What CPAs should understand about premium financing Premium financing has been around for many years but it became more popular when LIBOR rates plummeted after the recession and perceived crediting rates on indexed universal life (IUL) insurance and whole life policies were relatively high. Originally, the concept of premium financing was not much different than why one might not pay off a home mortgage, even when the money is available. If one thought that money deployed elsewhere would be more productive than paying down a mortgage, then why not do so? If I’m confident I can make more in the market or my business, financially it would be silly to pay down my mortgage any faster than...
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Life insurance Life Insurance Life Insurance In general, life insurance is a type of coverage that pays benefits upon a person's death or disability. In exchange for relatively small premiums paid in the present, the policy holder receives the assurance that a larger amount of money will be available in the future to help his or her beneficiaries pay debts and funeral expenses. Some forms of life insurance can also be used as a tax-deferred investment to provide funds during a person's lifetime for retirement or everyday living expenses. A small business might provide life insurance to its workers as a tax-deductible employee benefit — like health insurance and retirement programs...
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BuzzFeed News; Dennis MacDonald / Alamy Stock Photo Greg McAtee first joined the Knights of Columbus 16 years ago, when he was 55. He was joining a formidable club, the largest Catholic fraternal organization in the world with alumni like Babe Ruth and John F. Kennedy, and it continues to have powerful political allies in 2019. He was also, though he didn't realize it at the time, becoming a pawn in an alleged scheme to inflate membership numbers for a multibillion-dollar life insurance company. But to him, the Knights were mostly just a group of nice men from his parish in Mobile, Alabama, who wore matching shirts with shield insignias. They raised money for charity, had Christmas parties...
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In the US, life insurance falls under the domain of each state. These are the laws that will protect you when you’re purchasing a policy in New Jersey, plus our list of the best life insurance providers across the state. How much does life insurance cost in New Jersey? Your premium is a product of your age, gender, driving record, occupation, hobbies, health and family medical history. We were unable to confirm whether the state you live in affects life insurance rates. However, some experts say people in states that are privy to natural disasters — like tornadoes — might pay more for coverage. During winter, New Jersey is often slammed with severe storms and blizzards, so this might...
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What Kind of Life Insurance Should I Buy? Before buying life insurance, assemble your personal financial information and review your needs. You should consider: Immediate needs at the time of death, such as final illness expenses, burial costs, and estate taxes. Funds for a readjustment period, to finance a move or to provide time for remaining family members to find jobs or better-paying jobs. Ongoing financial needs such as monthly bills and expenses, outstanding debts, day-care costs, college tuition, support for elderly parents, and retirement. You also need to take into account any assets you have, such as cash; savings; Social Security and pension benefits; other insurance, including...
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What is Participating Whole Life Insurance? Understanding Life Insurance Part 2 Participating Whole Life Insurance (PWLI) is a contract that remains in force for the insured’s whole life and typically requires premiums to be paid every year. The contract is between the policy owner[i] and the insurance company where the insurance company contractually guarantees to pay to the beneficiaries of the contract a certain death benefit upon the death of the insured; and to share with policy owners (participants, policy holders) the excess profits the company generates. This sharing of excess profits is referred to as dividends but is considered a refund of premium according to current tax...
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Saturday Selection: Debunking The Myths Of Whole Life Insurance There are more than 400,000 insurance agents in this country, and almost all of them would love to sell you a whole life insurance policy. If you buy a policy with premiums of $40,000 per year, the commission would typically be somewhere between $20,000 and $44,000 for that agent. As you might imagine, that commission can be highly motivating, especially given the median insurance agent income of $47,000. To make matters worse, many of the worst policies offer the highest commissions. As a result of this ridiculous conflict of interest, agents can often throw out some serious myths in an effort to persuade you to buy their...
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Fidelity Life insurance review This provider focused on life insurance only, offers a streamlined application, competitive pricing and help with claims. You want a trial period to ensure you’re happy with the policy. You have a pre-existing condition or want a universal policy. Expert review What types of coverage does Fidelity Life offer? Life insurance is a fundamental part of any strong financial strategy. To best suit your needs, Fidelity Life offers a variety of policies, most featuring a streamlined application process and requiring no medical exam. But if it’s variable or universal life insurance policies you’re after, you’ll have to look elsewhere. Term life insurance Term...
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Are you thinking about purchasing whole life insurance for yourself or another family member? Before you take this important step in protecting yourself and your family against financial difficulties, let’s make sure you have a solid understanding of permanent life insurance. It’s not uncommon to feel a little overwhelmed when it comes to understanding life insurance especially when it’s whole life insurance. But don’t worry! We have you covered. Before we dive into our list of the best whole life insurance companies, let’s take some time to review exactly what whole life insurance is and how it works. Do you already have a good understanding of whole life insurance? If so, click...
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