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Life and Disability Insurance Underwriter is a non profit organization and not associated with any insurance company and agency. Our aims are to provide free information with all Life and disability insurance articles that cover many of its subjects written by well known insurance experts. It is the best place to search for life and disability insurance information before making decision to purchase life and disability insurance for individual or business.
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Weekly New Publication Article Dec. 27 -2009 To Jan. 02 - 2010

The Retirement Plan: How to Prepare For Retirement

By Lee Dobbins

If you are serious about enjoying retirement, you must begin planning for retirement now. The retirement plan should keep the following in mind.

First, make a review of your finances. You must know where you are as well as where you want to be and how you are going to get there. If deep in debt chances are you are not prepared for retirement. Your retirement plan must keep in mind that you will need 70% to 90% of your current income to maintain your present standard of living.

First think of what your retirement goals are. What does retirement mean to you? For some retirement is just sitting on the porch and watching the grandkids play. Their retirement plan will then be based on this factor. For some retirement means traveling to see the world. This involves considerable expenses. For some retirement comes somewhere in between these two extremes. Knowing what you want from retirement will give you an idea to make a retirement plan.

Live a healthy lifestyle now to enjoy retirement in the future. It may be the right time now to lose those extra pounds or to quit smoking. If you are not healthy and energetic when you retire, frugal spending and living habits won't mean a thing. If your employer provides a retirement plan ask for an explanation of this plan. Find out if you can contribute something and if your employer provides matching funds.

Speak with your spouse about his/her retirement plan. See what benefits you might be entitled to receive. Thoroughly understand any consent forms or waivers you might be required to sign. The employer must regularly provide an individual benefit statement. This should show the amount that is owned by you. Thoroughly review this statement.

Opening an IRA might be a good idea. Almost all Americans can open an IRA if they have earned income. An IRA can be a Roth or a traditional IRA. Your bank can tell you how to open an IRA. Once opened contribute the maximum amount every year to the IRA.

Each year about 3 months before your birthday you should receive a social security statement. In making a retirement plan, review this each year.

If you are near retirement age, you will need to discuss retirement plans with your spouse. You might have different plans and need to make some sort of compromise. Your family must know your retirement plan as well as other long-term goals that affect them.

It is frustrating to have time and nothing to do with it. Think about what you want to do with your retirement. Whether you need life insurance or not in your retirement plan, it is a good idea to determine its benefits. This is true especially if your family would be left with huge debts or no source of income if you were to die.

See if you need long term care insurance. Though nobody likes to think about being with a major illness that can wipe out all savings, this is a possibility as you get older. So evaluate your need for long-term care insurance.

The above suggestions may not be able to prepare you for retirement fully. However, they are meant to help you make a retirement plan and retire peacefully.

Get the latest on retirement by visiting http://www.retirementviews.com - a website that offers tips on retirement communities, retirement savings and retirement plans as well as ways to stretch your retirement income.

Article Source: http://EzineArticles.com/?expert=Lee_Dobbins

Weekly Past Publication Article Dec. 20 -26 - 2009

Waiting Too Long to Apply Or Too Long to Appeal Will Ruin Your Social Security Disability Claim

By Kenneth L. Hardison

Waiting Too Long to Apply

Once you, through consultation with your doctor(s), have determined that you may be unable to work for a period of 12 months or more, you should file for benefits immediately. You could risk losing benefits to which you are legally entitled by waiting longer than necessary to apply.

If you are eligible to receive Disability Insurance Benefits, you can only recover retroactive benefits for the 12 month period prior to submitting your application for benefits. Therefore, if you wait more than a year from the date you stop working to apply for benefits, you risk losing more benefits with each month that passes.

Depending on how much you have paid into Social Security over the years, this could result in a loss of thousands of dollars per month. If you are eligible for Supplemental Security Income, you are only eligible to receive benefits from the time of your application or the month after.

Therefore, it is especially important that you apply for benefits as soon as possible. Every month that you do not apply, you are losing much needed back-benefits.

Waiting Too Long (or Failing) to Appeal

If you have already applied for Social Security disability benefits and you have been denied, you most likely received a letter notifying you of this denial. Towards the end of that letter, there is a paragraph telling you that you have the right to appeal your case. This paragraph states that you have 60 days from the date of the letter to appeal your claim.

If you fail to file an appeal on time, you may have to start the application process over from the beginning. This also means you will have to go back to the beginning of the waiting list. You may also permanently lose the right to much needed back benefits. You should appeal as soon as possible after consulting an attorney regarding your appeal rights.

This article has been prepared for informational purposes only and not as legal advice. The reading of this article does not constitute an attorney-client relationship. An attorney-client relationship does not begin until the attorney is hired to represent your claim in writing. Please do not act upon any information read within this article without first seeking legal counsel within your state.

Kenneth L. Hardison is the Senior Partner at Hardison & Cochran d/b/a Hardison & Associates, a personal injury law firm headquartered in Raleigh, North Carolina. Being a believer in education of one's rights, Mr. Hardison authored the book Seven Fatal Mistakes Victims of Accidents Make in North Carolina and How to Avoid Making Them.

To receive the book free of charge, please click here

Hardison & Associates

Weekly Past Publication Article Dec. 13 -19 - 2009

Life Insurance and Your Business

By Jorge Herrera

Most of my articles are focused to personal financing, because it is where the Infinite Banking Concept offers the easiest applications and not everybody owns a business.

Although we look at interest and charges and taxes as business expenses, and we can deduct most of them as the cost to do business, we as business owners can harvest huge benefits, when we combine our normal business operations with the banking capabilities that the IBC (Infinite banking Concept) provide us.

One of the main reasons we take on a business structure is to be able to deduct many expenses and for that reason pay fewer taxes than an employee.

Everything we do is financed; no matter if we are an individual or a business, so if we have to pay interest for the use of the money, then why not pay that interest to ourselves? And business owners are notorious for not treating the business capital (money) as a business.

Business owners are much disciplined at paying the loans and using borrowed money very efficiently, but they do not pay attention at the business own money being managed efficiently so it generates profit.

Leverage is a beautiful concept, and using somebody else's money to generate profit is good business, but that implies paying interest to someone else to use their money and that makes the business operation more expensive.

What if you could capitalize and create a pool of money that you can use to finance some of the business operations, at the least, you would have an option of using your money or somebody else's money and that will put you in a position of strength.

There are many applications where using your pool of money will allow you and the business to improve efficiency and that will generate profits and cash flow. There is a lot of money that can be recaptured while leasing vehicles or equipment; financing inventory will provide a real cost that is overlooked on the sitting equity represented by that inventory.

Other uses are: It can help retaining key employees; it can ensure the continuity of a business by providing protection and buy-sell purchase options. It can be used to fund projects and provides a safety net for bad economic times like Walt Disney and J.C. Penny did.

While there are many ways you can set up a personal banking system or create a pool of money to benefit yourself and your business, depending on the particular purpose, The Infinite Banking Concept and permanent life insurance will be your best bet.

I am a practitioner and very passionate promoter of the "Infinite Banking Concept". Close to four years ago I opened my eyes and ears to the limited knowledge of money management by the use of Whole Life Insurance and when I realized how powerful and beneficial to the average American it was, I decided to open my mouth to promote it. I will use all my training and team resources to help you find the money that is already in your cash flow, to implement your personal banking system.

http://InfiniteBanking.com

http://Bankonyourcashvalue.com

Article Source: http://EzineArticles.com/?expert=Jorge_Herrera

Weekly Past Publication Article Dec.07 - 18 - 2009

What is Critical Illness Insurance Cover?

By David H Thomson

Insuring yourself against the bad things that may happen in life may not be just a question of taking out life insurance. Many people have life insurance but never have to claim on it but many suffer from an illness or medical condition at some point in their lives which they may not have any cover for. Life insurance insures your life and not any serious illnesses you may develop. To get this latter protection you may need to consider critical illness cover.

