Life insurance policy for cash
December 29, 2013 by Dr. Letitia Wright
Filed under A Note for You, Featured Articles, Front Page
Insurance (Photo credit: Christopher S. Penn)
Life insurance policy for cash
As we go into the new year of 2014, many people are strapped for cash. They start looking at all the possible places they can scrape up money. Many people start asking for refunds on things they purchased to see how much cash they can gather. Some people start selling off assets. You can even sell a life insurance policy. It’s called a life settlement. A Life Settlement is the sale of a life insurance policy to a third party in exchange for a cash settlement in excess of the policy’s cash surrender value, even if there is none. This is also called and insurance settlement or senior settlement. This is an innovative wealth and estate planning too. It takes away the burden of expensive insurance premium payments and provides a lump sum cash settlement. This allows policyholders to get cash out of their life insurance policy, in an amount in excess of the policy’s cash value (if any), while they are still alive.
Life Insurance settlement or Life settlement presents a unique opportunity to the policyholder. It is the ability to extract the maximum possible value from an existing life insurance policy and utilize those funds for other financial needs.
Clients ask if there are any restrictions on what the cash payment can be used for. There are no restrictions whatsoever on what the cash payment can be used for. They can use the money to purchase new insurance, travel the world, start a business, buy a property or fulfill their dreams. It’s their money for their own personal use.
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Personal Investments That Can Back Up Your Business
June 24, 2013 by Dr. Letitia Wright
Filed under A Note for You, Front Page
Those who put away their fears and step out into the risky world of small business take on many hats. Most often, these folks become the worker bees, the accountants, the human resources office and a myriad of other titles all in one fell swoop which begins with the creation of their business.
Sometimes, this very stressful and work-heavy lifestyle is almost preferred to the moment when the business begins to grow and others come underneath its umbrella. Up until that moment, failure would be highly personal. Sure, it would be horrible, but at least other families and lives wouldn’t be irrevocably altered by the business ceasing to exist.
Many business owners find relief through making personal investments which will back up their business if the worst were to happen. While this isn’t foolproof, it certainly would provide a much needed cushion in the event of some catastrophic event negatively affecting the business.
General Investing
General investing is immensely important to anyone, but even more so to the business owner. It is preferable to take a diversified approach, spreading investments across bonds, stocks and mutual funds. Also, spreading the wealth, so to speak, allows for one type of investment to make up for any losses incurred in another area. These investments can provide a secure backing for business ventures.
Life Insurance
Life insurance is often undervalued, but it is truly integral to the business owner. Heaven forbid that something unexpected happen and a business owner pass away, leaving his or her family and employees in limbo. A good policy would allow the business finances and time to recuperate and get back on its feet while logistics were worked out, as well as protect the business owners own family. Additionally, some types of life insurance allow for interest free borrowing which can be used for any purpose, including the beginning of a business or keeping a business afloat during difficult times.
Long Term Care and Disability Insurance
It is estimated that somewhere around seven out of every ten people younger than senior citizen status will need long term care at some juncture in their lives. Long term care insurance helps to cover the cost of such expensive needs. Disability insurance, likewise, helps to tie up the loose ends such as bills and regular life expenses by replacing income when an individual is unable to work. These two types of insurance, while obviously protecting the covered individual and their families, will also help to protect the steadiness of a business should its owner be the one taken ill.
Personal investments are excellent ways to provide a support system for a business. Utilizing life insurance, general investing, long term care and disability insurance is just smart business.
