the concept of life insurance only applies to the males. No, even women can get themselves the policy of Life insurance.

Life insurance? is a type of insurance under which the life of a person(insured) is insured for a certain amount of money by the insurer after the insured agrees to pay a sum of amount (premium) to the insurer for a specific period.

Insurance as they say is the subject matter of solicitation. This is the main USP of this type of insurance. It is because nobody forces or compels the concerned person to get insured. It totally depends upon the discretion of the person who is interested in getting insured. Today in market there are many types of insurance policies available which are not only attractive but also at the same time require very less formalities to be performed such as the health check ups and other legal formalities.

Thus life insurance is not only beneficial but also has a very vital role to play in the lives of common people.

Imagine a story of a business owner that found out their passion at an early age. This passion was for formal wear. Yes, tuxedos. A young entrepreneur found the desire for business, as well, at the very young age of 17 during a business class in high school. This passion led to many years of working in other people’s retail stores, then managing the stores, then one day the dream came true, the goal was finally met. After 15 years building a reputation of excellence in this field, a financial backer was willing to grant a loan to this still young entrepreneur. Thus, he was able to buy his own Formal Wear retail store.

This business had an employee that brought in a tremendous amount of revenue from doing on site customer sales. This one employee truly had an impact on the business’s bottom line. Without this employee going on site and working his magic with the customers all year long, the business’s sales would suffer greatly. This is when it dawned on the business owner that if he did not protect his “asset” a great loss to his business could occur. The savvy entrepreneur called his insurance agent and started a conversation about buying “Key Person” life insurance. This entrepreneur didn’t work all of his life to get to where he is to leave himself exposed if an unfortunate event caused him to loose such a key revenue generator for his company. He has built his life around his business and has made a smart move to find protection in a Key Person life insurance policy.

When a corporation is formed it separates the business from the actual owners. In a corporation setting there may be a highly valued employee, also know as, a Key Employee, or a Key Person. A business may want to protect themselves from incurring a loss should that Key Employee from that company die.

Key Person Insurance allows a business to buy life insurance on the life of its key employees. This type of insurance will ensure that the business can continue if that person should die. The reason why a business would be allowed to buy a policy on an employee is because the employee/employer relationship creates something called insurable interest.

This type of insurance policy covers the financial loss that the company may suffer at the employee’s death. The policy is set up that the company is both owner and beneficiary of the Key Person insurance policy.

Further, when the company pays a premium for this type of policy these payments are not deductible business expenses. Conversely, the death benefit that is received by the company from this type of policy is income tax free. Overall, as a rule of thumb, life insurance premiums are not deductible if the person who pays the premium has any direct or indirect interest in the policy or its proceeds.

There are more ways to have life insurance provide protection in your life. An insurance agent can help you understand the products offered through insurance companies. They can also give you a better picture of what product is right for you or your business’s needs.

A Life Insurance Policy is a personal property, like a house, car, antiques, old painting or stocks and bonds. You can sell your life insurance policy like you sell your other personal property items. Life insurance may now be viewed as a traditional asset that can be purchased or sold. Sale of Life insurance policy is called as Life insurance settlement, Life settlement or Senior settlement.

Millions of seniors are unaware of the flexible and liquefiable insurance policy, they can sell for cash. The flexibility of a Senior settlement or Life settlement permits policy owners to sell all or a portion of their life insurance policies.

When the life insurance policy owner sells own life insurance policy, he or she transfers all rights and obligations to a new owner. The purchaser of the policy will then become the new owner and the new beneficiary of the 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 settlements present a unique opportunity to the policy holder to extract the maximum possible value from an existing life insurance policy and repurpose those funds for whatever financial needs may exist. Many people choose this option because the cash value of a life settlement generally exceeds the surrender value that would have been paid by the life insurance policy.

Policies are sold for many different personal or business reasons. Below are some of possible reasons for considering a Life Insurance Settlement:

Personal:

1. The original purpose or need for the policy has changed or has diminished totally.

2. The Beneficiary of the policy is deceased.

3. Policy holder is chronically ill, selling current policy provides needed funds to cover financial burdens caused by illness. A Viatical settlement gives the ability to regain needed financial security.

4. Policy has not met the original illustrated values and premiums need to be increased to keep policy in force.

5. If policy holder is over the age of sixty-five, a Life settlement or Senior settlement maximizes the current assets by eliminating premiums and getting required funds that can be used today.

6. Insured person wishes to distribute the funds/ liquid assets as per his or her desire while living.

7. To make funds available for other investments like real-estate, stocks, bonds or to start a new business.

8. Divorce settlement has altered the need for life insurance.

9. Personal financial situation has gone bad and making premium payments is unaffordable.

10. Sale proceeds from Life settlements are needed to pay down loans or outstanding debt.

11. The policy owners current asset mix is weighed too heavily in life insurance.

12. A client wishes to invest in a more appropriate product, such as a lower cost survivor policy, single premium annuity for supplemental income, long term care insurance, long term care insurance or other asset protection tools.

