By financen | December 12, 2019 - 4:57 am - Posted in Banking

If a visitor were to tell you that you could be your own bank, what do you picture? Perhaps you envision building a new bank in your yard. Or, maybe you imagine pulling money from a newly acquired money tree in your garden.

When it comes to increasing your savings and investing in your future, high amounts of debt, or the need to purchase something substantial, like a new roof, can stand in the way. And turning to the bank for assistance is not always a viable option.

That’s where bank on yourself insurance companies come in. They offer a different solution to financial security. But what is it? Does it work? Find the answers below.

What exactly does the term bank on yourself mean?

Bank on yourself is a financial strategy that has recently been re-popularized by Pamela Yellen. Though her book is becoming a widely contested published work, she is not the first person to pitch it. This idea has a goal to use your assets to finance purchases, rather than a loan from a bank while growing your wealth in the process.

When you use a bank on yourself strategy, you use the cash value of your whole life insurance policy to make your large purchase. It is important to note, and something Pamela and her successors say as well, that the policy must be a participating whole life insurance policy. Not all companies and policies work in this scenario.

Your unusual whole life insurance policy will need to have a rider added that allows you to borrow the cash value, essentially becoming your own bank.

Why would people consider this?

This method for saving and growing wealth is appealing to many people because:

  1. You avoid finance charges that a bank would charge
  2. The loan is usually private between you and your insurance carrier, meaning it won’t appear on your credit report
  3. You typically have flexible options to paying back the amount, instead of a set payback schedule that banks require

Is it a good idea?

Though bank on yourself insurance companies pitch this method as a great option for everyone, it has its own caveats. It is built on the premise that insurance carriers pay out more dividends than they collect, which usually is not the case.

Another downside to this type of financing is that it can only be made with certain carriers, limiting your options.

So, what should I do to take control of my finances?

Working to take control of your financial future is an important goal. When you have no savings and high amounts of debt, it may seem like something like a bank on yourself loan is your best option.

However, there may be more options out there than you think.

Meeting with a financial planner or a financial consulting firm can help. They’ll meet with you and discuss your future goals. Then, they create a plan to help you achieve them, setting you up for financial security and increased wealth in the future. This alternative gives you the power to make the best choice for you.

Comments Off on Bank on Yourself Insurance Companies: Scam or Saving Grace?

There are more than 900 insurance companies in America that offer health plans. With those numbers, it can be tricky to find one that is right for you. Just like any industry, there will be some agents who are not interested in your welfare as much as they are with their commission.

Before you even try to look for “insurance agents near me,” ask yourself the following questions:

  • How healthy are you?
  • Do you have a chronic condition that prevents you from leading a healthy lifestyle?
  • Are you taking maintenance medication?
  • How often do you visit a doctor in a year?
  • How much can you budget on your health insurance?
  • What are your preferences when it comes to health coverage?
  • Do you have company health insurance? How much does it cover?

Answering those questions will give you a reasonably good idea of the type of insurance that is right for you.

Ultimately, you may select one of the following:

Traditional plans — These are health insurance coverage that will take care of most expenses when you get hospitalized. It is crucial since the average American spends almost $4,000 for each day of hospital stay. The insurance company will shoulder the cost after deductibles and out-of-pocket payments. In most instances, you only pay 20% of the total expenses.

Disability Plans — Disability insurance will cover the cost in case you miss time off work due to an injury. It will also repay you if you have a long-term disability and could no longer gain employment.

High-deductible plans — They demand a lower premium, but you do need to pay higher deductibles. Talk to your insurance agent if this is the best plan for your situation.

Managed care — Health maintenance organizations and preferred provider organizations are among the entities included in this plan. You may pay a lower premium and, in some instances, it does not require a co-pay cost. However, you cannot choose your doctors since physicians only recognized it within the closed network.

Conversely, before you type “insurance agents near me,” on the Google search bar, prepare your questions first. In that way, you do not forget anything when it is time to talk to the agent:

How much is the premium, and who is entitled to get the benefits? What are the medical services included in your plan?

What type of plan is ideal for your situation? What can they recommend? Is the fee-for-service ideal when it comes to your budget, or should you consider a managed plan? What are the pros and cons of each service?

Which is better for you, a deductible or a co-pay? What are the advantages and disadvantages of each option?

Will your insurance cover the medical costs for your spouse or children? What if your children are already of age or if they move out of the house? What if they already have a job?

Can you use my insurance for regular medical check-ups? What about maintenance medication, do you get reimbursements?

What about if you have a pre-existing condition?

Do you need to call the doctor for an appointment, or you can walk in for a check-up?

What if you are on a trip overseas and you are in a medical emergency, can you use your insurance then?

These are some of the questions you ask your agent. Of course, it is best to do your due diligence and go online.

Comments Off on Questions to Ask Before You Choose Your Health Insurance Agent
By financen | September 24, 2019 - 6:21 pm - Posted in Insurance, Key Person Insurance

In 2017, the USA had nearly 6,000 insurance companies throughout the states, which makes it one of the largest markets alongside China and Japan. Albeit being one of the biggest insurance providers in the world, the discussion on life insurance policies in the USA is still met with a great divide. Some Americans think it is essential and there are still so many who think otherwise.

