Collision and comprehensive only cover the market value of your car, not what you paid for it—and new cars depreciate quickly. If your car is totaled or stolen, there may be a “gap” between what you owe on the vehicle and your insurance coverage. To cover this, you may want to look into purchasing gap insurance to pay the difference. Note that for leased vehicles, gap coverage is usually rolled into your lease payments.
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Weiner was talking about rolling returns for Vanguard. So, it’s his argument, not mine. And, this is a different issue from what you’re talking about anyway regarding annual returns based on monthy savings. So I’m not sure where you’re going with this or why you think it’s misleading. I believe Weiner got his figures from Vanguard…so…that would mean Vanguard is misleading itself? Doesn’t make sense man.
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As a financial planner I find this article very misleading. Whole life insurance can be an excellent way for someone to save for the long term. If you earn too much for a Roth IRA especially (180K plus for a household roughly) then whole life insurance is literally the only place to get tax free savings on growth (tax free municipal bonds also but these have a lot of risk especially with interest rates going up). A properly designed whole life insurance policy with a good company like a New York Life, Mass Mutual, Northwestern etc which have always paid dividends since the mid 1800s can easily earn NET of fees and taxes 4-5% over a 25-30 year period. Which means in a taxable brokerage account for example or a bank account you would have to GROSS 6% or so to match this over that same period every year on average? On a virtually guaranteed basis this is tough to do. This doesn’t even speak to the point that you have a tax free permanent death benefit. When a client’s 20 year term runs up they almost always still want and need some life insurance, and what if they aren’t insurable anymore? Getting some whole life when young and healthy, savings/cash value aside, assures them they’ll always have coverage which can someday go to kids, grandkids etc which is a nice option. Whatever cash you pull out reduces the death benefit dollar for dollar, but if set up properly there will always be more than enough death benefit even after most of cash is taken out tax free in retirement, when the stock market is down (this is especially when you appreciate having a non correlated asset like whole life for when the market crashes and you can tap into your whole life cash so you don’t have to touch your investments in that downturn OR take advantage of the opportunity and but stocks when things are down with cars value). Interest does accrue on policy loan which is why the tax is cash free and the loop hole exists. But often the dividend more than offsets the policy loan interest which doesn’t have to be repaid and just comes off of the death benefit which is often just a bonus anyways. A client should make sure they have enough coverage of course which is why people often get a large term life insurance which is “cheap” in addition to a smaller whole life which is a dual savings, dual coverage to be in place when the term expires.
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Insurance Services Co Aurora CO 80015
After insurance has been selected and purchased, most insurance brokers will continue to provide service to their clients. This includes advising clients on technical issues that may be helpful in the event that a client has to file a claim, helping clients decide if they should change their insurance policies or coverage, and even making sure that clients comply with their policy’s requirements.
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In fact, he sort of torpedoes his argument by saying policy loans are legit, with the implication being policyholders are going to get into trouble if they don’t understand how to use policy loans. …but people already get into trouble by not being financially responsible so…again…nothing new. The problem isn’t borrowing or insurance. It’s financial education.
A car insurance quote from The General® requires no personal information (your name, phone number, street address, etc.) to provide an accurate car insurance quote. Once you receive your anonymous auto insurance quote, there is absolutely no commitment on your part. You can save your auto insurance quote online at any point during the process and return to it at your leisure.
4. If the monthly premium is within your budget and and individual has saved money into other forms of retirement savings. Then why not get the benefit of having the safety net that the whole life insurance gives you then Surrendering that policy when you no longer need it and receiving (what I believe to be tax free) money for having that safety net in place
Did someone say convenient? Life can be complicated, which is why we make insurance so easy. Our customer service is accessible and personal. You can choose from different payment options, and you’re able to manage your account online for anytime, anywhere access. Just in case you want to view your policy at 2 a.m. while on vacation. Not that you would, but you could.
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I have a Dividend Option Term Rider that will expire soon. I am 57 years old. New York life wrote to me stating I can change over to whole life insurance without having to answer health questions or take a physical exam. What are the advantages or disadvantages of this for someone of my age? I currently have a 401K. Would my money be better invested in that or elsewhere? Thanks.
Analysis: That just means that your incumbent insurer’s underwriter won’t approve that coverage. The broker isn’t willing to do what’s needed to get the deal done, which is shopping the coverage to other insurers — exactly what brokers are supposed to do. It’s clear that this is the case, because on occasions when a second broker appears to bid on your business, you’ll find that suddenly the coverage you wanted becomes available after all.
Don't forget to ask about the optional protection of a personal umbrella liability policy. Umbrella Coverage from $1,000,000 for individuals wanting higher liability protection. Most home and auto insurance policies stop at $500,000 liability coverage. A personal umbrella policy provides coverage on top of basic auto and home insurance: $1,000,000 to $10,000,000 available.
NerdWallet averaged rates for 40-year-old men and women for 20 ZIP codes in each state and Washington, D.C., from the largest insurers, up to 12 in each state. “Good drivers” had no moving violations on record and credit in the “good” tier as reported to each insurer. For the other two driver profiles, we changed the credit tier to “poor” or added one at-fault accident, keeping everything else the same. Sample drivers had the following coverage limits:
An insurance broker is experienced in different types of insurance and risk management. They help individuals and companies procure insurance for themselves, their homes, their businesses or their families. Brokers may focus on one particular type of insurance or industry, or they could provide advice on many different types of insurance. They provide a service to their customers in helping them find and buy insurance — usually at no cost to their client.
