Principal received an honorable mention on the list of Good Financial Cents Best Life Insurance Companies.
They are very solid financially and are a great option if they have the best rates when you run your quotes.
The History of Principal Life Insurance Company
The Principal Financial Group – also known as The Principal – was founded in 1879. This global investment management leader has been offering individuals and companies financial and insurance solutions for more than 135 years.
Since its founding, the company has grown considerably – today having more than 14,800 employees worldwide – of which roughly 10,000 are in the United States alone. The Principal is a stock company, and it trades on the New York Stock Exchange under the ticker symbol PFG.
Principal Life Insurance Company Review
Although it is known worldwide, the Principal is bound by one common purpose, and that is to provide its customers with the financial tools, resources, and information that they require to live the best lives that they can.
The Principal offers insurance, investment products, and retirement plans to both individuals and businesses. This large insurer currently has more than 19 million customers around the globe in 18 countries, and it holds more than $547 billion of assets under management. Its products and services are provided by a diverse network of companies and advisors.
This carrier has been noted as one of the World’s Most Ethical Companies, as well as One of America’s Best Employers, and the #3 Greenest CRE Company. It has also attained some additional accolades, including:
#1 Provider of Defined Benefit Retirement Plans
#1 Record Keeper of Employee Stock Ownership Plans
#1 Provider of Nonqualified Deferred Compensation plans
The Principal provides a great deal of information about its products and services on its website. Customers can also reach a customer service representative if they need help or if they have a question or a concern. A representative can easily be reached via a toll-free phone line, as well as via email.
Financial Strength and Ratings of Principal Life Insurance Company
The Principal has an excellent reputation as far as paying out it claims to its insurance policyholders.
Because of this, it has been provided with very high ratings from the insurer rating agencies.
These include the following:
A+ (Superior) from A.M. Best
AA- (Very Strong) from Fitch
A1 (Good) from Moody’s Investors Service
A+ (Strong) from Standard & Poor’s
Life Insurance Products Offered by Principal Life Insurance Company
Principal Life Insurance Company offers both term and permanent life insurance solutions. This can help its customers to better plan for their specific coverage needs when planning for the protection that they require – regardless of the stage of life that they are in.
Term Life Insurance Coverage through The Principal
With term life insurance, pure death benefit only coverage is provided, without any cash value or investment build up included in the policy. Because of that, term life insurance can often be more affordable than permanent coverage – primarily if the applicant is young and in good health. This can allow for the purchase of a larger amount of protection at an affordable premium price.
Term life insurance is often thought of as being “temporary” life insurance protection. This is because it is purchased for certain periods of time – or “terms” – of coverage such as for ten years, 15 years, 20 years, 25 years, or even for 30 years. However, when the term of coverage expires, it is necessary for the insured to purchase a new policy, at their then-current age and health condition, if they want to remain insured. However, in some cases, a term life insurance policy may offer a conversion feature whereby the insured may convert his or her policy over to a permanent form of life insurance. The Principal offers this feature on many of its term life insurance policies – and the insured will not need to provide additional evidence of insurability.
Permanent Life Insurance Coverage Through the Principal
Permanent life insurance coverage provides death benefit coverage, and it also has a cash value component as a part of the policy. The death benefit in a permanent policy will last for the remainder of the policy holder’s life. So, unlike a term policy, there is no time limit. As long as the premium is paid, the policy will remain in force.
The cash value in a permanent life insurance policy is allowed to grow on a tax-deferred basis. What this means is that there is no tax that will be due on the growth of the funds within the cash value until the time that the funds are withdrawn.
The Principal offers three key types of permanent life insurance policies. These include the following:
Universal Life Insurance Coverage
With universal life insurance coverage, there is death benefit protection, as well as cash value build up. A universal life insurance policy is flexible regarding the premium payments, as well as its death benefit protection. It can also provide flexibility concerning when the policyholder pays the premium (within certain guidelines).
With this type of life insurance policy, the cash value can accumulate based upon a floating rate of interest – yet it will have a minimum rate guarantee. In some cases, these policies may also include a secondary interest rate guarantee for even more security.
Variable Universal Life Insurance Coverage
Variable universal life insurance coverage also offers a death benefit, along with a cash component. However, the cash component policyholder be more aggressive by choosing from a variety of different market linked investments. This can allow funds to grow a great deal more, based on market performance. It can also, however, mean that there is more risk involved. With that in mind, it is important to be aware of risk tolerance before moving forward with a variable insurance product.
As with other types of permanent life insurance, a variable universal life insurance policy will also allow the policy to obtain the benefit of tax-deferred growth within the cash component. In addition, the policy holder will be allowed to either borrow or to withdraw the funds that are in the cash component for whatever need he or she has if they choose to do so.
Also, with this type of policy, the policyholder is allowed to convert the cash value to an annuity for income that he or she cannot outlive. This can help to alleviate the worry in retirement about running out of income – a fear that is held by many retirees today due in large part to our longer life expectancies.
Survivorship Life Insurance Coverage
A survivorship life insurance policy will cover two lives rather than just one. This can be less costly than purchasing two separate life insurance policies. The survivorship plans that are offered by The Principal will pay at the death of the second insured individual. These policies are frequently used for estate planning purposes to leverage various tax deductions.
Other Coverage Products Offered
In addition to life insurance, the Principal Life Insurance Company also offers other types of insurance coverage products. These include the following:
Disability Income Protection
A disability income insurance policy from The Principal can help an individual to protect their financial health from the loss of his or her income due to an injury or an illness.
While many people may think that their most valuable asset is their home or their retirement plan, it is their ability to earn an income. This is because, without the ability to earn, most other assets would be impossible to obtain or to keep.
It is estimated that one in four people who enter the workforce today will become disabled before the time that they retire. Therefore, protecting their income with a disability income policy can be a way to ensure that living expenses will still be paid over time.
With Principal, you can get a plan with as much as $20,000 in monthly benefits. One unique factor is you don’t have to be totally disabled to receive the benefits.
You can choose elimination periods as short as 30 days and benefit periods as long as 5 years. The plan is guaranteed renewable and non-cancelable, which means you don’t have to worry about losing protection.
Principal has a handful of benefits they include with their disability plan at no cost to the policyholder. One unique advantage of Principal’s plan is the death benefit, which will pay out a lump sum if the policyholder passes away while claiming the plan.
They also include a waiver of premium rider, a benefits update rider, future benefit increase rider, and several more benefits.
They also sell several additional riders you can add. They have four options to choose from:
Because of the rates and the benefits of the policy, Principal is one of the most popular options for disability coverage.
Retirement Savings Protection
In addition to just becoming disabled and not being able to earn an income, contributing to a retirement savings plan can also stop if a person is unable to work. Therefore, with retirement savings protection, contributions into retirement savings can continue while a person is not able to work because of a disabling illness or injury. With The Principal’s retirement savings protection, policy holders can insure “what could be” from “what if.”
Annuities from Principal Life
Buying an annuity is an excellent way for you to supplement your retirement income. If you’re shopping for annuities, it’s important that you find the perfect company for you. On top of all of the insurance products, Principal Life also has several types of annuities that they sell. They have four different types that you can invest your money in, depending on what your investment risk is. The four types are:
With a fixed annuity, you can choose how your money grows and select from a couple of different benefits. These annuities allow you to choose from a quick death benefit, emergency access, and IRS minimum distribution notification.There are two separate types of income annuities that are slightly different. Principal has Immediate Income Annuities and Deferred Income Annuities. The Immediate Income Annuities are designed for those that are looking to start getting income in retirement in the next 12 months. As you can probably guess, Deferred Income Annuities are for those that are looking for guaranteed income in the next 13 months or longer.
The next time is the indexed annuity. These annuities are going to give you investment safety, but without sacrificing the potential for more growth. The rates are linked to one or more equity-based indices.
Variable annuities allow you to save for retirement by getting growth that is based on market performance with different kinds of payout options. They have flexibility withdrawal options with tired surrender charges. They also offer some living benefit riders that can protect you from any risk of the market crashing and give you some additional benefits before you start taking withdrawals. A unique benefit that Principal offers with their variable annuities is the Deferred Income Rider, which lets you transfer money from your accumulated value to create more income payments, without having to pay any additional fees.
Average mortgage rates fell just a little last Friday. But last Thursday’s massive jump means they finished that week — and last month — higher than when they started them.
First thing, it was looking as if mortgage rates today might again barely budge. But that could change as the hours pass.
Markets will be closed tomorrow for the Independence Day holiday. And we’ll be back on Wednesday morning. Enjoy your celebrations!
Current mortgage and refinance rates
Program
Mortgage Rate
APR*
Change
Conventional 30-year fixed
7.129%
7.158%
Unchanged
Conventional 15-year fixed
6.638%
6.651%
Unchanged
Conventional 20-year fixed
7.506%
7.558%
Unchanged
Conventional 10-year fixed
6.997%
7.115%
Unchanged
30-year fixed FHA
6.672%
7.303%
Unchanged
15-year fixed FHA
6.763%
7.237%
Unchanged
30-year fixed VA
6.729%
6.937%
Unchanged
15-year fixed VA
6.625%
6.965%
Unchanged
5/1 ARM Conventional
6.75%
7.266%
Unchanged
5/1 ARM FHA
6.75%
7.532%
+0.11
5/1 ARM VA
6.75%
7.532%
+0.11
Rates are provided by our partner network, and may not reflect the market. Your rate might be different. Click here for a personalized rate quote. See our rate assumptions See our rate assumptions here.
Should you lock a mortgage rate today?
Recent reporting in the financial media makes me think mortgage rates are unlikely to see any significant and sustained falls until at least the fourth (Oct.-Dec.) quarter of 2023 and probably not until 2024.
