Comparing Term Vs Life Insurance is comparing temporary coverage to permanent coverage. Term life insurance is only temporary and Whole life insurance carries with you the rest of your life. So what other differences are there between the two in this common debate?

Whole life insurance builds cash value and Term life insurance does not. The cash value of a Whole life policy begins building in the third policy year and continues to grow with interest for as long as the policy is in force. You have the option to surrender the policy to the insurer and receive the cash value of the policy to do with as you please. You can also leave the policy in force and use the cash value to secure a loan.

Term coverage is only designed to be temporary coverage to provide a death benefit should you die during the period of time that the policy is in force. Typically, term policies are sold as and “ART”, or “Annual Renewable Term” policy. Other common periods are 3, 5, 10, 20 and 30 year term policies. When the policy renews, the premiums increase based upon attained age. The main benefit of a term policy is that you can get more insurance for less money.

Some people opt for a small Whole life policy to provide permanent protection, while simultaneously using a Term policy to provide additional death benefits for a specified period of time.

Different companies charge different premiums for the same exact coverage. One insurer may charge only $35.00 per month for a $1,000,000.00 term policy, while another charges $100.00 per month. Only by comparing policies and companies carefully will you know you’re getting the best quote.

http://www.lifeinsurance4all.com is a free tool that you can use to instantly compare life insurance quotes from the nation’s top insurers. It’s 100% free to use.

Christy Love is a retired life insurance agent with over 30 years of experience in helping people protect what matters most… their families. As an Ezinearticles.com expert author, Christy enjoys sharing her knowledge of life insurance with the online community.

Article Source: http://EzineArticles.com/?expert=Christy_Love

Source by Christy Love

Everybody that drives on the highway needs car insurance. It can be costly depending upon your circumstances. But there are numerous ways you can try to acquire low cost car insurance. Why pay an extortionate amount when you don’t have to! Now it is possible to quickly compare quotes through various websites. You just enter your details and information and within seconds you can view the best deals.

To qualify for low car insurance there are a number of rules and steps that can be followed. To start with it helps if your vehicle is fitted with an anti-theft device. All new cars that are sold will generally come with such equipment pre-installed. If you have an older vehicle it may pay to have such a device fitted, as in the long run it will save you money by allowing you cheaper insurance.

Did you know that it is often the case that insuring two or more cars with the same company is cheaper than insuring them separately? Also it may help if you consolidate all your forms of insurance with the same provider. This includes medical, life, and house insurance.

Most of today’s insurance providers require you to inform them on the amount of mileage that you do. Never overestimate this as you will incur a greater cost. If you usually have a six month policy then it makes better financial sense to sign up for a 12 month policy as they work out cheaper and you know that the price cannot increase after six months.

Certain insurance companies will provide a service to specific demographic groups. For example if you are a new or young driver then you may be financially better off by choosing a company that specializes in young persons insurance. This is also true in relation to elderly drivers and women.

For lower insurance it is useful to improve your credit rating. Most insurance companies will check your exact credit rating before offering you a quote. They believe that people that have a bad credit rating are a higher risk as they may not always make their payments on time. You should take steps to improve your standing. It is also useful to know that various insurance providers can give you a cheaper price if you have specific affiliations or even if you use a certain credit card for your payments.

You can also bring the cost of your vehicle insurance down by choosing the right package. Maybe your car is fairly old, if so then perhaps you don’t need to take out an expensive policy that covers all eventualities. Basic liability insurance may be adequate. It is often suggested that full collision and comprehensive insurance cost more than some cars do.

There is one more factor to consider in relation to low vehicle insurance, this is a clean driving record. Safer drivers give more profits to insurance companies. The people that never have to make a claim can get the cheapest insurance of all.

Source by Jim Bassett

Are you a business man and need you auto to be with you all the time? Do you have to drive at length as you are using it for business intention? If yes, then commercial auto insurance is for you. So what do we mean by commercial auto insurance?

Commercial automobile insurance is the insurance for those cars which are used for business purposes. You could have to ramble around a lot for your business motives and due to this ; you have higher chance of getting your automobile bumped into something. So in that case, commercial car insurance is crucial for you. Moreover, many business firms that give vehicles to their staff also get commercial vehicle insurance to ensure the security of the automobiles they supplied. it is also inaccurate belief that only business men need commercial automobile insurance. Anyone can have commercial vehicle insurance quotes easily online. While you are getting your automobile insured, the insurance corporations would want to know that whether you want to use them for home-use or business purposes. So it is a better to option to have commercial automobile insurance as you surely want to drive your automobile while going out for work which is also considered under business category.

Be straight and remove any anomaly if you have to protect yourself from any trouble later. Some professions that necessarily require commercial car insurance include free delivery eateries, real estate, newspaper delivery and many others.

Latterly, automatic car Insurance Reduction Cost act has been applied in NJ which has made it possible for drivers to take the full virtue of inexpensive basic car insurance policy. But with basic auto insurance policy, auto insurance rates have now become reasonable for a low income folk.
However you can add the cover after. Likewise, the best thing in this regard is that drivers having NJ auto insurance can sue any one in vehicle accident whereas drivers who are without NJ car insurance can not do this.

NJ auto insurance with basic car insurance is less expensive though but it’s not a more sensible choice because it won’t make your car secure and safe. So it is always better to for standard car insurance policy. Basic car insurance is surely not for those folks that travel a lot and have very large annual mileage. But we have to accept this fact that at least, many of us in NJ can get their auto insured under this policy.

So, if you are living in NJ and have not got your automobile insured yet, then go and get NJ automobile insurance with basic car insurance which is affordable and effective also, but with few added features.

Source by Efrain Bonner

The insurance industry in Florida was exceptionally strong before the strong winds entered the state. But ever since Florida was experienced a few of the worst hurricanes in 2004-2005 many major insurance companies simply closed down or did not offer any further policies.

The reason for this change was that those  hurricanes had huge impacts on the houses, destroying almost anything they came into contact with. So these companies went bankrupt or were almost at the verge of bankruptcy. And ever since the big companies were out of the scenario, many smaller insurance companies took over the state.

