Need to Save Some Money on Your Insurance? Here Are Some Tips

By Paul R Tetu

With the economy still struggling to restore its former prominence, saving money wherever possible is one of the major priorities of Americans everywhere. Insurance is a necessary expense, but can also be very expensive. We've compiled tips from some of the insurance industry's more savvy experts to help you get as much of the cost of that pricy policy back into your pocket: where you need it most.
Sometimes it can be hard to discern between what coverages you need and which you can live (happily) without. If you drive a car with a lower market value (you can find out how much your car is worth from Kelley Blue Book), consider skipping collision and comprehensive coverage on your policy. Often times these coverages aren't worth the cost because your car's repairs may not even exceed your deductible amount (the amount you must pay before your insurance will cover the rest).
Speaking of deductibles, if you raise your deductible to a high amount -- something like $500 or $1000, you could save as much as 15-40% or more. Stay-at-home parents and experienced, careful, drivers who only travel locally may want to consider this. For local drivers, try to organize a carpool with co-workers and friends; so-called "low-mileage" discounts are common for the insured driver who drives less than the average American (usually about 10,000 miles annually). Beware of a high deductible on your newly-driving teenager's policy in the case that they get into an accident, as you could end up paying a lot more.
While I'm talking about teen drivers, remember to include your new driver on the family policy and not one alone by themselves. Teenagers with their own policies pay a significantly higher amount. Additionally, if your child has good grades or passed an acceptable driver's education class, you can also save some more money with most insurance providers.
Consider only purchasing the minimum personal injury protection required by California if your health, life, and disability coverage is strong enough. Overlapping medical coverage can cost a lot more than one may realize.
When purchasing a vehicle new-to-you, try to get as many safety features as possible. Everyone knows about anti-theft systems and air bags, but daytime running lights, anti-lock brakes, and electronic stability control (ESC, or traction control) systems also reduce the cost. A more subtle car will also get you some brownie points with your provider. The safer, less expensive to repair (and less expensive, in general), less-stolen cars will always be cheaper to insure than that convertible Ferrari you've been wanting. To find out how much of a risk your car or potential new ride might be, surf the web over to the Insurance Institute for Highway Safety.
Keep all your recreational vehicles, cars, trucks, and trailers on the same policy. To save even more, switch your homeowners, life, or even commercial (business) insurance to the same insurance provider.
Also pay attention to the condition of your vehicle. Cars that have been in previous accidents or with worn-out components may end up costing you a lot more than you realize. Make sure to keep up-to-date with your regular vehicle inspections and check-ups as a faulty or broken component could cause an accident, costing you a lot more than the price of fixing or replacing bad parts.
Drivers older than 50 to 55 or so (or retired drivers) may also be eligible for a discount. Safe-driver discounts are available to those who drive without incident (accidents or moving violations) for three years or more. Insurance policy-holders who stay with the same company for a significant amount of time usually also save money on their policy with their providers.

If you think your insurance provider may not be giving you the discounts you deserve, if you'd like to painlessly compare your price to other insurance companies, or if they don't offer these discounts at all, feel free to check out our low-cost providers immediately by giving us a call or filling out our online quote form!
It's never too early or too late to save on your insurance when you work with Insurance Box, California's quickest and most affordable insurance broker!
See what some of our customers have said about us on Yelp or visit our Facebook (Insurance Box) and Twitter @theinsurancebox.
Paul Tetu - Insurance Box Blogger via Los Angeles
Paul Tetu works at Insurance Box and is a freelance writer and artist. Contact him @EverSports or prtetu@gmail.com.