And that’s why my personal rate lock recommendations remain:
LOCK if closing in 7 days
LOCK if closing in 15 days
LOCK if closing in 30 days
LOCK if closing in 45 days
LOCK if closing in 60days
However, with so much uncertainty at the moment, your instincts could easily turn out to be as good as mine — or better. So let your gut and your own tolerance for risk help guide you.
>Related: 7 Tips to get the best refinance rate
Market data affecting today’s mortgage rates
Here’s a snapshot of the state of play this morning at about 9:50 a.m. (ET). The data, compared with roughly the same time last Friday, were:
The yield on 10-year Treasury notes edged down to 3.82% from 3.85%. (Good for mortgage rates.) More than any other market, mortgage rates typically tend to follow these particular Treasury bond yields
Major stock indexes were mostly lower. (Good for mortgage rates.) When investors buy shares, they’re often selling bonds, which pushes those prices down and increases yields and mortgage rates. The opposite may happen when indexes are lower. But this is an imperfect relationship
Oil prices inched up to $70.61 from $70.25 a barrel. (Neutral for mortgage rates*.) Energy prices play a prominent role in creating inflation and also point to future economic activity
Goldprices rose to $1,930 from $1,919 an ounce. (Neutral for mortgage rates*.) It is generally better for rates when gold prices rise and worse when they fall. Gold tends to rise when investors worry about the economy.
CNN Business Fear & Greed index — climbed to 84 from 80 out of 100. (Bad for mortgage rates.) “Greedy” investors push bond prices down (and interest rates up) as they leave the bond market and move into stocks, while “fearful” investors do the opposite. So lower readings are often better than higher ones
*A movement of less than $20 on gold prices or 40 cents on oil ones is a change of 1% or less. So we only count meaningful differences as good or bad for mortgage rates.
Caveats about markets and rates
Before the pandemic and the Federal Reserve’s interventions in the mortgage market, you could look at the above figures and make a pretty good guess about what would happen to mortgage rates that day. But that’s no longer the case. We still make daily calls. And are usually right. But our record for accuracy won’t achieve its former high levels until things settle down.
So, use markets only as a rough guide. Because they have to be exceptionally strong or weak to rely on them. But, with that caveat, mortgage rates today might again hold steady or close to steady. However, be aware that “intraday swings” (when rates change speed or direction during the day) are a common feature right now.
Important notes on today’s mortgage rates
Here are some things you need to know:
Typically, mortgage rates go up when the economy’s doing well and down when it’s in trouble. But there are exceptions. Read ‘How mortgage rates are determined and why you should care’
Only “top-tier” borrowers (with stellar credit scores, big down payments, and very healthy finances) get the ultralow mortgage rates you’ll see advertised
Lenders vary. Yours may or may not follow the crowd when it comes to daily rate movements — though they all usually follow the broader trend over time
When daily rate changes are small, some lenders will adjust closing costs and leave their rate cards the same
Refinance rates are typically close to those for purchases.
A lot is going on at the moment. And nobody can claim to know with certainty what will happen to mortgage rates in the coming hours, days, weeks or months.
What’s driving mortgage rates today?
Currently
To see sustained lower mortgage rates we need to see the inflation rate halving, the economy weakening, and the Federal Reserve stopping hiking general interest rates. And none of those looks likely anytime soon.
Some progress is being made on inflation. But not enough.
And the economy is showing extraordinary resilience. Last week’s gross domestic product (GDP) headline figure was 50% higher than many expected.
Meanwhile, the Fed seems highly likely to hike general interest rates by 25 basis points (0.25%) on Jul. 26. And there may well be at least one more increase after that in 2023.
Recession
As I’ve written before, our best hope for lower mortgage rates is a recession. That should weaken the economy, reduce inflation and perhaps cause the Fed to at least hold general rates steady.
Economists have been predicting an imminent recession for ages. And, not so long ago, I bought that line and was expecting one at any moment.
But, now, many big hitters aren’t expecting a recession until 2024. Yesterday, CNN Business listed a few of those making that prediction:
Bank of America CEO Brian Moynihan
Vanguard economists
JPMorgan Chase economists
Of course, others disagree, as economists always do. Some think a recession will still land later this year. And others believe there will be no recession at all.
This week
There are a few reports this week that could send mortgage rates up or down a bit. But Friday’s jobs report is the one most likely to have a decisive impact.
The consensus among economists is that the report will show 240,000 new jobs created in June compared with 339,000 in May. Anything lower than 240,000 might see mortgage rates tumble, which would be great.
However, we’ve witnessed economists making similar predictions for employment several times over recent months. And, nearly every time, their forecasts have greatly underestimated the resilience of the American labor market and therefore the American economy.
Of course, they might be right this time. Let’s hope so. But I shouldn’t hold my breath if I were you.
Please read the weekend edition of this daily report for more background on what’s happening to mortgage rates.
Recent trends
According to Freddie Mac’s archives, the weekly all-time low for mortgage rates was set on Jan. 7, 2021, when it stood at 2.65% for conventional, 30-year, fixed-rate mortgages.
Freddie’s Jun. 29 report put that same weekly average at 6.71%, up from the previous week’s 6.67%. But Freddie is almost always out of date by the time it announces its weekly figures.
In November, Freddie stopped including discount points in its forecasts. It has also delayed until later in the day the time at which it publishes its Thursday reports. Andwe now update this section on Fridays.
Expert mortgage rate forecasts
Looking further ahead, Fannie Mae and the Mortgage Bankers Association (MBA) each has a team of economists dedicated to monitoring and forecasting what will happen to the economy, the housing sector and mortgage rates.
And here are their rate forecasts for the current quarter (Q2/23) and the following three quarters (Q3/23, Q4/23 and Q1/24).
The numbers in the table below are for 30-year, fixed-rate mortgages. Fannie’s were published on May 23 and the MBA’s on Jun. 21.
In the past, we included Freddie Mac’s forecasts. But it seems to have given up on publishing those.
Forecaster
Q2/23
Q3/23
Q4/23
Q1/24
Fannie Mae
6.4%
6.2%
6.0%
5.8%
MBA
6.5%
6.2%
5.8%
5.6%
Of course, given so many unknowables, the whole current crop of forecasts might be even more speculative than usual. And their past record for accuracy hasn’t been wildly impressive.
Find your lowest rate today
You should comparison shop widely, no matter what sort of mortgage you want. Federal regulator the Consumer Financial Protection Bureau found in May 2023:
“Mortgage borrowers are paying around $100 a month more depending on which lender they choose, for the same type of loan and the same consumer characteristics (such as credit score and down payment).”
In other words, over the lifetime of a 30-year loan, homebuyers who don’t bother to get quotes from multiple lenders risk losing an average of $36,000. What could you do with that sort of money?
Mortgage rate methodology
The Mortgage Reports receives rates based on selected criteria from multiple lending partners each day. We arrive at an average rate and APR for each loan type to display in our chart. Because we average an array of rates, it gives you a better idea of what you might find in the marketplace. Furthermore, we average rates for the same loan types. For example, FHA fixed with FHA fixed. The end result is a good snapshot of daily rates and how they change over time.
How your mortgage interest rate is determined
Mortgage and refinance rates vary a lot depending on each borrower’s unique situation.
Factors that determine your mortgage interest rate include:
Overall strength of the economy — A strong economy usually means higher rates, while a weaker one can push current mortgage rates down to promote borrowing
Lender capacity — When a lender is very busy, it will increase rates to deter new business and give its loan officers some breathing room
Property type (condo, single-family, town house, etc.) — A primary residence, meaning a home you plan to live in full time, will have a lower interest rate. Investment properties, second homes, and vacation homes have higher mortgage rates
Loan-to-value ratio (determined by your down payment) — Your loan-to-value ratio (LTV) compares your loan amount to the value of the home. A lower LTV, meaning a bigger down payment, gets you a lower mortgage rate
Debt-To-Income ratio — This number compares your total monthly debts to your pretax income. The more debt you currently have, the less room you’ll have in your budget for a mortgage payment
Loan term — Loans with a shorter term (like a 15-year mortgage) typically have lower rates than a 30-year loan term
Borrower’s credit score — Typically the higher your credit score is, the lower your mortgage rate, and vice versa
Mortgage discount points — Borrowers have the option to buy discount points or ‘mortgage points’ at closing. These let you pay money upfront to lower your interest rate
Remember, every mortgage lender weighs these factors a little differently.
To find the best rate for your situation, you’ll want to get personalized estimates from a few different lenders.
Are refinance rates the same as mortgage rates?
Rates for a home purchase and mortgage refinance are often similar.
However, some lenders will charge more for a refinance under certain circumstances.
Typically when rates fall, homeowners rush to refinance. They see an opportunity to lock in a lower rate and payment for the rest of their loan.
This creates a tidal wave of new work for mortgage lenders.
Unfortunately, some lenders don’t have the capacity or crew to process a large number of refinance loan applications.
In this case, a lender might raise its rates to deter new business and give loan officers time to process loans currently in the pipeline.
Also, cashing out equity can result in a higher rate when refinancing.
Cash-out refinances pose a greater risk for mortgage lenders, so they’re often priced higher than new home purchases and rate-term refinances.
How to get the lowest mortgage or refinance rate
Since rates can vary, always shop around when buying a house or refinancing a mortgage.
Comparison shopping can potentially save thousands, even tens of thousands of dollars over the life of your loan.
Here are a few tips to keep in mind:
1. Get multiple quotes
Many borrowers make the mistake of accepting the first mortgage or refinance offer they receive.
Some simply go with the bank they use for checking and savings since that can seem easiest.
However, your bank might not offer the best mortgage deal for you. And if you’re refinancing, your financial situation may have changed enough that your current lender is no longer your best bet.
So get multiple quotes from at least three different lenders to find the right one for you.
2. Compare Loan Estimates
When shopping for a mortgage or refinance, lenders will provide a Loan Estimate that breaks down important costs associated with the loan.
