Universal Life Insurance Explained
Consider universal life insurance. One of the more popular permanent policies is the universal life policy. What is this universal life all about anyway? This policy is permanent insurance which allows for flexibility in premium payments as well as in death benefit amounts. Think of this policy as a savings account with a life insurance policy attached.
Premium Payments
Unlike other types of life policies your premium payments are deposited into a savings account which earns interest on your money. Monthly withdrawals are taken from your account to pay administrative costs and life insurance premium costs.
You can enter into a contract with the company of your choice to deposit money into your account on a regular basis like you do with any other policy. Your premiums can be monthly, quarterly, half yearly or annually. On the other hand, you may choose to deposit larger amounts into your account in a less frequent manner. You can make your deposits in your universal life insurance account whenever you feel the need or desire to do so.
It does not matter which way you choose to go. The important thing to keep in mind is that there always needs to be sufficient money in the account to take care of the premium payments.
The company includes in your contract a minimal guaranteed interest rate on the money in your account.
As long as you keep depositing the minimum amount required your universal life policy cannot fall into a state of lapse.
Savings Element
You may want to know if it would be better to buy term insurance and just put the rest of the money into a savings account. The savings portion of your deposit has a guaranteed interest rate. You can deposit money when you want to. Term life insurance is temporary insurance. You buy a term policy for a specific number of years. If you need life insurance after that period of time you may not be able to qualify for it.
You may want to use your saving plan for a college fund for your children or possibly to top up your retirement fund.
The life insurance attached to your plan, though term based, lasts much longer that the better known term policies. You can keep your universal life insurance policy for the rest of your life. You can reduce the amount of death benefit any time you choose. You can also increase the death benefit but, depending on age and physical condition you may need to prove that you qualify for the additional coverage.
Policy Riders
You can add the waiver of premium rider to your policy. This provides that if you should become disabled for a minimum of 6 months the insurance company will pay your premiums for you for as long as you are disabled, even if it is for the rest of your life.
You can also add the double indemnity rider to your policy which provides double the death benefit if your death occurs accidentally.
For more go to: Universal Life Insurance Policy
100% Bad Credit Mortgage Financing – Can You Get Approved?
Many people have credit that is less than perfect. Fortunately, lenders are now much more lenient when it comes to bad credit loans than they once were. Even if you have bad credit, you may still be eligible for 100% mortgage financing. Here are some tips that may help you get approved:
Contact Online Mortgage Lenders
Online mortgage lenders that specialize in bad credit can often help by providing you with loan offers from more than one lender. This will ensure that you get the best interest rate and loan terms possible.
The lending industry is very competitive. Lenders are always looking for new customers. No matter how bad your credit is, you will be able to find someone who is willing to give you a 100% mortgage financing.
Check Your Credit Report
Your bad credit may not be your fault. Mistakes can sometimes happen. Get a free credit report online to see exactly what items are counting against you. If you notice any discrepancies, dispute them immediately.
You may also want to check for old negatives. If you dispute these negative items, you may be able to get them removed from your credit report. Sometimes collection agencies have moved your information around so much that the records are a mess. They may not even make an effort to challenge your dispute.
Cleaning up your credit report can quickly improve your credit, which will in turn increase your chances of getting a mortgage that has low rates and reasonable loan terms. For more information, or a list of mortgage loan providers, visit www.abcloanguide.com.
Watch Interest Rates
Interest rates are constantly changing. These rates affect the lending industry in a variety of ways. Watch interest rates to determine when the best time is to apply for a loan. When interest rates are low, it will increase your chances of getting 100% bad credit mortgage loans that have terms you can afford.
Mis-Sold Payment Protection Insurance – How to Reclaim PPI When Mis-Sold on a Loan Or Credit Card
Loan insurance also known as Payment Protection Insurance is designed to make your monthly loan repayments in case you are unable, due to accident sickness or redundancy. But customers mis-sold their PPI could have debts written off and the insurance refunded.
It is estimated 85% of customers take out loan protection insurance when purchasing a loan, credit card or a mortgage for redundancy insurance or critical illness cover.
However, many customers have purchased loans without realising that payment protection is attached, or have been mis-sold credit cover with their loans, resulting in paying unnecessary insurance.
How can mis-sold Payment Protection Insurance help Write off Debt
Borrowers could get their credit card debts written off due to being mis-sold credit card loans with payment protection which was unnecessary or not asked for.
In a recent UK court ruling, MBNA failed to sue a customer for non-payment of a premium because the judge ruled the lender had breached the Consumer Credit Act when selling PPI without her knowledge. MBNA could not produce a signed copy of the credit agreement to prove it was an enforceable credit agreement. Having miss-sold the loan insurance, the loan was written off.
How to reclaim PPI Insurance and save money
The following points may help consumers ensure they dont purchase unnecessary payment loan insurance or from being mis-sold this cover.
It’s important to note that the interest rate also known as the APR of a loan does not include the cost of payment protection. A consumer should check the cost of the cover alone and work out if it is necessary and seek out more competitive quotes. Sometimes insurance can be purchased seperately at a fraction of the cost. If you are unhappy with the cost of the loan insurance or were not aware it had been added to your loan, you should be able to cancel the agreement. Although some lenders will allow the loan to continue with the PPI removed, others may charge an admin fee. Some consumers may already be covered by another policy without realising, meaning they could be paying for unnecessary cover. Most importantly, check that the policy cover is appropriate to the consumer’s circumstances.
Mis-selling checklist
If you think you have been mis-sold payment protection with the loan, the following points will help in reclaiming the cost:
Was it made clear that the insurance was optional? Were you told about any exclusions under the policy – e.g. the exclusion that says you won’t be covered for any pre-existing medical condition? When you took out the loan agreement, were you made aware that you would have to pay for the insurance up front in one single payment? If you had to pay for the PPI as a single payment, was it made clear that the cost of the insurance would be added to the loan and you would be paying interest on it? Single premium PPI insurance normally only lasts for 5 years. If your loan was for longer than this, was it made clear that the insurance would run out before you had finished paying for your loan? Were you told that you would continue to pay interest on the insurance premium, even after the insurance expired?
Inappropriate Loan Protection Insurance
If any of these apply to you, you have grounds to reclaim the cost of the Payment Protection Insurance and have the loan or credit card written off.
You can do this yourself but many consumers put off by the banks responses. There are companies who can reclaim the PPI for you saving you the time and effort of doing it yourself. They will take the case to the ombudsman and to court if needed. If you have been refused or are having difficulty it is well worth contacting one such as Credit Issues.