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American Family Insurance

By Aya Sioco 

American Family Insurance is providing services as a private mutual insurance company for over eighty-years. It is the company's sincere commitment to give their customers peace of mind and make insurance experience simple and convenient. In recognition of their remarkable products and services, they were presented with numerous citations and established milestones as an outstanding company throughout the years. Their latest recognition in 2010 was a leadership award given by the National Safety Council for its Teen Driving Safety Leadership program. Being a mutual company, where customers are also owners; every client served created a unique relationship that makes the company strong and stable. They never measured their success with the income they have generated, but with the value that they provide to the policyholders.
The American Family Insurance commenced their insurance operation in 1927 with a mutual automobile insurance for farmers in Wisconsin. They believe that farmers represent lower risk because they do not drive often. With the same strategy, their insurance business grew over the years and expanded their operations from rural areas to suburbs, towns as well as in the metropolitan areas. They address the changing needs of their customers by expanding the coverage of their products and services. As they become American Family Mutual Insurance Co. in 1963, they started offering auto, health, life, home, business, annuities, and farm insurance. Together with the expansion of their products, they also widened their business territories toward nineteen additional states from Washington to Ohio.
The asset of American Family Insurance is the trusted advice provided to every potential and existing policyholder. The outstanding services provided to customers are easily accessible online, by phone, or by the available agent in the locality. Whether the customer is inquiring for a new coverage, filing a claim, or buying a policy; a dependable agent is available at all time to attend to every needs. The company provides options to change the assigned agents in order to accommodate some occasional customer's transfer of address. This is done by coordinating with the company's customer service representative.
The agents of American Family Insurance exclusively distribute their products and services. These agents are knowledgeable of every product offered and are capable of identifying the best coverage that suits every need. They are consistent in providing outstanding customer experience through the support of distinguished insurance agency. In addition, the American Family has effective service records of every community they are serving in order to extend support to policyholders easily and conveniently. It is backed with twenty-four-hour customer care that is just a phone call away.
The continuous support given to every customer throughout the years is attributed to the financial stability of the company. Since it is owned by the customers, the focus of the company is towards the long-term results. The profits are utilized in maintaining strong and consistent financial position. This allows protection of policyholders from losses, delivery of products and provision for immediate valuable service. The financial stability of American Family Insurance will guarantee to meet the customers needs today and for the coming years.

Click here to learn more about WPS insurance or NYS workers compensation.

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Undergoing Medical Tests Can Garner Cheap Life Term Insurance

By David S Livingston 

To protect the family from future financial liabilities in case of your untimely demise, go for life term insurance that can be taken for a short term and then extended if needed. For those who want to combine death benefits and savings plan, opt for universal or whole life insurance. There are many pros and cons of both options and if you do not mind the extra cost, you can opt for whole life insurance. Some experts contend that it is better to take life term insurance and invest your extra funds in investments that will offer better benefits.
It is important to make an intelligent assessment of the future financial needs of your family so that you can select the best insurance policy. There are different online life insurance quote websites where you can request a free quote, calculate costs and then make an informed decision. These quotes come with a free insurance calculator where you need to input figures like - current salary level, expenses, coverage required and period of coverage. The calculator will instantly give you figures of how much you need to pay.
Buying life insurance can take some time for almost all insurance companies require a person to undergo medical tests. You need to go for these tests, wait for the results and then submit them to the insurance company. Here, the concerned authorities will go through the medical results and if they deem you fit for insurance, they will offer you one at a specific rate. The rate can vary depending on the result of the medical tests, age of the applicant etc. Now, this will take a few weeks and those who want instant life insurance can get impatient with this delay.
Anyone who is a smoker or has a pre-existing health condition can attract higher insurance rates. For various reasons, some people opt for no medical exam term life insurance that can help them avoid the doctor's clinic altogether. However, not all insurance companies offer this type of policy for it in essence offers coverage to someone who is at high risk of dying early due to his health or lifestyle choices. Hence, the rates of no medical exam term life insurance are extremely high and unless absolutely necessary, a person must not opt for this scheme. Even if you plan on doing so, investigate the company and the policy thoroughly so that you are not cheated.
Undergoing proper medical tests is the best option, for then you can avail affordable life insurance and at the same time make sure you are healthy and will live long. Here are some details that will be expected when you undergo a medical test to get life term insurance:
• Your medical history
• Family medical history
• Details of your family physician
• Lifestyle habits like drinking, smoking, drug use
• Quantity of life insurance you want.
Here are some procedures you will have to undergo for your medical test:
• Height: weight ratio
• Blood pressure
• Pulse rate
• Blood work
• Urine analysis
These tests will determine if a person is overweight or has high cholesterol or high blood pressure. Very often, even if you initially fail the medical test, the insurance company's doctor can give you medication to lower cholesterol and blood pressure. They can advise you to follow a diet and do some exercise to lose weight and to stop smoking, drinking and taking drugs.
You can be called back after 6 months and new tests done and if these are favorable, you can get affordable life term insurance. Of course, those with critical illness can opt for a critical illness add-on policy that can give them coverage. Insurance companies will try and offer insurance coverage to most people without turning them away since that could mean a loss of customers. However, people must also be truthful when answering their application.
For example, if you lie in your application and state that you are a non-smoker, you will probably be offered affordable life term insurance. However, in the next few years, if you die of a smoke related illness, the insurance company will find out in their investigation that you were a smoker. This can result in them canceling the policy and not giving any benefit to your beneficiaries or giving them a much reduced amount. So, be honest, change your lifestyle to a healthier one, and get affordable life term insurance.

Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on insurance life term and cheap life insurance, visit his site today.

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Life Insurance Rates Are Now at All Time Lows - A Great Time to Buy Term Coverage

By Larry W Freudenberg 

For most consumers, level term life insurance has been the best way to buy the most coverage for the least amount of money. If the objective is to buy a life insurance plan to provide protection in case the policy purchaser/insured dies and they want the most consumer friendly type of insurance, then look no further than level term life insurance. You get the biggest bang for your buck. All top consumer advocates recommend level term life insurance.
Usually I can tell a client doesn't understand why they really need life insurance and how much life insurance they need, I get questions like, "I expect to live to 95 or 100 and the term plan will cease in 30 years when I'm 70." You have to breakdown the purpose first. Are you buying it to protect yourself? Obviously no because if the policy pays the death benefit, you'll be dead. You're buying it to protect your beneficiary. If your beneficiary is a billionaire, then they may not need a $250,000 life insurance policy to pay them that sum if you died. But if your beneficiary is your spouse who will be in a really bad financial situation if you die then that's a good start. Lets say your spouse is not the breadwinner of the household and as hard as they tried, they couldn't make up the loss of income if you died. And on top of that lets say that you have 4 children - ages 3, 10, 12 and 16.
Nobody plans on dying and I haven't met a client in the past 30 years that said they expect to die. Lets toss out the idea that you're invincible. If you were invincible then you wouldn't need any insurance but that's not the real world because stuff happens even if we don't expect it. To care for this spouse with the four children, you would need to provide a large sum of money so it can be invested to provide monthly income and also provide college funds so the four kids can go to college. The ideal way to calculate this is to do a detailed budget on what would be needed and then solve for the present value at assumed rates of return and monthly withdrawals. A simple rule of thumb is to buy 10 times the insured's annual income. So if you make $100,000 a year then a $1 million policy would be a good starting point.
But you're saying, a million dollar policy is too much. My wife and kids wouldn't need that kind of money if I died. And you're completely wrong. If your spouse invested a million dollars in a conservative, the return may be 3%. 3% of a million is only $30,000. They could draw from the principal but that will only deplete the funds quicker and may not provide needed funds down the road to pay for the kid's college expenses.
But a $1,000,000 life insurance plan is expensive. And you would be wrong again. If you bought a permanent, whole life or universal life insurance plan, it would be extremely expensive. But if you bought a 20 or 30 year level term plan, the premiums would be surprisingly small and affordable.
But what happens after the 20 or 30 years and my insurance runs out. That's not a problem because in that time, your kids will all be grown and the only need for life insurance may be to provide some residual income to your spouse. And during that time if you were successful at investing and saving for retirement, you should be in a much better financial situation than you were in when you were younger with a family of four kids.
What's the easiest way to start? Call a licensed life insurance agent and ask for level term life insurance.

