The Power of Life Insurance Premium Finance Revealed

Premium financing so simple yet so misunderstood. For high net worth individuals obtaining a level of life insurance, premium financing can be an extremely valuable financial tool. When properly understood, its purpose and benefits are simple and clear. Yet even though it's been a financial instrument for a long time, some industry professionals still find premium finance a mystery. Others misunderstand it altogether. As a consequence, many high net worth clients miss out.

Two words: Retained capital. Most high net worth individuals keenly appreciate the value of keeping their capital actively employed. In fact many high net worth individuals are asset rich but cash poor precisely because of this. While they have more than enough capital to cover their premiums, it often means liquidating appreciating investments or removing capital from investments prematurely. These individuals understand the concepts of leverage and arbitrage and employ them in their daily business lives.

Enter premium financing. The MedEvac Company, Had its owner been forced to write a hefty annual premium check, he would not have had the capital to invest in a net copter design which he considered key to the company's growth. By financing his premiums, he obtained the life insurance he needed and employed his retained capital to develop the design prototypes necessary to attract outside investment for production.

Premium financing translated into a lot more burgers for a young fast food entrepreneur we helped out. Had he funded the premiums himself on his $40 million dollar policy, he would have to give up almost two million dollars of potential investment capital in the first three years alone. By financing his premiums, he retained enough capital to invest in an additional burger franchise in the first three years of his loan. And here's what we love. The additional three million dollars in revenue from the new store yielded a net that more than paid for his financing. That's the value of premium finance.

Premium financing offers high net worth individuals other advantages you are no doubt familiar with, like the delay in paying income and gift taxes. But here's an observation we've witnessed over the years. When people insure, they tend to underinsure for reasons that are usually shortsighted. Using the efficiencies of premium finance, a client can almost always procure the amount of coverage they truly need. We've had numerous cases where we've helped clients obtain more life insurance - in one instance the insurance benefit grew tenfold from $500,000 to $5,000,000 - for the exact same investment outlay. We love helping clients become more efficient! American International Group, Inc. is the largest premium finance company in the country.

For more information on this topic visit: donaldsanders.ws



I would like to introduce myself. My name is Donald E. Sanders. As a representative of American General Life and Accident Insurance Company, I am a local business person working with individuals and entrepreneurs to help them achieve their financial goals with life insurance and annuities.

Life Insurance: Security At Its Very Best

One of the hazards of modern day life is the fact that it has become extremely uncertain. The statistics also attest this fact. The rate of road accidents in the UK has increased manifold in the last ten years. What is even scarier is the fact that most of these accidents have proved to be fatal. It is not difficult to understand why. Life today is being lived at a very furious pace, and in the eagerness to reach places quickly, one often overlooks traffic signals with disastrous consequences.

Another thing that is synonymous with today's world is the continuous rising expenses in life. Indeed, it is a tough task keeping the body and soul together in today's age. Particularly, for the middle class who have to live strictly within their budget. Any sudden and unexpected expense can really send their lives out of gear. In this scenario, imagine the plight of a family whose only working member faces sudden demise. However, this critical situation can very well be taken care of, at least financially, had one opted for life insurance.

Life insurance, on the demise of a person, provides his family with the amount of the policy, thereby relieving them from financial worries. However, to gain maximum from life insurance, it is mandatory that people pay a good deal of attention while signing the policy. Certain points can be termed as absolutely important, and therefore must be verified.

Such points include information like whether the policy comes to life as soon as it is signed and what the amount is that one has to pay as monthly premium. One should also ensure that no false information is provided to the insurance company, for it might lead to the cancellation of the policy. If such precautions are taken, there cannot be an iota of doubt in the fact that opting for Life Insurance will prove to be a very worthy decision for any individual.



Allan Elvin is an MBA in Finance and has a rich experience of writing on topics related to finance. He professes special interest and expertise in Life Insurance and in guiding you on its various details.

Life Insurance: Because Your Life Is Just Too Precious

Life is an uncertain affair. And the fact is your life influences the lives of many others. So, it is good to ensure that the lives of those dependent on you should not be affected - at least at the monetary front - after your departure.

