All About Business Protection Life Insurance: 2009

Thursday, December 24, 2009

Update Dec. 24 - 2009 All About "Business Life Insurance" Information By Insurance Experts

The Value of Insurance For Business Security

By Sarah Martin

Insurance is often undervalued, frequently because people have a narrow mind when it comes to the insurance business as a whole. However, insurance helps to give security to business dealings. Here is a look at how insurance can give your business security.

Insurance is a swap:

All types of insurance do one thing - they exchange a small, certain payment for a large, uncertain loss. Basically, this means that you pay a small fee and fixed intervals (your premium), and the insurance company will take the risk should any losses ever occur.

Take, for instance, a flood. Floods are often destroying business property and inventory, but it is impossible to know when one will, if ever occur. If you were able to tell when a flood would occur, you wouldn't need homeowner insurance. But because you can't, taking out a flood insurance policy can help you to replace the things that you lose when there is a flood.

Group statistics can be calculated:

While you cannot tell what your chances of a flood, fire, or other disaster will be, your business group as a whole has set statistics. For instance, if you own a bakery, your risk of having a fire destroy your business is higher than the risk of a fire taking down an office building. Knowing that, you could decide that as a bakery owner, your risk of having a fire is higher, and you therefore need more insurance. If you are an office owner, you could decide that your risks are lower and that you need less insurance. Every business and every individual needs certainty, and insurance can help to provide certainty in an uncertain world.

All insurances are similar:

Fire insurance is not terribly different from flood insurance, and flood insurance is not any different than life insurance. To a certain extent, all insurances are the same. If you work with life insurance, then you know that approximately 3.8% of people die before they are 25. This means that another 96.2% don't, but you have no way of knowing which of the two groups you will be in. All you can do is calculate your personal risk. The higher your risk, the higher your premium will be.

This is true of all types of insurance, including home owner's insurance. Property owners never know how good their title is. A merchant doesn't know how much he will lose on a given debtor. However, when you look at a large enough group, you can get an idea of what your individual risk is. Everything you do in business has a certain risk to it. On your own, you cannot determine what the risk is, but as a member of a business group, you know what the statistics are for that group.

What insurance does for your business:

Business has risk. There is the risk of losing property, losing life or health of employees, or losing money, among others. What insurance does is give you some guarantee against these losses. By knowing what your risk factor is, and insuring it appropriately, you will know that you have what you need sure an incident ever occur.

Sarah Martin is a freelance marketing writer based out of San Diego, CA. She specializes in business, finance, and insurance. For a free home owner's insurance quote, please visit http://cheap-insurance-rates.com/

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

Life Insurance - Pick the Right Type For Yourself, Your Family, and Your Business

By Marilyn Katz

You purchase either permanent or term life insurance. Permanent life insurance will cover you for your whole life with premiums calculated to cover the cost of insurance until a very advanced age, typically 100. If you live past the advanced age the policy is calculated for, you will no longer need to pay premiums, and in some cases, may receive your death benefit as a birthday present! If you pay premiums for your whole life, then this is called whole life or straight life insurance.

Even though the premiums are calculated to provide you insurance over a long life, you may have a policy that can be paid off in a shorter times. Common pay off periods are ten or twenty years. In order to receive the full tax benefits of insurance, as in a tax free death benefit, the payoff period must be longer than seven years. If the payoff period is shorter, the policy is called a Modified Endowment Contract (MEC).

An example of a MEC is single payment whole life. These types of life insurance are still popular products, especially seniors who want to transfer wealth to their heirs. For instance, a twenty thousand dollar contribution may provide an immediate death benefit of thirty-five thousand dollars. In addition, these types of policies usually pay interest on the cash value, and they may even be indexed to equities like the stock market. Since they have an immediate cash value, money will grow right away. The longer the insured person lives, the greater the value of the policy. The death benefit will be taxable under current federal law, but the growth is tax deferred, and they provide an immediate death benefit.

Another type of permanent insurance is called Universal Life. Universal life insurance separates the cost of insurance from the cash value, and many products are indexed to security indexes like the S&P 500, allowing for greater returns. Most policies guarantee that the return will never be negative, and some provide a no-lapse guarantee. This means that as long as you pay an agreed upon minimum payment, the insurance company will not lapse your policy because the returns are not large enough to cover the cost of insurance.

On the upside, gains in the value of your insurance policy can increase your death benefit, increase the cash value, and generally provide you with ways to access the money in your policy while you a alive. As you may have guessed, Universal Life Insurance provides life insurance, as well as an investment or savings vehicle. You may assume more risk with Universal Life than with Whole Life, but can be rewarded with greater returns.

Of course the last type of insurance is term insurance. This is usually considered pure insurance because you are generally only paying the cost of insurance without ever receiving any cash value. That is why term life insurance has the lowest premium cost. The insurance company only accepts the risk of insuring your life for a specified period of time. They are betting you will live for a period of ten, twenty, or thirty years. You are purchasing term life insurance to make sure that your family or business will survive just in case you do not.

Of course, the life insurance world is not this simple. You can add a term rider to universal life insurance to provide extra protection during those years when you need more coverage, You may also add return of premium riders to term policies so you will get premiums refunded when the policy ends. Before you purchase a long term contract like life insurance, you should always consult with professionals and do your own homework.

M Katz has helped many families and businesses choose life insurance protection. The key is to analyze an individual's needs, educate the consumer, and then allow them to select a policy that will serve their needs. M Katz believes that insurance shopping works out best when it is a consumer directed process!

Let us help you find the cost of life insurance with our fast, safe, and free online quote forms!

Best Insurance Rates

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

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Friday, December 4, 2009

Update Dec. 04 - 2009 All About "Business Life Insurance" Information By Insurance Experts

20 Year Term Life Insurance - So Many Uses For This Policy

By Donald Lusan

The 20 year term life insurance policy can be effectively used in oh so many situations. We will look at some of them but first let us define what this policy is all about. 20 year term insurance has a level death benefit for the entire 20 year period. This death benefit can be paid in one lump sum or in income form. The premiums, more often than not, are also level for the duration. Sometimes a life insurance carrier may elect to allow applicants to start the policy at a lower initial rate then increase it at a specific predetermined date in the future, for example, at the 5 year point or 10 year point. How could you effectively put a 20 year term life insurance policy to use?

