Frequently Asked Questions

Life Insurance Frequently Asked Questions

8 smart steps for buying life insurance

Posted on by Insurance Information Institute
8 smart steps for buying life insurance

How to find coverage that meets your needs and budget Life insurance can form a vital part of your family’s financial stability and well-being but, if you’re like most people, you may find the thought of shopping for the right type of coverage a little daunting. Fortunately, these eight simple steps can guide you along the way. 1. Determine whether you actually need life insurance Most people do, but not everyone. If no one depends…

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Is Life Insurance Worth It?

Posted on by Debbie Klimas
Is Life Insurance Worth It?

Protecting what matters most was the focus of a recent survey done by financial services firm Edward Jones and nonprofit consumer-education organization Life Happens in December 2018. Not surprisingly, the survey found that 81 percent of Americans believe their family is their most valuable asset, but less than half (41 percent) are protecting their family with an individual life insurance policy. One third of the over 2,000 Americans surveyed (32 percent) indicated that life insurance is either a low priority or no priority item when starting a family

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Know This Before Disputing A Life Insurance Beneficiary – It’s An Uphill Climb

Posted on by Emily Miller
Know This Before Disputing A Life Insurance Beneficiary – It’s An Uphill Climb

You hired a divorce attorney, split your possessions amicably, remarried, and lived happily ever after for 30 years. Everything’s been taken care of, right? Wrong.

Did you remember to change the beneficiary on your life insurance policy? If not, there’s a good chance your life insurance proceeds might go to your previous spouse, leaving your current partner with nothing more than a pile of bills.

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When Taxes Will Apply to a Life Insurance Death Benefit

Posted on by Tony Steuer
When Taxes Will Apply to a Life Insurance Death Benefit

The common misconception is that life insurance is not subject to taxation, which is half-true and half-false. Life insurance is almost always not subject to income taxation; however, under current tax law (2003), it is still subject to estate taxation. As a general rule, life insurance death proceeds are excusable from the beneficiary’s gross income (IRC Sec. 101(a)(1)). Death proceeds from single-premium, term life insurance, periodic-premiums, or flexible premium life insurance policies are received income…

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4 Things Wealthy People Know About Insurance

Posted on by Todd Halterman
4 Things Wealthy People Know About Insurance

Businesses are finding out it’s now a sucker bet to underestimate how long someone will live these days, and it can prove expensive to governments and pension funds, but it also provides individuals with an opportunity. “In a multi-stage life, the idea of hitting a cliff-edge retirement at 65 and then living off an annuity is outdated,” Alistair Byrne of State Street Global Advisors told The Economist. “It’s not at all obvious that the traditional…

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