Life and Disability Insurance Articles in Every Aspect

2008-09-20T06:37:00.000-07:00

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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 Sept. 11 - 17- 2010

Exploring the Benefits of Universal Life Insurance
By Chris A. Harmen

There are many options to consider when choosing a life insurance policy. The first step in the selection process is to decide what type of policy to pursue. There are many conventional choices, but financial coordinators have now begun recommending a less typical type of policy known as universal life insurance. Universal coverage offers much more than just a policy. It acts to protect the family after the death of the insured, just like other policies. However, it is the unique features of the universal coverage option that make it different from most traditional options.
What Is Universal Life Insurance?
Universal life insurance is a type of policy that offers the owner almost unsurpassed flexibility and choice. These policies require an unprecedented level of involvement on the part of the policyholder because there is almost nothing fixed about them. They are based upon a cash value account, which the holder may add value to whenever he or she chooses. There is no specified rate at which funds must be added, nor is it standard practice to impose a specified minimum balance. Instead, the holder retains the complete right to manage the balance as he or she sees fit.
Traditional policies tend to lock the insured into an option for an average of 20 years, if not more. In contrast, universal life insurance offers the opportunity to monitor and change the plan every day if desired. Why Cash Value Is Important
Most experts consider the cash aspect to be the centerpiece of any universal life insurance coverage. The account is similar to an account that would be found at a bank, including its ability to gain interest. The cash value is controlled by the person who owns the policy; they can make withdrawals and deposits, just as with any standard savings method. This feature is found only in universal life insurance. Other plan styles do not offer these types of unstructured options.
Because these plans offer an account, owners have unparalleled flexibility. There are many functions included that go beyond a simple deposit or withdrawal. A user can surrender his or her policy, terminating it in exchange for the total sum cash value at that point, less any applicable withdrawal charges. Another option is to take out a loan from the issuing agency. It is essentially a loan against the cash value, but behaves much like a loan from any other common source. Finally, the plan can also be collateral for a loan issued elsewhere.
Paying For The Policy
The account attached to a given plan does not itself constitute a universal life insurance policy. Instead, it is like a dedicated selection of funds set aside specifically for payment of the plan. On a predetermined schedule, the provider will debit funds from that account in order to pay for a predetermined amount of coverage. The provider then sends a detailed and itemized bill to ensure that the owner understands exactly what he or she is receiving.
There is one potential drawback to this system. Because the amount is automatically debited from the account, the owner must keep careful track of the balance. It is possible for this type of policy to lapse because there are not enough funds in the account itself, meaning that the policyholder would suddenly be without coverage. Although an agent may keep some sort of watch over an account, the ultimate responsibility always lies with the policyholder. Of course, the limit on how much can be placed into the tax-advantaged account are very high, so one may deposit enough to have quite a substantial cushion. Proactive measures like this can greatly reduce the risk of sudden loss of coverage.
Who Benefits From This Type of Plan?
Unlike most other policies, universal life insurance offers a unique opportunity to combine investment and coverage. Universal life insurance provides the same package of benefits as any other type of plan, but it has the additional bonus of the tax-advantaged account. For this reason, many individuals choose to purchase a universal life insurance policy for the tax-advantaged investment plan-even though that is not the main purpose of the policy. Money can accrue interest and be withdrawn at will, making it a safe choice that has benefits.
In addition, forward-thinking individuals can use universal life insurance to protect a business in the event of their death. The policy can help keep the business afloat and enable it to benefit from the rest of the accrued money. The same is true for anyone who will leave an estate, as the funds can help pay off estate tax. And finally, starting a plan early in life is an excellent option for retirees. Planning ahead and depositing more than the minimum into a universal life insurance plan can be a great way to ensure security after retirement.
With an understanding of this unique policy, individuals can not only plan for the future, but also for the present as needed.
SEEK INDEPENDENT ADVICE. All information expressed in this article is intended to be general information only. You should not rely upon this general information to make legal, tax, investment, estate or financial planning decisions. No portion of this article is intended to nor does it provide legal, tax, investment, estate or financial planning advice. For this type of advice, you must consult an independent advisor.
Chris Harmen writes for Wholesale Insurance, a life insurance company that connects men and women with many different policy types, including universal life insurance.

Weekly Past Publication Article Sept. 04 - 10 - 2010

Medical Misconduct - What to Do?
By Dave Smythe

Going under any medical procedure can be a very frightening experience for anyone. Trusting that you are in the hands of professional medical personal is something that we all assume but there may be situations where that may not be the case. When it comes to health issues, being protected is something that everybody should not take for granted. Knowing your rights about medical malpractice can save you time and grief.

Medical misconduct is when the carelessness or act by a health care provider is licensed to provide medical advice and services in the medical community and causes serious injury and in some cases even death. Medical professionals are required to maintain professional liability insurance to off set the risks and costs of lawsuits based on medical malpractice cases that may occur.

Nobody is perfect and we all know that mistakes can happen so ruling out the unexpected is not far fetched. Medical malpractice is not just surgical mishaps; it can be a missed diagnosis, wrong diagnosis along with surgical error and improper surgical techniques. Some of the results may be life altering or even deadly. Handling a medical malpractice situation is very similar as a personal injury situation. In a typical personal injury case the defendants actions is compared to what a similar person would have done in that circumstance. The judge or jury would then make their decision weather or not that person is liable for the injury.

In a medical misconduct cases instead of being held to a reasonable person standard the doctor is held standard of a 'reasonable professional' or a 'reasonable doctor.' People in the medical industry are looked up to and are held to a higher standard than non-medical people are. When it comes to your health you can never be too careful. Knowing your rights and being prepared for the worst can benefit you something happens.

Florida Medical Malpractice lawyer

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

Weekly Past Publication Article August 28 - Sept. 03 - 2010

Family Dental Plans - What You Need to Know
By Linda D. Perry

Being single means that you only have to fend for yourself; but even so, the task is still not an easy one. On the other hand, having to fend for a family is extremely difficult. With the many financial obligations that parents have to fulfill, getting a dental plan for all of them can be an arduous task. Many people overlook the dental health of their families and only go to the dentists when their children are afflicted with a toothache or other serious dental problems. However, negligence can have dire consequences, and you may find that foregoing routine check-ups can leave you with a major dental problem and at an expensive price too. Fortunately, many insurance providers offer family dental plans to cater for the dental needs of the average family.

Family dental plans usually cover for routine maintenance and check-ups such as prophylaxis, dental fillings, and oral exams. In you want surgical procedures to be covered as well, it is best to speak with the insurance provider to determine which plan covers them. Aside from the wide range of dental services that can be availed, another advantage of this type of plan is the discounts that can be enjoyed. Many of them offer up to 60% discount on dental services which can save families a lot of money. Compared to individual dental plans, the family plans are easier to process which means that in about day or two, the policy goes into effect and family members can already avail of the services.

In order to find the best family dental plans to suit your needs, there are several things that you have to keep in mind. Firstly, it is of utmost importance to research about the different family plans there is. Find out which of them covers a wide range of dental services at a monthly fee that is easy on your family's budget. It is also advisable to call various insurance companies so you can ask as many questions about their plans as possible. It is important to be thorough so that you won't have to deal with issues later that may arise as a result of confusion.

If your family already has a dentist in mind, you should ask whether he is a member of the family dental plans that you have your eye on. It is not easy to have to change dentists especially if your family was comfortable with the previous one. A dentist who is also familiar with your family's dental history is an added advantage because you are assured that he will be able to provide the dental care that your family needs.

Click Here ==> for much more information on Family Dental Plans and Dental Plans, visit LookDentalPlans.com <== Click Here

Article Source: http://EzineArticles.com/?expert=Linda_D._Perry

Weekly Past Publication Article August 21 - 27 - 2010

Payroll Taxes - How Shareholders in a Corporation Can Be Personally Liable
By Richard Chapo

The corporate entity has been with us a very long time. In fact, it is the standard business entity and the default choice of most publicly traded entities. There are many aspects of the entity that one can delve into, but one that doesn't get enough attention is how shareholders can be pegged with liability for certain taxes, particularly payroll taxes.

The corporation is unique in the American legal landscape because of a piece of fiction. That fiction is the legal standing of the entity. It is considered to be a living person under the law. Courts have uniformly held that it has the same rights of a person. You might recall the general outrage that occurred when the Supreme Court ruled corporations could not be forced to limit their donations to politicians because it violated their right to free speech. This right to free speech arises from the entity being considered a person under the law.

Given this standing, you will often hear or read that the shareholders of a corporation can only be found liable for their capital contribution. This simply means that you only risk the amount of consideration you pay for the shares you own. For example, if I buy $1,000 of Google stock and the company goes bankrupt tomorrow, I can only lose my $1,000. This theory is generally true, but not always.

Payroll taxes are monies that a company is liable to pay on behalf of employees. A corporation must share in the tax liability of its employees. Problems arise, however, when a company is having cash flow problems and doesn't make the payments. The IRS gets very hot and bothered by such situations. Let's put it this way. Pit Bulls get scared. The agency views the failed payment as a theft and will literally raid businesses as a first step to collecting the debt.

Failing to pay payroll taxes is pretty much the last thing any business should do. Many corporations make the mistake, however. Then things get interesting for shareholders. While a shareholder is not typically personally liable for the tax debts of a corporation, they can be held liable for the payroll tax if they were in some way responsible for their collection and payment. My investment in Google is not going to get me in trouble, but the same is not true with most corporate entities. Most of them are small businesses where the shareholder(s) often are also involved in the daily running of the business. In such a situation, the IRS is going to try to nail each with joint and several liability for any payroll tax problem.

If you are the shareholder in a corporation, you should review your role in it. Any involvement in the issuance of payroll makes you personally liable if the company does not meet its tax payroll obligations.

Richard A. Chapo writes about payroll tax lien problems and a host of other income tax subjects for BusinessTaxRecovery.com.

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

Weekly Past Publication Article August 13 - 19 - 2010

Annuities - Facts and Information About Anuity Insurance

Most people worry about investing in an annuity because the product seems foreign to them. While the terminology is different and sometimes a little confusing, a fixed annuity is really nothing more than a CD with more benefits. It tax-defers your interest and gives you the option to take payments you'll never outlive.

Most of the time, the owner and the annuitant are the same person. Just like a CD there are penalties for early withdrawal. The insurance companies call them surrender charges instead of penalties. Unlike a CD, however, you can often access a portion of your principal from many annuities without a fee.

Insurance companies are businesses and in order to earn the right to service customers, they had to make the product more attractive. Today, annuities for those approaching 59 ½ or older are often far more practical than the average CD. Since the product is for retirement and you get a tax shelter, it has a 10 percent tax penalty for people under the age of 59 ½ who remove their money, just as an IRA does so it often doesn't suit the young investor.

If you've already found how easy life becomes when you invest in an annuity, you may be in the shopping mode to find another or simply find one with a better rate or interior design. Changes and improvements create a need to periodically look at your present product. There are special steps you must take to avoid taxation when you transfer funds from one annuity to another. Make certain that your agent follows these steps.

The representative must fill out a state replacement form and you must sign it. This notifies the Department of Insurance that you're transferring funds. It also notifies your old company that you're switching. Be wary of any agent that doesn't fill out the form. It's against insurance law for them to omit it.

The representative then fills out a section 1035 Exchange form. These forms tell the government that you aren't receiving the funds but transferring them directly into another policy. If you take receipt of the funds, you pay taxes on the growth. This form guarantees that you'll get to defer the taxation.

After you fill out the paperwork for the new annuity, the representative sends all the forms to the appropriate place. You'll have time to consider the transaction and probably receive notification from your old company. That's not bad, however. You should already know why you transferred the funds, but if you signed in a moment of confusion, talk to your old agent and see what they have to offer. If they have a better product, ask why he never showed it to you before this time.