If you are married and you have children the youngest of which, for example, is 5 years old this policy could cover all your immediate life coverage needs. This policy can determine that your present income will continue after your death. It could be used to provide planned sums of money that would be used to pay college costs for your children even if you are not around to share the event with them.

A portion of the proceeds of your 20 year term policy could provide funds to pay final expenses and burial costs.

If you are single and have no dependents this policy can be used to put you six feet under without any financial burden to your relatives. Why would you use this policy? The answer is simple. Although your need for life insurance is limited today, over the next 10 or 20 years you likely will have a need. As the price is so very low at the younger ages it may be wise to buy the policy now and when the time comes that you really need to own insurance you will already have it. You should also keep in mind that as you get older there is a possibility that you could develop some illness that may cause the company to charge you extra or to disqualify from obtaining a policy.

If you are single and have children your need will be much like a married person with dependents.

We tend more often than not to give much thought to the needs of the children in the event of the death of a parent. That is great but what of the needs of the surviving spouse. If the children are grown and on their own we still have each other. What if one of us should die. What of the surviving spouse. Is his or her income sufficient to live. Is the mortgage paid off or will the surviving spouse have to continue monthly payments. Think on these things. The 20 year term policy could provide cash or income for your surviving spouse which would be used to take care of these things.

Many business people find it a good decision to buy 20 year term life insurance. Business people tend to plan 1 year ahead, 5 years ahead, 10 years ahead and 20 years ahead. They may use life insurance to fund buy sell agreements if a partner or shareholder should die. They could buy out the shares from the heirs of the deceases partner or shareholder. Both surviving family and surviving shareholders should be pleased in this case. This policy is often used for key employee insurance. The death of a key person can devastate a business while they go about replacing this valued employee. The 20 year policy is a favorite for these business situations.

As you can see 20 Year Term Life Insurance is very often a good choice.

For more than 40 years Donald has been known for his extensive knowledge of the life insurance business. He has represented some of the largest and most admired life insurance companies in the United States as well as Canada. His advice is invaluable.

Donald's website is: http://www.lifeinsurancehub.net

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

Small Business Life Insurance Needs

By Donald Lusan

Have You Given Any Thought To Small Business Life Insurance?

What Type Of Business Do You Own?

Is your business a Sole Proprietorship?

Are you part of a business Partnership?

Is your business an S Corporation?

What about a C Corporation? Is this how you incorporated?

Have you taken advantage of the new Limited Liability Company laws?

How about Key Employees? Do you have any employees that you can categorize them as Key Employees?

Small business life insurance as it applies to each type of business is different in many ways but there are also many similar features as well. What we are discussing here is not group life insurance but more specifically life insurance as it applies to the owners of each business and life insurance for the key employees. Let us take a look at each type of business and how life insurance could go a long way in protecting the business itself as well as the heirs of a deceased business owner.

The Sole Proprietorship.

Because the owner of a sole proprietorship and the business itself is considered one and the same one may think that the need for small business life insurance is limited. Nothing could be further from the truth. We put in a lot of time and effort building a business that has to be dissolved at our death. We do want to have this business transferred to a member of the family when we die. How can this be done?

The estate of the sole proprietor can sell the assets of the business upon his or her death. A small business life insurance policy can be bought during the lifetime of the owner the proceeds of which would be used to buy the business. A buy sell agreement, which would be binding, would determine the terms and the amount to be paid for the business.

Let us assume the proprietor is married and has a son or daughter who is interested in taking over the business upon his death. This young person has spent a lot of time learning the intricacies of operating the business from his or her father. So dad decides he wants to transfer this business to this child upon his death. He has a buy sell agreement drawn up by an attorney that would fulfill his desires. This agreement is funded buy a small business life insurance policy specially bought for that purpose.

The proprietors wife is not particularly interested in the business but if the business owner dies before her she will still need income. The proprietor dies. The proceeds of the small business life insurance policy is used to purchase the business from the estate and the wife has full value in cash. She can use this money to purchase an annuity that would pay her an income for a certain number of years or for a lifetime. Of course this decision will depend on the amount of money we are talking about here.

The Partnership.

The use of small business life insurance in a partnership is very simple and straightforward. The ownership of this partnership is in the hands of three partners. For the sake of easy explanation let us assume that that these partners own equal shares. A buy sell agreement would be set up that would state that the partnership would buy the shares of a deceased partner from his heirs. The buy sell agreement would be binding. The heirs cannot decide they don't want to sell. The partnership would buy a small business life insurance policy on the lives of each of the partners in the amount of the value of their shares. The proceeds would be used to fund the purchase. In some cases the policies can be owned by the partners themselves. The results are the same.

The Corporations.

Small business life insurance for c corporations, s corporations are limited liability companies is very similar to that of the partnership. The corporation usually owns the policies on the lives of the principals. Upon the death of a stockholder the corporation buys the stock from the heirs of the deceased. A small business life insurance policy is the least expensive way to fund the buy sell agreement. It is recommended that the insurance is updated on a regular basis and that the buy sell agreement is reviewed and updated from time to time...as it is binding.

Key Employee Life Insurance.

What state would your business be in if a key employee died? Have you given this any thought? In my 40 years in the life insurance business I have seen many interesting situations. Some businesses had no key employee life insurance on their valuable employees...much to their detriment. Others were prepared and things continued on smoothly after the death of the key employee. It is recommended that if a business has a very valuable key employee that they buy a small business life insurance policy on the life of that employee equal to about 5 years of that employees income. Upon his or her beath the proceeds of the policy is paid to the business and used to help keep the business going while the company finds a capable replacement.

For more detail on Business Life Insurance go to: http://www.lifeinsurancehub.net

For more than 40 years Donald has been known for his extensive knowledge of the life insurance business. He has represented some of the largest and best life insurance companies in the United States as well as Canada. His advice is invaluable.

