I’m trying to find a company to purchase term life insurance. I want a good brand and not some scam. Thanks to anyone that replies.
I have read from many different sources that term insurance is the best way to go, and just invest in mutual funds. But, I personally know a few people who own cash value policies. They have something called “equity indexed” life insurance (not variable life insurance) and seem to be pretty happy with it. Does anyone know anything about or have any experience with this kind of insurance? I’m considering going with something like that because I was told it’s basically term insurance with a savings component where you earn interest based on the upward movement of the S&P 500, but you’re not actually investing in the market so there’s supposed to be no downside risk.
Anyone? Thanks.
You probably can already tell that I am all in favor of term life insurance policies for most all your life insurance needs. In this case, we are considering another wrinkle in the term life arsenal which is decreasing term life insurance.
Decreasing Term Life Insurance is normally written to cover the debt used for various large purchases such as mortgages, car loans and the like. The concept is to take care of the remaining debt on these items in the event of the death of the primary producer in the household. A more oblique use is as an offset to the difficulties that could come early in a marriage or partnership where the level of debt is high in the initial stages but where the debt is reduced over time and other assets are accumulated.
If your goal is an attempt to meet the reducing debt load as it matures, then the decreasing term life insurance policy decreases accordingly and is designed to be enough to take care of the debts should a premature death of the policyholder occur.
Premiums for decreasing term are usually constant over the life of the policy but the stream of premium payment are calculated to correlate with the anticipated residual balance of the debt during the term of the policy.
Decreasing Term Life Insurance can apply to a single life or a joint life/first death basis and is priced accordingly. These policies expire at the end of the term without residual cash value. The cover is designed for a specific set of conditions and needs to be adjusted whenever the underlying debt structure changes. In other words, if the cover if linked to a mortgage loan then on selling and moving and new mortgages being written, the decreasing term life policy needs to be updated.
A new year. Time to pause, reflect and make resolutions. I can guarantee that unless you have done that in the year drawing to a close that your life insurance plan needs review and in all probability needs revision as well.
So we’ll take a look at the things you need to know and the things you need to do in the weeks ahead.
Stay tuned
Tim
While many people need van insurance long term, in some cases there is a need for short term van insurance. If you are a driver that rarely uses your van, then private van insurance for 48 hours can be a great choice for you. There are options available for private use and business use as well when it comes to temporary cover. So, why pay out money for a policy that covers you all year when you only need insurance for a few days? You can save a huge amount of money when you go with private van insurance for 48 hours.
Great for Businesses that Need Short Term Cover
If you have a business and you just need some short term cover, short term insurance for your van is an excellent option. In some cases you may only need to use a van for a commercial use a few times a year, so you won’t want to keep a policy on that van all the time. It can be expensive to keep a van insured all year long, so why not just go with a short term insurance that lasts for 48 hours or even for a week, so you have the cover you need without spending a huge amount of money all year long on cover you don’t need.
Excellent for Vacations
You’ll find that private van insurance for 48 hours is excellent if you are planning on going on vacation. While you may never use you van on a day to day basis, if you are going on a vacation, you may want to take a van since it has more room in it. In this case you’ll need some insurance while you’re gone, so some short term van insurance will be just what you need. So, don’t go on vacation without great private insurance that will cover you while you are away.
Quick and Easy to Get
You’ll also find that private van insurance for 48 hours is quick and easy to get. Usually you can easily find it online and within a few minutes you can get the cover that you need. So, if you have a van that you rarely use, consider going with some form of short term insurance when you need it.
The Federal Housing Authority’s home buying programs require that a mortgage insurance premium (MIP) of 1.5% of the amount of the loan be paid upon closing. Fortunately, homebuyers can finance the cost of the MIP into their mortgage amount. An additional .50% MIP is added in the PITI (principal, interest, taxes, and insurance) of each monthly payment. Condominiums do not require the 1.5% up-front MIP, only the monthly .50%.
