Find Great American Life Insurance Companies

What To Know About Insurers In The US

Most insurance in the US is regulated at the state level. There are some federal laws, but each of the 50 state insurance departments govern most of business conducted by companies in that particular state. This means that, even if a company is national or international, policies and prices will vary from state to state. Even the way that insurers are allowed to market their products is regulated at the state level.

That is why most insurance quote forms will ask you for a zip code first. The system needs to know where you live in order to come up with accurate quotes from local companies. The life insurance policy that your twin brother in Arizona bought may not be on the market in New Jersey. Even if it is on the market, you may not get the same deal that he did.

Find Great American Life Insurance Companies!

You may remember how hard it used to be to shop for a life policy. You may have to call around to set multiple appointments with many different agents. This could take a lot of time. It could be confusing to compare policies and premiums. In fact, it could even be pretty stressful since you also had to endure a lot of sales speeches.

The 21st Century Way to Compare US Insurance Companies

The net has made a lot of insurance shopping a bit easier. You have access to a lot of online information if you know what to look for. Simple and free online quote forms can give you competitive rates and plans before you have to speak with anybody. You are still free to speak with a professional agent in your area, and we advise most people to do this before they make a final buying decision. However, these days, many companies allow you to quote, compare, and even purchase American life insurance online!

Lists of The Best US Life Insurance Companies?

You have probably seen a lot of lists which attempt to rank insurance companies based upon different criteria. They usually compare prices, customer service, financial stability, and claims. These lists can be very interesting, however we are not sure that they are very useful to the average consumer who just wants to shop for a policy.

First, most insurance is regulated at the state level. If you look at a national list for your whole country, you may be looking at several insurers who do not even do business where you live. Rates and particular policies will also be local. This means that you can be sure that Life Insurance Company X is cheapest for you just because it is cheapest for your identical twin who lives in another state.

Another reason that lists of insurance companies may not be that useful is because you may have some particular needs that will be better served by a niche company that is too small to make a top 10 list. For example, some insurers may specialize in serving older people. Another may have a great variety of term or mortgage life insurance policies for younger families. It is important to find the company that serves you, and your family, the best.

Another issue with these lists of top life insurance companies is the fact that so many smaller insurers are actually owned by larger companies. When you actually trace these companies up the ladder, you tend to find that a few parent companies keep popping up as the owners.

How To Find Information On US Life Insurance Companies

One of the easiest ways to find out a lot about insurers in your area is by checking with your own state’s insurance department website. Many of these sites are very useful resources, and they exist to serve you! You can find the valid insurers in your state, complaints records, and get contact information if you want to check out any companies or agents.

International Health Insurance Information

We have all seen the cost of health insurance continue to get more and more expensive. As a result many people are looking into International health insurance coverage programs. It just isn’t worth not having any insurance at all because it only takes on medical emergency for you to find yourself several thousands of dollars in debt. You don’t want to have a financial obligation like that hanging over you head. You can find some affordable health insurance options if you take the time to compare the prices and the coverage.

International insurance is not available to citizens of the United States unless they aren’t currently residing in the United States. Some of the different International health insurance providers have age limits in place as well. No one over 65 is offered new coverage. Make sure you look at the details of what is being offered to you before you commit to any health insurance policy.

Before you will be approved for International health insurance you need to complete a detailed questionnaire. You will need to provide complete information about your entire medical history. This includes your past medical problems as well as any ongoing medical needs you currently have. Once the provider has reviewed this information they will be able to determine if you are eligible for coverage as well as the right program for you.

It is very important that you are completely honest with the questionnaire as you complete it. Don’t omit information in an effort to get a better rate on your health insurance. If you don’t disclose information and it is discovered they can cancel your policy.

After you have completed the questionnaire and spoken to a health insurance representative you will get information on the available coverage. There are limits to the coverage of such insurance, especially while you are traveling to the United States. The cost of the International health insurance that is offered to you will depend on your age, the coverage you are interested in, and the deductibles that apply to your insurance plan. You can get plenty of free quotes on International health insurance so you can select the one that is right for you.