This kind of insurance may be taken out as a stand alone policy or in tandem with life insurance. The way that it works is simple:

You take out a critical illness policy for a specific sum of money.
You are diagnosed with a critical or serious illness or condition.
If the illness you have is covered by your policy then you may make a claim.
Your insurance company pays you the amount you were insured for.
You keep the money even if you survive your illness and make a complete recovery.

Taking out critical illness cover may be worthwhile for many people. Ask yourself, for example, how you might cope if you contracted a serious illness and had to take a long period off work or found that you were unable to work at all any longer? Even just a few months recovering from this kind of illness may seriously affect your finances.

Although some people think that life insurance may be enough cover for them it isn't set up to help in these situations. If you die as a result of your critical illness then your life cover may be useful then. Many people may, therefore, look at critical cover as an option for the interim to get more protection.

So, with this kind of protection behind you, you may at least rest easy on the financial front. You may, for example, find that your critical illness policy allows you to carry on paying your mortgage and everyday living expenses until you get back on your feet again. Or it may enable you to adapt your home, say if you need to sue a wheelchair. This may not be one of those times when you want to be worrying about money, after all.

Before choosing critical illness cover it is important to look at the terms of the policy before you take it out. If you have had problems in the past (often referred to as pre-existing medical conditions) then you may not qualify for cover for that particular illness or condition.

Looking for policies that cover as many conditions as possible may also be useful. The point here is that you may not know what, if anything, may happen to you so getting the broadest cover possible may well be a consideration worth looking at. It may also be worth thinking about shopping around for critical illness insurance as costs vary a lot in the sector.

Getting this protection may be important to you but you may not have that much cash spare for a policy. A life insurance specialist website may be useful to you in your quotes search. These sites may be able to help you drill down to find the most competitively priced policies for critical illness cover and may also be able to show you policies that you may not have otherwise known about.

David Thomson is Chief Executive of BestDealInsurance a completely independent specialist broker dedicated to providing their clients with the best insurance deal. They offer great value life insurance as well as, critical illness and income protection, ensuring that their clients have the protection they need, without leaving a hole in their pocket.

Article Source: http://EzineArticles.com/?expert=David_H_Thomson

Weekly Past Publication Article Dec.01 - 2009

Quizzes and Calculators - Personal Finance Help

By Brandon Schmid

I think it's time to go back to school. Well, you don't actually need to jump on the school bus, get a new school bag, lug around about 10 pounds of paper and highlighters and dodge spit balls, but I think it is time for us to get some personal finance help. Here is a short quiz that you can zip through to discover if you know your finances.

1. It's always better to choose the longest amortization term with your mortgage because you'll pay less each month.

a: True
b: False

2. There's actually no difference on the amount of interest you'll end up paying over the length of your mortgage if you contribute once a month or twice a month.

a. True
b. False

3. What is a dividend?

a. A cash rebate traded among lenders
b. A payment of additional shares of stock to stockholders
c. A monetary bonus for employees
d. The opposite of multiplication

4. What is the best financial tool at your disposal?

a. Planning a household budget
b. Using a computer for your taxes
c. Always keep your checkbook in balance
d. Seeking personal finance help from a professional

5. Do you know what as asset is?

a. A car, laptop or clothing
b. It is cash, property or stocks
c. Anything owned that has exchange value
d. All of the above

ANSWERS:

1. b - False

It's incredible how much interest you end up saving if you lessen the amount of time over which you pay a mortgage. Try making a larger payment each month so you can save save thousands upon thousands of dollars. The more quickly you can pay it off, the better.

Amortization period Monthly payment Total interest over the lifetime of the mortgage

35 years $565.25 $137,408
25 years $639.81 $91,940
20 years $712.19 $70,925

Amount saved with a shorter amortization period -- $66,483

2. b- False

By making your mortgage payment once every two weeks or twice a month you will eliminate your mortgage much faster. In fact it ends up being an extra payment per year. If you are more of a number person, this chart will create a little better understanding and provide a little personal finance help.

3. b - A payment of additional shares of stock to stockholders

A lot of people who dabble in stocks only choose stocks that pay in additional shares to stockholders. Imagine you had taken dividends as your stock option when Microsoft or Apple were in their infancy? Plenty of investors did and made a fortune.

4. a - Planning a household budget

All of the options in question are important financial aides to use but the most important one is planning a household budget. It is wise to understand where all of your money is headed and how much remains to spend and save. Always make a household budget if you want to keep track of your finances.

5. d - All of the above

This one may have fooled you but an asset by definition is 'anything owned that has exchange value'. In short an asset can be anything. Certainly many assets are better investments than others (like property or stock options) but even the slow old laptop that your parents bought for you when you headed off to college is an asset.

I trust this quiz was fun and gave you some of the personal finance help you deserve. You have to stay on top of your cash and learn as much about your finances as possible. The more informed you are chances are you will achieve your financial goals. I know you have already created a number of financial goals.

Cheers until next time!

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Article Source: http://EzineArticles.com/?expert=Brandon_Schmid

Weekly Past Publication Article Nov. 24 - 2009

Pros and Cons of Child Life Insurance

By Denise M

The death of a child is a subject few people want to think or even talk about. It is always thought of as something that happens 'to others,' but the truth of the matter is that this is not so. Deaths do happen and children do die and it's up to the parents to sit themselves down and talk about how they will handle this situation and what measures are being taken to ease the process. This could include reserving a family plot for burial or planning on how to pay for a funeral. An unpleasant task but, one which every parent should force himself or herself to deal with. One way of dealing with burial costs and funeral expenses is to take out a life insurance policy for your child. Most families only insure the adult members but it may be time to revisit your financial plan and include the younger members of your family as well.

Child life insurance is a huge business in the United States. There are several companies that deal exclusively with these types of policies. It is therefore important to understand why you need insurance and how the different types of policies work lest, you get carried away by some aggressive sales pitch or insistent insurance agent and, end up with a policy that you regret later on.

The two different types of insurance policies available for children are term life and whole life. A term life policy implies insurance with only death benefits. If your child dies within the term chosen (anywhere from one to thirty years), the death benefits will be paid out immediately but if your child outlives the term, the entire amount is forfeited. Term life insurance is a relatively inexpensive choice and most parents could easily factor in the monthly payments into their financial plan. Whole life insurance on the other hand includes the death benefits as well as a cash value component. This cash component can be withdrawn (after a period of time and with certain restrictions and applicable fees) or stand as collateral for other loans, thus making whole life insurance into an investment vehicle as well. Whole life also provides coverage for the entire life of the policyholder and is therefore also much more expensive in terms of premium rates. Purchasing a whole life policy for your children can be considered a forced investment (the cash value can be later used to pay for their education for example) but would require a serious commitment from the parents with regards to budgeting their monthly expenses.

There are many people who insist that buying insurance for your children is money down the drain. Insurance is a way to provide for the family in the absence of an income or care of the wage earner or homemaker in a household. Since children do not earn an income, they feel that there no need to spend on the eventuality of their death? Well, there are many reasons to do so. When you purchase a policy for a child at a young age, and if they fall ill later, they are already insured. They won't have to undergo another medical exam that might lead to higher premium rates or even non-eligibility for insurance. Experts also suggest treating insurance as way to save for your children. Yes, there may be other more lucrative ways to invest the same amount of money - stocks and mutual funds for instance but these are subject to market risks and may lead to future losses. With an insurance policy, you have a fixed savings amount that your child can use when he or she really needs it (for college or other such expenses). Finally, an insurance policy takes care of the burial costs and funeral expenses of a child. This will come as a blessing to parents who would otherwise be ill-equipped to handle the extra strain of sourcing out funds, if no protection has been planned for. In this stress can be avoided for the grieving family members.

The matter of child life insurance policy is a difficult decision to make but in doing so practically and logically, you will save yourself a lot of financial grief later on. Before you finalize on any plan though, meet with a qualified financial planner and review all your investments, assets and long term financial needs to come up with the best solution and policy for all members of your family.

