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Single Premium Immediate Annuity Advantages

FinanceGuy — Mon, 09 Jan 2012 17:18:29 +0000

What Are The Disadvantages And Advantages Of Single Premium Immediate Annuities?

This website has already discussed some advantages of immediate annuities for retirement savings. However, some time and passed and the economy has changed. I decided it would be worthwhile to re-visit the topic.

I also wanted to point out this single premium immediate annuity calculator you can use for free.

For this discussion, we are talking about fixed, single premium retirement annuities. Please understand that contracts can differ wildly, and it is up to you to discuss the details with a professional. However, we will narrow down our thoughts to annuities with the following characteristics.

Fixed Annuities – That means we are not discussing variable annuities which are much more risky, though may also have bigger returns in good years. A fixed annuity may have a fixed interest rate (like a bank account), or it may be set to a market index. Fixed annuities that are set to a market index, like the S&P 500, still should have a guaranteed minimum return.
Single Premium – This means you fund the account with one lump sum of money. You may, for example, get a distribution from your workplace when you retire, or you may decide to use money you have saved in your bank, money market, CD, etc.
Immediate Annuity – This means that you plan to fund your account, and then immediately start taking income out of it. This is a typical thing that a retiree might do. He or she funds the annuity with one lump sum of money, and then plans to take income for some set period of time, or for a lifetime.

Who Offers Annuities?

Annuities are insurance company products. Life insurance companies know how to make the calculations to estimate lifetime payments.

Single Premium Immediate Annuity Disadvantages

There are two big drawbacks to immediate annuities. If these concern you, you may want to consider an alternative way to save your money.

You will have to have a large enough lump sum of money in order to fund the account. If you want lifetime income payments, you cannot expect to get very far if you can only invest $5,000.
You will also have to give up control over this large sum of money for a long period of time. Most annuities have long surrender periods, so you will be penalized if you do decide to withdraw your money before the time period is up.

Single Premium Immediate Annuity Advantages

So why would people ever want to give up control of a large sum of money? There are several advantages of these types of accounts to consider.

Few Alternatives – The biggest reason that many people decide to use an annuity to invest their money, and provide retirement income, is that they do not like the alternatives. Bank products, like savings accounts and CDs, are paying very low returns these days. Market investments, like stocks, can be very risky.

Minimize Risk and Maximize Rewards – So what you get in return for giving up control of your money is a way to maximize your returns while minimizing risks. While most annuities are not FDIC insured like a savings account, they are backed by top insurance companies and state regulations.

Can You Really Get Free Insurance Quotes Online?

David — Sun, 11 Dec 2011 16:07:03 +0000

Are Online Insurance Quotes Really Free?

Can You Really Get Free Online Insurance Quotes Today?

You are right to be skeptical when it comes to getting things for free. The Internet is no different than any other medium of advertising. Even the top companies can go overboard with offers that make things look a bit better than they are. So you may view an offer for a free online insurance quote with some concern.

However, insurance companies and agents have always offered to quote insurance policies for free.

Paid brokers exist. There are actually specialized brokers that do charge a fee for their services, because they take up a lot of time. This is rare. But the vast majority of agents cannot require any type of purchase when they offer you competitive prices and policies. If the broker charged a fee, they would have to be very upfront about it. You would understand the fee, and if you decided to pay for this service, you would have to believe the service was worth money.

This is all true if you want to compare insurance quotes on the phone, in person, or over the Internet!

What’s The Free Online Insurance Quote Catch?

There is no real conspiracy here. Of course, agents and insurers hope to speak with you, offer their products, and make a deal. These companies use the free service as a way to gain contact with potential customers.

When using the Internet, as opposed to visiting a live agent, you may want to spend a couple of moments safeguarding yourself though. You may notice that BestQuoteUS.com uses quote services that do a few things to help you feel confident.

The quote system participates in the Better Business Bureau Online organization. That way, you can see good and bad things people have to say about this service.
The quote system takes you to a secure server when you actually do need to enter any information. That helps safeguard your privacy.
Note that the online insurance quotes are not actually provide by this website – BestQuoteUS.com, but by a 3rd party. This is clear. We partner with a couple of other trusted companies that hook up licensed agents with customers in their local area. This is just an efficient way to operate.