Whether you're investing for the first time in an annuity or transferring funds from another product, always keep good records. When you start to remove funds, you'll need to know what your original basis was. That simply means, how much money did you put into the annuity. Your basis is the amount you put into the first annuity if you do a transfer. You'll need this at tax-time if you take funds out to use.

No matter whether you're a first time annuity purchaser or an old hand at annuities, it pays to get several different annuity quotes and shop for product features that fit your needs. By doing this, you'll have the best annuity for your situation.

John C. Ryan is an expert in the field of annuities [http://bestfixedannuityquote.com/ABOUT-ANNUITIES.html] and other investment tools for retirement. Annuity insurance has been around for a number of years, but has grown increasing popularity due to the recession, and the increasing number of retirees in the US. Come see us for more anuity information and analysis.

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

Weekly Past Publication Article August 06 -12 - 2010

The Benefits of a 401K Rollover to Roth IRA
By Beth Lyons

Being smart about money means taking the time to research your options. If you're transitioning from one job to another, facing unemployment, or getting ready for retirement you need to think about what you are going to do with your 401(k). You have the option of not doing anything, in all three of these situations. If you're moving to a new job you can leave the current money in your 401(k) and it is no big deal. If you're leaving that job and unfortunately, you do not have another job lined up, you can still leave the money where it is. And in fact, when you reach the age of retire, you don't have to move your 401(k) account. The 401(k) rules are very clear in governing the retirement phase of your career and there are benefits to moving the money to a Roth IRA.

It is not always going to be the smartest move, but consider a 401(k) to IRA. This is especially important if you are about to retire. If you look at a 401(k) to Roth IRA rollover you will see that you have more options on what happens with your money and how much money you can withdraw, if you move the money out of the 401(k). Even if you still have many years of work life left, you may decide that a 401(k) to IRA is the right way to go. One of the benefits of moving to an IRA is that you are going to have many more choices of investment funds. In a traditional 401(k) you may have a dozen funds to choose from. With an IRA, however, you could conceivably have hundreds of choices.

There is a difference between a regular IRA and a Roth IRA. A regular IRA, like a 401(k), grows with tax deferred money. If you contribute to a Roth, however, you're using money that has already been taxed. There are many benefits to choosing a Roth account. The tax implications are the most important. If retiree budgets have a common Achilles' heel, it is taxes. So often as people work through their financial plan and decide how much money they need during retirement, they underestimate the tax bill. By using a Roth IRA as part of your financial portfolio, you can mitigate some of the tax burden. Admittedly your money might not grow quite as fast as a 401(k) would, but with steady application and focus your Roth IRA account will be as robust as any part of your portfolio.

Visit 401k Rollover Answers for more about the benefits of a Roth IRA.

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

Weekly Past Publication Article July 31 -August 05 - 2010

15 Steps to Become Wealthy
By Elizabeth Rosa

1. What is your financial freedom figure? To calculate this, you need to do the following: Write down the annual salary you need to live comfortably (NOT wealthy) just comfortable £__________

Multiply this figure £_________ x 15

This is your financial freedom figure. As you now have a goal, you can work towards it.

2. Learn how to manage your money. Even someone on a low wage who learns to manage their money can eventually become wealthy with compounding interest. That is money put into savings that is never touched again. Here's an example

*A guy working for UPS earning a salary of no more than £30,000 per year left a legacy of £70 MILLION

Mr Ted Johnson was in his 90's when he died. He worked for UPS, and his salary was no more than £30,000 per year. He lived a full life and had a great lifestyle. He gave away £36 MILLION. He created incredible abundance for the people around him.

He did it because he knew the power of compounding interest. This is when you put money away. You never remove it, just keep reinvesting. With compounding interest it is possible to achieve you financial goals in 10 to 14 years.

Here's an example: if you were to invest £5 per day instead of spending it on stuff, you would have £150 per month. If you reinvested that £150 per month for 30 years at 15% annual return, after 30 years you would have £1,051,000. Add another 10 years you would have £4.7 MILLION. If you did the same with £250 per month you would have £7.8 MILLION after 30 years.

Get started now!

If you wanted to pay for your child's education and invested £100 per month from his birth at 15% rate of return after 19 years you would have £110,000. If you were to keep reinvesting in trust, after 50 years £9.6 Million

60 years £39.2 Million

70 years £158 Million

*Sourced from Tony Robbins 'Get the edge'

So starting today, put at least 10% in savings and start building your wealth and protect yourself against the next recession. Pay 10% FIRST, then pay your bills etc.. Set up an automated system such as a Standing Order with your bank come pay day.

3. Many people waste their money on 'stuff' they don't need, have high bills on several credit cards. If you are only managing to pay off the interest, you are really in trouble! To learn how to manage money, read Alvin Hall's book 'Your Money or Your Life' available at Amazon.

4. If becoming wealthy feels impossible to you, then once you have clearly defined your financial freedom figure as above, you can start seeking out ways to draw yourself towards it. The Law of Attraction would come into play here. So, if in your mind becoming wealthy would mean having a home based business, start imagining that. You would soon start attracting opportunities towards you, because your subconscious mind is seeking them out.

5. You need to believe that you can achieve it, otherwise you will not start.

6. You need to make it an absolute MUST to achieve your goal to become wealthy & abundant. Right now you only earn what you MUST have, not what you should have.

7. You need to have a realistic plan

8. Once you have your plan in place, you need to take action and follow through

9. When you have a setback, revise what you are doing. Ask yourself whether you need to rethink your plan and change your way of thinking. Then, to maintain the momentum keep going forward. Did you know that the entrepreneur Colonel Sanders who founded KFC was rejected no less than 1009 times by restaurant owners? By 1964 he had 600 franchises. The rest is history.

10. Nobody cares about your money more than you do. If you arrange for an 'expert' to take care of your money, ensure that you understand 100% what they are doing. If you don't, don't invest! Elton John & Billy Joel lost vast sums of money when they entrusted 'experts' with their money.

11. Conduct your life as if it were a business. That is you worked for 1 year, and you are in profit by £_____.00 Most people would be bankrupt, or they believe that breaking even is OK.

12. Don't allow other people's negative opinions to 'kill' your plans and ideas. If this happens, surround yourself with people who are in the business that you want to be in, who can support you.

13. If you are waiting to win the lottery, the chances in the UK are 1 in 14 MILLION! Most millionaire winners go broke within 2 to 3 years because they did not know how to manage their money. They should have got hold of Alvin Hall's book 'Your Money or Your Life'!

14. Go against the grain. Donald Trump bought property in New York when every other property developer was fleeing. As a result he became a multi-millionaire, and later a billionaire (after a major setback) He believed in what he was doing, and made it an absolute must. He did not allow negativity from others to influence him. He had a plan, and he took action.

15. Get a mentor. Learn from the most successful person in your chosen field. One of the biggest secrets to success is to follow a mentor, who will give you the benefit of your experience, perspective and save you time and frustration. If this is not possible, then buy their books, CD's, DVD's, seminars etc..

It's never too late to start.

The key that unlocks the door to wealth

The real secret to wealth is gratitude. For those people who have everything that money can buy and are not happy is because they are not grateful.

Start your day with gratitude. Gratitude for life and love yourself. The Law of Attraction will come into operation as you will attract others who are grateful. That's the moment that you are rich!

Discover these Secret Ancient Teachings and many, many more in The Covenant http://www.SecretAncientWisdom.com

Weekly New Publication Article July 24- 30 - 2010

15 Steps Toward Achieving YOUR Financial Freedom
By Bill Ryon

Reaching your goals is no easy task. You work very hard your whole life looking forward to the time when you can take your foot off of the pedal and smell the roses. Having a financial plan and strategy in place will help create a disciplined process for taking the needed steps towards reaching your goals and getting to YOUR destination. In your professional life you are likely required to make plans whether it's for your sales goals or for your divisions growth over the next ten years or because you are a businesses owner and trying to get a loan. You make plans in your business so why not apply the same thinking to your personal life. These steps are meant to get you thinking and by no means are they the exact answer for every individual, family, or business. We do hope they are helpful and that you lean on us for further information and guidance.

1. What's the plan? A good financial strategy will consider all aspects of your financial life to help guide you toward your destination.

2. Keep records organized and in a safe place. Use the technology available today to help clear those piles of paper on your desk and in your desk drawers.

3. Know where you stand financially. This means knowing your liquid net worth (savings & investments minus non-real estate debt).

4. Save regularly for the future including retirement and other goals.

5. Live within your means. This goes without saying but if you can do it you will be well on your way to reaching your destination.

6. Properly diversify assets. You certainly do not need to be your own mutual fund but allocating assets across classes of investments while keeping your risk tolerance and time horizon in mind can be helpful when planning.

7. Keep close tabs and properly manage those pesky liabilities including: mortgages, auto loans, boat loans, credit cards, retail store cards, etc. Be on the watch for rate hikes.

8. Manage cash effectively. This means knowing when to deploy cash and when to do nothing at all.

9. Manage life's risks. Have appropriate amounts of insurance to cover various risks including Life, Medical, Disability, Long-term care, Homeowner's, Auto, Boat and Personal liability insurance. You may have additional risk exposures which can be looked at on an individual basis.

10. Consider a plan to fund college education for children or grandchildren. This is a very complex area of planning please call or email for assistance and resources.

11. Life is big! Have a plan for other large expenses such as weddings or a second home.

12. Have an emergency fund with at least 3-6mos of income set aside. Your personal situation will dictate the amount needed for you and your family.

13. Complete a will. You'll feel great knowing that your wishes will be carried out.

14. Update beneficiaries. Many problems can be avoided by simply reviewing this simple document each year. It's all about what you want and need, so by keeping your beneficiary designations updated you will ensure that your assets are going where you want them to go upon your passing.

15. If you own a business you may need to consider a plan for succession. If a family member or partner is not going to takeover you will want a confidential plan for your exit.

Hopefully, this get's the wheels spinning. I should add number sixteen and say, do not let the amount of information or number of topics cause you stress. They can all be addressed individually, over time and in an organized fashion. The first steps are the hardest, and they are gathering up all of the documents and information. We are here to help so please use our vast array of resources and experience.

Bill Ryon is a financial advisor living in Maryland. He has helped dozens of individuals, family's and companies from coast to coast create the plans most appropriate for their needs and goals. For more information you may visit our website at http://www.mycompassadvisors.com. While visiting please sign up for our free educational newsletter. Securities offered through Ridgeway & Conger, Inc. Member FINRA/SIPC/MSRB. Advisory services offered through Ridgeway Conger Advisory Services, an SEC Registered Investment Advisory. Compass Investment Advisors and Ridgeway & Conger, Inc./Ridgeway Conger Advisory Services are separate entities.

Ridgeway and Conger, Inc. may only transact business or render personalized investment advice in those states where we are registered or otherwise excluded or exempted from registration requirements. This site is for informational purposes only. Any communications with prospective clients residing in states where Ridgeway and Conger, Inc. and its registered representatives and registered investment advisors are not registered or licensed shall be limited so as not to trigger registration or licensing requirements. Ridgeway & Conger, Inc. Office of Supervisory Control 2123 Main Street PO Box 460 New Woodstock, NY 13122 Member FINRA/MSRB/SIPC

Weekly Past Publication Article July 17 - 23 - 2010

Individual Disability Insurance Benefits For Federal Government Workers
By Michael Relvas

As a Federal Government worker, it is important that you understand the benefits provided to you by the FERS Disability program. A proper understanding will allow you to effectively assess the income protection you have and make an educated decision of whether or not you should obtain individual Disability insurance as a supplement to what you are already provided.

Without going too far into detail, Federal Government workers are provided Disability insurance benefits through the FERS program once they have completed 18 full months of service. For any injury or illness which restricts you from performing your current job and is expected to last beyond one year, you are eligible to receive 60% of your annual salary during the first 12-months of a disability claim and 40% of your annual salary for each year thereafter.

