My loan is a 30 yr fixed @ 5.75 and I’m at the start of my 5th year in the home. My present loan balace is about 100K. At present I don’t know how long I’ll be in the home but if I did relocate, I might consider leasing it.
Posts Tagged ‘More’
if you win a prize in a lottery or a casino so large you can do a 20 or more year annuity or a?
15
Apr
cash option, what would be the best option to take? keeping in mind the cash option often is about half the prize size, before taxes.
The value of my 401k keeps dropping. Should I invest in something more secure?
05
Apr
My 401k gets invested in a diversity of funds and stocks. It’s lost $400 in the past week. Should I put the money (almost 20 grand) elsewhere?
If there are 2 or more beneficiaries receiving an annuity payment, what happens if 1 beneficiary passes away?
02
Apr
This is an immediate annuity that was being paid out and the annuitant passed away, therefore the payments were going equally to 4 beneficiaries. What would happen if one of those beneficiaries then dies? Is the money then split 3 ways? Does the insurance company keep that share? Or can each beneficiary name a contingent beneficiary?
Is it better to pay more towards a mortage or invest additional in 401K plan?
22
Mar
I have a mortage with a 5.25% arm that is adjustable in 2010. I am also investing in my employer’s 401K plan but only need to invest 6% to get the total match. I am currently investing 12% because I don’t have much in the way of retirement. Would it be better to throw that additional cash at the principle of the mortgage each month rather than in a 401K?
Is it a good time to invest my 401K into more aggresive funds if we are going into recession?
16
Mar
Is it a good time to invest my 401K into more aggresive funds if we are going into recession? I’m not sure what to do here, I don’t want to invest aggresive and loose all my money!! If I invested more aggressive now, would I loose a lot or gain since it is low now and will climb later??
Middle-class More Vulnerable In Retirement Than Thought
24
Jan
A report released today indicates that the decline in the stock market in the last six months of 2008 worsened the retirement outlook for middle-class Americans. The analysis, conducted by Ernst &…
Are Annuities Still A Safe Investment? I Have An Annuity With Met Life And Axa, 6% Guarantee For 9 More Years?
07
Jan
I invested in the annuities fall of 2007. 6% guaranteed but can’t touch the money for ten years. Several people are telling me to take the money out (at a huge loss in today’s market). Does anyone know if annuities are still a safe investment or if I should cut my losses and take the money out. Thanks!!
Sell More Life Insurance
08
Oct
We help the Auto Insurance Broker sell more Life Insurance, Health Insurance and annuities
Statistics Show That for Millions of Americans, Insurance is More Than Worth the Cost
19
Sep
Today, many small businesses operate without liability insurance – with the exception of the workers’ compensation insurance, which is required by law. In many cases, business owners simply want to cut down on operating costs, but in today’s climate in which worker compensation claims have skyrocketed, operating without any liability coverage is a highly volatile practice.
With just one claim, what took years to build can be wiped out. Without liability insurance, the business can take a major hit from the litigation process and the owner’s personal assets can become vulnerable. Consider that in 2007, according to the Bureau of Labor Statistics, there were more than 335,000 cases of employees injured on the job due to contact with objects and equipment.
Workers’ compensation, which is required by law in all 50 states, protects employers from liability for an accident involving an employee. This coverage will pay medical expenses and lost wages on injured employees. In cases of disability, it will provide a lump sum or annuities. It is increasingly important employers review their general liability insurance policies to ensure the coverage protects the business against claims made for bodily injury or property damage. Coverage should include medical expenses, defending the lawsuit, settlements and in appeal procedures, bonds or judgments.
Premiums on General and Professional Liability insurance can be costly, and often the cost alone dissuades businesses from purchasing it. The cost, however, of operating without liability insurance can prove to be much more extreme. The out-of-pocket costs of filing a claim alone can escalate quickly and the number of damages that can occur such as fire or theft could nudge a business towards severe debt. If a worker is harmed on the job, the employer will face medical and legal fees. Workman’s comp insurance, which is required at varying levels by state, will provide a safeguard to the company.
Cost of no insurance
In September 2007, the Bureau of Labor Statistics issued a report detailing employee compensation. On average employers paid $28.03 per employee per hour. Of these costs, approximately $2.35 (8.4 percent) of total compensation went towards life, health and disability insurance – a nominal expenditure when compared to the cost of disputing or paying on a claim.
Lawsuit expenses alone can vary radically depending on several variables such as the type of claim and whether it was filed by a customer or an employee. Employers can count on spending a significant amount to defend the case. Typically costs and procedures include:
* A summons and complaint filed against the company, which results in several meetings and attorney fees, including consultation, transcript and research costs, all billed at an hourly rate.
* The claim will then progress to the deposition phase, which entails a settlement conference and a trial date. In addition to the billable hours and other various fees, the attorney will also bill for the deposition paperwork.
* During the trial, the attorney charges hourly and there’s no telling how long the trial could last. It could go from several days to several weeks. In addition to the hourly fees, the defendant is also being billed for various legal fees.
* Legal fees can include transcript fees, witness fees, court reporter fees, consultation and deposition fees, research fees and mailing fees.
In the event the employee wins the case, the defendant – the employer – will brunt the burden of not only paying the settlement, but also any medical, attorney and other expenses the prosecuting party has incurred. For those organizations operating without insurance, this can put them at risk of going into major debt or bankruptcy.
In one 2004 workers’ compensation case in California, a wood products company was ordered not only to pay its employees medical expenses, but also entitled the employee to, “…medical treatment as is reasonably required to “relieve” from the effects of his industrial injury, even if such treatment will not “cure” that injury…” In effect, the company will be paying for medical treatments indefinitely. The company did, however, have insurance coverage and did not have to foot the bill.
