Archive for November, 2010

  • Simplifying Universal Life Insurance

    Monday, November 29th, 2010

    To many people the insurance industry seems like a complicated and mysterious entity that only exists to scam people away from more suitable investments. This is a fallacy. While there are some scam artists in any financial industry, they are greatly outnumbered by legitimate agencies and agents who want to help consumers find the best life insurance policy to protect their family’s long-term interests.

    Some types of insurance are difficult to understand right away. They require a little bit of research and study. However, even something as seemingly complicated as universal life insurance will make sense with a little bit of effort.

    Unlike term life insurance which lasts for a specific number of years at a guaranteed payout, the length of a universal life insurance policy is tied to the age of the policy holder. The other major difference is that the policy value is based on how much money the holder pays into it. The value of the policy is calculated by subtracting the cost of the policy from the fees and costs associated with it. This difference is applied to the policy value and interest is accrued based on an agreed upon interest rate index .

    Most policies do come with guaranteed limits and levels. This means that even if interest rates and costs work against the policy holder, they are guaranteed a certain payout. Likewise there are term guarantees that the policy costs won’t increase for a set time and that premium will not go up before a certain date.

  • Pennsylvania Loan Training

    Wednesday, November 17th, 2010

    Due to the complex nature of mortgages in this country, education is a key element in obtaining a mortgage broker or mortgage loan originator license in any state. Pennsylvania loan officer training in particular requires a thorough understanding of Pennsylvania’s mortgage law as well as US federal mortgage regulations.

    For first time loan officers, or experienced officers from other states seeking a Pennsylvania license, the requirements for training are extensive. For those renewing a license, an additional eight hours of continuing education is required each year. All training focuses on current laws, ethics, and fair lending practices. Continuing education tends to cover changes in laws and new regulations. Additional subjects covered in training include nontraditional mortgages, changes in the mortgage marketplace, and consumer protection practices .

    Once training is complete, officers are subjected to federal and state exams. If they receive satisfactory scores and have passed credit and background checks and met any other state requirements such as obtaining liability insurance, they are granted a license. All licenses are recorded at the state and national level and no mortgage company can employ an unlicensed broker or originator without risking their company license.