What You Need to Know About Borrowing from a Life Insurance Policy

Borrowing from Life Insurance Robert Taurosa

When life insurance policies were first introduced, they were meant to cushion the beneficiary from financial worry in the event of the insured’s death. However, as time passed by, life insurance incorporated savings and investment into the package. Policies such as whole life and universal life insurance provide cash value back to the insured.

What You Need to Know

You cannot ask for a loan if you have a term life insurance policy. This is because the insurer does not offer any additional benefits. A term policy is only meant to benefit your beneficiaries in case you die before the contract expires.

If your policy has a cash value, think before you ask for the loan. Find out how the loan will affect your policy. Typically, when you borrow on your life insurance policy, the cash value acts as collateral. If you fail to pay back the loan, the insurer can take the cash value. However, you run the risk of losing your entire policy if the interest payments plus the actual loan amount is more than the cash value.

Before you borrow on your life insurance policy, the cash value has to be substantial. Usually, you build this value through years of saving. Talk to a qualified financial planner about how you can build up this cash value.

When asking for the loan, the insurance company will give you a form to fill. Watch out for hidden costs in the form. For example, is there an ‘opportunity cost‘ that you may have to pay? Find out if you can afford to pay the interest payments. Make sure that the loan and interest repayments won’t affect the death benefit portion of your policy.

Borrowing on your life insurance policy is much easier than borrowing from the bank. You don’t have to go through a lengthy application process. You ask, and if the cash value is sufficient, you get your loan.  

Before you borrow on your life insurance, make sure that you have the right policy. A term life policy does not allow you to borrow while a whole life policy will enable you to do so. Then, talk to a financial planner to see how the loan will affect policy benefits.

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What You Need to Know About Borrowing from a Life Insurance Policy

Should You Purchase Supplemental Life Insurance at Work?

Supplemental Life Insurance Robert Taurosa

Supplemental life insurance is an extra life insurance policy. The employer will offer this policy as a benefit for the employee. You should purchase supplemental insurance at work if the policy meets your needs. Here are a few reasons why the employee buys this policy at work. The employee can afford the policy. The employee has a family. The employee can keep the policy. Use the following guidelines to help you make an informed buying decision about supplemental life insurance.

Affordable Payments

First, an employee will most likely buy supplemental insurance because it is affordable. Insurance companies will offer lower rates to a group of employees. This is called group life insurance. For example, an employee making $50,000 annually may receive $50,000 of life insurance at no cost. The employer will pay for the policy. Then, the employee may have the option to buy more coverage at a much lower rate. The options can turn the $50,000 policy into a $500,000 policy. A $500,000 policy will fill the gaps and help the family when the employee die.

Provide for Family

Next, the employee will purchase supplemental life insurance to provide for the family. If you get a supplemental policy from work, try to get a guaranteed renewable policy. This is the best term policy. When the employee is sick and cannot work, the insurance company has to honor the contract as long as the employee pay the monthly payment. The family can receive the $500,000 death benefit to pay medical expenses, funeral expenses, credit cards, mortgage payments, college costs, taxes and much more. A low-cost life insurance supplemental policy can help the family.

Keep the Policy

Then, the employee purchases supplemental insurance to keep the policy for life. When buying this policy, it is essential to think about making payments for many years. Buy the policy at work that you can keep for the rest of your life. The objective is to keep the policy enforced and to keep expenses as low as possible. Find out if the policy is portable before you sign the contract. Find out if the policy will also cover you and your family.

Finally, this information is not financial advice. It is written only to inform the readers.

Should You Purchase Supplemental Life Insurance at Work?

When To Buy Life Insurance

When To Buy Life Insurance

Life insurance is somewhat opposite of automobile insurance. Rather than having high prices at a young age that reduce as you get older, life insurance begins inexpensive and becomes more costly as you age. The reason being is quite simple: with automobile insurance, the older you are, the better you are at driving which makes you less likely to need coverage for accident costs; with life insurance, the younger you are, the healthier you are which reduces the cost of monthly payments.

Due to these stark differences, it can seem somewhat confusing determining when is the right time to buy life insurance. While it’s well known that life insurance is cheaper at a younger age, does that mean that all 20-somethings should be making monthly payments for life insurance?

No, not exactly. Here are a few factors to consider before purchasing life insurance:

  • What is your situation?
    • Are you single or married?
    • Do you both work?
    • What does your savings account look like?
    • Are you planning on starting a family?
  • What stage of life are you?
    • How is your health?
    • How old are you?
    • Are you starting a business or buying a home?

After reading these questions, use your answers to determine your debt to income ratio. Using this ratio, calculate whether your savings would cover your funeral costs and remaining debt, etc. If it seems that there will be no left-over debt and funeral costs would be covered, you may not need the insurance. However, if a family is on the way, or if you’d like payments to be cheaper as you get older, it may be smart to get covered now. If it is clear that you will pass along debt to your heirs, it is time to look for coverage.

