Friday, November 5, 2010

Learn About the Lowest Cost Term Life Insurance

When you search for life insurance, what exactly do you look for in a term life insurance policy? Do you decide on the basis of price, quality, or some combination of the two? With the economy being the way it is, many people are looking for the lowest cost term life insurance. When looking for the lowest price on life insurance, you do not have to resort to a low quality insurance policy to get the lowest price. You can have the best of both when you have term life insurance.

You can get the exact same face amount of insurance as a whole life insurance policy offers for a much lower price. The price for a term life policy insurance is cheaper, because after a specific amount of time, the policy will expire, and it builds no cash value.

For people that are smart, they will buy term life insurance, and use the money they save for investing in IRAs or various securities. Many times, the money in these types of accounts, is often more than the amount of money that would have built up over time in a whole life policy, and most of the time, the owner of the policy can renew their insurance policy if they wish, or they can choose not to renew it.

You should do research into the the lowest life policy that is the cheapest in price, and also the best in quality. Before you decide on a certain policy for thee lowest term policy insurance, look at the customer reviews and ratings that have been given for it. You need to make the proper decision, since your family's future is at stake, so take your time when choosing the best policy.

When you start with the application process, be sure that all of the questions that are on it, are answered completely and truthfully. It wouldn't be good if you had gotten all the way to the end of the application, and then the underwriter declines it. You will have thrown away all of the time you spent searching for the best term life insurance.

Life Insurance Policies and Provider in India

People's Money for People's Welfare.

The Life Insurance Corporation of India has been a nation builder since its formation n 1956. True to the objective of nationalization, the LIC has mobilized the funds invested by the people in the life insurance for the benefit of the community at large.

LIC has deployed the funds to the best advantage of the policy holders as well as the community as the whole, true to the spirit of nationalization. National priorities and obligation of reasonable returns to the policyholders are the main criteria of their investments.

The total funds, so invested for the benefit of the community at large accumulated to Rs. 815484 crore as on 31st March 2009. The Investment of the LIC's funds is governed by Section 27A of the Insurance Act, 1938 subsequent guidelines/instructions issued thereunder by the Government of India from time to time and the IRDA by way of regulations.

As per the prescribed investment pattern approved by IRDA, the controlled funds are invested as follows: Not less than 50% is invested in Government securities or other approved investments.

LIC Other Plans: a) Money Back Plans (Table Nos. 75 & 93): Besides providing life cover during the term (20 & 25 years) of the policy, survival benefits linked to the sum assured during the term of the policy will be available.

b) Jeevan Mitra (Table Nos. 88 & 133): An Endowment Assurance Plan providing for twice or thrice the sum assured payable on death of the life assured during the policy term.

c) Jeevan Saathi (Table No. 89): A With-Profits Joint Life Endowment Assurance plan for both husband and wife.

d) Fixed Term (Marriage) Endowment/Educational Annuity (Table No. 90): An ideal plan for making provision for education/star-in-life or marriage of children. Claim/Annuity is payable after expiry of policy term.

LIC is the nation's insurance builder.

Protective Life Insurance Policy : Know the Basics

Protective life insurance has been a major attachment in most basic estate planning and development and the majority can offer a non-taxable income death benefit, which can go beyond the amount of premiums being paid by a client.

Still, a lot of protective life insurance payments and funds are mostly wasted if the designations for ownership and beneficiaries aren't properly designed or structured.

Due to the established federal and state taxes, taxes might be obligatory on all properties that you own at the time of your death. This specific tax must be paid from your property estate. This tax will not be attached if the value of your estates is less than your estate tax exemption amount. If you have a protective life insurance policy, or your estate and yourself are included in your premium as beneficiaries, then your policy death benefits will possibly increase your estate value.

However, if you have already included your protective life insurance death benefit funds and your estate property's value is still less than the state tax exempt amount, then there will be no federal estate that will be assessed. Hence, you insurance's death benefit funds can easily be directed to any of your beneficiaries and will not be needed to pay all the estate tax liabilities.

If you own a particular property that exceeds your specified estate tax exemption amount, then you may have an estate that is taxable. If you are under a protective life insurance policy, or if you have specified you or your estate as the primary beneficiaries, then it is likely that you have exposed your policy's death benefit funds to your estate taxes.

In most cases, whenever an estate tax is concerned, a protective life insurance policy is normally best and ideal, especially if it's owned by someone else. However, you may also petition a binding trust to be the primary owner and beneficiary of your protective life insurance policy. Also, you may assign your children who are above 18 years old to be included in the list of your policy's beneficiaries.

Either way, it can help you avoid the inclusion of your policy funds or contribution in your property estate. At the same time, third-party policy owners may also lend such contributions to your estate to provide you with cash that will satisfy and lessen your property tax liabilities. In cases where you enlist your spouse as the owner of a policy on your protective life insurance, make sure that, if your spouse meets an untimely death, you will not end up owning the insurance policy that is acquired through a living trust or by a provision that is stated in your spouse's last will and testament.