As a result of this when people are shopping around for home insurance they are not left with too many options, as they have to choose between Citizens, which is a state run insurance company, or from one of the smaller and newer insurance companies. Many people have been worried about this change in the insurance industry as they now do not have much available in terms of prices. Furthermore, trusting the new companies financially is also another issue as it is not sure if they can provide coverage on a huge scale if a there was a hurricane.

Twenty-seven fresh companies have received an approval from the state since the beginning of 2006. These insurance companies deal with home insurance policies for the residents, and are trying to restore the dwindling and uncertain insurance industry. Moreover, these insurers are trying to help those people who were either rejected by the financially exhausted insurance companies or were given a non-renewal to minimize financial contingencies.

However, it is very hard to make a comparison between an insurance company that has come into existence only recently with an insurance company that has been in Florida for the past many years. The new companies are very meticulous about their policies, unlike the old companies who already have customers. Before handing out the policy there would look into some aspects regarding your home such as the area where it is situated, how old it is and maybe even the price of the house.

The small companies might also not have enough finances at the time of a catastrophe, but at the moment these companies are the only hope for many of the people. If you’re lacking coverage and think one of these companies or others might help be sure to check online for any deals in your area as you may be able to find coverage for you so that you won’t be left high and dry when you need it the most.

If you’re stuck and need some help finding good information online try using Ezquoteguide.com for finding the right local insurance information you need right away to help you fulfill your auto insurance needs.

Source by Marcel A Johnson

If you care for your car then before anyone to advices you will get car insurance. Car insurance is perhaps the only thing that can guarantee you of protecting your car. It protects the car in the sense that it protects your money. Any damage to the car can be repaired very easily and then give it its pervious best look by the help of the car insurances. So, if you have bought a car now then go for insurance now only. For faster results you can have a look at the instant car insurance quote and choose the best deal.

The perfect place to get all insurance quotes available just in front of you is the Internet only. So, you can have a look at the online insurance companies and go through all the quotes made by them. In this way, it will be easier for you to find out the cheap deal. Also if you can select the company without wasting much time then instantly you can apply for their insurance policies. The online companies use to be very active and will provide you instant consultation and facility.  

You can also go through the physical market of the insurance companies. Here you can have broad discussion with the company and then take your decision. The most important thing that you have to look is the premium rate. If the premiums to be paid are low then there is no problem in getting such as insurance. So, even though you are hurry it is very essential to go through every terms and conditions properly. Otherwise, it is you only who have to face problems later on.

Car insurance will help you in getting your lost money back when the car gets stolen, catches fire or gets damaged in accident. So without wasting any more time you should opt for the instant car insurance quote.

Source by Henry Bell

Ohio requires every driver that operate or park a vehicle on the highway to be covered with insurance. The bodily injury liability insurance limit for per person is $12,500. The limit for all the persons in the bodily injury liability insurance is $12,500. The limit for the property damage liability is $7,500. Ohio follows the tort system when an accident occurs. The tort system requires you to prove that you are at fault otherwise the insurance company won’t offer coverage. The uninsured/underinsured bodily injury motorist coverage is not required by Ohio. Though Ohio did not require you to purchase this coverage, you should buy it. The uninsured/underinsured coverage offers compensation if the other person that is responsible for the accident is not covered.

It is not necessary to buy the car insurance. If you choose to not meet the insurance minimum, you must possess a $30,000 bond which is from an licensed surety company. The $30,000 bond can also be obtained from the insurance carrier. The certificate of proof of financial responsibility can also be used to establish financial responsibility. The certificate must be signed by a licensed insurance agent. The Bureau of Motor Vehicle (BMV) certificate should show that you have a cash deposit of $30,000. The BMV certificate of self insurance can be used as roof of financial responsibility by people that have more than 26 vehicles.

The cost of the car insurance can be expensive for first time driver. If you have a good driving record, you can get discount for the insurance coverage. If you purchase all your insurance from the company, you may get a cheaper premium rate.

Your vehicle will be suspended if you are unable to provide an insurance proof when stopped by the law enforcement officer. After your vehicle is suspended by the BMV, you will receive a letter. The letter request that you submit the insurance policy proof and reinstatement fee to the specified address. Alternatively, you can attend the traffic court and show the car insurance proof. The BMV will randomly select a driver and ask him to show the insurance proof. When you receive the notice, you must show your insurance proof within the allotted time. If you fail to provide insurance proof, your vehicle registration will be suspended. If this is the first time you fail to show proof, your car driving license will be suspended for 90 days.

Source by Alexei

Whenever, the directors and officers are sued, they look into their Directors and Officers insurance policies for protecting their interests and sufferings. All too frequently, the insurance company has denied coverage, and the policyholder must resort to the courts for relief. With the increasing legalities, insurance companies have come forward to provide many effective solutions to enjoy the situations largely.

To improve the situation, the insurance industry has responded quickly to these emerging concerns by providing better policies with better coverage. Many D&O policies now have provisions severely limiting the insurance company’s ability to annul the policy. In addition, newer policies come with coverage of more areas and different aspects.

Since, the world has become heavily litigated and people need to have greater coverage of the emerging situations. Directors can seek policies for catering different needs and requirements.

Need for Adequate Insurance Policies
In today’s concept, the working environment of a company has become very transparent in comparison in earlier system. In addition, many directors and officers of private companies do not realize the dangers that are open to them personally. Some people believe that D & O are prone to attacks from employees, regulators, shareholders and creditors. Practically, some people assume that they can do anything under the corporate cover, which is a myth nowadays. Dealing with mismanagement is no longer an easy thing.

In order to avoid these personal dangers, directors and officers need a strong protection so as to minimize the financial damages caused. In fact, directors and officers are soul responsible for any kind of damages and losses occurred in the company. There are cases, where directors and officers have to pay from their own pockets when found guilty.

Search online to get the best coverage and protect your rights and interests to get the best cover and lead a peaceful life.

Source by Roberto Luongo

Benchmark performance management helps to establish, Aetna Health care providers
, industry standards objective. Providers of medical services can use benchmarking to evaluate the performance of their billing service and measure their improvement over time. This article presents a prototype for a rule-based index of chiropractic, including its coverage definition,, Aetna Health care providers
, update cycle, weight volume, and the information provided.

