What makes a policy loan better than a getting a loan from a bank? Everyone is familiar with the conventional way of borrowing money from a financial institution. But,...What if there was a way for you to get instantly approved? What if you didn't need to have good credit? What if you could have flexible terms in the event you can't repay the loan in a timely manner? What if you didn't have to worry about opportunity costs?These are valid questions. Many times, borrowing money can cause financial stress. It's even worse if you're not approved to get a loan. So is there a better way?Read through this article and you'll discover what may be the best way. But let's first understand how a bank loan works. Let's say we are acquiring a car loan for a new vehicle.Bank Loan ProceduresPurpose of the loan.In order to even get a loan, the lending institution must be willing to lend money for the item you are seeking to purchase. For example, a bank will not lend money for the purpose of buying … [Read more...] about Life Insurance Policy Loan – Learn How to Make Money While Borrowing Money
Borrowing money from life insurance
What is life insurance? It is a kind of agreement between you and your insurer. According to the agreement you pay the insurance company payments, called insurance premiums every month (or annually, depending on the contract) and in case you pass away, people, who are mentioned in your policy, will be able claim money.Life insurance is the most expensive kind of insurance. According to the statistics, people buy almost a million life insurance policies every week. Those, who buy this product, know less about it than anything else they buy. Someone may think, it is a product, everyone needs. In fact, it is not quite true.Why do we need life insurance? Here are some examples, which will answer this question.Life insurance is for breadwinners, whose death would reflect in financial income of others. If you are single and have little or no debt you probably only need to consider the cost of final expenses of your funeral. Now, if you have decided that you really need life insurance, … [Read more...] about Life Insurance – Basic Concepts
Many financial advisors cast serious doubts on the investment potential of a cash value life insurance policy. It's easy to see why. According to Moshe Milevsky, professor of Finance at Toronto's York University, "policies that combine insurance with an element of investing- such as whole life and universal life-earn a lousy pre-tax return."Rather then trying to get a financial return on the money you spend on premiums by mixing investing with insurance, you should realize that what you're really buying is protection....and then seek a way to get the most bang for you buck.What about dividends?The dividends paid on life insurance policies are not the same as other types of investments. Life insurance dividends paid to policyholders result from an overpayment of premiums paid on a participating policy. The amount of dividends paid depends upon company discretion, based on its expenses and profitability in a given year. And dividends are not guaranteed! Most people are under the … [Read more...] about Is Life Insurance a Good Investment?
It can be very difficult to decide if you need life insurance. Life insurance can be an extremely onerous financial commitment and investment, and it will also last for a considerable period of time, so you should take careful consideration in deciding if it is the best way of achieving the financial and other goals you and your loved ones may have.Life Insurance PolicyBasically, a life insurance policy will cause a sum to be paid to the named beneficiary upon the death of the insured. This sum will generally be paid to the beneficiary, free of income tax. So in which instances is life insurance generally used above its alternatives? Well its primary function is to provide death benefit protection in a tax efficient way. For example, if you would like to transfer wealth from your estate to your beneficiaries you can do it through life insurance.You should now that it may still be liable to federal estate taxes. It can also be used to ensure the continuation or protection of a business … [Read more...] about Do You Need Life Insurance
Not everyone needs life insurance. The first thing to do is make sure you need it. Life insurance is really meant for your family members or other dependents who rely on your earnings.Why You Buy Life InsuranceYou buy life insurance so that, if you die, your dependents can live the same kind of life they live now. Strictly speaking, then, life insurance is only a means of replacing your earnings in your absence. If you don't have dependents (say, because you're single) or you don't have earnings (say, because you're retired), you don't need life insurance. Note that children rarely need life insurance because they almost never have dependents and other people don't rely on their earnings.Life Insurance Comes in Two FlavorsIf you do need life insurance, you should know that it comes in two basic flavors: term insurance and cash-value insurance (also called "whole life" insurance). Ninety-nine times out of 100, what you want is term insurance.Term Life is Simple to Buy and … [Read more...] about A CPA Talks About Buying Life Insurance