Even if there are cases where the owner of the policy is a third party, if the beneficiary passes away before the insured, the contributions may be directly paid to your estate tax. Always remember that a gift of protective life insurance to any third party may be accompanied with a gift of tax consequences.

Endowment Plan in Life Insurance

Endowment plans were very popular in the past mainly because there were hardly any options available in the market. The popularity of such policies could also have been because of the guaranteed returns assured by the insurance providers. But with time this type of policy has lost its popularity with so many players in the market and new innovative products have taken over the insurance industry by surprise.

Endowment Plan is a type of Life Insurance policy where the premium paid is partly divided to secure your life and partly for investment purpose to generate revenues. The insurance companies in this reference act like brokers to you, they invest your money in the market and share the returns with you. Such types of plans are long term plans which cover life. You are bound to pay the premium until its maturity and the premiums payable for such plans are obviously expensive than other term plans. Since it is an endowment plan, in case you survive the tenure of the policy, an amount equivalent to the sum insured plus the accumulated bonuses is payable to you. If you expire during the tenure of the policy, the sum insured plus the accumulated bonuses is payable to the nominee or beneficiary. Special feature of the plan is that even on survival the policy holder is payable by the insurance company. This means that the plan is beneficial in both ways which is not the case in any other term policies.

In these types of plans the insurance companies use part of the premium paid by the policy holders for further investment. But it is surprising that the investments made by the insurance companies lack transparency and you have no control over the investment made by the companies. You have no idea where the money is being invested and how much and so on. We are aware that the insurance companies generally invest money in virtually risk-free government debt, which is a safe bet but earns meager returns. Each year the insurance companies declare bonuses and these bonuses are nothing but the profit earned on investments made after deducting the administrative expenses of the insurance companies. Here also there is lack of transparency because you as the policy holder have no idea about how much the company has earned out of the investments made and what are the administrative and other expenses of the investing company. So basically the policy holder has to accept whatever the insurance company offers to pay. The insurer has monopoly position over the policy holders here.
Thus this is one reason for the plan to have lost its popularity. The plan has a competition now, with private players in the market Unit Linked Plan has been introduced. It allows more flexibility and transparency.

The premium for Endowment Plan is significantly higher than any other type of Term life insurance plans for the same amount of sum assured because it is insurance plus investment plan clubbed together offering a wider option to the consumers. Therefore individuals should be aware of the value that endowment plans bring to their financial and insurance portfolio, then bend down to buy one.

The Bright Side of Annuity Sales Leads Exposed

You've probably heard some bad things about annuity sales leads, especially in the cases of buying them online. However, in your efforts to avoid getting scammed, you're missing out on a big opportunity. With the right information, you'll know what to do and how to go about it.

One claim is that these leads are very expensive. However, they're actually not, especially if you consider how much you can make. You can buy ten leads for about $500 dollars, about the cost of holding a couple seminars. Expect to make about two sales from this total list of leads.

More importantly, the amount you earn will make the amount you had to spend seem tiny. You can probably get about $8,000 for each of the sales you do make, adding up to $16,000 or $15,500 with the $500 taken re moved for expenses. With the leads, you already know people are interested.

Be assured that you are not getting tricked - or, at least, that you won't be if you're smart. Like with anything else you'd buy online, you need to check to make sure the seller and profit are reputable. You do need to make sure that nobody else will also be trying to see your lead.

It's important that there's a return policy. If there is none, there's a good chance your annuity sales leads aren't exclusive and that somebody could sell it, leaving you in the dust. Saving this one risk, though, which you can prepare for, chances are you won't need to worry about anything you need to do.

It's fairly easy to find the provider for you. You'll want to make the process more efficient by using automatic lead purchases, but past that, you have all sorts of options. Let go of your fears and get into the newest way of making money. In the end, you'll be very glad you did.

Endowment Shortfall is a Serious Thing and You Could Claim Compensation If You Do Some Research

If you've been an endowment policy holder then you may have been mis sold it and this means that you may be able to claim compensation. Endowment shortfall is a complicated topic but to make things simple, for the purposes of this article, it means that something went wrong and you end up out of pocket. This can happen and it is a nightmare but you can claim compensation if you do some research on the web.

Finding information about financial terms and finances is actually quite easy when you look online. There's a huge range of information available for free and this means you should find a solution to your problems in no time. However, if you then want to take things further by making a claim then you will need to do some research to find the best specialists who will be able to get your money back.

There are several companies on the web who offer these kinds of services but you will need to do some comparison if you want to get a good deal. It's worth calling a few places because most will offer free advice and you can use this advice to figure out which company you want to deal with.