Current (June 2006) Billing Precision Index (BPI) is 18, which means that the average top ten taxpayers benefits of working with clients BPI have 18% of claims exceeding 120 days. This is a key feature of the performance of billing, since it is a proxy of claims that are never paid. Obviously, the lower the index the better the performance of billing. The following table also lists the top ten results of the taxpayers and their relative index as recorded in the billing system Precision (BillingPrecision.

com). Billing Precision Index 18 Benesight 5 Blue Cross Blue Shield Florida 5 Florida 7 Medicare United Health Care 8 Oxford 11 Cigna Medicare 13 New Jersey 17 Horizon 18 Aetna 21 Texas 33 Blue Cross Blue Shield Insurance BPI is based on rules, or participation in agency the second index, Aetna Health care providers
, is defined by rules dynamically at the time of calculation and not a static list of specific taxpayers.

Therefore, any specific agency may start or discontinue participation index, dependent on satisfaction of the conditions of rule. Current selection of payers for participation in the BPI is based on Top Fifty-volume, Aetna Health care providers
, providers in the United States that have received Billing Precision services for more than six months and are more than two hundred claims in their current accounts receivables.

Update billing cycle accurate updates its index on a monthly basis. Volume weighted BPI is volume weighted, which is important to manage the future growth of the information provided, the combinations of index and sensitivity among the indices. The information provided BPI calculates the percentage of claims exceeding 120 days. Note that the national average in all medical specialties of percent of claims beyond 120 days is equal to 17.

7%. Summary Medical Billing Performance Index helps the development of industry standards for billing. Providers of medical services can use the index to evaluate its performance billing and guide its improvement over time. Rule-based index definition allows for the inclusion and the automatic exclusion of payers in the index based on payer attributes, such as the number of claims processed, the accounts receivables of the distribution, mix of some CPT codes, or patient demographics.

Index payer provides billing for management process improvement. Yuval Lirov, PhD, author of “Mission Critical Systems Management” (Prentice Hall, 1997), inventor of multiple patents in artificial intelligence and computer security, billing and CEO Vericle.com Technologies. Vericle, Aetna Health care providers
, offers comprehensive practice workflow engine that integrates patient scheduling, electronic medical records (EMR), billing, transcription and compliance management.

Improve billing performance and reduce the risk of audit.

Source by chris walker

Car insurance customers in Essex have been urged not to give opportunistic thieves the chance to break into their automobiles. Police in the area have therefore issued advice on how drivers could best avoid becoming a victim of vehicle crime. They suggested that motorists ensure they only park in safe and well-lit areas to ensure they do not attract unwanted attention from would-be thieves.

Report about automobile insurance customers reaction

Lorna Watson, the south eastern crime reduction officer, also suggested that using security devices is a good way to deter opportunistic criminals. She explained that it takes just one minute for a car thief to steal property left inside a vehicle. “It takes a lot longer and can be frustrating for the owner to deal with the insurance company, have any damage to the vehicle repaired or to arrange alternative transport,” she explained.

Meanwhile, a customers of car insurance companies in Buxton were recently warned by police that they may need to step up their vehicle security measures following an increase in the number of people attacked by vandals.

Author’s note: They are many motor vehicle insurance companies in Buxton, where the biggest one is Swinton Car Insurance company, which slogan is “Take care of the people you love the most for just a few pounds a month. more info Finding the right car insurance can be hard work particularly when there are so many companies around. That’s why Swinton can provide a refreshing change, we compare car insurance prices for you by searching the UK’s top insurers to bring our customers rock bottom prices.”

Source by Car Insurance Expert

Unfortunately, a broken or shattered windshield is not just a nuisance, it is also detrimental to the overall driving practices of the individual operating the vehicle since the glass through which the individual would otherwise be looking is damaged. This can make it more difficult for the person to drive, if not impossible. A broken windshield can be caused by a bird flying into the window, a rock or other piece of debris flying into the glass or from a car accident. Since some of these instances seem covered and others may not, many people are left with the troubling question of whether or not their specific broken windshield is covered under their auto insurance policy and their deductible. In general, this will vary from person to person depending on their individual insurance company and the amount of their deductibles. However, there are some specifics to look for in such an event.

If you were in a car accident that was not your fault and the windshield was damaged, the windshield will be covered by the insurance of the other person. There would be no need for the money to come out of your auto policy deductible if the crash was not your fault. Unfortunately, if the other driver does not have insurance the cost of repairs may need to come out of your deductible, if that is possible. While the United States requires that individuals have insurance on their vehicles before they are driven on the road, many people will ignore this law, which unfortunately has happened with almost any other law that has been put into place in this country. Sometimes there are people who just do not want to follow the law.

In general, regardless of the situation being the individual’s fault or not, windshield damage will be covered by your auto policy if you have full coverage. Full coverage means that the individual has liability and comprehensive auto insurance. This also means that insurance coverage will pay for problems whether the situation resulting in the broken windshield is your fault or not. If a person has just liability insurance, this is when the insurance company will only pay for the damages caused by the insured person’s vehicle on the property that the driver damaged that is not their own, individual vehicle. Only with full coverage can an individual get this type of problem coverage.

However, the amount of a person’s deductible will also play a factor into whether or not the person will need to pay out of pocket for the repair of a windshield. When a person gets an auto insurance policy, they determine their deductible. For most companies, these options include $250, $500, $750 and $1000 deductibles. Higher deductibles typically mean lower monthly payments, and this is left up to the individual. In most cases, the cost of replacing a windshield will be more than most of the deductibles, save potentially the $1000 deductible. When the deductible is lower than the overall cost of the windshield’s replacement or repair, the insurance policy will cover the cost of any amount in excess of the deductible.

Source by Greg Smith

Published in Tax Practice: Tax Notes

March 2, 2009

By Lance Wallach

The IRS has various task forces auditing all section 419, section 412(i), and other plans that tend to be abusive.  These plans are sold by most insurance agents.  The IRS is looking to raise money and is not looking to correct plans or help taxpayers.  The fines for being in a listed, abusive, or similar transaction are up to $200,000 per year (section 6707A), unless you report on yourself.  The IRS calls accountants, attorneys, and insurance agents “material advisors” and also fines them the same amount, again unless the client’s participation in the transaction is reported.  An accountant is a material advisor if he signs the return or gives advice and gets paid.  More details can be found on http://www.irs.gov and http://www.vebaplan.com.

