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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The Importance of Policy Illustrations

The Importance of Policy Illustrations

When dealing with permanent cash-value life insurance, sales are usually based on illustrations and product analysis. These illustrations are used to highlight project interest rates and future values, which are then shown to potential clients. But before any decisions, it is important to understand all the elements and components of these policy illustrations.

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What Is a Life Insurance Clean-up Fund?

What Is a Life Insurance Clean-up Fund?

Without life insurance or a substantial savings, a clean up fund is impossible to justify. And this is just one category of the life insurance economics.

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Does Life Insurance Benefit Me While I’m Alive

Does Life Insurance Benefit Me While I’m Alive

The words “life insurance” mean “death benefits” to most people – a useful tool only after a policyholder has died. Many don’t realize the important benefits a life insurance policy can provide while the policyholder is still alive. “Cash values available through permanent life insurance can provide funding to supplement retirement income,” said State Farm Insurance spokesperson, Angie Rinock. “Cash values through permanent life policies grow at interest rates that are generally guaranteed by the insurer.” A policyholder can also take out…

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Top Answers to Questions About Whole Life Insurance

Top Answers to Questions About Whole Life Insurance

To completely grasp the benefits of whole life insurance, you’ll need to understand the underlying details involve,d and to help you fully understand those issues, we’ve put together a list of answers to the top questions about whole life insurance. According to a study commissioned by the National Association of Insurance Commissioners, less than half of American consumers feel confident about making insurance decisions, and only 2 out of 5 U.S. consumers feel confident about answering…

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How Personal Bankruptcy Can Affect Life Insurance Policies

How Personal Bankruptcy Can Affect Life Insurance Policies

Filing for bankruptcy is usually person’s worst nightmare, but when it comes to protecting your assets (including the value of your), information is key.

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Why Should I Get Whole Life Insurance?

Why Should I Get Whole Life Insurance?

It seems to be a common theme of ordinary whole life coverage that each benefit helps supply another one.

The entirety of a contract provides lifelong protection. Due to the length of time you are covered, the regular premium payments can be spread out so that you can pay them at a lower cost. These level premium payments then allow for the policy to accumulate a reserve of cash that can be used at a later time to take out a loan on a house or pay for college tuition.

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Are Term Life Conversions An Option If I’m Healthy?

Are Term Life Conversions An Option If I’m Healthy?

Consumers may benefit from term life insurance conversion

Most Americans understand the functions of a term life insurance policy, but many may not know how it can save them money when they convert their policy to a plan that provides coverage for a longer period of time.

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Why Children Need Life Insurance

Why Children Need Life Insurance

Every child should be covered in some way with life insurance. Losing a child is unthinkable but you have to be realistic and the loss of a child can cause real financial hardships.

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