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A 65 year old man intends to use his retirement funds to purchase an annuity from a life insurance company.?

admin — Sat, 17 Jul 2010 18:01:28 +0000

given the amount of money the man has available to invest, the insurance company is able to offer two alternatives. the first option is to receive $2785 each month for as long as he lives; the second option is to receieve $3500 each month, but for only 20 years (payments will be made to his estate if he should die before that time) the relevant interest rate is 6 percent per year. how long must the man live so that the first option is a better deal?

can someone plz help me answer this question for my finance assignment?

Let:
p be the amount of each payment,
r be the fractional interest rate per year,
n be the number of years,
k be the number of payments and compounding periods per year,
s be the sum invested.

The present value of payments is the sum of a geometric series with first term p and common ratio (1 + r / k)^(-1):
s = p sum(i = 0 to nk – 1) (1 + r / k)^(-ki)
s= p(1 – (1 + r / k)^(-nk)) / (r / k)
s = (pk / r)(1 – (1 + r / k)^(-nk)) …(1)

Solving for n:
sr / kp = 1 – (1 + r / k)^(-nk)
1 – sr / kp = (1 + r / k)^(-nk)
log(1 – sr / kp) = – nk log(1 + r / k)
n = – log(1 – sr / kp) / k log(1 + r / k) …(2)

For the 20 year option, (1) gives:
s = (3500*200)(1 – 1.005^(-240))
s = $488,532.70

For the lifetime option, (2) gives:
n = – log(1 – 488,532.70 * 0.06 / (12 * 2785)) / 12 log(1.005)
n = 35.02yr.

Is London Life Insurance Company any good?

admin — Sat, 17 Jul 2010 07:01:06 +0000

If anyone has heard or is currently using London Life Insurance Company, please respond by saying what you know, if you think its good or bad, and what your opinion is. Write as much as you like, the more the better. and.. By London Life Insurance Company I am talking more so about investments. but anything you know about it would help me a lot. I am in the midst of deciding to use there company’s services or not.

Never used it, but here is some info.

http://www.londonlife.com/002/Home/index.htm

You may want to invest with a brokerage instead of an insurance company.

How can a life insurance company know if you smoke cigarettes if you quit one week prior to the exam?

admin — Sat, 17 Jul 2010 07:01:00 +0000

Can i quit smoking one week before my insurance company medical exam and my test results be negative?

If so, what happens if I die from lung cancer 20 years later? Will the insurance company protest or pay up?

Moral aspects of lying on the application are one part of the issue.

1. The technicalities though are such that the medical test will not show anything after 3 days of not smoking – I have read an article on that.

2. Contestability period is limited to 2 years in California and many other states (insurance is regulated at the state, not federal level). For insurance company to contest the policy the person should die from smoking, not from another cause.

3. Since insurance fraud happens allot it is being calculated into the premium – we all are paying for that insuring cars, homes, autos and lives.

what are sales management activities of reliance life insurance company ltd?

admin — Sat, 17 Jul 2010 07:00:53 +0000

hii friends, im a student of MBA.im doing project work on sales management in RELIANCE LIFE INSURANCE COMPANY LIMITED. I need information about sales management in reliance life insurance. its very urgent for me. so plz help me.thanks

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a 65 year old man intends to use his retirement funds to purchase an annuity from a life insurance company.?

admin — Sat, 17 Jul 2010 06:57:10 +0000

can someone please tell me how to answer this question?
i need answer to this question for my finance assignment!!!

Life insurance companies are NOT investment firms — don’t get suckered.

Find yourself a good investment consultant who does not work on commission. You’ll probably have to pay him a couple hundred buck for advice, but you know it will be more balanced.

