When it comes time for you to purchase a life insurance policy, you have the option of choosing from five different types of policies with each of them offering their own unique benefits. These five basic types of life insurance policies are term life, whole life, universal life, endowment, and annuity. The basic structure of the first four is to create a principle sum or estate through either the death of the insurer or through…Read More
The most common reason for purchasing a life insurance policy is income replacement. For the rich, payment of estate taxes is another major purchase motivator. The basic life insurance policy provides coverage for death by any cause, at any time, in any place, except for suicide within the first two policy years (one year in some states). Life insurance is designed to protect named beneficiaries against the sudden loss of income being provided by the…Read More
Northwestern Mutual completed a study that surveyed over 2,000 respondents on the state of financial planning in America – including behaviors toward money. The study found that while 70 percent of “Highly Disciplined” planners feel ‘very financially secure’ – vs. 51 percent of “Disciplined” planners – just 34 percent of Informal planners and 17 percent of non-planners feel the same about their security. Highly Disciplined planners who are retired are much more likely than non-planners to…Read More
Financial security is a top concern for anyone these days, especially for young families or those just starting out in life. Saving up for a down payment on a house, car or college tuition means the topic of life insurance can take a back seat to seemingly more pressing issues.
Yet this is precisely the kind of financial instrument that can provide parents with the financial security they and their offspring would need in case of an untimely death—through a tax-free payout from the insurance company.Read More
If you or another income-earning family member died today, what would your family’s financial situation be like? It’s not a pleasant subject to consider, but the knowledge that there are funds to help cover your family’s daily needs and costs provide a small comfort. One way to ensure your family’s survivors have immediate cash after a death is thorough and proper planning, as well as life insurance, says Edward E. Graves, author of McGill’s Life…Read More
As more families continue to struggle to pay bills, the number of those choosing to forgo individual life insurance has increased. The Trends in Life Insurance Ownership study by LIMRA reveals that less than half of American households have life insurance.
When paying bills is difficult, it may seem like paying for life insurance isn’t a necessity. However, those who are just getting by may be the ones that need life insurance the most. If something were to happen to the breadwinner in a family, many would not be able to make ends meet.Read More
The 101st running of the Indianapolis 500 is set to kick off on May 28, and during the most storied race in motorsports, the cars and drivers cover 200 laps of the 2.5-mile track at blistering speeds in excess of 200 miles per hour. They rip along a course which remains very nearly the same as it was the year it was constructed back in 1909. At a capacity of 250,000 permanent seats, Indianapolis Motor…Read More
An irrevocable life insurance trust is when the trust is the owner of the insurance policy, which keeps the proceeds of the life insurance out of the taxable estate. Also, gifts can be made to fund the premiums, which will ultimately reduce the taxable estate. After your death, the trust’s assets – also known as the insurance proceeds – are available to your beneficiaries income-tax-free.Read More
If you are in the market for life insurance your agent might suggest purchasing a guaranteed rate life insurance policy. This simply means the premiums would remain level for a certain length of time or eventually increase depending on the type of policy offered. Most agents suggest a rate guarantee that matches the length of time the policyholder thinks they’ll need coverage.Read More
Insurance companies can use several methods to assess what premium rate class will be assigned to an individual based on their substandard risk(s).Read More