What is Investment Life Insurance and Should You Get Investment Life Insurance?

If you have a spouse and children that depend on you, you need to get insurance. There is no question about it. Since they have to get it anyway, many people choose to get investment life insurance so that down the road their insurance gives back to them.

This type of insurance is also commonly referred to as whole life insurance. There are pros and cons to investment life insurance, and you should look into all of them and decide whether this is the right route for you.

One of the best things about whole life insurance is that for some people it is an effective way to set aside some money for retirement. Whole life also protects you through your entire life instead of expiring at a certain time.

The problem with this is that your premiums with this type of insurance are going to be considerably higher than with term life insurance. You are not only paying toward the death benefit that insurance provides; you are also paying extra for the savings account.

A common argument against investment insurance is that instead of paying the high monthly bill for this insurance, it makes more sense to shop for the best premium. The best premium is most likely going to come with term life insurance. Then you can take the extra money that you would have been paying for whole life and invest it somewhere else.

Also, term life insurance may be a great way to get a better deal down the road if at some point you no longer need as much coverage. But on the other hand some people don’t like the idea of losing their coverage. They fear that getting another policy will be exorbitantly expensive. Some term life policies can be renewed, but this is something you need to plan for ahead of time.

Whole life insurance will continue to cover you no matter what health problems you may develop as you age. The peace of mind this provides for some people is priceless, and so they opt for this kind of policy.

Another thing to think about is the taxes that will accompany your investment. Since the taxes on investment insurance are deferred, you don’t have to pay them now, but you should take into account when you will have to pay them. For some tax brackets there really isn’t much point to the savings account because almost all of it will have to be paid as taxes. To keep yourself from massive disappointment down the road, be sure to check into this. On the other hand, some higher tax brackets can benefit from this money being set aside over the years with taxes deferred.

No two people are alike, and everyone has different needs. Only you can weigh the differences between term and investment life insurance and decide which is best for you. Just be sure to do some shopping so that you know you have made the best decision in the end.

Compare Online To Get The Best Investment Deal

The internet has changed the way we live life and do things. Nowadays, people are slowly turning to the internet for all their requirements. For things like investment especially, the internet can prove to be a boon. That is because the different investment companies provide detailed information about the investment plans available with them on their websites. You can study such websites and come to know about the options available in the market. At the same time, you can also compare investment plans offered by different companies and choose the one that suits your requirement. Doing this without the internet could be really tedious and time consuming.

There are different options for investing available on the internet. Each of these options is tailored differently to suit different requirements and preferences of the customers. Some people think that they may require a large sum of money some time in the future. Such people may be interested in the investment plans which offer opportunities for investing money. These plans will help your money grow, and such plans usually have an element of risk associated with them. On the other hand, some plans like insurance plans are such that they provide relief at times when a mishap occurs. Health insurance, car accident insurance and life insurance are such plans. Another benefit that people usually want to avail from their plans is to get relief in taxes. Many investment companies keep this in mind and design plans that are particularly suited to people who want to save taxes.

Nowadays, people have started opting for plans that provide both investment and risk cover. Such plans are offered by different insurance companies. In these plans, a part of the premium that you pay goes towards the insurance component and a part of it goes towards investment. The percentage of both the components varies with different companies and plans. It is up to you to decide which kind of component division you want to opt for.

Insurance comes in handy when there is a sudden requirement of money like a major illness or any other unfortunate incident.

It is also useful to ensure that your family is well provided for in case of your untimely death if you are the earning member of the family.

Investing money on the other hand is purely meant for your future security or for occasions like buying movable or immovable property.

Information about all these different options can be found on the internet. The good thing about an online investment plan is that you will be able to get the best investment plan by comparing the options provided by different companies. You can contact the customer service departments of these companies on their websites. Some companies also allow you to apply for investment plans online. Applying for an investment plan on the internet greatly reduces the hassle involved. At the same time, you do not have to depend on the questionable intelligence of other people while making the decision. You can use your own prudence and judgment while choosing the plan.