You’ll want to read these Loan Estimates carefully and compare costs and fees line-by-line, including:
Interest rate
Annual percentage rate (APR)
Monthly mortgage payment
Loan origination fees
Rate lock fees
Closing costs
Remember, the lowest interest rate isn’t always the best deal.
Annual percentage rate (APR) can help you compare the ‘real’ cost of two loans. It estimates your total yearly cost including interest and fees.
Also pay close attention to your closing costs.
Some lenders may bring their rates down by charging more upfront via discount points. These can add thousands to your out-of-pocket costs.
3. Negotiate your mortgage rate
You can also negotiate your mortgage rate to get a better deal.
Let’s say you get loan estimates from two lenders. Lender A offers the better rate, but you prefer your loan terms from Lender B. Talk to Lender B and see if they can beat the former’s pricing.
You might be surprised to find that a lender is willing to give you a lower interest rate in order to keep your business.
And if they’re not, keep shopping — there’s a good chance someone will.
Fixed-rate mortgage vs. adjustable-rate mortgage: Which is right for you?
Mortgage borrowers can choose between a fixed-rate mortgage and an adjustable-rate mortgage (ARM).
Fixed-rate mortgages (FRMs) have interest rates that never change, unless you decide to refinance. This results in predictable monthly payments and stability over the life of your loan.
Adjustable-rate loans have a low interest rate that’s fixed for a set number of years (typically five or seven). After the initial fixed-rate period, the interest rate adjusts every year based on market conditions.
With each rate adjustment, a borrower’s mortgage rate can either increase, decrease, or stay the same. These loans are unpredictable since monthly payments can change each year.
Adjustable-rate mortgages are fitting for borrowers who expect to move before their first rate adjustment, or who can afford a higher future payment.
In most other cases, a fixed-rate mortgage is typically the safer and better choice.
Remember, if rates drop sharply, you are free to refinance and lock in a lower rate and payment later on.
How your credit score affects your mortgage rate
You don’t need a high credit score to qualify for a home purchase or refinance, but your credit score will affect your rate.
This is because credit history determines risk level.
Historically speaking, borrowers with higher credit scores are less likely to default on their mortgages, so they qualify for lower rates.
For the best rate, aim for a credit score of 720 or higher.
Mortgage programs that don’t require a high score include:
Conventional home loans — minimum 620 credit score
FHA loans — minimum 500 credit score (with a 10% down payment) or 580 (with a 3.5% down payment)
VA loans — no minimum credit score, but 620 is common
USDA loans — minimum 640 credit score
Ideally, you want to check your credit report and score at least 6 months before applying for a mortgage. This gives you time to sort out any errors and make sure your score is as high as possible.
If you’re ready to apply now, it’s still worth checking so you have a good idea of what loan programs you might qualify for and how your score will affect your rate.
You can get your credit report from AnnualCreditReport.com and your score from MyFico.com.
How big of a down payment do I need?
Nowadays, mortgage programs don’t require the conventional 20 percent down.
In fact, first-time home buyers put only 6 percent down on average.
Down payment minimums vary depending on the loan program. For example:
Conventional home loans require a down payment between 3% and 5%
FHA loans require 3.5% down
VA and USDA loans allow zero down payment
Jumbo loans typically require at least 5% to 10% down
Keep in mind, a higher down payment reduces your risk as a borrower and helps you negotiate a better mortgage rate.
If you are able to make a 20 percent down payment, you can avoid paying for mortgage insurance.
This is an added cost paid by the borrower, which protects their lender in case of default or foreclosure.
But a big down payment is not required.
For many people, it makes sense to make a smaller down payment in order to buy a house sooner and start building home equity.
Choosing the right type of home loan
No two mortgage loans are alike, so it’s important to know your options and choose the right type of mortgage.
The five main types of mortgages include:
Fixed-rate mortgage (FRM)
Your interest rate remains the same over the life of the loan. This is a good option for borrowers who expect to live in their homes long-term.
The most popular loan option is the 30-year mortgage, but 15- and 20-year terms are also commonly available.
Adjustable-rate mortgage (ARM)
Adjustable-rate loans have a fixed interest rate for the first few years. Then, your mortgage rate resets every year.
Your rate and payment can rise or fall annually depending on how the broader interest rate trends.
ARMs are ideal for borrowers who expect to move prior to their first rate adjustment (usually in 5 or 7 years).
For those who plan to stay in their home long-term, a fixed-rate mortgage is typically recommended.
Jumbo mortgage
A jumbo loan is a mortgage that exceeds the conforming loan limit set by Fannie Mae and Freddie Mac.
In 2023, the conforming loan limit is $726,200 in most areas.
Jumbo loans are perfect for borrowers who need a larger loan to purchase a high-priced property, especially in big cities with high real estate values.
FHA mortgage
A government loan backed by the Federal Housing Administration for low- to moderate-income borrowers. FHA loans feature low credit score and down payment requirements.
VA mortgage
A government loan backed by the Department of Veterans Affairs. To be eligible, you must be active-duty military, a veteran, a Reservist or National Guard service member, or an eligible spouse.
VA loans allow no down payment and have exceptionally low mortgage rates.
USDA mortgage
USDA loans are a government program backed by the U.S. Department of Agriculture. They offer a no-down-payment solution for borrowers who purchase real estate in an eligible rural area. To qualify, your income must be at or below the local median.
Bank statement loan
Borrowers can qualify for a mortgage without tax returns, using their personal or business bank account. This is an option for self-employed or seasonally-employed borrowers.
Portfolio/Non-QM loan
These are mortgages that lenders don’t sell on the secondary mortgage market. This gives lenders the flexibility to set their own guidelines.
Non-QM loans may have lower credit score requirements, or offer low-down-payment options without mortgage insurance.
Choosing the right mortgage lender
The lender or loan program that’s right for one person might not be right for another.
Explore your options and then pick a loan based on your credit score, down payment, and financial goals, as well as local home prices.
Whether you’re getting a mortgage for a home purchase or a refinance, always shop around and compare rates and terms.
Typically, it only takes a few hours to get quotes from multiple lenders — and it could save you thousands in the long run.
Current mortgage rates methodology
We receive current mortgage rates each day from a network of mortgage lenders that offer home purchase and refinance loans. Mortgage rates shown here are based on sample borrower profiles that vary by loan type. See our full loan assumptions here.
If you’re a small business owner, one of your top priorities is surely to save money on unavoidable expenses. Purchasing business supplies online at Amazon.com is one of the ways many small business owners also save time.
With the Amazon Business Prime Card from American Express, you can do both while earning up to 5% back on your Amazon purchases. Or you can forgo the hefty cash-back rate and receive 90 days of interest-free financing on your Amazon charges instead. And for purchases made anywhere else American Express is accepted, you can earn unlimited 2% back, regardless of your Prime membership status.
But this isn’t a premium rewards credit card, and it doesn’t offer you any travel rewards or benefits. It’s a simple card designed to save you the most money on your Amazon charges and other business expenses, and not much else.
What Is the Amazon Business Prime Card?
The Amazon Business Prime Card is a co-branded small-business credit card that’s accepted anywhere American Express cards are. When you use it to shop at Amazon.com, Amazon Web Services (AWS), Amazon Business, or at Whole Foods Market, you can earn 5% back on your purchases with a valid Amazon Prime Business membership or 3% without one.
Alternatively, you can choose to receive 90 days of interest free financing on those purchases. Either way, there’s no annual fee or foreign transaction fee.
This card also offers 2% back at restaurants, gas stations and wireless phone services purchased directly from service providers. You earn 1% back on all other purchases.
Additional benefits are limited but include extended warranty coverage and a purchase protection plan that covers losses from theft or accidental damage. The card’s online dashboard features enhanced data views that show purchases listed by item and are easy to download.
What Sets the Amazon Business Prime Card Apart?
This card has several positive features that distinguish it from its competitors.
5%/3% back or 90 days of financing. It’s great to have this choice. With it, you can maximize your rewards or minimize your interest charges, whichever is more important to you at the time.
Additional cash back outside of Amazon. It’s competitive to earn 2% back at restaurants, gas stations and for wireless phone services expenses.
Amazon Business Enhanced Data Views offer more insights into your expenses. The tight integration between Amazon and American Express allows you to get a better look at your expenses and where you might be able to tighten up.
Key Features of the Amazon Business Prime Card
This small-business credit card offers a simple rewards program and a few key benefits beyond that.
Sign-Up Bonus
You earn a $125 Amazon.com gift card upon approval. There’s no minimum spending requirement, so this is basically a lock to earn.
Earning Rewards
If you have a valid Amazon Prime Business membership, you earn your choice of 5% back or 90 days of interest-free financing on purchases from the following vendors:
Amazon.com
Amazon Web Services (AWS)
Amazon Business
Whole Foods Market
You only earn 5% rewards on your first $120,000 of spending each calendar year, which adds up to $6,000 in potential annual rewards at this tier. If you exceed the $120,000 spending cap in a given year, you can still take advantage of 90-day interest-free financing on eligible purchases.
If you don’t have a valid Amazon Prime Business membership, you earn 3% back on the first $120,000 in eligible spending. The 90 days’ interest-free financing option still applies.
Beyond the 5%/3% tier, this card earns 2% back at restaurants, gas stations, and on eligible wireless phone service purchases. It earns 1% back on all other purchases.
Redeeming Rewards
You can redeem your rewards points to save on items at checkout on Amazon.com and Amazon Business (U.S.). You can also apply them as statement credits toward prior purchases. Either way, they’re worth one cent each at redemption.
Important Fees
There’s no annual fee or foreign transaction fee. Other fees may apply.
Credit Required
This card requires good or better credit to qualify. If your FICO score is much below 700, or your personal credit history is limited, then you’ll likely have trouble being approved.