Save Taxes – Basics of an Irrevocable Life Insurance Dynasty Trust

For US persons, an irrevocable life insurance trust (ILIT) is arguably the most efficient structure for integrating tax-free investment growth, wealth transfer and asset protection. An ILIT comprises two main parts: (1) an irrevocable trust; and (2) a life insurance policy owned by the trust. An international (or offshore) ILIT is a trust governed by the law of a foreign jurisdiction that owns foreign-based life insurance. An offshore ILIT is better than a domestic ILIT because it is more flexible and less expensive. Regarding US tax laws, a properly designed international ILIT is treated virtually the same as a domestic ILIT.

An ILIT becomes a dynasty trust (or GST trust) when the trust’s settlor (or grantor, the person who establishes and funds the trust) applies his lifetime exemption for the generation skipping transfer tax (GSTT) to trust contributions. Once a dynasty trust is properly funded by applying the settlor’s lifetime exemptions for gift, estate and GST taxes, all distributions to beneficiaries will be free of gift and estate taxes for the duration of the trust, even perpetually. The individual unified gift and estate tax exemption and the GSTT exemption are both $5 million ($10 million for a married couple) during 2011 and 2012, which are the highest amounts in decades.

Under the US tax code, no income or capital gains taxes are due on life insurance investment growth, and no income tax is due when policy proceeds are paid to an insurance beneficiary upon death of the insured. When a dynasty trust purchases and owns the life insurance policy and is named as the insurance beneficiary, no estate tax or generation skipping transfer taxes are due. In other words, assets can grow and be enjoyed by trust beneficiaries completely tax-free forever. Depending on how a trust is designed, a portion of trust assets can be invested in a new life insurance policy each generation to continue the cycle.

Private placement life insurance (PPLI) is privately negotiated between an insurance carrier and the insurance purchaser (e.g., a dynasty ILIT). Private placement life insurance is also known as variable universal life insurance. The policy funds are invested in a separately managed account, separate from the general funds of the insurance company, and may include stocks, hedge funds, and other high-growth and/or tax-inefficient investment vehicles. Offshore (foreign) private placement life insurance has several advantages over domestic life insurance. In-kind premium payments (e.g., stock shares) are allowed, whereas domestic policies require cash. There are few restrictions on policy investments, while state regulations restrict a domestic policy’s investments. The minimum premium commitment of foreign policies typically is US$1 million. Domestic carriers demand a minimum commitment of $5 million to $20 million. Also, offshore carriers allow policy investments to be managed by an independent investment advisor suggested by the policy owner. Finally, offshore policy costs are lower than domestic costs. An election under IRC § 953(d) by a foreign insurance carrier avoids imposition of US withholding tax on insurance policy income and gains.

Whether domestic or offshore, PPLI must satisfy the definition of life insurance according to IRC § 7702 to qualify for the tax benefits. Also, key investment control (IRC § 817(g)) and diversification (IRC § 851(b)) rules must be observed. When policy premiums are paid in over four or five years as provided in IRC § 7702A(b), the policy is a non-MEC policy from which policy loans can be made. If policy loans are not important during the term of the policy, then a single up-front premium payment into a MEC policy is preferable because of tax-free compounding.

An offshore ILIT provides much greater protection of trust assets against creditors of both settlor and beneficiaries. Courts in the US have no jurisdiction outside of the US, and enforcement of US court judgments against offshore trust assets is virtually impossible. Although all offshore jurisdictions have laws against fraudulent transfers, they are more limited than in the United States. In any case, an offshore ILIT is necessary to purchase offshore life insurance because foreign life insurance companies are not allowed to market and sell policies directly to US residents. An international trust, however, is a non-resident and is eligible to purchase life insurance from an offshore insurance carrier.

An international ILIT may be self-settled, that is, the settlor of the trust may be a beneficiary without exposing trust assets to the settlor’s creditors. In contrast, in the United States, the general rule is that self-settled trusts are not honored for asset protection purposes.

In Private Letter Ruling (PLR) 200944002, the IRS ruled that assets in a discretionary asset protection trust were not includable in the grantor’s (settlor’s) gross estate even though the grantor was a beneficiary of the trust. The trustee of a discretionary trust uses his discretion in making distributions to beneficiaries consistent with trust provisions. Previously, it was questionable whether a settlor could be beneficiary of an ILIT without jeopardizing favorable tax treatment upon his death. The new ruling gives some assurance to a US taxpayer who wants to be a beneficiary of a self-settled, irrevocable, discretionary asset-protection trust that is not subject to estate and GST tax. As a result, the trustee can (at the trustee’s discretion) withdraw principal from the PPLI or take a tax-free loan from the policy’s cash value and distribute it tax-free to the settlor, as well as to other beneficiaries. In other words, a settlor need not sacrifice all enjoyment of ILIT benefits in order to achieve preferred tax treatment.

