Raymond Gutierrezz

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Keeping this mind, choosing a policy purely on the basis of the rate or how cheap it is no longer can be the prime-deciding factor. Let’s take a look at the different ways this insurance can be used, so that you can make a well-informed decision comparing value versus price before finalizing on a policy:

Life insurance benefits your family- Originally designed as a vehicle to provide your family with financial security after your death, Insurance should cover at least two of your family’s biggest expenses. These would be your mortgage and your children’s education. Both are costly endeavors that can be offset with the death benefits from an insurance policy.

Life insurance can be used for your own personal expenses- This is a relatively new concept with life insurance. You can use your policy as collateral for a loan or you can treat it as a reserve of additional funds.

 In this way you can plan for your retirement, cover any emergency expenses and even pay for a vacation. insurance benefits can also be used to settle your estate taxes and prevent your property from being sold in order to make ends meet after your death.

Life insurance can give money to others- You are free to name anyone as the beneficiary of your insurance policy, not necessarily your family members. You could designate the charity of your choice what will receive a lump sum of money from your insurers after your death. You could also name your business as a beneficiary, thus ensuring that all debts and loans are paid off and that your investments remain financially secure.

It can fund buy/sell agreements- Life insurance can be used to fund an agreement between business partners. This agreement might stipulate that if one of the partners dies, the benefits of the policy will be used to purchase the deceased partner’s share in the business.

Life insurance can secure a line of credit- This insurance can act as collateral for a loan and help you to secure a line of credit for a business.

Life insurance can help your business- In case of the death of a key employee, insurance can protect the business from immediate losses in his or her absence. If your company offers group insurance, this can also be a valuable benefit to your employees and attract quality candidates.

Life insurance as a means of income - When you die, this insurance can provide an income and instant security to your spouse.

Life insurance can protect your children - Apart from the death benefits on a child life policy, if you purchase an insurance policy for your children when they are young you are also ensuring them guaranteed insurability for future insurance coverage.

Therefore, when choosing a life insurance policy, there are several other factors that one must take into consideration apart from just the premium rates. If you look at only the cheapest options available, you might find yourself lacking later on in times of a crisis. To ensure that all this can be done, you have to choose a policy that offers you enough and not just the cheapest option available

Until very recently, there were only a few options available to people who no longer needed their life insurance policies.

They could either surrender their policy to the insurance company that had issued it for its cash surrender value or they could just stop paying the premiums and allow the policy to lapse. With regards to term insurance or any other policy without a cash surrender value, the only choice available was to let the policy lapse.

There is a very simple concept behind life settlements. Basically, a policy holder will sell his or her policy, normally through a broker, for a fixed value that is usually three to four times the amount they would have received by simply surrendering their policy to the issuing life insurance company.

The buyer in these cases is usually an institutional investor and will take over the payment of the premiums as well as collect the death benefit once the policy holder passes away. The purchase price of a life settlement is determined by considering the policy holder's average life expectancy along with the respective cost of premiums to keep the policy operational within its term.

Thus, a life settlement will allow you turn a relatively untouchable asset into something immediately useful and liquid.

There are two types of life insurance settlement transactions –

1.                   Life or Senior Settlements allow policy owners above 65 to create immediate liquidity from unaffordable or obsolete life insurance policies.

2.                   Vertical Settlements help someone facing a terminal illness to make use of the present day value of their life insurance policy. The cash can then be used to offset the prohibitive costs of medical care.

You could be considered an eligible candidate for a life settlement transaction if:

•                    You are 65 years or older

•                    The face amount of your policy is worth $50,000

•                    The policy has been active for a minimum of two years

•                    The policy has a low cash surrender value

•                    Premiums are less than 8% per annum

Life settlements can be considered for the following types of insurance:

•                    Term (if convertible)

•                    Survivorship (any type)

•                    Adjustable Life

•                    Joint First to Die

There can be many reasons opting for a life settlement. In times of financial crisis or when you simply can’t afford your premiums, the liquid cash might be necessary. For others, funds may be needed on an urgent basis. In some cases, coverage may no longer be required, for example if the primary beneficiary has divorced the policy holder or died or the business has been dissolved. Rather than simply allowing a policy to expire or surrendering it to the issuing company, life settlement firms are able to help consumers to maximize the value of a dormant asset.

Life settlements are also becoming more regulated and monitored and many policy holders are still unfamiliar with the procedure and benefits, those established in the industry are now emphasizing the need for life settlement education for financial professionals so that the benefits can be accurately presented to all those who might be interested.

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.