How much money does a Sports agent make in a year?
Answers: Around $60-80Ks
Average is $60,000 as indicated here http://www.payscale.com/research/US/Indu...
More insurance confusion - dividends?
Dividends can be used to purchase paid-up additions. "The dividend is taken by the company and used to purchase permanent insurance of impossible to tell apart type. The insurance is in effect a small single premium total life policy...To bring about its maximum value, it requires a relatively long time of year of time."Okay, it sounds to me like these dividends in fact purchase another POLICY, rather than accumulation to the existing policy. Is this correct? Will somebody translate this into a dumbed-down form for me?
Answers: the added insurance will have same policy number, not a different policy number
I have an idea that what they mean is you can use dividends to increase your policy significance.
Say you bought $100K worth of insurance. You can use the dividend to buy $150K worth of insurance.
Whole life insurance policies are a horrendous use of your money. If you want life insurance, buy low cost occupancy life and invest your extra money within a Mutual Fund - you'll get a much better rate of return.
Paid-up additions, if any, would be added to duplicate policy. Please read the disclaimer about dividends fussily on your illustration. They are, in effect, a return of premium to you and cannot be guaranteed surrounded by any way. They may be superior, lower, or non-existent year to year.
Insurance confusion - dividends and bread significance?
I'm extremely confused about something. In adjectives life insurance plans, where on earth, exactly, do the dividends come from? What do they do, and can you save them up? Do they reward out immediately?Also, where on earth does the cash merit come from? Does it come from the premiums you pay? Besides self able to embezzle it out (surrender), what does the cash attraction do?
Answers: Let me preface this with I one and only buy term insurance. I resembling to keep my insurance and my funds separate. The only time I'll take a dividend is when my car insurance company have a really good year and have to pay for far a lesser amount of accidents than they be expecting to pay stale on.
No matter what description of insurance you buy, you are giving money to the insurance company. They invest all the money they receive and they hope that after they've remunerated off adjectives the claims that there is money moved out over. When there is money departed over, these can be paid out as dividends. On a occupancy insurance, this goes to the stock holders of the insurance company, not the policy holders. On a undamaged life insurance plan, you repay MORE money in than of late the part that's for insurance. This builds up the "currency value" of your policy (sort of like self a shareholder). Your share of the dividends is credited to you. Often it's used to reduce your premium for the subsequent year (which is like paying it out).
While an agent can dazzle you beside figures, so can a broker for a mutual fund...and the mutual fund usually have higher numbers when the dust settles.
integral life consists of a savings/investment commentary wrapped around a decreasing value guaranteed renewable possession life insurance policy [what we used to nickname mortgage insurance].
in some companies, especially mutual (policyholder owned) firms, investment proceeds above the rate anticipated when the policy was written are split between the policy holder and the company's surplus. These are call "dividends".
Depending on the election you engender [which can usually be changed], dividends can be paid to you [and they are taxable then] or used to purchase more fully salaried insurance. Salesmen pushed the more insurance choice since they got an added small commission from that one.
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Whole go works by charging more in the rash years of the policy than term insurance costs for those years. The added charges are invested by the company and the accumulate balance of those charges, smaller amount sales fees compensated to agents and managers, is the "brass surrender" value. If you call off the remainder of the policy at any time, you get the change surrender value. [Note that the salesman still get paid nearly his full payment -- the usual cash surrender attraction anytime in the first three years of the policy is zilch so the commissions can be paid.]
Some companies allow you to borrow against the lolly surrender value -- unrepaid borrowings, if any, decrease the insurance payoff when you die.
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the amount your family receive from a whole life span policy if you should be so unlucky as to die is the full face amount, plus the added existence insurance "value" purchased by dividends over the years (if any). The face amount consists of two parts -- the current year's residence policy and the accumulated lolly surrender value.
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Insurance companies are regulated by respectively state's Insurance Commissioner. because of the statistical nature of their credible future payouts [for adjectives policies combined, the payouts are pretty closely known amounts surrounded by each year unless exceedingly drastic things happen] the companies are usually heavily invested in bonds that will evolve when their payouts will occur.
This is a most important reason why abundant observers consider enthusiasm insurance companies to be poor investors (receive poor returns over time). a further reason is that natural life companies have soaring operating costs as a percentage of funds invested [as compared to mutual funds, for example].
these critics of the industry thus assert that most people would be better stale to buy guaranteed renewable term insurance and invest the difference within price themselves in index mutual funds. [for one entry, this greatly reduces the commission the salespeople procure -- which the buyer pays for].
does this help??
Dividends are roughly interest, on your cash worth. They don't pay out to you, usually, they gain added to your cash meaning.
Cash value comes from your overpayment of premium. Whole existence costs about 10X what possession costs. So, if your whole natural life premium is $100 a month, $10 goes to buy the occupancy coverage for you, $10 goes into your bread value, and $80 is the insurance company profit.
Cash effectiveness is a selling point of whole enthusiasm. The policy "earns" money for you. You can borrow the cash attraction (your own money, and pay interest to the insurance company), you can capture it when you cash the policy within (minus a surrender value). But when you die, the insurance company keeps the currency value, and if you die next to a loan unpaid, the insurance company takes the loan symmetry and interest from the face efficacy of the policy.
This is clearly a complicated question. The simplest answer I own is that your cash meaning represents your liquidity in your policy at any given time. Dividends represent an over charge of your premiums. You usually own many option to choose if you have a dividend, but they cannot be guaranteed within any way.
Without knowing your goal, I don't want to be too long-winded, but you may be interested in this article.