Life Insurance Blog

in Uncategorized

The whole point of life insurance is to “insure” against end-of-life calamity. Some market trends and legislative activities are bringing the whole matter of affordable life insurance to the minds of people young and old.

Term life insurance is the most affordable life insurance product, month to month, and because of some demographic and lifestyle changes across the population, premiums for term insurance are right now near the lowest point they have been in 20 years. Young consumers without life insurance policies are looking with increased interest at term policies.


The insurance product is called “term” insurance because premiums are locked in for a fixed duration, or term, at the end of which coverage continues but premiums begin to rise. Customers buy term because, first of all, it is affordable life insurance. But they also are betting that either they will die during the stipulated term and the insurer will pay their heirs, or that they when the level premiums end, they will have sufficient income to continue to pay rising premiums.

Some term life insurance policyholders eventually convert their coverage to a permanent insurance product. The benefit of doing so is that the insured does not have to face ever-increasing premiums as he ages. The penalty for doing so is that the new fixed premium is larger than was the payment for the term policy. This is when a policyholder must pull up his calculator app and crunch the numbers.

Because the U.S. population continues to age, however, another kind of conversion also is becoming popular: turning life insurance into long-term care insurance. According to a Genworth Financial study, long-term care costs are rising faster than the inflation rate in all the major metropolitan areas of Florida. Genworth concluded that the average annual rate of a private room in a nursing home in Florida is now $82,000.


This month, Florida legislators established a task force and a calendar for examining just what cost savings there are for Florida seniors who convert their life insurance to long-term care plans to become Medicaid eligible. The task force will study the issue this year and report back with recommended legislation for the 2013 session.

The most affordable life insurance—term insurance—serves younger consumers well, lends itself to conversion to permanent insurance at a later stage, and in turn can morph into a long-term care benefit for people near the end of their lives. At every successive stage, avoiding calamity remains the goal.


Comments Off

March 30th, 2011
in Life Insurance,premium financing
Using a Life insurance policy to your extreme advantage will help you truly understand what infinite banking really is.  We all know there are two major strategies that can help us build wealth.
  • Individuals can increase the dollar amount of money you make by getting a better paying job
  • Or you can increase the amount of money you keep in your pocket.

The Infinite Banking Concept or Strategy is a system that helps both individuals and businesses change out money that would have been normally lost as a debt and put higher amounts of interest and taxes back into your circle of wealth building.

You must take a really close look at  the money you spend for an entire lifetime to finance their lifestyle.  The Infinite Banking Strategy can be used to purchase cars, boats, appliances, education, healthcare, and many other items that are necessary in our world.   Consider that you now have the ability to recapture the money lost to these purchases. Put that next to a funding vehicle that utilizes tax advantages through the IRS tax codes and get a guaranteed growth; That in a nutshell is the Infinite Banking Concept.  Please call today to get a more detailed proposal for this strategy.

in affordable life insurance

Though you can use your life insurance to pay off your debts, it is better to avoid using up your affordable life insurance in making the debt payments. You should first try other debt pay off or reduction methods to become free of your debts like the simple debt management plan, debt settlement or debt consolidation. However, the life insurance policy is generally used to pay off the debts of a person after his death. There are mainly three ways in which you can use your life insurance to pay off the debts.

Ways to pay off debt through life insurance

A life insurance policy can help you to pay off the unpaid debts through three main ways and these are:

1. Withdrawing money from your life insurance policy – You can use the cash from your life insurance to pay off your debts. However, you will have to use your cash value insurance policy to pay off your debts rather than using the term life insurance. In cash value insurance, the cash value grows year after year with the tax-deferred interest. Once you have been able to accumulate good cash value, you can use the amount to pay off your debts. However, while doing so, you will have to go on making the monthly premiums on the insurance in order to maintain your policy.

2. Borrowing from your life insurance account – other than withdrawing money from your life insurance, you can borrow from the policy to pay off your debts. Here borrowing is same as any other kind of borrowings. That is you can take out a loan against the built up cash value of your insurance policy. Thus, you will have to pay back the amount that you are going to borrow against your policy, otherwise the value of your policy can get reduced. However, in case the policyholder dies before paying back the amount he had borrowed, the balance is then deducted from the policy and then the remaining balance is handed over to the beneficiary(s) of the policy.

3. You can also consider life settlement option – Another way in which you can use your life insurance to pay off your debts is through life settlement. This can be your option if you either transfer or sell off the policy to a third party in lieu of a certain amount of money. If you do so, you as a policyholder may be able to get an amount more than that of the cash surrender value of your insurance policy. But, the fact is that this amount which you will receive will be less than the amount which you would have received as death benefit.

Another thing that you should know about life settlement is that the person who buys the policy becomes the policyholder. As a result, he will have to be responsible for making the premium payments. Other than this, you won’t be able to opt for life settlement unless you are a senior citizen (more than 65 years of age). The life settlement proceeds are also taxable.

Jason Holmes is a regular writer with Debt Consolidation Care and is also a contributory writer with other financial sites. His expertise is woven around various aspects of the debt industry and with his e-books he tries to impart to people the different situations and simple solutions to get out of difficult situations. Some of his works include e-books like ‘Credit Score The Quintessential Therapy for a Happy Pocket’, Take Creditors and Collection Agencies to Small Claims Court’ and, My Story- From Depression To a Smile’.

Life Insurance Info
News Letter
All Content Copyright � 2008