Accidental Death Life Insurance Policy – You Could Save Over $500 A Year On Your Life Insurance

Are you looking for Accidental Death Life Insurance Policy?  You can safeguard the future of your loved ones by investing in a good life insurance plan.  In times of trouble and loss, your family can greatly benefit from a proper life insurance policy.  Your dependents\’ financial welfare will be protected by the life insurance plan you have when you are not there.  It\’s vital to analyze all the relevant insurance plans on the market.  The insurance policies should satisfy your and your family\’s needs.

Get a free life insurance quote now.

Finding an insurance policy that provies the most insurance for a fee that is financially sound is very important.  Getting insurance quotes is as easy as doing an internet search.  Using this method can decrease the amount of time it takes to find the right policy.  The advantage in this is that you will get many different quotes from different insurance providers.

Many websites are in place to help you obtain free insurance quotes.  With these free websites you can save time and energy.  This makes it simple to find the firms that will provide the best coverage for your cash.  When you acquire yourq uotes, you can then opt for the agencies that provide for your needs for a fee that you can manage.

Click here to get your personalized insurance quotes now!

It is recommended that you obtain second opinions on the insurance provider that you are researching.  To get the best Accidental Death Life Insurance Policy, it\’s vital to perform an appropriate amount of looking around.  You can ask those that have acquired life insurance to learn more about their experiences with their policy.  The experience they have can let you  know if you should get the policy.

When you acquire a quote online, you will fill out a form that asks basic information like your birthdate and gender.  After you fill out the questionnaire, you will see cheap plans from several providers.  You will finally have to decide on what providers are the correct ones for you and your dependents.

Get started and don\’t wait any longer.  For more information on Accidental Death Life Insurance Policy and to compare cheap life insurance quotes, click here.

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Buying Life Insurance? One tip to save you £thousands!

It\’s simple, always have your Life Insurance policy \”Written in Trust\”. This may sound technical but it is easy to understand and it\’s so easy to organise.

\”Written in Trust\” ensures that in the event of a claim, the policy will pay directly to the beneficiaries you name on the policy when you first take it out. If you do not do this, the policy will payout to your legal estate and this inevitably means that the money stays in your solicitor\’s hands for some time.

Yes, that implies legal delays and, of course, your solicitor takes a small cut!

Then, if the value of your taxable estate exceeds £275,000, and remember your home can easily account for the lion\’s share of the £275,000 limit without much difficulty, your estate will have to pay Inheritance Tax. This represents 40% of the estate\’s taxable value in excess of £275,000. So, if your estate has to pay Inheritance Tax and the proceeds of your life policy go to your estate, the taxman gets his hands on 40% of your life policy!

But it\’s so easy to avoid all these problems.

Simply get your policy \”Written in Trust\”. Then the life insurance company pays out immediately, directly, and totally tax-free, to the persons you have named on your policy. All you have to do is tell the online brokerage organising your policy that you want your policy \”Written in Trust\” and they will automatically sort it out for you.

This advice remains sound even if the Life Insurance policy is designed to pay off your mortgage. Rather than your estate using the insurance payout to pay off your mortgage, the policy can be written in trust and paid to your partner and then he or she can use that money to pay of the mortgage. The benefit? Well if your taxable estate exceeds the IHT threshold the mortgage is effectively paid off tax-free.

The extra good news is that all the brokers we\’ve met will arrange for your policy to be \”Written in Trust\” as a free of charge service. So it\’s a win win situation and there aren\’t many of those around these days !

Michael Challiner has 15 years experience in financial services marketing at senior level. Michael works as the editor of Scrouge Life Insurance on behalf of Andromeda Webs Ltd

Futher reading Life Insurance what is it ?
Futher reading Life Insurance – What types are there?

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Children with special needs may encounter financial difficulties without Life Insurance

Special needs children require a lot of care, not just in their younger years, but also as adults, often at the hands of a dedicated caregiver. The monthly expenses of caring for a child with special needs can easily run into hundreds of dollars.

Parents are often too overwhelmed with the daily demands of these children, to worry about looking into the right financial planning vehicle to provide for special children in their later years. However, when you are the parent of a special needs child, you should consider planning your insurance so that your child receives the maximum benefits. A term life insurance is the most affordable insurance plan.