However, insurance policies not only cover a person’s health, but even businesses use insurance policies to protect the interest of the company and its employees. Such is the function of what is known as Key Person Life Insurance Policy.

What Is Key Person Insurance, and how does the Policy Work?

This insurance policy mainly focuses on the company’s interest by protecting vital employees. Most of the time, business owners are covered under this insurance policy. These key employees are given insurance for the time when they are unable to work for the company. This includes cases of death alongside other factors, and the necessary funds are shelled out by the policy to avoid loss.

The crucial step in this policy is the determination and selection of who should be the “key person.” Companies usually elect the owners, but there are also instances where high-level employees are selected. 

The company then pays the insurance of what is commonly known as “premium.” This premium serves as coverage for liabilities that may be incurred by the company in case of the key person’s death.

Unlike standard insurance policies, with a Key Person Life Insurance Policy, the company is the beneficiary which will receive the necessary funds. 

How a Key Person Insurance Helps Businesses

There is a reason why many companies opt to employ this type of insurance policy. While a business does good when the team functions well, employees who play a huge factor in keeping the company afloat are usually regarded as highly-valued.

As such, by protecting these employees, the company has a safety net to fall on, in case there are losses and liabilities incurred from an untimely death. 

For example, a high-level employee is a top-performing salesman who can close huge accounts. When he is covered under this policy, upon his death, the company’s loss in profit can be compensated through the plan. This will cushion the company’s loss caused by the early demise of a top salesman. 

Selecting the Key Person to Put under This Insurance Coverage

There are many factors to consider in selecting a key person. The following criteria should be considered.

  • If the work that they do is directly equivalent to the profit earned by the company.
  • If finding a replacement would be difficult or nearly impossible.
  • If the work provided by the employee is highly in-demand.

It is in every business’ interest to reduce loss and earn revenue as much as possible. That is why individual employees should be covered under this policy to protect the company’s benefit. Insurance policies are certainly one of the best ways to make business management less taxing and complicated. 

Comments Off on What is Key Person Insurance and Who Needs It
By financen | September 3, 2019 - 4:47 am - Posted in Insurance, Life Insurance

Contrary to popular belief, you don’t need to start thinking about life insurance only when you are old. In fact, you should start thinking about life insurance much early on in your life. There are various types of policies available today that can you choose from. Life insurance is a financial product that is based on the consideration that no one knows what the future holds, and thus, being financially insured ensures the financial well-being of your dependents.

You wouldn’t want your family members and dependents to be in any kind of financial constraints in case something happens to you. If you are the only earning member in your family, then it only becomes more important for you to have an insurance policy with sufficient coverage for your dependents. Here are the few reasons why you need to buy a life insurance policy today:

Providing for your family

If your family is dependent on you financially, it is vital for you to be insured. It would mean that in case of your demise, your family would get sufficient finances to move on in their daily lives without any immediate financial constraints. Starting from paying for mortgages to children’s education to other living expenses, everything can be covered through life insurance.


If you buy the right insurance policy for yourself, it will become much easier for your family to pay off any outstanding loans and debt in your name. It includes home loans, auto loans, personal loans, and more. When you have the right kind of insurance policy that offers sufficient coverage, your family will be in a better position to pay off certain debts without any issues.

Achieve Long-Term Goals

Some insurance policies come with investment benefits, and it means that they would get you lump sum cash on maturity. If you have invested in such life insurance policies that come with maturity and investment benefits, it will help you achieve your long-term goals, like going on a world tour or buying a new home or a car.

Peace of Mind

One of the biggest reasons why so many people buy life insurance policies is for the peace of mind that it offers. When they know that their family wouldn’t be in any immediate financial danger in case something happens to them, they can rest assured. It also can help in reducing stress in your daily life, enabling you to focus on your job more efficiently.

Tax-Saving Purposes

Life insurance policies come with tax benefits, and the premium you pay towards the policies are tax-exempt. So, you need not worry about the liability because the proceeds of the insurance policy are also tax-free.

In businesses, there is a key person life insurance policy available which helps in ensuring the top management tier of the company or the leader, depending on the value of the person in the company. In case something happens to the person covered with the key person life insurance policy, the business gets the sum assured that helps them stay afloat and find a replacement.

Overall, it can be said that there are various types of life insurance policies available out there, starting from term life insurance policies to investment-linked life insurance plans and much more. You need to choose the one based on your lifestyle, income, number of dependents, and other factors in order to ensure that your family is financially covered in your absence.

Comments Off on Top Reasons Why You Should Buy Life Insurance Policy Today
By financen | March 8, 2019 - 5:15 pm - Posted in Insurance

Insurance covers a number of situations. If you do not have homeowners or automobile insurance, it could be difficult to repair or replace your property if it becomes damaged. Insurance can also pay for expenses incurred due to accident or injury. Since there are so many different types of insurance and insurance companies, getting several quotes can help you make the right choice.

