Why Should I Consider a Life Insurance Policy Replacement?

Why 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.

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What Is Insurable Interest?

What 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.

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What Are the Income-Tax Consequences for Life Insurance Policies?

What Are the Income-Tax Consequences for Life Insurance Policies?

The value of a life insurance policy can impact a number of situations. For example, the possibility of a taxable gain if the policy is surrendered, which is often omitted in sales presentations. The inside interest is typically income tax deferred, which is either income-tax exempt or partially income tax exempt – depending upon how the policy terminates and the circumstance surrounding termination.

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