Something that you may not know is that although you are provided 60% and 40% Disability coverage, you may actually receive a substantially smaller benefit than you expect at claim time. Since FERS Disability benefits are primarily paid for by the Federal government, any benefits you receive during a claim are taxable as ordinary income. Due to this taxation of benefits, along with the reduction from 60% to 40% coverage, Federal government workers are faced with a tremendous shortage in income protection. Thus, Federal workers are able to obtain individual Disability insurance as a supplement to their provided coverage.

Similar to how individuals in the private sector purchase individual Disability insurance to supplement their group Disability insurance, Federal government workers can also obtain individual Disability insurance to supplement their FERS Disability benefits. Amongst the many options that are made available for Federal employees, there are some that are more attractive than others.

As you consider purchasing individual Disability insurance, look for two primary characteristics in a policy. The first is to be sure that you are not restricted to which policy provisions and riders can be added to your policy. If you are going to spend money on obtaining individual coverage to properly and effectively protect your income, be sure that you are not restricted on what you can add to your policy. Secondly, be sure that your individual policy benefits will not offset with Social Security disability benefits. Your FERS Disability benefits will already be off-settable with Social Security Disability. It is bad enough that the majority of your FERS benefits may offset with Social Security benefits but again, if you are spending money in order to properly protect your income, you should be sure that you are not paying for Disability insurance that will be reduced as your FERS benefits are already.

Purchasing individual Disability insurance as a means of supplementing the shortage that exists in your FERS Disability coverage is a responsible and intelligent way of effectively protecting your income, your family and your future. Be sure that you work with someone who is familiar with the details associated with FERS Disability benefits and also the individual options available for Federal workers. For more information relating to your FERS benefits, visit Disability benefits for Federal Government workers.

Michael Relvas is a Disability Income Specialist with MR Insurance Consultants, an insurance and financial services firm. Based just outside of Washington DC, Michael has worked with many Federal Government employees to improve their understanding of FERS Disability benefits and also to obtain individual Disability insurance as a supplement to FERS. If you have questions related to FERS Disability insurance and the individual options available to you, call 800-817-4522 or visit us at Disability Income Insurance.

Weekly New Publication Article July 10 - 16 - 2010

Critical Illness Insurance 101

By Mark Goldstein

Critical Illness Insurance pays living benefits... in one-lump sum... to an individual upon diagnosis of a heart attack, cancer, stroke, kidney failure, terminal illness, the need for an organ transplant, etc.

The key is that payment is triggered by diagnosis. Benefits are not tied to any reimbursement of expenses, like health insurance, and you can use the money in any way you choose... to replace lost income, pay for experimental treatment, pay off personal debts, including mortgages and other ongoing expenses.

There are NO LIMITATIONS on how the money is to be used!

The vast majority of Americans have never heard of Critical Illness Insurance because most insurance agents haven't either! Most agents still prefer to sell mortgage life insurance and yet, according to HUD... only 3% of mortgage foreclosures are the result of death and 48% are the result of a severe financial hardship caused by a serious illness!

A recent study conducted by Harvard University found that 50% of the bankruptcies in America were the result of a medical emergency... and that over 75% of those folks had health insurance at the onset!

You see, you can have the greatest health insurance coverage in America and still get wiped out, because health insurance is designed to cover medical expenses only. It's not going to pay the mortgage or rent, college tuition, car payments, utility bills or buy food for the family. It won't pay your health or life insurance premiums (you better not let those policies lapse when you're critically ill).

This is where the enormous strength of a Critical Illness policy lies... as a source for much needed funds in a time of medical emergency.

Mark Goldstein is president of The Producers Alliance, a national independent insurance marketing organization. His specialty is recruiting, training, and developing top producing independent health and life agents.

Mark was the number one health insurance producer for The National Business Association from 1995 through 1998 and the top agency manager for American Republic Insurance from 1999 through 2001, before launching The Producers Alliance... http://www.TheProducersAlliance.net in September of 2001.

Mark Goldstein can be reached at (877)442-0698 or by email at Mark@TheProducersAlliance.net.

Weekly Past Publication Article July 03 - 09 - 2010

Benefits of a Financial Plan - Retirement Projections

By Lon Jefferies

One of the primary purposes of a financial plan is to identify how clients can achieve their financial goals while exposing themselves to the smallest amount of risk possible. For instance, I recently worked with a couple who just transitioned into retirement. This couple was accustomed to living a lifestyle that required $72,000 of annual gross income. However, this client's million dollar nest egg was cut in half during the bursting of the credit bubble in 2008, and consequently, the clients were incredibly risk averse. In fact, their portfolio was 100% cash, and they didn't want to invest in anything that wasn't 100% guaranteed.

The couple was on pace to receive $36,000 annually from Social Security. Research indicates that a portfolio utilizing only money market investments (3-month Treasury Bills) would have achieve an annualized rate of return of 5.86% since 1970 (and a return of only 3.72% since 1926). Assuming annual inflation equaled 3%, a $500,000 portfolio growing at 5.86% would be able to provide an inflation-adjusted annual income of $28,014 until the clients were 90 years old. Obviously, $36,000 from Social Security and $28,014 of portfolio income would equal a total income of just over $64,000, not enough to enable the couple to continue their standard of living.

Knowing these clients were extremely risk averse, I looked for investment options that would raise annual income but still allow them to sleep at night. I found that since 1970, a diversified portfolio consisting of just 10% stock, 30% bonds, and 60% cash would have averaged an annual return of 7.45%. In addition, during the last 39 years this portfolio had only one year where it did not achieve a positive return, and that was during 2008 when it lost just.10%. Thus, history indicates that this portfolio is extremely unlikely to endure significant losses, but the higher return would provide an inflation-adjusted income of $33,097. This would bring the clients' total projected annual income up to $69,000.

At this point the clients were able to determine if they could be happy living on an annual income that was $3,000 less than what they were accustomed to. As you might expect, it was determined that this income would provide for all their basic needs, but the couple wanted to know what type of portfolio would enable them to continue their exact standard of living. I found that since 1970, a portfolio consisting of 10% stock, 60% bonds, and 30% cash produced an annualized return of 8.36%, which after adjusting for inflation produced an annual income of $36,190, enough for the couple to continue their current lifestyle. However, this portfolio came with a slightly increased level of risk. During the last 39 years, the portfolio produced a negative return twice - a -1.19% return in 1994, and a -.77% return in 1999.

After careful deliberation, the clients decided they were willing to accept the small additional risk of the 10% stock, 60% bond, and 30% cash portfolio in exchange for keeping their anticipated annual income steady. Both clients were further comforted when I pointed out that the 30% cash portion of the $500,000 portfolio ($150,000) would provide over four years of income necessary to supplement Social Security and keep their annual income at $72,000. Thus, even if the markets crashed, they would essentially have four years of cash under their mattress to provide for them while the economy recovered. Further, the 60% bond portion ($300,000) of the portfolio would provide an additional eight years of income if necessary. Consequently, the clients would have over 12 years of funds available without having to touch their investments in stocks, allowing the market plenty of time to recover from a catastrophe. By comparison, it took the U.S. stock market seven years to recover from the Great Depression.

This is an example of how financial planners utilizes retirement planning tools to identify the target rate of return necessary for a client to achieve their financial goals. Financial advisors can then consider that target return when developing a customized portfolio for that client. This process allows the planner to develop a financial plan that will guide the client to the retirement they envision while minimizing risk. Of course, the lower the risk the higher the probability that the plan's projections will come to fruition.

Lon Jefferies is an investment advisor representative with Net Worth Advisory Group, a fee-only financial planning and investment advisory firm in Salt Lake City, Utah. He specializes in developing custom financial plans, implementing investment strategies, and providing ongoing support and service in order to help clients reach their financial goals. He can be contacted at (801) 566-0740 or lon@networthadvice.com. Visit the Net Worth Advisory Group website at http://networthadvice.com and read Lon's blog at http://www.utahfinancialadvisor.blogspot.com.

Weekly Past Publication Article June 27 - July 03 - 2010

Annuities - Facts and Information About Anuity Insurance

By John C Ryan

Weekly Past New Publication Article June 20 - 26 - 2010

First Successor Trustee of a Family Trust
By Norine Peardon

My experience of just recently going through the steps of being the 1st successor trustee of our family trust is nearly complete. Being fresh on my mind, I am taking this opportunity to help the next person who has been appointed in this capacity.

Are you the 1st successor trustee on someone's family trust? When the trust is initiated, be sure you are aware and have a list of the investment assets the primary trustee owns. You should also be presented a full copy of the trust agreement.

On the date of death, go online and record the closing prices of any investments they may hold.

Before you can act as successor trustee, you must obtain a death certificate. This is of primary importance. The next step, generally performed by the trust attorney, is a letter to your county probate court, advising them of the death and that no probate will be necessary because the estate is in trust. To give you the authority to sign the decedent's checks (pay bills, make deposits), you must present a death certificate accompanied with a copy of the trust agreement to the financial institution backing the checking account. The trust agreement gives you the right to handle the decedent's financial affairs and more.

You will now be responsible for arranging the funeral/memorial service of the decendent and paying the decendent's expenses. You should also notify Social Security if the trustee was receiving social security income. However, the Social Security Administration has many other avenues to learn about the death; hospital, coroner, financial institution, funeral home.

Next, you will need to notify the companies in which the decedent has investments informing them that the primary trustee has passed and asking that they forward the paper work necessary to record you as the successor trustee. Filing these forms/papers with your signature will give you the right to conduct business with the investment companies without any tax implications. The decedent's trust attorney should be handling this paperwork. When this paperwork is handled properly, you will receive the death certificate back by way of postal mail. Receipt ensures that the trust company attorney has completed the task of putting you on all the investments of each particular company as "successor trustee". You are now authorized to conduct business on behalf of the decedent in respect to their investments.

You will also have the responsibility to see that the decedent's last will and testament is carried out. This means you will collect any funds received into the trustee's bank account and supervise the disposal and distribution of all assets, property. This includes real estate, personal (car, investments, clothing, jewelry, papers, appliances, etc.) Obviously, no distributions of the estate should occur until all the trustee's financial obligations are resolved.

Some other notes of interest are, a Homestead refund is not allowable for the year of death. If the trustee had ample income, a federal and state tax return may be required, another responsibility of the successor trustee. You will experience serious delay in obtaining the death certificate if the decedent trustee donated their body to research. It will be your responsibility to initiate all calls to the county of death checking to see if the death certificate has been received. You will need to purchase certified copies of the death certificate. You will need one each for probate, bank(s), investments company and extra for family members.

With the above information, carrying out your responsibilities as 1st successor trustee should be less cumbersome.

The author, Norine Peardon, has published many articles and blogs for the Internet. Visit her other articles and blogs at the following: Buying Your First House
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Norine Peardon
Contact Me: norinepeardon4yahoo.com

Weekly Past Publication Article June 13 - 19 - 2010

Keep Your Family Legacy in the Family With a Private Foundation

By Darius Raeisi

How would you feel if your family heirloom has to be given to a complete stranger? Yet again, how would you feel if all or most of your family legacy, trust funds or family estate, that had been in the family for generations, has to be given away to the government as a form of paying a tax? Wondering how you could overcome this particular issue and actually leave your family legacy intact for your family? Then how about reading the following to find out how.

On the contrary to common beliefs that strong family foundations can only belong to people like Bill Gates or the Rockefeller's, you can now create a family foundation and safeguard your family legacies in it. The basic requirement of a family foundation is that it should have sufficient funds in its account on a yearly basis to meet annual contributions and endowments. In the current financial market, if you have an account total of twenty five thousand dollars to take care of, then even you can start your own family foundation. This particular clause is very much limited to estates with a net worth of at two million dollars or more.