So, are these quotes really free? Well, it will take you a few minutes to fill out the form. We think this is a lot faster than calling around or making appointments. If time is money, you may have to figure how much 5 minutes of your time is worth.

But otherwise, you are not under any obligation to buy anything – or even talk to anybody. That is just about as free as it gets, IMO.

Are Insurance Bills Killing Your Budget?

FinanceGuy — Sun, 20 Nov 2011 15:48:38 +0000

Are You Paying More For Insurance Than Anything Else?

How To Get Cheaper Insurance!

This is a shocker, but it is also quite common. When you really sit down to make a family budget, you may add up all of your various insurance expenses. These include auto, life, health, home. accident, etc. They could also include warranties and insurance policies you purchase on things that you buy – like home electronics or auto repairs. When you do add them up, the total may be larger than any other single bill you have – including your mortgage!

Do You Need Cheaper Insurance?

Your high insurance bills may be the problem, or they may actually just be a symptom of another problem. You need to consider a few things.

Are you over insured? Have you taken such giant steps to protect yourself against any risk that you are spending more than fixing the problems would cost? This problem could be real on almost any type of coverage you buy.
Do you just have too much stuff to insure? If you downsized a few things, it could reduce a lot of expenses – and this may include your insurance premiums.
Do you have the best insurance deal? You may be able to find more competitive companies, or companies that are willing to give you a discount if you bundle your coverage in a package.

Are You Over Insured?

To figure out which problem is affecting you the most, you really need to examine your coverage. You can take out all of your policies and check them, or you could sit down with a good agent who should be happy to help you. Part of a good insurance agent’s job is to consult with their clients to make sure they are adequately, but not over, covered!

Here’s an example that is only meant to illustrate a problem, and not reflect on any individual. If you make $50,000 a year, and live in a $100,000 house with half of the mortgage paid off, maybe you really do not need a three million dollar life insurance policy. You, and possibly your agent, should sit down and figure out how much life insurance you really need to protect your family.

Should You Downsize?

If you have less to insure, your insurance should cost less. Next time you purchase a vehicle, make sure you figure in the cost of insurance. If your luxury home insurance is eating your lunch, maybe more modest accommodations would actually make you happier.

Should You Shop And Compare?

Again, a little insurance shopping is one chore that may give you great returns! Many insurers provide multiple types of coverage, and they are quite willing to cut you a break if you can place multiple policies with them. If you have some type of coverage that is particularly pricy, this may be a great way to spread the risk with your other policies too. We do provide online insurance quotes to make it easy to get a handful of quotes in your local area.

The most common example of bundling discounts are auto and home insurance discounts. But I have seen advertisements for life and health too. Of course, if you already get your health through a group plan at work, this will probably not be an option.

Be A More Frugal Insurance Consumer!

Your high insurance premiums may be the problem, or they may just be the result of other problems. If you can address the real problem, you should be able to cut this expense.

Advantages Of A Good Insurance Agent!

FinanceGuy — Tue, 27 Sep 2011 16:27:53 +0000

Can A Good Insurance Agent Benefit You?

How Can A Good Insurance Agent Help You?

Yes, this is posted on an online insurance quote website. I do believe that web based quote system can help you start shopping and narrow down you choices. It can also provide you with contact information for competitive companies that are very eager to do some business with a person who fits your profile!

However, I would never discount the advantages of finding a good insurance agent when you want to make a final purchase decision.

Most web based quote systems also provide you with contact information. That way, you can call or visit an agent before you decide to buy.

Insurance Is Mostly Regulated At The State And Local Level

Most insurance gets regulated by your state insurance department. In addition, policies are developed and marketed and priced at the local level. When you research online, a lot of the information about prices, customer service, etc. will be national information. When push comes to shove, and you sit down to push the button, you will be buying coverage for your car, home, business, etc. that has been set up for your own zip code.

What Can A Good Insurance Agent Do For You?

An experienced local agent is bound to provide you with a resource that gives you stability and security in your purchase decisions.

He or she may see beyond the initial research you have done on the web to provide you with some tips or solutions you did not uncover. For example, my teenage son was off at college, and could be named as an occasional driver on my car. Removing him from “regular driver” status saved me quite a bit. There was no way I would have known that on my own.
It does not cost more money to purchase from an agent. Rates will be set by your state, underwriting criteria, etc. The costs of marketing are already built into your premium. Sometimes a good agent can provide you with information that will actually save you money. They are motivated by commissions, but good agents know that they keep your business by growing your loyalty.
A local agent can keep up with your polices and records. Having a local person tracking your claims and coverage can be a huge asset when you do need to make a claim on your policy.

