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?

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 Cars of 2018

Automobiles have been around for over 100 years, and in that short time, they’ve managed to become relatively affordable. However, much like any product or service, there are still quite a few vehicles in the world that cost exorbitant amounts of money. Considering my deep passion for cars, I figured I would highlight some of this year’s most expensive vehicles that most of us can only dream to obtain.

Rolls Royce – Sweptail – $13 million

I thought we should start the list off with the absolute most expensive car on the planet. If you’re familiar with cars, you know that Rolls Royce is synonymous with vast amounts of money. However, even the most automobile savvy person would be forgiven for not knowing just how expensive the company’s models can be. The Sweptail, however, is a bit of an oddity, in the fact that it is not a mass-produced vehicle. It is actually a one-of-a-kind model that was specifically created for an undisclosed client. The Sweptail seats two, features a full panoramic sunroof and has an interior made of wood and leather. It is a shockingly “basic” car, in terms of features and design.

Koenigsegg – CCXR – Trevita – $4.8 million

If you aren’t an automobile buff, you’ve probably never heard of Koenigsegg. The Swedish company produces high-end sports cars, and its CCXR Trevita is the most expensive of them all. The Trevita stands out, first and foremost, for the fact that it is literally coated in diamonds; technically speaking, the car is covered in a special kind of fiber that is coated with a diamond dust that allows it to shine with a silver color. It’s absolutely gorgeous. The Trevita also comes packed to the brim with features and power; boasting a dual-supercharged V8, iconell exhaust system, infotainment center and a dual carbon rear wing, the Trevita gives you a great deal of bang for your buck.

Lykan – Hypersport- $3.4 million

The Hypersport will literally blind you with its price. The car’s headlights are comprised of a whopping 240 15-carat diamonds! It also features a unique, slick design that gives the car an appearance similar to that of a pebble. It’s incredibly modern and very beautiful. The car not only features beauty, but also power, and can reach top speeds of up to 240 mph.

All three of these vehicles are all incredibly expensive and feature some of the most outlandish features on any car. This year is shaping up to be one of the greatest for car enthusiasts.

The Most Expensive Cars of 2018

The Worst Cars of All Time

The automobile is, undoubtedly, one of humanity’s most important inventions. Since the creation of the first car, engineers have worked tirelessly to improve upon their designs, resulting in better and better iterations. And although car manufacturers have created some of the greatest designs imaginable, there have certainly been some mistakes along the way. With that being said, I figured I could highlight just a few of the worst cars in history.

Overland OctoAuto

Aside from motorcycles and tractor trailers, almost every single vehicle on the road has four wheels. However, during the 1910s, when society was still figuring out the best design for cars, certain engineers felt that four wheels wasn’t enough. Milton Reeves, a pioneer in American automobiles, spearheaded efforts to incorporate a minimum of six wheels on his automobiles. His theory was that more tires meant a smoother ride. And so, he created the Overland OctoAuto. The vehicle measured in at 20 feet in length and featured eight wheels. Unfortunately for Reeves, not a single order was placed for the OctoAuto, and it went down in history as one of the biggest flops in automobile history.

Renault Dauphine

Let’s head over to France, the birthplace of the Renault Dauphine. A cheaply made car that still managed to appeal to the masses, the Dauphine was known to be a cheap, unreliable piece of junk. Its most well-known disadvantage was its speed. The Dauphine took 32 seconds to reach a speed of 60 mph.

Ford Edsel

The Ford Edsel is quite possibly one of the automotive industry’s largest failures. It is the definition of overhyped. At the time of its release, the Edsel was being touted by Ford as the next generation of automobiles. The marketing hype around the vehicle was off the charts and when the car was released, it flopped tremendously. The car’s design was hideous, it was a gas guzzler and it was far too expensive for the time. In the end, Ford lost a reported $250 million due to the Edsel.

Cars have come a long way since their creation. We want to continue to push our engineers forward so that they may further refine their designs. However, sometimes, it doesn’t hurt to look back on history so that we can avoid future mistakes.

The Worst Cars of All Time