Is a Policy Inside a Qualified Retirement a Good Idea?

Is a Policy Inside a Qualified Retirement a Good Idea?

Paying life insurance and annuity premiums with qualified-plan dollars is quite controversial. Every situation is different; some may benefit from a plan life this while others may not. A good place to start is by looking at a 403(b) plan, which is a tax-deferred retirement plan for employers of school and other nonprofit organizations.

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What Are the Differences Between Term Life and Permanent Life Insurance

What Are the Differences Between Term Life and Permanent Life Insurance

Life insurance is a financial security net that protects your family when you pass away. It provides monetary support, which can be used to pay for the funeral, help make ends meet, pay off debt or even help pay for future expenses like college tuition. Its tax-free payment that can be used for any purpose after an unexpected loss. Is term life or permanent life insurance right for you? One benefit that life insurance has over direct…

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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 Whole Life Insurance and Will It Really Last Until I Die?

What is Whole Life Insurance and Will It Really Last Until I Die?

Whole life – often called ordinary life or straight life – is the original permanent life insurance policy, which is still the most commonly used in-force policy today. Over the past 20 years, this policy has become less popular, with the introduction of universal life, variable life, and variable universal life. These policies are less rigid than whole life.

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What Life Insurance Has Cash Value?

What Life Insurance Has Cash Value?

The metaphor of a barrel rolling down a hill is a basic portrayal of how a cash value life insurance policy works. It effectively explains how premiums add funds to the account, how insurance companies take out their expenses and how to calculate your surrender value.

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Cash Value Life Insurance Explained

Cash Value Life Insurance Explained

Permanent life insurance has a level premium that must be paid to keep in-force, which is generally higher than the premium for term life. But in return, permanent policies will accumulate a cash value, which is often tax deferred. Under most circumstances, you can borrow against the policy value.

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Should I Buy Term Life Insurance or Permanent

Should I Buy Term Life Insurance or Permanent

While it’s controversial among the experts, the question of whether to buy term life insurance or permanent life insurance – and invest the difference – is a key factor in building a successful financial strategy. People who purchase life insurance generally associate themselves into one of two “camps” who prefer one type of insurance to the other. The whole life camp consists of the “True Believers,” to whom buying life insurance is the answer to every…

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What Do I Need to Know About Life Insurance Inside a Qualified Plan?

What Do I Need to Know About Life Insurance Inside a Qualified Plan?

Qualified retirement plans are designed to encourage employees to save money now, so that they will have enough to sustain themselves when they are no longer working. A plan like this meets all the requirements of the Internal Revenue Code, which means it is eligible for certain tax benefits. In simpler terms, a qualified plan is a tax-favored accumulation vehicle like permanent (cash value) life insurance.

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Seeing Into The Future of Your Life Insurance Policy With An In-Force Illustration

Seeing Into The Future of Your Life Insurance Policy With An In-Force Illustration

An in-force illustration is the only way to gauge the potential future performance of a policy by using actual values and current assumptions (i.e., actual interest rate, current mortality and expense factors) to produce a current policy illustration. It allows you to compare past (actual) performance with anticipated performance.

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Economic State Strains Cancer Survivors

Economic State Strains Cancer Survivors

With the costs associated with cancer treatment on the rise, consumers are advised to secure a life insurance policy as it could help pay off outstanding debts.

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