When you combine the ease and convenience of online quote systems with personal service, you are sure to come out ahead.

Foreclosure Insurance

FinanceGuy — Wed, 03 Aug 2011 17:18:58 +0000

What Foreclosure Insurance Alternatives Can You Find?

Foreclosure Insurance?

These days, thousands of US home owners wish there was a way to protect their home mortgages against the risk of unemployment, slow sales, and declining home values. State unemployment benefits are usually modest. So how, besides saving for a possible job loss, can Americans protect their home asset?

What Will Not Provide Adequate Protection Against Foreclosure?

Unemployment Benefits

According to government numbers in 2010, the average American collected less than $300 a week from the state. Many of these people had mortgages that cost more than $1,200 a month. So there would be no way to keep a mortgage current, plus pay for food and other utilities if that is the only money that is left to tide over unemployed people after a long span.

Private Mortgage Insurance

This product gets attached to some mortgages, usually if the borrower does not have at least 20% equity in their home. The product is often required because it protects the lender. Let me repeat that. It was designed to protect mortgage companies, and not mortgage holders! Having PMI does not relieve the home owner of any responsibility to pay the mortgage.

What Type Of Insurance Can Help You Cover Your Mortgage Against Foreclosure?

A few years ago, you may have been able to rely upon private, supplemental unemployment insurance. The actual recession took a lot of these products off of the market. As of this writing, I am not aware of any though they may exist.

The best insurance has always been to have enough money to live on for several months stashed away. However, as periods of employment stretch longer and longer, these can deplete the best emergency funds. Experts advise us to have 3 – 6 months of living expenses stashed away. However, according the US Bureau of Labor Statistics, the average unemployment time was 40 weeks in June of 2011. This means that saving 10- 12 months of expenses should be a more prudent goal. I am here to tell you that the average American does not have 10 months or ready cash set aside.
Some home policies have optional riders that may make full or partial mortgage payments. These homeowners foreclosure insurance riders will mean you have to add to the cost of your policy. If your current company does not offer this product, it may be time to shop for another homeowners insurance company.
Mortgage life insurance is a different type of product. It was developed to help homeowners protect their family if the bread winner passes away. You may also be able to purchase optional riders that provide protection against critical illnesses and disability too. The unemployment riders on these policies usually only pay the policy premiums, and not the mortgage!
There is no 100 percent foolproof way to foreclosure proof your home. Some of the best tactics include keeping your head out of the sand. Problems do not magically evaporate over night. Also, try to take action as quickly as possible. If you are unemployed, and predict you will have trouble paying next month’s mortgage, the time to act is now and not in 3 months. Actions may include consulting your mortgage company, speaking with a lawyer, selling your home at a reasonable price, etc.

Free Online Financial Calculators

FinanceGuy — Mon, 30 May 2011 12:25:16 +0000

Free Financial Tools – Online Calculators

Financial Answers - Fast and Free!

This is not strictly an insurance post. We know that our readers also have other financial matters to attend to, and we’ve been collecting some bookmarks of good and free online financial calculators lately. So, in the interest of giving back, it seemed like a good time to post our list of favorites. Of course, we’d love to invite our readers to add any other good suggestions in the comments.

Insurance Calculators

Life Insurance Needs Calculator - Use this free and simple online tool to estimate your life insurance needs. It is a fast and handy way to estmiate how much coverage you might want to purchase for yourself and your family. You can add up things like your home mortgage, estimated money needed to educate children, etc. You can use this tool without registering, and you can use it as often as you want to!

Homeowners Insurance Calculator - Here, we are pointing you to an article that tells you how to calculate your home insurance needs, plus it points you to a rate estimate form. For example, it tells you how to calculate your home rebuilding cost. And it explains why rebuilding costs are not the same as the home value. It is not, strictly, a calculator, but instructions for figuring out your needs.

Other Financial Calculators

Free Online Financial Calculators - This website contains dozens of free money calculators. They all work for free, and you do not have to register at all. A few examples are handy tools to decide to rent vs. buy a home, figure out how differences in APR will affect you, and the affects of pre-paying a mortgage.

