Life Insurance Settlements – Unlock the Cash From Your Life Insurance Policy Today

A life settlement, or the sale of a life insurance policy, is gaining popularity as a new opportunity for seniors to generate cash. By “cashing in” a life insurance policy, one can reap the rewards of an immediate cash payout without lapsing or surrendering the policy to the insurance company.

Faced with rising insurance premiums, increasing cost of healthcare and long-term care, more seniors today are choosing to sell their policies to third parties for a lump sum payment. Rather than let their policy lapse, seniors have the option of cashing out early and enjoying a higher quality of life.

Seniors can use the cash they receive from the sale to help pay for medical expenses, long-term care expenses, or everyday living expenses. Additionally, seniors are using the “unlocked” cash to travel, invest in a business or new property, or support their children and grandchildren. There are no restrictions or limits to how the cash may be used once the policy is sold.

How does it work?
Seniors who are over 70 and own a policy worth over $200,000 can sell their policy to an insurance buyer, otherwise known as life insurance broker or life settlement brokers.

By purchasing the whole, term, or universal life insurance policy, the buyer becomes the new policy owner. This means that the buyer takes over the premium payments and ultimately collects the full amount of the death benefit.

Who benefits?
As the policy holder, seniors may enjoy a higher cash payout upfront and the savings when the buyer takes over the ongoing insurance premium payments.

What’s the catch?
There is no catch. Settlements are legal and legitimate. Life insurance buyers are able to offer a cash payout because of the structure of their businesses and the financial market.

What should I know before considering a settlement?
The ideal time to sell a policy, otherwise known as taking a life settlement, is when:

1. The policy holder is over age 70
2. The policy is worth $200,000 or more
3. The policy holder is chronically ill, and/or their health is declining
4. Additional cash is needed to pay for cost of health care of long-term care
5. Policy holder is experiencing financial difficulties or needs additional funds to improve the quality of life
6. There is difficulty paying the premiums and are at risk of lapsing the insurance policy
7. The senior would like to remain financially independent

How much money can I expect to receive?
The lump sum payment will be determined on a case-by-case basis. It depends on a number of factors, including age and medical condition, the type and value of the policy and the premiums required to keep the policy active. A no-obligation appraisal of your policy can be requested before making the decision to sell it.

Any policy owner, including individuals, corporations, charities or trusts, may sell any insurance policy, including group and term policies.

What types of life insurance policies can be sold?
Universal Life, Whole Life, Variable Universal Life, Term, and Convertible Term Life policies, Joint and second-to-die policies are all policies eligible for sale.

How long does it take to get the funds once my policy is sold?
A general time frame is four to eight weeks to receive funds though the timing can vary. The buyers work to complete the process as quickly and efficiently as possible so that the money can be released to our clients as fast as possible.

Will I owe taxes on the money I receive?
Generally, the money received from selling the insurance policy will be tax-free up to the original policy’s tax-basis. Consult with a tax advisor regarding your specific situation.

How do I find a buyer for my policy?
Experts at http://www.LifeInsuranceBuyer are committed to achieving the highest value for their client’s insurance policies. Serving their clients with integrity and respect, Life Insurance Buyer offers free, no obligation, confidential policy appraisals for all qualified individuals. Contact Life Insurance Buyer at 1-800-LI-BUYER or 1-800-542-8937 to discuss your policy.

How Does a Whole Life Insurance Policy Work?

How exactly does a whole life insurance policy work? Whole life policies are popular with some select groups of people but they are a little bit more complex than their plain vanilla easy to understand term life insurance counterparts.

The business of insurance has to be one of the most underrated services offered in the United States nowadays. Not many people think having life insurance is important and because of this we see that the industry is not as successful as the auto and homeowners insurance business. It is important to know however, that death comes at any age; and if a person wants to protect their family or other people after their death it is imperative for them to purchase a life insurance policy.

There are two basic types of life insurance in the United States that work in completely different ways and because of this have different premiums. One of these types of insurances is one that is called a temporary policy. This policy covers a policyholder for about 5 to 30 years and their premiums are most of the time stagnant. On the other hand we have the permanent policy in which members are covered for life as long as they pay all their premiums. Part of your premium will go toward a little saving portion of the policy that will accumulate over time and the other portion of the premium goes towards the insurance cost of the death benefit.

Whole life insurance is one of the three types of insurance polices that you can obtain if you want a permanent life insurance policy. This means that whole life will cover you for life and that your cash value (saving portion) will get higher as time goes by. However, whole life is different in that your cash value is tax deferred until the beneficiary withdraws it and you can also borrow against it.

A person should consider whole life insurance when the need for coverage is lifelong. Whole life may be used as part of your estate planning because it accrues money after a person pays the premiums, as mentioned before. Because premiums for this type of policy are much higher than those of temporary policies, a person must know that this is what they want after all. Whole life is a good choice if you want to make sure that your family or dependents have a good life after your death, and that the transition from the death of a person close to their lives is a close one.

