"Return of premium" term life insurance comes of age

"Return of premium" term life insurance comes of age
If you'd like to have term life insurance in place to
provide for beneficiaries yet you're confident you'll
outlive the life insurance policy, you now have many
options for "return of premium" (ROP) term life insurance.
Under this type of life insurance policy, if no death
benefit has been paid by the end of your life insurance
term, you receive all your premiums back.

With a traditional term insurance policy, you buy a
coverage term, such as 15, 20 or 30 years, and pay a fixed
annual price. If you don't die within that term, your
contract ends and you receive nothing, having paid for the
"risk" that you might have died.

An ROP term life insurance policy gives you 100 percent of
your premium money back (it's tax-free) at the end of your
term if no death benefit has been paid. Or put another way,
"You can rent your insurance or you can buy it," says Alan
Lurty, Senior Vice President at ING.

How much will it cost me?

An ROP term life insurance policy will cost more than a
comparable traditional term life insurance policy, and
there is a significant range among insurers for that
surcharge, plus significant ranges depending on your age
and the length of term you want.

It will really pay to shop around for the best term life
insurance quote, but on the low end you can expect to pay
50 percent more than comparable traditional term life
insurance. So, for example, if your annual life insurance
rate for traditional term insurance would be $3,000, adding
an ROP option could bring it up to $4,500 annually. On the
high end, you might be looking at paying 150 percent more
over the base premium, so that $3,000 premium would become
$7,500.

Shoppers should also note that with a ROP term life
insurance policy, generally the longer the term the less
you'll pay out overall in premiums. So a 30-year ROP term
policy could actually end up costing less total money, at
the end of the term, than a 15-year ROP policy. How does
that happen? Because the 30-year term gives the insurer
more time to make its money back by investing your
premiums. So make sure you price out different term lengths
when getting a life insurance quote.

Generally, you will not be returned premiums for extra
riders you may add to the ROP term policy.
Who considers it?

The likely customer for ROP term life insurance is a person
who has the confidence he'll outlive his life insurance
policy. Or it could be the person who can't get over the
feeling that term life insurance is a "waste of money" if
the death benefit isn't paid out. ROP term life insurance
provides a way to hedge your bets no matter what happens.

What if I surrender my ROP policy early?

It's not wise to buy any life insurance policy if you don't
intend to keep up on payments. However, if you do surrender
an ROP term life insurance policy early, you will get some
of your premiums back based on a sliding scale if you've
held it for a few years. Check your life insurance policy
details about that sliding scale before you buy.

Many life insurance companies offer no premium returns if
you surrender your life insurance policy within the first
few years. Your life insurance policy will spell out the
rules for surrendering it, such as when partial premium
returns would start and the sliding scale for those returns.

For example, just because you're halfway through your life
insurance policy term doesn't mean you'll get half your
premiums back if you surrender it. The longer you keep it,
the higher percentage of premiums you'll get back, up to
100 percent at the very end of your term. (If you die
during your term, your beneficiaries receive the death
benefit without any premium return.)

Can I get it for less?

Life insurance companies such as ING and Genworth offer two
flavors of ROP term life policies, usually called basic and
enhanced (more expensive). Under the "basic" contract, you
pay a lower life insurance rate than an enhanced life
insurance policy because you get back less if you surrender
it early.

For example, if you bought ING's 15-year term life "basic"
ROP life insurance policy and surrendered it in year 10,
you would receive 30% of your premiums back. If you held
ING's "enhanced" 15-year life insurance policy for 10 years
you'd receive 60 percent back.

For either basic or enhanced life insurance policies you
always receive 100 percent of your premiums back if you get
to the end of your term.

Invest the difference?

Maybe now you're thinking that another option would be to
take the premium difference between traditional term life
insurance and ROP term life insurance and invest the
difference. Would you come out ahead at the end? It depends
mainly on your term length. Lurty of ING offers this
example: Say you're looking at traditional 30-year term for
$1,500 or ROP 30-year term for $2,000 annually. That's $500
a year you could otherwise put into investments. To equal
the money you'd get back from your ROP life insurance
policy at the end of 30 years, you would need to see an
investment return on the premium difference of about 7 to 8
percent. How well has your portfolio been doing? Lurty says
that with ROP term life insurance policies you don't have
to worry about "investing the difference" because it's
being done for you.

Note that the example is for a 30-year term. With
shorter-term ROP life insurance policies, like 15 or 20
years, you might indeed yield more at the end of the term
by investing the difference. And you would need the
self-discipline to actually invest those extra dollars each
year.

Of course, should you die within the term, only the death
benefit is paid out. Thus, don't view this as an investment
product.

