Insurance information

There are many different types of packages when it/a> comes/a> to/a> home insurance and it can be difficult to choose which type of cover/a> and package to go for. Insurance can cover fire, theft and even liability, however there are many exclusions within policies and you/a> should make sure that/a> you read the small print. To help you here are some tips to get you started.

Make sure that you correctly value the contents of your home. If you are going for a new for old policy then/a> make sure that you value your items at the price it would cost you to buy those items now, not how much you paid for them when you bought them.

If you have expensive items such as computer/a> equipment, mountain bikes or family heirlooms then these won’t usually be included in the cover so don’t automatically think that they are, these will have to be added on as extras to your policy.

You can get cheaper insurance by making sure that your home is secure. Installing mortise locks and deadlocks can cut down the cost of your premiums as can installing security lighting/a> around the outside/a> of your home. It is worthwhile checking the small print of your policy because some policies state/a> that these have to be in place and if not then your claim might not be paid.

Make sure that you keep written documentation of the value of the items in your home and whenever/a> you make new purchases add them to the list to keep it up to date. It can be surprising how things mount up if you don’t care and you could soon find you have greatly/a> underestimated the value of your possessions.

When looking to purchase your policy you should always shop around for the best deal. When it comes to buying insurance you can get the cheapest premiums online.

Doing a simple search from/a> one of the popular search engines will reveal hundreds of online insurance companies all competing to give you the best deal.

Jason Hulott is Business Development Director of Protection Insurance (http://www.protection-insurance.com/a>). Protection Insurance is an internet based insurance business dedicated/a> to getting consumers the very best insurance rates and the best products.

Don’t spend your hard-earned money on a van unless you’ve sat down and/a> worked out how much you can afford./a> Spending more money than you’ve got could get you and your business into financial/a> difficulty, and your capital could be better spent on stock/a> or/a> additional employees.

How do I put a budget/a> together?

Your budget for a commercial vehicle doesn’t have to/a> be complicated. You don’t need an in-depth spreadsheet or help from/a> an accountant. Instead, just write down the costs/a> and expenses associated with owning a van. Once you’ve broken those costs down, you can see what the initial cost will be and how much the running costs are going to add up to over time.

? Price - The cost of/a> your van, including taxes, is/a> your single biggest outlay. Before you decide how much you need to spend, take a look at the types of vans on the market and how much they cost. You could find/a> that you can buy a smaller, less expensive van than you thought, or that the fitted panel van you need will cost more than you have. A/a> little bit of research enables you to put a realistic figure on this major expense.

? Insurance - you must be insured to drive your van or truck. Insurance costs will vary depending on the type of work/a> you do, the type of vehicle you buy and the number of people who will be driving. To get an idea of cost, get some quotes online, using the type of van you think you might be buying. Don’t forget that this is an annual cost.

? Running costs - fuel is an ongoing running cost. Whether your van is petrol, diesel or powered by/a> another fuel, there will be cost implications. Again, these are dependent on the type of vehicle you have and the number of miles you do: the more you travel, the more fuel you need. As prices continue to rise, this is an important financial consideration.

? Servicing - you will need to ensure that your van is running smoothly and that it’s not likely to breakdown when you least expect it. A 12 month service will have a fixed cost, but expect to pay extra for parts if anything goes wrong.

Take the time to get your budget right and you could be on the road with your new van and a healthy bank balance.

VanMart is a dedicated website offering listings of used vans for sale or lease across the UK. Visit our site now by clicking on http://www.vanmart.net/a>

PMI - a recurring, monthly, unwelcome guest. It sounds similar to and is about as/a> welcomed as a similar acronym. PMI is private mortgage insurance. This insurance policy is paid for/a> by the homebuyer when the amount of their primary mortgage is greater than 80% of the value of the property.

You will note that/a> the term “primary mortgage” was used. This is for a specific reason. It is not the total of all mortgages and home loans on the property that is evaluated, but/a> rather the amount of the primary or largest mortgage on the property that can trigger PMI.