Pros & Cons
This card has several key advantages and disadvantages to understand before you take the time to apply.
Generous, easy-to-earn sign-up bonus
Choose between up to 5% cash back or 90 days’ interest-free financing on eligible purchases
Earn unlimited 2% back in several spending categories
No recurring card fees
Annual spending cap on 3%/5% rewards tier
Few perks beyond the rewards program
Pros
The Amazon Business Prime Card has a generous, flexible rewards program without an annual fee.
$125 gift card upon approval. This is a relatively generous sign-up bonus for a no-annual-fee credit card, and it’s extremely easy to earn. There’s no early spend requirement.
Up to 5% cash back on eligible purchases. With an eligible Amazon Prime Business membership, you can earn 5% back on eligible spending with Amazon companies, including Amazon Business, AWS, Amazon.com and Whole Foods Market. Otherwise, you earn 3% — still a nice return.
Option for 90 days’ interest-free financing. If you prefer, you can receive 90-day terms on your purchases instead of 5% cash back.
Broad 2% cash-back categories. Outside the Amazon ecosystem, you can earn 2% rewards on purchases at restaurants, gas stations and wireless phone services purchased directly from service providers.
No recurring card fees. This card has no annual fee or foreign transaction fees, so it has no carrying costs and no penalties for international business travelers.
Cons
Unlike some popular business credit cards, the Amazon Business Prime Card is light on nonrewards perks and has a spending cap on its top rewards tier.
Spending cap on 5%/3% rewards tier. Your 5%/3% rewards earning potential is limited to $120,000 worth of purchases in a year, or $6,000 in rewards earned in this tier. Fortunately, you can take advantage of 90-day interest-free financing at any time.
Few value-added perks. This card has no real travel perks or travel insurance coverage, so it’s not ideal for users seeking truly generous benefits.
How the Amazon Business Prime Card Stacks Up
This card’s closest competitor may be the The Costco Anywhere Visa® Business Card by Citi. While Costco offers online sales, it doesn’t have nearly the selection that Amazon.com does. On the other hand, Costco has hundreds of warehouse stores around the country, a physical footprint that Amazon can’t match.
Amazon Business Prime
Costco Anywhere Business
Annual Fee
$0
$0 (with your paid Costco membership)
Sign-Up Bonus
$125 Amazon Gift Card
None
Rewards Rate
Up to 5%
Up to 4% on gas and EV charging
0% Intro APR
90 day terms on Amazon purchases, in lieu of 3%/5% rewards
None
Foreign Transaction Fee
None
None
Credit Needed
Good or better
Good or better
Final Word
The Amazon Business Prime Card is a great way for small business owners to earn rewards worth 5% on their purchases. By far, that’s the biggest strength this card has. It offers few other perks and benefits.
Still, if your business spends a lot with Amazon companies like Amazon.com, AWS, and Whole Foods, this card makes perfect sense. Especially with no annual fee.
Editorial Note:
The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.
The Verdict
Our rating
Amazon Business Prime Card
This small business card is ideal for companies that spend heavily at Amazon.com, Amazon Web Services (AWS), Amazon Business and at Whole Foods Market. It offers your choice of up to 5% back or 90 days of interest free financing on those purchases, both of which are very hard to beat. It even offers a competitive 2% back on other common business services.
Just don’t expect all the perks and benefits of a premium small-business credit card. This is not a luxury product.
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Jason Steele is one of the nation’s leading experts in credit cards and travel rewards since 2008. Jason is also the founder and producer of CardCon, which is The Conference for Credit Card Media. Jason lives in Denver, Colorado where he enjoys bicycling, snowboarding and piloting small airplanes.
Unless you come by a huge influx of cash either by winning the lottery or through an inheritance; a mortgage remains the most affordable way to own a home. Among the tools that lenders use to determine your eligibility for a home loan is debt-to-income ratio, or DTI.
The ratio is used to determine how much of your income can go towards monthly mortgage payments as compared to other monthly debts that your income settles. Read on to find out how to calculate DTI and what ranges are desirable according to the industry standards.
What is a Debt-to-income Ratio & How is it Calculated?
A debt-to-income ratio is a number used to measure a person’s ability to manage their debt. This number is calculated using two key pieces of financial information: your debt and your income. By taking your total monthly debt and your total monthly income, which includes any money earned prior to taxes and deductions, you can determine your debt-to-income ratio.
In another example where the total debts are higher than $1,500 and income is still $4,000, you see an increase in the DTI. If you have monthly debt payments equal to $2,000, and your gross monthly income equals $4,000, your debt-to-income ratio will be 50%.
STEP 1. Determine your monthly liabilities. These include:
Monthly Home-related costs – If it is your first mortgage this will be sum of all monthly expenses that go towards paying your rent. It has to be expressed as a monthly amount i.e. if you pay an annual sum then divide it by 12. Similarly if you pay it quarterly, divide by 4. Add in the proposed or expected monthly payment for the mortgage you are considering.
Also included in this will be other housing costs such mortgage insurance, real estate taxes and homeowner’s association payments. In case you are a homeowner in the market for a second mortgage, the monthly payments you make towards your first mortgage will constitute the cost.
Although you could be paying monthly for utilities like power and gas, they are not taken into account in this summation. Same goes for food, health and car insurances, phone bill, your taxes and cable bill.
Monthly loan payments – A sum of all monthly loans that are deducted from your pay and show on your credit report. These include monthly remittances towards car loan, student loan, credit union and personal bank loans.
Monthly credit card payments – This is the sum of minimum payments that you make for each credit card. It excludes credit card debt that you settle monthly in full.
Other monthly obligations – This could be any other line of credit that involves financing. Monthly child support or alimony payments fall under these obligations.
This refers to your total pay before any deductions are made or simply pre-tax pay. This comprises of;
Basic wages or salary.
Bonuses and commissions
Alimony and or child support.
Income from investments (must be verifiable via your tax returns)
Tip: If you draw a salary, bonus or commission annually then divide it by 12 to arrive at its monthly value.
How to Calculate the Front-end Ratio
This is the home-related costs divided by your monthly gross income. It shows the amount of monthly income that can be freed to service the house loan you propose to get. To put this into context, suppose your monthly gross income is $6,000 and total monthly home-related costs are $1,500.
Front-end DTI = ($1500/ $6000) * 100 = 25%
How to Calculate the Back-end ratio
When lenders speak of DTI, this is mostly what they have in mind. It’s a ratio that shows the amount of your income that goes towards settling all your debts. It’s the sum of all monthly debts divided by your monthly gross income. Suppose your total monthly liabilities (including home related costs) in the above example is $2500 then,
Back-end DTI= ($2500/ $6000) *100 = 41%
Standards for Debt-to-income Ratio
A low DTI means that you have more of your income left after paying bills. Back-end ratio of 36% and front-end ratio of 28% or below is considered favorable by most lenders.
Back-end ratios of between 36%-49% translate to less amount left to spend. Lenders will view you as a potential defaulter. You may have to contend with higher interest rates and huge down payments for your loan.
Anything higher than 50% puts you on the red. It means half of your pay is going toward debt payments leaving you with little to spend or even take up a new financial obligation. This greatly reduces your chances of landing a mortgage.
What is the Ideal Debt-to-income Ratio?
If you aren’t thinking about applying for an auto or home loan, opening a credit card account, moving into a new apartment, or doing anything else that requires someone to review your credit and finances, you may not care too much about your DTI. But when you are seeking credit, part of the application process may include a thorough review of your finances. Even though it will vary, every creditor and lender has certain criteria that applicants must meet in order to approve an application, so they might be interested in examining your DTI to determine if you should be approved.
Since this number gives insight into how you manage your debt, specifically your ability to repay your debt, the higher your DTI, the more likely you are to be denied. Creditors will look for borrowers who have a debt-to-income ratio no higher than 43%. This means that if your monthly income is $4,000, your total monthly debt payments should be equal to no more than $1,720. Although 43% is acceptable to most creditors, a lower DTI is even better.
Improving Your Debt-to-income Ratio
If your DTI is above 43%, you have the power to change it. Since your monthly debts and income are the two important factors used to determine your DTI, there are a number of ways you can lower your DTI and get in a better position financially.
If you want to improve your debt-to-income ratio, one thing you can do is reduce the total amount of debt you owe. If you have taken out a loan for $5,000, your monthly loan payment will be included in your debts used to calculate your DTI. By making extra payments on your loan, you will be able to pay off the loan faster and reduce the amount of debt owed.
Additionally, if you want to improve your DTI, you can also avoid adding to your current amount of debt or increase your monthly income by taking on a hiring paying full-time job, part-time job, or gig.
Open a BMO Harris Premier™ Account online and get a $500 cash bonus when you have a total of at least $7,500 in qualifying direct deposits within the first 90 days of account opening. Expires 9/15. Conditions Apply.
Even the most aggressive stock market investors keep some cash on the sidelines. That balance helps offset market volatility and cover end-of-year tax payments on capital gains. It’s there when you’re ready to put more money in the market too.
Many brokerages hold cash in basic, boring accounts that pay little or no interest and have no real features of their own. Others, like Fidelity, offer more appealing cash management accounts with much higher yields and checking-like features.
There’s no contest. True cash management accounts are better. And the Fidelity Cash Management account is among the best of the bunch. Even if you’re not a current Fidelity brokerage customer, it’s worth checking out. Just make sure you understand how it works — and its limitations — before you apply.
What Is the Fidelity Cash Management Account?
The Fidelity Cash Management account is an FDIC-insured cash management account with no maintenance fees and competitive interest rates on eligible balances.
You can open a Fidelity cash management account without an existing Fidelity brokerage account. Once open, you can keep the entire balance in cash or use a portion of it to purchase stocks, ETFs, or mutual funds. You don’t need to apply for a separate brokerage account.