Expect to see more return-of-premium insurance policies as
it catches on.

Companies selling return of premium term life insurance:

-American General Life Insurance Co.
-Fidelity Life Association
-Genworth Life & Annuity Insurance Co.
-ING Reliastar Life Insurance Co.
-Lincoln National Life Insurance Co.
-Pruco Life Insurance Co.
-Pruco Life Insurance Co. of New Jersey
-Transamerica Occidental Life Insurance Co.
-The United States Life Insurance Co. in the City of New
York

----------------------------------------------------
Amy Danise is an editor for http://www.insure.com . Visit
http://www.insure.com for a comprehensive array of
comparative auto, life and health quotes, including a vast
library of originally authored insurance articles.
Insure.com is dedicated to providing impartial insurance
information to consumers. Visitors can obtain instant
quotes from more than 200 leading insurers, achieve maximum
savings and have the freedom to buy from any company shown.

Working Capital Loans and Small Business Cash Advance Strategies

Working Capital Loans and Small Business Cash Advance Strategies
In this article we have identified the ten major problems
which should be avoided when obtaining working capital and
business cash advances based on credit card processing. As
noted below, it is not necessary to accept any of these
business finance difficulties.

Credit card processing and small business loan strategies
are closely connected in many ways. Business owners should
not overlook the substantial working capital benefits which
will accrue to their business by effectively coordinating
credit card factoring and processing. These benefits will
increase measurably if a number of common business cash
advance problems can be successfully avoided.

Even thriving small businesses frequently need more working
capital than they can borrow from a bank. One of the most
important commercial financing needs for any business is
ensuring that short-term cash requirements are successfully
met. This is frequently a difficult task.

The use of a viable business cash advance strategy has
become an increasingly important business finance tool for
many businesses faced with a potential short-term cash
shortfall. However, as noted below there are a number of
potential problems to be anticipated and avoided when
businesses use credit card processing to seek working
capital advances.

Most merchants have documented credit card processing
activity and sales volume. This documentation of processing
activity and sales volume is a financial asset, since up to
$300,000 and more can typically be obtained via a business
cash advance based on future sales volume.

Before employing this strategy for working capital business
cash advances, businesses should realize that there are
several recurring potential problems that they need to
anticipate. Ten common credit card receivables problems
that business owners should avoid when employing this
strategy are highlighted below.

First, many lenders will attempt to charge closing costs.
Business owners should realize that this is an unnecessary
transaction cost for business cash advances when dealing
with a truly reputable provider of working capital
financing based on credit card factoring.

Second, many lenders for these services also charge
up-front fees. This is also a transaction cost that can and
should be avoided, and with the best programs there will
not be any up-front fees.

Third, a number of business cash advance programs require
collateral. This is an unnecessary requirement to be
avoided by business owners seeking credit card financing.

Fourth, some lenders will require financial statements and
tax returns for all business cash advances. Such additional
documentation requirements should only be necessary for
larger working capital advances.

Fifth, monthly fixed payments to repay merchant cash
advances are imposed by some providers. The preferred
approach is to avoid such fixed payment requirements.

Sixth, some providers impose a fixed term for repayment.
This requirement to pay off the business cash advance over
a fixed term should be avoided.

Seventh, many programs for working capital business cash
advances require that a business have at least two years of
operating history to qualify. While many business owners
can meet such a requirement, a more practical standard for
newer businesses is a minimum of one year in business.

Eighth, most business cash advance providers require credit
scores of at least 680. In today's difficult economic
climate, this can be a challenging requirement. It is
feasible to obtain this kind of working capital financing
with scores around 500.

Ninth, for merchants needing larger business cash advances,
it will be disappointing to learn that many programs are
limited to a maximum of $25,000 to $50,000. Providers that
are better capitalized for this business finance strategy
will be able to accommodate an advance of $300,000 and
higher.

Tenth, many providers will require 12 to 24 months of
documented credit card sales of $12,000 to $25,000 or more.
A more practical possibility for business owners will
involve a transaction history with six months of $5,000 or
more.

It is not likely that all ten of the obstacles described
above will be pertinent for all business owners. Business
borrowers are likely to experience several of these
problems if they are considering a business cash advance
that uses credit card factoring and credit card processing.

Can all ten credit card finance obstacles discussed above
be avoided? There are indeed viable credit card receivables
programs which avoid all of the problems described. For any
business owner considering this approach to working capital
financing, it is probably worth repeating that it is not
necessary to accept any of these problems in order to
obtain business cash advances based on future sales.

