Universal Life Insurance
Universal Life is a type of permanent life insurance based on a cash value. That is, the policy is established with the insurer where premium payments above the cost of insurance are credited to the cash value. The cash value is credited each month with interest, and the policy is debited each month by a cost of insurance charge, and any other policy charges and fees which are drawn from the cash value if no premium payment is made that month. The interest credited to the account is determined by the insurer; sometimes it ...
Tax Treatment of Annuities
An annuity is a contract issued by an insurance company and usually referred to as an annuity policy or annuity contract. What makes annuities different is the tax treatment given them by the IRS. Think of an annuity as an umbrella. When money is placed under the umbrella or annuity contract, it is treated differently as far as taxes go. The money that you put in an annuity is referred to as a premium, it’s your original contribution or principal contribution. Since you already have paid taxes on it, it never again will be subject to ...
Term Life Insurance
5 Year Term Insurance
Usually “term life” is purchased to replace an income so that if the insured dies others will have funds to maintain a similar lifestyle. 5 year term life insurance is issued for a 5 year term of time. The premium remains the same for the whole 5 years. Why and who would purchase life insurance for such a short period of time? First, let’s look at...
10 Year Term Insurance
10 year Term Life Insurance is the kind that gives you the most protection for your dollar. The premium will remain level for the full 10 year period. The premium is guaranteed not to increase and the coverage will not decrease during the 10 years. 10 year term insurance does not accumulate cash to pay premiums later when mortality cost are higher, but...
20 year term insurance
So you wonder if you need term life insurance for 20 years… You can choose from several terms of life insurance, 5 year, 10 year, 15 year, 20 year, 25 year, 30 year or even longer more. It might seem difficult deciding which plan you need. It is important to do some planning before you choose. 20-year term life insurance, like all term life insurance...
30 Year Term Insurance
Many folks purchased life insurance when their family was young and often bought the term that fit their budgets, with policy coveage that lasted 10,15, or 20 years. But when the policy period ends what do you do? Good planning is in order when you buy. What will happen when the term runs out and you want or need coverage for a longer time? Maybe choosing...
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Other Types of Life Insurance
Final Expense Insurance
About Burial Insurance and Why You Need It Ever thought of buying a burial insurance policy? Well, funeral costs have gradually been increasing and you need to consider this issue seriously. You would not want to leave your relatives and friends with a financial burden at the time of your death. Therefore, it is extremely important to plan for such an eventuality....
Key Man Life Insurance Quotes
Keyman Life Insurance Key man insurance is insurance purchased on the life of an employee or owner of a company. The intent is to cover expenses incurred as a result of the death of a key employee. Some examples are: •lost sales or revenue •hiring of interim staff until a permanent replacement is found •costs associated with hiring and training a replacement...
Return of Premium Life Insurance
Here is how it works….you decide to purchase term life insurance on your life. Your agent tells you about a new plan that will cost a little more that the term insurance you were going to buy, but this insurance policy guarantees that if you die your family will receive the full face amount of the policy, but if you know that you are not going to die Continue reading Read More →
1035 Transfer
1035 refers to a provision in the tax code which allows for the direct transfer of accumulated funds in a life insurance policy, endowment policy, annuity policy to another life insurance policy, endowment policy or annuity contract without creating a taxable event. Title 26, Subtitle A, Chapter 1, Sub chapter O, Part III, Section 1035 states that “no gain...
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Permanent Life Insurance
Permanent Insurance: Ownership of Life Insurance Policies and Life Insurance Trusts
1. If used properly, life insurance can be one of the estate’s most valuable and flexible tools. Insurance can be used in a variety of ways. a. First, life insurance can create an immediate estate, which ordinarily might take years to accumulate. Example: An average wage earner may need a long period of time to save $100,000. An estate of $100,000 can be created immediately by the purchase of a… Continue reading Read More →
Permanent Life insurance and the use of Personal Life Insurance
All the money one can save just seems to not be enough. No matter how much money a person has managed to save, it is seldom enough to meet either routine or extraordinary expenses of survivors immediately after the death of a provider. Some of the major financial requirements that can be satisfied by the proceeds from an adequate life insurance policy after the death of an insured include… Continue reading Read More →
Universal Life Insurance
Universal Life is a type of permanent life insurance based on a cash value. That is, the policy is established with the insurer where premium payments above the cost of insurance are credited to the cash value. The cash value is credited each month with interest, and the policy is debited each month by a cost of insurance charge, and any other policy charges and fees which are drawn from Continue reading Read More →
Whole Life Insurance Quotes
When you shop for life insurance, you’ve got two basic options: term or permanent life insurance. Term life insurance covers you for a specific period of time, usually 10, 15, 20 or 30 years. If you live past your policy’s term, there is no payout to your beneficiaries. Permanent life insurance, such as whole life, universal life or variable universal life insurance, covers you… Continue reading Read More →
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