Larry Freudenberg has built a successful insurance business. After several years as a commercial banker for a major Atlanta financial institution, Freudenberg purchased Triest Insurance Agency in Charleston. http://www.triestagency.com

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Best States to Retire

By Steven Hart 

One of the best ways to improve your lifestyle and make your money go farther when you retire is to move to another state. Obviously many factors including the recreational activities you enjoy, proximity to family and the kind of climate you like will influence your choice. Some of the states that are friendliest to retirees include:
Florida
In addition to warm weather the Sunshine State offers no income tax and some legal benefits not found elsewhere. Most retirement assets including IRAs, 401ks and annuities are safe from debt collection efforts and lawsuits in Florida. This means retirement income cannot be garnished there. To get this protection a person will need to be a legal resident of Florida and keep the retirement assets in a bank there. Other advantages that Florida has to offer is a low cost of living for the East Coast and lower property costs in areas outside of big cities like Miami and Orlando.
Nevada
Nevada offers retirees a warmer climate, although it does get cold there in the winter, no state income tax and a fairly low cost of living. Many costs including real estate, housing, gasoline and groceries are fairly low in Nevada. There is a fairly high sales tax in the state to which there are no exemptions including groceries. Another advantage to Nevada is that the gaming industry in the state offers many low and no cost recreation options for retirees. There are lots of non-gambling recreation options available as well including many golf courses. It should be noted that many people will not like the atmosphere in Nevada.
Texas
The Lone Star State offers retirees a warmer climate, a fairly cost of living and no income tax. It also offers a wide choice of places to live in, including college towns like Austin, big cities like Dallas and Houston, beach communities such as Galveston, suburbs, small towns and retirement communities. One advantage to Texas is that many recreation options including beaches, lakes, hunting, fishing, golf and shopping are in easy driving distance of pleasant small towns. Some parts of Texas do have very high property taxes and property values. Many people also find Texas too hot in the summer, so air conditioning costs can be high there.
Michigan
Michigan not only offers lots of wonderful recreational activities on the
Great Lakes it has some of the best tax benefits for retirees. A retired person can deduct up to $45,120 in pension income from Michigan state income taxes. A retired couple can deduct up to $90,240 in pension income from state income tax. In addition to that, Michigan residents can deduct all of their Social Security from state income taxes. Even with all the deductions Michigan has one low state income tax rate of 4.35% and generous property tax deductions for retirees. Another advantage to Michigan is that real estate there is very cheap so housing costs are also low. Persons who move to Michigan will face higher winter heating costs.
Other Retirement States
There are some other states that offer benefits for retirees. South Dakota offers a low cost of living and no income taxes. New Hampshire is in easy driving distance of New York and Boston yet it has no income tax or sales tax. North Carolina offers retired residents generous tax deductions, beaches and some areas with beautiful scenery and low housing costs. The best way to find the best state for you to retire in is to do lots of research and spend a lot of time in the state before you make the move.

Steven Hart is a freelance writer and a Financial Advisor from Cary, IL. He writes about finance topics like annuities, insurance, investment, and retirement.

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Get Life Insurance Cover To Protect Your Family!