Fidelity cash management account balances up to $5 million earn 2.60% APY. Interest is variable above that threshold. Other notable features include a secure debit card compatible with major digital wallets, global ATM fee reimbursement, mobile check deposit, and online bill payments.
Unlike a traditional bank account, funds deposited into the Fidelity cash management account may be distributed among a network of partner banks rather than held with Fidelity. This enables much higher FDIC insurance coverage because more than one FDIC-insured bank is involved. It also offers the possibility (though not the guarantee) of higher yields because each bank sets their own interest rates.
What Sets the Fidelity Cash Management Account Apart?
The Fidelity cash management account stands out for several reasons:
Comes with a Visa debit card that works worldwide. This account comes with a Visa debit card accepted by millions of merchants worldwide. As a payment method, it’s as good as any other Visa debit card or credit card.
No limits or geographical restrictions on ATM reimbursements. Fidelity reimburses ATM fees worldwide. There’s no monetary limit to this privilege either.
FDIC insurance many times the standard limit. Although the exact limit is subject to change based on how Fidelity allocates the funds in your cash management account, Fidelity advertises up to $5 million in FDIC coverage. That’s 20 times the standard limit of $250,000.
Impressive mobile features. This account holds its own against any mobile-friendly checking account. It has a full lineup of mobile features in an easy-to-use app.
Key Features of the Fidelity Cash Management Account
Before you open a Fidelity cash management account, take some time to understand its core features and capabilities.
Account Yield & Requirements
This account yields 2.60% APY on the first $5 million. Fidelity allocates this portion of your balance among its FDIC-insured partner banks, but for all practical purposes, it’s held with Fidelity.
Any portion of your balance above $5 million goes into a Fidelity money market fund, which holds a mix of government securities. The interest rate on this portion is variable but generally lower than the rate on the partner bank portion. Importantly, there’s no FDIC coverage on balances held in money market funds.
Account Fees & Minimums
This account has no monthly or annual maintenance fee. There’s no minimum or ongoing balance requirement either.
Secure Debit Card
This account comes with a secure Visa debit card accepted by millions of merchants worldwide. The card itself has no additional maintenance fee, though fees may apply for foreign transactions or overdrafts.
ATM Access
This account’s debit card works at tens of thousands of machines worldwide: any with the Visa, Plus, or Star logos. Fidelity charges no ATM fees of its own and reimburses any fees charged by third parties, like other banks or ATM owners.
Mobile Features
This account has a user-friendly mobile app and a responsive web interface that works well on small screens. It has a full feature lineup:
Mobile check deposit
Digital bill payments
Digital wallet integration
Real-time spending view
Fast internal and external funds transfers
Deposit Insurance
This account has FDIC insurance on balances up to $5 million. Balances above that amount are held in a money market fund that has no FDIC coverage and can lose value due to market volatility.
Access to Stocks & Other Asset Classes
True to its name, the Fidelity cash management account is first and foremost a cash account. You can use it as you would any other checking account.
But because it’s associated with a major investment company, it’s also easy to use some or all of the balance to fund your investing activities. You can buy stocks, ETFs, and mutual funds directly out of your cash management account balance. If you want to trade in riskier asset types, such as options contracts, you need to apply for those privileges separately.
Pros & Cons
The Fidelity cash management account has plenty of upsides and a few notable downsides too.
Visa debit card accepted worldwide
No limits on ATM fee reimbursements
Lots of checking-like features
Very high FDIC insurance limits
Brokerage account link could be too much temptation
Yield isn’t competitive with the best savings accounts
Some traditional checking features missing
Pros
The Fidelity cash management account is a well-rounded cash account with enough firepower for higher-asset users.
Visa debit card accepted worldwide. This account comes with a Visa debit card that’s accepted by millions of merchants worldwide. Functionally, it’s as good as any checking account debit card.
No limit on ATM fee reimbursements. Fidelity is unusually generous when it comes to ATM fee reimbursements. No matter how many withdrawals you make, Fidelity covers the associated fees.
Lots of checking-like features. This account isn’t quite as good as a checking account, but it’s pretty close, and you might not need a checking account if your financial life is otherwise simple.
Very high FDIC insurance limit. Your Fidelity cash management account balance has FDIC insurance up to $5 million, many times the standard limit and high enough not to be an issue for the vast majority of users.
Integrates seamlessly with Fidelity brokerage account. Your Fidelity cash management account integrates seamlessly with your Fidelity brokerage account. That is, if you want it to. It functions perfectly fine as a standalone cash-only account too.
Cons
The Fidelity cash management account is stingier than some other cash management accounts and could tempt less sophisticated users with potentially risky investments.
Yield can’t match top cash management or savings accounts. Though variable, the Fidelity cash management account’s yield tends lower than the leading high-yield savings accounts and interest checking accounts. If your top priority is to maximize your return on cash balances, this isn’t the best account for you.
Direct access to stocks and ETFs could threaten users’ emergency savings. Traditional checking and savings accounts aren’t linked to online brokerage accounts, which means they don’t carry the temptation to invest FDIC-insured emergency savings (or any other cash balances) in stocks and ETFs that can lose value.
Some missing checking features. This account has important checking features like online billpay and mobile check deposit, but it’s not quite a full-service checking account.
How the Fidelity Cash Management Account Stacks Up
The Fidelity cash management account shares the spotlight with several other high-yield accounts tied to brokerage platforms. One of its top competitors is the Wealthfront Cash Account. Before applying for either, compare them head to head.
Fidelity Cash Management
Wealthfront Cash
Maintenance Fee
$0
$0
Yield
2.60% APY
4.55% APY
ATM Reimbursements
Yes, unlimited
No
FDIC Insurance
Up to $5 million
Up to $5 million
The Fidelity cash management account is clearly better for folks planning to use it more like a checking account, thanks in particular to unlimited ATM fee reimbursements. But Wealthfront has a significantly higher yield, which is a key consideration for many investors.
Final Word
The Fidelity Cash Management account is a checking-like deposit account with a much higher yield than most checking accounts and direct access to a low-cost digital brokerage. It has sky-high FDIC insurance limits and unlimited ATM fee reimbursements too, making it appropriate for high rollers.
It’s not perfect though. Its yield is lower than many competing cash management accounts, not to mention high-yield savings accounts, and it’s not quite a full-service checking account. Before you apply, make sure it’s the best choice for your cash management needs.
Editorial Note:
The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.
The Verdict
Our rating
Fidelity Cash Management Account
With a strong-but-not-industry-leading yield and very high FDIC insurance coverage, the Fidelity Cash Management account is an ideal place to park money you don’t need right away. It also has enough checking-like features to potentially replace your existing bank account. But it’s not the best option if all you care about is earning the most interest possible.
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Brian Martucci writes about credit cards, banking, insurance, travel, and more. When he’s not investigating time- and money-saving strategies for Money Crashers readers, you can find him exploring his favorite trails or sampling a new cuisine. Reach him on Twitter @Brian_Martucci.
When you’re buying a home, you probably have a million questions that need answering, especially when it comes to getting the proper insurance to protect your investment.
Soon-to-be homeowners may see both title and homeowners insurance on the lending documentation and wonder what the difference is between the two. While both types of insurance can provide vital coverage for homeowners, they differ vastly in their purpose and protection.
What Is Homeowners Insurance?
A homeowners insurance policy protects a home and personal property from loss or damage. It may also provide insurance in the event someone is injured while they are on the property.
Here are some common things homeowners insurance may cover:
• Damage that may occur in the home, garage, or other buildings on the property • Damaged, lost, or stolen personal property, such as furniture • Temporary housing expenses if the homeowner must live elsewhere during home repairs
Depending on the policy, homeowners insurance may also cover:
• Physical injury or property damage to others caused by the homeowner’s negligence • An accident that happens at home, or away from home, for which the homeowner is responsible • Injuries that take place in or around the home and involve any person who is not a family member of the homeowner • Damage or loss of personal property in storage
Some coverage may also apply to lost or stolen money, jewelry, gold, or stamp and coin collections.
Buying Homeowners Insurance
While someone can legally own a home without taking out homeowners insurance, the mortgage loan holder may require the homeowner to purchase an insurance policy. Typically, lenders do require this as a condition of the home loan.
It’s important to understand that homeowners need to insure the home but not the land underneath it. Some natural disasters — tornadoes and lightning, for example — are covered by typical homeowners policies. Floods and earthquakes, however, are not. If you live in an area where floods or earthquakes are common, you may want to consider purchasing extra insurance to cover damages from potential disasters.
Special coverage may also be worthwhile for those who own valuable art, jewelry, computers, or antiques. There are two policy options that can help homeowners replace insured property in the event of damage or a loss. Replacement cost coverage covers the cost to rebuild the home and replace any of its contents, while actual cash value simply pays the current value of the property at the time of experienced loss.
When it comes time to shop for and buy homeowners insurance, start by asking trusted friends, family, or financial advisors for their recommendations. Do some online research, too. Before you make a final decision, contact multiple companies and request quotes in writing to compare their offerings. That process can give you a good idea of who is offering the best coverage for the most affordable price.
Recommended: Is Homeowners Insurance Required to Buy a Home?
What Is Title Insurance?
Title insurance provides protection against losses and hidden costs that may occur if the title to a property has defects such as encumbrances, liens, or any defects unknown when the title policy was first issued.
The insurer is responsible for reimbursing either the homeowner or the lender for any losses the policy covers, as well as any related legal expenses.
Title insurance can protect both the homeowner and lender if the title of the property is challenged. If there is an alleged title defect, which the homeowner may be unaware of at the time of purchase, title insurance can provide protection to cover any losses resulting from a covered claim.
The policy will cover legal fees incurred if there is a claim against the property.