When you start such a foundation, you can state that the foundation is either operational or non operational. An operational foundation would have its contributions channeled towards maintaining a facility like a lab or an art museum, while a non operating foundation would act as a channel to fund and support other operating foundations. Any cash contributions made to your foundation is exempt up to thirty percent of the total contributions.

Running a private foundation can definitely come in handy to protect your family legacy. Such foundations are expected to pay a two percent tax on the total investment and a distribution of five percent of the assets that are made on a yearly basis. Though with time, the assets of a private family foundation could diminish. Yearly gifts to your own foundation to replenish the assets without affecting the exclusions under gift tax, can come in real handy.

The best part about such a foundation as against conventional public charity is that you have better control over the functions of your trust. Also, when you register your trust as a non-profit foundation, you can always change your mission and goal statements as and when required.

Darius has been writing online for a while now. He has a wide range of interests and topics that he likes to write about. You can check out some of his websites at http://www.colemanmosquitodeleto.com and http://www.booskitchenislands.com

Weekly Past Publication Article June 05 - 12 - 201o

Index Annuity Explained For the Common Man For a Better Understanding

By Robert C Eldridge Jr

Money is very important to fulfill one's needs and desires. Without money, we cannot hope to live a happy and contended life. And thus, saving money for times of adversity is very important. Today, you are making a handsome amount of money by running a successful business or doing a well paying job. However, this steady flow of income may not last forever as we have seen in recent times because of the recession.

There are various kinds of financial products that help you save for your bad days. One such financial product is an annuity. An annuity guarantees you a fixed income at periodic intervals for the investment you have made over a certain length of time.

Traditionally, there were only two types of annuities available- fixed annuity and variable annuity. However, owing to the popularity of the stock market as a source of making some quick bucks, financial institutions have come up with products that keep the stock market risk at the bare minimum while helping you reap the benefits of it. The name of one such financial product is index annuity.

But what exactly is index annuity. An index annuity is a variant of fixed annuity where the insurance company pays you interest depending on the equity index to which the annuity is linked. In other words, an indexed annuity does not follow any of the traditional models of annuities that is - a fixed rate of interest decided at the time of buying the annuity or revision of the interest rate by the insurance company periodically.

With index annuity, the interest rate fluctuates depending on the index it is linked to. However, the insurance company guarantees you a minimum rate of interest thereby eliminating the risk of the stock market. A popular kind of index that the annuities are linked to by most insurance companies is S & P 500. The rate of interest payable to the customer is calculated by taking into account the value of the concerned index on a day to day basis.

An index annuity may not guarantee you the kind of returns that you could get by trading in the stock market. But then again, it shields you from the volatile nature of the stock market which has destroyed many a people's lives because of its uncertainties.

A perfect example of this is the recent recession. An index annuity protects you from such calamities and makes sure you have a steady source of income at hand at all times. Therefore, it is fast becoming the preferred source of investment option for many and replacing the old mindset of "stock markets can make you rich quickly without working hard".

An index annuity can be a deferred annuity or an immediate annuity. With an immediate annuity, you start receiving an income immediately while with a deferred annuity, there is a lock in period before you can start withdrawing the amount. It is always better to consult a financial wizard to decide on which type of annuity would suit you best.

Click on the link below to learn more about an Index Annuity.

Visit http://www.annuitycampus.com for more Annuity and Life Insurance Tips and Tricks. Call Robert Eldridge directly at 800-643-7544. Robert Eldridge holds over a decade of experience as a multiline agent in multiple states and currently serves on the membership council of the National Association of Insurance and Financial Advisors.

Weekly New Publication Article May 30 to June 05 - 2010

Prevent Your Bonds From Becoming a Greek Tragedy

By Jim L Hudson

It is common sense for everyone to have an annual physical examination. This is a preventive measure to detect early signs of potential health problems. Now what about our financial health? Uncommon sense recommends a yearly checkup for signs of problems with our city, state and county bond holdings. Interest paid on these was free from tax and the principle was guaranteed. Is that fact or fiction?

Prudent asset stewards should immediately investigate to see if their bonds are Greek-style cooking. First, check the current balance sheet. Then it is crucial to examine the projections for revenue versus obligations. Recently the State of California was informed by court order that its budget cuts cannot be compromised, resulting in financial chaos.

Have the referees from the three major rating companies swallowed their whistles? At a minimum they should be warning bond owners of potential stormy weather. Because many cities and counties did not carry super credit ratings they paid insurance premiums to third parties to guarantee principal and interest. The result was less interest paid out on the bonds. Now it appears that current bond rating personnel are unable to see the color signifying danger - red. They only see the primary color of greed and paper currency - green.

Can your bonds survive a stress test? How stable is the health of your bond insurance company? These are relevant and timely questions considering that more than half of our states have larger economies than Greece's. Look at the Greek tragedies cooked up and served as nutritious but exposed five to ten years later as poison.

Again, uncommon sense dictates an immediate check up!

Jim Hudson expert on Tax law enforcement, organic citizen lobbying. http://medusasolution.com/

Weekly Past Publication Article May 22 to 29 - 2010

What to Do With Your Money Once You Have It

By Lark A. Miller

Even if you do not believe in what is going to happen with the economy, there are multiple reasons why it is important to know what to do with your money once you have it. The average American spends 1.05 for every $1 that they make. Do you fall into this "average" American category? Even if you do not, those numbers should shock you. Common sense would say that continuing to live a life of debt will leave you trapped, feeling inadequate and owing the banks for the rest of your life.

Are you debt free? Then you probably have a mortgage, maybe a car payment or are planning to have money when you retire. Do you know how to pay off your debt quicker and retire younger? Going to buy a 24 of beer is not the answer. Neither is working a 9-5 job that you hate just to wait another year for a raise and enjoy the benefits you never use.

We are not taught how to manage our money in school, which to this day is still absolutely impractical. A financial education course should be mandatory. To know how and where to spend your money rather than to know what a rhombus is would be a little more convenient. Perhaps the government does not want us to learn the facts of finances for fear of losing control of their population of sheep.

Staying on top of your finances will not only help you organize your life and your future, it will help you achieve your desired income and goals with this one life that you have on earth. Know what to do with your money once you have it. There is no time to waste, spend your time learning and staying educated. Do not focus on excuses of why you cannot do it. Focus on how you need to do it for yourself, your future and your legacy.

Trying to Figure Out What to Do With Your Money?
Learn From Self Made Millionaires, Start Today
http://www.HonestIncomeOnline.com

Weekly Past Publication Article May 15 to 21 - 2010

Why Does a Bankruptcy Attorney Give a Free Bankruptcy Case Review?

By Jay King

Over time you may have found that society draws a rather adverse picture of bankruptcy attorneys or attorneys in general. Society may depict attorneys as professionals who are greedy and tend to chase money. When you actually start dealing with a bankruptcy lawyer you will most likely find this not to be the case at all.

If you are in a position where filing bankruptcy may be your only solution a professional, a licensed bankruptcy attorney will be your only friend to get you through this trying period. It may surprise you to know that a lawyer will offer you a free bankruptcy case review before they charge you a penny for their service. A typical bankruptcy case review may take from 30 minutes up to an hour.

So why do bankruptcy attorneys, who after all are depicted as these terrible greedy money chasers, offer you a free bankruptcy case review that could take up to one hour of their time? The answer is that this depiction, for the most part, is a myth. A lawyer is there to help you. Your bankruptcy attorney will know how to file bankruptcy in the best possible way for you to take advantage of seeking protection under the US bankruptcy law. Whether it be a chapter 7 or a chapter 13 bankruptcy, your attorney will show you the best way to get through this complicated legal procedure and restore your life to financial freedom.

If you are thinking about filing for bankruptcy, the first step you can take is to complete a free bankruptcy case evaluation online. A bankruptcy evaluation online will only take you less than two minutes. After completing your online free bankruptcy evaluation, you will then be connected to professional licensed attorneys in your area that will provide you with an initial free bankruptcy counseling session.

Bankruptcy is your first step to seeking protection against your creditors under the US bankruptcy law. Here you will find answers to all your questions and all the latest bankruptcy news. Start with a free bankruptcy evaluation online, then move forward with a free case review by a licensed attorney and dispel the horrible myth about attorneys once and for all.

Jay King is a Lawyer of Bankruptcy Attorney. We've all heard of large companies filing for bankruptcy or "going bankrupt" and most of us would think that particular company must be in trouble.

Weekly New Publication Article May 08 to 14 - 2010

Long-Term Care Insurance is About Planning Not Denial!

By Dane Petchul

It may be just denial or just a failure to plan for something that we just don't want to think about. This something (needing help with the activities of daily living) statistically has a 60% chance of utilizing in our lifetime. If you aren't 50 years old you probably haven't given this type of planning any thought. If you're 50 or above and a planner or are in the midst of helping a parent with their activities of daily living, then maybe this has crossed your mind.

There are many misconceptions in what long-term care insurance is and what it does for you and your family. It is like so many other insurances people buy for homes and automobiles. Long-term care insurance protects your family, your assets, your dignity and your ability to make your own decision on where and how care will be given when the time comes.

It is a fact that people are living longer today. Advances in medicine today, prolong lives as well as people are more conscious about their health. The baby boomers of yesterday are quickly becoming the seniors of today. The large numbers of boomers and with their expected longevity, there will be a serious need for medical, home and nursing care.

Are you prepared to pay $6,000 to $8,000 a month for nursing home, maybe $500 a month for assisted-living or even $500 a month for home care? Medicare does not pay for prolonged care. It does pay for some care if the patient is improving and getting better, but not for long-term care.

It is important to become better educated on what long-term care is. It is not just nursing home insurance as it was once thought to be. Clients receiving benefit from their long-term care insurance policies may be living in their own homes. They may still enjoy the theatre, family dinners and outings. Just because they are receiving care does not mean that they can no longer enjoy many of the activities that they used to do.

Denial and just plain "I don't want to think about" or even thinking that "it's not going to happen to me" gets people into trouble. It is the delay and ignorance that has people failing to plan. Long-term care financing and planning is unique to every individual and family. There are many different products that may be a better fit depending upon the individual's situation.

Put long-term care planning as a priority. The younger and healthier you are, the better your rate will be. There is a misconception that you can buy long-term care insurance anytime you want. This is just not true. It is all based on your age and your current health status.

Long-term health insurance should be discussed, and the sooner the better. When doing your research and becoming educated on this topic make sure that you are consulting with an independent broker who represents all the top carriers. Given the fact that studies point out that most people today will expect to live longer, it really is about time for one to consider having long-term health care insurance.

Having such a policy will provide you with a good deal of independence, and it can also help free other members of your family from being financially burdened, and also provide relief from emotional strain.

Before you purchase a long-term care policy, consult with Dane Petchul, LTCP, CLTC, a Long-Term Care Specialist at http://www.LongTermCareInsurancePros.com. You will receive a free, no obligation quote with the costs and benefits appropriate for you and your family.

Weekly Past Publication Article May 01 to 06 - 2010

Bankruptcy Law - Chapter Eleven

By Blake Seidler

Chapter 11 is a law within the Bankruptcy Code typically regarded as appropriate for businesses which include corporations, partnerships or sole proprietors due to the complexity and length of the procedures and also expenses involved. Additionally, you will notice differences within the procedure for the three types of debtor. As with other bankruptcy options, individuals, or husband and wife, looking to file chapter 11 bankruptcy has to undergo credit counseling. Corporations' personal assets are not associated with chapter 11 bankruptcy proceedings aside from the stocks from the company, but partnerships may find personal assets involved and sole proprietors can assume both personal and business assets being susceptible to rulings. Cases designated 'small business' may possibly proceed at a speedier pace and be subject to a lesser number of official demands than other cases, but becoming a small business debts have to be below approximately $2.2 million and have no creditors' committee involvement.

