When Should You "Rent" Term Life Insurance?

About the Author:

Randy Taylor has Advised consumers on both term life insurance and permanent life insurance for over 30 years and has also advised stock brokers, financial planners, and  insurance agents on which companies & products to select for different client situations for an additional 10 years!
Published since 1998; quoted in Forbes.
California License # 0643596
Copyright 1/31/2014, All rights reserved
California residents only: Call for estimates at 916-601-5270

When Does Temporary Term Life Insurance Make Sense?

The answer is simple; when you have a temporary need for life insurance; 30 years or less.  One of the newer,more cost effective types of term life insurance are absolutely the best solution. Let's look at some examples of which types of insurance are best for temporary insurance needs:

Newlyweds or new couples that are on a limited budget.

If a couple has shared debts that would have to be paid off for the benefit of the survivor; then a simple
program with a rate guarantee as short as 10 years might make sense.. The strategy is to have enough life
insurance to replace the lost income of the main bread winner,or to insure both parties..The solution is to use the least expensive plan at the time that provides adequate coverage until they could afford a more permanent solution.
Most temporary term plans also provide an option to trade the policy to a  permanent one later; without having to re-qualify for the same good health rating. That means no new exam is neeeded for a permanent plan in the future.

Business owners in a new business or partnership

If a business is new and short on cash flow, a term policy designed to be kept for only 10 or 20 years works very well. The money that comes income tax free to the beneficiary can be used to pay off a creditor, to buy any remaining business interest from a partner's spouse; or can be used as collateral for an SBA loan in many cases. An experienced insurance broker and or attorney can  advise you on how to structure the beneficiary wording or buy-sell contract to make for the best use of the money.

Mortgage Life Insurance for Home Loans

There is a new  concept available that I like for those seeking coverage equal to a home loan debt where the loan obligation is for 30 years. If a client is 50 years old or younger; many companies offer a plan  that has  a  low premium guaranteed to stay level for 30 years. All premiums are refunded as per contract conditions if the  owner wants to cancel the insurance after 30 years and ask for a "return of all premiums paid".
If the buyer cannot afford a 30 year return of premium plan a straight 30,20,15, or 10 year plan with no premium return options are available at a lower initial premium.

Summary:

No one  insurance company or insurance plan is ideal for everyone; but for temporary needs it is best to get temporary insurance. Also seek rate estimates from an experienced broker than can recommend a solution for you based on both your health, ability to qualify, and your insurance needs. Often "renting" insurance rather than owning a permanent plan  is better.
The above article is meant for entertainment purposes only; and you should consult with your insurance broker and other financial advisors before purchasing any financial or insurance products.

Randy Taylor, Author
Copyright 1/31/2014 All rights reserved
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(916) 601-5270

Reverse Mortgages, A Problem or a Blessing?

About the author:

Randy Taylor was first licensed as a registered representive, and  insurance  agent  in  1983. He was first published in 1998. He has also spoken to financial advisor groups since 1995. California insurance Lic. # 0643596
Author: Randy Taylor Copyright 1/17/2014 , All rights reserved.

What is a Reverse Mortgage?

A reverse mortgage is a loan vehicle that unlocks or makes available part of the equity in a home to provide
seniors with cash flow to supplement their retirement.
Like any other financial decision you would need to consult with an  attorney, tax person, or financial consultant before making  any decisions.

How do they work?  When you qualify, the equity you have built up can be paid to you and then used for any purpose while the home owner gets to continue living in the home without the need  to make their monthly mortgage payments.

What are some of the Advantages?

The borrowers do not  have to repay  the loan until the borrower no longer uses the home as a primary residence; or until they do  not meet the obligations of the loan.

The loan can be used  to purchase a primary residence if you are financially able to pay the difference between  the loan and the home purchase price,closing costs etc.
  
The borrower does not have to qualify for the new loan based on income guidelines.

Unlike a line of credit; you do not have to make payments..Instead  the loan pays you.

You still own  the home and must live in it.

What are some of the requirements?

The key issue is you have to own  the home outright  or have a high  equity position.

You must be 62 years old or older

You are still liable for taxes and insurance on your own.

Are there downsides?

Of course there are.. The most obvious is that you are getting  a loan and there will  be costs involved.

Your remaining estate that would be passed on to your heirs will be reduced as you spend the equity.

 You should contact HUD at  1-(800) 569-4287 and also your financial consultants before making any decisions. A counselor will also help when  you apply with required  training. This article is meant to be offered for informational purposes only and not to be  interpreted as financial  advice of any kind.

Confused About Social Security Benefits or How to Apply?

Taking the Stress out of Applying for Social Security Benefits

Blog entry offered by:
Randy Taylor, copyright 1/10/2014; all rights reserved.
randytaylorfinancial.1@gmail.com

Key Things to Consider First:

You have to have attained an age of 61 years and 9 months or older to be eligible to apply.

If you are 62 years or older already; you might be able to start your benefits during the month you apply.

Your payments start one month after they are due.

The government does have excellent telephone support available at: (800) 772-1213

Need more information?  There is relief  in sight!

You can go to this online link for forms, calculators, and detailed information and then call when
you have specific questions.

Here is a helpful site: http://www.socialsecurity.gov/retire2/applying8.htm

Note: This blog entry is offered for information only and not meant to be financial advice.. Before deciding
when to begin your social security benefits; first talk to your financial advisor and/or tax consultant or attorney.

We are also available to help clients in the Northern California area that seek rate comparisons or information regarding safe retirement vehicles to supplement their retirement.

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Serving clients and brokers since 1983