Recommended: How to Read a Preliminary Title Report
Buying Title Insurance
Both home buyers and lenders can purchase title insurance. If the home buyer is the purchaser, they may want to insure the full value of the property. (The value of the property will affect how much the policy costs). When the lender is the purchaser, they typically only cover the amount of the homeowner’s loan. When it comes time for a home buyer to purchase title insurance, they have full choice of the insurer.
According to the Real Estate Settlement Procedures Act (RESPA) of 1974, the seller cannot require the home buyer to purchase title insurance from one certain company.
Lenders are required to provide a list of local companies that provide closing services, of which title insurance is just one. But it may be worth doing independent research. Lenders may not select their recommendations based on the home buyer’s best interest, but instead because a service provider is an affiliate of the lender and provides a financial incentive in exchange for a recommendation.
Again, it’s a smart idea to seek the counsel of friends and family and do online research to uncover competitive prices and learn which service providers have a solid reputation.
Recommended: What Are the Different Types of Mortgage Lenders?
The Takeaway
Homeowners insurance is an ongoing cost (billed monthly, quarterly, or annually) that helps cover damage or loss of the home and possessions within the home. Title insurance, on the other hand, can help protect against losses caused by defects in the title and is a one-time fee payable during the closing process. The advantage to having both types of coverage is that each policy can protect homeowners against financial loss in very different circumstances.
Shopping for homeowners insurance often requires considering several options, from the amount of coverage to the kind of policy to the cost of the premium. To help simplify the process, SoFi has partnered with Lemonade to bring customizable and affordable homeowners insurance to our members.
Lemonade is a name you can trust. It has exceptional ratings, is fully licensed, and reinsured by some of the most trusted names on the planet. Plus, it donates any leftover money to nonprofit partners chosen by customers.
Check out homeowners insurance options offered through SoFi Protect.
SoFi offers customers the opportunity to reach the following Insurance Agents:
Home & Renters: Lemonade Insurance Agency (LIA) is acting as the agent of Lemonade Insurance Company in selling this insurance policy, in which it receives compensation based on the premiums for the insurance policies it sells.
SoFi Mortgages Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Today we’ll check out SWBC Mortgage, short for Southwest Business Corporation.
They’re a Texas-based direct-to-consumer mortgage lender, which is part of a larger diversified financial services company called, you guessed it, SWBC.
Their claim to fame is being a top company to work for, and they boast that many of their loan officers have made the list of top 1% of mortgage originators in America.
They currently offer home loans in 40 states and the District of Columbia. Let’s learn more about them.
SWBC Mortgage Quick Facts
Direct-to-consumer retail mortgage lender founded in 1988
Headquartered in San Antonio, Texas
Funded nearly $4 billion in home loans during 2019
More than a quarter of total loan volume came from home state of Texas
Have branch locations in many states across the country
Licensed in 40 states and D.C.
All loan processing, underwriting, and closing is done in-house
Last year, SWBC Mortgage originated roughly $4 billion home loans via the retail channel.
They allow prospective home buyers and existing homeowners to apply via their website or a brick-and-mortar branch.
A good chunk of their total loan volume comes from their home state of Texas, and they also do quite a bit of lending in Colorado, Tennessee, and many Southern states.
About two-thirds of total production came from home purchase lending, with about a quarter refinance business and the remainder powered by home equity lending (HELOCs).
At the moment, they don’t appear to provide mortgage lending services in the states of Hawaii, Maine, Massachusetts, Missouri, New York, North Dakota, Rhode Island, South Dakota, Vermont, or Wyoming.
Getting a Home Loan with SWBC Mortgage
You can apply directly from their website in minutes
Digital mortgage application known as TurnKey powered by Blend
Can link financial accounts and/or scan and upload documents securely
They say they’re generally able to close loans in less than 3 weeks
When it comes time to apply for a mortgage, you can do so directly from the SWBC website. They have a digital mortgage application called “TurnKey” powered by fintech company Blend.
As the name suggests, you can quickly get through the application thanks to technology like income and asset validation, which lets you link financial accounts instead of inputting that information manually.
At the same time, you can expect one-on-one customer service from a dedicated loan officer if you need any help along the way.
To that end, you can choose a loan officer to work with before you apply by using the directory on the SWBC Mortgage website.
Simply click on “Find a Pro,” then search by city, state or zip code, or by loan officer name. Once you find a branch, you can see who works in that office.
And once you’ve got your loan officer picked out, you can contact them directly or apply from their own dedicated webpage.
All in all, SWBC Mortgage makes it super easy to apply for a home loan without needless steps and wasted time. But you also get the human touch if and when you want/need it.
Loan Types Offered by SWBC Mortgage
Home purchase and refinance loans
Conforming mortgages backed by Fannie/Freddie
Government-backed loans: FHA, USDA, and VA
Jumbo loans up to $3 million loan amounts
Home renovation loans: Fannie Mae HomeStyle and FHA 203k (Standard and Limited)
Texas Vet Mortgage Loans
SWBC Mortgage offers both home purchase financing and refinance loans, including rate and term and cash out refinances, along with home renovation loans.
You can finance a primary residence, second home, or multi-unit investment property.
They’ve got all the typical loan types, such as conforming loans backed by Fannie Mae and Freddie Mac, as well as government loans like FHA loans, USDA loans, and VA loans, the latter two allowing zero down financing.
They also offer home equity loans by way of HELOCs, so if you want to tap your home equity while leaving your first mortgage intact, you can do so.
It may also be possible to take out a piggyback second mortgage if you want to extend your home purchase financing while avoiding PMI.
If you have a particularly expensive property, they offer jumbo home loan financing as high as $3 million, with some of their jumbos coming with down payment options of just 10%.
They also have options for self-employed borrowers, and low down payment options (3% down) for those with little set aside in the way of assets.
Lastly, because SWBC Mortgage participates in the Veterans Housing Assistance Program (VHAP), they’re able to offer Texas Vet mortgage loans that come with special interest rate discounts.
In terms of loan program, you can get a fixed-rate mortgage, such as a 30-year or 15-year fixed, or an adjustable-rate mortgage, like a 5/1 ARM or 7/1 ARM.
SWBC Mortgage Rates
SBMC does not advertise or disclose its mortgage rates online or elsewhere to my knowledge. If you want to get pricing, you’ll need to apply and/or speak with a loan officer.
As such, it’s unclear how competitive they are relative to other mortgage lenders. The same goes for lender fees, which don’t appear to be posted on their website.
This isn’t necessarily a bad sign, it just means you’ll need to speak to someone to find those things out.
Once you have that important pricing information, you can compare their interest rates and closing costs to other lenders while comparison shopping.
Yes, you should take the time to gather more than one mortgage quote, otherwise you’re doing yourself a disservice.
SWBC Mortgage Reviews
SWBC says it has over 1,000 Google reviews, with an average customer rating of 4.9 out of 5 stars. Those reviews may be spread across their many branch locations, so be sure to filter by location.
Some of their locations are very highly-rated, such as the Oklahoma City branch, which has a 5-star rating out of 5 on Birdeye based on nearly 250 reviews.
You can also see individual SWBC Mortgage loan officers’ reviews on Zillow – some have more than others, but this is perhaps the best way to drill down and see how one person performs as opposed to just looking at the entire company.
Since they’re large and located across the United States, it may be best to look at individual reviews for an indication of future performance.
SWBC Mortgage is an accredited company with the Better Business Bureau, and currently enjoys an A+ rating.
SWBC Mortgage Pros and Cons
The Good
Can apply for a home loan directly from their website in minutes
Offer a digital mortgage application powered by Blend
Plenty of loan options to choose from including home equity products
PrimeLending, a Texas-based retail mortgage bank, aims to expand its market share by growing within its existing footprint in a margin-thinning environment.
The lender brought on 100 loan officers in June, bringing the total number of LOs to about 800. Licensed in 23 states across the country, PrimeLending has 150 branches including satellite and primary retail locations.
“We are dialing down data, metrics and information that allow us to target communities and markets where we again think we have a competitive advantage and we’re using that strategy across the country,” Gene Lugat, executive vice president of strategic support at PrimeLending, said in an interview.
“Companies may be struggling in one way or another. We’ll reach out to those loan officers in markets where we have existing retail branch locations. We’re certainly putting out in both the social media and through our local retail offices that we want the right loan officers,” Lugat added.
While mergers and acquisitions (M&A) is an option for PrimeLending, it’s a challenging market to execute such deals. Instead, tapping high-volume loan officers in targeted locations has worked for PrimeLending.
“We would prefer to be picking up the loan officers without the branches, without physical locations,” Lugat noted. “Because we’re trying to backfill into where we have existing retail opportunities and we have space.”
PrimeLending sees an opportunity to grow in the entire Southwest region and Texas in particular, where the lender is headquartered. The goal is to expand its overall market share to 1% this year from 0.6%.
PrimeLending, led by president and CEO Steve Thompson, ranked as the 34th largest mortgage lender in the first quarter of 2023, with an estimated origination volume of $1.73 billion, a 54% decline from $3.76 billion in Q1 2022 (which was roughly in line with industry peers). Production dropped about 15.2% from the fourth quarter of 2022’s $2.04 billion, according to data from Inside Mortgage Finance.
The target client base for PrimeLending is first-time homebuyers, as the entire industry is struggling to overcome the lock-in effect. Nearly 92% of U.S. homeowners with mortgages have an interest rate below 6%, according to Redfin.
While the 30-year fixed-rate mortgages are the bread-and-butter products for PrimeLending (accounting for about 95% of origination volume), down payment assistance programs, renovation loans and temporary rate-buydowns have become popular options for buyers, Lugat noted.
Competition in the industry is even more fierce with the number of mortgage transactions expected to drop to 5 million in 2023 from 16 million in 2019, Lugat said, citing data from the Mortgage Bankers Association (MBA).