By Iain S Wright 

The vast majority of people who purchase life insurance cover do so to ensure that their family will remain financially secure even after they are deceased. Income replacement is usually the main reason why a lot of people buy life insurance. There are a lot of different types of life policies, depending on one's objectives and there are also very huge price differences among various companies that offer similar cover. Policies are of course available from hundreds of life insurance companies throughout the UK.
Every family will most certainly need a financial plan which will include personal insurance cover so as to cope in the event of disability, accident, illness or even death. When planning insurance cover, one will need to put some factors into consideration such as number of dependents, their economic situation and of course their age. The numerous insurance plans can be pretty confusing and deciding on the one that is best for your family will actually depend on a number of things. For example, life insurance cover is very important if one has a spouse or dependent offspring but it is obviously less important for individuals who do not have any dependents.
Everybody should have a life insurance policy that includes critical illness cover - also known as "Trauma Insurance Policy" as everyone should be covered if they are unable to work. With a trauma insurance policy, if or when an individual is diagnosed as critically ill, this cover would assist with the financial situation of that person and his or her family as a whole. The trauma policies include rather sudden and serious conditions such as Heart attack, Kidney failure, Stroke, Malignant cancer and Organ transplant.
You also need to know that life insurance with critical illness in a lot of cases does not cover accident circumstances. The major advantage of this kind of insurance is that it offers the individual a chance to recover from their condition by offering financial assistance which is the major requirement for them to recover.
The easiest and most affordable life insurance that one can purchase is Term life insurance, it offers death benefit protection with no investment, savings, or even cash value components for the duration or term of the coverage period. Term insurance is only available for set amount of time such as 5, 10, 15, 25 or even 30 years. With the "Annual Renewable Term Insurance" one's policy will be automatically renewed every year and the premiums will increase as you grow older. If you want your premium to stay the same throughout the duration of the policy, you should choose "Level Term Insurance" instead.

Log on to http://www.lifeinsurance-uk.org.uk to get more information on the benefits of getting life insurance cover in the UK.

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Second to Die Life Insurance

By Darrick Sherwin 

Second to die life insurance is a type of coverage that insures two people, usually married couples. It offers benefits to their heirs once the last surviving spouse dies. It is different from regular plans since the widow or widower won't receive benefits after the death of their spouse. Its purpose is for estate planning, especially for those who own expensive assets.
For instance, the husband dies first. The husband's estate will be passed to his wife. There wouldn't be any estate taxes since she is the spouse. However, once the surviving spouse dies, her children would have to pay taxes on her estate. It could be as high as 48%. It may even be worth more if she skips a generation and has her grandchildren as heirs. Parents would often leave estate that's not liquid. A big portion of it may be in a real estate or in a business enterprise. This leaves beneficiaries without cash to pay for the estate tax, which may force them to sell some or all of their assets. That's when second to die life insurance becomes useful. It eliminates or minimizes the burden of having heirs to pay estate taxes. It also protects the children and the family business, provides inheritance, and establishes a legacy.
There are plenty of perks when one chooses to buy this plan. It is quite cost-effective since to buy a joint policy is much cheaper than to purchase two separate ones. Another reason why it's cheaper is insurers will only have to pay one benefit after the last policyholder dies. The underwriting wouldn't be as strict. Underwriting is the process that insurers use to assess a customer's eligibility to receive their services. The insurers won't have to worry if either of the married couple is not of good health since they will only have to pay following the death of both policyholders. It also assures that the estate inherited remains intact. The protection it covers is for a lifetime, even after age 100 in many cases. It also provides two married people relief from worries about who will die first.
Second to die life insurance may also have a few drawbacks. In the event of a divorce, it may cause complications. The policy may become dissolvable or expensive. It may also be affected by changes in estate tax law. It is important to research how these changes have impact. There won't be benefits paid once the first spouse dies. Since its prime purpose is estate planning, it wouldn't be advisable for people who expect typical benefits that most policies offer.
If one plans to buy a second to die life policy, they need to make sure that they understand completely the ins and outs of it. Don't be satisfied after hearing from one agent. To ensure a complete estate plan, it's recommended to involve the services of a certified financial planner, an estate attorney and possibly the family accountant. It is also important to consider the possibility of divorce, changes in estate tax laws, or changes in company policies.

Are you looking for more information regarding Second to die life insurance? Visit http://www.termlifeinsurance.com/ today!

