What Is Universal Life Insurance Retirement Budgeting Made Effortless How To Save Money And Get Discount Automobile Insurance In Maryland Taking An Interest In Foreclosure
Life insurance can be bought in many forms and universal life is one of those forms. Universal life insurance is a permanent type of insurance that is based on a cash value. With this type of insurance, the insurer pays a somewhat higher premium than he or she would with a term life policy.A portion of that higher premium is used to pay for the life insurance itself and the remainder is placed into an investment portfolio.
Premiums are usually paid monthly and that portion that is used as investment is credited, with interest to the policyholder’s account. The portion that is used to pay for the insurance itself is deducted from the total amount that is sent in. This is known as the COI or Cost of Insurance portion. In the event no payment is sent in for a month, the amount of the COI is deducted from the cash amount in the account.
The amount of interest that will be credited to the account is determined by the insurer. In many cases, this will be determined by a financial index of some type. Because only the amount of interest credited and not the cash value itself varies, universal life policies offer a stable investment option for some consumers.
It should be noted that there is a similar type of policy that was designed from aspects of the universal life policies and that is called the Variable Universal Life (VUL) insurance policy. VUL policies allow the cash value to be directed to a number of separate accounts that operate like mutual funds and can be invested in stock or bond investments with greater risk and potential reward.
Lastly, there are the Equity Indexed Universal Life policies that work by investing in Index Options such as the S&P 500, the Russell 2000, the Dow, and other indexes. These types of contracts only participate in the movement of the specified index and do not participate in the actual purchasing of stocks, bonds, or mutual funds.
One reason people choose universal life policies is that they offer a greater potential for increasing cash value growth when the interest rates that are used for the policy outperform the insurer’s general account. There are other benefits as well.
Universal life insurance is also more flexible than whole life insurance in two important ways:
The death benefit amount and often the premium payment amount are more flexible. Under certain conditions, the death benefit can be increased or decreased without actually losing the policy or having to begin anew as would be the case with whole life.
The second way universal life offers more flexibility is that it allows for a larger range of premium payments. These can range from the minimum amount allowed to cover the policy up to the maximum amount allowed by the IRS.
In closing, the main difference between whole life and universal life is that universal life shifts some of the risk for maintaining the death benefit to the insured. Conversely, with a whole life policy, as long as all the premium payments are made, the death benefit is guaranteed to be paid once the insured dies. With universal life, the policy will lapse and the death benefit will no longer be available if the cash value or premium payments are not enough to cover the cost of insurance.
Before purchasing universal life, make sure you speak with a qualified broker or agent. He or she can answer your questions and help you decide which type of policy is best for you.
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Budgeting for your retirement can seem like a daunting and complicated task as you face an era of uncertainty, losing your income and losing your livelihood. It is a tentative time that creates stress, especially if they have not paid as much mind to the area of budgeting, as they should have. Retirement should be a time to look back on your employment era fondly and look ahead to a time without working as opposed to a time in which to hassle about money and be troubled about paying any bills you may have.
With proper planning and a well-tuned personal budget, your retirement years will be amongst the most enjoyable years of your life. Vacations will be frequent, dreams will become reality, and you will now have the time to accomplish all of those goals that had to take a backseat to “life” when you were working long hours and caring for your children. Now, the good times and adventure that you have waited for is here and you will be ready because you have appropriately planned for these years your entire life.
There are several different approaches one can take to creating an effective budget. Your budget should reflect your situation and be achievable and sustainable. Approach your budget as a personal ideology and create the plan that will best benefit you and your future retirement plans.
Many people say that there are two effective ways to know that you have properly planned your retirement budget. The first is that you were able to leave an inheritance and the second is to bounce your last cheque. The information about retirement budgets can be fairly non-specific. This is to ensure that it is known that no two budgets, especially in terms of retirement, are the same. The secret, as with any budget or diet, is to stick with it and be persistent with your planning. Accomplish goals and make sure you reward yourself along the way with something special. This doesn’t always have to be a monetary reward. This will help you achieve greatness in terms of your retirement budget.
One of the main differences in terms of planning a retirement budget versus a regular short-term budget is that you need to calculate, as morbid as it may sound, your life expectancy. There are several calculators for this available. Many people, however, like to use the life expectancy of a hundred years when they are planning because there is no fault in “over-planning” your retirement budget. This should allow you enough money to accomplish your retirement goals.
Goals are important and having goals for your retirement years helps to give you something to aim for and something to accomplish. It also helps with financial planning because it effectively plants a signal in the upcoming years that you can prepare to meet with the right financial situation. In other words, if you plan to purchase a boat when you are 65, the planning for that becomes all the more realistic because you have given yourself a tangible goal to meet.