Donald's website is: http://www.lifeinsurancehub.net

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

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Sunday, November 15, 2009

Nov. 15. - 2009 All About "Business Life Insurance" Information By Insurance Experts

Life Insurance and Your Business

By Jorge Herrera

Most of my articles are focused to personal financing, because it is where the Infinite Banking Concept offers the easiest applications and not everybody owns a business.

Although we look at interest and charges and taxes as business expenses, and we can deduct most of them as the cost to do business, we as business owners can harvest huge benefits, when we combine our normal business operations with the banking capabilities that the IBC (Infinite banking Concept) provide us.

One of the main reasons we take on a business structure is to be able to deduct many expenses and for that reason pay fewer taxes than an employee.

Everything we do is financed; no matter if we are an individual or a business, so if we have to pay interest for the use of the money, then why not pay that interest to ourselves? And business owners are notorious for not treating the business capital (money) as a business.

Business owners are much disciplined at paying the loans and using borrowed money very efficiently, but they do not pay attention at the business own money being managed efficiently so it generates profit.

Leverage is a beautiful concept, and using somebody else's money to generate profit is good business, but that implies paying interest to someone else to use their money and that makes the business operation more expensive.

What if you could capitalize and create a pool of money that you can use to finance some of the business operations, at the least, you would have an option of using your money or somebody else's money and that will put you in a position of strength.

There are many applications where using your pool of money will allow you and the business to improve efficiency and that will generate profits and cash flow. There is a lot of money that can be recaptured while leasing vehicles or equipment; financing inventory will provide a real cost that is overlooked on the sitting equity represented by that inventory.

Other uses are: It can help retaining key employees; it can ensure the continuity of a business by providing protection and buy-sell purchase options. It can be used to fund projects and provides a safety net for bad economic times like Walt Disney and J.C. Penny did.

While there are many ways you can set up a personal banking system or create a pool of money to benefit yourself and your business, depending on the particular purpose, The Infinite Banking Concept and permanent life insurance will be your best bet.

I am a practitioner and very passionate promoter of the "Infinite Banking Concept". Close to four years ago I opened my eyes and ears to the limited knowledge of money management by the use of Whole Life Insurance and when I realized how powerful and beneficial to the average American it was, I decided to open my mouth to promote it. I will use all my training and team resources to help you find the money that is already in your cash flow, to implement your personal banking system.

http://InfiniteBanking.com

http://Bankonyourcashvalue.com

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

Business Life Insurance 12 - Advantages and Disadvantages of Common and Preferred Share Holders

By Kyle J Norton

As we mentioned in the previous article, we know that corporations generally are started by it's original shareholders who provide the start-up cash or assets in exchange for their shares. The corporation may eventually be owned by a large number of shareholders. In this article, we will discuss the structures of corporation shares and types of shares that corporation can issue. There are 2 types of corporation shares: common shares and preferred shares. These shareholders have certain rights:

1. Common share holders
a) Advantage
* right to share in growth of earnings and assets.
*right to sell shares.
* right to vote on Board of Directors and certain issues.
* right to attend company meetings and examine the books.
* right to annual report.
* receive a tax credit on Canadian corporate share dividends.

b) Disadvantage
* last to receive a portion of assets on wind-up of a company.
*dividends are only paid when declared and are related to amount of net earnings.
*dividends are paid after bond interest and preferred share dividends.

2. Prefer share holders
a) Advantage
* dividends are paid before common shareholders but after bond interest
* bonds holders come before preferred shares at the wind-up of the company.

b) Disadvantage
* Less indication of company ownership
* Corporation dividends are usually fixed by the share certificate and affected by the profitability of the company and the intent of the Board of Directors.

I hope this information will help you understand more of the right of corporation shareholders. If you need more information, please visit my home page at:

Kyle J. Norton
http://lifeanddisabitityinsuranceunderwriter.blogspot.com/
http://businessinsurance12.blogspot.com/
All rights reserved. Any reproducing of this article must have all the links intact.
I have been studying natural remedies for disease prevention for over 20 years and working as a financial consultant since 1990

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

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Wednesday, October 28, 2009

Update Oct. 28 - 2009 All About "Business Life Insurance" Information By Insurance Experts

How the Life Insurance Sales Lead Can Grow Your Business

By Frank Rodriguez

The Internet is the best source for finding life insurance sale leads. There are more than enough choices of where to buy them. The leads, are the consumers who are looking for affordable life insurance that will work with their budget, so they can make their payments. People want to be covered for life but they worry about the cost.

The states do not demand that we carry coverage for life and this allows people to put it off and wait for a better day to think about it. When you buy a list of leads you will not be getting these consumers on your list. You will talk to those who are concerned, and seeking a quote to make a decision.

A lead generation company has to do a lot of advertising and then they collect the data to form the demographics of the interested caller. The list should be fresh and no more than a day old. When a person ask for information that they thought they would get from the call they are ready for answers. Waiting very long to call them will cause their interest to drop or they call a different agent.

When you purchase a list you should have the information necessary to prepare for the call. You do not want to sell a policy for a large family to a single person, so offer them only what is appropriate for their income. Trying to hard to sale to those who want to buy will kill the sale. Talk to the person as one who understands they need a plan that fits their lifestyle. They will trust you because you are sensitive to their needs as you being the agent should.

Some of the best leads are still the word of mouth leads. These consumers already have a degree of trust with your product; because their friend is happy with it. Create trust with your customers since this will send you more customers and get sales. The good ole sale spill has hit the floor and can be seen coming. Try the tactics of honesty and up-front information since there is not anything to hide.

When you are looking to increase, your sales simple try a reputable company that sells leads. The list must be fresh in order to catch the consumer while their interest level is still high. The longer they wait to hear from an agent the less interested they become. When a consumer is ready to purchase Life insurance, they will find an agent willing to help them instead of waiting over 24 hours. Those that want to buy the same day will.