Within the whole life realm, there are six different kinds that a person can choose from.

1. Non-Participating Whole Life Insurance: This type of whole life policy has a leveled premium and a face amount through the entire policyholder’s life. Since the policy has fixed costs the premiums will not be necessary high, but it will no pay you any dividends after the policyholder dies.

2. Participating Whole Life Insurance: This type is much different from the first type mentioned. One of its differences is that this one does pay dividends and because of this premiums can be said to be a little bit more expensive. These dividends can be used to reduce your premium payments because they can be paid in cash, they can be left to accumulate at a specified rate of interest or they can be used to purchase additional insurance which in turn will increase the value in cash that a beneficiary will receive after a policyholder’s death.

3. Level Premium Whole Life Insurance: This kind of insurance is one that has the same premiums with no significant drop or rise in the money paid monthly through the entire life of the policy. At first the premiums will be enough to cover the services given and a little portion of it can be put away to cover the premiums that will come in later years when the cost of insurance in the market rises. The insurer can also pay extra premiums that will go toward the cash value part of the policy one the policyholder dies.

4. Limited Payment Whole Life Insurance: This is the type of policy that will allow you to only pay premiums over a specified period of time. This means that if you only want to pay premiums for about twenty to thirty years or up until age 65 or 85; this is the type of policy that you want. Because premium payments are going to be paid over a specified period of time, your premium payments will be significantly higher, but after you get done with them you will be covered for life.

5. Single Premium Whole Life Insurance: This type of policy is one that is very common for people that select the whole life insurance type. This is a limited policy with a single relatively large premium due at issue. Due to the fact that the owner of the policy will pay the single premium payments when the policy is first signed, the life insurance policy will immediately have cash and loan value! This type of whole term life insurance is mostly an investment oriented type than some of the others.

6. Indeterminate Premium Whole Life Insurance: This is the easiest type of whole life policy to understand and also one of the most common ones in the life market. With this insurance the company will give you a premium based on how the company is doing economically and on expense costs. This means that while one year the premiums can be slightly lower than expected, in the next the company can charge more if they are not doing up to expectations. It is also good to note that there is a maximum guaranteed premium when you first sign your policy and that the life insurance company can never charge above the premium stated

While the cost of whole life coverage is substantially higher than a term life policy with the same death benefit it is important to keep in mind that the reason for the difference in price is that the death benefit for the whole life policy will almost certainly be paid out – after all everyone dies sometime! With the term policy of course the insurance company is counting on not paying the death benefit out on over 90% of the policies it issues.

The issue of life insurance should not be taken lightly if one has a family or dependents. While some people in the United States are fed up paying all the different kinds of insurances and they figure that they don’t need to pay extra for life insurance when they are young, it is important to understand that life insurance can be a life saver after a family member, husband or parent dies.

Whole life insurance covers you for life and it will allow a beneficiary to continue life only having to cope with the issue of death and not having to worry about the economic hits that come with it. Life insurance policies are a must for anyone that has someone that relies on them for support and it’s time for all responsible Americans to realize that.

Your Guide For Home Insurance Policies

The term Home insurance encompasses two different types of insurance policies. The first is the building insurance, the second is the policy for various contents present in the building. Both these policies are sold together to home owners who would like to purchase home insurance for their precious investment. There are many different insurance companies which sell insurance policies for houses, the difference between the various policies is the level of protection offered. In this article I will be writing about the various things you should consider when you are planning to buy home insurance.

1. Make sure you get lower premium rates on your policy.

As with any insurance the home insurance also comes with a hefty premium amount. The first thing to do when you plan to buy an insurance policy is to make sure you get a lower premium rate. In order to get a lower quote on your policy you need to follow some safety measures:

– Having a house in a safe neighborhood automatically attracts low premium rate on insurance policy.
– Have an alarm installed in your home, most companies give you a rebate if your house is fitted with anti burglar alarms.
– Have your doors and windows refortified with locks. Many companies offer a very low quote if your house is thoroughly protected.
– Do not forget to declare certain key factors like you are not an alcoholic or a smoker; this attracts lower quotes because many companies consider individuals with good life style to be better care takers of the home. Similarly if you have a watch dog, mention it when you are buying the policy.

2. Separate insurance for building and contents inside the building.

When you decide to buy the home insurance make sure you buy separate building and content insurance policy. The logic behind this is fairly simple when you buy separate policy you can make sure you get two better policies at a very cheaper rate. When you are buying the insurance policy for the contents inside your house buy insurance only for the things which you need. Most of the companies would like to sell insurance for all the content in the building which will result in a very high premium. It is very important that you make it clear that you need insurance for the things which you consider are important.

3. Buy policies online

The best way to get the cheapest policies is to buy them online. Many websites offer reduced premium quotes if they are purchased online. You can also compare the various policies online before buying; this gives a clear idea of the various types of home insurance policies available in the market.