About AccuQuote: AccuQuote is a leader in providing term life quotes to people across the United States. In 1986 it began operating with a single goal: to make the process of buying term life insurance as easy as possible for its customers. Their experienced professionals consistently deliver the most affordable term life insurance rates by comparing thousands of life insurance policies from dozens of top-rated carriers.

Article Source: http://EzineArticles.com/?expert=Denise_M

Weekly Past Publication Article Nov. 18 - 2009

Understand The Seriousness of Planning Investment For Your Child's Future

By Dipendra Nathawat

One of the major responsibilities which every person do take seriously is the responsibility of their children. Every parent wants to give the best possible future to their children. It is a normal human psychology of securing the uncertain future. Parents usually try to give the best possible life to their kids especially in term of education. They also have to save money for the future requirement of their children like college education their wedding and also they need to make sure that the other obligations are also taken care of. Most parents would agree with the idea of planning investments for securing the future for each of their children. The purpose of Children's Future Planning is to create a corpus for foreseeable expenditures such as those on higher education and wedding, and to provide for an adequate security cover during their growing years when the expenses are at a higher end seems to increase with every passing day.

Like most parents, you might be saving regularly to ensure a safe tomorrow for your child. However, savings alone is no longer enough. One very practical way to achieve an investment goal for children is to invest regularly and systematically. This will help you to create a corpus which will be good enough to take care of your requirements. When you save, the value of the rupees diminishes, whereas when you invest your earn interest on your capital and this way you grow with the growing inflation to strike an equilibrium. For example: when we think of giving our children the best in terms of education and a bright future.

We need to consider that the increase in the cost of education is alarming; there is a need to plan investments rather than depending upon the current savings and on the current income for funding education. In other words, rather than starting to save just a few year before the education expenses occur, it is much better to follow a disciplined approach. Failing which, you may have to compromise on the type of education and future your children will get. This will also decide the kind of future that you and your children will go through. 'Inflation' or a general rise in prices and can also termed as the most important factor that affect your contribution towards your future. None of the areas like education, marriage or even one's lifestyle are left unscathed by rising prices. Inflation is something that is unavoidable.
Hence it is necessary t that every parents do take into consideration the affect of inflation while providing for their children.

However, if you have an investment plan in place, this target can be easily achieved. The investment plan should be such that it automatically takes care of future requirement and provide you with enough capital to cruise through the challenging times ahead. Understand one thing; don't simply dream for a bright and comfortable future ahead if you are not planning properly at present. You just need a simple discipline to fulfill your dreams. Even a regular SIP can do wonders in terms of saving and investment. Children and their right grooming is a task of highest "priorities" for every parent and thoughts like "only the best for my child" are rather common. To turn these words into realities you need to take step towards securing your child's future and providing him with really the best. If you are not very informed regarding the investments which you need to undertake don't be tensed, you can any day contact Godmind Advisors online for any help required. It is your efforts that can make a difference to the world around you.

Dipendra Nathawat- Godmind Mutual Fund Advisor.

Advisors provide ' Godmind resourceful presentations ' and articles to all visitors. Ultimate place for mutual Fund Advisory services and investment services. Mutual Fund Advisors

Weekly Past Publication Article Nov. 10 - 2009

Unemployment Insurance Facts

By Robert McKnight

Because of the increasing necessity to protect your home from foreclosure you are in a position of having to seek out information; you need to know the unemployment insurance facts. Unemployment insurance may be the protection you are searching for, but you have to be sure.

Here are some of the basic unemployment insurance facts for you to consider.

Unemployment is Rising and Increasing the Need for Unemployment Protection

Unemployment in the United States is increasing each and every month as nearly two million jobs were lost in the first 11 months of 2008. More jobs are expected to be lost in 2009 as projections are of another two millions jobs to vanish in the upcoming year.

Facing the challenges of unemployment requires planning ahead. There are many ways to get through the tough times caused by the loss of your job. Most people attempt to put away money in their savings account for just such an occurrence. This is one type of protection, but it can be difficult to do and unemployment for a couple of months can really cripple your savings. Unemployment insurance can give you added protection through these times at an affordable cost.

Government Unemployment Assistance May Not Be Enough

The average pay out per month for state unemployment assistance is only $378. While this could come in handy and does not cost you a monthly premium, you have to decide if it will be enough to help you out with your mortgage and other monthly bills.

The Unemployment Insurance Market is Growing

This means you as a consumer now have available to you more complete and flexible coverage options and at better rates. The market is also reaching far into the online insurance industry and allows for you to seek out providers and compare their rates and policies.

Unemployment Insurance Rates Are Straightforward

Compared to other lines of insurance such as life insurance and car insurance, the premiums for unemployment insurance are not as complex. Unemployment insurance rates are based upon the amount of coverage you are seeking. They have nothing to do with your credit score, medical history (unless you also get disability insurance) or driving record. There is no magic formula to calculate your premiums-everyone is equal and you get what you pay for.

While there is still more to learn about unemployment insurance rates, you now have a basic understanding of how this type of insurance works and how it may help you out in tough financial circumstances. Unemployment insurance can be an affordable and practical way to protect your home in these difficult economic times, though you should not go into the transaction blindly.

Article Source: http://EzineArticles.com/?expert=Robert_McKnight

Weekly Past Publication Article Nov. 04 - 2009

Whole Life, Term, Or Universal Life Insurance - How to Determine What's Best For You

By Will Barnes

A whole life insurance policy covers you for your entire life. Your death benefit and premium in most cases remain the same. Whole life also builds cash value, which is a return on a portion of your premiums that the insurance company invests. Your cash value is tax-deferred until you withdraw it and you can borrow against it.

A whole life insurance policy may be used as a part of your estate planning. Consequently, whole life insurance is a good choice for you if you want to ensure that you have a life insurance policy in place for your entire lifetime and can comfortably afford the premiums, of if it fits within the framework of your estate or retirement plan.

While whole life insurance is designed to provide coverage on the insured for the insured's entire life as long as the premiums are paid and the policy has not been surrendered, term life insurance provides coverage only for a fixed period that is stated in the policy. It can be for one year or up to thirty years. Term insurance premiums are extremely affordable for a person in good health up the age of fifty. After that age, the premiums start to get progressively more expensive. Term should be purchased if you only need insurance for a specific period of time, such as if you want an outstanding fifteen or thirty year mortgage balance paid off in the event of an untimely death.

Universal life is a type of flexible permanent life insurance offering the low-cost protection of term life insurance as well as a savings element, like whole life insurance, which is invested to provide a cash value buildup. The death benefit, savings element and premiums can be reviewed and altered as a policyholder's circumstances change. In addition, unlike whole life insurance, universal life insurance allows the policyholder to use the interest from his or her accumulated savings to help pay premiums.

Universal life insurance was created to provide more flexibility than whole life insurance by allowing the policy owner to shift money between the insurance and savings components of the policy. Premiums, which are variable, are broken down by the insurance company into insurance and savings, allowing the policy owner to make adjustments based on their individual circumstances. For example, if the savings portion is earning a low return, it can be used instead of external funds to pay the premiums.

Unlike whole life insurance, universal life allows the cash value of investments to grow at a variable rate that is adjusted monthly. As an example, the Indexed Universal Life may base the performance of its cash values on one of several indices, including the S & P 500 or the Dow Jones Industrial Averages. Moreover while it provides an opportunity for growth, it has guaranteed returns and provides considerable stability. In that it provides both growth potential and a safety net, it is excellent for college planning or retirement supplemental planning.

Keep up to date with timely financial tips and subscribe to the newsletter. Visit http://www.yourinfo.blogspot.com Will Barnes is a financial and personal growth consultant based in Illinois.