A combination of higher loan amounts, cash buyers and a radical drop of refi volume add to the difficulty of today’s environment.
“This is a battle for a very finite amount of buyers that are entering into this space. (…) You have to be presenting your borrowers in the best possible light just to get their contracts accepted, pre-qualifying borrowers and trying to get them in an approved subject to appraisal and any other condition so they can be in a position to win,” Lugat said.
My Upside review takes an in-depth look at the Upside app, which used to be called GetUpside, to help you decide if it’s worthwhile for you to use.
Are fuel prices eating up your budget?
Prices for things have gone up in many areas, especially diesel and gas prices. If you’re looking for ways to save a little bit of money, then I have a new idea that you may not know about yet, and I’m talking about the Upside app.
Upside is an app that helps you find gas stations, groceries, and restaurants where you can earn cash back on regular purchases.
The Upside app, formerly known as GetUpside, is very easy to use. You simply sign up for a free account, and then look at the map in the Upside app to find places near you where you can earn cash back on gas, groceries, and on restaurant meals.
You can earn up to $0.25 per gallon cash back at gas stations, up to 30% back on your grocery purchases, and up to 45% back when you go out to eat at a restaurant.
I did a search on my phone and saw many fuel stations which were offering $0.55 per gallon for diesel cash back, and one that even offered $0.67 cash back per gallon. I should probably tell you that we mostly use diesel for our RV.
With Upside, you can earn cash back at more than 50,000 gas station locations in the United States. This includes many popular fuel stations, such as BP, Shell, Marathon, Phillips 66, RaceTrac, Circle K, and many more.
You won’t earn a ton of money using the Upside app, but you can definitely use it to make a little cash back over the course of the year. For example, if you fill up your fuel tank four times each month and buy 15 gallons each time, at $0.25 per gallon cash back over a 12-month period, you would get $180 cash back.
And that’s for doing something that you already do!
Upside users have already earned over $300,000,000 in cash back since the app was launched, so you know that you can trust them.
You can sign up for Upside for free here. I’m also sharing a special invite code in this Upside review that you can use to earn an extra $0.15 per gallon cash back the first time you use the Upside app. My special invite code is UMN2J.
Related content:
Upside Review
What is Upside?
Upside is a mobile app that was started in January 2016 as GetUpside. It changed names in 2022 and has quickly grown since it launched. Upside partners with gas stations, grocery stores, and restaurants near you that want to get you to visit them by giving you enticing offers.
Upside gives you cash back on both gas purchases and food. Over $1,000,000 is earned by Upside users each week!
Upside works at:
Gas stations: You can get up to $0.25 per gallon cash back on gas at 25,000+ gas stations and convenience stores across the U.S.
Restaurants: You can get up to 45% cash back at 17,000+ restaurants, cafes, fast food places, and more.
Grocery stores: You can get up to 30% cash back on groceries in select cities like Minneapolis, St. Louis, Los Angeles, Chicago, Phoenix, and Raleigh. It’s available in pretty much every major city in the U.S.
It’s available on both the App Store and Google Play. There are over 300,000 great Upside reviews on the App Store alone (average of 4.8 out of 5), so you know this app is a good one!
How does Upside work?
The app is very easy to use, and it only takes about five minutes to sign up and start using. Once you have your account, you simply buy the things you already need and earn real cash each time.
There’s no limit to how much you can earn, and you can still use coupons, discounts, and loyalty programs as well. So you can stack your savings, which is what many Upside app reviews say is their favorite feature!
Here are the steps to get started with Upside:
Sign up for free here.
Connect your cards.
Find and claim your cash back offer through the Upside mobile app.
Pay as usual at the gas station, store, or restaurant.
Submit your receipt or check in.
Receive cash back that you can redeem for actual cash or a digital gift card.
Upside is easy to use as you can see.
You can cash out whenever you want via PayPal cash, gift card, or bank transfer.
How do you get paid on Upside?
The way you get paid is that you cash out whenever you want via PayPal cash, gift card, or bank transfer to your bank account.
Some of the free gift card options include:
Amazon
Apple
CVS
Dunkin Donuts
Lowe’s
Starbucks
Taco Bell
Walmart
Target
Does Upside give money back?
Yes!
You can earn up to $0.25 per gallon cash back at gas stations (even more for diesel!), up to 30% back on grocery purchases, and up to 45% back at restaurants.
They also have a referral program so that you can refer your friends and family and earn even more cash back.
To redeem your cash back through Upside, you can simply go to the Upside app and click on your balance amount in the top right corner. Then click on how you want to redeem your earnings. You can choose “Your bank account,” one of the many gift cards, or PayPal cash.
Upside may charge you a fee if you are cashing out small earnings. The fees include:
Bank account transfer: There is a $1 fee for redemptions less than $10.
PayPal cash: There is a $1 fee for if you redeem less than $15.
Gift card: There is no fee, but some gift cards may have a minimum account that you must put on a gift card.
Now, you can skip the Upside fee if you refer one person and they are actively using Upside.
What gas stations can you use with Upside?
Upside app gas stations include BP, Shell, Circle K, Marathon, Phillips 66, RaceTrac, Speedway, Chevron, Exxon, Conoco, Valero, Casey’s, 76, and more.
How does Upside work for gas?
You open the Upside app, look at the in-app map to see which gas stations are offering cash back, claim your offer in the app, fill up like you normally would, and then take and submit a picture of your receipt.
Does Upside have a gallon limit?
Each cash back offer on the Upside app is valid for up to 50 gallons of gas or diesel.
What grocery stores use Upside?
Grocery stores include Piggly Wiggly, Schnucks, Save a Lot, Gelson’s, Cardenas Markets, Vicente Foods, and more.
You can also use the Upside app for your restaurant purchases at big chains, such as Dairy Queen, Denny’s, Wendy’s, Arby’s, Burger King, Papa John’s, Dunkin Donuts, and more. It does not, however, work on delivery services such as DoorDash or Uber Eats. I did a quick search on restaurants near me, and I found up to 20% cash back at restaurants that I have been to in the past – that is such an easy way to save money!
How long does it take to get money from Upside?
When you take a picture and submit your receipt on Upside, it takes around 10 days for the cash back to process. The delay is the most common complaint in Upside gas app reviews, but it’s because receipts are checked against a gas station or store’s transaction data to confirm purchases.
Once you put in your request to get your cash back through Upside, you should see the funds in 24-48 hours.
What is Upside Check In?
Check In is a feature on Upside that makes it even easier for you to get cash back. Instead of taking the time to take a picture of your receipt, you just check in. All you need to do is claim and offer and then check in once you get to the gas station, so you don’t need to submit a receipt.
This isn’t available at all businesses, only ones that have a blue lightning badge next to their business name.
Once you’ve checked in, you have 20 minutes to make your purchase.
If you accidentally purchase items before checking in, you can still earn cash back. You can simply just head to the Help area in the Upside app and let them know.
How does this work if you don’t need a receipt? Upside does this by matching your transaction data with the store’s records by using the time, amount, and the last four numbers on your credit or debit card that you used.
What’s the catch with the Upside app?
Not all gas stations and grocery stores are on the Upside app. You may decide to switch up where you normally go so that you can get cash back from Upside.
Plus, remember that you do not get a discount as you are at the store or gas station. Instead, you get the cash back afterwards.
Fortunately, the cash that you earn through the Upside app never expires.
Why do I have to claim an offer before I make my purchase for Upside?
This is a slight downside with Upside, only because you may forget to claim an offer and not save money on your purchase!
It can be easy to forget and then have a little regret later just because you forgot such a simple step. That makes sense.
So why do you need to claim an offer as the first step?
Upside needs you to claim an offer first through their mobile app because they want to make sure that you are seeing the correct cash back amount. Offers are changed all the time, and they want to make sure you are happy with the offer that you are going to receive.
Upside also wants you to claim the offers because they want you to make your purchase within a certain time period. Gas stations and stores through Upside are constantly changing their cash back offers because it is dependent on their real-time needs.
Why does Upside need my credit card information? Is Upside safe?
In order to use Upside, you have to add your credit or debit card that you use to make purchases to your Upside “My Wallet.”
This is because Upside verifies your purchases with the companies that you shop at.
But do not worry. They do not see your full credit card number. They only see a part of it. All of the information you share with them, including full credit or debit card number as well as your identity, is secured via third-party encryption.
What else do I need to know about how to use the Upside app?
I want to make sure I cover everything in my Upside review, so here are some other things to know when using Upside:
You have to make sure to claim your offer in the Upside app before you make your purchase.
Make sure you get a receipt because you will need to take a picture of it with your cell phone.
Make sure to use a credit or debit card. To earn cash back with Upside, you need to make your purchase with a debit or credit card. Unfortunately, cash, prepaid credit cards, prepaid debit cards, gift cards, WIC, and EBT are not eligible forms of payment for Upside cash back offers. Upside says this is because “Using a credit card or debit card allows us to make sure the person who claimed the offer is the one making the purchase. This way we can show businesses working with Upside that their offers for you are driving more business for them.”
Upside is available as a mobile app for Apple iOS (through the Apple App Store) and Google Android (through the Google Play Store)
How does Upside make money?
This is a common question. After all, why does Upside give people like you and me money? What’s in it for them?
Upside makes money from referral commissions. When you shop through a company that is listed in the Upside app, Upside earns money from that company.
Upside partners with nearby businesses who want to win users over with great offers they won’t get anywhere else.
Here’s exactly what Upside says: “Upside has profit-sharing arrangements with participating businesses. When we bring them a customer or a purchase they weren’t expecting (and prove it!), then together we share in the profit earned on that purchase. Users get cash back for choosing that business, and businesses get more sales. It’s a win-win, and Upside doesn’t get paid until both make money first.”
Is the Upside app legitimate?
Yes, Upside is legitimate. Upside is not a scam.