Bruce Hink, who has given me written permission to use his name and circumstances, is a perfect example of what the IRS is doing to unsuspecting business owners.  What follows is a story about how the IRS fines him $200,000 a year for being in what they called a listed transaction.  Listed transactions can be found at http://www.irs.gov.  Also involved are what the IRS calls abusive plans or what it refers to as substantially similar.  Substantially similar to is very difficult to understand, but the IRS seems to be saying, “If it looks like some other listed transaction, the fines apply.”  Also, I believe that the accountant who signed the tax return and the insurance agent who sold the retirement plan will each be fined $200,000 as material advisors.  We have received many calls for help from accountants, attorneys, business owners, and insurance agents in similar situations.  Don’t think this will happen to you?  It is happening to a lot of accountants and business owners, because most of theses so-called listed, abusive, or substantially similar plans are being sold by insurance agents.

Recently I came across the case of Hink, a small business owner who is facing $400,000 in IRS penalties for 2004 and 2005 because of his participation in a section 412(i) plan.  (The penalties were assessed under section 6707A.)

In 2002 an insurance agent representing a 100-year-old, well established insurance company suggested the owner start a pension plan.  The owner was given a portfolio of information from the insurance company, which was given to the company’s outside CPA to review and give an opinion on.  The CPA gave the plan the green light and the plan was started.

Contributions were made in 2003.  The plan administrator came out with amendments to the plan, based on new IRS guidelines, in October 2004.

The business owner’s insurance agent disappeared in May 2005, before implementing the new guidelines from the administrator with the insurance company.  The business owner was left with a refund check from the insurance company, a deduction claim on his 2004 tax return that had not been applied, and no agent.

It took six months of making calls to the insurance company to get a new insurance agent assigned.  By then, the IRS had started an examination of the pension plan.  Asking advice from the CPA and a local attorney (who had no previous experience in these cases) made matters worse, with a “big name” law firm being recommended and over $30,000 in additional legal fees being billed in three months.

To make a long story short, the audit stretched on for over 2 ½ years to examine a 2-year-old pension with four participants and the $178,000 in contributions. During the audit, no funds went to the insurance company, which was awaiting formal IRS approval on restructuring the plan as a traditional defined benefit plan, which the administrator had suggested and the IRS had indicated would be acceptable.  The $90,000 in 2005 contributions was put into the company’s retirement bank account along with the 2004 contributions.

In March 2008 the business owner received a private e-mail apology from the IRS agent who headed the examination, saying that her hands were tied and that she used to believe she was correcting problems and helping taxpayers and not hurting people.

The IRS denied any appeal and ruled in October 2008 the $400,000 penalty would stand.  The IRS fine for being in a listed, abusive, or similar transaction is $200,000 per year for corporations or $100,000 per year for unincorporated entities.  The material advisor fine is $200,000 if you are incorporated or $100,000 if you are not.

Could you or one of your clients be next?

To this point, I have focused, generally, on the horrors of running afoul of the IRS by participating in a listed transaction, which includes various types of transactions and the various fines that can be imposed on business owners and their advisors who participate in, sell, or advice on these transactions.  I happened to use, as an example, someone in a section 412(i) plan, which was deemed to be a listed transaction, pointing out the truly doleful consequences the person has suffered.  Others who fall into this trap, even unwittingly, can suffer the same fate.

Now let’s go into more detail about section 412(i) plans.  This is important because these defined benefit plans are popular and because few people think of retirement plans as tax shelters or listed transactions.  People therefore may get into serious trouble in this area unwittingly, out of ignorance of the law, and, for the same reason, many fail to take necessary and appropriate precautions.

The IRS has warned against the section 412(i) defined benefit pension plans, named for the former code section governing them.  It warned against trust arrangements it deems abusive, some of which may be regarded as listed transactions.  Falling into that category can result in taxpayers having to disclose the participation under pain of penalties, potentially reaching $100,000 for individuals and $200,000 for other taxpayers.  Targets also include some retirement plans.

One reason for the harsh treatment of some 412(i) plans is their discrimination in favor of owners and key, highly compensated employees.  Also, the IRS does not consider the promised tax relief proportionate to the economic realities of the transactions.  In general, IRS auditors divide audited plan into those they consider noncompliant and other they consider abusive.  While the alternatives available to the sponsor of noncompliant plan are problematic, it is frequently an option to keep the plan alive in some form while simultaneously hoping to minimize the financial fallout from penalties.

The sponsor of an abusive plan can expect to be treated more harshly than participants.  Although in some situation something can be salvaged, the possibility is definitely on the table of having to treat the plan as if it never existed, which of course triggers the full extent of back taxes, penalties, and interest on all contributions that were made – not to mention leaving behind no retirement plan whatsoever.

Another plan the IRS is auditing is the section 419 plan.  A few listed transactions concern relatively common employee benefit plans the IRS has deemed tax avoidance schemes or otherwise abusive.  Perhaps some of the most likely to crop up, especially in small-business returns, are the arrangements purporting to allow the deductibility of premiums paid for life insurance under a welfare benefit plan or section 419 plan.  These plans have been sold by most insurance agents and insurance companies.

Some of theses abusive employee benefit plans are represented as satisfying section 419, which sets limits on purposed and balances of “qualified asset accounts” for the benefits, although the plans purport to offer the deductibility of contributions without any corresponding income.  Others attempt to take advantage of the exceptions to qualified asset account limits, such as sham union plans that try to exploit the exception for the separate welfare benefit funds under collective bargaining agreements provided by section 419A(f)(5).  Others try to take advantage of exceptions for plans serving 10 or more employers, once popular under section 419A(f)(6).  More recently, one may encounter plans relying on section 419(e) and, perhaps, defines benefit sections 412(i) pension plans.

Sections 419 and 419A were added to the code by the Deficit Reduction Act of 1984 in an attempt to end employers’ acceleration of deductions for plan contributions.  But it wasn’t long before plan promoters found an end run around the new code sections.  An industry developed in what came to be known as 10-or-more-employer plans.