Article Source: http://EzineArticles.com/?expert=Will_Barnes

Weekly Past Publication Article Oct. 28 - 2009

Why Long Term Disability Insurance is Important

By Joseph Devine

The average American is aware that there are a number of insurances that are necessary to have throughout the majority of their lives. These insurances are thought of as completely essential and failing to apply and purchase them is a sign of foolishness and disregard for the proper functioning of society and the family unit. The types of insurances most Americans feel are important are automotive or motorcycle, medical and life insurance. But while these insurances are definitely vital in protecting individuals and their families, there is another type of insurance that is often glossed over. This type of insurance is called long term disability insurance.

Long term disability insurance is very important for individuals who work in professions that expose them to dangers. Millions of people are injured on the job every year. Most employers have worker's compensation insurance in order to pay for initial injuries, but many workers and employers fail to think of the long term effects of disability caused by injury. The main purpose of long term disability insurance is to provide income reimbursement for individuals whose disabilities cause them to lose their livelihoods.

While the likelihood of long term disability may seem not worth the monthly fee for this type of insurance, the truth is surprising. According to the 2007 Disability Status Report, 21.2 percent of full-time workers in the United States are disabled. A good deal more are not able to work full-time because of their injuries.

What Long Term Disability Insurance Can Offer

Disability insurance can allow you to continue to provide for your family even after you have become disabled. Most people who experience long term disability are unable to work for an average of 2.5 years. Any length of time in which an individual can not receive an income is tough, but years without any form of income can be tragic for families.

This insurance can entitle individuals to anywhere between 45-60 percent of their lost wages. In some instances, insurance companies will continue to support disabled individuals until the age of retirement.

Many workplaces offer some type of LTD insurance coverage. But individual coverage can also be obtained without relation to an employer.

LTD insurance just may be the coverage that will truly protect you and your family in the long run.

To find out more about LTD insurance and what an insurance company should give back to disabled patrons, visit Indianapolis area lawyers.

Weekly Past Publication Article Oct. 21 - 2009

Tax Exempt vs Non Exempt Universal Life Policies

When is the Best Time to Buy Universal Life Insurance

Understand The Benefit and Riders of Universal Life Insurance

Understand Life Insurance Surrender Charge

As we mentioned in previous articles UL plans are unbundled, the various components of the plan such as insurance charges and earned interest can each be isolated and quantified. Consequently, they are much easier to understand and to explain than traditional bundled permanent life insurance products. In this article, we will discuss the surrender charge in the universal life policy.

The surrender charge is the difference between the accumulated fund and the cash value accumulated in the insurance policy that the policy holder can access at any time, often called cash surrender value.
Surrender charge schedules are different between insurers and between the UL plans available from each insurer. Some plans contain a very heavy level of surrender charges that apply for a lengthy period of time of more than 10 years. These charges serve to artificially suppress the cash values of the policy. Other plans have low or no surrender charges at all.
Therefore, if policyholders who may want to access the cash values of the policy early in the contract will prefer to have lower surrender charges in their plan.
Higher surrender charges are not necessarily a negative for all policyholders. Heavy surrender charges are ideal for those policyholders using their UL plan as a means of sheltering funds from tax because:

1. Using low early cash values provides the means for the pricing actuary to inflate future cash values through investment bonuses, thereby enabling much larger cash values in later years.

2. Surrender charges are used to suppress cash values and cash values are usually compared to a test policy during exempt testing. Therefore, the policyholder can deposit larger amounts into the UL plan in the early years and shelter more funds for a longer period of time. For more details, see the Rules and Regulations section later in this course.

Weekly Past Publication Article Sept. 24 - 2009

What is Investment Bonus In Universal Life Policy?

UL plans are unbundled, the various components of the plan such as insurance charges and earned interest can each be isolated and quantified. Consequently, they are much easier to understand and to explain than traditional bundled permanent life insurance products. In this article, we will discuss the investment bonus in the universal life policy.

Investment bonuses are special rider guaranteed by the insurance companies for UL policy that does not exist in any other types of life insurance. As insurers are being forced to increase their COI charges to maintain product profitability, another way to make UL products more attractive for clients is to add or enhance investment and interest bonuses.

Since there are many different approaches to investment bonuses, understanding the interest bonuses of the UL plans before purchasing universal life insurance policy is essential because it will help you to determine how much fund is needed and the condition that the maximum investment bonus will be paid to your policy.

In fact, the size of the investment bonus paid varies from one UL product to another. The basic plans pay an additional percentage when the bonus is credited, while other more complex plans pay varying amounts depending on the credited rate in effect at the time of the bonus. Generally, a sliding scale formula is applied so that the higher the credited rate is, the higher the interest bonus will be.

A surrender bonus is another feature in the UL plan that pays a bonus to the policyholder if they surrender the plan. It is not paid on a partial surrender or at death. It could be considered a refund of COI charges since the bonus is ordinarily equal to a percentage of the accumulated COI charges to date.

Weekly Past Publication Article Sept.-17-2009

The Advantages and Disadvantages of Universal Life Insurance

As we mentioned in previous articles, UL plans are unbundled, the various components of the plan such as insurance charges and earned interest can each be isolated and quantified. Consequently, they are much easier to understand and explain than traditional bundled permanent life insurance products. In this article, we will discuss the tax advantage of the universal life policy.
There are many factors that universal life policyholders must consider when deciding which investment options to choose within a UL plan. Guaranteed interest accounts, for example, are less risky than indexed accounts which have a larger potential rate of return.

1. Advantage
a) Most UL plans allow the policyholder to allocate deposits in a way that matches their risk philosophy. Such a plan may change its investment allocation as the policyholder gets older, negating the need for the policyholder to monitor the UL investment mix to ensure that it is consistent with the policyholder's investment philosophy as that changes.

b) Tax-advantaged status
Investments that invest in the insurance company's general funds, have advantage of preferred tax status, no matter which outside index is linked to mutual fund accounts, if the actual funds is invested in the general fund of the insurance company, they will not be subjected to annual taxation. If the client would like to invest outside of the company's general fund, many insurers have segregated funds attached to their UL contracts and of course, any investment return of these funds is taxable annually.

c) Depending on the type of fund, the income may benefit from tax preferred status if the growth in the fund can be attributed to capital gains or dividends.

d) Used as a carrier fund or shuttle account to automatically receive proceeds from the sheltered accounts should the plan become non-exempt and the funds must be refunded.

e) Non-sheltered investment accounts allow a policy to become paid-up early, often as quickly as with one deposit.

f) If the UL plan can be registered, a non-sheltered account becomes a sheltered account as, once registered, it forms part of the policyholder's 401k or RRSP plans.

g) Investment returns accumulated in the universal life policy is tax free because they form part of life insurance, if payable to beneficiary upon the death of life insured.

2. Disadvantage
a) Funds invest outside of the company's general fund, many insurers have segregated funds attached to their UL contracts and invest outside of the company's general fund. Any investment return of these funds is taxable annually.

b) Limited choice of investments.

c) Investment return of funds withdrawn from universal life insurance policy are taxable.

Weekly Past Publication Article Sept.-10-2009

Understand Investment Options of Universal Life Insurance

As we mentioned in previous articles, UL plans are unbundled, the various components of the plan such as insurance charges and earned interest can each be isolated and quantified. Consequently, they are much easier to understand and explain than traditional bundled permanent life insurance products. In this article, we will discuss the investment options of the universal life policy. In fact, with the policy holder becoming more and more sophisticated, companies offering UL are increasing the number of their investment options to reflect the various investment types found outside of insurance policies. Here are the two main types of investment options offered within most UL insurance policies:

1. Guaranteed Investment Accounts
These type of accounts are available from daily interest accounts to 10 or 20 year guaranteed interest accounts. They appeal to risk-averse clients who would like to see a steady guaranteed growth within their UL plans without worrying about the fluctuation of the stock market. They are much less risky than Indexed Accounts but they also offer less potential return.