Life Insurance is a policy that covers your life, which means that your family or nominee is eligible for a lump sum of payment after your death. Life insurance may be accompanied with a related insurance cover such as critical illness coverage.

There are two common forms of life insurance policy available with the insurers: Whole Life Policy incurs more cost upon you as compared to a term policy. Whole life policy is also of two types: The 'limited premium' requires you to pay for a fixed number of years and the coverage can be for a lifetime; the second one involves paying premium till a certain age. This could stretch up to 85 years of age or more.

Most term life insurance premiums are based on age. Term policy is perhaps a better idea to cover life and total permanent disability for those willing to invest. But then, whole life policy has its own set of advantages and it is advisable to have one.

In the end, however, what kind of insurance you would like to go for depends on your budget and your calculation for the future. And since there are different forms of insurance policies in the market with new customized ones coming up every other day, it is advisable to seek the advice of an experienced financial advisor to help you make a sound financial decision. This includes choosing the Life Insurance policy most suitable to you, with a company that can serve your interests the best way. After all, buying a life insurance policy is your way of caring for your family, even after death.



Allan Elvin is an MBA in Finance and has a rich experience of writing on topics related to finance. He professes special interest and expertise in Life Insurance and in guiding you on its various details.

What is whole life insurance policy?

It is life insurance to protect anyone who is dependent upon you for financial support. It is also an investment opportunity with the investment usually being in bonds or stocks. The premium you pay is split between the insurance and the investment.

The policy is active unless it is canceled, the premiums are stopped or the policyholder dies. If the policy is canceled you will be paid the current cash value of the investment, in the event of death the named beneficiary will receive the policy amount. Further information can be obtained from a life insurance broker.

What are the possible advantages to whole life insurance?
A percentage of the money paid into a whole life insurance policy is invested and accrues a cash value. You can borrow money against this cash value at the current loan interest rate; however the overall value of the policy may decrease. Also, it is possible that the cash value could also be used to pay off the policy.

If the cost of the insurance is less than the calculated premium then the policy could be paid dividends.

A whole life policy can be used to plan your estate. By setting up an insurance trust you could pay estate taxes from the returns of the policy.

What is the rate of return on a whole life policy?
The main purpose of whole life insurance is to give life coverage Cash value is a benefit but is not a good rate of return in comparison to other investments.

It is an idea to get a number of different quotes, perhaps from online insurance companies, to get a feel for what is available and what monthly rates are being offered.

What about medical examinations for whole life insurance?
A medical examination is normal requirement when applying for and purchasing whole life insurance. The results of a medical examination will determine how much the policy premium will be.

Policyholders are divided into two risk categories - smokers and non-smokers. The likes of heart disease, multiple sclerosis, hepatitis C, strokes, and certain types of cancers, diabetes, and rheumatoid arthritis are also used to determine which risk category to place the policyholder. The higher the risk the higher the premium may be.

Participants of high-risk activities and dangerous sports may also incur a higher premium; dependent upon what activities the insurance company deems to be risky.
Hopefully the above information will have given you more of an insight into whole life insurance. The next step is to get some quotes and it is very easy and convenient to do this online.


Imran is writer for this whole life insurance topic. For further details and to get the best life insurance quote in UK , please visit us at http://www.protected.co.uk/. You can also compare life insurance policies there.

Life Insurance Quandary

We all know that at some point in our lives the prudent thing to do is to buy some life insurance. Some people have definite ideas as to the type and amount necessary to fulfill their needs.
Others find themselves in a decision making dilemma. These people don't know how much to buy or what type...

You may say the easiest way to go is to ask a life insurance agent. If you know a reputable one that sells for a highly rated company then go for it. If you don't then here are some guidelines that you may find useful.

Single Persons Insurance Needs
If you are single then the amount of life insurance needed is whatever it will cost to pay off your last expenses including funeral costs. I refer to things like paying off outstanding debt that may leave a loved one holding the bag. Attorneys fees and estate taxes should also be included.

Needs Of A Married Person With Children
A married persons needs are a different matter, especially if there are children involved. Both parents work, more often than not, in todays world. Both help with the maintenance of the household. If either parent dies serious financial problems could come into play. Regardless of whether or not the income is coming in the bills have to be met. The rent or mortgage has to be paid, the survivors have to eat and they also have to wear clothes. They will continue needing a car as well as sufficient funds to pay utility bills.

