Guaranteed Issue Life Insurance
By [http://ezinearticles.com/?expert=Ivon_T._Hughes]Ivon T. Hughes
Helping the "uninsurable" secure coverage is challenging. Clients who have health problems or have been denied coverage in the past still need life insurance. One option is guaranteed issue life insurance. Given the high risk nature of coverage, few insurers offer it. However with a little preparation and extra effort, you can find the right policy.
Life Insurance Medical Questions
High risk clients need to answer questions about their medical history so that you get the information you need to find the right coverage. Candidates for guaranteed life policies often:
- have permanent health problems
- need coverage to leave a legacy or to provide for final expenses so that their loved ones are left with no debt.
Guaranteed Issue Life
Guaranteed issue policies do not require a physical and preexisting medical conditions usually are not a factor in the application process. Often such applications require only general information, such as name, address, ID number, gender and beneficiary.
The death benefit generally pays the beneficiary full face value if death occurs after the waiting period. Policies typically specify a period of one to 3 years during which time the policyholder will not be covered for the full amount. If death occurs during this time frame, the beneficiary would likely only receive a return of all premiums paid with interest. However, if the insured has a fatal accident, most companies will pay the beneficiary the full amount.
There are pluses and minuses that come with guaranteed issue policies. Some advantages include:
1. no medical evaluations
2. a level death benefit that is guaranteed as long as premiums are paid
3. premiums will not increase
4. the policy proceeds are usually free of estate tax
5. policies usually avoid probate if a beneficiary is named
On the other hand, you and your clients may have concerns about the following:
- guaranteed issue policies can be costly
- waiting periods can be lengthy - up to 3 years
- if the client is willing to provide some medical information, he/she may be able to purchase a different type of coverage that might be cheaper.
If the disadvantages outweigh the advantages for a particular client, an easy issue policy is a better choice. Such policies offer the full face value starting from the date of issue. These policies may work best for those who are under the age 40, need full benefits immediately have been without disease for the last five to ten years, or have a minor illness.
The "uninsurable" face many difficult planning decisions, but everyone needs the protection coverage that life insurance offers. With guaranteed issue policies, approval may just be simple steps away.
Ivon T. Hughes president of The Hughes Trustco Group has been in business for 30 years. Canadians and Americans - Get a FREE Quote TODAY!
Tel: (514) 842-9001 Email: [mailto:info@trustco.ca]info@trustco.ca Web: http://www.hughestrustco.com
Article Source: http://EzineArticles.com/?expert=Ivon_T._Hughes http://EzineArticles.com/?Guaranteed-Issue-Life-Insurance&id=6743
Tuesday, March 24, 2009
How Does Premium Finance Life Insurance Work?
How Does Premium Finance Life Insurance Work?
By [http://ezinearticles.com/?expert=Michael_Murphy]Michael Murphy
Premium Finance Life Insurance is not something that you hear about every day, mostly because so few people are eligible to apply for it. Those who can qualify for this type of life insurance policy funding stand to gain a great deal of money if all of the variables associated with the transaction remain in their favor. In fact as much as 15% of the face value can be seen in a return only two short years later-with no investment! With millions and millions of dollars involved in the transaction, you can calculate just how lucrative a 15% return would be.
This is how Premium Finance Life Insurance Works. You must first have an insurable net worth or asset value, called an insurable interest, of more than two million dollars. These policies have been written for up to $100 million. You apply through a premium finance broker for the life insurance policy and the financing at the same time. If the lender approves your Premium Finance Life Insurance loan, you will be given the premium money for the policy for two to five years or "life", depending on what your requirements are. Obviously the insurance policy will be quite substantial, as there are a great deal of assets being covered. Therefore the premium payments are also going to be quite significant. This is why a low interest loan to cover the cost of these premiums is so appealing. At the end of the two year period you will then have the legal option of selling this life insurance policy into a secondary market for 3% to 15% of the face value, less the paid-to-date premiums loan and interest charged by the lender, and settlement fees.