The guarantee may be that the return within the UL will be no less than:
a) 80% of the return of the 5-Year government bond
b) Equal the 5-Year government bond less two percent
c) 90% of the return of the 5-Year government bond less one percent
In fact, most UL contracts may guarantee that the GIA return will never be lower than a certain amount, say 2%.

2. Indexed Accounts
The performance of these funds are usually linked to the performance of an outside index or mutual fund. They offer the policyholder the opportunity to participate in more aggressive and riskier investment types. Performance can be linked to:
a) The S&P 500 and other stock market indexes
b) European, Asian and Australian Index accounts or international index accounts that are tied to the performance of some type of world index.
c) Some indexed accounts use the return of particular mutual funds as the outside index.
The ways in which the return for indexed accounts is linked to the outside index counterparts also vary:
a) The contract may state that the return will be equal to the return of the outside index, less a percentage per year. For example, the return for a S&P 500 index account may be equal to the return of the outside index, less a certain percentage.
b) The contract may specify that the return will never be less than the return of an outside index, less a management fee. For example, an American Index account that guarantees its gain will be no less than the return of the S&P 500 less 2%.

Weekly Past Publication Article Sept.-03-2009

What is Minimum & Maximum Premiums in Universal Life Insurance?

As we mentioned in previous articles, UL plans are unbundled, the various components of the plan such as insurance charges and earned interest can each be isolated and quantified. Consequently, they are much easier to understand and explain than traditional bundled permanent life insurance products. In this article, we will discuss the minimum and maximum premiums of the universal life policy.
Most companies place contractual restrictions on the minimum and maximum deposits they are prepared to accept in the early years of a UL plan. As a policy holder, you have the right to choose any amount of premiums between the minimum and maximum premiums range. Generally the lower the minimum premium and the higher the maximum premium, the more flexible the UL plan is with respect to funding options.

1. Minimum premium
Many insurance companies allow only minimum premium paid as long as the premium is enough to cover the cost of insurance. Some companies apply the minimum premium restriction only for the first year of the policy. Others require that no less than the minimum premium must be paid in the first year and at least two times the minimum premium must be paid after two years. Yet others require that at least five times the minimum premium must be paid into the plan after five years. Of course, if the first year deposit is greater than five times the minimum premium, no future deposits would be contractually required.
Under universal life options, the policy holder can make a large initial premium and does not need any additional premiums again as long as the investment funds in the policy are enough to cover the insurance cost. In Fact, a higher minimum deposit requirement forces the policyholder to put more money into the plan in the early years to build up a fund value within the plan. This is the obligation of the insurance company to inform you when the additional premium is required, usually caused by depletion of investment fund in the policy.

2. Maximum premium
Maximum premiums are usually only a factor in the first policy year. In subsequent years, usually the only restriction is that the fund value or cash value of the plan be kept below the exempt line. Therefore, beyond the first year, maximum policy deposits vary with many factors such as credited rates, and past deposits as long as they do not force the policy to become non-exempt.
In fact most companies link a taxable side fund to their UL contracts. They are therefore, usually able to accept much larger deposits since any funds that are over the maximum are placed into this side fund where growth is taxed annually. When the accumulating fund drops below the exempt line, many of these plans automatically transfer dollars from the side fund to the policy fund, thereby maximizing the tax sheltering aspect of the plan in the process.

Weekly Past Publication Article August -27-2009

Types of Death Benefit of Universal Life

As we mentioned in previous articles, UL plans are unbundled, the various components of the plan such as insurance charges and earned interest can each be isolated and quantified. Consequently, they are much easier to understand and explain than traditional bundle permanent life insurance products.In this article, we will discuss the types of death benefit of the universal life policy. The type of death benefit dictates exactly how much will be paid out upon the death of the insured in the future. The most common varieties of death benefit structures found in UL contracts are
1. Level
This death benefit remains level throughout the duration of the policy. This option is the least expensive since the risk decreases over time as the fund values increase.

2. Level plus cash value
This death benefit option pays out the balance of the cash value or accumulating fund along with the initial death benefit amount. This option provides a cost-effective means of providing clients with increasing life insurance coverage.

3. Level plus indexed
This death benefit increases annually by either a fixed percentage selected at time of issue or an external inflation index such as consumer price index.
The advantage of this death benefit is that the insured can have a fixed, increasing coverage amount, increasing either by the same percentage every year or by inflation

4 Level plus return of premium.
The return of premium death benefit option is similar to the indexed option. It has the same advantages and disadvantages. This type of death benefit has definite market appeal since the insured's heirs gets back whatever was paid into the plan with or without interest,plus the initial insurance coverage amount.

I hope this information will help. If you need more information, you can read the complete series of the above subject at my home page:

http://lifeanddisabitityinsuranceunderwriter.blogspot.com

Weekly Past Publication Article August -19-2009

Types of Coverage of Universal life

Understand The Cost and Mortality Components of Universal Life insurance ( COI)

Characteristics of Universal Life Insurance

universal life (UL) was introduced in 1981-82, in response to a historically high interest environment and a consumer awareness of the value of self-directed investments because traditional insurance could not compete with short-term interest rates.
Here are some characteristics as follow
1. Account Value
The account value of a universal life plan is the sum of the gross values of all the investment accounts within the policy, including income, after deductions for the current month expenses.

2. Cash Surrender Value
The cash surrender value of a universal life plan is the current account value, less outstanding loans and surrender charges. Surrender charges are usually based upon a multiple of the minimum required premium for the policy back-end charges are larger than front-end charges.

3. Premiums & Contributions
Premiums are those amounts needed to pay the cost of insurance charges and other expenses for the policy. Deposits are those excess amounts that are of a pure investment nature.
4. Death Benefit Options
The amount of death benefit payable under a universal life policy is based upon 1 of 4 different options
a)Level death benefit: Level coverage throughout the lifetime of the policy.
b) Level death benefit plus cumulative gross premiums: Death benefit increases by the amount of each gross deposit to the policy.
c) Level death benefit, indexed: The amount of death benefit increases, yearly, by a predetermined percentage.
d) Level death benefit plus account value: The total amount of death benefit is always equal to the initial face amount, plus the gross account value. This is the most popular chose by 90% of universal life insurance policies' owners because
the gross account value is tax free.

5. Premium Flexibility
The premium deposits, plus accrued investment income, must be sufficient to pay for all expenses and deductions, so as to keep the policy in force, tax exempt life insurance contract, flexible premium.
Universal life is not for every consumer
It's flexibility tends to be reflected in much higher administration costs than are found in traditional whole life plans and the variable nature of the plan may make it unsuitable for those clients wanting guarantees.

Weekly Past Publication Article July -22-2009
What is Universal life Insurance

Universal life (UL) was introduced in 1981-82, in response to a historically high interest environment and a consumer awareness of the value of self-directed investments because traditional insurance could not compete with short-term interest rates. the life insurance industry's response was to introduce new money products, like universal life, whose investment returns would be based upon a pool of new short-term debt and not be weighted down by historical, low-coupon, long-term portfolio assets.

Unlike term and whole life insurances, this policy blends term insurance and an investment account into one contract. Also its premiums can be increased or decreased, paid when due or at unscheduled dates, or stopped entirely and restarted at the owner's will provided the policy value is adequate to maintain the cost of the insurance.

This type of policy is adapted well to satisfy the changing insurance and investment needs of its owner.
1. Flexible coverage
The prime attraction of the universal life policy lies with its flexibility that allows owner of universal life insurance policy to increase or decrease the policy's face amount and evidence of insurability is usually needed for the increases. Its flexible coverage also established a life insurance contract that (subject to an insurability requirement) allowed the policy owner to:
a. Increase or decrease the face amount of insurance
b. Add more lives insured
c. Substitute one life insured for another

2. Flexible investments
Unlike traditional plans, where the policy account value was invested in a portfolio by the insurance company's investment managers, universal life offers the policy owner the option to choose the weighting of investment within the account value from a wide range of options: from savings accounts, to guaranteed term deposits, to funds that track specific market indices and mutual fund-like investments.
All universal life contracts are subject to annualized expense charges of various natures that are deducted monthly, on a pro data basis
a) Provincial or State premium taxes
b) Mortality deductions
c) Rider charges
d) Annual administration fees
e) Insurance mortality deduction
Increase or decrease each year or level term rate.

