Thursday, December 2, 2010
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If you are in the market for a life insurance policy, then a Term Life Insurance quote is by far your best bet. The reason I say this is because Term Life Insurance is much less expensive than Whole Life Insurance and also provides coverage that is much more flexible than Whole Life is. Term Life is a temporary Life Insurance coverage plan, whereas, Whole Life Insurance is designed to be a permanent solution. Let me explain them both briefly.
Whole Life Insurance premiums are higher than Term Life, however, a portion of what you pay each month will go into a savings account for you. This is how a Whole Life policy gains what is called "Cash Value". There would eventually be enough in your savings account where you could borrow against the policy if you needed to. The only drawback is that whatever you borrow must be paid back.
Most standard Whole Life policies are designed to be paid on for your entire life or until you reach the age of 100 years, whichever comes first. At this point your policy will be cashed out for full face value. The "Face Value" is not the same as the "Cash Value". The Cash Value is the amount accrued in your savings account, where the Face Value is the amount of the policy. Example, if the policy was a $100,000 policy, then $100,000 would be the Face Value.
Term Life Insurance covers you for a specific period of time or "Term". This could be a 10 Year Term, 20 Year Term, Guaranteed Term, and so on. There are distinct advantages with Term Life, besides the fact that it's much cheaper. For one thing, there's no Cash Value because you're not paying into a fund. The good news is that you can easily find a fund that will pay you more than most Insurance companies will with a Whole Life plan. Also, you won't always need Life Insurance.
Once your kids are through college and your home is paid for it no longer makes sense to have a policy for a million bucks. All you need at this point in life is a good Term Life policy that will take care of your spouse, your debts and your burial. Any other money should be going towards your retirement funds. Do yourself a favor and get a Term Life Insurance Quote right away!
Joe Stewart Is A Webmaster And Former Life And Health Insurance Agent. He's Made Understanding Life Insurance Easy For Others. You Can Get Free Life Insurance Quotes At His Website http://hotgirlsbusiness.blogspot.com or by clicking on Term Life Insurance Quotes |
So here you are, wondering where to start on your quest to generate some life insurance leads.
Well you have taken the first step. Searching online for help and guidance is always a good thing, because you can never have too much information in my opinion! There are many types of leads available, both online and in the "real world", and some, such as exclusive life insurance leads work better than others, depending on your personality and sales abilities. Take a few minutes to read this short guide and hopefully it will get your mind working and start the leads rolling in.
One of my personal favorite methods of life insurance lead generation, although it may not be the best method for everyone of course, is just to talk with people and make friends wherever you go.
The trick is to not be so pushy, don't start out talking business, and simply have a conversation with people about something unrelated. Nobody likes to feel as if they're in your cross hairs so to speak, so just act naturally and maybe make some jokes or whatever feels appropriate. You can never really know, but one of these encounters may hint you into a group of exclusive life insurance leads down the road.
Another method that is more of a long term strategy for generating life insurance leads is the good old fashioned business card. Do not overlook this. Even though the world has changed, and many people consider their social media page to be their business card, the fact is that a lot of your customers just aren't in to all of that stuff. Especially if you are trying to gather leads on senior's insurance you will want to have a professional looking business card that you can hand out, and have a lot of them. Like I said, this is another long term strategy, so don't expect to start generating leads overnight with this. However, handing someone your card makes it personal, and
I have found that this personal contact may end up giving you a number of exclusive life insurance leads down the line. And these will actually be exclusive due to the fact that they will come to you and not the other way around.
What if you need a quick fix? You need life insurance leads and you can't afford to wait around for them? Well then you just need to get out there and make yourself known. Offer sponsorships in your community that will get your name and occupation up in writing somewhere, or even go door to door selling your service.
It will take some trial and error to find out what works for you and what provides the best life insurance leads with the least time and effort involved, so try everything you can think of and then think of some more.
The business of generating life insurance leads is a competitive one. You must always be on the lookout for new leads and searching for better methods of generating them. You should also always try to evaluate the best leads for you, whether they areexclusive life insurance leads or any other type. |
A life insurance trust is the best option, especially for those looking in the over 50's life insurance market because of the advantages a trust offers in saving tens of thousands in inheritance tax. If you have decided to choose a trust, the choice of trustees can be vital and you as the settler must be secure in your choice. As the settler, you have the entitlement to be one of the trustees, if you have decided upon a joint life insurance policy, you and your spouse can both be trustees with the same level of power and rights within the trust. Most, if not all financial advisors will counsel that there should be two trustees at any one time as a minimum, though you can name as many as you desire in reality. In the event all the trustees die, the trust does not also die but carries on, meaning the exemptions from Inheritance Tax (IHT) are still in place. However, the trust must now go through probate to re-administer it, meaning fees and a lengthy wait while it is completed, negating one of the advantages of having a trust in the first place. Ergo one desired quality of trustees is they be no older than yourself and be in healthy shape.
So which qualities should your ideal trustee have?