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First to Die Life Insurance

By Darrick Sherwin 

First to die life insurance covers more than one person under one premium. Although this kind of policy can cover an unlimited number of lives, insurers typically limit the number of people that can be covered. The benefit is paid after the first death of any person under that plan. After which, the coverage would cease unless there is a guaranteed insurability rider availed with this plan. Guaranteed insurability rider allows a policyholder to buy additional coverage in the future without having to provide evidence of insurability.
This type of life insurance may be a good option for a married couple who have children, and business groups. It's more beneficial if a working husband and wife use it. This can help grant a benefit to replace the loss of income from the death of the first spouse. It may also facilitate in paying for a goal that relies on the availability of both incomes, such as mortgage repayment or expenses for a child's college education.
Businesses utilize first to die plan for buy-sell agreement funding or key person protection. In buy-sell agreement funding, there is a guarantee of availability of funds for buyout, without much consideration of which party dies first. Riders may be used to allow continuity of coverage for the surviving business owners. With key person protection, it covers a selected group of key employees. In any case there is a loss of any one employee, the company can receive a benefit that will be used to find, recruit and train a replacement.
The prime benefit of the first to die plan is its cost. Only one policy and one premium are paid. The premium may also be lower than two separate policies. This implies that there can be just as much, or more, total death benefits received compared to a person who decides to buy two different plans.
There are also shortcomings with first to die policies. It's not appropriate to use this if it's for estate planning purposes. Although it may be less costly compared to two separate policies, it is also likely for its cost to be just as much as two plans, depending on an individual's area of residence. This is due to the limited market available. There may not be sufficient competition that would bring down the value of premiums. It is also possible that this type of plan is not available to sale.
Before deciding to buy first to die life insurance plan, it is important to establish what one's needs and overall financial goals are. These can be based on many factors that include existing income and household income, age, marital status, long-term monetary objectives, number of dependents, amount of noteworthy debt, as well as additional property. Before insurers can issue the policy, an application form must be completed. It is important to name the beneficiary or the individual that will receive the benefit following the death of the policyholder. Once the policy is availed, be reminded to keep the cost of premiums at its lowest. One's health must be kept at its optimum since deterioration of it signifies higher premiums, and in worse cases, rendering one uninsurable. There may be policy changes over time. Thus, policyholders must review on a regular basis the handling of their life insurance. It is advisable to do it every 3 years or during major life events such as marriage, divorce, acquisition of a new house, or having another child in the family.

Are you looking for more information regarding first to die life insurance? Visit http://www.termlifeinsurance.com/ today!

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Tips to Buy Life Insurance

By Martin Swan 

There is no argument with the necessity of the insurance for our safety. A single person can ignore the necessity of life insurance. However, if you are married there is no way to ignore the importance of this insurance policy. In your absence, this security will support your family from any kind of economic crisis. Having a life insurance enables you to contribute for your family even after your death. Now the question may arise "how to purchase a life insurance?"
You must acquire such a policy, which will give your family maximum benefit. Therefore, you have to consider some important facts before buying your insurance.
Type of policy
There are two basic types of policy, term life policy and entire life policy. These two policies have some different features and coverage. Term life insurance policy will give you better coverage than the other insurance policy. If your aim is to cover a limited period, you must obtain term life insurance. Terms and conditions of this policy are easier and premiums are less than any other insurance. Moreover, you can renew your insurance after a certain period. If you are young and energetic, buy term life insurance as it will be more beneficial than any other policies. Many people dislike the entire life insurance policy because of its high premium and less flexibility.
Coverage
You must make a list of all of your assets and liabilities before going for an insurance policy. This will enable you to choose a right policy for your future generation. If your service provider fails to keep up the standard of living of your family after your death, then, your insurance will come in no use.
Medical exam
You can buy your insurance by giving the medical fitness test as well as by not giving medical tests. If you want to buy your insurance without medical test, then you must write an application to the insurance authority with an appropriate cause. However, medical exam will be necessary if you are suffering from chronic diseases.
Make a comparison
To get a cheap insurance with good coverage, you must compare the services of different insurance companies. The internet can reduce your work to a large extent. With a click of a mouse, you will get all the required information without going anywhere. If you want to buy your insurance on-site, you have to talk to an insurance agent. The internet is a much safer way as the aim of every insurance agent is to make a profit.
Reputed company
As your insurance will run for a longer period, it is necessary to choose a safe company. If your insurance company is not authorized, it may disappear any time. As term insurance is a safer choice, you must try to buy term life insurance from a reputed company.

