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Does Life Insurance Make Sense For A Retiree?
By Robert Zimmerman

The question that commonly faces those in the retirement zone is: What should be done with my life insurance policies? And, should I consider putting money into a new plan?

Typically, we have been indoctrinated to understand that life insurance is intended to replace income when there are dependents who would be impaired if the breadwinner passes on. Who would make the mortgage payments, bring home the bacon, pay for education, etc? These are valid reasons for carrying life insurance protection that may no longer be true for seniors, and may lead one to terminate coverage, and thus reduce the outlay required to maintain the coverage in force.

Over the last few years, there have been significant changes in the life insurance industry that should be evaluated. In short, these changes have made life insurance benefits available to the insured while still alive. Known as 'accelerated benefits' , these innovations first became commonly available some years back as a offer to advance a portion of the life insurance face amount if one were to be pronounced 'terminally' ill. In other words, if a doctor certified that your life expectancy was 24 months or less, you could be advanced up to 50% of the face amount of your policy while still alive as a financial relief during that time.

Since that benefit was introduced, there has been an increase in the benefits offered to cover 'chronic' illness. This means that a doctor certifies that you are not able to perform at least two out of six normal 'activities of daily living'. Those who have purchased insurance for long term care will recognize this term as the same requirement for benefits to be paid under that type of contract. Typically, there is a restriction on the amount that can be used while living, and that normally limits the available benefit 2% of the face amount of the insurance per month. For example, a $200,000 face amount could provide up to $4,000 monthly to help pay for health care either at home or in a facility.

This development now casts the life insurance decision in a whole new light. If a senior citizen is healthy enough to qualify for new insurance, he can set up a $250,000 life insurance plan that he can use to eliminate the need for long term care insurance. Unlike insurance for long term care, he can know in advance that he will never be subjected to increased premiums if the insurance company finds they have a need for more money to pay claims, as they are now noticing. And, recognizing that many seniors believe the long term care insurance is only needed for the 'other guy', because they are too healthy and so on, that objection is no longer valid. Everyone will use this plan someday, since nobody lives forever.

If you have an existing life insurance plan, your may question the wisdom of discontinuing it in favor of a new plan. You can look at it this way: If a new car came out that doubled your gas mileage, would you consider trading in the old one? If you are under the impression that your cost of insurance is lower because you bought the plan at a younger age, you need to have someone show you how to calculate the true cost of life insurance protection. You may be surprised.

Existing policies have established values, and these values can be realized in a number of ways that an experienced planner can help you with. If you are serious about upgrading an older style plan, the first thing you need to do is to find out if you can satisfy the requirements to obtain a new policy. There is no point in getting excited about something that will not be available to you because of poor health.

It is pertinent to ask about costs, since the amounts required from a retirees budget can be significant. Costs will vary, of course with age, health and other factors. As with any financial decision, you evaluate what you get for what you give. You might find it to be an unworkable situation, but you may find the value to be an unbelievable investment, not only for peace of mind, but also financially. There are many retirees who are in this position: Move $1 from one pocket and have it show up in another pocket as $2 (or more).

In that respect, you may find it hard to believe that you could fully guarantee a return of $2 or more for every $1 you put into a plan, and that return would be fully tax free to your estate. If, for example, you were able to allocate $100,000 from a 401K plan or an IRA, and know that there would be a $200,000 guaranteed payout, would that not be a superior investment to include in your planning? And, particularly so if it eliminated the need to be concerned for long term care expenses?

The chance of being offered this alternative is very slim if your financial advisor does not have the necessary licensing, or the comfort in dealing with insurance contracts. If that is the case, you would be well advised to seek out a practitioner who can offer you the full menu of choices, even if it necessary to refer you to a specialist. This is commonly done in the field of medicine. It should not be forsaken when dealing with your financial health.

The impact of proper planning in this matter cannot be overemphasized. It is true that not everyone will be able to implement this plan, since we all reach the point where insurance underwriters run the other way. For those who can qualify, however, it will be easy to recognize in a financial sense that your good health is the major asset you have.