FHA loans carry a higher mortgage interest premium than conventional loan programs, which only demand MIPs as little as .5% (for those homebuyers putting 10% down), with a renewal rate as little as .3% in subsequent years.
It is a widely-known fact that FHA mortgages help a wide variety of Americans who otherwise would not be able to afford a home to buy one. FHA insured loans are not for everyone, however. Though the down payment and therefore up-front costs are lower on FHA mortgages, the monthly payments might possibly be higher.
There is no clear-cut rule to whether a specific FHA loan would cost you more or less than a conventional loan. Just as with conventional mortgages, different FHA mortgages have different interest rates and different loan terms based on numerous factors, not least of which is your credit. With a conventional loan, your credit is considered jointly with your income.
As FHA loans are designed more for low-to-moderate income households, an applicant’s credit is weighted even heavier. The result of this could potentially be higher interest rates and (with the additional cost of monthly mortgage insurance premiums) higher monthly payments than you could get by coming up with a larger down payment and getting a conventional loan.
Of course, that is not always an option for would-be homebuyers. Fortunately, many of the closing costs associated with FHA mortgages can be financed into the loans. The FHA also helps homebuyers by imposing limits on how much money mortgage companies can charge in certain fees, such as loan origination fees which, according to the restrictions placed upon FHA lenders, cannot be higher than 1% of the total loan amount.
The most striking fact about the cost of FHA mortgage insurance however is its cost to taxpayers, that being nil. FHA mortgage is totally self-funded, with the money paid by borrowers in mortgage insurance premiums going directly into an account which pays for the FHA’s expenses. The bottom line of this is that not only do FHA-insured mortgages and FHA mortgage insurance benefit borrowers and lenders alike, but all hardworking American taxpayers as well.
Mortgage insurance can really be costly. Every month when you see the description of your mortgage installment it may surprise you that a big proportion of the payment is actually taxes, fees and insurance. It is possible, however, to eliminate the need for mortgage insurance provided that you meet certain requirements.
Mortgage insurance can cost thousands of dollars over the whole life of the loan. In many cases people agree to get insurance with the company associated with the lender that may abuse this situation overcharging customers. You should know that you have rights on this matter and that the lender cannot decide which company you work with.
Private Mortgage Insurance
Private Mortgage Insurance (PMI) is compulsory when your mortgage loan exceeds 80% of the property’s value. The idea is that if anything happens to you and you can not meet the monthly payments, the property is ruined, burned or reduces its value for other reasons, the insurer will compensate the lender for his loses.
PMI grants the lender an extra assurance for repayment in case something unexpected happens that is beyond the control of the lender, the borrower and the legal system. This reduces the risk for the lender but increases the cost for the borrower. Thus, it is only required when the loan exceeds a certain amount of the value of the property.
Conditions For PMI Elimination
Thus, the condition for PMI elimination is that the debt to value ratio is reduced below 80%. This can be achieved with the accumulation of the monthly payments that reduce the debt secured by the mortgage or by a raise on the value of the property that also alters the debt to value ratio lowering it.
Nevertheless, you need to read the loan contract thoroughly in order to understand if there are additional requirements and you also need to analyze the offers provided by other lenders and by your current mortgage lender to see which percentage is currently being required to waive the PMI requirement.
Method For PMI Elimination
In order to get rid of PMI, you will need to refinance your home loan. There is always the option to request your current lender to consider eliminating PMI from your outstanding mortgage but, that would also be a form of home loan refinancing since the terms of the loan would be altered.
Truth is that by refinancing with other lenders you have more chances of getting a better deal. Your current lender is already earning money at your expenses and chances are that he will not be open to negotiations. Other lenders, on the other hand, will be fighting to have you as a new client and will present you with different loan options.
Provided that you get a low debt to value ratio, the possibilities to get a home mortgage loan without PMI are on your side. Just get in touch with various lenders and request loan quotes from them letting them know that you seek a non PMI home mortgage loan and that you are consulting with several lenders. Do not miss the opportunity to bargain a little on the interest rate too, you may save thousands of dollars by doing so too.