Some of the difficulties commonly encountered when providing for the future of a child with special needs.
Children with special needs often need assistance all through their adult life, and obviously parents cannot provide their personal care indefinitely.

  • Many parents think of making a sibling the beneficiary of their special needs insurance plan, and entrusting the sibling with the responsibility of succeeding themselves as caregivers. In such a case, what if the sibling predeceases the special needs child, or worse, misappropriates the money (there have been too many instances)?
  • Some parents think that making a special needs child a direct beneficiary of their insurance policies is the best approach. What they don’t know is that by doing so they would disqualify the child from receiving government assistance. Any inheritance of more than $2000 will disqualify your special needs child from federal assistance and state assistance programs.

Therefore it is pertinent that parents not just plan for the future, but also make sure that their planning is correct, and is one that does not disqualify the child from getting the government assistance that he or she is entitled to, as a United States citizen.

Life insurance planning
Most parents with special needs children have seriously considered one or both of the above-mentioned ‘mistakes’. But as you can see, they are both not the ideal way to make sure your child has enough money (and therefore adequate care) when you are not around.

The answer to the above challenge is to form a trust, and make the trustee a beneficiary to your life insurance policy, so that the trust is funded by your life insurance benefits (and even other assets if you so wish). The trustee is not allowed to benefit personally from the trust. Further, receiving financial benefits via a trust won’t disqualify children with special needs from receiving government assistance. So forming a trust will overcome both the problems highlighted above.

In addition to forming a trust, here are more tips for you when planning your child’s future.

  • Work out details of your plan, and make sure other family members are clear about it too. Despite the formation of a trust, a child with special needs will need a place to stay. Involve the whole family in deciding where that will be, especially when after both you and your spouse are no more.
  • Talk to an attorney and financial advisors who specialize in special needs cases.
  • Write a letter of intent and leave it your attorney. Your attorney will help you draft it.
  • Work out what government benefits your child is entitled to.

Choosing the right life insurance policy
Permanent life insurance policies usually provide for a cash value in addition to the sum insured and can be very useful in financial planning for the needs of a special needs child. Term life insurance policies provide only the sum assured, but are available for pre-defined terms only. Keeping in mind that parents may already have a lot of financial responsibilities, term life insurance is the more economical option, provided it is taken for a long-enough term, or comes with an option to favorably extend the policy at the end of the term. Term life quotes can be easily obtained through the Internet from a multi-carrier insurance agency. Keeping in mind that you are planning for a special needs child, you would probably find it beneficial to follow-up the free online quote by meeting with a representative for an in-depth discussion.

Be prepared, the right way
A lot of families are quite unprepared to deal with the future needs of children with special needs. These days, medical technology is helping children with special needs to live longer and more productive lives. Insurance and its correct disbursement via a trust are key components in making sure that they are happy and cared for though life.

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There Is Beauty In Simplicity: Consider An Insured Annuity

As a derivatives trader, nobody more than myself enjoys coming up with sophisticated investment strategies.  Yet, sometimes opportunities presents themselves in ways that don\’t require a whole lot of complexity nor hours of research.  And while I strongly believe there are no free lunches out there, sometimes you do find a $5 bill or even a $20 bill lying on the street.  An insured annuity is one of those very simple, easy to understand products that complement the fixed income portion of one\’s portfolio.     

So, what is an annuity? It is a contract, usually between an insurance company and an “annuitant” who, for a lump sum payment, will receive from the insurance company, a stream of income for life — very similar to the benefits of owning a long term bond or perpetual preferred share.  

So what is an insured annuity?  An insured annuity is simply an annuity in combination with a life insurance policy.  One of the disadvantages with owning an annuity without the insurance policy is that once you hand over the cheque to the insurance company, you don’t get your money back.  An insured annuity solves this problem.  Basically upon death, the annuitant\’s estate receives the principal amount back — again very much like a bond that upon maturity pays back the principal amount.

Now, there are various types of annuities, and many factors that need to be considered in determining the appropriate type of annuity.