Once you’ve realized your need for life insurance, you will want to discern how much life insurance you’ll need. While some financial advisors may say you need to ensure five to seven times your salary while others say you need more, it is essential to consider your circumstances. A good rule of thumb, however, is to ensure three times your income plus debt.  Consider the following:

  • Your annual salary: multiply this over the years you want to be covered.
  • Add any fixed expenses (college tuition, etc.)
  • Subtract savings and investments that could cover other costs (such as college tuition)

It is important to remember that people’s needs change from year to year; life insurance is a valuable financial tool, although not everyone needs it at the same time. Depending on your age, family situation, income, and dependents, you will need to assess your own needs to find the right amount and length of coverage for you and your family.

 

When To Buy Life Insurance

Tips for Insurance Professionals to Remember When Working with a New Client

When interacting with a new client, it’s important to remain positive and understanding; chances are, the client is not as familiar with your company and your plans as you are. Being conscious of how you present yourself and how you engage with the client will help you establish a strong, positive rapport as well as encourage sales and continued patronage.

Customer service may not be the first term that comes to mind in association with insurance, but it is integral to present a positive, considerate image when interacting with clients. You should be polite and transparent when applicable; excellent customer service encompasses things like how promptly you return phone calls and how organized you are before one-on-one meetings as well as how intuitive you are in regards to the client’s needs and hesitations. How reliable and personable you appear directly affects how clients perceive you, and if they feel you are trustworthy, they will feel more inclined to stay with your company.

Being friendly is not enough to win over customers and earn their business, however. Demonstrate that you are empathetic to their situations and any concerns they might have so that they do not get under the impression that you are solely motivated by profit. Treating clients as individuals with unique lives and worries will not only allow you to better empathize with each person but will also promote open communication on both sides.

Rather than strictly adhering to a set script to pry information from new clients, you should aim to understand and adapt to each situation. If you fail to respond to the clients in a natural, human way, they may not believe you are genuinely supporting them. Listen to their stories, concerns, and inquiries with the intention of learning; doing this will allow you to provide better service and accommodate them according to your company’s policy.

When you are in any business for some time, you pick up the specified language, or jargon, and integrate it into your speech. While this makes it easier for you to understand your field, new clients will likely not have the same knowledge. With the goals of transparency and clarity in mind, using simple, everyday language to communicate to minimize confusion and facilitate honest conversation.

Addressing all clients like they are human beings worthy of respect is key to fostering positive relationships between insurer and client. By being conscious of the disparity of knowledge, as well as the individual situations that may cause new clients to approach your company, you will be viewed as an empathetic and genuine person who is deserving of clients’ trust and business.

Tips for Insurance Professionals to Remember When Working with a New Client

These Are the Best Family Friendly Cars in 2018

  1. Honda Odyssey, Minivan

Ranked #1 of minivans by U.S. News and by Kelly Blue Book, the Honda Odysseyis considered the best minivan in the U.S. because it affords comfortable space for cargo and any size rider. It drives like a car and is equipped with driver assist and safety features such as collision mitigation braking. Inside there is a new infotainment system and even a vacuum for quick cleanups. The redesigned Odyssey with Magic slide seats, five child safety seats, and an in-cabin camera is a reliable vehicle with a high resale value.

  1. Subaru Outback, Crossover

The respected Outback is versatile like an SUV and rated as the best vehicle for the money. Larger and sleeker than other crossovers, it rides like a family car with room for five passengers and a generous cargo area of 35 cubic feet (73 cubic feet with the back seats down). This Subaru accommodates baby seats, small children, teens, and adults without crowding anyone.

  1. Ford Expedition, Large SUV

The Expedition is ranked #1 in its group. The redesigned Expedition has the best third row of all SUVs, and like other SUVs, the Expedition can be purchased as a four-wheel-drive vehicle. (No minivans other than the Toyota Sienna have this capability). With 3.5-liter V6 engines, this SUV has 375 horsepower and 470 lb-ft of torque so that the family can pull a boat or other things.

  1. Acura MDX, Midsize SUV

Acura MDX is ranked #5 among luxury midsize SUVs by U.S. News. This stylish vehicle is particularly accommodating to older members of the family as entry is much more comfortable than climbing into a van and some SUVs. Android Auto and Apple CarPlay are now standard equipment. The cushioned seats in the second row slide forward, and the backs tilt to a comfortable angle. Acura has a smooth ride, safety features, and a quiet cabin. With its three rows for seating or storage, along with excellent fuel efficiency, the MDX makes a great family vehicle.

