Life Insurance Blog

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’.

in affordable life insurance

There are more and more affordable life insurance options with all the companies vying for the business.   On top of that we are seeing people live longer than ever before.    With competition and different product lines that are designed for different lengths and flexibility,  it creates a lot of affordable life insurance options for consumers.   Term life insurance is almost a straight commodity if you have no interest in converting to a permanent plan ever.   Term rates have gone down so much it is pretty staggering.  A couple things to keep in mind is just because a company is saying that a policy could cost X doesn’t mean you could qualify for that rate.   The company who is actually showing up as the second, third, or fourth best quote may actually underwrite more favorably and end up being a better rate.

Other very affordable options are return of premium term,  which will return all premiums paid if you outlive the term.    This will cost more money than regular term, but few people ever die during the term of the policy.  It is especially affordable if you live through the term and get all your money back.   Guaranteed universal life is also considered to be  very good affordable option  and the most affordable for plans that are permanent (guaranteed to 100 or 105).  This type of plan is almost like a permanent term and lasts to 100 or so, but the premium never goes up and little if no cash value is built.


April 21st, 2010
in affordable life insurance

Cheap life insurance is what I want.  If that is what you want, this is a great time to get term life insurance.   With more companies than ever competing for your business and life expectancy increasing, the rates are at all time lows.  Obviously, some companies have had to adjust rates up  to deal with losses with the economic turbulence that we have experienced over the last couple of years.

Everybody has their idea of what cheap is, but term life allows you to buy a lot of death benefit with little money.   The variable here can be health.   If you are relatively healthy, the premiums will be more affordable than if you are unhealthy.

We will find out the amount that the client would like to shop and then we run an analysis with the major carriers.  In a matter of seconds the carriers rates will appear for comparison.    For a healthy male, non smoker, age 35 his two best rates for 1 million of 20 year term would be, Banner Life at $39.81 per month and ING at $40.95 per month.    That is pretty darn inexpensive for 1 million of coverage.   Another consideration is to look at the return of premium option.  While it is appealing to get the cheapest term, it may be a good option to get all your premiums back if you live through the term.   For that same 35 year old, he would be looking at a best rate of 117.03 with Assurity with return of premium.  Chances are he will live through the 20 year term and then have no coverage.  He might as well get all the premiums paid in to the policy, back.

in affordable life insurance

When looking at what type of life insurance to buy, it is important to marry affordable life insurance with the product that makes sense for your situation.  For example, if you have a child that is 1 years old and you decide you need coverage for 20 years, don’t buy a 10 year term.  The temptation to do that might be there, to save cost, but in the end it may hurt you.   If you go and apply for a new 10 year term at the end of the first 10 year term, you may not be insurable and certainly the premium will be a lot higher.

The first thing we want to look at is how long will you want and need the coverage.   You may want to have permanent insurance, but your budget will not allow for that.   Maybe you can do a combination of term and permanent to meet your budget and your permanent need and want.  It is important to buy the right amount of death benefit above all else.   One case recently, the client wanted to buy 100,000 dollars of whole life, when the need for death benefit was closer to 500,000.   We suggested supplementing the whole life with a 400,000 term rider to cover the additional exposure and the client agreed to that strategy.   Very often we will see a client with a plan that is not budget friendly and the plan type makes no sense.   As an independent brokerage we can shop all the carriers and all the different products.   If a consumer is dealing with a captive agent, they may get stuck with one of the products in the agents limited repertoire.


March 3rd, 2010
in affordable life insurance

When we are talking to clients the goal is to establish the appropriate amount of coverage first and foremost.   Often time, our clients will know the amount that they want to buy and if not we take them through the analysis.   Many of our clients are looking for affordable term life insurance and interested in shopping the  market.    We are an independent broker, so we are not beholden to any carrier and we shop the market for them.   This is a huge benefit to the client, so they can capitalize on the best carriers and the best rates on the market.

With term rates at all time lows, it is possible to get coverage at very minimal costs depending on age and health.   With that being said, we know which carriers will probably bear the best rates based on age and health.   Just selecting the carrier with the best rate in the quote engine can sometimes be a mistake.   For example, they may show as the best rate, but you may not be able to qualify for it.   Conversely, the company that shows up as the third best rate, may underwrite your case better and give you  a more affordable premium.

Other ways to make premiums more affordable are shortening the term length.  For example, rather than a 20 year term, we might look at a 15 year term.  Obviously, it is important to get coverage that will last as long as you need it.   We know all the different options and nuances to help consult you to find the right carrier for you.


February 18th, 2010
in affordable life insurance

ponte-vedra-florida-life-insurance2Ponte Vedra Beach, Florida –  To find the best value in an affordable life insurance policy comes from an insurance carrier that engages in a “complete underwriting” process of all life insurance policies. If your policy is fully underwritten, then the  insurance company does a great deal of research into a the prospective customers health history before a policy is issued.

Much of this information is used to figure out the likelihood that a policyholder out live a policy. Accordingly, much healthier individuals will be able to get a better rate than unhealthy individuals. Life Insurance Underwriting guides will also look at family health history in many instances, but if a certain lifestyle is designed to counter any known family hereditary health issues, most underwriters will take detailed notes.

What does a health life style have to do with life insurance?  A healthy lifestyle includes a complete list of items individuals do to stay healthy such as; exercise, eating healthy and avoiding bad habits such a tobacco use or drinking to much alcohol. Many  underwriters will also consider the nature of an applicant’s employment history as well as certain high risk hobbies. For instance, a person that sky dives is more likely to die on the job than an lawyer is, and someone who jogs regularly presents less of a risk than an active cliff jumper.  Read More Here At Referenced Article:

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