This type of arrangement definitely sounds too good to be true, but it can be just that easy to make a huge return on no investment if you play your cards right. First you have to realize that not just anyone can apply for Premium Finance Life Insurance. You typically have to be at least 69 years old but no older than 85 to even apply. If you meet these requirements and are approved for both the loan and the policy, you must live through the two year repayment period in order to have an opportunity to sell the policy to the secondary market. If you die prior to the two year mark, your beneficiaries will receive the face value of the policy less the paid-to-date premiums and interest charged by the lender. An example : Assume a five million dollar policy with annual premiums of $350,000 and a 10% interest rate. The beneficiaries receive $4,230,000 if the senior passes at the two year mark.
Obviously, life insurance companies are aware of what Premium Financing is all about and have added that anyone looking to apply for it needs be in decent health. They may ask for a detailed estate plan. Insurance companies are also unhappy when life insurance policies are sold to secondary markets because then those policies become much less likely to lapse. Insurance companies count on the lapsing of insurance policies to keep their earnings high. This is because if the policy holder allows his or her policy to lapse, the insurance company gets to keep all of the premium money that had been paid minus any small accrual of benefits that have cash value. When all high profile life insurance policies are guaranteed eventual payment, it certainly puts a strain on insurance executives' pockets.
It is anticipated that for these reasons insurance companies may soon find ways to make premium financing less available and attractive. Already, during the underwriting process they will ask the senior if anyone has talked to them about selling their policy in two years, and if the answer is "yes," the company will not underwrite the policy. But for now the buzz of possible investment dollars is being heard loud and clear on Wall Street, and interest in the secondary market purchase and sale of life insurance policies is growing rapidly. Lenders like Goldman Sachs find this an attractive area, and investors like Warren Buffet see the investment of paying premium money for these life insurance policies as a very small sacrifice for a return of about 12 to14%, the industry average.
Michael Murphy is a Chartered Financial Analyst and premium finance consultant. He recommends http://www.oxfordfinancialgroup.net (not an affiliate link) for a licensed premium finance broker
Article Source: http://EzineArticles.com/?expert=Michael_Murphy http://EzineArticles.com/?How-Does-Premium-Finance-Life-Insurance-Work?&id=1084504
By [http://ezinearticles.com/?expert=Michael_Murphy]Michael Murphy
Premium Finance Life Insurance is not something that you hear about every day, mostly because so few people are eligible to apply for it. Those who can qualify for this type of life insurance policy funding stand to gain a great deal of money if all of the variables associated with the transaction remain in their favor. In fact as much as 15% of the face value can be seen in a return only two short years later-with no investment! With millions and millions of dollars involved in the transaction, you can calculate just how lucrative a 15% return would be.
This is how Premium Finance Life Insurance Works. You must first have an insurable net worth or asset value, called an insurable interest, of more than two million dollars. These policies have been written for up to $100 million. You apply through a premium finance broker for the life insurance policy and the financing at the same time. If the lender approves your Premium Finance Life Insurance loan, you will be given the premium money for the policy for two to five years or "life", depending on what your requirements are. Obviously the insurance policy will be quite substantial, as there are a great deal of assets being covered. Therefore the premium payments are also going to be quite significant. This is why a low interest loan to cover the cost of these premiums is so appealing. At the end of the two year period you will then have the legal option of selling this life insurance policy into a secondary market for 3% to 15% of the face value, less the paid-to-date premiums loan and interest charged by the lender, and settlement fees.
This type of arrangement definitely sounds too good to be true, but it can be just that easy to make a huge return on no investment if you play your cards right. First you have to realize that not just anyone can apply for Premium Finance Life Insurance. You typically have to be at least 69 years old but no older than 85 to even apply. If you meet these requirements and are approved for both the loan and the policy, you must live through the two year repayment period in order to have an opportunity to sell the policy to the secondary market. If you die prior to the two year mark, your beneficiaries will receive the face value of the policy less the paid-to-date premiums and interest charged by the lender. An example : Assume a five million dollar policy with annual premiums of $350,000 and a 10% interest rate. The beneficiaries receive $4,230,000 if the senior passes at the two year mark.