PMI is calculated by taking/a> 0.5% of your primary loan balance and dividing it by 12 (12 monthly payments). For example, if your primary mortgage is $200,000 and you are/a> required to pay PMI,/a> your mortgage payments would be an additional $83.34 per month. For most homebuyers, this additional premium is a considerable financial burden to undertake.

There are ways around PMI for those homebuyers unable to put down 20% or more on their new home. Mortgage lenders have created loan packages which include two or more home loans that when combined exceed the 80% threshold, while no one of the loans exceed that threshold. Typically there is a primary mortgage and either one or two home equity loans taken out simultaneously which are 81% - 100% (or sometimes more) of the home value. This affords the homebuyer to put less than 20% down, or perhaps/a> put nothing down at/a> all while at the same time eliminating the need to pay PMI.

If you know you are going to be putting less than 20% down on the purchase of your home you should immediately speak to your home lender about avoiding PMI. A good home lender will inform you about these types/a> of packages. Though the rules on these packages may differ from state to state, the vast majority of states allow for these types of loan packages.

When you review this type of package you will note that there will invariably be a different interest/a> rate on the mortgage than there is on the home equity loan(s). The mortgage rate may have a slightly/a> lower interest rate or perhaps even a considerably lower interest rate. You should be able to calculate what the monthly payments would be for the combined loans and then determine if it comes out less than a single mortgage with PMI. Obviously, a good lender is only/a> going to present you the package if the payments are cheaper than a single loan with PMI.

You are able to refinance the loans at any point and combine them into one payment. You would only do this when the value of the home is more than 20% above of the amount you will mortgage. As the value of your home increases through home improvements or time, you can receive an appraisal and speak to your home loan professional to determine if refinancing the loans into one loan makes sense.

These types of loans are often referred to as 80-10-10 loans or 80-15 loans, among other names. An 80-10-10 loan is a mortgage at 80% of the amount to be financed and than two home equity loans at 10% each. You will likely find that all three loans will have a different interest rate with this type of package. 80-15 loans are similar but would be the main loan at 80% and a secondary loan at 15% with the buyer putting down the additional 5%.

It is important to note that when financing 90% - 100% of a home, or more, the appraisal will play a key role in the loan approval process. If the appraisal does not come out at a pre-determined amount, the lender may feel that the transaction/a> is not a sound one. You may need to go back and renegotiate the purchase price of the home or run the risk of being denied the mortgage. Most real estate contracts, however, do have a clause in them that allows the buyer out of the contract if they are denied a mortgage. You will want to speak to the lawyers and real estate agent in advance if you are planning for applying for this type of loan. Some contingency clauses in contracts specify a maximum percentage of a loan you need to qualify for and if you are denied for a loan at a higher percentage you are not protected by this clause.

It is important for you to have all of this information/a> in place before you start your home search. By knowing how your financing is going to be handled you will be able to make sure you are protected in the transaction and you will also be able to negotiate a better deal since your financing has been completed or is close to being completed. The key is knowing in advance what percentage of the value of the home you are able to and willing to put down on your new home.

Max Hunter is the author of many credit related articles. If you are looking for help with Home Loans or any type of credit issue please visit us at http://www.homeloanave.com/a>

In ‘Every Thing You Need to/a> Know about/a> Individual Health Insurance Plans (Part I)’, we began our discussion of individual health insurance plans/a> by talking about indemnity plans. We then/a> started a discussion about managed health care plans. We now continue that discussion…

A Health Maintenance Organization (HMO) plan is less expensive than a PPO/a> and generally includes coverage for preventative care. Participants are required to pay a monthly premium, and a nominal co-payment each time/a> they see/a> a doctor. They must be/a> seen by medical care providers that are part of the/a> HMO network. These medical care providers have an agreement with the insurance company to perform various medical procedures at a previously negotiated and reduced rate. Participants are required to select from this group of providers a Primary Care Physician (PCP) and must always see their PCP first. To be seen by a specialist, the PCP must initiate a referral.

The disadvantage of an HMO is that participants/a> are forced to choose a PCP from the HMOs approved list of providers and sometimes, their ‘preferred’ doctor is not on the list. The HMO typically won’t cover the costs of medical care provided by professionals outside the HMO network. And because an HMO network is limited in size, it often takes a long time to get an appointment with the PCP.