13. A family trust has eliminated the need for personal life coverage.

14. Policy holder need to fund an alternative healthcare that present insurance does not cover.

15. Insured person has left an employer, so he or she needs to sell old group policy.

16. Policy was purchased to ensure the availability of funds to pay off a mortgage and the mortgage has been paid.

17. To take a long awaited vacation or to buy a luxury item that was never affordable.

18. When a policy is in danger of getting lapsed the policy holder can turn it into cash.

19. You can use life settlements to donate to your favorite charity or cause and feel much better about yourself knowing that you have done your part to make the world a brighter place.

Business:

1. Business owned policies those are performing below expectations.

2. Key person insurance policy is no longer required due to retirement or change in business structure.

3. A policy purchased to finance a buy/ sell agreement is no longer needed after the business has been sold.

4. Bankruptcy of business has caused liquidation of assets.

5. Deferred compensation programs in business have changed or not required.

6. If you are a corporation, selling corporate owned life insurance lets you regain back premiums paid on no longer needed policies.

Estate Planning:

1. A single life insurance policy is no longer appropriate- a survivorship policy meets the estate planning requirement and 1035 exchange is avoided.

2. If you are managing an estate, selling your current life insurance policy will help manage changes in estate size, eliminate premiums, and liquidate policies that are no longer needed.

3. A policy needs to be removed from an estate. The three year rule can be avoided by using the life settlement sales proceeds to repurchase a new policy out side the estate.

4. There is a significant reduction in size of estate due to loss of net worth and less insurance coverage is needed to fund the projected estate tax liability.

Charitable Organizations:

1. If charities can no more continue to pay premiums on gifted policies.

2. Proceeds of a Life insurance settlement could result in a larger gift to the charity organization than the policy itself.

Non-Profit Organizations:

1. If you are a non profit organization, selling a gifted life insurance policy provides funds that can be used now and also eliminates premiums.

Once a policy owner has absolutely determined that it no longer makes sense to continue holding a policy, Life insurance settlement or Life settlement may be economically advantageous relative to surrendering or letting the policy lapsed.

This innovative wealth and estate planning tool removes the burden of expensive insurance premium payments in addition to providing the lump sum cash settlement. This allows policy holders to get cash out of their life insurance policy, in an amount in excess of the cash value of policy(if any), while they are still alive. To get the highest life settlements is to improve the quality of life during your retirement years.

Sometimes, we tend to think about our safety and the safety of our family. We think of the future, what will happen to our family if we go? This is the very reason why we get life insurance. We want to insure our life and also our family.

Life Insurance or Life assurance is a contract entered into by two persons – the insurer and the policy owner. In this contract, the insurer promises to pay a certain sum of money to the person insured at the time the contract is built. In exchange of this money is a premium being paid in cases where the insured person dies or becomes critically ill. Most of these insurance premiums are paid to the chosen beneficiary or beneficiaries.

Insurance was started to reduce risk that the traders in China and Babylon in 5000BC – 4500BC was experiencing. This included the cost of members’ funeral expenses and helped the survivors monetarily. The modern insurance started in England in 17th century. The first insurance company in United States of America provided only insurance for fire. Prior to the American Civil War, there were already insurance companies who issued insurances on the lives of slaves; the owners did this. The owners insured the lives of their slaves so that if their slaves die, they can get some premiums.

Life insurance is a good thing because it is just like leaving something for your loved ones in case you pass away. But how can you be sure of the life insurance that you have? A good life insurance should not only replace the loss of your income by the time you die but should also give money to take care of the new expenses that may arise. This includes funeral expenses, probate costs, taxes, the need for childcare and housekeepers, and so on. And your family without any, restriction should use these cash benefits. This means that they (your family) may use the said money for future use. If an insurance company does offer this kind of insurance, then you can say that the services that they offer are the best.

We all know that life insurance is the basis of protection and financial stability after one’s death. Many people get insurance to provide security for the family, protect home mortgages, take care of estate planning needs, and to look at other retirement savings/income vehicles. Whatever reasons you have, you must be sure.

Term life insurance is the least expensive form of life insurance that pays a death benefit for your beneficiary or beneficiaries. Some reasons in considering a term life insurance policy are: 1. some companies offer higher rates on insurance; 2. they use fast and accurate life insurance quotes; 3. most companies offer excellent customer services and; 4. you will be offered affordable quotes.

Whatever life insurance you choose – be it long term or short term, what’s important is that it offers complete package for your beneficiaries. If you are too busy to look for an insurance company on your own so you can choose which insurance company you will enter and which package you will have, you actually have an instant term life insurance quote available everywhere especially on the Internet. They can be found everywhere and you can actually choose from them anytime. It may still not be easy. You may ask how accurate are these quotes for term life insurance? But this is the best way for all the busy people out there who don’t want to take risk in everything.

All you need to do is ask for quotes for term life insurance. Study the given quotes; also study the company’s background – the one which gave you quotes for term life insurance. After doing so, you can actually choose based on what you have read or know.

Just be sure that you make the right decision when it comes to these matters. Choose the right life insurance and you can be sure of your family’s future whatever happens.