Obviously, life insurance companies are aware of what Premium Financing is all about and have added that anyone looking to apply for it needs be in decent health. They may ask for a detailed estate plan. Insurance companies are also unhappy when life insurance policies are sold to secondary markets because then those policies become much less likely to lapse. Insurance companies count on the lapsing of insurance policies to keep their earnings high. This is because if the policy holder allows his or her policy to lapse, the insurance company gets to keep all of the premium money that had been paid minus any small accrual of benefits that have cash value. When all high profile life insurance policies are guaranteed eventual payment, it certainly puts a strain on insurance executives' pockets.
It is anticipated that for these reasons insurance companies may soon find ways to make premium financing less available and attractive. Already, during the underwriting process they will ask the senior if anyone has talked to them about selling their policy in two years, and if the answer is "yes," the company will not underwrite the policy. But for now the buzz of possible investment dollars is being heard loud and clear on Wall Street, and interest in the secondary market purchase and sale of life insurance policies is growing rapidly. Lenders like Goldman Sachs find this an attractive area, and investors like Warren Buffet see the investment of paying premium money for these life insurance policies as a very small sacrifice for a return of about 12 to14%, the industry average.
Michael Murphy is a Chartered Financial Analyst and premium finance consultant. He recommends http://www.oxfordfinancialgroup.net (not an affiliate link) for a licensed premium finance broker
Article Source: http://EzineArticles.com/?expert=Michael_Murphy http://EzineArticles.com/?How-Does-Premium-Finance-Life-Insurance-Work?&id=1084504
Limit Your Liability to Protect Your Assets
Limit Your Liability to Protect Your Assets
By [http://ezinearticles.com/?expert=J._Stephen_Pope]J. Stephen Pope
If your business runs into serious difficulty, will
it bring you down too? For example, what if one of
your employees got involved in a serious car accident
while working for you? Will the resulting lawsuit
bankrupt you personally?
Here are just a few ways of protecting yourself
against catastrophic losses and lawsuits.
1. Obtain Adequate Insurance Coverage
If someone slips on the sidewalk of your home and
injures himself, he could sue you for damages. Your
tenant`s or homeowner`s policy may cover you for
liability in such an event.
However, what if it is your customer who falls on his
way to visiting your home-based business? You will
need an extra rider on your house insurance to cover
such incidental business use. The extra charge for
this additional coverage is well worth it.
If you use a car for business use, insure it for such.
Some people think that they are being clever writing
off automobile expenses for income tax purposes but
at the same time not informing the insurance company
that the car is being used for business.
This is false economy. If you ever get into an
accident, police and insurance investigators will
certainly find out that you used the vehicle for
business purposes. If you`re not paying for
business coverage, why would the insurance company
cover your claim?
As well, what do you think an income tax auditor would
think of your claimed business expenses on the vehicle
when your insurance policy indicates personal coverage
only? Avoid this additional exposure to tax liability.
Be sure to obtain required workers` compensation
coverage. Some have been held responsible for all the
medical and other expenses of an injured worker, as well
as fines for non-compliance to the law. These costs
can be quite substantial and even bankrupt you.
Consider obtaining product liability insurance. This
applies not just for any products you manufacture but
also for products you sell that are made by others.
2. Incorporate Your Business
Insurance may give you some protection against loss.
However, you may suffer business losses and lawsuits
that may not be covered by your insurance fully. What
then?
An extra level of protection can be obtained by forming
your own corporation. Even though incorporating
yourself will result in extra paperwork and costs, it
could be the best insurance you ever bought.
This is because the corporation is a seperate legal
entity or person. Even though you may own the
corporation, if the corporation operates the business,
it is the corporation that will be sued or suffer loss.