We provide the best info about how to buy life insurance and buy term life insurance. For further details please visit the provided links.

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Charitable Insurance

An excellent tax strategy for your estate.
Is it one of your desires to create a charitable gift through regular accumulation, and have that gift donated at death?
Many people are unaware that:
• They can obtain a tax deduction today for certain gifts to be donated later at death.
• Insurance can create a much larger gift than assets saved in non-registered accounts.
An Insurance policy can be purchased with the intention of having the proceeds paid to a charity. If this is done through a Will, then 100% of the donation is deductible in the final tax return, is not creditor proof and is subject to probate fees. If the charity is named as beneficiary and the policy is assigned to the charity when it is issued then each premium paid is treated as a donation and is eligible for a tax credit. The proceeds are creditor proof and not subject to probate fees. Any form of life insurance qualifies, but Universal Life makes sense for individuals with excess assets to prepay premiums.
Canadians may donate up to a maximum of 75% of taxable income in any one year to qualify for charitable donation tax credits. Over payments may be carried forward for up to 5 years. The 1996 federal budget increased the limit on charitable donations to 100% of an individual's net income in the year of death and in the immediately preceding taxation year. The 75% limit remains in effect for other years except where appreciated capital property is gifted. In this case, the donation limit equals 100% of the net income that arises as a consequence of the gift.
POLICY OWNERSHIP AND BENEFICIARY CONSIDERATIONS
There are a number of options available and each has a valid use depending on the objectives of the donor. To get the annual tax credits for the premiums establish the charity as the owner and beneficiary of the policy. The donor, who is the life insured, then gifts a sum equal to the annual premiums to the charity (mindful of the 75% of taxable income rule) who then pays the premiums to the insurer.
A common variation of this method is to set up the policy on the donor's life with his/her ownership (or use an existing policy) and then make an absolute assignment of the policy to the charity. The donor then continues to pay premiums to the insurer and receives a tax receipt from the charity once proof of payment of the premium has been furnished to the charity. At the date of assignment, the liquid value of the policy, plus the premium for that year will be eligible for treatment as a charitable donation.
For maximum flexibility, the policy can be owned by the donor and the charity named as beneficiary. An advantage is that the donor retains complete control of the policy and can change his/her mind; cash it in, etc. A disadvantage is that premiums are ineligible for tax credit.
A variation on this theme is to have the estate as beneficiary and the Will direct executors to pay policy proceeds to one or more charities. In such cases, where the proceeds flow through the estate, a tax credit will be allowed (up to 100% of income) for the year of, and the year preceding, the donor's death.

Gary Caspersz's experiences offer a unique financial awareness,education and insight between the traditional failing notion of making, earning or saving money versus creating predictable cash flow within the #1 structure used by the mega-wealthy called The Family Office. He can be reached at gary@etaxplan.ca or 416-347-2354
Gary
http://www.eConventus.com

