Equity-Indexed Universal Life Insurance New Jersey NJ
Reader’s Question:
A life insurance agent here in New Jersey recently told me about getting an Equity-Indexed Universal Life Insurance, I don’t understand what it is. Can you tell me something about this?
Lyndon
Elizabeth, NJ
Equity-Indexed Universal Life Insurance (abbreviated: EIUL) is a fairly recent type of life insurance, having been introduced to the market during the mid-90’s. The main reason for it’s creation is to provide consumers who are concerned about economic or market volatility an alternative to certain forms of life insurance coverage that are heavily-reliant on how interest rates fluctuates.
Admittedly, this kind of life insurance would not be to everyone’s taste and would require you to have at least some understanding of how stock and money markets work to be able to at least understand how the said policy would work. You may even need to consult a financial professional there in New Jersey (or that life insurance agent who talked you into this kind of policy) to fully grasp this particular type of life insurance.
Let’s give a simple explanation on EIUL. Once someone buys this kind of policy, the insurance company uses the current point value of a specific stock market index (most probably the S&P 500) as a reference point for your policy’s value. Every year that the said stock market index increases in value, so does your policy accordingly and if the index does not increase, or even lose value your policy’s growth rate would just be pegged to 0%. Most policies would also have price caps or ceilings, say the index grows by 20% and your policy has a 15% index cap, then your policy can only increase up to 15% in value.
Tags: life insurance, life insurance options, universal life insurance, advise
Medical Payments Insurance versus Health Insurance New Jersey NJ
Filed under: Auto insurance leads, Health insurance leads
Reader’s Question:
I live and work here in New Jersey. I’m quite confident about my health insurance coverage. So, can I cancel the Medical Payments Insurance on my motor vehicle insurance policy?
Trish
Newark, NJ
Having a major health insurance is a good thing. But it is smart to still carry the medical payments insurance feature in your car insurance policy. This feature covers reasonable and necessary medical and funeral expenses after an accident, provided that it is within the limit of coverage for you or the passenger in your car. Since there might be medical and hospital needs not covered by your health insurance provider, the medical payments insurance takes care of these for you. Also, this insurance in your policy shoulders co-payments or deductibles which are not included in your health insurance coverage.
If you’re looking for a way to lower your premiums, there are a couple of things that you can try. Insurers provide discounts to drivers with cars that have safety features in them like airbags, anti-lock brakes or automatic seatbelts. Insurers also reward motorists who have a clean driving record for three years. This means not having any speeding tickets, accidents or any other traffic violation. You can also arrange with your co-workers in New Jersey to use your car for carpooling. In this way, you’ll have someone share with your gasoline consumption aside from the fact you are eligible for car insurance discount.
Tags: auto insurance premium, car insurance, Car insurance discounts, health insurance
Annuity Payments New Jersey NJ
Reader’s Question:
I am 40 years old and planning for my retirement now here in New Jersey. I plan to retire at 60. I am particularly interested in annuities. Are there different types of annuity products?
Sherman
Trenton, NJ
Hi, Sherman. Forty is just the right time to think about your retirement as you still have enough time to save up in case you want to buy an annuity. I take it that you have an idea about annuities. However, just to reiterate: Annuities are just like whole life insurance but with a slight difference; an annuity policy pays you a monthly guaranteed income as long as you live while a whole life insurance pays claims made by your beneficiary when you die. For example, you lived up to 90 years old. This would mean that from the moment you celebrated your 60th birthday up to being 90 years old, you have received a monthly income for 30 years.
You can choose to buy an annuity via a single payment premium. With this, you pay a lump sum, then start receiving money after a year so. Another kind of annuity is what we call a combination of retirement savings and retirement payment plan. This type of annuity allows the annuitant to make regular payments or contributions to the annuity for a certain date and then receive regular payouts from the annuity from then on. And lastly, there is a type of annuity that has life insurance mixed into it. In case the annuitant dies before annuity payments begin, a designated beneficiary will receive a lump sum or the regular annuity payments. So, I hope you give your agent in New Jersey a call soon.
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