Variable Life InsuranceOne of the more popular forms of life insurance out there is variable life insurance. But why is this complex form of life insurance gaining such popularity, and how can it benefit your financial foundation?Understanding Variable Life InsuranceVariable life insurance is a form of whole (or permanent) life insurance. That means that once you have had a policy approved and issued it will offer you insurance benefits for your...more
If you have been comparing life insurance rates then chances are good that you have looked at term life insurance. Term life insurance is a terrific product for people who: 1. Need a high dollar death benefit with a low dollar premium. 2. Need a temporarily high amount of life insurance death benefit. 3. Need a gradually decreasing amount of life insurance. 4. Need a simple, small burial policy.Understanding Term Life InsuranceTerm life...more
Private placement life insurance (PPLI) typically requires a minimum premium commitment of $1 million or more. By pooling their available assets, two or more grantors of (i.e., contributors to) an irrevocable life insurance trust (ILIT) can reach the minimum premium commitment of a PPLI policy. The insured may be one of the grantors, but need not be.Through creative drafting of the trust document, an ILIT (also known as a dynasty trust) can provide for multiple grantors (contributors) and various beneficiaries. Each of the grantors allocates part of his lifetime gift and estate tax exemption and generation-skipping transfer tax (GSTT) exemption to cover his contribution to the trust.A tax-efficient method of building wealth in a dynasty trust is the purchase of a private placement life insurance (PPLI) policy that serves as an "insurance wrapper" around investments. As a result, investments grow tax-free during the life of the insured, and upon death of the insured, proceeds are paid to the trust free of estate taxes. PPLI is especially useful for holding tax-inefficient short-term investments, such as hedge funds, as well as long-term high-growth...more
When buying life insurance, there are basically two types of insurance products, Term life insurance and Permanent life insurance. Term insurance offers temporary risk protection for a very affordable price, especially in the early years of the term. Permanent insurance offers lifetime coverage, usually for a fixed or declining cost. One of the...more
If you are a business owner, chances are you have life insurance policy. But a buy sell agreement ads further protection for the longevity of your business. A buy sell agreement is a type of agreement that works along side a life insurance policy. The way a buy sell agreement works is if a business owner dies, the surviving owner (or owners) would...more
To begin with, you need to understand that life insurance falls into two very broad categories: Whole and term. The basic difference between term and whole life insurance is this: A term policy is life coverage only. In whole life insurance policy, as long as one continues to pay the premiums, the policy does not expire for a lifetime. As the term applies, whole life insurance provides coverage for the whole life or until the person reaches the age of 100.Whole life insurance policies build up a cash value (usually beginning after the first year). With whole life, you pay a fixed premium for life instead of the increasing premiums found on renewable term life insurance policies. In addition, whole life insurance has a cash value feature that is guaranteed. In term and whole-life, the full premium must be paid to keep the insurance.With level premiums and the accumulation of cash values, whole life insurance is a good choice for long-range goals. Besides permanent lifetime insurance protection, Whole Life Insurance features a savings element that allows you to build cash value on a tax-deferred basis. The policyholder can cancel or surrender the whole life insurance policy at any...more
Long-term needs are not constant due to the fact that they are needed in a long period of time. The costs are usually high in states like New Jersey, Washington, and California where long term care is needed most. A wide-ranging survey...more
What is the most important thing in life?We all value different things so obviously the answer will be different for all of us.Even though we value different activities and prefer to have different possessionsall of us will undoubtedly value one...more
Do you understand variable life? It may be easier to understand if we can contrast it to whole life insurance.It is a permanent policy, and it can grow a cash value. But it is also different than traditional whole life.A whole life policy does have a...more
When shopping for life insurance, disability insurance or health insurance you might have been approached by any number of agents representing different companies to offer you advice and insurance products. Very often agents who represent only one...more
Life insurance agent- Tips to become a good insurance agent A good insurance agent should be excellent sale person with a pleasing personality. The insurance agent must possess superior mathematical skills and constantly keep up-to-date on any...more
Many whole life insurance policyholders tend to abandon their policies and lose their investment after paying so much for insurance and investing in the future. They may find a more appropriate policy for them and be aware of the different things...more