Life Insurance Tax Treatment – Understanding the Procedures The purpose of a life insurance policy, no matter which of the many types you choose to purchase, is to provide your family and any other beneficiary with financial security once you have passed away. The funds paid out by the insurance company once the policy holder has died can be dispersed in a few different ways, thus resulting in different tax treatments. If you...more
Primary Purposes of Life Insurance – Protecting Your Family Financially The one non-negotiable aspect of life is the inevitable fact that everyone must die someday. This seems like a morbid thought, but when you realize that you need to be taking steps to protect your family once you pass on, you will understand the importance of recognizing the inevitability of death. There is no way to predict when something might happen to...more
Survivorship Life Insurance – The Perfect Estate Planning Tool In exploring the various types of life insurance, you undoubtedly want to find an option that will work best for your situation. One less conventional option is to choose survivorship life insurance. Also called second to die life insurance or joint and survivor life insurance, this kind of insurance policy will provide insurance for the lives of two individuals at the same time. In general, a husband and wife will take out this kind life insurance policy. The death benefits will not be paid to the beneficiary until both insured individuals have died. Survivorship life insurance falls under the permanent life insurance umbrella because once you open it, you need not worry about renewing the term. The reason why a couple may choose to take out a survivorship life insurance policy together is because it is a more affordable option than buying two separate policies when insuring the beneficiaries of both parties involved. Another reason to take out this kind of policy is because it is specifically designed to help pay for estate taxes. Since estate taxes are delayed until after both parents...more
The Many Uses of Permanent Life Insurance – Benefits During and After Your Lifetime The term "permanent life insurance" suggests that once you have your policy, you keep it for life. Since the death benefits associated with the policy cannot be claimed by your beneficiaries until you pass away, the name is quite appropriate. ...more
Types of Single Premium Life Insurance – Two Options for Investing Your Money If you can leave your family a substantial amount of money once you have passed on, you will guarantee their comfort and benefit from great peace of mind during your remaining years alive. There are many different kinds of life insurance, which can...more
Types of Term Life Insurance – Three Options to Consider Life insurance is important for anyone who supports a family to look into today. What if you were in an accident and left your family without any means of income? Life insurance addresses this possibility by offering your family a financial safety net in case of your loss of life. Term life insurance is one of two broad categories of life insurance that you can acquire today. Even if you decide that term life insurance is right for you, there are still more decisions to make. This is because there are three different types of term life insurance policies that you can choose from, each offering differences that may better suit your situation. The first choice is annual renewable term life insurance. The rates with this option are guaranteed for one year. The rates you pay will increase each passing year. This is the simplest form of term life insurance offered today. Your plan will start out quite inexpensively if you take out your policy at a young age and as you grow older—thus increasing your chances of passing away—your policy will go up in price. Your ability to renew can occur...more
Types of Whole Life Insurance – Four Options to Choose From Whole life insurance is one of the two broad categories of life insurance you have to choose from today. The other option is called term life insurance. If you decide...more
Cheap Life Insurance- Finding the Best Insurance for Your Money When you are shopping for cheap life insurance, you might feel like it is the impossible task. For some people, that may very well be the case. If you take the time to...more
Life Insurance- Guaranteed Approval Policies for Everyone Life insurance isn't easy to get. People who are young and healthy can get approval almost anywhere and for almost any type of policy. However, people who are older or have even...more
Life Insurance- How to Choose the Right Type of Coverage Buying life insurance is not an easy task. You can't just run to the store, grab a policy, and go. You have to think about your needs, look at different coverage options, and...more
Life Insurance- How the IRS Defines it for Tax Purposes Understanding life insurance is not at all difficult, but understanding the premise of life insurance policies as the IRS does is a little more complicated. In 1984, as more...more
Life Insurance Death Benefits- What You Should Know about Taxation Almost every life insurance policy has death benefits paid at a tax-free rate. That means that if you have $200,000 in benefits, your beneficiary will receive this...more