----------------------------------------------------
Learn how to avoid mistakes with commercial loans and find
out about business cash management strategies - Steve Bush
is a small business loans expert =>
AEX Commercial Financing Group [
http://aexcommercialfinancing.com ]

Working Capital Loans and Small Business Cash Advance Strategies

Working Capital Loans and Small Business Cash Advance Strategies
In this article we have identified the ten major problems
which should be avoided when obtaining working capital and
business cash advances based on credit card processing. As
noted below, it is not necessary to accept any of these
business finance difficulties.

Credit card processing and small business loan strategies
are closely connected in many ways. Business owners should
not overlook the substantial working capital benefits which
will accrue to their business by effectively coordinating
credit card factoring and processing. These benefits will
increase measurably if a number of common business cash
advance problems can be successfully avoided.

Even thriving small businesses frequently need more working
capital than they can borrow from a bank. One of the most
important commercial financing needs for any business is
ensuring that short-term cash requirements are successfully
met. This is frequently a difficult task.

The use of a viable business cash advance strategy has
become an increasingly important business finance tool for
many businesses faced with a potential short-term cash
shortfall. However, as noted below there are a number of
potential problems to be anticipated and avoided when
businesses use credit card processing to seek working
capital advances.

Most merchants have documented credit card processing
activity and sales volume. This documentation of processing
activity and sales volume is a financial asset, since up to
$300,000 and more can typically be obtained via a business
cash advance based on future sales volume.

Before employing this strategy for working capital business
cash advances, businesses should realize that there are
several recurring potential problems that they need to
anticipate. Ten common credit card receivables problems
that business owners should avoid when employing this
strategy are highlighted below.

First, many lenders will attempt to charge closing costs.
Business owners should realize that this is an unnecessary
transaction cost for business cash advances when dealing
with a truly reputable provider of working capital
financing based on credit card factoring.

Second, many lenders for these services also charge
up-front fees. This is also a transaction cost that can and
should be avoided, and with the best programs there will
not be any up-front fees.

Third, a number of business cash advance programs require
collateral. This is an unnecessary requirement to be
avoided by business owners seeking credit card financing.

Fourth, some lenders will require financial statements and
tax returns for all business cash advances. Such additional
documentation requirements should only be necessary for
larger working capital advances.

Fifth, monthly fixed payments to repay merchant cash
advances are imposed by some providers. The preferred
approach is to avoid such fixed payment requirements.

Sixth, some providers impose a fixed term for repayment.
This requirement to pay off the business cash advance over
a fixed term should be avoided.

Seventh, many programs for working capital business cash
advances require that a business have at least two years of
operating history to qualify. While many business owners
can meet such a requirement, a more practical standard for
newer businesses is a minimum of one year in business.

Eighth, most business cash advance providers require credit
scores of at least 680. In today's difficult economic
climate, this can be a challenging requirement. It is
feasible to obtain this kind of working capital financing
with scores around 500.

Ninth, for merchants needing larger business cash advances,
it will be disappointing to learn that many programs are
limited to a maximum of $25,000 to $50,000. Providers that
are better capitalized for this business finance strategy
will be able to accommodate an advance of $300,000 and
higher.

Tenth, many providers will require 12 to 24 months of
documented credit card sales of $12,000 to $25,000 or more.
A more practical possibility for business owners will
involve a transaction history with six months of $5,000 or
more.

It is not likely that all ten of the obstacles described
above will be pertinent for all business owners. Business
borrowers are likely to experience several of these
problems if they are considering a business cash advance
that uses credit card factoring and credit card processing.

Can all ten credit card finance obstacles discussed above
be avoided? There are indeed viable credit card receivables
programs which avoid all of the problems described. For any
business owner considering this approach to working capital
financing, it is probably worth repeating that it is not
necessary to accept any of these problems in order to
obtain business cash advances based on future sales.

----------------------------------------------------
Learn how to avoid mistakes with commercial loans and find
out about business cash management strategies - Steve Bush
is a small business loans expert =>
AEX Commercial Financing Group [
http://aexcommercialfinancing.com ]

Guides to apply for Student Credit Cards

Guides to apply for Student Credit Cards
More and more credit card companies are now issuing student
credit cards. A student credit card is a students first
experience of handling finances independently and entry
into the world of credit card usage. It teaches them how to
spend and how to save. Credit cards are issued to students
only after one of their parents signs their consent. This
is also done to keep track of the credit card holder and
ensure returns on time.

