Before you let that old, unwanted life insurance policy lapse, it may be wise to check all of your options. Better yet, check to see if your policy could be sold for cash to investors. You could have a pleasant surprise ahead. What is a Life Settlement? The process of selling an unwanted or unneeded […]
Selling one’s life insurance policy for a life settlement is a good decision if the insured has been diagnosed with a terminal illness or their existing policy isn’t performing as expected, and once you’ve decided that selling your life insurance policy for a life settlement is a good idea, you’ll need to go through the […]
What are some tips to consider prior to selling a life insurance policy through a viatical or life settlement?
People living with a terminal illness are often faced with very tough financial decisions, and selling their life insurance policy for a viatical settlement can help ease some financial worry. It was originally intended for AIDS patients to have early access to their life insurance policies, but has expanded to include other conditions such as cancer, heart disease, and any other life-threatening illness.
Equity-indexed life insurance (EIUL) is a newer form of universal life, which combines elements of variable insurance into the mix. Most EIUL policies, unlike traditional universal life, have two separate accounts that can be used to credit interest. One account has a fixed interest rate that is declared by the insurance issuer, periodically. The other provides an equity option, which offers you the opportunity to benefit from positive equity/stock market returns.
At one time, Code section 2039(c) provided an unlimited exclusion for the amount distributed at a participant’s death from a qualified retirement plan to the extent attributable to employer contributions. That exclusion has been eliminated. Subject to certain transition (grandfathering) rules, a decedent’s executor must include in the gross estate the value of any payment […]
Special tax treatment applies to small groups (i.e., groups insuring under ten lives). In under-ten group term life plans, premiums are tax deductible for the employer and not taxable income up to the $50,000 limit only if the following conditions are met: The employer provides As its name implies, group universal life combines the economy […]
Proceeds of group term life insurance are includable in the insured’s estate if they are payable to or for the benefit of the insured’s estate, or if at death the insured holds any incident of ownership regardless of who is named as beneficiary. Incidents of ownership include the right to change the beneficiary and the […]