Weekly Past Publication Article July -16-2009

Characteristics of Universal Life Insurance

There are at least four very good reasons to include life insurance to your financial strategy:

Reason 1: Take today a group of 100 people at the age of 25. According to the Social Security Administration (SSA Publication No. 13-11871, April 2000) 16 of them already died when the group reaches the age of 65. The number of people who needs to be supported by family and charities at that age is 66. The remaining 18 are financial independent. Just 18% are independent! This is way too few, none of us wants that our kids have to take the burden of supporting us after we have retired.

Reason 2: The study shows that 18% are financial independent, but how does the Social Security Administration define financial independence? The definition is: The annual income of a household or person greater than $30,000. That is not much! To get a feeling how low that amount really is, lets take look at the annual median income of all 58 Californian Counties. Only four of them have currently a lower median annual income than $30,000. This means, if you retire in California at 65 and you are financial independent (according to the SSA standard) you will probably have less income in more than 93% of the Californian counties than the median household there. So there is a good chance that you will not be able to spend your retirement in the "Golden State", together with so many other people who lived and worked hard here their entire life, even if you "are" financial independent.

Reason 3: We have all heard and read the stories of 80 year old retirees who have to start working again because their 401(k) or 403(b) or any other IRA plan has gone down significantly in value. This did not just happen to retirees. No, unfortunately everybody experienced a loss in their retirement plans. Why? Because the Stock market, in which most of the retirement plans are invested in, is unpredictable. More than just one study has proved this fact. Even experts, like Jim Cramer from "Mad Money" on CNBC didn't see the recent collapse of the Stock market coming, and he makes his living from watching the stock market and referring stocks to his viewers. The question that rises is: if he can't see a crash of that magnitude coming, how can your stock broker or financial adviser? The answer is simply, they can't.

Reason 4: We all know that life insurance never performs as well as a fund, a CD, a single stock or any other stock traded paper can. But this is and can be a very good thing that works in your favor. Because it means that life insurance is a safe and steady financial investment. You can rely on your life insurance, it will hold its value and therefore protect your investment. It builds an immediate estate. Even if you just paid one premium! Can you say that from any other financial product?

In order to be financially wise, you should always build your financial independence on a solid life insurance basis.

Click here for a complete list of the annual median income of all 58 Californian counties.

Thomas R. Hermschulte is an Financial Advisor and Representative of Mutual of Omaha http://www.MutualofOmaha.com

We currently offer our clients a free consultation to overlook their financial situation and offer free advice in these economical stormy days.

If you want to learn more what we can offer for you, contact me:

thomas.hermschulte@yahoo.com
2601 Main Street, Suite 960
Irvine, CA 92614

Cell: 714.330.1899

Article Source: http://EzineArticles.com/?expert=Thomas_Hermschulte

Weekly New Publication Article July -16-2009

Characteristics of Universal Life Insurance

Weekly Past Publication Article July -02-2009

Whole Life Insurance and Cash Surrender Value

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Under whole life insurance, the premium would be more than enough to cover the risk; the difference would be invested to form policy reserves, to subsidize what would otherwise be an inadequate premium in the later years: This concept still remains the basis for calculating premiums for all permanent insurance contracts.

If a policy owner decides to terminate a permanent insurance policy, the insurance company will return to the policy owner an equitable share of the accumulated policy reserve, called the policy's cash surrender value and the insurance company is released from its future obligations under the contract.
Although cash surrender value is guaranteed and stated in the policy, in the 1st and 2nd years, a cash surrender value usually is unavailable, because the cost of putting the policy into force more than offsets any cash surrender value , and the period is too short for the company to earn enough interest on the premiums to compensate for these costs and in subsequent years, the cash surrender value may be less than the policy reserved for a number of reasons:
a) The government sets standards for policy reserves that may result in the required reserve being higher than what the company accumulate from the premium charged.
b) Expenses, which the company incurs when the policy is issued.

In the case of whole life policies, the policy reserve increases from year to year as the life insured gets older, at very advanced ages in most policies equals the sum insured.
With a whole life insurance policy, premiums are payable at the same amount each year from the date the policy is issued until the life insured dies, unless the policy owner wishes to discontinue paying premiums and surrenders the policy for its cash value, or takes extended term or reduced paid-up insurance.
Whole life insurance is especially useful where there is a need for lifetime protection against financial risks, such as retirement expenses, final expenses and for the maintenance of dependents, if the policy owner dies before reaching retirement age.

Weekly Past Publication Article June -25-2009

Term Insurances

Term insurance policy is the oldest and popular form of life insurance. Under term insurances, the insurance company promises to pay the sum insured, if the life insured dies within the period specified in the policy (5, 20, 15, 20 year term insurances) if the life insured is alive at the end of the period, the policy terminates on that date and the life insurance protection ceases.

There are 4 types of term insurance
1. Increasing term
The sum of insured increases automatically every year and the annual premium generally increases in step with the increases in the face amount of insurance coverage. A policy might be used to protect the value of a key employee in an organization, where the employee's salary is expected to increase every year.

2. Decreasing term
It is an endowment plan having below characteristics
a) Level premium
b) Fixed term period such as the 20th anniversary of the date of issue
c) Sum of insured decrease every year
d) Cash value increase
A decreasing need might also be to guarantee additional monthly income until the youngest child is through school.

3. Fixed-period term
Term insurance policies are commonly issued for specified periods, such as 1, 5, 10, 15, and 20 year. they are often issued to terminate at a specified age of the insured, generally at age 65. Very few traditional term insurance policies ever pay out a death benefit. Fixed term insurance is good for people just starting a family without a lot of cashes and assets.

4. Term to 100
Premiums paid in the early years are significantly higher than for other types of term policy. In the long term, term to 100 premiums established at the life insured's young attained age will likely be much lower than the attained age premiums charged to those policy owners in their 50s and 60s, under renewable term plans. The biggest single advantage of term insurance with shorter periods has always been its low initial annual premium cost. Term to 100 plans do not usually have any cash surrender values.

Weekly Past Publication Article June -19-2009

Types of Life Insurance

A life insurance policy is evidence of a contract between two parties; one party is the life insurance company and the other party is the policy owner. In this article, we will discuss types of life insurance.
There are 3 Types of life insurance
1. Term Insurance
Term insurance is the oldest form of life insurance. In the term insurance policies, the insurance company promises to pay the sum insured, if the life insured dies within the period specified in the policy; if the life insured is alive at the end of the period, the policy terminates on that date and the life insurance protection ceases. term insurance has the following characteristics
a) Increasing term
b) Decreasing term
c) Fixed-period term
d) Renewability and convertibility
e) Re-entry Term
d) Term to 100 plans

2. Permanent insurance
During the early policy years, the premium would be more than enough to cover the risk; the difference would be invested to form policy reserves, to subsidize what would otherwise be an inadequate premium in the later years: This concept still remains the basis for calculating premiums for all permanent insurance contracts.

3. Universal life
Unlike a whole life policy, its premiums can be increased or decreased, paid when due or at unscheduled dates, or stopped entirely and restarted at the owner's will-- provided the policy value is adequate to maintain the cost of the insurance. Flexibility exists in the options to increase or decrease the policy's face amount; evidence of insurability is usually needed for the increases. This policy can be adapted to satisfy the changing insurance and investment needs of its owner; because it generally has few long-term guarantees, however, a universal life policy should be reviewed regularly.
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Weekly Past Publication Article June -12-2009

Characteristics of Term Insurance

A life insurance policy is evidence of a contract between two parties; one party is the life insurance company and the other party is the policy owner. Under a term insurance policy, the insurance company promises to pay the sum insured, if the life insured dies within the period specified in the policy; if the life insured is alive at the end of the period, the policy terminates on that date and the life insurance protection ceases.