  1. Honda CR-V, Compact SUV

Easy to drive and maneuver, the Honda CR-V is ranked #1 among compact SUVs by Kelley Blue Book and US News as the top vehicle for smaller families and the money. Having earned a rating of five stars from the National Highway Traffic Safety Administration, the fuel-efficient CR-V has 40 cubic feet (76 ft. with the seats folded)of storage space, and senior passengers can quickly enter it. Because of its safety/driver assist system, the Honda CR-V is also rated as one of the safest crossovers.

These Are the Best Family Friendly Cars in 2018

Handy Car Gadgets You’ll Want to Have For Your Next Roadtrip

If the warm summer weather creates a sense of wanderlust in your adventurous spirit, it can lead to various road trips being planned. Before you set out on your next road trip adventure, however, you should purchase some handy car gadgets that will improve your convenience and safety while out on the open road.

Portable Jump Starter Kit

While keeping a set of jumper cables in your car will assist you in a battery emergency, they’re only beneficial if there’s another car in the area to provide you with a charge. Being out on a road trip means that you’ll encounter many solitary miles with no other drivers around to provide you with assistance should your battery malfunction. Bringing a portable jump starter kit will ensure that you can jump start your car battery on your own since it holds its own charge. Additionally, some jump starter kits, such as the Bestek Jump Starter, also features a flashlight and USB ports so that you can charge your various mobile electronic devices.

Car Safety Tool

Although it’s something that no one wants to experience, a car accident is an unfortunate reality of venturing out in any automobile. It’s better to prepare for such an eventuality rather than to hope you never experience one. In keeping with this proactive mindset, investing in a car safety tool will prove to be invaluable to you and your companions’ survival in the event of an accident. A car safety tool acts as a hammer that can shatter windshields or door windows to allow you to escape from a wrecked car. There are also blades on the safety device that can cut you free from a malfunctioning seat belt. Be sure to keep the car safety tool in an easily accessible place such as inside the glove compartment or the console between the driver’s and passenger’s seats.

GPS Keychain

While out on your road trip adventure, the last thing you want to deal with is a set of lost keys. Some clever tech-savvy entrepreneurs have realized this and invented a keychain that is Bluetooth-equipped. This GPS keychain will allow you to locate your lost keys using a mobile app that can be downloaded onto any of your mobile devices for quick and easy use.

Handy Car Gadgets You’ll Want to Have For Your Next Roadtrip

The Most Expensive SUV: The Lamborghini Urus

In December of 2018, the very first SUV of Lamborghini, the Urus, will be available for purchase. One car dealer says they expect the cars to sell out as soon as they arrive. The company, Manhattan Motorcars, sells luxury brands and has already received orders for over 60 Urus SUVs. Despite its significantly large price of $207,000 or $225,000 with all options and customizations, the model is already prevalent. With a top speed of 190 mph, there is no wonder why this 4-door, 32-valve V8 transmission has attracted new customers. In fact, a surprising 70 percent of Urus buyers so far have never owned a Lamborghini.

The Lamborghini brand is one that most buyers stretch themselves to get into, such as younger generations. Since the new model allows wealthy people living in areas with bad roads to purchase the cars without ruining them, Lamborghini hopes to attract big money buyers. The company also expects to attract new buyers due to the market’s obsession with SUVs. The Urus is set to act as the company’s anchor for cash flow and sale stabilization.

This radical change to the Lamborghini brand is expected to double the company’s annual production. At the end of 2018, Lamborghini will have a total output of around 5,000 cars, with 1,000 being the Urus. By the end of 2019, however, the SUV will account for more than half of the anticipated production of 8,000 cars. If Lamborghini sells the 3500-plus Uruses, it hopes to annually, company sales will be effectively doubled.

The design of the new SUV was contemplated, as all Lamborghini models are held to a WOW standard. To achieve their goal of creating a truly authentic and memorable experience, the company ultimately decided to design the Urus’s dashboard aviation-style. Hexagons were used throughout the design to give the car a futuristic and genuine appeal.

The vehicle’s start button can be found in the center under a red flip cover. If you are going somewhere, you better mean it! The shifter is a large handle fashioned to imitate a jets throttle and is framed by smaller levers: the left allows the driver to select one of the six driving modes (Strada–street, Sport, Corsa–race, Neve–snow, Sabbia–sand, and Terra–off road); the right activates the customizable Ego mode.

While the exotic interior design is enough to attract most, the Urus doesn’t stop there. Compared to any other SUV, this one is ridiculously fast. Lamborghini asserts that the SUV goes from 0 to 62mph in 3.6 seconds, compared to the Tesla Model X (Tesla SUV) that runs 0 to 60mph in 3.3 seconds.

To top it all off, the Lamborghini Urus is the least expensive new Lamborghini you could buy. It is also a daily driver, an unbelievably fast and safe vehicle, and it can literally drive on anything (solid). 

The Most Expensive SUV: The Lamborghini Urus