A Preferred Provider/a> Organizations (PPO) is similar to a HMO, except that there is no need to first be seen by a PCP. Participants are advised to choose a medical professional from the PPO’s/a> approved ‘network’ but they don’t have to and they don’t need a referral to see a specialist. Should a participant choose to go outside the network, their co-payment will generally be higher, the percentage that the PPO pays for the medical care will be lower, and they will likely have to satisfy a deductible. PPO plans have become the most popular individual health insurance plan in the U.S. today.

Although PPOs offer more freedom of choice, there are generally more costs involved in this type of managed care plan. These costs can be significant when participants go outside the network.

A POS or Point of Service managed care plan can be described as a cross between a HMO and PPO. It offers more freedom of choice like/a> a PPO, and a lower cost like an HMO. Participants must designate a PCP, but even/a> then it is difficult to get a referral to a specialist. When participants stay within the network, paperwork is minimal, and so are co-pays. Plus, there are no deductibles. Although they might sound like the best of both worlds, POS individual health insurance plans aren’t very popular.

When considering a managed care plan, be sure to look closely at the list of in-network doctors. If you don’t see your doctor listed, you may want to forego this option. Of course, if your health care is primarily yearly check-ups and the occasional antibiotics, and you do not have a physician preference, then this is an individual health insurance plan that could work for you. It will cover health emergencies, as well; there are just more hoops you have to jump through.

The many different types of available individual health insurance plans, as well as individual health insurance coverage, give you many options from which to choose when selecting coverage. Be sure to do your homework; becoming an educated consumer will help you decide on the best individual health insurance plan for you and your family.

Jonathon James has been working in the health industry for nearly twenty years./a> To view additional articles and resources related to individual health insurance plans, please visit http://LearningAboutHealthInsurance.com/a>.

1) The government can’t run anything. I don’t trust the/a> government.

The current gang in/a> Washington may be a good reason not to trust the government to do/a> ANYTHING right.

However, Medicare and Social Security are good examples of/a> systems that/a> run well and on time. People receive their/a> checks the same time every month and health/a> care/a> is provided: on time.

2) I’m a free market person and don’t want any part of “socialized medicine.”

Single Payer Insurance is defined as a single government fund with each state which pays hospitals, physicians and other health/a> care providers, thus replacing the current multi-payer system of private insurance companies.

It would provide coverage for the fifty million people who/a> are uninsured.

It would eliminate the financial threat and impaired access to care for tens of millions who do not have coverage and are unable to afford the out-of-pocket expenses because of deficiencies in their insurance plans.

It would return to the patient free choice of health/a> care provider and hospitals, not the choice that only the restrictive health plans allow.

It would relieve businesses of the administrative hassle and expense of maintaining a health benefits program.

It would remove from the health care equation the middleman-the managed care industry-that has broken the traditional doctor-patient relationship, while diverting outrageous amounts of patient care dollars to their own coffers.

It would control health care inflation through constructive mechanisms of cost containment that improve allocation of our health care resources, rather than controlling costs through an impersonal business ethic that robs patients of care so as to increase profits for the privileged few. Single Payer Universal Health Care would provide access to high quality care for everyone at affordable prices.

3) Canadians have long waiting periods and come to the U.S. for their health care needs. Therefore, such a plan would make for waiting periods in the U.S.

First of all, ask almost any Canadian if they would trade our system for theirs. The answer is a resounding “NO.”

They may have to wait for elective surgeries, for instance,/a> but we have to wait for these kinds of surgeries, as well.

Canadians have the option to buy extra coverage to get heroic measures covered, say in the case of Cancer treatment.

At 9% of their GDP, they are spending much/a> less than we are as a nation. We, the wealthiest nation on earth, spend 14 % of our GDP.

4) Our country cannot afford to insure everyone.

Our country already has enough funds dedicated to health care to provide the highest quality of care for everyone. Studies have shown that under a single payer system, comprehensive care can be provided for everyone without spending any more funds than are now being spent.

