All About Business Protection Life Insurance: All About Business Life Insurance Information By Insurance Experts

Business Life Insurance - Understanding the Statement of Retained Earnings and Cash Flow
By Kyle J Norton Platinum Quality Author

Beside understand what is business insurance and business life insurance are important that people own a business understand , 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. Understand operations of the company also equally important for a successful business. In this article ,we will try to discuss what is the statement of retain earning? and cash flow of the company.

Statement of retain earning is the accumulated of that portion of the shareholders equity derived from a profitable operation since the corporation stared it business.

I.There are two ways to express a Statement of Retained Earnings.

1. Retained earnings (end of year)= retained earnings (beginning of the year)+income for the year- dividends

2. Year end retained earnings= income (for the year)-dividends+ earnings retained (during the year)+ previous year balance

Total accumulated retained earnings does not normally reflect a cash position, but reflects the value of equipment, machinery or inventory and other assets. Instead of paying out all revenue each year as received in salaries or bonuses, a portion is retained to replace equipment and inventory and to finance expansion.

II.Cash Flow
Cash Flow is best expressed and understood in terms of inflow and outflow of cash.

1. Inflow

Inflow is the amount of cash that the company earned, such as additional sales, new investments and new borrowing.

2. Outflow

outflow is the cash that the company has expended in a period of time and it can be controlled by the timing of payments, replacing of equipment or postponing hiring and expansions.

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://businessinsurance18.blogspot.com/

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

Life Insurance - The Good, The Bad, & The Ugly
By Joseph Chappine

The Good.

If you have ever received a large check in the form of life insurance proceeds after a loved one has died, you understand the "beautiful sadness" that is felt.

When the check arrives it does not ease the pain of your loss. Rather, it adds to your fond memories of the loved one. This person cared enough about you and your family that he/she wanted to ease the financial impact which their loss of life would surely create.

A good example of this would be the woman with an infant child who purchased enough life insurance, not only to help pay the bills, but enough to make certain the child would be raised by the proper loved one. Perhaps, she wanted her mother or a sister to help raise the child, but that person could not afford the loss of income. Properly planning, she left enough money to reimburse the care giver's loss of income. This type of planning shows her devotion to the child.

The man who leaves an extra $20,000 to be set aside and used exclusively for the expenses of a wedding, will not only be reminding his little girl "I love you", but will also be saying, I'm still with you.

The Bad.

An improperly planned future is both bad and sad. One's entire financial situation should be analyzed and protected. A person buying a $1 million whole life insurance policy, rather than a disability or income protection policy and a term life insurance policy qualifies as bad.

Would it make much sense to purchase life insurance and have no health insurance? Would purchasing cancer insurance before disability be intelligent? These types of decisions are made every day by people who either do not think or do not know better.

The Ugly.

Doing absolutely nothing, or making financial decisions without receiving professional advice, results in the ugliest of situations. Far too many people take whatever insurance is offered by their employer and think they have enough. Show me an entity providing free benefits to all of their employees, while making certain that each individual is set for life financially and I'll show you a member of the United States Congress or Senate. (Sorry. I digress).

The insurance industry estimates that over 70% of the people in United States have never met with an insurance agent. This is beyond ugly. It's stupid!

After 33 years in the business, I still find occasion to request advice from an associate. The industry is constantly changing. For that reason, each state requires continuing education to make certain an insurance agent remains current on these changes. Why would the average person, without any insurance back ground, try to make these decisions alone? Please don't. Wouldn't you prefer your loved ones feel a "beautiful sadness" after your death. I would think it much better than sadness...and misery because the family cannot sustain the life style which it enjoyed previously!

Joseph Chappine. Licensed insurance agent since 1977.
Mr. Chappine has recently created a web site which has established a relationship with professional agents covering every county across the United States and Puerto Rico. Visit this site, http://www.termorwhole.com if you are looking for a local professional. If you would like to learn more about life insurance visit http://www.bestenrollments.com/life.htm

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

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

Back To Insurance Contents

Back To General Contents ( Home )

Back To The Top