Archive for January, 2011
Life Insurance 11 – What is the Minimum & Maximum Premiums in Universal Life Insurance
As we mentioned in previous articles, UL plans are unbundled, the various components of the plan such as insurance charges and earned interest can each be isolated and quantified. Consequently, they are much easier to understand and explain than traditional bundle permanent life insurance products.In this article, we will discuss the minimum and maximum premiums of the universal life policy.
Most companies place contractual restrictions on the minimum and maximum deposits they are prepared to accept in the early years of a UL plan. As an policy holder, you have the right to chose any amount of premium in the between of minimum and maximum premiums’ range. Generally the lower the minimum premium and the higher the maximum premium, the more flexible the UL plan is with respect to funding options.
1. Minimum premium
Many insurance companies allow only minimum premium paid as long as the premium is enough to cover the cost of insurance. Some companies apply the minimum premium restriction only for the first year of the policy. Others require that no less than the minimum premium must be paid in the first year and at least two times the minimum premium must be paid after two years. Yet others require that at least five times the minimum premium must be paid into the plan after five years. Of course, if the first year deposit is greater than five times the minimum premium, no future deposits would be contractually required.
Under universal life option, policy holder can make a large initial premium and do not need to any additional premium again as long as the investment funds in the policy are enough to cover the insurance cost. In Fact, a higher minimum deposit requirement forces the policyholder to put more money into the plan in the early years to build up a fund value within the plan. This is the obligation of insurance company to inform you when the additional premium is required, usually caused by depletion of investment fund in the policy.
2. Maximum premium
Maximum premiums are usually only a factor in the first policy year. In subsequent years, usually the only restriction is that the fund value or cash value of the plan be kept below the exempt line. Therefore, beyond the first year, maximum policy deposits vary with many factors such as credited rates, past deposits, etc. as long as they do not force the policy to become non-exempt.
In fact most companies link a taxable side fund to their UL contracts. They are, therefore, usually able to accept much larger deposits since any funds that are over the maximum are placed into this side fund where growth is taxed annually. When the accumulating fund drops below the exempt line, many of these plans automatically transfer dollars from the side fund to the policy fund, thereby maximizing the tax sheltering aspect of the plan in the process.
I hope this information will help. If you need more information, you can read the complete series of the above subject at my home page:
http://lifeanddisabitityinsuranceunderwriter.blogspot.com/
http://life-insurance12.blogspot.com
http://life-insurance13.blogspot.com
All rights reserved. Any reproducing of this article must have all the links intact.
Kyle J. Norton
What do you believe? what is your vision of heaven and hell?
James van praagh (Medium and Author) explains what he believes what is heaven and hell.
http://www.videojug.com/tag/james-van-praagh
He also explains his beliefs on if heaven and hell exists and on reincarnation and afterlife
http://www.videojug.com/interview/james-van-praagh-on-life-after-death-2
I Personally, am a spiritual person and agree in majority of what he says. The Bible describes Hell as fire and Brimstones but i believe it as a mere metaphor of the experience that the spirit may experience once we leave this world. I also believe in reincarnation…that explains experiences such as dejavu’s, soulmate connections, karmic connections and etc. Sorry…i feel that soo many religions out here has moved away from the spiritual realm in which the Divine (God) had once had us in. Those who dont agree. Criticize freely…but I and others will continue to believe what we believe just as you will continue to do the same.
sorry you have to copy and paste the link into your web browser box to view the pages.
I have 30 pages of my summary of a host of amazing sources – all "dead" guys…………
Life Lessons From Death
Life is good at teaching us lessons – keeping us on our toes when things get too easy.
Like many of you, I called my Mom in May to wish her a happy Mother’s Day. She told me she had a cold that just wouldn’t go away. She had finally been to the doctor about it, and he ran some tests. Four days later we found out she had liver cancer. My mother died in two weeks.
I still can’t really believe she’s gone – it happened so quickly. But that’s the way life is sometimes, and sometimes it takes a great shock to drive some lessons home. Think about your own life as I share some of the lessons I’m trying to learn with you.