What is a cheap life insurance company- I can purchase online?

admin — Sat, 17 Jul 2010 06:57:06 +0000

I just need something to hold me over til my next job which hopefully will offer group life insurance. Give me the company name or website- not some blog or comparison site. The company name is worth 10 Pt’s Thanks

Try this site

affordinsurance.notlong.com

Here you can compare quotes from different companies

does anyone work for a big life insurance company?

admin — Sat, 17 Jul 2010 06:57:01 +0000

I had a call from a life insurance company asking me if I was my former husbands wife at the time of his death. which by the way was 6 and 1/2 years ago. any way they asked me a few questions and told me that because he was divorced from his ex wife at the time of his death that voided her out as the one who could claim the death benefit. and because I was his wife then he needed my info, he said he would call me back in a few days to let me know about the proceeds. I was very stunned and like an idoit didn’t get anymore info, like a phone# or what company. But can a divorce over ride a listed benefeciary, does this sound right? I work for an insurance company and that’s not how our life policies work. whoever is listed, divorced or not gets the death benefit.
I didn’t give any personal info, they asked if I was his wife at the time of death and if I was remarried or if my last name was the same and if I toolk care of the estate at the time of his death. those were the only questions they asked.
I just read that there could be a clause that says the bebeficary must be married at the time of death. which if his ex was listed they weren’t married anymore. we were. sound correct?

I used to work for the largest insurer in the U.S. — and one of the largest in the world. If the beneficiary designation simply stated "my wife," then the Company is correct (but this is VERY rare, since usually underwriters catch and correct this prior to the policy being issued); but if it reads "Jane Smith, relationship: wife," then the insurer is incorrect. While she was no longer his wife when he died, he left her as beneficiary, which is his right. (The "insurable interest" issue is only important at the time the policy is purchased.) If the insurer pays you, she’ll sue (and rightfully so) and it’ll end up having to pay her, too. The majority of insurers know this and avoid beneficiary disputes by paying the benefit to a court and filing what’s known as a "request for interpleader." This means the insurer essentially asks the court to determine which party is the correct beneficiary.

This situation seems VERY suspicious to me. If they ask for any personal information, such as your social security number, DON’T give it to the caller until you are able to independently confirm this is all true.

Which is the best life insurance company in US?

admin — Sat, 17 Jul 2010 06:56:52 +0000

Which company is the best when it comes to buying life insurance?

You can easily check life insurance quotes in internet, for example here – lifeinsurance.awardspace.info

How can we find out which life insurance company …?

admin — Sat, 17 Jul 2010 06:51:03 +0000

My grandmother died and left a life insurance policy with my mother named as the beneficiary. She died before she has the chance to tell my mom which company the insurance was with. Is there a way to find this out?

It’s private information, so there’s no database. Your mom will have to go through her valuable papers and cancelled checks, to see which insurance company she had been paying.

Don’t forget to file for the one-time Social Security death benefit.

How do fight life insurance company?

admin — Sat, 17 Jul 2010 06:50:59 +0000

I was trying to put my finance in order. I called People Life Insurance and got Monumental. They claim I have a loan on these policies. I said I never received a bill from Monumental.
From People Life Insurance I received letter stipulating that these polices were fully paid and never heard from them again. I have a complaint with the company. better business bureau and the US post office. What else can I do?

Well, I don’t know what the POST office has to do with it. What are you trying to do with the policies, cancel them??

You need to write to Monumental, ask them to mail to you a copy of the loan papers, or a statement of your account, so you can review it at your leisure. THEN you need to write to your state insurance department, and put a complaint in with THEM. They are effectively the only people who can do something about it. Your complaint would most likely be, that the insurance company claims verbally that there’s a loan (which reduces the payout amount in case of your death), however, you have no memory of it, and they haven’t supplied you with any documentation. Once the insurance department gets involved, things usually resolve in about 6 weeks.

If you DO get the documentation, you’ll have to review it, and see about the loan.

It is possible that the policy was "set up" to automatically borrow from any existing cash value to pay premiums, as long as you aren’t paying them, until it dwindles away to nothing and finally cancels.