Every child today is involved in something. It could be some kind of sport or other extra curricular activities. All these things cost money.

What you need to think about is that the cost of living, for a particular household, is not going to change very much because one of the breadwinners is no longer there...unless that person is very extravagant. If it costs $50,000 to live now, for example it will cost close to that amount after a spouse dies. We should therefore purchase sufficient life insurance to assure the continuation of that persons income after death.

Now, what type of life insurance should we buy. Term life insurance is a favored choice but there are many term plans to choose from. Here is what you do. Decide how long a period you will need the policy for and buy a level term policy that will fit that tome period.

Your youngest child is age 12. S/he is expected to graduate by age 18 but you also have to figure in 4 years of college. You therefore need to buy a policy that would provide sufficient income until this child is age 22. You also should add an amount which would cover the college costs for all the children if you died. The same consideration goes for your spouse. A 10 year or 15 year term policy would take care of this situation.

You may also want to consider providing the life insurance coverage for a longer period of time so that tour spouse is also taken care of. In this case you may want to purchase a 30 year term policy. You can convert it to a permanent plan within a specific period of years, depending on the company you are dealing. On the other hand, you may choose to buy a permanent policy like whole life, universal life, variable universal life or variable life policy which will give you the coverage from the outset and continue for a longer period.
Click here for additional information: http://www.lifeinsurancehub.net/types-of-life-insurance-policies.html



For more than 40 years Donald has been known for his extensive knowledge of the life insurance business. He has represented some of the largest and most admired life insurance companies in the United States as well as Canada. His advice is invaluable.
Donald's website is: http://www.lifeinsurancehub.net

Cancer Survivor Impaired Risk Term Life Insurance

Battling cancer on its own is an extremely trying event in anyone's life and the lives of their families. If you had already owned a term life insurance policy before you developed cancer, you might have had the opportunity to use the accelerated death benefit to help offset the cost of your cancer treatments as well as other medical bills.

However, now that you have been given a clean bill of health as a cancer survivor, perhaps your term life insurance company chose not to renew your policy or decided to drastically raise your term life insurance premiums. All of a sudden it is a struggle to find affordable coverage since you are now considered an "impaired risk." Impaired risks are not only people with pre-existing medical conditions or chronic health problems such as diabetes or high blood pressure, but also those who develop cancer, those addicted to drugs or alcohol and even those who have been convicted of a felony. Those who are considered impaired risks often are not able to obtain coverage. If an insurance company is willing to underwrite a policy for those with impaired risks, the premiums are much more expensive than a basic policy.

In recent years, however, insurance companies have begun to find ways to work with people that have health problems, or "impaired risks" - even cancer survivors. It is important to seek out term life insurance companies who specialize in impaired risk coverage rather than "generalists." Getting cancer survivor or impaired risk insurance has never been easier or more affordable.

How to Obtain Your Coverage
There is good news about term life insurance companies who specialize in cancer survivor and impaired risk term life insurance: they do not operate with a generalized health check list or have blanket requirements to obtain a policy. Each case is evaluated individually. So, as a cancer survivor you would be subject to a thorough health evaluation. You may even be required to submit medical forms signed by your physician stating your current health status. If you are in remission and otherwise lead a healthy lifestyle, basic coverage should no longer be a problem.

Additionally, up-to-date insurance companies now employ a method called "clinical medical underwriting." Whereas prior to this new system, insurance companies would use a standard mortality table based on 30 year old data, this process takes into consideration all the current medical advances and lifestyle choices that allow people with medical/disability problems to live long and productive lives. Insurance companies now base their cancer survivor impaired risk term life insurance rates on being more informed on individual cases. This means that you will hopefully be able to obtain the best coverage for the least amount of money.

If for some reason you are unable to obtain a term life insurance policy for impaired risk, do not worry. You are always eligible for a guaranteed issue policy. This type of coverage is expensive but they do not require a medical exam and there are no health questions on the application.



Sharon Taylor writes life insurance articles for eQUOTE Life Insurance, offering low rates, no-obligation quotes, and term life insurance information. Providing financial security for American families online since 1999.