Filing under chapter 11 could be at the debtor's discretion or it might be an involuntary petition filed by creditors. All debtors have to produce to the court with full disclosure statements of of every debt and asset (though the extent of the disclosure statement can vary depending on the type of debtor) and pay fees of more than $1000 and also a repayment or liquidation plan.

Filing a voluntary chapter 11 petition means that the debtor stays in charge of the business and is called the 'debtor in possession'. The debtor in possession has got extensive responsibilities to handle and sees to it that the case moves along. Tardiness can have negative consequences. A US trustee maintains a close supervisory role over the case with regards to the operation of the business mandating reports on all endeavors which include operating expenses and income. The United States trustee may have the case converted under the Bankruptcy code under the circumstance that the debtor in possession be found to negligent in proceeding with confirmation of a plan or else neglect to report adequately for the activities of the business. In addition the us Trustee is paid by the debtor in possession.

Additional officials could possibly be involved in an in-depth on-going chapter 11 petitions such as a case trustee or an examiner who works together with the trustee. Creditors' committees may be formed of unsecured creditors to cooperate with the debtor in possession and could also hire other professionals with the courts discretion.

Chapter 11 requires a repayment plan must cover what types of claims are to be dealt with and how they are going to be addressed. The plan combined with the disclosure statement must provide adequate information for creditors to assess the viability of the plan. There is an opportunity to vote by ballot to the creditors who cannot necessarily anticipate full repayment under the plan. Additionally, creditors have the ability to provide other plans.

Following filing, you have the regular period in which an automatic stay will come in to act regarding the actions on most creditors. Then again, some secured creditors can petition the court for the right to foreclose on property under special instances such as in the case of single asset real estate debtors. This sort of action on the part of creditors and other possible motions related to stays can be forestalled by the confirmation of a plan or commencement of repayment of interest on debt to the creditor.

Compliance to the requirements of a confirmed plan usually leads to discharge of debts accrued before confirmation. But, under chapter 11, only individuals are granted discharge by means of confirmation to a liquidation plan.

Blake Seidler is an expert on San Antonio Bankruptcy. He has worked in the legal field for over ten years. His main focuses are on San Antonio Chapter 13, Chapter 7, Chapter 12, Chapter 11, foreclosure defense, and credit card defense. For more information please visit his site, San Antonio Attorney.

Weekly Past Publication Article April 24 to 30 - 2010

Understanding Your Investment Style

By Wesley E Anderson

Before you invest in anything, you must understand your tolerance level and how much you are willing to invest. In addition to this, you will need to choose your investment style so you can be sure to know how much you are willing to invest and how soon you need this investment.

If you are the type who do not wish to take much risk, then you will more than likely invest with a conservative approach. If you are a more aggressive type of investor, then you will more than likely take a very aggressive approach in your investing. Ultimately, your budget and financial will help you find out if you are a more aggressive, moderate, or conservative investor.

If you are in your early twenties and you are trying to build a retirement fund, then you will most definitely want to take a more conservative approach to investing. However, if you are trying to buy a home, or help your child through college or prepare for college, then you will want to step it up just a little more.

Most conservative investors just want to maintain what they originally invested. Meaning that if they invest $1000 into a vehicle, then they at least want to get that back in return so that they can break even and start all over again. The typical strategy for this is usually stocks and bonds and options.

Most common returns that conservative investors make are usually interest earning savings accounts. A more moderate investor will diversify their funds a little more than the conservative investor. They will put a portion of their funds in one vehicle and then put the rest into a more aggressive investments that will help bring in money that will yield them higher returns in a short amount of time.

A more aggressive investor is going to take much more risky attempts than both a conservative and moderate investors. They are going to take higher amounts of money in riskier accounts because these accounts usually bring back higher yields of return. This is either over a long period of time or a short period of time. Either way they are going to be aggressive about it.

What you will ultimately want to do is make sure that you have a plan of action as well as a nice budget to determine whether you are going to invest conservatively, moderately, or aggressively. Your goals will give you a good idea of what means you should take.

Visit my site for more information on financial tips.

http://www.adsensemoneymakersites.com/finance/

Weekly Past Publication Article April 17 to 23 - 2010

Cut Your Inheritance Tax Liability by Writing Your Life Insurance in Trust

By John J Doherty

Writing a life insurance policy in trust is a simple procedure involving no more than filling in a form at the time when the life policy is being set up.

There are several advantages to setting your life insurance up in trust, which could save both time and money - possibly many thousands of pounds - for your dependents, when you are gone.

What is the meaning of 'in trust'?

By setting up your life insurance policy in trust, you remove the life cover from your 'estate'.

Your estate is your entire wealth, including insurances and savings, and less your debts and liabilities.

Inheritance Tax of 40% would normally be due on any part of the value of your estate which exceeds your Inheritance Tax allowance. Today (2010) the Inheritance Tax allowance is £325,000 for an individual, and £650,000 for a couple.

This means that if, for example, a widow's estate was valued at £425,000, taking away her allowance of £325,000 would leave £100,000, so that Inheritance Tax at 40% would give the taxman £40,000.

A large payout from a life insurance policy would clearly boost the value of your estate considerably, and could result in a large Inheritance Tax liability.

Probate and 'red tape'

Another advantage to placing your life insurance outside of your estate is that the policy payout avoids becoming 'bogged down' in the whole process by which solicitors establish probate, and which can take from three months to three years.

The payout can therefore be made immediately, avoiding long delays for your family and ensuring their financial wellbeing at a difficult time.

About Us

Principle First Chartered Financial Planners is one of the leading UK independent financial advisers and distributors of mortgages, insurances, pensions, investments, and ISA accounts. In 2008, Principle First became one of the few financial advisers to achieve the status of Chartered Financial Planners, the UK's 'gold standard' in financial advice. Find financial planning advice at principlefirst.co.uk.

Weekly PastPublication Article April 10 - 16 - 2010

What Steps Does Your Tax Return Preparer Take to Reduce Your Audit Risk?

By Thomas Wheelwright

The last few weeks I've been sharing questions that you can ask your tax preparer to determine whether or not your tax preparer is right for you.

Does reading this question make you wonder if your tax preparer is doing everything possible to reduce your audit risk?

Many people have a fear of being audited. Here are some common concerns I hear:

They are worried their tax return has errors They are concerned about being able to provide the required information They fear the cost. Most people focus on the cost of taxes, penalties and interest that could be owed, but what about the cost of hiring a tax professional to handle the audit? Professional fees incurred during an average audit are 10 to 15 times the fee to prepare your tax return!

The IRS Is Stepping Up Its Efforts Now, there are even more reasons to add to the list. The IRS is stepping up its efforts to increase overall compliance.

The IRS is performing 3 times as many audits as they did just a few years ago Plus, due to the current economy, the IRS is expected to continue to increase the number of audits performed.

The IRS recently announced its commitment to examine 6,000 business returns. The IRS will focus on payroll tax and employment issues, including worker classification (like independent contractors), officer's compensation, fringe benefits and non-filers.

The IRS is also stepping up its efforts with respect to tax return preparer compliance. The IRS is sending letters and visiting thousands of tax return preparers to, among other things, discuss common errors.

By the way, one of the common errors being discussed is reviewing pertinent books and records of the taxpayer. If you read my report last week, this is one the questions I suggested a tax return preparer be asked!

With these increased efforts, audit risk is a must to discuss with your tax preparer.

Here are a few things to look for to determine if your tax preparer is taking the proper steps to minimize your audit risk.

Does your tax preparer ask you questions? Questions indicate that your tax preparer is trying to verify information and gain a proper understanding so your tax return is filed accurately. One of the reasons returns are audited is because information is wrong.

Does your tax preparer have the expertise you need? Having a tax preparer who knows the ins and outs of your industry makes a difference, especially when it comes to filing an accurate tax return.

For example, some industries must make certain tax elections in order to properly claim tax benefits. A tax preparer with expertise in this type of industry will know the rules, and will know the questions to ask you to make sure the election is properly filed.

Even the IRS is concerned about tax preparers knowing the rules. Starting this year, all tax return preparers must register with the IRS, and in some cases, some must even pass a test.

Does your tax preparer discuss filing strategies with you? Often times when I file a tax return, there are certain things that can be done to minimize audit risk.

For example, let's say there is a larger than usual deduction to claim. There are some situations in which a large deduction can draw scrutiny from the IRS. This is an example of a situation where filing strategy can help minimize audit risk.

First, where the deduction is claimed on the tax return can impact audit risk. In this situation, I would ask the taxpayer questions about the deduction to get a better understanding so I could then determine which rules apply. In many cases, more than one set of rules applies and that can provide an opportunity to reduce audit risk.

Second, voluntarily attaching documentation to explain the larger than usual deduction can impact audit risk. If the return is flagged because of the large deduction, an agent will review it and the additional documentation may resolve the issue with no further action taken.

Does your tax preparer offer an audit defense plan? An audit defense plan covers professional fees incurred in connection with an income tax audit, examination, review, investigation or verification of any item(s) on your federal or state income tax forms.

While an audit defense plan does not insure you will not be audited, it does insure that the professional fees to handle a federal or state income tax audit of a tax return are covered. The audit defense plan also includes responding to federal or state notices received.

When a tax preparer offers an audit defense plan, it indicates the tax preparer is thinking about audit risk and has an incentive to minimize it.

The IRS is performing 3 times as many audits as they did just a few years ago Plus, due to the current economy, the IRS is expected to continue to increase the number of audits performed.
http://www.ProVisionWealth.com

Weekly New Publication Article April 02 -09 - 2010

Income Tax Refunds - 5 Tips For How to Best Use Your Income Tax Refund

By Brian G. Methner

As you're waiting for your income tax refund to arrive, you may be making all sorts of plans for how to spend it. Depending on the refund amount, you could be dreaming of a vacation or of replacing your entire wardrobe. Before you sign away your tax check, here are five practical tips for how to best use your income tax refund.

1. Chip Away at Mountainous Debt: Debt on which you're paying high interest rates and can never make more than minimum payments toward may feel like a mountain in the way of your future. If you've received a large tax refund, you could lower that mountain substantially and save yourself thousands in interest. Paying down that debt now could mean the difference between enjoying, rather than simply enduring, your financial life later.

2. Plan for the Future: If there's tax refund money left over after you pay off debt, think what you could invest in that could substantially change your future. Perhaps you'd like to finish college. Is a certification keeping you from a higher earning level? What maintenance would make a big difference if you had to sell your home? Think "long-term benefit" before you give in to instant gratification.

3. Beef Up Your Retirement Funds: Many of us lost money from our retirement funds in the recent recession. Depending on your retirement investment vehicle, you may be able to make a lump sum addition without tax implications. You can find tables online to determine whether some of that tax refund could benefit your retirement.

4. SAVE! How's your Personal Savings Rate? If you're like many Americans, you're trying to save more right now, but still don't have enough put away to stave off an emergency like unemployment. That nice, fat tax refund would look great earning interest, and might go a long way toward easing "what if" anxiety.

5. Balance "Want" with "Need": If you're determined to spend part of that tax refund on something other than what we've discussed, consider spending a small percentage on what you want and using the rest for what you need. Delayed gratification is, after all, the skill that's required to build wealth and avoid debt.

Receiving an income tax refund may have triggered reckless financial behavior in the past, but it doesn't have to this year. You have the ability to spend, save and invest responsibly, and this is a good time to exercise it.

Before the tax refund check comes, sit down and make a plan for how you'll use it. Try to prioritize how it's spent or saved by defining the long-term value. You'll soon find that taking charge of a windfall is a much better feeling than wondering where your tax refund went.

You can find related topics and additional information on the Methner + Associates interactive blog at http://www.askmethner.com. Here you can submit your legal question and have it answered by an attorney in a post within 2 business days.
Anyone needing direct advice can schedule a free 30-minute consultation with an attorney right away at http://www.methnerlaw.com/contact.html or by calling (303)293-2828.