If, for example, the corporation had severe business
losses resulting in debts that could not be repaid,
the corporation would be insolvent. You, as a
shareholder, would lose your investment in the company
but would generally not be responsible for any of its
debts. Thus, you would not have to sell your home or
other personal assets to cover the corporation`s
liabilities.
On the other hand, there are cases where directors of
a corporation can be held responsible for liabilities
if they didn`t act responsibly. You can`t hide behind
a corporation, commit criminal acts and expect to
escape accountability.
For more information about incorporation, visit: http://www.yenommarketinginc.com/incorporation.html
3. Protect Yourself With Legal Agreements
Properly drafted written agreements can protect you in
many ways. First of all, they can sometimes prevent
misunderstandings that can lead to legal problems.
Secondly, they may limit your exposure to lawsuits and
losses.
Contracts can limit your exposure to liability by
including provisions restricting the scope of your work
and responsibility, having disputes handled by arbitration
rather than through the Courts, and specifying that the
maximum damages payable shall not exceed the amount of
the contract.
A special area to watch out for is the Internet. There
are many laws that impact on websites including
matters affecting children, privacy, earnings claims,
and unsolicited e-mail ("spam"). Certain agreements
and notices on your website may help to protect you.
For more information about Internet law, visit: http://www.yenommarketinginc.com/internet-law.html
Protect yourself from catastrophic losses and lawsuits.
Take steps today to protect your assets by limiting
your exposure to liability.
J. Stephen Pope, President of Pope Consulting Inc., http://www.popeconsultinginc.com/ has been helping
clients to earn maximum business profits for over
twenty-five years
For valuable Work at Home Small Business Ideas,
visit: http://www.yenommarketinginc.com/
Article Source: http://EzineArticles.com/?expert=J._Stephen_Pope http://EzineArticles.com/?Limit-Your-Liability-to-Protect-Your-Assets&id=145
By [http://ezinearticles.com/?expert=J._Stephen_Pope]J. Stephen Pope
If your business runs into serious difficulty, will
it bring you down too? For example, what if one of
your employees got involved in a serious car accident
while working for you? Will the resulting lawsuit
bankrupt you personally?
Here are just a few ways of protecting yourself
against catastrophic losses and lawsuits.
1. Obtain Adequate Insurance Coverage
If someone slips on the sidewalk of your home and
injures himself, he could sue you for damages. Your
tenant`s or homeowner`s policy may cover you for
liability in such an event.
However, what if it is your customer who falls on his
way to visiting your home-based business? You will
need an extra rider on your house insurance to cover
such incidental business use. The extra charge for
this additional coverage is well worth it.
If you use a car for business use, insure it for such.
Some people think that they are being clever writing
off automobile expenses for income tax purposes but
at the same time not informing the insurance company
that the car is being used for business.
This is false economy. If you ever get into an
accident, police and insurance investigators will
certainly find out that you used the vehicle for
business purposes. If you`re not paying for
business coverage, why would the insurance company
cover your claim?
As well, what do you think an income tax auditor would
think of your claimed business expenses on the vehicle
when your insurance policy indicates personal coverage
only? Avoid this additional exposure to tax liability.
Be sure to obtain required workers` compensation
coverage. Some have been held responsible for all the
medical and other expenses of an injured worker, as well
as fines for non-compliance to the law. These costs
can be quite substantial and even bankrupt you.
Consider obtaining product liability insurance. This
applies not just for any products you manufacture but
also for products you sell that are made by others.
2. Incorporate Your Business
Insurance may give you some protection against loss.
However, you may suffer business losses and lawsuits
that may not be covered by your insurance fully. What
then?
An extra level of protection can be obtained by forming
your own corporation. Even though incorporating
yourself will result in extra paperwork and costs, it
could be the best insurance you ever bought.
This is because the corporation is a seperate legal
entity or person. Even though you may own the
corporation, if the corporation operates the business,
it is the corporation that will be sued or suffer loss.
