Whole Life Insurance Policy – The Advantages
Whole life insurance also known as “permanent” or “straight” life insurance is one of the most applied forms of insurance. This life insurance policy covers one’s entire life. This is much in demand because of its ability to provide financial protection and accrue cash value and pay dividends to the insured. In other terms, you can say it as an investment, that you make to secure your future build up finance that helps you in your indigence.
Taking a whole life insurance policy leads to a number of benefits and advantages. Few of them are listed below.
1. The first advantage is The Death Benefit.
The whole life insurance policy guarantees you the death benefit that never decreases. Moreover no federal income taxes are charged upon death. And if you desire, death benefit can be taken as a monthly income instead of a lump sum.
2. Consistency of premium level.
Unlike term life insurance’s premiums, which increase at the time of renewal, the premium you pay in whole life insurance remains consistent. There’s no increase. However, use of dividends can minimize the premiums that you pay and contracted for.
3. “Cash value” is another beneficial feature of whole life insurance.
Unlike other life insurance policies, whole life insurance policy accumulates the useable cash reserves. This increase as one pays premiums and also accumulates tax deferred. And if you decide to surrender the policy, you receive your cash values.
4. Participation in whole life insurance policy earns you the dividends.
You are eligible to earn dividends if you own a participating whole life insurance policy. You receive this dividends in cash, which you can further use to either purchase a paid up additions.
These advantages of whole life insurance policy are really worthwhile. If you are not confident you should consult an expert before taking up any policy.
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Home Equity Loan vs. Second Mortgage
If you own your home and need a loan for whatever reason you have probably considered a second mortgage or a home equity loan to help you pay your bills, buy a new car, or pay for some other investment. However, you probably don’t know whether a second mortgage is better or worse than a home equity loan for your particular situation. However, don’t despair because there are some tips that will help you decide whether a second mortgage or home equity loan is for you.
Second Mortgage Tip #1 One Time Expenses
A second mortgage is the preferred option if you have a one time big expense you need to cover. Examples of this include remodeling your kitchen, paying for a wedding, or buying a new car. In these instances a second mortgage will probably work best for you; however this will depend on the equity in your home and your credit score.
Second Mortgage Tip #2 Recurring Expenses
If you are going to have recurring expenses then you might not want a second mortgage because a home equity loan will work out better for you. The second mortgage is best for large amounts of money at once while recurring expenses like tuition are better paid for with a home equity line of credit.
Second Mortgage Tip #3 Repayment
You will also need to consider your ability to repay and which option will suit you best. A second mortgage can be financed similarly to your first mortgage, while the home equity loan can be paid back more like a credit card. Consider your financial position and ability to make monthly payments before applying for either a second mortgage or a home equity loan.
If you still don’t know whether a second mortgage or home equity line of credit is for you, then talk with your lender and see what is recommended for your equity, creditFind Article, and ability to repay the loan.
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Home Mortgage Refinance Rates Remain Stable in August
Home mortgage refinance rates have remained quite stable since the beginning of July. When July began, we saw mortgage rates around 5.1%. The highest we saw interest rates move was to 5.3% before moving back down. This trend continued until the end of month when treasury yields started to sell off. The sell off of the treasury yields pushed mortgage rates all the way down to 5.05%. Many analysts felt that this was going to help push mortgage rates under 5% but that was not the case.
After we saw mortgage rates drop to 5.05% we saw an immediate surge in treasury yields in the early part of August. Since this surge in treasury yields, we have seen the 30 year fixed mortgage rate move all the way back up to 5.3% which is the upper end of the trend channel. The interesting thing to see will be if mortgage rates push above this upper trend channel and move towards 6% or if they break down and fall back down towards 5.1%.
President Obama and his staff have worked very hard to keep interest rates low, so we can guess that they will continue that trend. If you have been thinking about refinancing or getting your first mortgage, now might be as good of a time as ever as our President is trying to help us out greatly. Take advantage of this time as mortgage rates are still very close to all time lows.