Research is the most important part of claiming for something like this. Endowment shortfall can really be a big problem and if you want to get it sorted then you need to speak to experts in the field rather than a random financial company. Look for people who deal with mis sold endowments or other endowment topics because they are more likely to know how to help you.

Remember that your circumstances may be completely different from other people so don't accept any advice from any who isn't a lawyer or solicitor. You want advice from experts in the field, not your friends. Be sure to have a pen and paper with you so that you can make a few notes as you browse the web.

Overall, finding experts to help you with you endowment shortfall claims is quite easy. Just remember to do your research properly and make sure that you're armed with information before you approach any companies. Do some comparison to find yourself the best deals for legal advice.

Endowment Life Insurance, A Saving Policy

Life insurances are mostly designed for long term, some of the policies can have refund but some are not, depends on which policy you purchase. For example term life insurance has no cash value, it is designed solely for life protection, upon the maturity the buyer receives no refund, and all the premiums paid will not get back. Whole life insurance has cash value, but it has no maturity, it is a life-long investment.

Some people want to have protection and have saving at the mean time; endowment life insurance is the ideal policy, because the buyer can have not only protection, the maturity of the policy is short, and he also benefits the interest and the full amount premium refund upon maturity.

An ideal plan for saving
The premium of this policy is high but the amount payable is within short term, the policy holder can cash out the money in 10 to 20 years time. This policy provides coverage to the buyer for a specified term and the sum assured is payable to the policyholder along with the entire bonus accumulated upon the maturity of the policy, it is suitable for those who want coverage and at the same time can have big saving.

Different types of Endowment Life Insurance
Endowment plan is categorized as full endowment, modified endowment, low cost endowment and traded endowment; it is advisable to find out which product is suitable for you.

Surrender of policy
In the event of surrendering the policy the buyer can cash in his money earlier, he will receive the surrender value, the payout is determined by the insurance company, and it depends on how much premium paid.

Premium rate
This policy covers the buyer death benefit and has an early maturity, therefore the premium is higher than whole life insurance and the bonus rates lower, and the buyer will receive his premium payments upon maturity. The maturity ranges from 10 years to 35 years, the shorter the period the higher the premium.

What is Endowment Insurance?

In Life Insurance, by Dan McGill, 1967 Edition, we read, "from the standpoint of structure, it may be said that an endowment policy is a combination of pure or level term insurance and a pure endowment. The same description may be applied to a whole life policy, which is simply a combination of term insurance for a period extending to age one hundred and a pure endowment for the same term."

Barron's Dictionary of Insurance Terms by Harry W. Rubin, third edition, 1991 defines PURE ENDOWMENT as "Life insurance policy under which its face value is payable only if the insured survives to the end of the stated endowment period."

The Handbook of Insurance by Clyde J. Crobough, 1931, speaks of the attributes of endowment insurance: "Some of the special merits of the endowment policy may be summarized briefly: 1. Is a method of compulsory saving. 2. Combines protection and investment. 3. Helps to create funds for special objectives which the policyholder may use."

Endowment life insurance policies have been rarely used in the last ten years. Prior to this, they were popular as a savings mechanism at many life insurance companies. Today, annuities and or universal life have replaced endowments as a popular concept. However currently, endowment life insurance policies seem to be making a comeback. More and more insurers have been offering these policies to satisfy various life insurance and income tax needs. The advantage of an endowment life insurance policy over a tax-deferred annuity is that upon passing to the beneficiary, income tax on the interest earned will have to be paid on the annuity but not on endowment life insurance policy.

Endowment Insurance Explained

Similar to Term life insurance, Endowment insurance is also designed to cover the insured person for a specific period of time, however, that's what the similarities end. Endowment is more similar to Whole Life insurance except that an Endowment policy matures faster than Whole Life does.

An Endowment policy lasts for a specific period of time, for example, a 20 Year Endowment or an Endowment at 60 years. All that this means is that the policy will be paid off in that time frame. In a 20-year Endowment all of your premiums would be paid off in 20 years. In an endowment at 60 you only pay life insurance premiums until you're 60 years old, at which time your policy would be paid up in full. This makes Endowment much more expensive than regular Whole life insurance because you're taking an entire lifetime of premiums and compacting them into a short period of time. The shorter the period, the higher your premiums will be.

Endowment policies build cash value much faster than Whole Life policies do because you're paying your premiums out in a shorter period of time. During the period of coverage the insurance company will pay the beneficiary of the policy the face value in the event of the death of the person insured. If that person does not die during the specified period of the Endowment, then the owner of the policy will receive the face value when the policy reaches maturity. The cash value and face value will both equal the same amount when the policy matures.

The main purpose of owning an Endowment policy is so you can acquire a rapid buildup of funds over a short period of time. These funds can be used for any purpose needed. Endowment policies are not nearly as popular as they used to be.