If, for example, the corporation had severe business
losses resulting in debts that could not be repaid,
the corporation would be insolvent. You, as a
shareholder, would lose your investment in the company
but would generally not be responsible for any of its
debts. Thus, you would not have to sell your home or
other personal assets to cover the corporation`s
liabilities.
On the other hand, there are cases where directors of
a corporation can be held responsible for liabilities
if they didn`t act responsibly. You can`t hide behind
a corporation, commit criminal acts and expect to
escape accountability.
For more information about incorporation, visit: http://www.yenommarketinginc.com/incorporation.html
3. Protect Yourself With Legal Agreements
Properly drafted written agreements can protect you in
many ways. First of all, they can sometimes prevent
misunderstandings that can lead to legal problems.
Secondly, they may limit your exposure to lawsuits and
losses.
Contracts can limit your exposure to liability by
including provisions restricting the scope of your work
and responsibility, having disputes handled by arbitration
rather than through the Courts, and specifying that the
maximum damages payable shall not exceed the amount of
the contract.
A special area to watch out for is the Internet. There
are many laws that impact on websites including
matters affecting children, privacy, earnings claims,
and unsolicited e-mail ("spam"). Certain agreements
and notices on your website may help to protect you.
For more information about Internet law, visit: http://www.yenommarketinginc.com/internet-law.html
Protect yourself from catastrophic losses and lawsuits.
Take steps today to protect your assets by limiting
your exposure to liability.
J. Stephen Pope, President of Pope Consulting Inc., http://www.popeconsultinginc.com/ has been helping
clients to earn maximum business profits for over
twenty-five years
For valuable Work at Home Small Business Ideas,
visit: http://www.yenommarketinginc.com/
Article Source: http://EzineArticles.com/?expert=J._Stephen_Pope http://EzineArticles.com/?Limit-Your-Liability-to-Protect-Your-Assets&id=145
A Easy Way To Compare Term Life Insurance Quote
A Easy Way To Compare Term Life Insurance Quote
By [http://ezinearticles.com/?expert=Rolf_Rasmusson]Rolf Rasmusson
Compare term life insurance quote
The best way to compare term life insurance quote is to have several companies quote their premiums to you. Today you can go online and utilize free services that make it their business to compile databases with all the various information from hundreds of companies. The rating service gets a small fee from all the companies, therefore they aren't concerned with which one you buy. Now you truly compare life insurance quote.
Frankly this method is truly best for you because you've removed individuals from the process and any prejudges. The services are strictly mechanical without opinions or biases. Apply a little thought to what you're trying to accomplish. Put that into the quoting process and you'll likely find what you're looking for at a decent price.
We've seen major differences on a particular coverage from one company to another. The rates these companies charge are based on their loss experience and cost of doing business. The more volume they do the lower their cost per policy seems to be.
You go online select off a checklist what you want and within seconds you'll have a lot of information with which you can make a good decision. Rather than calling around through the yellow pages just put your mouse to work by going online. With your favorite drink in hand relaxing in your comfortable chair you'll get done in minutes what used to take hours to get accomplished.
Buying adequate amounts of coverage is a lot easier today than ever before and certainly more easier that’s for sure. It's great to be able to compare term life insurance quote.
Learn more about insurance and [http://www.insurance-stuff-4u.com]free quotes
Article Source: http://EzineArticles.com/?expert=Rolf_Rasmusson http://EzineArticles.com/?A-Easy-Way-To-Compare-Term-Life-Insurance-Quote&id=34093
By [http://ezinearticles.com/?expert=Rolf_Rasmusson]Rolf Rasmusson
Compare term life insurance quote
The best way to compare term life insurance quote is to have several companies quote their premiums to you. Today you can go online and utilize free services that make it their business to compile databases with all the various information from hundreds of companies. The rating service gets a small fee from all the companies, therefore they aren't concerned with which one you buy. Now you truly compare life insurance quote.
Frankly this method is truly best for you because you've removed individuals from the process and any prejudges. The services are strictly mechanical without opinions or biases. Apply a little thought to what you're trying to accomplish. Put that into the quoting process and you'll likely find what you're looking for at a decent price.