The IRS steadily added these abusive plans to its designations of listed transactions.  With Revenue Ruling 90-105, it warned against deducting some plan contributions attributable to compensation earned by plan participants after the end of the tax year.  Purported exceptions to limits of sections 419 and 419A claimed by 10-or-more-employer benefit funds were likewise prescribed in Notice 95-24 (Doc 95-5046, 95 TNT 98-11).  Both positions were designated as listed transactions in 2000.

At that point, where did all those promoters go?  Evidence indicates many are now promoting plans purporting to comply with section 419(e).  They are calling a life insurance plan a welfare benefit plan (or fund), somewhat as they once did, and promoting the plan as a vehicle to obtain large tax deductions.  The only substantial difference is that theses are now single-employer plans.  And again, the IRS has tried to rein them in, reminding taxpayers that listed transactions include those substantially similar to any that are specifically described and so designated.

On October 17, 2007, the IRS issues Notices 2007-83 (Doc 2007-23225, 2007 TNT 202-6) and 2007-84 (Doc 2007-23220, 2007 TNT 202-5).  In the former, the IRS identified some trust arrangements involving cash value life insurance policies, and substantially similar arrangements, as listed transactions. The latter similarly warned against some postretirement medical and life insurance benefit arrangements, saying they might be subject to “alternative tax treatment.”  The IRS at the same time issued related Rev. Rul. 2007-65 (Doc 2007-23226, 2007 TNT 202-7) to address situations in which an arrangement is considered a welfare benefit fund but the employer’s deduction for its contributions to the fund id denied in whole or in part for premiums paid by the trust on cash value life insurance policies.  It states that a welfare benefit fund’s qualified direct cost under section 419 does not include premium amounts paid by the fund for cash value life insurance policies if the fund is directly or indirectly a beneficiary under the policy, as determined under sections264(a).

Notice 2007-83 targets promoted arrangements under which the fund trustee                                                         purchases cash value insurance policies on the lives of a business’s employee/owners, and sometimes key employees, while purchasing term insurance policies on the lives of other employees covered under the plan.

These plans anticipate being terminated and anticipate that the cash value policies will be distributed to the owners or key employees, with little distributed to other employees.  The promoters claim that the insurance premiums are currently deductible by the business and that the distributed insurance policies are virtually tax free to the owners.  The ruling makes it clear that, going forward, a business under most circumstances cannot deduct the cost of premiums paid through a welfare benefit plan for cash value life insurance on the lives of its employees.

Should a client approach you with one of these plans, be especially cautious, for both of you.  Advise your client to check out the promoter very carefully.  Make it clear that the government has the names of all former section 419A(f)(6) promoters and, therefore, will be scrutinizing the promoter carefully if the promoter was once active in that area, as many current section 419(e) (welfare benefit fund or plan) promoters were.  This makes an audit of your client more likely and far riskier.

It is worth noting that listed transactions are subject to a regulatory scheme applicable only to them, entirely separate from Circular 230 requirements, regulations, and sanctions.  Participation in such a transaction must be disclosed on a tax return, and the penalties for failure to disclose are severe – up to $100,000 for individuals and $200,000 for corporations.  The penalties apply to both taxpayers and practitioners.  And the problem with disclosure, of course, is that it is apt to trigger an audit, in which case even if the listed transaction was to pass muster, something else may not.

Lance Wallach, National Society of Accountants Speaker of the Year and member of the AICPA faculty of teaching professionals, is a frequent speaker on retirement plans, financial and estate planning, and abusive tax shelters.  He writes about 412(i), 419, and captive insurance plans. He speaks at more than ten conventions annually, writes for over fifty publications, is quoted regularly in the press and has been featured on television and radio financial talk shows including NBC, National Pubic Radio’s All Things Considered, and others. Lance has written numerous books including Protecting Clients from Fraud, Incompetence and Scams published by John Wiley and Sons, Bisk Education’s CPA’s Guide to Life Insurance and Federal Estate and Gift Taxation, as well as AICPA best-selling books, including Avoiding Circular 230 Malpractice Traps and Common Abusive Small Business Hot Spots. He does expert witness testimony and has never lost a case. Contact him at 516.938.5007, wallachinc@gmail.com or visit www.taxaudit419.com/TaxHelp.html and www.taxlibrary.us

The information provided herein is not intended as legal, accounting, financial or any type of advice for any specific individual or other entity. You should contact an appropriate professional for any such advice.

Source by Lance Wallach

Despite the fact that the automobile insurance rates in New Jersey decreased in 2007 it is still one of the most expensive state in terms of auto insurance. To be more precise, New Jersey has the second  highest premiums for drivers in the entire US.

The auto insurance rates have been gradually decreasing for the past few years. In 2004, there was a decrease of 5.6 percent in the entire nation and in New Jersey the rates fell down by 9.6 percent, though this still left it in a high bracket.

Since the new legislation in 2003 the insurance industry has been quite lenient on the residents of New Jersey. However, there are certain factors when deciding the rates which simply cannot be ignored and are few of the reasons why the insurance prices in this state is expensive. These reasons include extremely high pays of the medical providers, the high price of fixing an automobile and not to mention the population density and therefore the chances of accidents occurring in the New Jersey area. These factors have to be taken into consideration when setting the rates.

The changes in the legislation also benefited the insurance companies, as the companies had most of the control over the profits they made. Yet some of the companies simply left the state or shut down as they thought the new reforms were absurd. As there were not many options to choose from, the people in New Jersey had to succumb to the extreme rates and some do not buy the insurance because it is unaffordable.

As of now there are eight major insurance providers that manage the policies in New Jersey. However, these policies are not impartial and the same towards all people regardless of their credit report, how well educated they are, whether or not they are employed or they own home insurance or not.

This doesn’t mean you have zero options, however. You should look around for the best the best policy according to your budget and you will surely find one. The internet is a great source for this as you can easily search online for the best providers to help you find the lowest rates in your area. Also be sure to see if the insurance companies can lower your premiums if you qualify for certain discounts by having safety equipments to your car, or if you have had a driving course.