Weekly Past Publication Article Mar. 27- April 02 - 2010

Unsecured Business Loans - For Your Every Business Need

By Antonio Vargas

Most of the business person looks out for the finances to meet increasing requirements of their growing business. In such situation unsecured business loans offers the best way to meet the any need related to your business such as the purchase of equipment, remodelling, business expansion, marketing etc. One can easily get the approval for these loans without pledging their property to get the additional finance for any of your personal purpose.

Before taking these sorts of loans you must got to be prepared and organized. You must calculate the amount you need and make a plan for making its instalments. To get the amount firstly you have to convince the lender that you have the capability to repay the borrowed funds. These finances come with easy repayment term that varies from 1 to 10 years. So, you must select your repayment schedule that suits your budget.

Unsecured business loans help borrowers to:

• Start small business
• Purchase land and other equipments for setting up business
• Expand current business units
• Research and development
• Paying off various business debts
• Give salary to employees or other benefits

Through these risk free financial help you can take the amount ranged from 1,000 to 25,000. Lending institutes also offer you these funds for the infrastructural development of your business. You must note that these funds come with slightly higher rate of interest because of its unsecured nature.

These credits offer you various benefits like:

• No home or asset is required for getting loan amount
• Great amount and flexible terms
• Minimum paperwork
• All credit reports are considered
• Quality service from business experts
• Spend the amount as per your need

You can get the required funds swiftly with the help of free online quotes. On net you will find various lenders who offer you required finances for business purpose without much hassle.

Antonio Vargas is an experienced author who is providing his valuable suggestions to unsecured loan in the UK from a long period of time. You can get his precious ideas regarding unsecured business loans, unsecured loans for bad credit, unsecured loans, unsecured tenant loans and unsecured business loans.

Weekly Past Publication Article Mar. 20- Mar. 26 - 2010

Guaranteed Personal Loans Shaping Your Life

By Hal Johnson

From a big home theatre system to planning a vacation abroad, it is these guaranteed personal loans which make us see through the light of the day. High interest credit can easily be paid off through these loans. Credit card companies charge a high interest rate when you miss a payment or two and often it is in the range from 20-30%. So, a personal loan comes in very handy here.

A guaranteed personal loan may even be used for starting a small business. Tell you what if you have a business mind it is not at all a bad investment. First time loan amount is lesser than the subsequent ones. But once you prove your point and show your reliability in paying back your dues, you get bigger loan amounts.

Online route for guaranteed loan services is a tad better because it saves you the trouble of leaving your home. To get a loan sanction you have to meet some specific criteria. Lenders are normally looking for customers with a basic salary and a good credit score. Some of the documents that are required to be released by the customers include: proof of income and proof of tenure of service with existing employer. Needless to say, your credit score does influence the amount of loans sanctioned by the banks.

These loans are a great help during pay days or in those days when you don't get a regular income. The loan amount can be delivered to you either as direct deposits in your bank or through cheques by mails. You can also get your repayment debited from your bank account for convenience. Always make sure you repay in time to avoid late fees. The good thing here is that the repayments are facilitated at lower interest rates. So, they are affordable to the borrowers.

A decade ago one wouldn't have thought that you might be able to get a guaranteed loan for getting rid of financial worries. Today, these loan prepositions occupy a major portion of the newspaper giving best of offers for guaranteed personal loans. If it weren't for the internet, millions of loan seekers around the world would not have so many options available for them. In a matter of minutes you can accomplish so many things which previously would have consumed a lot of time. All in all, these personal loans dictate the lifestyles of people be it for starting a business, paying off your credit card debts, planning a holiday or for any other intention.

My name is Hal Johnson. With the current economy I needed some loan quotes. My friend referred me to an online portal called MrQuotes. MrQuotes is your best resource for information on almost anything! Click to fill out a simple loan questionnaire and they will help you find the best deal at no cost to you!

Weekly Past Publication Article Mar. 03- Mar. 19 - 2010

Veterans Disability Compensation - How to Prove a Claim For Post-Traumatic Stress Disorder (PTSD)

By Christopher Attig

Many veterans suffer from a condition known as Post-Traumatic Stress Disorder, or PTSD.

PTSD is a mental health condition, which, according to the American Psychiatric Associations Diagnostics and Statistical Manual for Mental Disorders, Fourth Edition (DSM-IV) is: "[T]he development of characteristic symptoms following exposure to an extreme traumatic stressor involving direct personal experience of an event that involves actual or threatened death or serious injury or other threat to one's physical integrity...[the response to which is] intense fear, helplessness, or horror."

This medical condition often does not appear for weeks, months or years. Whenever a Veteran is diagnosed with PTSD, however,service-connected PTSD surfaces, it is a compensable condition and the veteran is entitled to disability benefits.

Military Veterans often find it difficult to prove to the VA that the PTSD is service connected. I hope that by outlining the general requirements for proving a claim for PTSD to the VA, more veterans are able to secure compensation for what can be a horribly debilitating disease.

There are three (3) factors that a veteran must show to secure disability compensation for PTSD:

1) Obviously, the veteran must be diagnosed with PTSD. So, the first requirement is that the Veteran provide medical evidence of this diagnosis. The VA often misdiagnoses PTSD; if you feel that a VA doctor has misdiagnosed you, you can always seek evaluation by a private psychiatrist or psychologist.

2) Next, the veteran must proved that the trigger, or stressor, for the PTSD, occurred in service. This is called the "in-service stressor", and there are two very different sets of rules applicable to those Veterans that experience a Combat Stressor, or those veterans that experience a non-combat stressor. The evidence needs to be credible - something or someone to corroborate the in-service stressor is always helpful, but corroboration is not the only thing that makes a particular version of events credible.

3) Lastly, you will need to prove the connection, or linkage, between the diagnosed PTSD and the "in-service stressor". This is often the hardest element of the three to prove. Usually, evidence from a lay or medical expert who opines that the in-service stressor was a "contributing factor" to the symptoms of the PTSD should be enough to secure service-connection for the PTSD connection.

If you are a US Veteran heading out to Iraq or Afghanistan, you should anticipate a strong likelihood that you will return from your service with PTSD. I strongly recommend that before heading overseas, you have an independent psychologist or psychiatrist do a "baseline test" for PTSD. Do not provide this test to the military, and do not use a military doctor. Save the report at home with your important papers, and when you return, if you are diagnosed with PTSD, you should be able to prove, convincingly, that the PTSD was caused by military service.

If you are a U.S. Veteran and have questions about your service-connected disability benefits or VA claims, contact an experienced Veterans Disability Benefits attorney.

Weekly Past Publication Article Mar. 06- Mar. 12 - 2010

Buy-Sell Agreement Trigger Events

By Z. Christopher Mercer

Buy-sell agreements are designed to accomplish one or more of the following objectives from one or more of several viewpoints: the corporation, the employee-shareholder, the non-employee shareholder, and any remaining shareholders. The buy-sell agreement provides for what happens to the shares of owners who leave, for whatever reason, whether favorable or unfavorable.

From the corporation's viewpoint, the agreement may prevent the departing shareholder from retaining his shares. By requiring a departing shareholder to sell his or her shares to the corporation, the corporation and remaining shareholders eliminate any potential for conflict over future corporate policies with the departed shareholder. They also eliminate the potential for the departed shareholder to benefit from future success of the business created by the remaining shareholders. Finally, the agreements prevent a shareholder (or his or her estate) from selling shares to "undesirable" parties, enabling the remaining shareholders to decide who the next shareholder will be, if any. These reasons for buy-sell provisions apply to virtually all trigger events.

We use "QFRDD" to denote common trigger events for buy-sell agreements.

If you think about the events suggested by QFRDD, none of them are very pleasant to talk about, particularly to a group of shareholders who may have just come together for a common business purpose. In fact, circumstances could be such that the shareholder most affected by a trigger event has a proverbial gun to his or her head. In the alternative, the company may perceive that it has a gun to its head in order to fulfill the repurchase requirements of an agreement.

Think of QFRDD to remember.

Q - Quits. A buy-sell agreement may provide a mechanism for shareholders who leave a business to sell their shares to the corporation or other shareholders. Shareholders may quit under a variety of scenarios, some of which are more favorable to the corporation and other shareholders than others. The circumstances of quitting may determine how the departing shareholder is treated under the terms of the agreement.

Favorable circumstances. A shareholder may decide to leave a company to pursue other interests that are not competitive with the activities of the company. Assuming the ability to fund the purchase, the company and remaining shareholders are likely to view such a departure on favorable terms.
Unfavorable circumstances. Alternatively, a shareholder may decide to leave a company and to pursue competitive activities. Under such circumstances, the company and remaining shareholders may be reluctant to pay full price (whatever that means - to be determined as we proceed) and desire to stretch out payment as long as possible. After all, no one wants to finance a competitor!

F - Is Fired. When an employee-shareholder is terminated, most corporations desire to retain control over the shares.

Terminations generally result in diverse, or more likely, adverse interests between the fired shareholder, the corporation, and remaining shareholders.
From the employee's viewpoint, the agreement assures that his or her shares can be sold at the buy-sell price and creates a market for the shares.
From the corporation's viewpoint, buy-sell agreements create the right, or the obligation, to purchase the departing employee-shareholder's shares.
They also eliminate the potential for the terminated shareholder to benefit from any future success of the business created by the remaining employees and shareholders. Some agreements call for a penalty to the valuation in cases of termination, particularly for cause.

R - Retires. The retirement of an employee-shareholder creates a potential divergence of interests between the shareholder and the corporation.

The shareholder may desire current liquidity over the uncertain future performance of the corporation.
The corporation may desire not to have potential interference or disagreement with corporate policy, or to have the retired shareholder benefit from future appreciation in value.
Further, the corporation and the remaining shareholders likely do not want a retired employee to continue to benefit from their ongoing efforts.

D - Disabled. After a defined period of time, the corporation may have the right (from its viewpoint) or the obligation (perhaps, from the employee's viewpoint) to purchase the disabled employee's shares. If disability is a trigger event, it is essential to have a clear definition of what "disability" means.

D - Dies. The death of a shareholder creates issues that are often resolved by buy-sell agreements.

If a shareholder dies owning a minority interest in a corporation for which there is no market for its shares, the illiquidity of the stock can create estate tax issues.

The shares must be valued for estate tax purposes, and the appraisal amount will add to the estate's value.
To the extent that the estate is taxable, there may be no liquidity to pay the estate taxes.
Buy-sell agreements provide a mechanism for determining the value of shares for estate tax purposes and for monetizing that value for the estate, generally in cash or in a term note.
Therefore, the shareholder's estate realizes liquidity and can pay taxes due and does not face the combination of uncertainty of independent valuation and the certainty of payment of taxes in the absence of liquidity.
From the corporation's viewpoint, the agreement eliminates the need to address uncertain ownership dictated by the deceased shareholder's will and can create the requirement for funding.

If the parties agree, buy-sell agreements also operate in the event of the divorce, declaration of insolvency, or bankruptcy of one or more shareholders (or even the corporation). In the event of the divorce of an employee-shareholder, the buy-sell agreement will most likely be designed to prevent the non-employee spouse from realizing any ownership in the stock of the corporation. If an employee declares bankruptcy or becomes insolvent, the corporation may exercise its right to purchase the shares to prevent their dispersion to creditors.

It should be clear from the above that buy-sell agreements can be favorable from the viewpoints of employee-shareholders, non-employee shareholders, the corporation, and any remaining shareholders in many diverse situations. The emphasis is on "can be" because the operation of an agreement can go awry despite the best intentions of its creators.

In conclusion, buy-sell agreements are designed to provide objective means of transferring ownership in controlled and pre-determined ways under specified circumstances that may be difficult.