You can apply for your student's credit card as soon as you
become 18 years old. To apply for a students credit card
first of all you will have to fill out a form of that
company or bank whose credit card you wish to apply for. To
get more information about various companies that offer
credit cards, visit their websites and study their terms
and policies well. Also take a good look at all the
facilities that they claim to provide you with. If in doubt
seek the help of an elder who has already been using credit
cards. Different companies have come up with their
different schemes to lure customers. Go through all these
schemes carefully and also go through their terms and
conditions like last date of making payment and so on. When
you have decided on a company or bank, go visit them in
their office and apply.

To apply for a student credit card you must be above 18 yrs
of age, must be a resident of United States and must have a
valid social security number. To apply for a students
credit card you will have to first of all fill out an
application form providing details about yourself, your
place of residence, your vehicle information and so on. You
also have to provide your bank account information so make
sure you have a personal bank account when you apply for a
students credit card. The bank will also ask you to add an
authorized user so that in case you don't pay up they will
take up your responsibility. Credit card companies have to
be extra careful with students as they have no credit
history to verify their claim. When you fill out your form,
try to answer all the questions as it helps in verification.

You can also apply for your credit card online. All credit
card companies use encryption technologies to protect the
sensitive information provided by customers so it is
perfectly safe to provide your details and make your
transactions online. In fact applying online is much more
convenient. You will get your credit card within a week or
two of applying depending on your company. When you get
your credit card you can use it for making purchases,
paying your bills and much more. Make sure you pay back in
time otherwise the interests could mount up and cause
problems for you. So make sure you use your credit card
carefully and always remember to keep your credit card
number a secret.

----------------------------------------------------
http://www.creditscardsonline.com

(Apply for credit cards
online, Fast Approval.)
http://www.elistz.net

(Elistz.net - Free Classifieds,
Post 100% Free Ads.)

Financial Analysts: Fail Your Way To Success?

Financial Analysts: Fail Your Way To Success?
In the world of financial analysts, there is little room
for mistakes. I agree with the importance of accuracy when
working with numbers. Number mistakes can be costly not
only to the firm. I've seen more than one trader lost their
jobs for keying in an extra zero. I've also seen equity
analysts fall off the pedestal for arriving at the wrong
calls with wrong numbers.

"Fail your way to success."

I don't know who coined this phrase. There is a lot of
wisdom in these words and I've adopted it as one of my
mottos. I think many people would balk at this idea though.

The education system conditions everyone since grade school
that mistakes are bad. You're penalized with poor grades
for being wrong and rewarded with good grades for being
right. This carries over to the higher education system and
then to the professional world. To be hired by the most
prestigious financial institution on Wall Street, you need
to have outstanding grades to attend the top B-schools and
pass the CFA exam with flying colors.

Of course it would be nice to be able to do things right
the first time. What are the chances of that happening? We
all fell down when we learned to walk. Otherwise, there
wouldn't be internship programs for the newcomers or a
hierarchy in the financial world differentiating people by
the amount of experience they have.

Experience is just a euphemism for a collection of
mistakes. The key is to learn from your mistakes and not
let them stop you from achieving your goal. Successful
financial analysts who are high up in the hierarchy are
those who have amassed and learned from their "experiences."

No matter what stage of your career you're in, there's
always something new to learn. This means there are always
chances of making mistakes even if you apply extreme
caution.

Try out as many things as early as possible while the
stakes are low. When your stakes are high, hire mentors and
advisers who have walked the path before you. It is
preferable to be able to reduce the learning curve and gain
from others' experiences at this stage.

Don't be afraid to make mistakes. The only sure way you
don't make mistakes is not take any action - that would
truly be the biggest mistake of all.

Always ask yourself two questions when things don't turn
out the way you intended:

1) What did I learn from it?
2) How would I do it differently the next time?

You might need to rebuild a valuation model you've spent a
whole week constructing because the valuation method you
used turned out not to be the best for that particular
investment. You might have worked really hard to break into
investment banking and found out it isn't for you, and you
would need to switch to another finance field that aligns
with your passion and long-term career goals.

Mistakes is an integral part of, and not a contradiction to
your strive for excellence. In the competitive world of
financial analysts, not being afraid to make mistakes is an
indispensable mindset to help you outperform your peers.

----------------------------------------------------
Corinne Lor is a success coach for financial analysts and
writes at Financial Analyst Blog.
http://financialanalystblog.com

High School Student Credit Cards: Why Mom and Dad are So Freaked Out

High School Student Credit Cards: Why Mom and Dad are So Freaked Out
High school credit cards -- they're a teenager's dream come
true and a mom and dad's worst nightmare. Students beg for
them, mom and run from them like they carry the plague.
What has mom and pop so freaked out? If you want to have
even half a hope of getting one of these coveted pieces of
plastic, there are some things you need to know...

