substantial administrative fees often cut into the rate of return. This is the source of the phrase, “buy term and invest the difference.” However, the performance of permanent insurance can be steady and it is tax-advantaged, providing additional benefits when the stock market is volatile. ...
There is an additional factor that sometimes causes the itemized quotes to be lower than the estimated quotes. That's due to a state premium tax. You live in the state of California. Your state's Treasury deducts 2.35% from the premium when you purchase this type of annuity. If you go...
There may be some coverage (for product recall expenses, for example). But generally, these situations cannot be insured because an insurer cannot determine what the risk is and what it's worth. Regulatory Risk Regulatory riskis the possibility a government agency will do something, or a govern...
PMI is a type of insurance that protects the lender should you default on your mortgage. It applies when you make a down payment under 20 percent. MIP A mortgage insurance premium (MIP), is a type of mortgage insurance that comes with a Federal Housing Administration (FHA) insured mortgage...
This pays an additional benefit if the insured dies because of an accident. Guaranteed insurability. This lets the policyholder buy additional life insurance coverage without having to provide new evidence of insurability. How Much Does Term Life Insurance Cost? For a 30-year-old nonsmoking male ...
Most homeowners are surprised to learn how versatile personal liability insurance is; it covers more than damage or injury caused by the named insured. Liability coverage applies to household relatives and follows you and your family to other locations. So, if your kid accidentally damages the neig...
There is a type of annuity called a "flexible premium" policy which accepts additional deposits into the same account. However, even with that type, the money you deposit today will be credited with today's interest rate, not the higher (or lower) rate that was in effect on the day you...
A universal life insurance policy is best for those who have long-term insurance needs and who have enough funds to pay for one. For instance, if you’re someone who has plenty of liquid assets in your emergency fund and has money in retirement accounts, then using additional cash to fund...
volatility may decrease when there’s less demand for the option or market expectations for the option begin to fizzle. Price sensitivity is usually greater with options that have a longer time to expiration or are at-the-money at expiration, meaning their market value is equal to their strike...
Because property damage liability is required for car insurance policies in every state, you can think of theaverage cost of minimum coverageas the base cost of property damage liability. That’s an average of $678 per year, or about $57 per month. If you want additional liability coverage,...