Unlike GEICO, Esurance, and other “direct writers”, independent agents are a part of your community and are there to help whenever you need it. Unlike American Family Insurance, Farmers Insurance, State Farm Insurance, and other “captive” agents, an independent insurance agent works with many different insurance companies. Atlas agents automatically compare quotes from up to 50, which saves you time & money.
Life insurance helps you plan ahead and provide long-term financial security for your family when they would need it most. You can't put a dollar amount on your loved ones, but a term life insurance policy can help ensure their future is protected. Determine how much coverage you need and how long it's needed, and the GEICO Insurance Agency, Inc. and Life Quotes, Inc. can provide an affordable life insurance policy that is the perfect fit for you and your family. Get a life insurance quote online or call us at (888) 532-5433 and get the satisfaction of knowing your loved ones are protected.
When you start your search, you can pick an independent agent or a captive (or direct) agent. An independent agent may sell policies from many different companies. A captive agent sells insurance for only one company. Independent and captive agents represent insurance companies and receive a commission from the insurance company for the sale of its policies.
I have whole life that I’m not understanding . I’m under the understanding I pay $401 for 7 years I’m done paying on a &135,000 policy that they tell me the more I borrow from the more it grows.But I’m starting to question if the interested charged doesn’t go back to me how it’s it growing. I’m very confused suopose to sit down with agent so he can explain it better. But from talking to other insurance people like my house and car insurance agent he says this is not possible about it growing. HELP
A good agent will figure out how much insurance is needed, and if a whole life policy would make sense without causing the policy to MEC within the constraint of one’s human life value. As for surrenders and loans against the policy, good agents discuss how to structure these options for supplemental retirement income to maintain a reasonable death benefit given a retirement age. There are institution(s) that have always paid a dividend and have been top rated every year.
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*This material is for informational purposes only. In general, partial or full surrenders from a permanent life insurance policy in excess of the policy’s basis are taxable, and limited circumstances exist where death proceeds will be taxable. Neither Farmers New World Life Insurance Company, nor its employees nor its agents provide legal or tax advice. Always consult your own attorney, accountant or tax adviser as to the legal, financial or tax consequences and advice on any particular transaction.
Analysis: You’ll likely get better services from outside specialists, but that’s not the overriding factor here. The real problem is that tying services to insurance products makes it disruptive for you to leave your broker. The products and services should be unbundled so that there’s real competition for the big-ticket item: the insurance itself.
His disciple, Edward Rowe Mores, was able to establish the Society for Equitable Assurances on Lives and Survivorship in 1762. It was the world's first mutual insurer and it pioneered age based premiums based on mortality rate laying "the framework for scientific insurance practice and development" and "the basis of modern life assurance upon which all life assurance schemes were subsequently based".
On your questions about your specific offer, I would both say that most of the points from this post apply and that without knowing the specifics of the policy you’re being offered I can’t really give any concrete feedback. One thing I will say is that you wouldn’t simply be able to withdraw the $550k you mention tax-free. You would have to borrow from the policy, which would come with interest and potentially other fees and conditions. If you chose to surrender the policy and withdraw the money, the amount above what you have put in would be considered taxable income.
We were sold a whole life policy from Mass Mutual for my husband, but we also have term insurance on both of us. We are on a 10 year track to pay off the policy and have three years left. Is it still a “bad investment” once the policy is paid off? Should we be expecting those 0.74% yearly returns for a fully paid-off policy? Or does that apply only if one is paying premiums on it for the next 30+ years? Whole life insurance appealed to me because I am extremely squeamish about the stock market and don’t want to pay a financial planner on a regular basis. I’d rather have low (but not 0.74%), steady returns than high risk/high reward investments. Did we still make a mistake by buying whole life?
Burial insurance is a very old type of life insurance which is paid out upon death to cover final expenses, such as the cost of a funeral. The Greeks and Romans introduced burial insurance c. 600 CE when they organized guilds called "benevolent societies" which cared for the surviving families and paid funeral expenses of members upon death. Guilds in the Middle Ages served a similar purpose, as did friendly societies during Victorian times.
Your “rent” analogy is a classic one used by life insurance salesmen when selling whole life, but it is a poor analogy. After all, insurance has nothing to do with renting vs. owning. Would you say that most people are simply “renting” auto insurance? Do you think people should buy auto insurance policies that will pay them the full price of a new car whenever their car dies, even if they drive it into the ground? Because that’s essentially what whole life insurance is. The main purpose of life insurance is to provide financially for dependents in the case that you die early, just as the main purpose of car insurance (beyond the liability portion) is to provide the financial value of your car in case it dies early. Once that financial protection is no longer needed, the insurance need is gone. Term insurance protects you while you need it and goes away once you don’t. It is insurance in the purest sense of the word and is by far the more effective way to go about it for the vast majority of the population.
The best part of the cash value? You have access to it at any time, for any reason, without taxes or penalties. This is probably the best benefit of whole life and is what is most attractive to my high net clients who are already maximizing contributions to IRA’s, 401k’s etc. Also, whole life does not carry the same penalties for withdrawals as these other accounts do