Don’t wait to live. My Mom was the hardest working person I have ever known. She put in at least 50 hours a week and on top of that worked every Saturday and some Sundays. She was an accountant and a perfectionist. Every month the work started over. There was always more work. Her boss was a great guy – he used to encourage her not to work so hard, but my Mom was type-A, wanted to do her best. Sound familiar?
She was 65 when she died. Forget about that big retirement in the sky – all the traveling she would do, all the free time to finally rest after years of working herself to exhaustion. You have got to live today – take the trip this year – stop and enjoy your life right now – because you do not have forever.
Know what brings you joy. My Mom knew how to work hard and how to sacrifice her own needs for others. She always put herself second. I truly don’t think she knew how to find joy – I think she thought joy was somehow selfish. It was like she held herself too tightly. Do you know what brings you joy?
Maybe it IS doing things for others, but it has to be with no expectation of receiving anything in return, just for the sheer joy of giving. When you have expectations, you’ve attached strings to your gifts. And your joy depends on the recipient’s response. What brings me joy changes with each new adventure I have. FireStar brings me great joy. Nature brings me joy. My wonderful friends bring me joy. Sprinkles on my yogurt bring me joy! What brings you joy? Do you bask in it? Throw your head back and laugh, throw your arms out and embrace life – it will be over all too soon.
Let people get close to you. My Mom was tremendously independent and self-reliant. She didn’t want to burden anyone. At her funeral many of her friends told us how they tried to do things for her – drive her to doctor’s appointments, etc. and she would never let them. This took away a chance for them to get closer to her, and they were so sad they didn’t get to do more. Her passing made me realize I can be very much like her and keep people at a distance. I need to work hard on changing this.
Are there things you see in your parents that you are also doing? We tend to repeat their patterns without even thinking about it. It’s not too late to change – but do it now. You won’t be around at your funeral to see all those people grieving the lost chance to be close to you.
You can’t make someone love you. My parents divorced when I was in my teens. I can still remember all the hundreds of ways my Mother tried to hang on to my Father. It was an impossible task – one all of us have attempted at some point in our lives. We feel that if we just give more, become better, work harder – that special person will love us. Unfortunately, it just doesn’t work that way. You simply cannot make another person love you, be faithful to you, or stay married to you. All you can do is your best and if they don’t choose you, you have to let them go. You have to choose yourself and make your own life as big and as wonderful as it can be. Twenty years after the divorce, my Mom was still bitter. I would have given anything to have her let that pain go. It stole her joy.
Are you letting someone from your past cause you pain? If they don’t want to be with you – let them go! You deserve someone who wants to be with you for who you are – not because of pity or guilt or because you sacrificed yourself to make them happy. The past is over – take back your power and your joy and live in the present. Take good care of your health – now. Americans work more hours than any other nation – we’ve now surpassed the Japanese. We are taking fewer vacations and we’re constantly checking voice mail and e-mail. We never stop. My Mom literally worked herself to death – never taking a sick day, pushing herself to the limit for over 40 years. No one can take that over the long haul. Professional athletes have an off season; they know their bodies need time to recover. For most of us, the off season never comes – the constant stress is a way of life.
You have got to change this for yourself NOW. Take your vacations and totally disengage from the office. The company will not collapse without you. And you’ll be more productive when you return. You also need to build regular exercise into your schedule. Too busy? Or too lazy? 20 minutes of walking everyday can make a huge difference in the quality of your life. Your health is the basis for everything – are you putting it last?
I’ve learned a lot of other lessons from my Mom’s death and from her life. Sometimes we only learn lessons through pain. Is there some pain in your life right now you can learn from? If you can find the lessons, it helps ease your suffering. Thanks for taking the time to review these lessons with me.
Denise Ryan
Is there anyway u can use your zodiac houses to determine your past life?
I believe in past lives if u don’t I don’t need to hear about it!!
I would really like to know what my sign was in my past life!
Cuz I swear to God if i found out I was a pieces in my past life I know who i was, cuz there’s this person who always interested me and dies 9 months before i was born
I’m not into that since I couldn’t evident in any way, however what;s connected to the past life would be South node and north node of the Moon. They represent karma or what’s considered as karma.