1. Increasing term
Increasing term insurance might be employed in situations where the liability being protected against is both temporary and increasing; for example, such a policy might be used to protect the value of a key employee in an organization, where the employee's salary is expected to increase every year. With this type of policy, the annual premium generally increases in step with the increases in the face amount of insurance coverage.

2. Decreasing term
A decreasing term policy or rider provides for the payment of a fixed monthly benefit from the date of the life-insured's death to a fixed future date, such as the 20th anniversary of the date of issue. Such a decreasing need might also be to guarantee additional monthly income until the youngest child is through school.Generally, premiums for term insurance policies are for the same amount for each and every year of the term; this is also the case for decreasing term policies.

3. Fixed-period term
Term insurance policies are commonly issued for specified periods, such as 1, 5, 10, 15, and 20 year; they are often issued to terminate at a specified age of the insured, generally at age 65.

4. Renewability and convertibility
This right to convert without evidence is provided in the term policy, regardless of changes in health or occupation. Renewable term insurance normally is identified as such at the time of application. You must understand that, at each renewable period, the premium goes up, because the person has got older.

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Weekly Past Publication Article June -04-2009

Life Insurance and Estate Planning

As we mentioned in previous articles, estate planning is the process of accumulating and disposing wealth before death of an individual or a group of owners known as an estate owner including married couple. It's aims is to maximize the wealth of the estate owner. The most important goal of estate planning is to make sure that the greatest amount of the estate passes to the estate owner's intended beneficiaries while paying the least amount of taxes. Life insurance always play an important role in estate planning because of its tax-free statutes.

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1. Life insurance is a primary vehicle to protect your family and loved ones in case of sudden death and it provides a liquidity asset in estate planning.
2. Even though financial security is diminished as children grow older, the need to protect the estate's assets against any unnecessary tax paid is increased upon the death of the estate owner.
3. In most cases, life insurance is the cheapest way to protect your family's financial security and provides liquidity assets to cover the deceased person's administration cost and income tax must be paid for any unpaid gains such as stocks and property appreciation.
4. Life insurance paid out is usually tax-free.
5. It is guaranteed by the insurance company by it's cash reserve and by insurance-guaranteed funds up to $300,000.
6. In Canada, life insurance is guaranteed by Assuris which is a non-profit organization with members from all major insurance companies up to 85% or $200, 000, which ever is less.
7. Since life insurance is a form of pooling risk, it pools from a number of small contributors to compensate for those who suffer a loss, therefore it minimizes the risk of bankruptcy.
8. Many insurance companies invest their reserve funds conservatively.
9. Finally, life insurance always serves its purpose of creating an estate or perverse estate assets.

Weekly Past Publication Article May -29-2009

What Is Administering the Estate in Estate Trustee ?

Estate planning is the process of accumulating and disposing of wealth before death of individual or a group of owner known as estate owner including married couple. It aims is to maximize the wealth of the estate owner. The most important goal of estate planning is to make sure that the greatest amount of the estate passes to the estate owner's intended beneficiaries while paying the least amount of taxes. In case there is no will, upon the death of decreased person then decreased asset will be administrated by estate trustee.

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I.Definition
Estate trustee is someone who appointed by the court to administrate the decreased assets after an application is made by one of the next of kins to the court in case of no will.

II. How it works
1) In case of no will, upon the death of decrease, one of the next of kin who is over 18 year of age and nominated by majority of other next of kins to the court for appointment of the applicant as a estate trustee.
2) It is time consuming, since the court need 2 to 3 weeks for this appointment.
3) The applicant is approved by the court to administrate the asset of the decreased person is known as estate trustee without a will.
4) The applicant who will become estate trustee with out a will may need to be bonded by 2 persons. Normally, it may require to be handled by professional lawyer office.
5) The administration and distribution of decreased assets will have to follow the State or Provincial laws.
6) All assets in joint tenancy with the right of survivor will automatic go to the surviving person.
7) The administration of estate trustee with out a will may be costly because of inexperience and sometimes may request the help of professional lawyer.
In case of no agreement between next of kins of the decreased person to nominate one of the next of kin to become estate trustee, it may increase complexity of decreased assets administration. The court in such case may appoint a public trustee to handle the asset distribution according to the State or Provincial law.

Weekly Past Publication Article May -22-2009

Who can be An Executor ?

Estate planning is the process of accumulating and disposing of wealth before death of individual or a group of owner known as estate owner including married couple. It aims is to maximize the wealth of the estate owner. The most important goal of estate planning is to make sure that the greatest amount of the estate passes to the estate owner's intended beneficiaries while paying the least amount of taxes. If you are chosen as an executive in a decreased person will, here are your duties.

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1. Definition of Executor
As we mentioned in previous article, an Executor is the person named by decreased person before his or her death in the most recent will and he or she has the responsibility to administrate the deceased’s estate.

2. Who can be an executor
There are many concerns when you decide to choose someone as an executor in your will, here are some examples.
a) Your executor in a will should be someone is trustworthy and respectable to your family. He or she should know and agree to carry your wishes upon your death.

b) Your executor must be able to read, write and speak English fluently and capable to perform the duties of an estate executor. Requesting other people to translate or interpret the will is costly and make the matter more complex.

c) If you think your estate is complex enough or you suspect your will may cause some controversy among designate beneficiary, you may consider to name a professional executor, such as a trust company or lawyer to carry the duty upon your death.

c)Your executor should be someone who you have known for many years so that they can carry his or her duties without causing any interfere or delay with your wish.

d) Remember that person was named in a will as executor is under no obligation to serve. You make sure you have discussed your wishes with that person beforehand so he or she understands the duties as an executor and is comfortable with the performance of those duties to avoid any unnecessary delay of your estate administration.

e) Make sure you also appoint an alternate executor in case the primary executor is unable or unwilling to perform those duties at the time of your death.

f) Your executor should of course be someone healthy and likely to outlive you.

g) You may wish to appoint professional to act as your executor if you anticipated controversy or conflict among beneficiaries.

The duties of an executor is to carry our estate administration and to ensure the decreased person final wishes are respected and is allowed to charge a 2.5% fee on capital disbursements or on capital receipts.

Weekly Past Publication Article May -16-2009

What is The Estate Setlement in a Will

Estate planning is the process of accumulating and disposing of wealth before the death of individual or a group of owner known as estate owner including married couple. It aims is to maximize the wealth of the estate owner. The most important goal of estate planning is to make sure that the greatest amount of the estate passes to the estate owner's intended beneficiaries while paying the least amount of taxes. Choosing an executor is importance to ensure that someone who you trust will help to perform duty of estate settlement upon your death.

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I. Definition
Estate settlement is also known as estate administration. It is the form of handling the decreased person assets by an appointed executor or executors. If the deceased did not leave any testamentary dispositions then the dispositions can be proceeded.
II. How it works
Estate settlement includes the following
a) Testamentary dispositions and will probated
Written, holographic will will have to apply to the court for probate before assets can be gathered by the executor and only most recent will has legal value. If the deceased did not leave any testamentary dispositions then the dispositions can be proceed. Any testamentary trust in a will must be closely examined and resolved.
b) Notifying public
The purpose of this notice is to inform the heirs, creditors and debtors to the estate of the existence and identity of the liquidator.
c) Inform the federal and estate or provincial governments of the person's death.
It is necessary if the decreased person is receiving pension incomes from the federal and estate or provincial government
d) Identifying the beneficiaries
c) Gather all decreased person documents
All documents are gathered including life insurance policy, birth certificate, decree of divorce and other related to decreased person documents. Only the death certificate and the copy of the act of death are legally recognized.
e) Create an estate account
So all assets can be deposited into that account
f) Gather all deceased person assets
All assets including stocks, bond , property, etc. will be calculated if necessary using arm's length to determine the asset values.
g) Notifying public after all assets of decreased person are gathered
Identifying all debtors, such as credit card debts, personal loans, etc
h) File income tax for decreased person
File income tax, any taxes owed by the decrease should be paid
i) Pay off all debts
j) Other settlement if need
Such as family patrimony and the matrimonial or civil union regime are there for married spouses or spouses in a civil union.
k) Pay out remaining

Weekly Past Publication Article May -08-2009

What is an Executor In The Will

Estate planning is the process of accumulating and disposing of wealth before death of individual or a group of owner known as estate owner including married couple. It aims is to maximize the wealth of the estate owner. The most important goal of estate planning is to make sure that the greatest amount of the estate is passed to the estate owner's intended beneficiaries while paying the least amount of taxes. Choosing an executor is importance to ensure that someone who you trust will carry your will intention after your death.