Better Do Your Homework

I'm not talking about that math assignment you turned in
late last week. I'm talking about learning the ins and the
outs of responsible credit card use. Your parents are more
likely to consider high school student credit cards if they
know you have the knowledge necessary to handle them
responsibly. This means learning about credit limits, late
fees, statement payments and everything else that goes
along with credit card account ownership.

Speaking of Responsibility

If you really want to prove you're ready for high school
student credit cards, you'd better start showing mom and
dad you're a responsible individual. Responsible, as in,
curfew is not a general guideline. Responsible, as in, that
money you borrowed from mom for the movies has been paid
back. You want to prove you're ready? Start showing mom and
dad you're up for the challenge by taking your other
responsibilities seriously.

Create a Contract

If you're serious about high school student credit cards,
get to work creating a contract for mom and dad to review.
You'll want to include highlights such as who's responsible
for what (ideally, you'll be responsible for all charges)
and how much you will be allowed to charge per week before
mom and dad's permission is required. This let's your
parents know that you understand a credit card is not a
free-for-all spending spree.

If All Else Fails

If you do all of the above and your parents still think
you're not ready for high school student credit cards,
here's a last-ditch approach.

Start saving money. You'll need about $600 for this to
work. Once you have your $600 saved up go to mom and dad
and tell them you want a secured credit card in order to
start building a positive credit history. Tell them to use
$300 of your $600 as the security deposit and the remaining
$300 in a savings account in case you were unable to pay
your bill for some reason.

This will show your parents that you understand the
financial responsibility of being a credit card holder and
that you're ready to live up to that responsibility.

It may seem like a lot of effort, but the above steps
really will help your parents feel better about getting you
your own credit card. Remember, high school student credit
cards are as scary for mom and dad as they are exciting for
you.

----------------------------------------------------
For more tips on credit cards (including tips on credit
cards for teens), saving money and avoiding getting taken,
check out CreditCardWhizKid.com, a website that specializes
in providing credit card tips, advice and resources.
http://www.creditcardwhizkid.com/credit-cards-for-teens/

High School Student Credit Cards: Why Mom and Dad are So Freaked Out

High School Student Credit Cards: Why Mom and Dad are So Freaked Out
High school credit cards -- they're a teenager's dream come
true and a mom and dad's worst nightmare. Students beg for
them, mom and run from them like they carry the plague.
What has mom and pop so freaked out? If you want to have
even half a hope of getting one of these coveted pieces of
plastic, there are some things you need to know...

Better Do Your Homework

I'm not talking about that math assignment you turned in
late last week. I'm talking about learning the ins and the
outs of responsible credit card use. Your parents are more
likely to consider high school student credit cards if they
know you have the knowledge necessary to handle them
responsibly. This means learning about credit limits, late
fees, statement payments and everything else that goes
along with credit card account ownership.

Speaking of Responsibility

If you really want to prove you're ready for high school
student credit cards, you'd better start showing mom and
dad you're a responsible individual. Responsible, as in,
curfew is not a general guideline. Responsible, as in, that
money you borrowed from mom for the movies has been paid
back. You want to prove you're ready? Start showing mom and
dad you're up for the challenge by taking your other
responsibilities seriously.

Create a Contract

If you're serious about high school student credit cards,
get to work creating a contract for mom and dad to review.
You'll want to include highlights such as who's responsible
for what (ideally, you'll be responsible for all charges)
and how much you will be allowed to charge per week before
mom and dad's permission is required. This let's your
parents know that you understand a credit card is not a
free-for-all spending spree.

If All Else Fails

If you do all of the above and your parents still think
you're not ready for high school student credit cards,
here's a last-ditch approach.

Start saving money. You'll need about $600 for this to
work. Once you have your $600 saved up go to mom and dad
and tell them you want a secured credit card in order to
start building a positive credit history. Tell them to use
$300 of your $600 as the security deposit and the remaining
$300 in a savings account in case you were unable to pay
your bill for some reason.

This will show your parents that you understand the
financial responsibility of being a credit card holder and
that you're ready to live up to that responsibility.

It may seem like a lot of effort, but the above steps
really will help your parents feel better about getting you
your own credit card. Remember, high school student credit
cards are as scary for mom and dad as they are exciting for
you.

----------------------------------------------------
For more tips on credit cards (including tips on credit
cards for teens), saving money and avoiding getting taken,
check out CreditCardWhizKid.com, a website that specializes
in providing credit card tips, advice and resources.
http://www.creditcardwhizkid.com/credit-cards-for-teens/