Is it a Good Idea to Sell Your Life Insurance Policy for Cash?
2012 May 14 by Peter
Thinking of Selling Your Life Insurance Policy?
Unemployment remains high and the housing market is still in the doldrums. Although the stock market improved in late 2011 and early 2012, it remains volatile. So it’s no wonder some investors are considering selling their life insurance policies for cash.
But is it a good idea? First, let’s review how one sells a life insurance policy.
Selling a life insurance policy is referred to as a life settlement transaction. Under such a transaction, someone buys your life insurance policy for a lump sum. The new owner of the policy continues paying your premiums until you die, at which point the new owner collects your death benefit.
This can provide immediate income, which may be beneficial in difficult times. But taking cash in exchange for your life insurance policy may not make as much sense as it used to, thanks to two factors. Continue reading »
Fixed Annuities Can Help Supplement Income
2012 March 12 by Peter
Understand the Difference Between Fixed Annuities and Variable Annuities
The basic premise of investing in an annuity is that it offers the potential for an income stream. However, not all annuities are created equal. There are fixed annuities and variable annuities.
An annuity is a contract with a life insurance company. In essence, you pay the company and, in exchange, you get a stream of payments for a specific amount of time or for life.
With a variable annuity, some of the money you pay the life insurance company is invested in a portfolio of stocks, bonds or other investments, and your income stream depends on the return of those investments.
With a fixed annuity, however, your income stream is guaranteed.
A variable annuity may be appealing if you need significant growth in your portfolio to provide you with income for life, but less appealing when the economy or markets are performing poorly. At those times, a fixed annuity may be a more appealing investment option, as it will provide you with a minimum amount of income every month. Continue reading »
Life Insurance and Divorce
2012 February 27 by Peter
Life Insurance Options When a Marriage Ends
When the unforeseeable occurs and a couple divorces, there are many things to consider.
Life insurance may not be front of mind in such situations – but it’s an important consideration. When negotiating a divorce settlement, it is important to specify who will own any life insurance policies you have as a couple.
Beneficiaries
Whoever owns the policy has the right to name the beneficiaries. Typically, the custodial parent is named the owner of the policy.
How long the life-insurance policy is maintained depends on the goal of the policy. Continue reading »
Retired or Approaching Retirement? Could a Fixed Annuity Help Bring Peace of Mind?
2012 February 9 by Peter
What is the meaning of annuity insurance?
Retirees and pre-retirees who fear that they run the risk of running out of cash may be good candidates for a fixed annuity in today’s volatile economic environment.
An annuity is a contract between an investor and an insurance company.
With a fixed annuity, you make a payment to an insurance company, and the insurance company makes fixed payments to you that can last for a long period or even life. In Orange County there are many independent insurance agents who specialize in annuities.
That stream of income can offer peace of mind to individuals who are worried about running out of money, because it guarantees that they will have a certain level of income whether they live to 80, 90 or 100 years of age.
Of course, no investment is without risk. For all the peace of mind fixed annuities offer, they can be a tough sell when interest rates are low and many investors are willing to take on the risk of the stock market. Continue reading »
Is it Wise to Go Without Life Insurance?
2012 January 30 by Peter
How to Get Help with Purchasing Life Insurance in Today’s Economy
As the economy continues to struggle, many Americans are cutting back. And for some, that means going without life insurance coverage. In fact, about 35 million U.S. households currently do not have life insurance. That’s the highest percentage in more than four decades, according to insurance industry research group LIMRA.
Can going without life insurance be justified?
Of course, only you are familiar with your individual financial circumstances and goals, so only you can decide if life insurance is something that’s necessary for you. Continue reading »