Do not attempt to drive an automobile in the state of Maryland without automobile insurance. If you are caught driving on a public road in Maryland without automobile insurance your license plates can be confiscated and your registration revoked. No new registration and no new plates will be issued to you until you can prove that you have the required insurance coverage. In addition you may be subject to additional criminal penalties imposed by the courts.
In other words, it really doesn’t make any sense to even try to drive an automobile in Maryland unless you carry insurance.
Automobile insurance in Maryland does not have to be prohibitively expense for most drivers. In fact, there are several things you can do to help keep your rates as low as possible.
Start by keeping a clean driving record. A speeding ticket or a drunk or impaired driving conviction will cause your automobile insurance rates to rise to the stratosphere. Likewise, accidents, especially accidents that are deemed your fault, will also cause your monthly premiums to rise sharply – and once your premiums have risen because of any of these factors they are likely to stay high for several years. Changing insurance companies does no good; your records are available to all automobile insurance companies.
If you are below 25 years of age then you know that automobile insurance is especially costly for you. If you are still in school and you want to keep your rates as low as possible then stay in school and work hard; average grades of “B” or better will save you as much as 5% in monthly premiums at most insurance companies. This is known as a Good Student Discount.
If you are 55 years of age or more you may have noticed your automobile insurance rates creeping up. They don’t have to remain high, however. Talk to your insurance agent and see if your company offers a discount for seniors who have successfully completed a refresher driver’s course. Many companies offer a monthly premium discount of as much as 10% to qualifying seniors.
If you have an older car, especially one with little or no trade-in value, you might consider canceling your collision and comprehensive coverage on your car. If your car is damaged in an accident your insurance won’t pay for its repair or replacement, but if your car had little Kelly Blue Book value before the accident then your insurance company would not have paid anything for it anyway – so you really lose nothing and save a considerable amount of money.
One of the most dramatic things you can do to lower your automobile insurance rates is to increase your policy’s deductible. Your deductible is how much money you will pay out of your own pocket if you should have a claim. Since you will be paying for a portion of each claim your insurance company is willing to reduce your monthly premiums.
O.K., now it’s time for you to jump online and check out at least 3 of the many websites that offer to let you compare automobile insurance policies and prices at multiple insurance companies side-by-side. Take the extra time and fill out all of the necessary information on at least 3 different comparison websites. In this way you will be certain to have compared every insurance company that sells automobile policies in Maryland and you can rest assured that you have saved money and gotten discount automobile insurance in Maryland.
The point of all this is that you are not helpless when it comes to controlling how much you pay for automobile insurance here in Maryland.
While just about everywhere in the United States the real estate market has come back robust and healthy and most people can count on their house selling after a short period on the market, there are some states whose residents are facing foreclosure in record numbers.
Ohio, Georgia, Texas and Florida are reeling from recent economic havoc created by their areas industrial demise and the subsequent concentration on the service industry with its less plentiful and poorer-paying jobs. Benefits for these service industry jobs are not nearly as good as those in the prior industrial industry, and in some cases they dont exist at all.
The mid-Atlantic states have been suffering from this loss of manufacturing jobs and firms for decades now and foreclosure and devaluation of homes has become commonplace.
Foreclosure might have been staved off in many of these situations, however, had the homeowners not been the victims of some less than reputable lending plans and firms, with ill advised financing options such as interest only loans that left these borrowers with little home equity when they needed to refinance or secure a second loan to save their home from foreclosure.
The interest only loans left them with little or no equity which meant no collateral for the loan. Their homes fell into foreclosure as a result.
An interest only mortgage loan is one in which the monthly payment is exactly the amount of the interest accrued so far on the loan and doesnt touch the principal.
This interest only feature only lasts for about the first five to ten years of that loan, and while borrowers have the right to overpay at any point their overpayment only goes to future interest payments – again, not the principal.
What this means is that for the years of the interest only option the borrower isnt paying off her or his loan. A 100,000 mortgage in 2000, with an interest only option for 10 years, will still have a balance of 100,000 in the year 2010.
Were the borrower to run into difficult making these payments and find the threat of foreclosure hanging over their head, they could be in serious risk of foreclosure. Lets assume, for example, that the houses market value in 2010 was 120,000.
Since literally none of the borrowed 100,000 had been paid off the equity in the home would be at a mere 20,000. If, however, the mortgage payment made each month to the borrower included 200 towards the principal at the end of that 10 year period the borrower would have another 24,000.
Actually the equity would be much greater because as the principal was paid down the interest on the balance would decrease and the same payment would pay more of the principal and less of the interest. This additional equity might save a home from foreclosure if the borrower were to get sick, lose a spouse, lose a job or otherwise get into financial trouble that made payments late or missed.
The general rule of thumb is that interest only loans should not be considered unless you know for a fact that your earning power five to ten months down the road will greatly increase and your outstanding bills will decrease.
Then the risk of paying a little bit now and a lot later isnt as great. You wont be risking foreclosure..
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