No-load life insurance is designed for fee-only advisors, but there are limitations to this kind of policy, including no blanket agreement, which represents the best value for the consumer. Moreover, some states have restrictions and regulations on fee-based insurance advising and consulting. These policies are designed to help reduce policy costs, especially surrender charges in the early years.
Read MoreLife Insurance; Tony Steuer Columns
What Taxes Apply to Life Insurance Premiums
The life insurance industry has developed in complexity and diversity over the years. When life insurance policies were originally created, they were insurance vehicles but over time, they’ve also become investment vehicles. Ultimately, all of this leads to a complex tax structure.
Read MoreWhy Should I Consider a Life Insurance Policy Replacement?
A life insurance policy is a financial asset, which needs to be reviewed on a regular basis to ensure you are getting the value you expect, in exchange for the premium dollars you pay to the life insurance company. Your policy could be affected by a change in personal preference, the issuing company’s financial condition or increased competition in the insurance industry. In some instances, replacing your pre-existing policy with another one may be more beneficial for you, but it is a very big decision to make.
Read MoreDonating Life Insurance To a Non-profit Organization
Donating a life insurance to a non-profit or charitable organization is fairly common. The donation of a life insurance policy to a charity favors both the donor and the recipient. A gift of this magnitude will typically results in an income tax deduction for the donor.
Read MoreWhat Are the Risks Associated With Premium Financing?
Like any other financial investment, there are risks associated with a premium-financing arrangement. One risk alone – or in combination with another – could cause the entire program to fail. This is why it is advised to be aware of them before making a decision.
Read MoreHow Does Stranger-Owned Life Insurance Work?
Stranger-owned life insurance (STOLI) is exactly as it sounds – life insurance originated by a stranger. Typically, they are initiated by a third party looking to own and control a policy from the beginning.
Read MoreStranger-Owned Life Insurance, STOLI, a Speculative Financial Instrument
Stranger-owned life insurance (STOLI) is the most recent attempt to twist life insurance into a speculative financial instrument to take advantage of the unique tax features of life insurance (i.e., income tax-free death benefits and cash value accumulation).
Read MoreWhat Is Insurable Interest?
Insurable interest means that the person who is purchasing the policy has more to lose than to gain by the insured’s death and therefore may purchase a life insurance contract on somebody else’s life. This is intended to prevent a person purchasing a policy unknowingly on another person for purposes of wagering, planned murder, or any other reason.
Read MoreWhat Is a Life Settlement?
A life settlement allows a person to sell a life insurance policy and receive a cash amount higher than the cash surrender value. The policy ownership is transferred to an unrelated investor in exchange for a cash payment in excess of the policy’s cash surrender value.
Read MoreHow Can I Track Down a Missing or Unknown Policy?
In order to receive the death benefit of a recently deceased insured, you have to file a death claim through the life insurance company. This may be a problem if you do not know which company held the insured’s life insurance policy. Here are some helpful tips to both finding a policy and keeping it safe for your beneficiaries to find.
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