In the absence of a workable agreement, the remaining shareholders and the corporation may be placed in the unenviable position of negotiating under adverse circumstances with former friends, their families, or their estates.
Such negotiations, which would occur after the interests of the parties have diverged, are difficult, fraught with uncertainty, and often lead to litigation.

Workable buy-sell agreements are the cure for the potential problems enumerated above.

Do you have an effective buy-sell agreement? Do you need one? Will the one you have accomplish your desired goals when it is triggered? For information, from a business valuation perspective, to enhance, improve, and help ensure that your buy-sell agreements (or those of your clients) provide reasonable and workable solutions, go to: http://www.buysellagreementsonline.com now!

Weekly Past Publication Article Feb. 27- Mar. 05 - 2010

Is it Wise to Get a Child Life Insurance?

By J.J. Yong

Do you ever considered buying life insurance for your child? The best reason to have a child insured is in the event of their death. The child insurance policy will cover their final expenses, such as their medical bills, funeral and cemetery costs. However some insurance companies claim that child life insurance helps to protect your child's future.

Many insurance companies also offer riders for children as a rider to their parents' Insurance coverage. And also there are many types of insurance policies which allow the children to "change" their desired types of Insurance after age 18.

An Insurance trust is useful for the case of under-age children. This is to protect the benefits which you have setup for your children by making sure that they are used the way which you have planned for. You can also appoint a guardian to take care of the trust after your death if your children have not reached their authorized age at that time.

It is very critical to ensure that your trust is made in writing, better still if it is witnessed by a legal lawyer; the Insurance company should be made aware, as well as the allotted trustee, of the arrangements of the trust.

If you have a special needs child who is unable to support and care for themselves, a special needs trust is necessary to be set up in their name using your life insurance funds to pay for their care. With the special needs trust, the trustee can pay for everything except for essentials, such as food, clothing, shelter and medication, which should be covered by Social Security instead.

However many insurance companies believe that a child insurance is not as important as an adult insurance because children cannot generate income and also statistics shows that majority of children do not die prematurely, before age 18.

But there are some key benefits which I wish to share here as far as child insurance plan goes;

a. Child insurance plan is very affordable as the premium is very cheap
b. Most of the insurance company offered coverage through their adulthood
c. The child Insurance is allowed to be converted into adult life insurance after the age of 21 within the same insurance company
d. Child Insurance is especially beneficial if you are aware of any genetic or medical conditions which would later manifest into their childhood, which would make the purchase of an insurance very difficult to be obtained later on.
e. Getting a child life insurance policy helps to ensure the financial security of your child's future.

So, whether getting a child insurance is a wise decision or otherwise is very much depends on the individual and also the situation and age of your child.

For more information about life insurance information and term life insurance quote, visit LifeInsuranceEssentials.com.

Weekly Past Publication Article Feb. 21 - Feb. 26 - 2010

Understanding Financial Planning During the Retirement Years

By Ozeme J Bonnette

Here are some ideas to help you make sure that you are ready in retirement - 60s and beyond.

In our retirement years, we need to be well-prepared. We no longer have jobs, and we are now living with a fixed income. This applies whether we have money coming in monthly or if we are drawing money out of a lump sum in an investment account.

At age 70 ½, the government begins requiring mandatory distributions from all tax-deferred retirement accounts, such as a 401(k) or IRA. There are penalties for not withdrawing the money, even if we don't feel that we need to use it. Our custodians can let us know how much is required to be withdrawn each year.

We should invest retirement money in conservative, and somewhat stable, vehicles. This is the only way to ensure that the money will last as long as we do. This does not mean that we switch all of our money to money markets, CDs, or bonds. The growth offered by those vehicles will not be sufficient to keep up with inflation, and we are very likely to outlive our money.

Nevertheless, we do need to understand, based on the growth of the funds in the account, how much we can take out regularly without depleting the account too soon.

The best way to curb any potential mistakes is to create a budget. Many people look at budgets as a bad thing, but a budget is the key to maximizing your income.

This is also a great time to review all insurance to make sure that we are covered in every area.

Before retiring, we should find out what type of medical coverage we will have upon termination of our employment. Some employers offer full medical coverage after an employee works a certain number of years. Some people retire just short of the time they needed to get full medical benefits in retirement.

If our employer's plan does not offer full coverage, we should find out what we need to do to get supplemental coverage.

Now is also the time to look into long term care insurance. There is a high possibility of needing long term care at some point during our lifetime. As health care costs continue to increase, the out-of-pocket cost of long term care can greatly reduce any retirement savings we've accumulated.

There are several options available in a long term care insurance policy. We should review the options and choose what works best for our family.

We should also update all estate planning documents. These include our living trust, advance health care directive and power of attorney.

Someone should be assigned to handle our affairs in the event that we are incapable of doing so. If we don't take care of this critical issue, the courts can assign someone to handle it for us.

Ozeme J. Bonnette is a financial coach, speaker, and author of Get What Belongs to You: A Christian Guide to Managing Your Finances. Her focus is on increasing financial literacy among adults and youth around the U.S. She earned 3 Bachelor's degrees at Fresno State, and her MBA at UCLA's Anderson School. Her blog is http://www.povertynorriches.com. Reach her at ozeme@thechristianmoneycoach.com.

Weekly Past Publication Article Feb. 14 - Feb. 20 - 2010

No Load Term Life Insurance - A Policy That Will Save You Money

By Eddie Lamb

No load term life insurance is type of insurance coverage that you may have heard of discussed before, but never really figured out exactly what it entails. This particular type of insurance is just a non-commissioned based form of life insurance coverage.

This actually changes up the options on how you can obtain a policy as well. Instead of having to go through a specified insurance agent, you can actually receive coverage in different ways. You can still purchase the insurance through an agent, but you can also purchase the coverage over the phone or even in an application that you send through the mail.

However, do not think that simply because you're not seeing an agent or no physical agent is present on the other end that a policy is a no load policy. Regardless if you are purchasing no load term life insurance or any type of insurance for that matter, ensure the "advisor" that you are speaking with is a licensed insurance agent.

The only difference is that the company is not the one that is held liable for paying the advisor that showcased the policy for you. Instead, normally on your first month's premium there is an amount that states this will be the fee for the advisors costs. However, after the advisor's costs have been paid many people notice that this particular type of insurance actually has extremely low premiums.

One disadvantage many people would say about the no load term life insurance policies is that unlike a whole life insurance policy where your money builds cash value, you have no cash value with this policy. But, on the upside your premiums are going to be less expensive then with another type of life insurance policy.

With the fees for the policy being less, you can actually set aside your own stash of cash. Or, perhaps start a bank account that goes to your family for funeral or other expenses after you pass away. In fact, this is a very attractive feature that is making a lot of people consider obtaining one of these policies.

Be aware, that not all states offer no load policies, so you will need to ask several different insurance agents or research the laws of your state to see if these policies are allowed where you reside. You will also still have to answer different medical questions and you may be asked to submit a physical in order to evaluate your current medical conditions.

One of the major advantages of the policy is the fact that you have lower premiums. However, many have retorted that one downside was the fact that when it comes to asking questions or filing claims you have to do this on your own, because once the policy is in effect, some advisors do not keep in touch as much as they should.

If an advisor does stay in touch, you may have to end up paying a fee for a service that they render to you. However, if you are a well organized person and would prefer to pay less for your life insurance, this policy would actually suit you well.

There are a few factors to consider when weighing up whole life vs term life insurance. You may find a term life insurance calculator helpful in this regard. To get a better picture of what's involved, check out our free resources now!

Weekly Past Publication Article Feb. 07 - Feb. 13 - 2010

Finding the Best Health Insurance - How to Find the Coverage You Need the Right Way

By Andy Ryan

Getting a number of choices for health insurance quotes is a struggle as we would like to have as many choices as possible but all you keep finding is expensive insurance. Does this sound familiar?

For the past year the economy has slowly crept up towards recovery. More businesses are getting up on their feet and some are starting over. One of the most booming investments is on health insurance. This is a good time to get one as insurance companies compete and so they lower their rates and provide discounts and other perks. If you want cheap cover do not go to the first company you come across.

Do not ever be impulsive and be enticed immediately by these promos. Instead, take time to choose wisely and formulate a list of requirements or criteria that to guide you in your decision.

As you may well be already aware, states do not have the same health insurance rates and deals. In a bigger state you will have a lot of insurance companies to choose from and a lot of discounts. On the other hand if you live in an expensive areas with high insurance and health costs quotes are similarly high and you will need to look further.

This information allows you to be a little more specific in your searches. If you are in a big state then you will definitely have a lot of options.

To get a better idea of the various insurance prices in your state the method of comparison is the most effective way to do it. Searching online and plotting perhaps your top 10 or 20 companies would be a great start.

Compare each of the company profiles, their rates, quotes, coverage, and term policies. Insurance comparison companies themselves provide us with websites that show all details we need about health insurance.

Two pertinent details that you need to be mindful of is the type of policy and the payment plan. Always remember that these two are dependent upon your decision and your decision should be appropriate in a way that it suits your monthly income and your health as a whole.

Do take advantage of this convenient method of comparing health insurance. It ultimately plays a major role in choosing the best insurance and in saving you a lot of money.

Here is the best resource for Inexpensive Health Insurance, for the cheapest health insurance just click here

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

Weekly Past Publication Article Jan. 31 - Feb. 06 - 2010

Financial Freedom at Retirement Age

By Stephen Yates

Last week the U.S. House of Representatives passed Barney Frank's financial regulatory reform bill, or as Democratic Congressman Brad Sherman called it, "TARP on Steroids." This action seems to reflect the overall mindset of what is currently going on with many of our "Bail-Out" processes.

It is not my intention to jump on a soapbox focused on constitutional principles about thousands of supporters for those same principles and the limited, principled governance of our founders to help restore our Constitutional Republic as it were. Enough has already been said and done in that arena.

Instead, I would be amiss if my thoughts and ideas about obtaining financial freedom once one retires or is thrown into that situation at our age. According to online sources, in the United States, unemployment in people over 65 years of age is already at its highest level in over 30 years.

This fact alone gives me a certain uneasy feeling and I feel that we all need to focus on the issues that are problematic to us today instead of worrying about how we can defeat Obama in 2012 and make changes then. It will do little good to defeat Obama in 2012 and leave the current economic situation at home unresolved.

OK now that I have said my two words on the Constitution and Obama, let me ask the real question. Can you survive this economic turmoil without fear? If your answer is NO or MAYBE, then action toward securing financial freedom is a must.

Are you truly ready to learn how to build a residual income for life?

I will strive to find this and many more answers for my retirement friends and will report back with good news or at least hope for our future.

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

Weekly Past Publication Article Jan. 24 - 30 - 2010
Personal Finance

A. Save Or Invest?

By Jon Hope

So you have no debts. You have some money to spare. You want it to earn money. First, understand that saving and investing are different - very different. But they are often confused, even by the government. The Treasury confuses them by usually calling its tax-free deal an 'individual saving account' or ISA. Some ISAs are savings accounts, but many others are in fact investments. National Savings & Investments - which you should surely know as it has both words in its name - uses the terms interchangeable. It calls its 'passbook savings account' an investment account and says it's saving certificates offer a 'range of investments terms'. But the difference is vital.

If you save, your money remains yours. If you invest, your money belongs to someone else. It is that simple - and that important.

Here is how the difference works. Let us assume that you have £1,000 to spare. You go online and open a savings account. You transfer the money into it. The £1,000 remains yours. You have lent it to the online bank. A year later, you need the money back. You go online and transfer the money back to your current account, visit a cash machine and take it out. And the bank has added £50. It takes £0 tax which leaves you with a profit of â,¤40 - for no work. Magic!