Right, legal thresholds to being a trustee first, the nominated trustee must not be or recently have been bankrupt, be mentally capable and be older than 18. Character traits to look for are someone who has common sense, is organised and can spare the time to direct the trust, as it can be a time consuming task even for a straightforward trust. The trustee must be keeping the beneficiaries informed of any investments and the paperwork with it must be kept up to date and in line with the trusts objectives as they were agreed and written. As when the trust matures, the trustees need to validate any spending to the beneficiaries, so the more detailed and controlled a person is the better. You should be certain that the trustees you have chosen would not challenge what you want the trust to achieve when you have passed, and also not have problems carrying out the agreed upon objectives for the trust, for this reason it's best to have a detailed will that acts kind of like a constitution for the trust. As the trustees must abide by the instructions in the will; it will also have the extra bonus of helping the trustee when you have passed away, as they can back up their explanation of your wishes with documented proof if any of the beneficiaries feel aggrieved by the trust and will target the trustee, when they could not have changed what was decided in the will. An example, if you have younger children you wish to provide for, within the will you can direct the trustees to release funds to make sure the children are sent to a private school, the trustees have no choice but to follow what amounts to a directive.
Who should I elect on to be a Trustee?
The standard picks to be trustees will obviously be family members or close friends; however there can be pitfalls in choosing one of these. The advantages are obvious, they'll know what you would want when you pass away and you will probably already have a good idea if they will be qualified for the task. Alternatively, the negatives could result in bias towards certain family members/beneficiaries which could lead to challenges on the trustees' authority. The trustee could also be a beneficiary, leading to a conflict of interest in the executing of the trust, objectivity is pivotal to being a trustee as they can be a lightning rod for any grievances beneficiaries might have, it's something your probable trustee must be primed for. You must remember that the trustees you choose will be handling large sums of money, so it can be risky if you choose trustees who won't have experience of handling such large sums, maybe even investment if that's what you plan for your trust, odds are your family members won't have this experience. It's advised in some cases that you have one nonaligned trustee who can be seen as not knowing the beneficiaries; this can be the family solicitor. It's possible to ask a professional to be a trustee who is also a mere acquaintance such as a Doctor, Priest or Teacher etc, i.e. someone who could be classed as "Upstanding in the community". It's possible to hire a professional trustee, the advantages of this route are they will be experienced in financial investment (if that's your aspiration for the trust), especially if you have set up a discretionary trust. As a trust could last for decades, its probable circumstances and trust law could change, a professional trustee would be more tuned in to what the ramifications on your trust could be and actually be aware of them changing, whereas a friend or family might not. Professional trustees, and your solicitor if you choose them, will command a fee for their services, while you may think it's cheaper having a friend or family member be a trustee, they might need outside counsel on financial planning or accounting if they're not experienced enough to deal with finances. If you decide to look for a professional trustee, search for one with a TEP qualification (Trust and Estate Practitioner), as it is a recognised qualification throughout the world, your financial advisor can point you in the right direction if you would like to search for one. It goes without saying it's wise to have a candid discussion before hand with your chosen trustee, even to treat it as an interview to make sure you are making the proper choice. If you are looking for a guardian for your children, do not pick the same person who is a trustee, this keeps the short term objectives of the guardianship and long term goals of the trust do not become mixed, it also acts as a healthy checks and balances system, ensuring you children's safety would be secure and that of the trust.
Different trustees for different trusts?
If you still cannot decide on whom to pick as a trustee, what type of trust you want to establish could help narrow down the field for you. For example, you might just want your life insurance to be paid out in a lump sum or have payments on your death (Term or Mortgage Protection Life Insurance) and if it's clear who the beneficiaries are, the job as trustee is easier than being trustee of a Discretionary Trust (DT). Under a DT, the trustees control "Power of Appointment" and therefore have more latitude on how to dole out the trusts finances. Ideally a trustee will personally manage the investments, if they can't or don't wish to, they have the power to delegate to someone else while retaining the veto on how to distribute the finances to the beneficiaries. While the trustee is obliged to use the finances for the good of the trust, there is no official supervision to what the trustees can do with the possessions. For all trusts, not just DT's, a trustee is not personally accountable for losses as long as they don't exceed the total amount within the trust; they are liable though for losses over the trusts total amount. For example, if the trust loses £120,000 and the trust only had £100,000, the trustees are accountable for £20,000.
Trustees have no legal right to be paid (though professional trustees will have a written agreement to be paid), so if you have selected a friend or family member, it's usually good form to leave a sum of money for them in the trust as a goodwill gesture. It also has the additional bonus of making them more watchful with investments for the trust. It's recommended that trustees don't make any rash and unsafe investments, instead going for moderate and sturdy growth.
If you're wondering why a DT has been explained, it is to show what skills a trustee will need to run a trust and hopefully help you pick your trustees. It can be hard work and depending on your needs, knowledge in certain areas may be vital. So as you can see, selecting a trustee is not about just picking your best friend, brother or wife, you have to make a calculated long term decision to create the secure future for your loved ones.
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