Not only do we have more than sufficient funds, we are also a nation that is infamous for our excess health care capacity. Typical of these excesses is the fact that there are more MRI scanners in Orange County, CA than in all of Canada.

With our generous funding and the tremendous capacity of our health care delivery system, the delays would not be a significant limiting factor in the U.S.

5) Americans do not want “Socialized Medicine.”

Socialized medicine is a system in which the government owns the facilities, and the providers of care are government employees.

In sharp contrast, a single payer system uses the existing private and public sector health care delivery systems, preserving private ownership and employment. The unique feature of a single payer system is that all health care risks are placed in a universal risk pool, covering everyone. The pool is funded in a fair and equitable manner so that everyone pays their fair share in taxes, unlike our current defective system in which some pay far too much while others are not paying their share. The funds are allocated through a publicly administered program resulting in optimum use of our health care dollars.

A single payer system has no more in common with socialized medicine than our current Medicare program.

Socialism is a dirty word in this country. Universal health care for all has been equated with socialism, and much propaganda has been communicated by the press, by right wing politicians, by medical groups such as the AMA or anyone else who has an agenda to keep the 1500 plus health insurance companies a thriving market with profits that undoubtedly help to pay for their agendas.

6) A Universal Single-Payer would lower the standard of care to a level of mediocrity for everyone, preventing the affluent from exercising his or her option to obtain the highest level of care.

Our current system is characterized by essentially two alternatives: either/a> no insurance with severely impaired access to even a mediocre level of care, or being insured by a managed care industry that has whittled down what is available until mediocrity has become the standard of care. Only the relatively affluent have access to unlimited care.

The generous level of funds that we have already dedicated to health care, adding to this a more efficient administration with an exclusive mission of optimum patient care well above the mediocrity that we now have, lays/a> the foundation for a universal health care system in America.

A single payer system does not preclude the affluent from paying, outside the system, for a penthouse suite in the hospital, or for cosmetic surgery or for any other service that would not be part of a publicly funded program.

But if Americans knew the truth, and would turn off their TVs and use that time instead to change this country, using the power of grassroots politics, to make a single payer universal system a reality for all, then we would finally have the best health care system in the world.

Any group with the passion to change the world, one issue at a time, with a loving intent, can do it.

Kate Loving Shenk is a writer, healer, musician and the creator of the e-book called “Transform Your Nursing Career and Discover Your Calling and Destiny.” Click here to find out how to order the e-book: http://www.nursingcareertransformation.com/a> Check Out Kate’s Blog: http://www.nursehealers.typepad.com/a>

As you graduate/a> college and/a> head into the great, big,/a> scary world, there are probably a/a> lot of/a> things on your/a> mind. First and foremost is finding a/a> good job, then finding a place to live, and then maybe figuring out/a> how to pay back those student loans. One thing that might not cross your mind is health insurance. All of your life, you’ve most likely been a dependent on your parents’ coverage, but that ship is about to sail-if it/a> hasn’t already.

We know what you’re thinking, “Why do I need/a> health insurance? I’m young, I’m healthy, and doctor visits are few and far between. So why pay for something I’ll never use?” Hey, we understand where you’re coming from. But accidents and illnesses happen/a> without warning, even to the strapping young adults such as you. Sure, health insurance is expensive, but not having it will cost you dearly.

First things to know

Let’s get one thing straight, health care in the United States is a nightmare, few will argue that. There are thousands of options when it comes/a> to receiving care and paying for it, some of them good, some of them not so much. When it comes to choosing an insurance policy that’s right/a> for you, confusion abounds. So let’s learn a little more about your options.

There are two essential categories of health insurance: managed care and indemnity plans. Though you’ll pay more for indemnity coverage, it offers much more flexibility than/a> does a managed care plan. Through indemnity coverage, you’ll have your choice of doctor, lab, hospital or specialty clinic. When you seek/a> medical care, you’ll have to pay an out of pocket expense-called a deductible-before your coverage will kick in. Deductibles range from a few hundred dollars up to $1,000 or more, depending on your policy. Also, indemnity plans require a co-payment on medical care

Joseph Kenny writes for the UK Loan Store, with some great loan offers and more information on bad credit loans available on site.