Single Life Annuity

A single life annuity will provide you with an income for as long as you live, ensuring that you will never outlive your money. It can also be guaranteed for a certain number of years. Should a premature death occur, the estate will continue to receive the funds at least up to the guaranteed period.

Joint and Last Survivor Life Annuity

This life annuity is payable while either you or your spouse (or common-law partner) are living. When one spouse dies, the survivor can continue receiving income payments as agreed upon when the annuity contract was established. As with the single life annuity, a guarantee period can be written into the contract.

Term Certain Annuity

This type of annuity can be useful for planning ahead when you will require a specific or additional income for a pre-defined period. A term certain annuity provides you with an income for a set period, or until a certain age.

How Life Annuity Payment Amounts Are Calculated

The life annuity payment amount is fixed and is based on:

• the amount of money used to purchase the annuity,
• the type of life annuity purchased,
• current interest rates,
• the ages of the annuitant and joint annuitant, if any,
• current long-term bond rates.

Tax Efficiency

Perhaps the greatest benefit for considering an annuity is for the tax efficiency of the prescribed annuity when using “non-registered” funds. The CRA recognizes that payments received as income from an annuity include both interest and principal. Since taxes have already been paid on the principal, the annuitant will not be taxed twice.

For example, if one purchases a life annuity for $1,000,000 and receives an annual income of $80,000, the amount that is taxable might be $18,000 (actual income and taxable amount will be based on conditions when an annuity is purchased).   That leaves the investor with $62,000 on an after tax basis.

However, in order to complete the financial analysis, we have to factor in the cost of the insurance policy.  Again, it will depend on the individual but for this example, let\’s assume the cost of the insurance policy was $15,000.  This would reduce the investor\’s income from $62,000 to $47,000 on an after tax return basis.

In comparison, an affluent, wealthy investor would have to earn at least 8% from his bond portfolio in order to match the after tax return of an insured annuity.  Given that most investment grade corporate bonds are paying closer to the 5-6% range, the insured annuity outperforms by a landslide.

In summary here is what an Insured Annuity can do for you?

  • Provide a regular, guaranteed income stream for both you and your spouse for as long as both of you live.
  • Create a tax advantage
  • Ensure your principal is returned to your estate upon death
  • Reduce market risk to investable assets by treating an annuity as part of the asset allocation strategy of the portfolio

Are there any disadvantages to an annuity?  It’s a non-cancellable contract, and technically you lose control of those funds. The contractual payments are fixed and will never increase — hence annuities are subject to inflation risk which is why we at Frontwater believe they are a complement to a portfolio weighted towards fixed income.  

Certainly, as stated above, if for no other reason than continuing market volatility, and your expectations of a long life, a look at including an annuity within your overall investment strategy might be worth a consideration.

Whenever, I speak about insured annuities, I am reminded of the story with Leonardo da Vinci and the Pope.  The story goes that the Pope requested that Leonardo da Vinci submit a piece for a new commission. Leonardo drew, freehand, at arms length, a perfect circle on a sheet of paper and sent it to the Pope, who promptly gave him the commission.  For those who don\’t know, to draw a perfect circle, freehand and unsupported is one of the hardest things possible to draw — all the more reason to admire beauty in simplicity.

To find out more about insured annuities, please contact Warren Blatt at 416-319-8172.

Author: Jeff Kaminker

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Life Insurance For Senior Citizens – Low Cost Life Insurance Policies

In search of Life Insurance For Senior Citizens?  Purchasing a proper life insurance plan is a major step in securing your loved ones\’ futures.  In a time of hardship, a fitting life insurance policy can provide for your children.  The life insurance policy is there to procure the financial stability of your family when you are not able to.  You should review the most relevant policies available as it is a common practice.  The proper insurance policies will be able to meet your family\’s needs adequately.

Click here for a free life insurance quote.

It\’s important to buy an insurance plan that gives you the most coverage for a cost that is within your financial reach.  You can find insurance quotes by doing a search on the web.  Investigating the different insurance plans available in this way can help you find the right policy faster.  By doing this you can get a number of different insurance policies from numerous insurance organizations.