Credit Card ebt Payoff Calculator - This online tools helps you figure out how fast you will pay off your credit cards using with different payments amounts. It is a pretty useful tool, and since you can use it with different payoff amounts, it is better than the couple of estimates you get on your statements now.

Monthly Budget Calculator - The name is a bit misleading because you could use this tool for your weekly or monthly budget too. It gives you a variety of categories of monthly expenses, and then provides subtotals in each category, plus a grand total. This is a great way to figure out where your money is going in a simple way. If you ever get to the point where you just do not have a good handle on your expenses, this is a great place attacking the problem in a simple way!

Bullion Calculators

US Silver Coin Bullion Value - If you have old US silver coins, this tool can help you figure out the value of the buillion with today’s market price for silver. The page has a handy, real time chart of today’s silver melt value too so you do not have to go searching around for it.

Do You Have Favorite, Free, Online Money Calculators?

If you have any sugesstions, we’d love to hear about them.

How Do Online Insurance Quotes Work?

David — Mon, 23 May 2011 13:48:15 +0000

Do, and How Do, Online Insurance Quotes Work?

A Better Way To Compare Insurance Quotes Online!

This is one of the most frequently asked questions we get about this website – BestQuoteUS.com! We have provided competitive rates for several thousand consumers as of today, but many more hesitate because they want to know what they will get in exchange for their time.

We think that web based quote systems are a great tool that can benefit consumers and insurance companies. This is because they match consumers with insurance agents and companies that have actually asked to be connected with potential clients that fit a specific profile.

We understand why you hesitate. You do not want to waste your time, and you may even be nervous about entering some personal information on a website. We know that smart consumers and web users have these concerns.

Our Quote System : Please take a moment to learn why our online insurance quotes are different!

You start the quote form by filling out your zip code. That is because insurance prices are almost always set at a local level. Not all insurers do business everywhere either. So the first thing the system needs to match you with competitive companies is your home location. This is true if you want to cover your car, home, life, or health.
Then you will have to answer some simple questions. These questions will vary because of the type of coverage you want to compare. For example, if you want auto insurance, you will need to specify the make, model, and year of the vehicle you want to cover. Answering these questions usually takes about three to five minutes.
After you complete the form, you will find information for local agents or insurance company representatives that have specified that they want to be put in touch for the business of consumers like you!
You do not pay for the information. The online insurance quotes are free! In addition, you have no obligation to take this any further. You do not have to buy anything, and you can tell the insurers you do not want them to contact you.
We cannot speak for everybody, but the quote systems we use run on a secure server and work with the Better Business Bureau’s online review program. We are interested in protecting the privacy and experience of our visitors.

We cannot promise that you will save money by using our quote system. We can tell you that a lot of people have saved money while still getting coverage from top quality companies. You may already have the best insurer for you. But either way, if you decide to keep your old company or switch to a better deal, you will get the satisfaction of knowing you researched this important business.

How Do Online Insurance Quotes Work?

David — Mon, 07 Mar 2011 17:31:51 +0000

About Online Insurance Quotes

Computer Quotes!

If you are shopping for a new policy, or trying to replace your old one, you may remember the trouble of trying to compare quotes by talking to several different company reps. This process can be time consuming, confusing, and it can even be stressful!

You have probably seen several TV or Internet ads for online insurance quotes, and the idea may be very appealing. After all, they allow you to compare multiple policies and companies from your own home or office compuater. But you may want to know if these systems can really help you before you try them out.

There are a couple of different types of quote systems you may find online:

Some were developed by a specific company. You may only be able to see the policies that one particular company markets. These may go into a lot of detail about the plans from that one specific company. They can provide a lot of detailed information. You can usually find these on the main company website.
Some quote forms allow you to compare multiple insurers. You can fill out one form, and the system will match you with more than one insurance company. This way, you can figure out which companies want to compete for your business. They should also provide information so you can contact local agents or company representatives with any questions you may have.

Which Type of Online Quote Form Is Best?

The type of quote system you will want to use will probably depend upon where you are in your shopping process. If you are just starting, a competitive quote form will help you figure out which companies you want to explore more. Once you have narrowed down your selections, you may want to get more details about specifc companies. You can do that by using a companyquote system or by calling a local agent or company representative.