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Key Person Life Insurance

By Darrick Sherwin 

Key person life insurance is a contract that offers financial protection or reimbursement from losses on an owner, partner or key employee; whom a business depends on for continued successful operation. With the typical personal life plan, a family member usually receives the benefit. In this type of plan, the company would be the one to acquire the benefits.
A key person can be anyone that is essential in the daily operations of a business. Their absence may result to devastating losses such as financial troubles, interruptions or failure. For large companies; an executive, principal shareholder, a particularly effective salesperson can be considered as a key person. On the other hand, the key person in small businesses is usually the owner, founder, partner or a key employee.
With a key person life insurance person plan, a company buys a policy for their key employees, pays the premium and becomes the beneficiary. If an unexpected death of the key person occurs, the company will obtain the pay off. This type of coverage is important since the loss of a key person in a small business may lead to the immediate decline of that business. The main purpose of this is to assist a company in overcoming the negative consequences brought about by the death of someone who helped make the business function.
A company uses its proceeds for certain expenses while finding the replacement for a key person. Small companies may use the money to buy the shares in the business from the family of the deceased employee. It can also be used to pay off debts, allocate money to investors, pay separation fees to employees or close the business down in an organized way. In some cases, this policy provides companies some alternatives other than claiming bankruptcy.
If a company is planning to take out a business loan, it is recommended that they also buy a key man plan. Many lenders may require it wherein either the company or the lender acts as the beneficiary. This guarantees that the loan can be paid off even though the key employee dies or the company's assets get liquidated.
To determine the need for key person life insurance, it is important to assess the business and to think about who is irreplaceable in the short term. For instance, small businesses consider the owner as someone who holds the company together. His function may be managing employees, handling important customers or keeping the books. If the owner is gone, the business would practically be brought to a halt.
The cost of availing this type of plan depends on the business. However, generally businesses must acquire as much person insurance as they can afford. The sum insured can range from thousands to millions of dollars. A company should think over how much money is needed to survive until another person serves as a worthy replacement. One should buy a policy that suits the company's budget and is capable of dealing with short-term financial needs in case of tragedy.

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Which Is Better: Term Life or Permanent Life Insurance?

By Martin Swan 

No matter, how much you may be assured about your life, there is still no harm in grabbing a life insurance policy from a firm. That way your loved ones are completely assured of assistance, in any case of demise. So, the goods of it far outweigh the bad. The important part of it, though, is which insurance policy to spend in, Permanent Life or Term Life Insurance, and in knowing that which one is better than the other? This article covers that aspect of the decision.
Term Life Insurance, as appears from the name, is for a particular time period only. For example, it may last for one year, or two years. However, when that period expires, the insurance becomes void, and the face-value of the policy, which you paid to get it in the first place, is not returned. This type of policy can turn out to be pretty expensive in some cases, but is actually the least-expensive option available.
Such insurance policies are better for the majority of the people, because you don't have to invest as many resources in it as compared to the whole-life insurance, allowing you to use the rest of the money in another investment and still giving you a respectable protection against death. The renewal factor adds flexibility in all of this, and allows you to invest in such a policy again. The huge amount of term-policies available in the market gives competitiveness to the whole insurance landscape. So, you can almost always get the right kind of the insurance you need, at the right face-value and for the right period. It must be said, though, that these kinds of policies, are affordable only for the short-term. If you have a long-term insurance plan, then it is truly better to go for Permanent Life Insurance.
Permanent Life Insurance, (also called Whole Life insurance)insures you for life, as long as you pay the premiums, which is forever. It also has a 'cash value', which basically means that part of the premiums that you pay are added into the main value of the insurance. So, the face-value of the insurance increases as time goes on. As looks obvious from the differences in the two policies, this one is a lot more expensive than the term insurance. Nevertheless, its benefits are a lot more than term-life insurance policies.
These kinds of insurances are best left for those who have copious amounts of money available to them. Because for the average man, such an investment will give him perks that he really can't afford. It's all about prioritizing in this case. Moreover, the resources required in such a venture can be better spent elsewhere.
So, here you go. Term insurance is definitely better for the common man. It's simple and affordable, but if you really have a need to be insured for the rest of your life, or you simply have a larger budget, then be assured in knowing that this deal, though a bit expensive at first, will ultimately deliver a better deal for your buck.

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