When you are skilled, at closing sales, you can hire someone to help with calls; and you finish the call; closing the sale. Some companies offer this service too. They will transfer the call to your phone after they have confirmed the consumer's interest.

You can understand why I say finding a life insurance sales lead is easy. This really comes down to your motivation since the consumer is waiting for an agent to call them, even while you read this article. You have available the source of leads and if you have the expertise to sale your product. Use all these attributes and you should watch your sales grow significantly. Try an insurance lead provider that has experience and the newest technology to get the volume of quality leads you need and start growing today.

If you would like more complete information on the life insurance sale lead and how it can increase your sales please visit the site today. You will find everything as it relates to the life insurance sale lead business and more.

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

The Life Insurance Business in 1868

By Sarah Martin

The world of 1868, when the Metropolitan Life Insurance Company was born, was very different from the world we know today. There were no telephones in those days and no electric lights. The country had not yet been spanned by a transcontinental railroad. Records were kept in handwritten ledgers, and business letters were penned in longhand. The entire population of the United States was only about 37,000,000. The flag then carried 37 stars.

Canada at that time contained only 3,500,000 people. She had only one year earlier (1867) achieved Dominion status in the British Empire. The two countries, although their frontiers were expanding, were still largely rural. At the census of 1870, the American population living on farms and in country villages numbered about 30,000,000. Persons engaged in agriculture, forestry, and animal husbandry constituted half the total working population.

The War of the States, to be sure, was over, but the struggle had left in its wake a variety of national problems-- not only political but also economic and social. The Nation was still feeling most of these with full force. For instance, greenbacks were still in circulation, and specie payment was not to be resumed until 11 years later. With the emancipation of the slaves, the labor problem reached a new phase. The Government of a now united Nation was anxious to offer its citizens fields for expansion, and through the Homestead Acts and subsequent land grants made thousands of farm acres available to pioneers.

To others more enterprising, new territories offered opportunity to exploit the resources of great plains and mountains. The primary need of the country was adequate transportation facilities, which were considered a key to further economic progress. However, all signs pointed to a great expansion ahead. The actual issues of the war itself had, for the most part, been settled. The country could now go forward to the fruitful destiny which its rich natural resources and its vigorous people promised.

Industry, commerce, and finance felt the new stimulus to surge forward. The business depression which immediately followed the close of the war proved short and was succeeded by a distinct upturn. By 1868 there was in progress a business revival which was to last five years. The Metropolitan was thus launched on a rising economic tide. Immigrants in large numbers were encouraged to come to add the work of their hands to the building of the country.

They made up a new working population, which took root, for the most part, in the cities. Crossroads were becoming towns almost overnight. Towns were swiftly growing into cities. A deeper sense of permanence colored the thoughts of the American people, who began to think in terms of a future, a home, family security. The United States was rapidly coming of age.

The class of wage earners was growing rapidly, a circumstance which, as we shall see, proved to be a determining factor in the development of the Metropolitan. As inventions multiplied and factories grew, women and children were employed in greater numbers. The acceleration of industry and of urban life accentuated the economic insecurity which many felt in their new environment.

City dwellers became conscious of the hazards of long working days, child labor, and industrial accidents. Mines and railroads and machines were being developed with consequent risk to human life. Health conditions in our cities were far from good. To provide a measure of security for this increasing urban population, life insurance and private health insurance companies came into being.

The war decade of the 1860s gave opportunity for the great expansion of the life insurance and individual health insurance business. As a result, more than 100 companies were functioning by 1868. The New England Mutual and The Mutual Life Insurance Company of New York had already been in operation for 25 years.

In fact, when the Metropolitan appeared on the scene, there were already in existence organizations with such familiar names as the New York Life, the Equitable Life of New York, the Mutual Benefit of New Jersey, the John Hancock, the Aetna, and the Connecticut Mutual. By present standards none of these companies was large, yet in their day they were important economic enterprises. At the end of 1868 the largest of these, The Mutual Life of New York, had gross assets of more than $30,000,000 and insurance in force amounting to nearly $200,000,000.

Sarah Martin is a freelance marketing writer based out of San Diego, CA. She specializes in business, finance, and private health insurance. For a free individual health insurance quote, please visit http://www.cheap-insurance-rates.com/.

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

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Friday, October 9, 2009

Update Oct. 09 - 2009 All About Business Life Insurance Information By Insurance Experts

Business Life Insurance 15 - Option to Fund Buy-Sell Agreement
By Kyle J Norton Platinum Quality Author

There are three main options or ways to fund the Buy-Sell Agreement. I'm sure you won't be surprised to find that most Buy-Sell Agreements are paid out using life insurance. In fact, the first two funding options deal with available options using life insurance:

1. The criss cross option
Under this option the life insurance is owned and paid for by the partner out of after tax income. In other words, life insurance are purchased and paid for by the partner or shareholder on each other's life and the owners are the beneficiary. This is the primary and traditional method of structuring a buy-sell agreement and for sole proprietors and partners and it is the only option available for unincorporated businesses. Under the criss cross option, policies can be co-owned and paid for by split dollar arrangements.

2. Split dollar funding option
The second option to fund buy-sell agreement is split dollar funding option that is the pre-determined agreement between employer and employee on how to fund life insurance premiums. Split dollar funding became popular to fund several important functions.

a) Key man insurance and award.
b) Employee buy-out.
c) Corporate buy-sell agreements between shareholders and used as the incentive for a business to accommodate a split dollar buy-sell agreement
i) The premium payment creates unequal contributions due to extreme differences in the ages of the partners, or employees buy out the owner.
ii) If the employee is the son or daughter of the owner, it allows the siblings and heirs to be compensated in cash for their share of the business interest.
iii) It is particularly attractive in closely held corporations due to the lower corporate tax rate. This is not available to partners where the tax advantage is considerably less advantageous.
Whole life policy containing cash values is the best choice for life insurance used for buy-sell agreements.