People across the U.S. use Upside every single day and earn cash back. According to Upside, frequent users of their mobile app save an average of $148 each year. That’s not a ton of money, but it’s enough to cover your Netflix bill for the year if you think about it like that.
According to the Better Business Bureau, Upside reviews are 4.82 out of 5.0 from over 2,800 reviews. And you can go to the BBB website to read through many of the great Upside reviews posted by real users.
Upside Review – Is the Upside gas app worth it?
I think the Upside app is well worth it. It’s easy to use and doesn’t take up too much of your time. There is also no fee to use Upside as it is a free app!
If you’re looking to save some more money on your everyday purchases that you make in real life, then Upside is a great app to use. You can save money at gas stations, convenience stores, restaurants, and grocery stores around the United States, and there are probably places that you already visit and spend money at where you could be saving money!
One great thing about using the Upside app is that there is no limit to how much money you can earn, and you can still use coupons, discounts, and loyalty programs as well. That means you can stack your savings by doing all of these things and save even more money.
You can download and sign up for Upside for free here. You can also use my Upside promo code UMN2J to earn an extra $0.15 per gallon bonus the first time you use the Upside app.
Do you use the Upside app? Do you have any other questions that I didn’t address in my Upside review? You can ask in the comments, and I will answer them!
We do not write a lot of business with AXA, but the company has always performed well when we have worked with them.
This AXA life insurance company review was one of our more interesting because, though they were an honorable mention for our best life insurance company ratings, I really had not learned that much about them until now.
When people go to purchase a life insurance policy, there could be any number of different reasons why. For example, it could be for either personal or business purposes, meaning that the beneficiary of the policy may be a family member, a loved one, or even a charitable organization.
But regardless of what the coverage is for, there are still certain factors that you will need to keep in mind as you go through the life insurance purchasing process.
One of these criteria is the amount of protection that you are obtaining. This is because you will want to ensure that those who receive the life insurance proceeds will have enough funds to do what the coverage was intended for.
Yet another key item that people may not be aware of when buying a life insurance policy – but should be – is the importance of the insurance company that they are obtaining the coverage through.
This is because the insurer should ideally be stable and strong financially, and it should also have a good and positive reputation for paying out claims to its policyholders. That way, you will have more assurance that if and when a claim may need to be filed, your policy beneficiary (or beneficiaries) will be receiving their promised funds.
One company that has great respect in this area is AXA Equitable Life Insurance Company.
The History of AXA Equitable Life Insurance Company
AXA Equitable has been in the business of insuring its customers ever since the year 1859. This is when its founder, Henry Hyde – who was already in the insurance industry – left his current position at the Mutual Life Insurance Company of New York in order to begin his company. He initially named the firm Equitable Life Assurance Society of America. By the tenth year of its operation, Equitable Life Assurance Society of America had more new business than any other company worldwide.
As Equitable continued to grow, it built a new headquarters in 1870 – a skyscraper that included steam elevators. And, after an expansion just nine years later, the company’s building became the tallest building in the world at that time.
In the late 1800’s, Equitable marketed the very first joint and survivor annuity. The company also began the practice of paying out life insurance death claims immediately. In addition, the insurer appointed its very first female agency manager.
Throughout the years, the company continued to grow substantially. In 1992, it converted over from a mutual to a stock company. It also became a member of the Global AXA Group – and, by 2015, it had celebrated its 7th consecutive year as the best insurance name around the globe (as measured by the Interbrand annual report).
AXA Equitable Life Insurance Company Review
AXA Equitable offers a wide range of products and services to its customers. These include insurance and investments to help with both growing and protecting wealth. The company also offers employee benefit plans and other financial services for businesses.
Overall, AXA employees approximately 166,000 people in 64 countries, and worldwide the company has 103 million total customers. This large institution is extremely active in the communities through which it works, as well as in providing scholarships for college students.
For example, via the AXA Achievement program, the company assists both students and parents to take the next step towards college, as well as helps educators to take steps towards success.
Also, through the AXA Foundation, the company directs philanthropic and volunteer activities. The company also has a strong commitment to Corporate Responsibility. AXA Equitable is also known for being one of the world’s Top 10 insurers, according to the Insurance Journal. This ranking is based on the company’s non-banking assets.
Financial Strength and Ratings
AXA Equitable is considered to be an extremely strong company from a financial standpoint. It also pays out its insurance claims quickly and consistently to its policyholders. For these reasons and more, the insurer has been provided with high ratings from different agencies. These include the following (as of mid- and late 2015):
A+ from A.M. Best Company (Superior). This is the second highest out of a total of 16 possible ratings.
AA- from Fitch. (Very Strong). This is the fourth highest out of a total of 21 possible ratings.
Aa3 from Moody’s. (Excellent). This is the fourth highest out of a total of 21 possible ratings.
A+ from Standard & Poor’s. (Strong). this is the fifth highest out of a total of 21 possible ratings.
Also, AXA Financial has been an approved business of the Better Business Bureau (BBB) since 1937. The company has been provided with a grade of A+ from the BBB (on a grade scale of A+ to F).
Throughout the previous 3 years, AXA has closed a total of 37 objections through the Better Business Bureau (13 of these were closed during the preceding twelve months). Of these 37 complaints, 20 had to do with the company’s products/services, four had to do with the company’s advertising/sales, and 3 had to do with the company’s billing/collection issues.
Life Insurance Products Offered By AXA Equitable
AXA Equitable offers a wide variety of different life insurance coverage products to choose from. This can allow its customers to better “customize” their policies to more closely fit their coverage needs. Life insurance products that are offered include both term and permanent options.
With a term life insurance policy, a death benefit is offered for a specific period of time. In most cases, the premium will be level for that time frame, and after the time has expired, the insured will need to re-apply for coverage if he or she still requires protection – unless the policy provides the ability to convert over to a permanent policy.
Because term life is considered to be the most basic form of life insurance – and it does not provide cash value build up – it can often be purchased very affordably. This is especially the case if the applicant is younger and in relatively good health at the time of application.
AXA Equitable offers the BrightLife Term product. This offers affordable premiums, which are guaranteed to stay level for time periods of 1, 10, 15, or 20 years, depending on which policy is chosen. Once the time frame has elapsed, the premium amount will increase each year. In order to qualify for a BrightLife term insurance policy, an applicant will only need to answer just eight simply questions on the application for coverage.
The policies can be very large and are available for more than $1 million of life insurance.
Permanent Life Insurance Coverage
With a permanent life insurance policy, there will be both death benefit protection, and also cash value. As long as the premium is paid, a permanent life insurance policy will typically remain in force for the remainder of the insured’s lifetime. This is the case regardless of his or her increasing age, and whether he or she contracts an adverse health condition.
Permanent life insurance also includes a cash value or investment component in the policy. Here, the policyholder is permitted to accumulate a savings or investment fund on the side on a tax-deferred basis. This means that there is no tax due on the gain in the account unless or until the funds are withdrawn.
The funds in this account can be withdrawn for any reason. Likewise, they may be borrowed, usually at a very favorable interest rate. This can be done for any reason that the policyholder sees fit.
There are several types of permanent life insurance that are offered through AXA Equitable. These include:
Whole life insurance is considered to be the simplest of all of the permanent life insurance options. This is because the death benefit is guaranteed, and the cash value will grow at a set rate of interest over time. The premium amount is also locked in, never to increase.
AXA offers Interest Sensitive Whole Life. This is a permanent policy with a guaranteed minimum cash value that increases every year and equals the policy’s face amount when the insured reaches age 100. (Although the policy account value may be enhanced by additional interest).
Universal Life Insurance
Another type of permanent life insurance policy is universal life. Here, too, the policy has both a death benefit and a cash value component. However, these policies are more flexible because the policyholder can – within various guidelines – choose how much of the premium will go towards the death benefit, and how much will go towards the cash value.
AXA Equitable offers the Bright Life Protect universal life insurance policy. This is a flexible premium policy that offers the opportunity for lifetime insurance protection, as well as the potential accumulation of cash value via the allocation to a select account and / or a fixed account within the policy.
Variable Universal Life Insurance
A variable universal life insurance policy is type of permanent life insurance that combines death benefit protection with an investment opportunity. Here, the policyholder will obtain the protection of a death benefit, and via the cash value component, they can choose various equity investments such as mutual funds. This can allow the funds to grow much more than those that are in a whole life insurance policy. There can, however, also be more risk due to the market exposure.
AXA Equitable offers the Incentive Life Optimizer lll variable universal life insurance policy. This offers death benefit protection, along with the potential for cash value accumulation via a customized and professionally managed investment portfolio.
There is also the Incentive Life Legacy lll variable universal life insurance policy. This policy was created more for those who are seeking affordable permanent life insurance, but who would also like to put their premium to work through market sensitive investment options.
Other Coverage Products Available
In addition to life insurance, AXA Equitable also provides a number of other coverage products, as well as investments and advisory services.
Just some of the other offerings provided by AXA include the following:
How to Find the Best Life Insurance Premium Quotes on Coverage
When searching for the top life insurance premium quotes for coverage – whether it is on a policy via AXA Equitable Life Insurance Company, Banner Life, or through any other life insurer – it is typically the best course of action to work with an agency or brokerage that has access to multiple insurance carriers.
This is so that you can directly compare several different policies, benefits, and premium prices, and then you can determine which one will work the perfectly for you and your specific coverage needs.
This is not only true for your purchase of life insurance but for other forms of coverage as well, such as auto insurance and health insurance, make sure to obtain more than one or two quotes so that you are getting the best rate for your needs.
We know that the buying of insurance coverage can be an important decision. With all of the various things to be conscious of – as well as the many carriers – it can be difficult to choose. That is why it is important to have someone to walk you through the process of determining which will be the greatest for you. Reach out to us today.