For the whole year that money was yours and it was not at risk. You could always get it back. Alternatively, let us imagine that you have heard wine is a very good investment. So you go along to a wine merchant and speak to Justin Oenophile, who recommends a case of 12 bottles of fine Bordeaux, from a chateau called Bonterroir. It costs â,¤1,000, which works out more than £80 a bottle. But you have heard that the price of fine wine has doubled in the last year or so. You take the wine home and put in the cellar or more likely the cupboard under the stairs. A year later, you need the money back. You have resisted drinking even one bottle of the Bonterroir but you cannot take the wine to the bank and cash it in, you have to sell it. But when you go back to MR Oenophile, who warmly recommended that particular chateau, told you how well it had done and said that if he was investing in one case of wine that would be his choice. He now says that for some reason there is a bit of a glut of wine from that particular part of Bordeaux. He continues muttering, saying something about grape varieties and soil conditions and finally but reluctantly offers you a take-it-or-leave-it £450 - and that would be making him no profit too. You have just lost £550. That is the difference between saving and investing. And just because most investments like pensions involve money rather than wine that does not mean that the money you use to buy them is still yours. It is not. Just as when you buy wine, the money becomes someone else's. The investment is yours. To get your money back depends on their honesty when they sell the investment, and whether someone - anyone, will want to but it when you sell it - and at what price.

So if you have money to spare or you want something in the future and you are 'saving up' for it, should you save or invest? The answer you will get from most financial advisers is 'How much are you prepared to risk?' Often they use the word 'appetite', as in 'your risk appetite', or even ask you 'What is your appetite risk?' Most people have not got a clue, nor do they really understand what is being asked. In fact most financial advisers do not fully understand risk. When you consider whether to save or invest the only question you should ask yourself is 'When will I need this money?' If the answer is within one year, you should save. If it is in 40 years time, you should invest. If is somewhere in between, it depends. Up to about five years, saving is always the answer, and even up to ten it can be the right thing to do. over that and you might think of investing. That is where the difficult choices begin.

SAVING ESSENTIALS

Saving should be so simple. You lend your money to the bank or building society; it pays you for the loan by adding a certain percentage to the money you lent. It is like rent for using your money and it can be paid every month or every year or, sometimes, when you take back the money you have lent it. Because interest is expressed simply as a percentage, comparing one saving deal with another should be very easy. Interest at 4.5per cent should always be better than interest at 3.9per cent but worse than interest at 5.2per cent (if you are saving, of course: if you are borrowing the opposite is true). And so it used to be. But over the last 20 years the banks and insurance companies (Who actually invest more than banks) have tried out every means they can devise to make it complicated, difficult and confusing - 'complexification', we might call it. Others have described it in shorter and less sympathetic terms - 'deceit' being about the politest.

It sometimes seems as if the banks, building societies and insurance firms have teams of people devoted to working out ways to take money off us in such a way that we will not really notice. Some of the cleverest tricks are reserved for when they lend us money. But they are pretty sharp when it comes to borrowing money off us - in other words, persuading us to deposit our money with them. Generally it is better to ignore all the trickery and go for simple, instant access, cash saving account that offers the best rate of interest.

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

B. Personal Finance - Dealing With Your Finances and Eliminating Debt in 2010

By Lisa Archer-Jones

It is the start of 2010; it is a new year; it is your chance to make a change. Do you have debt that you would like to see eliminated? If so, make 2010 your year to see debt relief. Here is how you can do it in a few easy and simple sets.

Step #1 - Consider Seeking Professional Help

Do you need to seek professional debt help? Technically no because you can deal with your creditors. On that same note, you will almost always find the best success when you are represented by a professional. In terms of getting your debt eliminated, professional assistance tends to result in a higher percentage of elimination. For example, lets say you decided to play the negotiation game with your creditors yourself, you might get 30% of your debt eliminated. That sounds nice, but a professional settlement company rarely settles for that little; they tend to aim for at least a 50% reduction in debt.

Step #2 - Work on Putting All You Can Towards Your Debt

Getting a percentage of your debt eliminated is a great way to see debt relief, but this still takes time. Lets say that you had $50,000 in debt, you might get away only paying $25,000. This is good, but $25,000 is still a lot to owe and it could still take you years. That is why it is recommended that you cut your spending down to nothing but the basics. Eliminate or reduce anything you don't need to function day-to-day. This might free up an extra $300 or more a month! Put that money towards getting out of debt and you will see relief must faster. The good news is that these spending limitations don't have to be permanent.

Step #3 - Be Serious

Whether you make debt relief your New Year's Resolution or just a goal, be sure that you are serious about doing so. Regaining control of your finances doesn't have to be difficult, but it isn't going to be easy either. You must take a positive and proactive approach to see the best results. If you have a bad week, like where you spent more than you should have, don't let it get you down. Brush yourself off and start over again. Debt relief will never come in 2012 or anywhere if you give up.

Debt settlement is a viable alternative to filing bankruptcy. Most consumers are able to eliminate at least 60% of their unsecured debt while avoiding many of the negative consequences with filing bankruptcy. If you are over $10k in unsecured debt you will be eligible for debt settlement. To locate legitimate debt settlement companies in your state check out the following link:

Free Debt Advice

Article Source: http://EzineArticles.com/?expert=Lisa_Archer-Jones

Weekly Past Publication Article Jan. 17 - Jan. 23 - 2010

Dental Insurance

A. Tips on How to Get Affordable Dental Insurance

By Rowena Fernandez

Dental care is a top priority and should be a necessity to each and every individual regardless of age, status or occupation. When it comes to your teeth, you need insurance coverage as well to help you through times when you may need extraction, dental surgery, teeth realignment and so on. Trust me, dental care is not cheap. So, if you've yet to get yourself covered, here are a few tips on how you can get a coverage at an affordable price.

What you should do first is determine what sort of plan you're looking for; be it individual, group, family and so on. Once you've figured out what you want, use the internet and start browsing through the wide variety of companies and start taking down notes. By doing this, you can make a shortlist of the companies you're interested in and then make a decision, rather than randomly picking the first good thing you see.

Next, based on your previous dental history and medical records, decide what sort of care you're looking for. Don't only think about what you've been through but always plan for the future as well. So leave room for serious mishaps that you won't be able to see coming such as surgeries and so on. Then, shortlist your options based on company recognition and credibility and then all the important things such as fees, premiums, packages, benefits, types of coverage, privileges and so on.

Once you're done with that, go over the terms and conditions of each company at hand and make a choice. Don't rush into this, just take your time and make sure you read every detail right down to the fine print. It's best to know the details such as which clinics you can visit, location and so on.

When taking up a dental insurance, don't only think about the big things such as surgery and realignment; also think about the small things like cavities, root canals and so on. Recurrences of these little things can add up in cost as well.

For more information about dental insurance quotes and dental insurance companies, visit DentalInsuranceChoice.com.

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

B. Affordable Dental Insurance Secret Revealed - Why You Must Buy Dental Implant Insurance

By Steve Shyne

With the advancements of dentistry today, having a beautiful smile using dental implants has become widely available for many people. Because of affordable dental insurance, people that had previously used dentures have chosen to move on to implants because they are the closest thing to having real teeth. You do not need to worry about losing them or removing them. It feels like you have your regular teeth as they work and function the same way. These benefits are widely available to people that may invest in dental implant insurance.

Due to the technology we have available in the dental industry, people who lose their teeth can capture the same beautiful smile that they once had. However there is a cost involved. Typical insurance does not cover procedures such as implants as they are considered a high costly procedure. Traditional dental coverage views this type of procedure as cosmetic, and will not cover any implant work. On the bright side, there are companies available that have set out policies specifically for implants and will cover the procedure to an extent.

As with many other types of insurance, dental implant insurance does have its limitations. Some may include, a waiting period to do your procedure, and a review of your situation - to determine whether you are fit for the procedure in the first place. This process may take long however once you are actually approved; the investment is well worth it.

Dental Implant Insurance can be expensive; in most cases the deductible is extremely high. It will be a good idea to first do some research and find an affordable dental insurance plan that will benefit you. It is always advisable to review the policy offered in great detail and ensure your needs are covered.

For further research, help and detailed information regarding Dental Implant Insurance please visit Affordable Dental Insurance for comprehensive details on insurance coverage, safety and tips.

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

Weekly Past Publication Article Jan. 10 - Jan. 16 - 2010

Best Group Health Insurance Companies

By James J. Robinson

Group health insurance companies are those that provide coverage to groups, typically businesses; but there are specific groups that you can join to get group coverage oas well. This is especially advantageous for individuals with existing conditions who do not have a policy through their jobs. If you are looking for the best group companies, there are a few things that you need to find out first. You see, the top providers are going to be determined by factors like where you live and your particular needs, rather than just a list of companies.

First, every state has rules and regulations for each insurance company. What's more, an insurance company has to be licensed in order to sell health coverage in your state. That means any specific list of the best group health insurance companies can only provide you with a general sense of insurance companies, as they may not all be available where you live. You can check with the National Committee for Quality Assurance (NCQA) to find an updated list of what they consider to be the country's best health insurance companies.

Secondly, your specific needs are going to help you determine which group health insurance company is the best one for you. For example, you might want a plan with a very high deductible so that you can save money on premiums. Some companies specialize in this option with deductibles up to $10,000. Perhaps you are looking for comprehensive coverage that will also offer you a death and dismemberment clause.

As you can see, it can be difficult to narrow down a specific company to say it is the very best one for you to use. However, you can use the NCQA list to determine who they consider to be the best health insurance providers. Also, visit your state's Department of Insurance homepage to get a list of licensed carriers so you can do some research. Lastly, consider using a third-party quote tool to find the best group health insurance companies. Why not click on one of the links above and start your search right now?

Article Source: http://EzineArticles.com/?expert=James_J._Robinson

Weekly New Publication Article Jan. 03 - 09 - 2010

Accidental Death Policy

By Vincent Funfatt Yeong

Accidents happen in all parts of the world, no one knows when it will happen and how serious it will be. No matter how careful you are, things can go wrong, accidents are unpredictable. Everyone had this experience before, but thank God it was not serious, otherwise we wouldn't be around. We hope that bad luck leaves us far away and accident never happens to us, but ask yourself, can you prevent it?

Take for example; road accidents occur in every country everyday, no one can be sure he or she can escape it. If you are a careful driver, but there are full of reckless drivers on the road, even if you don't collide them they will collide you.

I had a very unusual experience; a crow hit my car windscreen when I was driving, it then fell on the road with two legs kicking in the air, I wondered was the crow blind or it was a suicide because the female crow left him? Or it was a stunt crow trying to show its flying skill? But one thing for sure, he did not buy accidental death insurance.

Accidental death benefit

If a person purchased a life insurance and with an additional accidental policy, the beneficiary will benefit the double indemnity in the event of the insured's death resulting from an accident. If he survived from the accident but with injury, a percentage of compensation will be made by the insurance company to the insured, this will depend on how serious was the injury.

Accidental death benefit rider is very inexpensive

If someone is buying a life insurance policy, the agent will normally ask him to add an accidental death benefit rider, because the life insurance never covers against accident. In the event of accident, the insurance company will not compensate the insured for his injury, but with this additional policy the buyer will receive compensation if he suffers injury resulting from accident.

For anyone whose occupation is hazardous, it is advisable to add this inexpensive policy to his life insurance, because if he injures badly during working, he is unable to work, and thus loses his job and livelihood. Anyone who purchased a life insurance without accidental death benefit rider can add it later, because this policy is renewable annually.

Accidental death insurance is crucial because accidents are unpredictable; know more about this policy by a click on accidental death or accidental insurance, or visit us at http://www.indianapolislifeinsurance.net

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

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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You can pay off your debts and save money at the same time! Say goodbye to your boss forever! A blog that will show you the secrets of the wealthy: http://www.howtomanagemoneytips.com

Get a free budget sheet, net worth calculator, tools and more: http://www.howtomanagemoneytips.com/ebook2.html

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.

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