3. Corporate repurchase and corporate redemption method
The third funding option for buy-sell agreements is the corporate repurchase or corporate redemption method. This is used solely by corporations, who may also use the criss-cross method. The corporate repurchase or corporate redemption method may be funded in one of two ways:

a) Cross-purchase agreement:
This technique is funded by tax free dividends. It provides for corporations:
i. To own the required amount of insurance on the lives of the shareholders.
ii. To pay the premiums.
iii. To be the named beneficiaries.

b) Corporate buy-back of shares.
Premiums of insurance are paid by the corporation.

I hope this information will help. If you need more information of the above subject, please visit my home page at:

Kyle J. Norton
http://lifeanddisabitityinsuranceunderwriter.blogspot.com/
http://businessinsurance15.blogspot.com/
All rights reserved. Any reproducing of this article must have all the links intact.
I have been studying natural remedies for disease prevention for over 20 years and working as a financial consultant since 1990

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

Top Insurance Company Secret Revealed - AIG Life Insurance Company & Others Risk All Buying Business
By Donald Yerke Platinum Quality Author

As an insurance insider I will reveal why the failing of AIG Life Insurance Company was destiny, not fate. The top insurance secret reveals the practice of AIG Life Insurance risking all for financial glory. Other insurance company headquarters like AIG have commonly manipulated business risk. See why buying business is a risky financial explosion rarely succeeding.

Sure you read and saw on the news lots of reasons why AIG is a still a failing life insurance company that will never recover the financial status it once had. The liquidity crisis caused by dealing in derivatives tied to the downfall of the real estate market in the United States is not surprising. Dealing in subprime mortgages seemed a certain bet to obtain high profit returns. Lots of life insurance companies did it also. However it is now revealed that only a little over a dozen show any possible failing financial outlook.

This dirty dozen, did almost everything the same as AIG Life Insurance Company. Products were offered by agents and brokers that were equity indexed annuities. These products sold mainly by industry giants, put the annuity policies offered by other companies to shame. Before the financial bailout, the insurance and financial trade magazines were loaded with top ads revealing why their products were the best agents could ever offer their clients. All of these companies should be accused of greed. Fortunately for their financial sake, these other providers still promoted other annuities and various profitable life and health insurance products.

The Top Secret Revealed

AIG pulled out one of the most dangerous secrets in the industry. To gain insurance market share the easiest way is "buying business". In the competitive insurance market to have to have a large field force of agents selling your products to stay or become an industry leader. Companies like Metropolitan, Prudential, New York Life, and others were hard to jump ahead of with name recognition and plenty of agents. To move up, AIG Life Insurance Company each year kept trying to climb the charts to become the number one company with the most assets They enacted an old trick works that works for some insurers, and causes the financial downfall of many more.

How Buying Business Works

Almost all health and life insurance products plus non-institutional annuities are directly sold by insurance agents. The average agent has great difficulty in selling an annuity. Other financial orientated agents make their living selling annuities and investment products. AIG Life had a plan that could combine annuity and great investment. Nonetheless, the equity indexed annuity product cannot sell itself. That is when the company began the process of buying business. The purpose being to sell massive quantities of a product so you can bypass the assets of insurance companies ahead of you. You then become the top dog with other carriers chasing you.

The process involves giving clients the highest payouts on money invested, and pay selected insurance representatives the highest commissions for selling their annuity product. AIG Life decided to do a similar concept with their term insurance, as new policyholders ordinary do not die for awhile. Therefore, little money would initially be spent on paying claims. The client received the cheapest term insurance rates that were often 30% less than other major companies. The independent agents were rewarded with commissions well beyond the normal 60% to 70% range. In fact the commission varied from 80% or over 100%.

Easy sales and lots of them were racked up by the selling agents, bringing in more money than ever before. In turn, AIG was revealing gigantic increases in the amount of premiums collected. They were skyrocketing in the industry charts. Suddenly all came to a halt. The real estate mortgage crash which few experts predicted was the real crusher.

Their poor planning style on buying business was greed motivated, poorly planned, and misfortune bound.

When you offer the lowest rates, or highest investment return, plus pay the highest insurance company commission eventually lightning will strike This is the effect of buying business. AIG felt after accumulating enough business they could gradually raise rates, and have an established base of agents selling more profitable policies. AIG did not realize that agents that sell annuities and term insurance are not loyal. A better offer from a competitor and the business will then stop to flow. There they were caught in a death trap set to occur. If the liquidity crisis did not take place first, eventually all the cheap term policies would have turned into expensive death claims forcing them into company receivership.

The consequences of buying business could take many years to occur. By then their fat salaries and astronomical bonuses could have cushioned them into a guaranteed retirement plan. The insurance company like other companies that engaged in buying business were doomed to fail. The failure was no secret to me, as I have seen so many cases of buying business eventually causing an health, annuity, or life insurance company go into state receivership.

The logic of governmental & taxpayer bailout is far from a guaranteed solution. On that subject I will leave it to anyone who passed Economics 101 to explain.

Well published author, Don Yerke likes to concentrate on what you don't know or what no one else dares to print. Tell it like it is.
Watch for his new paperback book debuting on Amazon this summer. It is loaded with great insurance marketing, brokerage, sales, and recruiting information.
Come and get your FREE "Think and Grow Rich" Ebook by Napoleon Hill instantly.

The website address is http://www.agentsinsurancemarketing.com

Save more than 60% Visit the website to get a package of Ebooks at under $1.99 each.

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

Life Insurance - Pick the Right Type For Yourself, Your Family, and Your Business
By Marilyn Katz Platinum Quality Author

Let us help you find the cost of life insurance with our fast, safe, and free online quote forms!

Best Insurance Rates

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

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Sunday, August 30, 2009

Update Augaust 30 2009 All About Business Life Insurance Information By Insurance Experts

What Business Insurance Do I Need?
By Billings Farnsworth

Insurance is a part of life. We have health, homeowners, automobile, life, and even business insurance. Business insurance, of course, is only used by entrepreneurs and businesses. Despite this, however, it is just as important as the many other types we use today.