Structured settlements are financial agreements allowing compensation to be/a> paid through an/a> annuity in regularly scheduled payments, for either a fixed period of/a> time/a> or for the life of/a> the claimant. Since it is suitable for individual plaintiffs, the structured/a> settlement may also include an up front/a> payment to cover any contingency.

Structured settlement payments are normally funded by annuities. These annuities are established to protect recipients of legal awards, insurance settlements,/a> and/a> lottery winnings. A great percentage of structured settlements are prearranged to provide for long term care and living expenses of plaintiffs who have been injured and are unable/a> to work.

Structured settlements have not/a> always been accessible. The/a> Periodic Payment Settlement Act of 1982 was enacted to make large awards more agreeable to all parties and protect claimants. It also affords the insurance company and the plaintiff certain tax advantages.

Some situations are well suited for a structured settlement. For example: Cases that involve catastrophic injuries Wrongful death lawsuits that include replacing the lost income of the deceased Disabilities, either permanent or those requiring extensive recovery time Workers Compensation cases Gambling and lottery winnings

Many people choose a structured settlement over a lump sum payment, and courts often award them in civil actions where there are long term living and health care expenses. The anticipated need of cash at some future date is taken into account when setting up a structured settlement agreement.

Structured settlements can be established in a number of ways, according to the needs of the damaged party. The most basic structured settlements provide regular periodic payments for the life of the agreement; for example, a fixed payment every month for 10 years. Structured settlements do not pay interest, so anticipated gains in the underlying annuity are factored into the amount of the periodic payments and are non-taxable.

Claimants choose structured settlement agreements over lump sum awards for a number of reasons. The idea of guaranteed regular payments offers a feeling of security for many people who have been injured and are unable to earn a steady/a> income. Instead of having to worry about how to invest a large cash award, the details are handled by the attorneys and the insurance company.

An important benefit of a structured settlement agreement is that it is tax free. The tax consequences of receiving a lump sum of cash can be staggering, turning what seemed like a fortune into an amount that may not meet future living expenses. A structured settlement relieves the claimant of the responsibility of planning a tax shelter for their award.

Because of the many benefits structured settlements offer both plaintiffs and defendants, the case can often be settled out of court, saving both parties a great deal of expense. Since the agreement is beneficial to both parties, the process is usually completed quickly, and there is no time lost to a prolonged battle in court.

There are some cases for which structured settlements are not suitable. An award for a minor injury sustained in an accident would probably not warrant the use of a structured settlement. In situations where extended hospitalization or long term treatment is not necessary, a lump sum award may be sufficient to provide for the needs of the damaged party.

Once a structured settlement agreement is enacted, the terms are fixed, and there is no allowance made for unanticipated circumstances. This is one reason many people choose to sell their structured settlement payments./a> Life situations change, and people may decide to buy a different home, start a business, or return to school and train for a new career. A lump sum of cash offers greater flexibility and more control over the money than a structured settlement.

Perhaps the most persuasive argument for selling structured settlement payments is that over time, inflation can severely erode the value of the periodic payments. A dollar today is worth more than the same dollar in the future. A lump sum of cash properly invested today could surpass the future value of a structured settlement.

When selling your structured settlement payments, you can choose to cash in only a portion of your future payments. This option offers immediate cash, while preserving some of the long term security of a structured settlement. If you decide to cash in a structured settlement, sell only the portion of your future payments necessary to meet your financial need.

Finally, you should carefully choose a structured settlement buyer that has been in business for at least several years. Check out potential buyers with the Better Business Bureau, and do some research to determine if past customers have been pleased with the company’s services. Doing the research now will insure that you get the most cash for your structured settlement.