Attention Stock Option Traders

Option trading is catching up fast among rookie stock investors. Once they come to know that the risk is much lesser compared to conventional trading, they waste no time and jump on to business. However, this is not advisable. It’s necessary to know the nooks and crannies of the business before one decides to delve in. Unless a person has acquired a solid foundation on how the options work it won’t serve him the purpose of achieving his goal, that is, making profits. Therefore, below are listed a list of methods that are comprehensive and elucidates the process in a lucid manner. They involve less risk than stock owning and can be used as a beginner’s guide when it comes to option trading. A best option trading service always follows the right procedure of this kind of trading.

Covered call writing: suppose a person owns a certain stock. He sells a buyer the right to buy that stock at a predetermined price. Though that limits the potential for profit, the person collects premium in cash that he can keep, no matter the circumstances. This cash reduces the overall cost. Now, if the market sees a steep loss, he definitely suffers a loss. But his losses are significantly lesser than someone who didn’t find the extra cash in the beginning.

Cash secured naked put writing: selling a put option on the stock a person wants to own and choosing the stroke price which reflects the price he is willing to pay for it. In this case, he collects premium in cash for accepting the obligation of buying a stock by paying the predetermined strike price. Of course there is an option where he does not need to buy the stock. But even in that case he gets to keep the cash premium he received earlier. A person having enough cash in his accounts to buy the shares he intended to is considered to be cash secured.

Collar: it is a covered call position where a “put” is added. This acts as an insurance policy and keeps losses at a minimum level. However, the trade off is that the profits are also lowered considerably. Nevertheless, this has been popular amongst orthodox stock investors.

Credit spread: this involves the purchase of a call option in lieu of selling another or the purchase of a put option in lieu of another. There expiration dates are same and it is known as a credit spread because the investor gets to collect cash for this trade. A high priced option is sold for a less expensive one and it limits both the profits and losses.

Iron condor: in this position, there is one call credit spread and one put credit spread, simultaneously. This, like all the others limits the profits and losses.

Diagonal: this is also called the double diagonal spread. Here the options have different strike prices with different expiration dates. The option that has been bought has a later expiration date than the option sold.

Finding The Best Mutual Fund Screener

Best Mutual Fund Screener

Knowing which stocks to add to your watch list or portfolio can be made easier once you’ve found the best mutual fund screener for you out there. There are financial experts who would be happy to lend you their help when it comes to the best place to invest your money, but if you want to be more hands-on in your approach, you can use a mutual funds screener to weigh your options. A screener will allow you to scrutinize your investment ideas, and recognize funds with the potential for success. The following includes not just the best mutual fund screener, but also screeners for general stock, ETFs, closed-end funds, and dividends.

Morningstar’s Premium And Free Screeners

The best mutual fund screener at present would have to be Morningstar’s Fund Screener. A premium is offered for investors who are willing to pay, but the company also provides a free version. The free version allows access to Morningstar’s five-star rating system, which is revered throughout the market. Funds are rated against each other across different categories, with five-star funds being known as the best of the best. The screener allows users to search for funds according to equity style, management tenure (how long the manager has been in their position), as well as expense ratios.

Finviz General Stock Screener

When it comes to general stock, the best screener belongs to Finviz.com. It has a large amount of data fields for filtering, allowing users to search specifically for stocks based on factors like market cap, industry sector, price-to-earnings ratio, return on equity, crossing above 50-day moving average, head and shoulders pattern, and more. For ETFs, it’s back to Morningstar’s screener. It allows you to sort through more than a thousand funds, filtering based on data fields such as dividend yield, standard deviation, Sharpe ratio, market return, expense ratio, and more.

Closed-End And Dividend Fund Screener

For closed-end funds, Cefconnect.com has a screener with a likeness to Morningstar’s best mutual fund screener. With just the click of a button, you can begin browsing through all 600+ of the CEFs currently on the market. Data fields like premium-discount and dividend distribution rate will help you clear a path to the closed-end fund best for you. These kind of funds have actually occupied the market for longer than ETFs have. And finally, for dividend screening, Dripnvesting.org provides a list of stocks ever month that have displeased an increase in growth. This isn’t technically a screener, but when it comes to dividend funds, it’s at least a start.