Quotes are Free

There are a variety of places that you can go to get insurance quotes. Some online sites even offer comparisons of policies from different insurance companies. Most conventional insurance companies offer quotes and explanations of what each policy covers. You may find that you are paying more for the exact coverage that you could have purchased elsewhere. One example of a company that offers insurance quotes lodi ca is Eugene C. Yates Insurance Agency.

If there is a particular company that you are considering, check to see if they have a website. Many insurance companies today have one, because there are so many that want your business. Their website may also have a live agent that you can chat with if you have any questions. Getting a quote for any type of insurance you need is easier than it was in the past when you had to drive from one location to another.

Already Have Insurance?

Even if you already have insurance, quotes can help. You may find a company that offers coverage equal to or better than what you have for less. Obtain quotes from at least three different companies so you can be certain you are getting a range of prices. More is better when it comes to savings. Just be sure to put the same information in every time so the quote you get is for the type of insurance you are seeking.

Shopping for policies is a good way to get an idea of what you will pay for homeowner’s, renters, vehicle, and health insurance as well as other types of insurance. It is particularly helpful for young people who may be buying their first home or vehicle.

Comments Off on The Important of Obtaining Quotes for Insurance

There are countless types of insurance coverage policies. For example, insurance companies have policies to protect individuals in the event that they lose a limb as a result of someone else assaulting them. The aforementioned coverage is highly specific. Since insurers are even willing to craft customized insurance coverage policies for clients, there are literally a number of insurance policy possibilities in the millions or billions. Further, most types of insurance coverage don’t cost very much and are well worth the money spent on them. After all, small businesses are better off spreading the weight of being forced to give away $100,000, for example, over several months or years than paying the entire amount in a lump sum.

Most Small Businesses Faced No Costly Incidents In The Past Year

According to a survey conducted by Insureon, roughly 65 percent of United States small businesses – roughly two-thirds of them – polled experienced zero major incidents at their places of work or that were linked to their entities’ operations or performance in the past year. However, since one-third of small businesses that were polled did, in fact, experience a costly incident in the previous 12 months, getting insurance coverage against major accidents is a good idea.

Clients Complain Too Often, Especially About Contracts

To be fair, the majority of clients only take businesses to court about contract disputes if they genuinely feel they were done wrong. Nearly one-fourth of businesses polled by Insureon were hit with contract disputes that went legal in the past year.

One In 10 Businesses’ Workers Got Injured

Workers’ compensation claims are far from cheap. Small businesses sometimes go out of business trying to pay them. As such, workers’ comp insurance is a great idea for small businesses, especially considering the fact that 10 percent of businesses polled had experienced such an issue in the previous year. Understanding what types of business insurance in Peoria AZ your business needs is difficult. You should always consult with professionals like our team members at Henderson Anderson Insurance to figure out the best ways to cover your entity in case something serious and seriously expensive happens.

Comments Off on Here Are Some Of The Most Expensive Hits Small Businesses Take Hits For That Insurance Could Have Covered
By financen | January 18, 2019 - 2:22 pm - Posted in Insurance, Life Insurance
Life Insurance

When you buy life insurance, it’s hard to determine how much you’ll need later on in life. Each year our lives can drastically change, causing us to review and rethink some of our expenses and insurances. Life insurance is one coverage that should evolve as you evolve.

Depending on your coverage, you may want to consider either increasing or decreasing your coverage according to where you’re at in life. There are certain signs to pay attention to that may tell you to reconsider what your life insurance policy is.

You Have Children

If you bought life insurance before you had kids, it might have been suitable for that moment in life. However, if later down the road you started to have children, your insurance may be outdated.

When we buy life insurance, it’s more for your family’s protection than anything. They would be the ones who utilize the death benefit if you passed away. If you have children, they’ll likely need more money to help cover costs and continue with life.

Your Health and Lifestyle Changes

Your lifestyle and health could be a sign that you need to either increase or decrease your insurance. The downfall, however, is that if your health declines, it will cost you more in monthly premiums. has more information on how your health, like weight, affects your life insurance.

You Purchased a Home

If you recently moved into a new home, that is a good time to review your life insurance policy and consider increasing the death benefit. Moving into a new home can be expensive for quite some time. If you suddenly passed away, would your family be able to afford the mortgage and continue living there? Would they have to move out and look for something smaller?

The death benefit can help your family cover costs that your income used to help with. By increasing your coverage when you purchase a new home, you’re helping to guarantee that your family will continue to live in the family home.

Increase in Income

Have you gotten a raise recently? That is a good sign that you should look at increasing your life insurance policy.

Ask yourself this – would your family be able to live without your income? If the answer is no, you know that you need life insurance to cover the loss of the primary income. So, if you got a raise, you’ll want to increase the death benefit so that it matches you and your family’s lifestyle.

Fell Into Debt

Debt is one of the main reason why some families get life insurance. The death benefit could help cover the debt left behind a family member that passed away. Even though that family member is gone, the debt still has to get paid.

If you fell into debt recently, you may want to consider increasing your coverage for the time being. The more debt you have, the more that will fall on a family member if you suddenly passed away.

Comments Off on 5 Signs to Consider Increasing Your Life Insurance Coverage