Gregg Pennington writes articles on a number of topics including/a> structured settlements and selling structured settlement payments. For more information and resources related to structured settlements visit http://www.onlinemoneysources.net/structured-settlements.html/a>

There are basically two different types of passive/a> residual income. There is/a> a third that/a> is not/a> really passive income/a> that is also great strategy for/a> earning more money while having/a> to do less work. It is a great way to keep your cash flow up and not having to lose your mind due to work stresses. Residual income is money you earn revenue that occurs over time and some of the types of passive residual income include:

? An insurance agent who/a> gets repeated commission every year when a customer renews his policy

? A network marketing or direct sales rep will earn income from her direct customers when they reorder a specific product every month

? An instructor who produces a video as such and sells it where they teach

? A marketing consultant who creates a workbook and sells it as an e-book

? A photographer/author who makes his photos available through a stock photography clearinghouse and gets paid a royalty whenever someone buys something they’ve done/a>

? A restaurant or retail owner who hires a manager

As you can/a> see, there are many different ways that you can generate passive residual income across a wide variety of businesses. You can get repeat income from the same customers, or the sales of a product to new customers. The best part is that you that may never have to repeat the initial work involved in getting stated and still earn money. Most of time the repeat work that you have to do can be done by an assistant or secretary. You can also take advantage of personal development affiliate programs like SkyQuestCom or Success University

You should know that passive residual income is not just repeat money earned. Recurring income may still require your involvement in order to get the income such as if you are a coach or consultant on a monthly retainer, or a caterer who delivers. While this can take some time out of your time it is necessary. Leveraged income basically takes the work of other people to create income for you. Some/a> examples of leveraged/a> income include:

? An e-book author who sells the e-book through affiliates who promote the product for them

? A network marketer who builds a down line and receives commissions on the sales made by those that are in it

? A general contractor who makes a profit margin on the work that sub-contractors do

? Franchising your business to other entrepreneurs which is where the real money is at

You should note that leveraged income may or may not also be residual income.

Take an online tour of today’s/a> affiliate market to see if this is the right opportunity for you.

http://www.greatwebucation.com/a>

Chu Ern Teng/a> is the owner of http://www.greatwebucation.com/a> . He aspires to create awareness on Webucation/a> to help others to achieve financial freedom through these programs.

Keeping a pet is a rewarding experience which many of us enjoy, but/a> it can also be/a> expensive. As well as all the routine costs such as food and/a> grooming, you/a> can also come up against unplanned/a> expenses such as vetinary bills through sickness or accident. These bills can unfortunately be very/a> high,/a> so to/a> ensure that/a> their pets can get the treatment they need many people decide that taking out pet insurance is a sensible way of helping to cushion these costs. But what should you be looking for in a pet insurance policy?

The first thing to consider is what kind of pet you have. The cheapest kind of pet insurance is that for the most common pets - cats and dogs. Prices for these policies can be very reasonable indeed, amounting to only the cost of a few tins of pet food a month. If, however, you keep a more unusual kind of animal as a pet,/a> then the price you pay may/a> well be higher. Make sure that any policy you take out specifically includes your/a> kind of pet, as many will exclude more ‘exotic’ kinds of animal.

The main reason for considering pet insurance is cover for medical treatment, but there are some exclusions that you need to be aware of. Firstly, your policy will almost certainly not cover routine treatments such as vaccinations, flea control, or worming. Secondly, you won’t be covered for any pre-existing conditions that were already/a> known about when you took out the policy (you should also declare any existing conditions when you take out the policy, or you risk it being declared invalid when you come to make a claim).

You also need to check your policy for claim limits: there may be a time limit of cover, so for example a long-term condition such as arthritis may only be covered for a period of 12 months, after which you will be responsible for meeting the bills. There is also usually a limit to the total cost of medical bill claims/a> you make in any one year, but this is usually high enough to cover almost any conceivable situation.

Another major reason for taking out insurance is to help you cover the costs of getting your pet back if it goes missing. Most policies will contribute towards advertising in local newspapers etcetera, and also to providing reward money for the safe return of your pet.

Another very important part of your insurance cover is public liability, especially for dog owners. Even the calmest and most well behaved of pets could possibly cause damage to someone’s property, or even cause an injury to a person. In this thankfully rare event, you could be open to huge legal bills and compensation claims - make sure that your policy includes a substantial amount of third party liability cover as standard.

