Investing in Life Insurance to Use it for Investing in the Future

If you have heard that life insurance can be an actual financial investment, you may be wondering how you can use coverage to prepare for a better future. Most people purchase life insurance for the death benefits, but some policies have additional features and benefits that differentiate them as an investment product. By understanding what type of policy to purchase and what to expect from life insurance as an investment reasonably, you can more easily determine how to set up your new coverage.

Choosing the Right Policy Type

Term life insurance is a product that most people are familiar with. With term life insurance, you select a term length at the time of purchase. Coverage remains in effect throughout the term length as long as the premium continues to be paid.  Permanent life insurance also has death benefits, but it has two additional features. First, the death benefits remain in effect throughout the insured’s lifetime. Second, the policy has a cash accumulation feature. A small portion of each premium payment is deposited into the cash account. This is an interest-bearing account so that it will increase in value over time. If you intend to use life insurance as an investment, you must set up a policy that has a cash accumulation feature.

Setting Realistic Expectations

A life insurance investment is most closely equated to a savings account, but the return is usually substantially higher. Depending on the type of policy that you set up, you may enjoy a fixed or adjustable rate of return. Even though the return is usually higher than that of a typical savings account, the return may still be lower than what you may generate through many other types of investments. The return varies by provider and by policy, so explore the options carefully.

Your life insurance policy’s cash value can accumulate to a sizable amount of money over the years. This money may be accessed to make future investments, such as to make a down payment on a rental property or to invest in a business. You may also borrow against the amount if you wish to keep the life insurance policy benefits in place. Because features and benefits vary by policy and by the provider, it is essential to compare the options before setting up coverage closely.

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Investing in Life Insurance to Use it for Investing in the Future

Checking Your Tire Pressure

Your tires are the physical connection between your car and the road. The state of this connection can determine the quality of your driving experience, and there are good reasons to make sure your tires remain in good condition.

Safety is reason number one, of course. According to NHTSA, under inflated tires lead to a variety of safety hazards including longer stopping distances and blowouts. If they’re overinflated, tires will wear unevenly, resulting in weak spots. The bottom line is that improperly inflated tires can result in unreliable performance and potentially tire failure.

Avoiding fuel waste is another important reason to monitor tire pressure. Poorly inflated tires roll over the road inefficiently, resulting in fuel waste. According to DMV.org, you can save up to 3% in fuel mileage by keeping tires properly inflated.

Maintaining the correct air pressure in your tires is pretty simple.

It’s so easy today to know when you need to check tire pressure. If your car was made in or after 2008, it’s required to have a Tire Pressure Monitoring System (TPMS). If one of your tires loses air, a warning light shows up on your dash. You can then use a tire pressure gauge on rested, cooled tires to see which tire is low on air.

Just fit the bulb over the tire’s valve stem and push until the pin causes a small amount of air to escape. As the air leaves the tire and enters the pressure gauge, a rod resembling a ruler will extend from the other end of the gauge. The number closest to the gauge is the air pressure expressed in PSI (parts per square inch).

If the number is lower than your car’s manufacturer recommends, you need to add more air. If the number is higher, you need to release air by pressing on the valve stem carefully. Let out a little air at a time and measure frequently to make sure you don’t wind up with too little air.

If your car doesn’t have TPMS, you can still check the air pressure regularly and add or remove air to keep tires performing well.

While weather and street conditions are beyond your control, the state of your tires is not. Checking and maintaining correct tire pressure will help to keep yourself and others on the road safe.

Checking Your Tire Pressure

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.

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