An offshore ILIT is designed to qualify under IRS rules as a domestic trust during normal times and as a foreign trust in case of domestic legal threats to its assets. The offshore ILIT is formally governed by the laws of a foreign jurisdiction and has at least one resident foreign trustee there. As a “domestic” trust under IRS rules, the trust also has a domestic trustee who controls the trust during normal times. If a domestic legal threat arises, control of the trust shifts to the foreign trustee, outside the jurisdiction of US courts, and the trust becomes a “foreign” trust for tax purposes. A domestic trust “protector” having negative (or veto) powers may be appointed to provide limited control over trustee decisions. An international ILIT protects trust assets against unforeseen lawsuits, bankruptcy and divorce.

The objective of PPLI is to minimize life insurance costs and to maximize investment growth. The life insurance policy acts as a “wrapper” around investments so that they qualify for favorable tax treatment. Nevertheless, PPLI still provides a valuable life insurance benefit in case of an unexpected early death of the insured.

Initial costs of setting up an ILIT are high, but are recouped after a few years of tax-free investment growth. Initial legal and accounting fees are typically in a range of $25,000 to $50,000. Premium “loading” charges are in a range of about 3% to 5% of premiums paid into offshore PPLI (compared to 8 – 10% in domestic PPLI). Annually recurring charges depend on policy value and vary widely among PPLI carriers, so careful comparison shopping is advised. For example, annual asset charges should be in a range of about 40 to 150 basis points (0.4% to 1.5%) of the policy’s cash value. The annual cost of insurance is not substantial and declines over time. Annual costs for maintaining an offshore trust are several thousand dollars. Finally, investment manager fees are paid regularly out of policy funds.

Cash may be contributed to the ILIT, which then purchases PPLI. If asset protection of vulnerable fixed assets in the US is a concern, then equity stripping can be used to generate cash, which is then contributed to the offshore ILIT. Of course, stocks and bonds and other assets may also be contributed to the ILIT and used for investing in PPLI. Various value-freezing and valuation discounting techniques can be used to leverage the GSTT exemption.

An offshore “frozen cash value” policy is a variation of PPLI governed by IRC § 7702(g). The minimum premium commitment is about $250,000. During the life of the insured, the cash surrender value is fixed at the sum of the premiums paid. Withdrawals up to the amount of the paid-in premiums are tax-free, but cash value in excess of the premium amounts is inaccessible until after death of the insured.

Another alternative investment for an ILIT is a deferred variable annuity (DVA). There is no cost of insurance, so investment growth is faster. Tax on appreciation is deferred, but DVA distributions are taxed as income.

Generally, for public policy reasons and because the insurance industry possesses strong political influence, life insurance has long enjoyed favorable tax treatment. Over the past two decades, numerous IRS rulings have clarified the tax treatment of PPLI and irrevocable discretionary trusts. At the same time, strong, new asset protection laws and reliable service providers in numerous foreign jurisdictions have enabled safe, efficient and flexible management of international trusts and insurance products. As a result, an international irrevocable, discretionary trust owning PPLI can provide tax-free growth of a global, variable investment portfolio managed by a trusted financial adviser in full compliance with US tax laws. At the discretion of the trustee, trust assets (including tax-free insurance policy loans and withdrawals) are available to the settlor during his lifetime. Upon death of the insured, policy proceeds are paid tax-free to the trust. Thus, a well-managed life insurance dynasty trust perpetually secures the financial well being of settlor, spouse, children and their descendants.

Warning & Disclaimer: This is not legal advice.

Copyright 2011 – Thomas Swenson

Looking For the Reassure America Life Insurance Company Website

For a lot of life insurance policy holders, they get a lot of their valued information from their insurance’s website. Once there is no website to be found, there can be a lot of panic. You may find this to be your case with the Reassure America life insurance company website. If you try and search for their website, you will not find it. You may fear that you have been scammed. However, there is no need to worry. They have not scammed you for your money.