In a separate case, in 2006, an employee who suffered industrial injuries to the neck in the form of fibromyalgia was awarded payment of medical costs, in excess of $14,000, disability reaching nearly $100,000, plus life pension, which paid just over $45 per week.
Protecting assets
Insurance protects businesses against more than just worker-related claims. It can also cover disasters such as fires, natural disasters and theft.
According to a recent article in the Los Angeles Times, compensation awards to victims are now being determined for the recent Metrolink train crash in Chatsworth, Calif. and it’s expected the awards could easily exceed the $200-million cap Congress implemented on railroad liability in any one accident. If the cap is removed, Metrolink will be in an extremely vulnerable position.
While most businesses will never experience a disaster of this magnitude, insurance coverage beyond workers’ comp insurance may be necessary in ensuring the organization’s assets are protected. A workers’ compensation insurance quote should outline what coverage will include. From there the business owner can determine whether additional liability insurance is needed. Typically, liability insurance coverage includes:
* Legal costs – general liability insurance will cover litigation costs such as attorney and witness fees, as well as settlement payments.
* Medical costs – insurance will cover medical costs for individuals who may have been injured on company property, this includes employees as well as customers.
* Property damage – insurance will cover fire, theft or other incidents that damage the assets of the business. It insures the company from physical damage to the property as well as the customer’s property.
* Business interruption – insurance will cover the business in cases of major disasters, such as a fire, that render the business inoperable. If the business is unable to operate, the insurance would reimburse the company for its losses and the profits that would have been made during that time.
Business operators should shop recognized, established insurance providers to find the best coverage for their needs and the best price for their budget. All companies can provide general liability and workers’ compensation insurance quotes to help businesses budget for the expense.
References:
www.bls.gov/ect
http://www.dir.ca.gov/wcab/wcab_panel.htm
http://www.dol.gov/esa/owcp/energy/regs/compliance/weeklystats.htm
“Metrolink collision; Liability cap could be tested,” Los Angeles Times. Page 3. September 17, 2008. By Carol J. Williams
No More Rolling the Dice; How to Buy Insurance That Pays You for Living
16
Sep
Insurance providers have a policy to overcome the most common consumer objection to purchasing term life insurance: what If I live? For those consumers who think term life insurance is a waste of money because they may not die, here is something to consider. If you can work a little extra premium into your budget here is a way to avoid the gamble and still protect your loved ones “the real purpose for life insurance” and recieve a cash benefit for staying alive.
What is ROP Return of Premium Insurance?
Return of Premium Insurance (ROP) is just as it sounds. The ROP is a rider attached to a basic term insurance policy that provides a living benefit to the insured. This means that should you outlive your policy term and keep it in force to the end of the level term period, you can receive all of your premiums back in a tax-free lump sum. The policy is similar to term in that it protects your family for a specified time period you select from 10 to 30 years. The ROP premiums are bit more costly than straight term in that the extra 30-40% you pay in premium is reinvested by the carrier and returned to the insured if they outlive the policy.
Why should you consider Return of Premium Insurance?
While insurance protection can be vital to protecting your family, many can find which type to purchase confusing. Let’s review the whole insurance picture for a moment: Term life insurance is the choice of many consumers because it fits the budget and simply protects young healthy expanding families during times of highest risk of loss should the income earner of the family die unexpectedly.
Traditional term provides a benefit for the length of the term period selected 10, 20, or 30 years after that the policy coverage ends. If the insured had passed on during the term of coverage the beneficiaries would have received a lump sum payout, but if the insured is still living at the end of the term or had cancelled the policy early, the beneficiaries receive nothing. Unfortunately after 20-30 years you may be uninsurable for more term because of health deterioration or age and may need to seek out a whole life or permanent insurance policy to protect your spouse or assets from risk during the retirement years. This form of insurance contain an investment feature which builds cash value and may require higher premiums and make the policy simply unaffordable for some. Return of premium can provide a suitable solution if it fits comfortably within the budget because it provides for a benefit for both events: A death benefit and a living benefit!
What are some of the features of return of premium ROP insurance?
As we have already mentioned if you outlive the term you will receive all of your premiums back in a tax free lump sum and it is guaranteed. In addition should you need to borrow from these funds many carriers have loan provisions allowing you to borrow your own money at reasonable rates of interest and keep the coverage in place during the term period. Many consumers are concerned that they may cancel prior to the term ending and will lose the ROP feature they paid extra for, however carriers have already considered this as well and if you surrender the policy during the term you will receive back a prorated portion of the premium which are pre-calculated at policy inception. Another handy feature can help you keep your protection if you lost your job well into the policy term the ROP cash accumulation could be applied to provide for paid up reduced term period coverage, so if you had a 30 year term and in year 15 were injured or loss you job and were unable to pay premiums you may end up with a paid up policy for a remainder of 5 years.
Example
Male 32 years old with the highest health rating of Preferred Plus, $500,000 of coverage on a 30 year return of premium insurance term.
Monthly premium $54.98 Annual $659.76 the return of premium after 30 years would be $19,792.80
The premium for the same insured with straight term would be $38.06 per month
*If you are older or have a few minor health conditions the policy premium may be considerably higher as the carrier grades your mortality risks.
For most the Return of Premium can be a good option that can protect the family’s assets and large liabilities like the home in the event of an unexpected death. Additionally the lump sum return of premium can be used to pay down a considerable portion of those very liabilities , imagine paying $30,000 down on your mortgage balance in the 20th year or investing the tax free lump sum into an interest bearing annuity to create a retirement income stream for later years.