Insurance is a form of protection against financial blows that would otherwise be back breaking. Most people have to cover only themselves, but a business needs to make sure all parts of the establishment have the proper coverage. The first thing that needs to be considered is liability. Where could an accident occur that could hurt the company? Are there employees driving company cars, is there anything on the property that might damage something else? Figure out where the liability may lie and buy a policy that will thoroughly cover it.

After making sure you have liability insurance, any other coverage you choose is truly preference, but it wouldn't hurt to have. This added insurance will vary depending on the type of business you run. For example, the bank of New York will want New York Business Insurance to cover the potential loss of any money in the event of a theft. On the other hand the CEO of a large company may want to get a business life insurance policy on himself and/or those directly beneath him on the success ladder. The company is usually the recipient of these funds in the event of a death. Then, of course, there's the typical health insurance given to employees through the business. This is a form of business insurance as well.

You may choose to start with liability only and work your way up or you may choose the full spectrum and give full or partial coverage to yourself and your employees. Again, it is preference, but extra coverage never hurt anybody.

Community Brokerage (http://www.01insurance.com/new-york-business-insurance/) offers information on New York Business Insurance. Billings Farnsworth is a freelance writer.

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

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Tuesday, August 11, 2009

Update Augaust 11 2009 All About Business Life Insurance Information By Insurance Experts

Why People Buy Life Insurance
By Donald Lusan Platinum Quality Author

Have you ever considered why people buy life insurance? I know the salesmen and the creators of the policies themselves have thought about it because if they didn't these policies simply wouldn't sell. Probably the greatest life insurance salesman ever once said that "selling is 98% understanding human beings and 2% product knowledge". Another question that is worth exploring is why do some people not own any life insurance at all. Why would you buy life insurance?

Love of FamilyMore often than not the reason people buy life insurance is because they care about what their loved ones will experience if they should die suddenly. This caring can be expressed in different ways. The Hawaiian people, I am told, have such a deep passion for the well being of their families that they will go to extreme limits to protect them. They tend to buy lots of life insurance as a result. There are others who buy life insurance through a deep sense of responsibility. They love their families but they are driven more by the fact that the family relies on them so they have to live up to what is expected of them.
Tax AdvantagesSome people, especially the business minded, buy life insurance for the tax advantages the purchase provides. The death benefit of the policy is paid free of Federal Income Taxes more often than not. If the policy is part of your estate the proceeds are taxable. If you own cash value life insurance the cash value and dividends accumulate tax free. When you cash in the policy you will need to pay the taxes on the interest earned. The reason this is advantage is that these policies are usually cashed in round and about retirement time. Your income is likely to be less than when you were working so you would be in a lower tax bracket.
Tax SheltersThe most highly paid life insurance salesmen are the ones who know the tax laws inside out. Here is how they do it. They are usually qualified Financial Planners. Some are Attorneys or Accountants. What they do is to show well off people legal ways of sheltering their income from Income Taxes. They save them a lot of money. As a result these clients think nothing of putting some of the money in a life insurance policy that they need anyway. They need to buy life insurance to protect their families. A large portion of an estate can easily go to pay estate taxes. These people buy life insurance policies sufficient to pay the taxes upon death.

The reasons we buy life insurance may vastly differ but everyone needs to buy some sort of a policy...if it is even just to take care of final expenses.

Here are some things that everyone should consider:

http://www.lifeinsurancehub.net/estateplanning.html

And for the person who owns a business:

http://www.lifeinsurancehub.net/businesslifeinsurance.html

Donald's website is: http://www.lifeinsurancehub.net

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

The Recognition of a Life Insurance Policy Holder
By Graham McKenzie

When a life insurance policy is purchased, the widow/widower is protected when a fatality is recorded. 90% of a population decided on purchasing a policy.

Those business minded individuals may make insurance claims in correlation with cooperations along with other members. These methods are traditionally described as covering the security of the business in the time of an associate losing life. There are limits on whom is eligible for the purchase of an insurance policy.

Anyone is able to get insurance on their life. Typically, the cost is the issue when contemplating if this is a policy that is needed by the purchaser.

As the research increases on the causes of death, these findings are put into set of guidelines that are taken into consideration when applying for insurance. For example, a person that smokes cigarettes, or consumes a controlled substance will pay more for life insurance, versus a person that doesn't do these things. Life insurance policy premiums are based on what is more likely to cause the death of a person, when in deed death is inevitable no matter what.

Be extremely careful when gaining an insurance policy. Although, no one is turned down for trying to get insurance on a life, there are things that will increase costs. Anything with carcinogens, are considered life threatening and will raise the degree of risk bracket that is used to determine the costs of policies.

After considering what limits need met to obtain an insurance policy at a rate that falls within your budget. Contemplate who the beneficiary will be, and if this is the best way to prepare for a death. There are other options, where a person can set their own rates. If a separate account is the route you decide on, make sure you calculate for everything that is involved in final expenses.

If you find you are considered a low risk applicant when getting a life insurance quote, and you have people that will need money when you die, life insurance is wise. If you have to make minor adjustments to the way you live to lower your premium and you are willing to abide, life insurance is the best way to go.

Chances are if you are an adult with limited social habits, work behind a desk, and do not have any ongoing illnesses, your premium will be pretty cheap. On the other hand, a middle aged person, that works as a police officer, with testicular cancer that has been in remission, will pay more to insure his life.

The last thing to realize when deciding on life insurance. How much money will the beneficiary receive? Is the ratio of premium payment to benefit feasible? Will all costs be covered? These are a few questions to ask yourself when making a decision.

Graham McKenzie is the content Syndication Manager at insurance123.co.za South Africa's leading Life Insurance information portal.

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

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Sunday, August 2, 2009

All About Business Life Insurance Information By Insurance Experts

It is important that people own a business understand what is business insurance, so they can protect their business in case of any unforeseen event happened causing hardship to the business owner and their family such as business store burned down one day, if you don't carry insurance, you would endured some hard times after that. You make sure you have insurance for anything of importance, or anything that could prevent me from earning a living. In fact, business insurance helps people who own businesses to protect the viability of the business and themselves, so they invest in business insurance. The protection of business insurance involved their assets is primary and the guarantee of a business to carry on is a close second. It also is an extension of the protection of the family interest , as such, as a convenience for the Underwriter to tackle the inherent problems.
Business insurance usually falls into one of three categories:
1. A Buy and Sell Agreement between partners or shareholders that make sure that the survivor(s) to carry on after death of the owner or one of the owners

2. Recovery of loss of income in the event of business interruption due to the death of one of the owners. In most instances, it would be wise to insure the human life values as it would be to insure the physical assets.