The reason why there is no website is that Reassure America has merged with a reputable firm Swiss Re. This reputable international insurance firm has been around since 1863. They are the world’s biggest reinsurers. They operate in over 20 countries around the world. Not only is this international the biggest; they are the recipients of various awards when it comes to insurance excellence. There is no other firm that can rival this company’s achievements.

Reassure may not have its own website as of now, but you are assured that they have the financial backing to take care of your insurance needs. You never have to worry about being scammed by a fly-by-night company. They can offer you the best care possible. There is no more need to panic. You can now ease your mind.

Through Reassure, you are assured a bright future for you and your family. In any case something happens to you or the inevitable happens, you are sure to leave them a significant amount to provide them their needs. Your spouse will be protected; your children will be protected, and their future will be protected.

This insurance firm has the best financial backing compared to many companies. This is one of the reasons why they do not need a Reassure America Life Insurance Company Website.

AIG Life Insurance

AIG, or the American International Group, Inc. is a world leader in financial services providing, including life insurance. AIG is–or was up until very recently at the time of this writing–the leading international insurance organization, having operations in over 130 nations and jurisdictions. AIG companies provide commercial, institutional, and individual financial services through the most extensive worldwide property-casualty and life insurance networks of any insurance company, although they are being closely competed with by MetLife. What’s more, AIG companies are leading providers of financial services and asset management across the globe. AIG has its common stock listed on the New York, Ireland and Tokyo stock exchanges.

AIG’s member companies in the life insurance industry include: AIG American General in Houston, Texas; American General Life and Accident Insurance Company in Nashville, Tennessee; and The United States Life Insurance Company in the City of New York.

However, AIG has recently taken extremely heavy financial harm to itself because part of its financial services included underwriting and buying subprime loans and lending to other financial institutions who did the same. This leaves many people wondering about the financial stability of AIG.

AIG is in fact planning to sell its three life insurance units in Japan. These sales could total close to $10 billion. AIG now owes $85 billion to the United States government.

AIG intends to sell shares in American Life Insurance Co (ALICO), AIG Star Life Insurance Co, and AIG Edison Life Insurance Co.

“It would be hard for a single domestic insurer to make the acquisition by itself,” a senior official at a major life insurance company was quoted by the Japanese business daily Nikkei as having said.

“We know absolutely nothing regarding [who the potential buyers are],” says Tokyo AIG spokesman Fumiyasu Sato.

AIG has also announced plans at the time of this writing to sell at least most of its life insurance and retirement asset management affiliate companies in the U.S., Europe, and Latin America, and in fact the vast majority of all of its businesses with the notable exception of certain of its core property and casualty insurance businesses in its attempts to pay back the U.S. federal government for preventing it from having to declare bankruptcy. Where not long ago AIG’s stock traded at over $70 a share on the New Yorks Stock Exchange, it now trades for less than $4 a share.

AIG spokesman Peter Tulupman has said, “Literally, everything else that doesn’t fit under that definition, we are considering for sale.”

“We won’t exactly be the AIG of old, but we’ll have a very secure position. This is going to be a formidable company that emerges from this,” says AIG CEO Edward Liddy.

However, more than one economist is concerned that at least for now AIG is going to have some trouble getting rid of its life insurance and most other businesses. “He’s trying to refocus AIG to be a true insurance company. The question is, with current market conditions, will there be reasonable bids? If he doesn’t generate enough cash to pay off the loan, then everything comes tumbling down,” says Rob Haines, a debt analyst at CreditSights Inc.

However, AIG is going to do everything it can to retain a majority stake in its American International Assurance Co. life insurance unit. “The businesses we are retaining could not be re-created today,” says Liddy, who once upon a time was the CEO of Allstate Insurance Co. and was appointed by the US government to take the helm at AIG. He is confident that the sales he is orchestrating will bring in more than enough revenues to repay the feds while also securing the interests of the company’s shareholders.

Both Moody’s Investors Service and Standard & Poor’s, two of the most respected independent insurance and financial services rating agencies, have downgraded AIG’s ratings; both raters cited the fact that AIG has borrowed extremely heavily against its credit line and that the amount borrowed exceeds what was anticipated, and Liddy’s sales attempts are fairly risky.

It is probably advisable for those who hold AIG life insurance policies or annuities to watch and see who, if anyone, buys AIG’s life insurance businesses, and to see if the company does retain its majority stake in its American International Assurance Co. life insurance unit before choosing whether or not to change life insurers.