If you’re stuck and need some help finding good information online try using Ezquoteguide.com for finding the right local insurance information you need right away to help you fulfill your auto insurance needs.

Source by Marcel A Johnson

Term life insurance, like other forms of life insurance, has its advantages and disadvantages. While it is the often the least expensive option, there are other factors that should be considered before signing a policy. This means careful consideration of all options, equally weighing all pros and cons.

All types of life insurance are based off of term life insurance. For a specified period of time, usually 10 or 20 years, the insured is covered if he or she should die while the policy is in effect. Term life insurance is typically renewable, though the premium is likely to increase as the attained age of the insured will be higher.

With any life insurance policy, it is best to purchase a policy as soon as possible in his or her life to lock in a lower premium. This is especially true for whole life insurance, since this is a policy that is typically paid for over the course of the insured’s lifetime. Term life policy holders will likely higher premium amounts upon policy renewal, as opposed to such policies like whole life insurance. However, consider the amount the premium will increase and the overall cost savings of term life insurance versus whole life insurance. Also, remember that premium amounts will be based upon the risk of the insured will dying prematurely. Certain occupations and hazardous hobbies can result in a higher premium for any type of insurance policy.

Keep in mind that the cost savings of term life insurance versus whole life insurance is likely enough to invest the difference. Whole life is often mistaken for a savings vehicle when it really should be used for estate planning purposes more than anything else. Term life is coverage in its purest form without any payout other than the death benefit, whereas whole life pays out if the insured dies or lives to 100 years of age.

Regardless of the type of insurance to be purchased, deciding on a policy is best accomplished with some time to comparison shop for the best type and amount of coverage. The premium can vary between insurance companies, so visiting a website that allows the ability to comparison shop between various insurance companiesis a great start to significant cost savings. Such a site should allow for filling out forms that give a direct comparison between different insurers for the same type of policy and amount of coverage, which could help significantly with the long term cost of any insurance policy.

Source by Frank Topolova

A health insurance co-payment can be a small insignificant dollar amounts that you pay a infrequently each year, but it can also be a hefty dollar amount that will have major impact on your wallet. If your only understanding of health care insurance co-pays is the forgettable dollar amounts that you might pay when you buy drugs, please read on. Your bank account may be the better for it.

Three important pieces of information that you should know about include how your medical insurance contract limitations co-pays over the course of 12 months, how large copays are sometimes and the fact that often more than just a co-payment will apply to one medical treatment. You shouldn’t assume that you will probably have to keep paying copayments even after you have met your medical insurance policy’s stop loss provision. You may also be very disappointed to discover that some co-pays can be $500. Another little tidbit that you don’t want to be hurt by is the fact that in certain situations both a copayment and a deductible can apply to the same heath care expense.

It is important to understand all not just the way your co-payments work but the other medical insurance cost shares such as deductibles and coinsurance as well. Many consumers make assumptions about their health care insurance and get surprised when then have a big medical bill they have to pay. Don’t let this happen to you.

Health care insurance copays are different from deductibles and coinsurance. Both of the others are usually based on expenses over an annual time period. Co-payments are assessed on a per incident basis.

If you assume that once you have met your policy’s deductible and maximum-out-of-pocket limitations that you will not have to pay any more co-pays, you will probably be wrong. Many if not most health insurance co will have nothing that limits the number of co-payments you can pay over the course of 12 months.

Another misconception is the belief that copays are always small. This is because the typical co-payments that most insurance policyholders pay are the relatively small dollar amounts that they might pay in health care professional’s office or in the pharmacy. These co-payments are relatively insignificant for most policyholders.

However, many medical insurance co assess large copays for other medical services. You may pay a $50 copay for each visit to a walk-in clinic. You could pay a $100 co-pay for each visit to the ER.

When purchasing medical insurance be sure that you don’t assume that all contracts are the same. You may find that you have to pay both a deductible and a co-payment for certain services. You may discover that there is a separate deductible for name brand prescriptions. These provisions arent in every plan, but they exist in enough of them to make it prudent to read your plan’s literature closely.

Appreciating how your policy works is essential to knowing if you are getting a good deal of if you should start shopping for another policy. Medical insurance contracts are often confusing and can take some effort to understand, however not knowing what you are getting usually means that you pay too much for your plan.

Health Care insurance copays aren’t always small insignificant fees you pay in health care professional’s office or pharmacy. Be sure that you understand how your co-payments are assessed in any policy you are considering purchasing before you sign your name on the dotted line.

Source by Alston Balkcom

A first-of-a-kind, three-year, community-wide wellness initiative is being launched in the city of Solon by Medical Mutual of Ohio, a leading provider of Ohio individual health insurance. Called “Healthy Solon,” this project involves screening citizens for illness, tabulating data on illnesses and the rate of occurrence, and recording the results of any treatments people choose to undergo.

Paula Sauer, Medical Mutual’s vice president of Care Management, said the health of Solon residents will be tracked over the duration of the three-year wellness initiative.

“Through an early health risk assessment (HRA), residents will have the opportunity to identify a potential health issue,” said Sauer. “Health awareness and early detection programs will figure prominently in the first year of the pilot program. Solon residents will be offered blood pressure and cholesterol screenings, along with heart disease, diabetes, lung, skin and prostate cancer screenings,” said Sauer. “Residents will also be encouraged to take part in walking for wellness programs, cooking and nutrition demos, smoking cessation, and stress prevention.”

While Medical Mutual will not be including treatment or medication for any illness discovered during the screening process, it will advise participants of treatment options, allowing them to assess their Ohio healthcare insurance plan for appropriate inclusion

Sauer said at the conclusion of the three-year pilot program, benchmarks will have been established to measure the health of Solon citizens and the overall success of this effort. “Through screenings and HRA’s, if we identify one person at risk or get one person to quit smoking, we will have done our job,” said Sauer.

In addition to Medical Mutual, others supporting Healthy Solon include: Cleveland Clinic Solon Family Health Center, Solon City Schools, Hillcrest Hospital, South Pointe Hospital, AstraZeneca and Pfizer.

