Whether
you are looking into life insurance options, starting to develop your
estate plan, or just looking for financial and life planning advice, you should
realize why life insurance is so important. The leder we
recommend will provide information on the :
Covering the basics.
We'll get you all the basic facts surrounding life insurance and your
options. This will give you instant working knowledge on life insurance
and
give you the background for you to develop your own plan with a
professional.
Planning for special needs.
Life insurance policies are more than to just cover funeral expenses.
We'll show you how you can use your life insurance to plan for all
contingencies.
Life insurance is becoming a more affordable investment.
Last year's revision of life expectancies translates to better life
insurance deals or consumers. We'll show you why and how to take
advantage of it.
Single Premiums
What are they? How could they affect your life insurance and life
planning goals. One particular plan, known as single-premium life,
offers a variety of investment choices, tax advantages on both earnings
and death benefits, and even access to your money, under certain
conditions.
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Planning Your Life Insurance
Life
insurance helps ensure that your family and loved ones are protected
against financial difficulties in the event of a premature death. It
can also be an essential vehicle for estate planning, for protecting a
small business, for caring for a disabled relative - even caring for
yourself.
Where
to begin? Life insurance is a financial resource for your loved ones in
the event of your death. You enter into a contract with an insurance
company that promises to provide your beneficiaries a certain amount of
money upon your death. In return, you make periodic payments. The size
of the premiums is generally based on factors such as your age, gender,
medical history and the dollar amount of life insurance you select.
Some policies may require a medical exam before premiums are
established.
Certain
types of life insurance may also provide benefits for you and your
family while you're still living. Policies such as whole life or
universal life accumulate cash value on a tax-deferred basis, and that
value can be used to supplement your retirement income or help provide
for a child's education. Life insurance is an important part of
anyone's financial portfolio. Financial advisors often recommend
developing a financial plan that includes an appropriate amount of life
insurance as part of a comprehensive strategy for financial security.
What
kind of life insurance and how much, if any, do you need? And, who can
you trust that shares your values and understands your goals? Sign up
for our newsletter or sign up to have a professional in our network
contact you.
Things You Need to Know before you talk to an Insurance Agent
Parenting
According
to the U.S. Department of Agriculture, American parents spend in the
neighborhood of a quarter of a million dollars to support a child
through age 18. That figure doesn't even include the mother of all
child-related expenses, a college education. Of course, most families
wish to give their children more than the basics when it comes to
financial support and that's where a smart financial plan comes into
play - including life insurance and trusts.
Where are You Vacationing?
You
can get life insurance if you smoke or sky-dive. But good luck if you
plan to visit Israel , Colombia , Kenya , or Saudi Arabia . Some big
U.S. insurers, including Allstate Corp., won't insure anyone, for any
price, who plans in the next three years to visit one of those
countries or the other 22 now on the State Dept.'s travel-warning list.
Are life insurance benefits taxable?
Death
benefits are usually not subject to federal income tax. There are
exceptions, though, if the IRS deems your insurance policy to be an
investment in disguise or if the benefit pushes your estate pass the
estate tax thresholds. Your insurance agent should be able to tell you
if your policy benefits will be taxable.
Who can you insure?
There
must be an insurable interest in order for one party (you) to take out
life insurance on another party (parents, children, etc.).
Do
they support you, or do you live with them and rely on them for any
financial support or living situation? If yes, you may be able to get a
life policy on them.