We've seen major differences on a particular coverage from one company to another. The rates these companies charge are based on their loss experience and cost of doing business. The more volume they do the lower their cost per policy seems to be.
You go online select off a checklist what you want and within seconds you'll have a lot of information with which you can make a good decision. Rather than calling around through the yellow pages just put your mouse to work by going online. With your favorite drink in hand relaxing in your comfortable chair you'll get done in minutes what used to take hours to get accomplished.
Buying adequate amounts of coverage is a lot easier today than ever before and certainly more easier that’s for sure. It's great to be able to compare term life insurance quote.
Learn more about insurance and [http://www.insurance-stuff-4u.com]free quotes
Article Source: http://EzineArticles.com/?expert=Rolf_Rasmusson http://EzineArticles.com/?A-Easy-Way-To-Compare-Term-Life-Insurance-Quote&id=34093
A Life Insurance Quote Became Reality
A Life Insurance Quote Became Reality
By [http://ezinearticles.com/?expert=Rolf_Rasmusson]Rolf Rasmusson
Life insurance quote
Thank goodness John took his life insurance quote seriously. It didn't prevent our daughters from wishing he were still here but thanks to his foresight they and I still have the things he worked for because he turned that life insurance quote into a policy before his untimely death.
Byron, my wonderful husband died at age 33 leaving myself and our two daughters behind. Six months prior he felt a tingling in his arms and it was discovered that Bryon had a terminable brain tumor. I am now raising our (2) daughters on my own as a single parent. How I miss our sweetheart.
Fortunately, when Byron and I were married he made arrangements for such a possibility as he was a caring and considerate man. Being able to invest a portion of the proceeds into a clothing store I owned allows me more time to spend with our daughters and attending to their needs. Because of his foresightedness we have financial stability, security and much peace of mind.
Without his pre-planning and preparation it's terrifying to imagine where the girls and I would be today. The plans for the future to a certain measure are still in tact. While we grieve our loss the void will never be filled but our thoughts of John brings great warmth to our hearts.
John was a father and husband who unselfishly thought enough of us and our future to make the decision to turn a life insurance quote into reality for the living. We can't thank John enough. [http://www.insurance-stuff-4u.com/life-insurance.html]More about a life insurance quote
Article Source: http://EzineArticles.com/?expert=Rolf_Rasmusson http://EzineArticles.com/?A-Life-Insurance-Quote-Became-Reality&id=56310
By [http://ezinearticles.com/?expert=Rolf_Rasmusson]Rolf Rasmusson
Life insurance quote
Thank goodness John took his life insurance quote seriously. It didn't prevent our daughters from wishing he were still here but thanks to his foresight they and I still have the things he worked for because he turned that life insurance quote into a policy before his untimely death.
Byron, my wonderful husband died at age 33 leaving myself and our two daughters behind. Six months prior he felt a tingling in his arms and it was discovered that Bryon had a terminable brain tumor. I am now raising our (2) daughters on my own as a single parent. How I miss our sweetheart.
Fortunately, when Byron and I were married he made arrangements for such a possibility as he was a caring and considerate man. Being able to invest a portion of the proceeds into a clothing store I owned allows me more time to spend with our daughters and attending to their needs. Because of his foresightedness we have financial stability, security and much peace of mind.
Without his pre-planning and preparation it's terrifying to imagine where the girls and I would be today. The plans for the future to a certain measure are still in tact. While we grieve our loss the void will never be filled but our thoughts of John brings great warmth to our hearts.
John was a father and husband who unselfishly thought enough of us and our future to make the decision to turn a life insurance quote into reality for the living. We can't thank John enough. [http://www.insurance-stuff-4u.com/life-insurance.html]More about a life insurance quote
Article Source: http://EzineArticles.com/?expert=Rolf_Rasmusson http://EzineArticles.com/?A-Life-Insurance-Quote-Became-Reality&id=56310
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