Founded in 1934, Medical Mutual of Ohio is one of the oldest health insurance companies in America. Based in Cleveland, Medical Mutual serves its customers through high-quality, flexible, and affordable group and personal health insurance plans, and third-party administrative services to self-insured group customers. Medical Mutual offers a full-line of products, including Health Maintenance Organization (HMO), Health Savings Account (Ohio HSA Health Plans), personal vision insurance, and individual dental insurance. SuperMed One, Medical Mutual’s personal health insurance product has a variety of deductibles, coinsurance, and co-pays to meet the needs of any individual or family.

Source by chris walker

If you rent an apartment, you may believe that the apartment building insurance will protect your belongings in the event of a fire, flood, theft or other catastrophe.  However, this assumption would be incorrect.  Renters insurance is the only way to ensure that your belongings are protected from harm.  What should you know about renters insurance?  What types of protection can you find with this insurance?

You will find a wide range of different types of protection available with different providers.  For instance, you can choose fire and/or lightning hazard protection.  You can also choose from theft, vandalism, water damage, smoke damage, wind damage and numerous other options.  In addition, you will find that most renters insurance policies cover medical payment coverage for anyone injured in your home that does not live there.  This can be a lifesaver if someone has an accident in your home.  You might believe that the apartment building insurance will protect you here, but this is not the case at all.

Where should you get renters insurance?  You will find a wide range of different insurance companies out there that can help you with this need.  However, not all insurance companies are created equal.  You will need to choose the right provider so that you are protected.  Regardless, not relying on apartment building insurance is essential.  When choosing a provider and policy, first look into the insurance company.  Is the company one that you know?  Do they have a good history with their customers?  What is their reputation where claims are concerned?

Many “budget” companies are slow to pay insurance claims, or try to deny claims made by their customers.  This is obviously a poor scenario.  With a bit of research, you can ensure that you do not fall victim to this type of company.  Of course, you will also need to look into the policy in question. The amount of protection afforded your possessions should be enough to replace them if you had to repurchase them today.  In addition, you should make certain that your furniture, electronic equipment, jewelry and all other items are covered by the insurance plan.  Apartment building insurance will not protect you, but the right renters insurance will.

As a final note, check out what “named perils” are covered on the insurance plan.  Not all insurance companies offer all forms of coverage and other companies charge extra for certain types of coverage, so know what you are getting.

Source by Ross Quade

Indemnity health insurance plans are more regularly known as traditional health insurance plans. These health insurance plans can be costly but often cover most health problems that may arise, while other insurance plans exclude some illnesses or diseases from their coverage.

Some disadvantages to indemnity plans are that they do not usually cover preventative health care like physicals, and traditional health insurance plans often cover only a percentage of your bill. Research the advantages and disadvantages to indemnity health insurance when you are considering health insurance options.

While the disadvantages may seem problematic, there are many advantages to indemnity health insurance plans. You may have a higher monthly premium and you may need to pay upfront costs and submit claims paperwork, but your deductible will be more manageable and your coverage will be wider. Some health insurance plans will not cover certain medical expenses or care, but indemnity plans often do.

Another benefit of indemnity health insurance plans that many people desire is the freedom to choose your own physician. While other health insurance plans offered by the insurance industry limit your choice of physicians and hospitals to a list of preferred providers, indemnity insurance will cover any physician or hospital. This benefit may seem unworthy of mention, but there has been more than one instance where a mother finds that her son or daughter’s pediatrician is not in their preferred provider network and has to search for another pediatrician. This also means that you can see a specialist without having to consult with your primary care physician first.

Overall, indemnity health insurance plans also offer you the best emergency medical coverage in the industry. While preferred provider organizations (PPOs) or point-of-service (POS) plans limit the physician you can see to a list of network physicians and hospitals, the freedom of choosing any physician is nationwide with indemnity health insurance plans. This means that if you are traveling across the country and have an accident or a medical emergency, you can go to the nearest hospital or see the closest physician without worrying about the expense.

There have been instances where hospitals or physicians will either refuse to treat patients or treat them only minimally because the hospital or physician is not inside the plan’s preferred provider network, meaning that the patient’s health insurance will only cover a small part of the expense and the patient is liable to pay the rest of the bill. This is a risky financial situation for the physician and/or hospital since patients are often unable to fully pay costly medical bills.

With indemnity health insurance plans, this is almost never the case. Consider this and the other benefits of indemnity health insurance when choosing the plan that is right for you.

Source by Albert Alexander

The recent Florida property insurance law passed by the Florida Legislature and signed by Governor Charlie Crist was an important step towards improving the financial stability of the Florida insurance system. It allows Florida’s state run insurance company – Citizens Property Insurance Corporation to start raising its rates as much as 10% per year starting in 2010 as part of a multi-year process to move the company towards more actuarially sound rates. Private Florida home insurance companies will also be able to get rate increases in the future as they purchase more reinsurance from the private market instead of from the Florida Hurricane Catastrophe Fund.

The bright spot is that the Florida insurance system will be on a much stronger financial footing in the coming years if the state can continue the limited hurricane activity it has enjoyed during the past few years – something that has to happen to improve the chances that most Florida home insurance companies can make good on their promise to pay your hurricane claim quickly and fairly.

The bad news is the fact that all of us will be facing up to a 10% increase in Florida homeowner insurance rates. A rate increase of 10% might not sound like much of an increase in other states but in Florida the situation is much different. These increases will be based on higher premiums already in effect after the major rate increases approved after the 2004/2005 Florida hurricanes. Even before the coming 10% increase, consumers in Florida were already paying the highest home insurance rates in the country.

The rate increases could not be coming at a worse time. To begin with, Florida is in the middle of a financial crisis just like the rest of the country with depressed real estate, bankruptcies, foreclosure, and increases in unemployment. These rate increases are going to start happening at the exact same time that State Farm Florida will start cancelling up to 30,000 policies per month as they start exiting the Florida property insurance market. Our subscribers who presently have their insurance with State Farm are telling us that finding comparable coverage with another Florida home insurance company may cost them up to 200% more after they lose their coverage with State Farm.

So what is the bottom line for you as a Florida homeowner insurance consumer as we move through this challenging period?