Even if i’m an astrologer, I can’t really tell you more than this since S,N.nodes aren’t my tendecy for research ;]
Regards.
The Safety of the Commercial Mortgage is not That Time
Forget everything you thought you of the advantages of a variable-rate mortgage to take instead of closing in for the long term was aware.
A new study suggests the safety of one five-year Commercial mortgage Quote little or nothing beyond a more riskier variable-rate mortgage, provided that you have a jumbo-ranked discount rate gets.
“His interest costs on mortgages closed for close to five years, and often lower than that of variable-rate mortgages since late 1996,” the higher of Canada Mortgage and Ali Manouchehri economist of the Housing Corp.. Writing in the study.
The house owners have variable-rate mortgages enord in the past few years in the popular belief that you can save on interest costs by your mortgage rate to the first lenende rate of your lender to pens. Since the first increases, or as is generally in the past few years, cases happened, if your mortgage rate.
The prime rate by the major banks is now 4.5 per cent, while the posted rate of five years in the big banks is 6.15 per cent. In only one year, the variable-rate option saves you about $ 1,700 monthly payments to a $ 150,000 Commercial mortgage repaid over 25 years (a level prime rate assume).
Historically, you would also have spared. The CMHC study shows that the mortgages of five years from 1993 through 1998 will be taken anywhere from $ 50,000 to $ 5,000 in extra interest that would have cost about the term of the loan is paid (the example is based on a $ 100,000 mortgage repaid over 25 years).
The lack of this analysis is that it is not real-world Commercial mortgage price points. These days, very few people remove from a mortgage without a substantial discount from the posted rates at major banks.
For that reason, decided M. Manouchehri of CMHC mortgages for five years for variable-rate mortgages to compare. Incidentally, five-year term by far the most popular for fixed-rate mortgages around 59 per cent of the total.
The size of the rebates M. Manouchehri applied was based on the difference between posted major bank rates and the best contracts available from other donors.
For the five-year mortgages, he used a discount of 1.25 of a percentage point; for variable-rate mortgages was 0.4 of a point of first.
For mortgages of five years between 1993 and mid-1996 are taken, was the five-year mortgages more expensive in terms of interest. Since then, however, are variable-rate Commercial mortgage Rates have generally been a little bit expensive.
Clearly, there is nothing in this study that the fixed-rate compared with variable-rate debate once and for all decided.
In fact, the study CMHC only confuse everyone who recalls that at some research for Manu Life Financial back in 2000 by the finances of York University Professor Moshe Milevsky is made. His research found that the additional interest on a Commercial mortgage is loaded five-year average cost $ 20,000 between 1950 and 2000 for a $ 100,000 mortgage repaid over 15 years would have.
Some of the variable-rate towards five-year cross into question, go back to the CMHC study.
It shows that the Commercial mortgages for five years, or else, especially poor choices for a period of three years starting in mid-1993 were. The rates were high than for a tijdjerug, but they were later.
You were a spectator to these tariff reductions if you have a mortgage of five years was pasted, while people in variable-rate mortgages would have benefited almost immediately.
It is now a different world, nonetheless. The five-year mortgage rates are low, close to a 50-year, which suggests they will be much earlier to have their term: Take than to fall.
So what is here, variable-rate or five-year fixed rate the best choice? The people who are rock-bottom mortgage rates like as long as possible will probably still pay a variable-rate mortgage want. Remind me, you can type in a fixed-term Commercial mortgage Quote without penalty in most cases.
The case for the term of five years sees almost looks strong, nonetheless. First, the study tells us CMHC no significant costs to the conclusion within five years of your mortgage, and you even a little over a variable-rate mortgage could save.
Secondly, the likelihood of higher rates in the coming years suggest that this is a good time intends to close.
If you have a variable-rate Commercial mortgage lenders to 4 per cent is foreseen, would bloom by 0.85 of a percentage point should be given to the current tariff of five years to match. Not a lot of land within the wingspan of 12-18-month deal when the economy is doing well.
Challenged Baar, the variable-rate fixed-rate against any debate on the risks and rewards. At this moment, offers the option of five years is far less risk, and almost as much to pay.
Pro Bargain Hunter
