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Life Settlements
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Best Insurance Policies using Online Term Life Insurance Quote
Did you know that you could apply for an insurance policy sitting at home from your own computer? Well the good news is, yes you can do it from home now on your own personal computer. You do not have to look for a pen and paper when your policy has to be renewed or spend time inquiring about the features, prices and the benefits of each and every policy available. You neither have to wait in telep... Read insurance article
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What exactly made jet skis popular, we can't tell. It might be for the powerful acceleration or the general design. Or water maneuverability or fun of riding it. Or simply because its uses cater a large spectrum of audience including recreational activities for families or heart-pounding experiences for thrill seekers.
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Life Settlements
A relatively new segment of the life insurance industry has emerged which is creating quite a stir. I am referring to the rapidly growing life settlement industry. Essentially, a life settlement is the sale of ownership rights to an existing life insurance policy from the insured to a third party for more than the surrender value but less than the death benefit. Advocates of the industry say that it's a win-win situation for everyone involved. The seller gets immediate funds, and the buyer can receive greater sums upon the death of the insured. Sounds great, doesn't it? Like most things, in order to understand it we must first look at its history.
The life settlement industry is a spin-off of the viatical settlement industry. Viatical settlements came about in the late 1980's during the outbreak of the AIDS epidemic. AIDS patients had exhausted their funds in order to pay for medical treatment. One of the few things of value that many of these patients had left was their life insurance policy. At this time, a group of investors decided that it made sense to purchase these policies. If someone had a $1,000,000 policy that they were willing to sell for say $500,000 and their life expectancy was one year, anyone could see that this was an exceptional investment. The investors would see a pre-tax profit of $500,000 minus any premiums they had to pay to keep the policy up. I can't think of anyone that would turn down a 100% yearly return on their investment. This practice grew into a billion dollar industry overnight. Thankfully, medical advancements began to lengthen the life expectancies of AIDS patients and instead of having one year to live, patients were living for 10 or 20 years after their diagnosis. As a result, instead of seeing a 100% return on their investment, investors were seeing a 5% or 10% return. Suddenly, betting on death wasn't such a sound investment and the viatical settlement industry vanished as rapidly as it had arrived.
Life Insurance has always been a very profitable business. There are numerous reasons to purchase life insurance: tax-free savings, financial security for dependents, I could go on all day. The only problem with life insurance is that you have to actually die in order to reap the benefit of it. Well, not anymore. The same investors that made billions of dollars through the viatical settlement industry came up with a plan so that people can profit from their death - before they die. A life settlement allows the insured to receive a substantial lump sum - usually in the hundreds of thousands of dollars, while they are still alive. So the insured gets a big cash payout to enjoy while they are still alive and the investors get a big cash payout when the insured dies. It looks like everyone is a winner here, doesn't it? Unfortunately, in order for there to be a winner there must also be a loser.
So who loses in this deal? Insurance companies. Insurance companies love it when a policy lapses. A lapse is when the insured stops paying their premiums and as a result, the insurance company never has to pay a death benefit. So if someone faithfully pays their premiums for years and years and then suddenly stops, the insurance company gets to keep all of that money and never has to pay out a dime. Unfortunately for the insurance companies, policy owners who would have allowed their policies to lapse in the past are now selling their policies. Upon the sale of the policy, the buyer is obligated to pay the future premiums until the insured dies. Of course the buyer won't allow the policy to lapse because the whole reason that they purchased the policy was to realize the death benefit. As a result, many insurance companies are forbidding their agents to advise their clients to pursue a life settlement.
Life settlements can be extremely beneficial for some people. For example, if there are immediate financial needs, a life settlement is an excellent means to provide income. There is essentially no risk and there are no out of pocket expenses. On the other hand, life settlements don't make much sense for some people. If an insured doesn't mind paying the expensive premiums to keep the policy up, they should obviously keep the policy in order for their beneficiaries to realize the full death benefit. As with any investment opportunity, a life settlement should be carefully considered with one's advisors.
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How to Save Big on Insurance
Insurance rates continue to climb as disasters such as floods, wildfires, and hurricanes are factored in. Rate increases that are double, even triple the cost of living are common, putting added pressure on cash strapped families everywhere. Fortunately, you can get a handle on your insurance costs by following these important money saving tips.
Combine Various Policies. If you own a home and you own a vehicle then buy your insurance from the same insurance business. Some insurance companies recompense customers who choose to package their various insurance policies, by offering discounts as high as ten or fifteen percent.
Refrain From Poor Habits. Smoking, drinking, taking illicit drugs can work against you. If you live "clean" make certain your insurance broker knows this. Your rate will be reduced correspondingly with your good health report.
Reduce Your Deductibles. Maybe a $200 home insurance deduction is too low. If you can manage a deductible of $500 or $1000 you can significantly reduce your premium. You'll pay more if a situation arises, but how often do you file a claim anyway?
Cover Your Small Losses. If you are considering what will likely be a small claim, give thought to not submitting this information to the insurance company. Claims made by you, whether small or large, can push up your rates or even cause your policy to be cancelled.
Special Discounts. Depending on your age, driving record, even your credit score, there are special discounts you can take that will reduce your premiums. If you aren't receiving discounts...ask!
Scrutinize Your Policy. Every policy is correct, isn't it? Don't bet on it! A wrong zip code could have your insurer thinking that you live on the wrong side of the tracks...literally! Rates can fluctuate from neighborhood to neighborhood; make certain that your rates are in line with what your neighbors pay.
Pay It All Now. Save on your premiums by paying the entire invoice up front instead of monthly or quarterly. Insurers will add on an extra fee to your premium if you choose to spread out your payments over time.
You could also save yourself money by staying with one insurer as most will reward regular customers with loyalty discounts. Furthermore, it could benefit you to have an alarm installed in your car or in your home, especially if you reside in a high crime area or visit neighborhoods where your car could be vandalized.
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