First you have to understand that while there are only about 40 Florida home insurance companies still writing new business, if you shop around you have a good chance of finding 5-10 companies that are still willing to cover your home – even if it is an older home or has close proximity to the coast.

It is very important for you to shop your Florida home insurance policy with more than one independent agent – someone who represents multiple Florida homeowner insurance companies looking for your business. Contacting multiple independent agent will ensure that you are able to get quotes from all the companies in your county who want to cover your home – not just the Florida home insurance companies carried by a single agent.

Also, you have to do due diligence and research on all of the Florida homeowners insurance companies that you are getting quotes from. The 40 companies still willing to write new business vary greatly in terms of their size, financial resources, insurance industry experience, and customer service history. It is important that you ask your agent how each of the companies you are considering is performing in each of these areas.

As you come up with a short list of companies, work with several independent Florida insurance agents and make sure that you have received quotes from all the companies in your county that are interested in covering your home. As you evaluate the quotes, don’t buy the Florida insurance for your home simply on price. Find the right balance of financial stability, outstanding customer service, and the price of the policy. After all, paying a low price for Florida home insurance isn’t really a bargain if the company you pick pays slowly and won’t pay the full amount that you need to repair the damage to your home after a Florida hurricane?

There is little doubt that these recently approved increases in Florida home insurance will be very difficult to swallow and the timing is very bad. However, if you take the time to find all of the Florida home insurance companies that are interested in covering your home, you might be able to fight off all of the 10% increase while everyone else has to pay up. Your research can save you thousands!

INVESTMENT GRADE INSURANCE EXPLAINED

There are several subjects in this world that interest me tremendously, and at the base of them lay logic, science, mathematics, and the ‘not-so-common’ common sense.  Perhaps some of these things interest you.  Do you like any of the CSI television shows?  How about the others of a similar genre like Law & Order?  Forensic Files?  Or Cops?  At the root of all these shows is the collection of clues, evidence, and gut feelings, all of which, when assembled, tell a story and hopefully convict the wrongdoer or exonerate the innocent.

Well, I am going to use all of these ideas and techniques to present to you what I believe to be the single most important piece of evidentiary data, concrete proof as to the safety of Indexed Universal Life Insurance Contracts (IULs), when they are being used as cash accumulation vehicles for a tax-free retirement that one can never outlive.  What is this evidence, you ask?  It is a term/phrase that is used to describe the most important thing to an insurance company (or for that matter, any company or private person).  The technical term or phrase used is:  Net Amount At Risk (NAAR) and it refers to the insurance company’s risk, not that of possibly you, the contract holder, and risk to the company can mean loss of money.

Let me ask you a couple of questions.

Have you seen the size of some of the insurance company’s buildings?  Of course you have.  How about this:  do you think that the insurance companies want to lose money?  No way!

That is why I am willing to bet my right arm that you answered “yes” and “no” respectively to the questions above.  Well, let me tell you, you would be right by saying so.  Insurance is a 400 year old industry with a less than 1% failure rate; no other industry has that kind of success!  Why?  It is because of math and science.  They probably hire more statisticians, actuaries, and mathematicians than NASA (not a verified statement, but you get the point).  Anyway, I would expect that to be true.

Now back to NAAR (Net Amount At Risk).  Here is what it means.  Let us say you are a small business owner and you are looking to set up a non-qualified private pension using a properly structured investment grade insurance contract as your vehicle for cash accumulation and tax-free monies on distribution at retirement.  Let us also say you are a 42 year old non-smoker in good health and you want to fund it with the statistical average of $1,000 per month.  Well instantly, the moment you fund your contract with your first $1,000, the insurance company MUST cover you with a $ 606,466 guaranteed death benefit.  So in this case, the immediate Net Amount At Risk is $ 605,466!  That means you put in $1,000, and if you die, the insurance company MUST pay your beneficiaries a tax-free death benefit of $ 606,466.  Do you understand the underlying implications of this?  Do you think that this is a position that the insurance company enjoys being in?  How about you?  Would you like to be in that financial position?  That is exactly the point.

Now the evidence is mounting, and I think you are getting an idea of where this is going.  At the end of the year you will have put $12,000 into your contract, and if you die, the insurance company must pay out $ 606,466. At this point, your surrender or cash value is $ 0 because of the relatively high up front surrender charges (charges which in addition to helping to make all the numbers work out, actually help encourage you to stay true to your long-term plan for retirement).  As time goes by, and the conservative projections of your cash value grow, the gap between what is in your account and what the company has to pay out upon your death decreases substantially.  In other words, the insurance company’s Net Amount At Risk goes DOWN!

Let us look at the numbers in year 15:  the cash value is $251,894 at this point and remember the death beneift is still $606,466.  See how the cash value and the death benefit compare?  There is quite a difference between that amount now and when we first started, isn’t there?  How do you think the insurance company feels about that smaller gap?

Now look at year 25:  $733,050 is the cash value and the death benefit has climbed to $857,669 (to comply with the IRS ratio for tax-free treatment).  Look again at the cash value and the death benefit.  The gap has become very, very small now hasn’t it?

Yes it has, and at that age (67 years old), it is as small as allowable by the IRS to qualify for the tax-free treatment of the insurance contract.  How do you think the insurance company feels at this point?  You know it!!!  It loves being in this position!

Now, let me ask you, what if they messed up and did not do their projections correctly and your cash value ended up far less than projected?  Who would lose the most when you die?  Right!  The insurance company would, and as you know, insurance companies don’t lose!  Add to that the fact that our gains (the contract holders, yours and mine) are handcuffed to the gains of the insurance company.  Doesn’t it stand to reason that our money has a very good chance of being there when we need it?  You’re darn right!

Now, can you think of any other vehicle to put your hard earned money in, where the company that is holding your money  has a direct and vested interest in your cash value being there when it says it is going to be there?

In other words, can you think of any other company that will lose MORE than you if it is not right?  Nope, neither can I, and that is why I believe that Indexed Universal Life Contracts (IULs) are the safest place anyone can put his/her money. Evidence, math, science and common sense all say it will be there.  Add to that the tax-advantaged growth, and tax-free money on distribution and you have yourself what I think is the best vehicle on the market for a safe and secure retirement income that you can never outlive.

Source by Gregory