3. Insurance to protect the employees and their dependents from the financial hardship that can be created at death, disability and retirement.

Business insurance also helps to

1. Transfer ownership upon death of an owner to a new owner, a partner or another shareholder(s) in the event of death or retirement.

2. Insure key persons – Often success of a business rests on the shoulders of one or more very talented employees. These vital components of the business should be insured in the event of their death or disability to ensure the business will continue successfully.
3. Provide coverage for a most important assets of business – its employees ( By Kyle J. Norton )

Business Life Insurance - Option to Fund Buy-Sell Agreement
By Kyle J Norton Platinum Quality Author

b) Corporate buy-back of shares.
Premiums of insurance are paid by the corporation.

I hope this information will help. If you need more information of the above subject, please visit my home page at:

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

Business Life Insurance - The Advantage & Disadvantage of a Sole Proprietorship
Kyle J. Norton

As we mentioned in the previous article, sole proprietor is responsible for every aspect of their business and they may hire others to carry out these duty.
I. Set up and continuation is uncomplicated.
1. Register a name for the company and renew it as required by law and obtain necessary licenses.
2. A sole proprietor keeps all the gains and is responsible for all the losses.
3. Company incomes are treat as personal income therefore sole proprietorship only pay personal taxes.
4. They also have the power of the right to borrow funds for operating capital or estate settlement needs.
5. The power to change the form of business.
6. Their personal saving bank account is the business capital account.
7. Pay and deduct wages to family members who are usually taxed at a lower rate than the owner.
8. All their personal and business assets are subject to claims of creditors.
9.All loan financing are limited to personal and business assets available as collateral.
10. The business ceases at the death or the owner.
II. If the owner wishes the business to continue, they should:
a) stipulate in the will that the executors and trustees are not responsible for the deceased’s prior business debts as well as subsequent business debts incurred while carrying out their duties.
b) the will should state how the business is to be disposed of.
c) the executors should execute the buy-sell agreement, if one exists. We will discuss how buy-sell agreement with life insurance works and why it is the best solution for sole proprietorship and theirs employees after the death of the owner.
I hope that this information will help you to understand the advantage and dis- advantage of sole proprietorship. If you need more information, please visit my website at http://businessinsuranceii.blogspot.com

Do You Own A Business? Here Are Ways A Term Life Insurance Can Save You A Lot
By Chimezirim Chinecherem Odimba Platinum Quality Author

It's a great thing to own a business. But there are tough times that come with it. What happens when an employee passes on? What happens if they get disabled even it happens outside their line of duty? What happens if a partner passes on? These are tough questions that a term life insurance policy can help you answer with more ease with any risk to your business. Let's look at each of these scenarios in details...

1. What happens when an employee passes on? Believe it or not, it affects your business unless the employee was totally worthless (In which case it will take only a fool to keep such a fellow).

This means that you'd have lost a resource person. And, depending on how specialized their role is, getting a suitable replace will cost you both in money and time.

Furthermore, if you've structured your business right, then you'd have to pay some money to the deceased's family even if it's NOT required by law in your country.

Can you imagine how motivated your other workers will be if they see the bumper package given to their colleague's dependents by your business? These all will cost money.

Taking out a term life policy on your employees and naming your business as beneficiary will do you a world of good if such arises.

2. What happens if your partner passes on? Would you allow your business to go under by being forced into a partnership with an heir who isn't apt for the business? Wouldn't it be a better deal if you bought over your partner's share of the business?

But where do you get the money for this? This won't be a problem if you took out a term life insurance policy for your partner with yourself as the named beneficiary.

Term life insurance gives you the most bang for your bucks. But more interestingly, you can pay even far less if you took the time to get and compare quotes from a wide range of insurers.

Here are great pages for life insurance quotes...

InsureMe Life Insurance Quotes

Life Insurance Quotes

Chimezirim Odimba writes on insurance.

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

Life Insurance Premium Financing
By James J. Robinson

Life insurance premium financing is used by wealthy individuals to pay their life insurance premiums. By financing your premiums, it allows you to free up the funds that might have otherwise been used to pay your premium. Many wealthy people require a substantial amount of life insurance for business planning, estate planning, or for income replacement.

In order to qualify for life insurance premium financing most insurance companies require you have a minimum of $2.5 million in net worth and at least a $200,000.00 a year income. In addition, you must be bankrupt remote entity, such as a Limited Liability Corporation, or an Irrevocable Life Insurance Trust.

In a normal premium financing arrangement, you would apply for a policy at the same time you apply for a loan. The loan is usually arranged by the insurance company you are working with although there are many different companies that handle only the financing and do not deal with the actual insurance policy. While you are being medically underwritten for the life insurance policy, your loan is being processed. Assuming you pass the medical exam and qualify for the loan, the policy and financing are put into place at the same time.

The benefits of a premium financing arrangement is that it frees up business and personal money to be used more efficiently in other investment arenas. In addition, life insurance premium financing may minimize gift taxes, and can provide a greater rate of return on the death benefit paid through regular non-financed methods.

Life insurance premium financing loans may be repaid either by paying a monthly payment while you are alive, pay from the policy itself, or at the time of your death, proceeds from the policy will pay off the loan.

Interest on the life insurance premium financing loan is considered to be personal interest, and therefore, not tax deductible.

If you are considering a premium financing loan for estate planning, there are some tax issues you may want to consider. The life insurance proceeds will be included in your estate if you own the policy. If the life insurance policy is owned by an irrevocable life insurance trust, estate taxes on the death benefits may be avoided.