There are many websites that provide free life insurance quotes.  You can be matched much faster to policies with these free services.  With this you can more easily find the insurance firms that will provide you with the most protection for the price.  After acquiring your policies, you will then be able to choose what companies meet your needs for a price that you find comfortable.

Go here for your customized life insurance quotes.

It\’s preferable to get second opinions about the insurance provider that you are looking at.  To get Life Insurance For Senior Citizens, it\’s crucial to perform an good amount of research.  Inquire information from those that have purchased life insurance to see how the process of getting the insurance works.  The knowledge they have can tell you if the policy is right for you.

When collecting quotes online, you just need to type in basic info like your age and gender.  After you finish the questionnaire, you will get inexpensive quotes from different agencies.  Then you will be able to decide what organizations are the suitable ones for you and your family.

Put together your life insurance plan now.  To discover more about Life Insurance For Senior Citizens and to compare life insurance policies go here.

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A Quick Walk-through of How Insurance Works

Sometimes, it\’s good to go back to the basics. What is insurance and how does it work? By really understanding these two questions, we can make better decisions when choosing term life insurance or any insurance for that matter. So let\’s go back to the basics and understand how insurance works and more importantly, how it can work for you.

Insurance has been around centuries in one form or another and has really exploded into so many variations and types that it can be overwhelming. From Property and Casualty to Health to the one most relevant to our decision, life insurance…insurance can be bought on most things and situations these days. Before we become overwhelmed with the options, let\’s go to the heart of how insurance functions.

Insurance is based on the premise that a given situation, whether it\’s the death of a financial provider (life), a catastrophic illness/injury (medical), or a tragic house fire (property and casualty), would so adversely affect a person or group of people financially, they would be unable to recover. It is a catastrophic loss that any given individual cannot financially survive. How do we do deal with that. Life insurance typically involves a great deal of money as we may need to replace the potential income from an earner over decades. Health insurance bills can run hundreds of thousands….even millions of dollars. The total destruction of a person\’s house can also be hundred\’s of thousand or millions of dollars. These are big numbers and society needs a tool to somehow offset these situations which although rare, do occur to individuals within a group. The answer is insurance.

Insurance, whether it\’s term life or some other type has a simple premise and promise. If we can group many individuals together (the more the better), then we can spread an individual\’s risk of a catastrophic situation occurring among the whole group. We never know for certain which individual it might happen to which is why we need insurance in the first place. There is however, a probability or percentage chance for any one individual based on historical data. If for a given population, 1 person out of 1000 dies from age 40-45 each year, we now can calculate how much to charge each individual in that group of 1000 people for a certain level of benefit. Let\’s say for $100,000 of benefit to paid out in the even that a person dies, we know we can divide the $100K by 1000 (number of people) and then charge each individual $100/per year. 999 of the people will pay $100 and not receive a benefit but the one person who passes away will be able to pass $100,000 down to their beneficiaries. This in a nutshell, is the core functioning of life insurance and indeed, insurance itself.

The more people we have in the pool, the better. Let\’s say there is a really bad year where five people in that \”risk pool\” die. The premium would become $500 or five times the original amount. That\’s too much volatility. Or let\’s say 1 person in a risk pool of 10 individuals dies. The premium then becomes $10,000. That doesn\’t work either. The way to address either situation is to have 100,000\’s or millions of people in the risk pool. This way, the odd years or spikes in probability are smoothed out for a more stable premium.

The life insurance carriers in this situation try to best estimate risk, probability, and premium so that they attract as many people as possible into the pool. If they can successfully do this, they are able to add a small percentage to the premium to both operate their business and have a profit (if they are a Stock Company model). The carriers have also taken this core design and tweaked it over the years with add-ons such as Riders or certain Exclusions that either augment or protect the original risk assessment.

Why is it important to go back to the basics? Well for one, you now will have a better understand of why term life insurance might be a better or more pure form of insurance than whole life or annuities. Insurance is about risk…not investment. There are better ways to invest than through life insurance as we discuss in detail at our Term versus Whole life insurance article.

We hope this helps give you a core understanding of insurance. You can now compare and choose the right for you through our term life quoting engine as a final test!

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