Survivorship Life Insurance Policies In estate planning, you have many tools available. If you have considerable income and assets that you want to leave to your heirs, then you must plan carefully to ensure that your beneficiaries receive the full benefit of their inheritance. Survivorship life insurance is a type of policy that can assist in making in easier to distribute your estate as well as manage the taxes involved in...more
Types of Term Life Insurance, Choose the Right One for You! Term life insurance is one of the most commonly purchased types of life insurance. It differs from whole life insurance in that the policy holder pays premiums and is only eligible for the benefits of the insurance during the relevant amount of time the insurance is in effect. For example, a fifteen year term insurance policy will only pay out the death benefit if the...more
Survivorship Life Insurance - What Are Its Uses? The primary purpose of just about any type of life insurance policy is to provide for the beneficiaries of the policyholder once they have passed away. Whether the money is intended to be used to help the surviving members of the policyholder's family continue to live standard they have become accustomed to or to cover the debts left behind by the insured individual, each person must decide who and how much money they intend to leave behind order to choose the right policy. In some cases, life insurance can also be used as an investment tool to help provide extra funds for an individual once he or she reaches retirement. There are also life policies that are designed to serve specific functions beyond simply leaving something behind for a person's loved ones. In the case of survivorship life policy, for example, the policy is designed with estate taxes specifically in mind. This is a type of insurance is often purchased by wealthier couples in order to cover any estate taxes that may be due at the time of the final spouse's passing. This type of insurance is also referred to as second to die insurance since it does...more
Markets and Uses for Universal Life Insurance When people think of life insurance, they generally automatically assume it is only for end of life monetary benefits to their loved ones in the event of their passing. Although the primary purpose of life insurance is to pay out a death benefit to your family, it can be used for other...more
Characteristics of Single Premium Life Insurance When people think of life insurance, they typically do so in terms of the monthly payments they have to pay over the time frame relevant to the type of insurance they want to purchase. This is generally because most people do not have significant savings, especially the young, and must...more
Defining Life Insurance for Taxation Purposes Life insurance is not only a great idea for future planning. It is not only a great idea for investment purposes. It is one of the best ways to shelter yourself from taxes. The money inside a life insurance policy is not taxable. Even if you use the money inside the policy to invest, you will not have to pay taxes on it. You will not have to pay taxes on the returns you get either, as long as they stay inside the policy. Dividends earned, returns made, and loans that come out of the insurance are not taxable inside the policy.Dividends are offered on some types of life policies. Many allow you to stipulate how you want to use those dividends. You can get them as a check in the mail. You can set up your policy to use dividends to go toward your premiums or toward supplemental insurance. You can get dividends to be added to any investing that is going on within your policy. As long as the dividends stay inside the policy, they are not taxable. You are not required to report these dividends as income as long as they are sheltered inside the policy. Returns on your investments made as a part of a life insurance policy are...more
Characteristics of Variable Life Insurance Products Although variable life insurance products pay out a death penalty when the policy holder dies, it can actually be looked at as more of an investment vehicle for your cash. Part of the...more
Corporate-Owned Life Insurance The death of a key employee in a business represents a terrible loss to the corporate family. It can also cause considerable financial loss particularly if the person was a significant owner in the...more
Life Insurance Tax Treatment No matter what you do, you can't get away from having to pay taxes. This even includes the payout from a life insurance policy. There are a few different ways that the proceeds from a life insurance policy...more
Evaluating Life Insurance Needs People tend to put off buying life insurance. The main reason may be that they do not want to think about their death. More often than not, though, it is also that they do not know how to evaluate their...more
Term Life Insurance - The Pros and Cons A life insurance policy means that an individual has an immediately established estate to leave to their beneficiaries once they pass away. It is of particular importance for the person in a...more
Types of Life Insurance - Are They All The Same? Life insurance is a tool that many people use to provide a healthier or more robust estate for their beneficiaries. There are a number of different types of life policies available but...more