Finally, check whether the policy you’re considering places a limit on the age of your pet. Many policies are only available to, for example, cats up until the age of eight years. As it is in later years/a> that your pet is most likely to need treatment, it obviously makes sense to ensure your policy will cover this, especially if your pet has a few years under their belt!

Nicholas Hunt is a writer for http://www.1stop-finance.co.uk//a> and you can read more about pet insurance at http://www.1stop-finance.co.uk/insurance/pet_insurance//a>.

ave You Given Any Thought To Small Business Life Insurance?

What Type Of Business Do You Own?

Is your business/a> a/a> Sole Proprietorship?

Are you part of a business Partnership?

Is your business an S Corporation?

What about a C Corporation? Is this how you incorporated?

Have you taken advantage of the/a> new Limited Liability Company laws?

How about Key Employees? Do you have any employees that you can categorize them as Key Employees?

Small business life/a> insurance as it applies to/a> each/a> type of business is different in/a> many ways but there are also many similar features as well. What we are discussing here is not group life insurance but more specifically life insurance as it applies to the/a> owners of each business and/a> life insurance for/a> the key/a> employees. Let us take a look at each type of business and how life insurance could go a long way in protecting the business itself as well as the heirs of a deceased business owner.

The Sole Proprietorship.

Because the owner of a sole proprietorship and the business itself is considered one and the same one may think that the need for small business life insurance is limited. Nothing could be further from the truth. We put in a lot of time and effort building a business that has/a> to be dissolved at our death. We do want to have this business transferred to a member of the family when we die. How can this be done?

The estate of the sole proprietor can sell the assets of the business upon his or her death. A small business life insurance policy/a> can be bought during the lifetime of the owner the proceeds/a> of which would be used to buy the business. A buy sell agreement, which would be binding, would determine the terms and the amount to be paid for the business.

Let us assume the proprietor is married and has a son or daughter who is interested in taking over the business upon his death. This young person has spent a lot of time learning the intricacies of operating the business from his or her father. So dad decides he wants to transfer this business to this child upon his death. He has a buy sell agreement drawn up by an attorney that would fulfill his desires. This agreement is funded buy a small business life insurance policy specially bought for that purpose.

The proprietors wife is not particularly interested in the business but if the business owner dies before her she will still need income. The proprietor dies. The proceeds of the small business life insurance policy is used to purchase the business from the estate and the wife has full value in cash. She can use this money to purchase an annuity that would pay her an income for a certain number of years or for a lifetime. Of course this decision will depend on the amount of money we are talking about here.

The Partnership.

The use of small business life insurance in a partnership is very simple and straightforward. The ownership of this partnership is in the hands of three partners. For the sake of easy explanation let us assume that that these partners own equal shares. A buy sell agreement would be set up that would state that the partnership would buy the shares of a deceased partner from his heirs. The buy sell agreement would be binding. The heirs cannot decide they don’t want to sell. The partnership would buy a small business life insurance policy on the lives of each of the partners in the amount of the value of their shares. The proceeds would be used to fund the purchase. In some cases the policies can be owned by the partners themselves. The results are the same.

The Corporations.

Small business life insurance for c corporations, s corporations are limited liability companies is very similar to that of the partnership. The corporation usually owns the policies on the lives of the principals. Upon the death of a stockholder the corporation buys the stock from the heirs of the deceased. A small business life insurance policy is the least expensive way to fund the buy sell agreement. It is recommended that the insurance is updated on a regular basis and that the buy sell agreement is reviewed and updated from time to time…as it is binding.

Key Employee Life Insurance.

What state would your business be in if a key employee died? Have you given this any thought? In my 40 years in the life insurance business I have seen many interesting situations. Some businesses had no key employee life insurance on their valuable employees…much to their detriment. Others were prepared and things continued on smoothly after the death of the key employee. It is recommended that if a business has a very valuable key employee that they buy a small business life insurance policy on the life of that employee equal to about 5 years of that employees income. Upon his or her beath the proceeds of the policy is paid to the business and used to help keep the business going while the company finds a capable replacement.

For more detail on how to start a business and the need for business life insurance go to: http://www.lifeinsurancehub.net/businesslifeinsurance.html/a>
Donald Lusan