The Need For a Temporary Life Insurance
Temporary Life Insurance is one of the basic types of insurance policies; the other being Permanent Life Insurance. This policy is in force only for a limited period of time and therefore temporary in nature. Temporary Life Insurance is a term used in the United States whereas in the United Kingdom it is referred to as Term Assurance.A vital aspect to consider at the time of purchasing Temporary Life coverage is whether or not the insurance provider guarantees renewal on expiry of the policy. Such a guarantee assures that policyholders will be able to acquire some protection if for some reason they are no longer insured. Moreover, such a guarantee offsets the temporary nature of such a policy.In fact policyholders should demand such a guarantee of policy renewal. The Term Insurance does not accumulate any cash value and any benefits are passed on to the beneficiary only after the death of the policyholder. As a result, such an insurance policy is least attractive in spite of the low cost.Temporary Life coverage is a tool that offers financial protection to the beneficiary of the deceased policyholder. As such, it does not benefit the policyholder during the life time of the policy holder except that it offers the necessary financial protection in the event of death. However, life insurance cannot be viewed as an inheritance or a consolation prize for the loss of life since human life is immeasurable in economic measure or value.However, Temporary coverage is quite beneficial when applying for Life Insurance. The extra comfort derived from such insurance is well worth the initial premium outlay. Also, the insurance company returns the premium to the policy buyer in case the application is rejected or if the policy buyer declines the policy offer.Thus, Life Insurance is an essential component that offers future financial protection for the dependents in the event of the death of the policyholder. Sometimes, Temporary Life coverage is also termed as Pure Insurance that does not provide any cash value. A major advantage offered by such insurance is that policyholders can cancel the policy for any reason. On the other hand, Permanent Insurance builds cash value that reduces the amount at risk for the insurance company. However, a major drawback of such a policy is that the policyholder cannot cancel it under any circumstances.Potential buyers should therefore get online and begin their search for flexible and affordable Temporary Life Insurance cover.
Unsecured Business Loan – Is There Really Such a Thing?
To many business owners looking for working capital, an unsecured business loan sounds like an enticing offer. Indeed, the Internet is littered with ads, sites and plain old come-on’s for these types of loans. However, it is important to understand these offers for exactly what they are.First of all it is important to understand the common definition of “unsecured” in the context of a loan. A secured loan is typically one that has a lien or some type of legal encumbrance placed upon some type of hard assets possessed by the borrower. An example would be a car loan or a mortgage. The “security interest” for the lender is that if you do not pay, the lender will take your car or house. In this case, the lender has “legal recourse”, and can use the courts to either force repayment, or seize the secured assets ( car or house in our example) if the borrower cannot pay.In both these examples, the borrower has the loan secured against personal assets and the loan is made based off of personal credit and income. An unsecured loan by definition, does not have a lien placed on assets possessed by the applicant or borrower. The loan is made purely on the strength of the borrowers credit history and their verifiable income.In the context of business loans, many offers are advertised as “unsecured” purely because these types of loans or cash advances do not secure the loan against the PERSONAL assets of the business owner. Technically, then, this loan is unsecured. If the loan is truly unsecured against both the personal assets of the business owner, and the business itself, then the loan amount typically will be very low, generally under $7500 and usually much lower if the credit history has problems.However, many merchant cash advance lenders will advertise unregulated cash advances as “unsecured”. In actuality, these types of advances, which have no limit on the upward rate being charged, usually do have a security interest against the assets of the business, not the business owner. They accomplish this by filing a UCC(uniform commercial code) lien against the business. This means if the business does not pay the loan and the business is sold or liquidated, the merchant cash advance lender has a right to the proceeds to satisfy the unpaid before the business owner does.Such advances are usually made based on the future credit card receivables of the business and often come with strings attached, such as requiring the merchant to switch payment processors, buy equipment, and pay high upfront fees. The unregulated “cash advance” is really a sales tool to force further purchases or concessions by the owner in exchange for a high rate advance.In conclusion, if you are business owner looking for an unsecured business loan and the amount you are requesting is over $5000 with less than perfect credit, chances are you will not find it easily, if at all. However, there is a much more cost effective option for these business owners who are seeking quick working capital up to $500,000 at rates that are 50% less than a merchant cash advance with no upfront fees and no requirement to switch processors. To find out more about this new, cost effective business loan, click here.
Business Loans Reviews – Basic Tips on Getting a Business Loan
It is quite often that a starting entrepreneur gets denied with an application for a loan. While others may be successful with their loans, they may also find themselves dealing with strings attached to the arrangement. In getting an application, business owners must realize that investors and banks operate under standard principles when lending money for business. Below are the basic steps that you should consider in getting that much needed loan for starting your business.Know the Reason for your Business LoanThis is especially important for any starting businessman. While most may think that this step already goes without saying, some borrowers tend to be confused on why they need the loan on the first place. Applicants should identify the intended purpose, whether it is for replenishing capital or for facility expansion and equipment upgrades.Know the amountBusiness owners need to be clear and very specific on both the reason for the loan and the reason for the amount specified on the application. Even existing business firms may not be able to fully address the questions on why and how much not until they start preparing their financial statements.Get expert adviceThose who are running a start-up business may benefit from the advice of experienced executives. If you are a small business owner, you may want to visit any local chapter of the SBDC or Small Business Development Center. This organization serves to assist any new and existing businesses. SCORE is another wonderful source for advice for any entrepreneur struggling with a loan application. This is a non-profit organization which mainly consists of volunteer retired business executives.Know your credit historyAny owner of a starting business which is less than 3 years old will be subjected to a credit history evaluation by the bank or investor. It is often in this area where banks find a reason for denying a loan application. Therefore, it is important that you get your credit history in order. Check for any disputes and discrepancies.Demonstrate credit worthinessWhen a bank or investor evaluates your credit, there are generally four areas considered upon making the full assessment. The bank analyzes the business owner’s capacity to repay the loan. It is important for any applicant to specify how and when the loan will be paid back in full. The collateral is another crucial factor. This acts as a security for banks and investors. This can be any form of property owned by the applicant or business. Collateral can also come in the form of a guarantee that someone else will pay the loan in the event that the applicant cannot. The bank also considers the owner’s personal investment into the business. This is basically the capital and the banks will strictly evaluate the amount and overall quality of the capital that the business owner can provide. The personal qualities of the loan applicant are also considered during credit analysis. While this may seem subjective for most, banks place value on the overall character of the applicant. Everything from personal background, educational experience and professional experience in the chosen industry are evaluated when applying for a financial investment.Know the economic conditionsThe conditions that may affect an investor’s decision include the overall economic climate during the time of application. Undeniably, banks will view tight economic conditions as a challenge for any loan applicant to be able to pay back the investment. Furthermore, periods of recession also mean that banks will have a tougher time in funding every loan application that comes their way.Review your borrowing optionsIt is best that you consider all the commercial banks available. While most are attracted to large national banks, regional institutions should warrant a priority spot in your prospective list. The chances of getting a loan are actually much higher when you got small commercial banks. Of course, there are other great options available. Business owners who are members of a local credit union can also consider meeting the loan officer in charge.Make a solid business planA good business plan is one of your best weapons against loan application denial. Financial institutions will most certainly require a business plan along with the loan application. The business plan should be extensive and include relevant information on past and present financial statements. It should also include a clear market analysis for the business as well as your overall experience in that industry. The value of the assets to be used as collateral should also be distinctly indicated.Being successful in your loan application requires transparency with all your relevant financial information. It requires a confident entrepreneur who has strategically planned out the business in all its key aspects.