I. Definition
An executor in the will, normally is the lawyer or someone you trust who will carry your intention in the will.

II. What is executor responsibility
Since you have named someone as your will executor, in general, the executor will gather up all your assets and after paying all your debts, she or he will distribute the remaining assets to the beneficiaries.
1. Paying funeral expense
The funeral expense usually paid out from the assets of the decreased, although sometimes the executor consider the wishes of the deceased's relatives.
2. Paying all other debts
The executor is also responsible to pay off all the debts of the decreased person including all credit cards and charge cards, personal loan and other debts through decreased assets.
3. Notifying all beneficiaries who are named in the will.
4. Submit the necessary probate documents to the court to get probate before an executor can handle the deceased’s estate.
5. Notifying the government pension office, if the decreased person is receiving pension payment before his or her death.
6. File the income tax for the decreased person and pay all income tax if owed by decreased estate and get a tax clearance.
7. Distributing the remaining assets to estate beneficiary.
Remember certain assets do not need to probate such as RRSP and insurance paid out from life insurance policy. Please beware of 6 months deadline of variation act that allows decreased child or spouse to apply to the court for changing the terms of the will.

Weekly Past Publication Article May -01-2009

How to Draw Up A Will

Legal Capacity of A Will

What is A will ??

As we mentioned in previous articles, estate planning is the process of accumulating and disposing of wealth before death of individual of group of owner known as estate owner including married couple. It aims is to maximize the wealth of the estate owner. The most important goal of estate planning is to make sure that the greatest amount of the estate passes to the estate owner's intended beneficiaries while paying the least amount of taxes. Drawing a will is one the process necessary in estate planning to ensure that the estate is distributed as the estate owner wish.

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I. Definition
A will is a legal document that gives someone the power to act as your financial representative after your death and directs how your assets should be distributed.

II. Development of a will
1. Legal capacity to draw a will
a) To make a legal will, the testator must be over 18 years of age or the person must be married or in the military.
b) Testator must be in sound mind.
c) The will is not made under influence of other people
2. Draw up a will
Indicate all assets in the will and how do you want want them to be distributed and have the lawyer to notarize it. You may also draw a will with your hand writing with no requirement of witnessing or notarizing.
3. Others include in the will
a) Address of testator
b) A statement that previous wills made by the testator are revoked
c) The direction how assets are distributed after taxes and expenses are paid
d) Name the testator's executor and guardian
4. Signing and witnessing
a will must be signed at the end by the testator and is witnessed by 2 sound mind person simultaneously. In case of holographic will witness is not required.

Weekly Past Publication Article Apr -11-2009

Universal Life Insurance and Estate Planning

Estate planning is the process of accumulating and disposing of wealth before death of individual of group of owner known as estate owner including married couple. It aims is to maximize the wealth of the estate owner. The most important goal of estate planning is to make sure that the greatest amount of the estate passes to the estate owner's intended beneficiaries while paying the least amount of taxes. Life insurance if one of the vehicle that can ensure that because life insurance is tax free on hand of beneficiaries.

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I. What is universal fife insurance
Universal life insurance is one of most flexible life insurance that has been around since the early of 1980 and has been used in estate planning process . It contains 2 components: life insurance and investment funds.
1. Life insurance normally used to protect the policy insured's family or company in case of sudden death of the insured. It may be used in estate planning because of its tax exempt status. Since it is tax free, it can use to pay for tax and other expenses that might eat away the estate owner wealth upon his or her death.

2. Investment funds
Investment funds are the most important figure in the universal life insurance policy. The maximum amount is predetermined every year according to state or provincial law. Any growth of the maximum amount deposited into the universal life insurance policy is tax free upon the death of the life insurance.

3. Registered investment funds
It works like other registered pension plan but it is principle guaranteed by insurance company up to 100% upon the death of policy owner.

Upon the death of policy insured, The assets held under his or her mane must be liquidated including any deferred investments, capital gain and tax must be paid before assets can be distributed to the estate. If universal life insurance is one of vehicle was used in estate planning, the life insurance and investment funds are paid to beneficiary tax free can be used to pay for any estate tax, leaving the much large portion of wealth to the estate. That is main reason, it has been used successfully in assisting estate planning.

II. Other figures that benefit the estate owner
1. The investment fund can provide addition income for the estate owner while he or she is alive. Any withdrawal is taxable in the same year
2. Funds can be withdrawn anytime
Universal life investment funds can be withdrawn any time, if it is requested by the policy owner
3. Registered funds can be additional income when your retired

Weekly Past Publication Article Apr -03-2009

Life Insurance and Estate Planning

As we mentioned in previous article, estate planning is the process of accumulating and disposing of wealth before death of individual or group of owner known as estate owner including married couple. It aims is to maximize the wealth of the estate owner.

I. Life insurance
The most important goal of estate planning is to make sure that the greatest amount of the estate passes to the estate owner's intended beneficiaries while paying the least amount of taxes. Life insurance is one of the vehicle can ensure that because life insurance is tax free on hand of beneficiaries upon the death of the estate owner.

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II. How it works
1. The proceeds from the insurance can be used to pay off any probate, taxes and fees and leaving the accumulated wealth of your estate for intended beneficiaries.

2. Under universal life policy, growth of assets in your life insurance policy is tax exempt. The proceed of life insurance plus fund values will be not be taxed on hand of your designated beneficiaries and it can be used to pay off the debts of your estate that accrue at your death.

3. While you are a live, the fund values that are not registered can be withdrawn anytime. Funds that are registered can provide additional income when your retired. Since the funds can be withdrawn anytime, it give some security in case of emergency needs.

4. Life insurance in group plan not only can be used as enhancing employee benefit packages, providing coverage to protect against loss due to the death of a business partner, it also can be used as a strategy to minimize corporate taxes.

Continued To Read Older Past Weekly Articles

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Life and Disabitity Insurance and Financial Planning Underwriter

Saturday, September 20, 2008

Life and Disability Insurance Articles in Every Aspect

Tax Exempt vs Non Exempt Universal Life Policies

When is the Best Time to Buy Universal Life Insurance

Understand The Benefit and Riders of Universal Life Insurance

Understand Life Insurance Surrender Charge

What is Investment Bonus In Universal Life Policy?

Understand Investment Options of Universal Life Insurance

Types of Coverage of Universal life

Understand The Cost and Mortality Components of Universal Life insurance ( COI)

Characteristics of Universal Life Insurance

Characteristics of Universal Life Insurance

Characteristics of Universal Life Insurance

Whole Life Insurance and Cash Surrender Value

Term Insurances

Types of Life Insurance

Characteristics of Term Insurance

Life Insurance and Estate Planning

What Is Administering the Estate in Estate Trustee ?

Who can be An Executor ?

What is The Estate Setlement in a Will

What is an Executor In The Will

How to Draw Up A Will

Legal Capacity of A Will

What is A will ??

Life Insurance and Estate Planning

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Life, Disability Insurance and Financial Planning Articles Written By Kyle J. Norton

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