Either way, you can probably save a lot of time and money by using your computer to do some of the leg work for you before you buy.

Online Insurance Quotes – How Do They Work?

FinanceGuy — Sat, 27 Nov 2010 02:22:16 +0000

What Are Online Insurance Quotes Good For?

We, of course, promote our online insurance quotes. That is because we believe it is a guick, simple, and free way to :

Compare multiple insurance quotes. This way you can see who has the best policy, lowest prices, or insurance discounts that may save you some money.
Find cotact info for local agents who are eager to do business with potential customers who are just like you! Before you make a final choice, you may want to confirm your decision with a qualified local agent.

But some people tell us they hesitate to fill out the quote form because they are not sure what they will get out of it. Basically, the quote system needs some basic details in order to match you with the right insurers. That is why they tend to ask things that are important to the specific type of insurance you want to compare.

For example, if you want a fast car insurance quote, you will probably need to enter in some information about the types of vehicles you need to cover and the driving history of the drivers. If you are, instead, comparing medical policies, you will probablyhave to enter the ages of family members.

A good form will run on a secure server and be verified by a 3rd party. Our quote system participates in the Better Business Bureau online reliability program, and it does run on a secure server.

You will get an opportunity to see and compare online insurance quotes and contact licensed professionals who can answer your questions.

Health Care Reform Bill : Where Are We Now?

admin — Thu, 18 Mar 2010 03:14:59 +0000

Health Care Reform Bill

So where are we, and President Obama, and the US Congress, on the health reform bill? I guess it is true that in order to understand the present, we have to take a look at the past. Right now, the whole health care reform thing seems pretty hard to understand no matter what we know, but let’s take a step back anyway.

Health Reform Ideas Are Not New

The idea of health reform is not new. In fact, FDR hoped to include some sort of national health care in social security legislation way back in 1935. The next president, Harry Truman, had hoped to create a national fund that we would all pay into that would provide the money for his program. That did not work out, but since that time, every Democratic president, and quite a few Republican presidents, have tried to provide affordable health coverage to more Americans.

A Quick History of US Health Reform

Progress has been made. We do have a national health care program for senior citizens and retired people. This is, of course, Medicare. Even though it seems like it is an American institution, and has been the model for other nations, Medicare has only been around since the early 1960′s. And you may be surprised to know that it passed after a lot of heated debate and the predicted ruin of American medicine. We also have Medicaid and CHIPS, which are state and federal efforts to cover people and families with lower incomes.

Since then, President Bill Clinton tried and failed to pass a comprehensive health reform bill. This bill was used by Republicans to attack the Democrats, and many credit it with a lot of conservative wins in congress at that time.

Health Reform in the USA Today

However, times have changed. Right now, employers and business groups are really concerned about the rising costs of health care coverage. They are actualy advocating for change. In addition, health insurance companies have said they will accept reform, but just want to be included in the discussion. Once the public option was brought up, the health insurance companies have not been as cooperative as we might hope. But, at least, they said they would try.

The House and Senate came up with their own versions of a health care reform bill, but never seemed to be able to cooperate enough to turn one into law. Meawhile, pundits on both sides of the issue are getting a lot of press time on TV.

March, 2010 Health Reform Update

On March 3rd, 2010, President Obama announced that he expected Democratic congress people to get in line behind him, no matter how concerned they were about their chances for being elected again.

Here is the latest update from the New York Times:

In a letter to Congressional leaders sent March 2, Mr. Obama said he was open to pursuing four specific ideas raised by Republicans during the Blair House forum, including establishing “health courts” to resolve medical malpractice claims and encouraging the use by individuals of tax-advantaged medical savings accounts.

But even as Mr. Obama sent the letter, his chief of staff, Rahm Emanuel, and top health policy adviser, Nancy Ann DeParle, went to Capitol Hill to meet with House Speaker Nancy Pelosi and Senate Democratic leader Harry Reid and prepare a final legislative package that they would be able to pass with simple majorities in each house, using a parliamentary tactic known as reconciliation to avoid a Republican filibuster.

So what do you think the solution is? Almost everybody agrees we need US health reform, but nobody seems to be able to agree on how we should accomplish this. Feel free to register for free and comment!