Before you consider financing your life insurance premiums you should be aware that the life insurance policy will have to earn returns of between 150 to 300 basis points over the interest rate of the loan.

In addition, you should ask what the loan commitment fee is, as well as knowing whether the life insurance premium financing loan is renewable, how long the term of the loan is, and if the loan extends well beyond your life expectancy.

You may want to find out if the loan requires a personal guarantee, or if the loan is guaranteed by the life insurance policy.

Also, you want to know how if the program is designed on your IRS calculated life expectancy or is it conventional. If the loan is based on your life expectancy, and you live beyond that, the loan amount will exceed the cash value and the whole program will come apart.

Before entering into a financing agreement you may want to consult a trusted attorney, your financial advisor, and/or your Certified Public Accountant.

You will also want to shop around and compare insurance companies, their individual plans, the premium amounts, and the different types and amount of life insurance available to you.

Get started comparing life insurance quotes now!

Article Source: http://EzineArticles.com/?expert=James_J._Robinson

The Buy-Sell Agreement- Why It Is The Simple Solution
By Robert Cavanaugh Platinum Quality Author

If you own a business, odds are the business represents a sizable portion of your estate. Therefore, planning for the orderly disposition of the business is an important planning consideration.

The most basic element of the plan involves the use of a buy-sell agreement. It is astounding how many business owners do not have a buy-sell agreement. Even more amazing is the numbers who have one, but have no method to fund it. Let's take a look at the rationale behind a funded buy-sell agreement.

Creates a Market

Most businesses are closely held. A person can't call their stockbroker and buy shares in the business. Essentially, there is no market for the business.

If the business is a sole proprietorship or one-man or one-woman corporation, who is going to buy the business when the owner dies? In rare cases, a family member may be able to step in and successfully continue the business. Most of the time, the businesses simply closes its doors.

If the business owner is a partner or minority shareholder in a corporation, where is the financial motivation for the other owners to buy a minority interest? A buy-sell agreement among the person's partners, or one involving one or more key employees for the sole owner, creates a market for the business.

Avoids a New Partnership With the Heirs

In my experience, there is no quicker way to get a male business owner's attention with respect to business succession planning than to ask two questions.

"Do you and your partner have a buy-sell agreement?"

"No."

"If your partner died, would you like to be in business with his wife?"

Silence.

When a partner dies, and the dust settles, generally one of two things happens. The wife calls up her husband's partner and asks where her paycheck has been for the last month. The partner has to explain that her husband's salary was a result of his active participation in the business, not tied simply to the fact that he owned stock in the business.

The second possibility is the wife, who has no experience or participation in the business, takes over her husband's position.

A buy-sell agreement avoids both of these scenarios.

Sets the Price

Assuming buyers surface, what is the value of the deceased owner's interest? If the seller is the deceased owner's family, they want as much as they can get. The remaining partners want to pay as little as possible. Oftentimes, the dollar amount is far apart.

By setting a price that everyone is happy with while living, there is no haggling over price at death. In addition, this "pegs" the value of the business for estate tax purposes. In the absence of an agreement, the estate lists a value on the estate tax return, if one is required. The IRS often comes back with their valuation opinion: a much higher amount. What ensues is a back and forth argument, involving attorney's fees and stress. Some of these cases have dragged on for as much as ten years.

Converts an Illiquid Asset to Cash

A properly funded buy-sell agreement instantly converts bricks, mortar and steel into cash. This provides funds for the heirs to pay obligations and taxes. Cash can be invested to generate an income; cash is easily divided among heirs.

Funded With Life Insurance

Assuming that a buy-sell agreement has been drafted, the next question becomes, "Where will the funds come from for the obligation now mandated by the buy-sell agreement?" There are three typical choices.

1. Pay cash. This is only an academic choice. Most businesses don't have cash in these amounts laying around.

2. Buy out over time. If the business interest is worth $500,000, the arrangement is to pay, for example, $50,000 plus interest over 10 years. Negotiations could be tough. The family wants their money as quickly as possible; the remaining owners want to string it out for as long as possible.

This option is expensive. It requires the survivors to pay principal plus interest. The payments put a mortgage on future earnings and have to go through the tax wringer. The result is paying much more than a dollar for each dollar of business interest purchased.

3. Fund the agreement with life insurance. This is the "discounted dollar" method. Money is available immediately to fund the agreement, and the total premiums on the policy will come nowhere near the amount received.

If you own a business and do not have a buy-sell agreement in effect, call your life insurance agent, attorney and accountant. Set up a meeting, come up with a value, have an agreement drafted, and fund it with life insurance. You have probably spent a lifetime putting your business together. Now allocate a couple of hours toward keeping it together for your heirs and circumventing a myriad of problems.

Robert D. Cavanaugh, CLU is a 36-year financial and estate planning veteran and author of the free newsletter, "The Estate Preservation Advisor". For cutting-edge, easy-to-understand financial planning resources and techniques to increase your income, reduce taxes and preserve your estate and to claim the free video, "How to Sell Your Life Insurance Policy for More than the Cash Value", go to http://theestatepreservationadvisor.com/rd/subscribe.htm

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

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All About Business Protection Life Insurance

Thursday, December 24, 2009

Update Dec. 24 - 2009 All About "Business Life Insurance" Information By Insurance Experts

Friday, December 4, 2009

Update Dec. 04 - 2009 All About "Business Life Insurance" Information By Insurance Experts

Sunday, November 15, 2009

Nov. 15. - 2009 All About "Business Life Insurance" Information By Insurance Experts

Wednesday, October 28, 2009

Update Oct. 28 - 2009 All About "Business Life Insurance" Information By Insurance Experts

Friday, October 9, 2009

Update Oct. 09 - 2009 All About Business Life Insurance Information By Insurance Experts

Sunday, August 30, 2009

Update Augaust 30 2009 All About Business Life Insurance Information By Insurance Experts

Tuesday, August 11, 2009

Update Augaust 11 2009 All About Business Life Insurance Information By Insurance Experts

Sunday, August 2, 2009

All About Business Life Insurance Information By Insurance Experts

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