Like it or not, we all must be financial planners. Bob Zimmerman now brings over 50 years of experience to the aid of those seeking to better inform themselves. Holding a BS degree in Finance from the University of Detroit, he also has an MBA degree from that institution.

He spends his senior years devoted to advancing the goal of educating the public. To that end, he has published a book - THE ANNUITY-FROM MYSTERY TO MASTERY. It is further described on his website - http://www.safemoneyplus.com

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

Life Insurance Creates Security
By Carson Koziol

Many individuals would love to find a financial guarantee to help them feel more secure about their future. It takes an awful lot of convincing to make people feel confident in any guarantee these days. Many suggestions and ideas are available but, just how many are secure? Whether you are a young professional just starting out, an established professional with a client base, or the retiree who already made his or her mark, something as simple as LIFE INSURANCE can provide security in today's tough times.

Life Insurance comes in many forms. A term life insurance policy or a whole life insurance policy, can be the magic bullet to get you planning your financial future in the right direction. Even better fixed rate annuities can offer guaranteed tax deferred returns. Imagine a guaranteed return of your money and a return on your money, depending on what you invest, you can do quite well. With the option to roll it over at the end of the 5,6,7 or even 10 year term you have chosen the tax deferability continues as well. In my opinion more people should start considering these options and start researching various insurance carriers and their rates. After all, several insurance companies are still very strong, making wise, safe and sound investments, and no matter what your financial planner tells you, aren't going anywhere. As we have all seen 401(k)'s are suffering in this recent depression. Fixed annuities can maybe add stability to your portfolio.

You can find open forum discussion on these topics as well as helpful tips at Moneyferret.com. Also, if you live in Nevada you can go to Aisreno.com and begin researching these products today.

You can find open forum discussion on these topics as well as helpful tips at http://www.Moneyferret.com Also, if you live in Nevada you can go to http://www.Aisreno.com and begin researching these products today.

Carson E. Koziol
I am a licensed insurance agency owner in Nevada

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

Why Bother With a Life Insurance Settlement?
By Peter Crump Platinum Quality Author

A life insurance settlement is the amount of money your beneficiary collects when you die during the term specified under the life insurance policy. The premiums you pay depend on the type of life insurance and the amount of the settlement you want to have if and when the life insurance company has to pay out. You might get a policy a lot cheaper if you opt for term life insurance because there is a possibility that you will never get to collect the settlement.

Settlements have become a very important factor in the estate planning process for seniors. Prior to the life insurance settlement industry, if a senior owned a policy that was no longer wanted, needed or could afford, there was no option but to lapse, cancel, or surrender the policy back to the carrier for the cash surrender value. Senior life insurance policies allow qualified policyholders to liquidate a policy for an amount much higher than the cash surrender value. Then, these seniors can take advantage of important financial opportunities using the proceeds of an unneeded or obsolete life insurance policy.

There are two types of life insurance settlement transactions: One kind creates immediate liquidity from a non-performing asset, allowing policy owners to cash out of unwanted, unaffordable or obsolete life insurance policies insuring a senior over age 65. The other is a Viatical settlement, which enables someone facing a terminal illness to utilize the present day value of their life insurance policy to ease the financial burdens that can be caused by the high costs of medical care. Knowing that there are options on how to receive a settlement with senior life insurance can take off some stress in a stressful situation.

Over the past few years, life insurance settlements have gained popularity among the financial planning community as the financial benefits to policyholders have become far too good to ignore. As this industry continues to grow, many financial professionals have begun to recommend this financial service to their friends and families. This enables more and more life insurance policy owners to access the unrealized equity built up inside an asset that is normally considered only as a future benefit. Thus, it has become much more than a settlement that is used at the time of death.

By being informed about life insurance settlements, you can help turn a policy on the verge of cancellation, surrender or lapse, into an immediate cash settlement. It's a true win win opportunity!

A life insurance settlement is an important event.

For a website totally devoted to Life Insurance visit Peter's Website Life Insurance Answers at Life Insurance Answers and find out about Life Insurance as well as Cheap Life Insurance at Whole Life Insurance and more, including Online Life Insurance, Term Life Insurance and Life Insurance Agents.

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

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