Many people opt for term life insurance rather than whole life, or permanent, insurance for many different reasons. Term life insurance is also commonly referred to as term assurance, and is the original form of life insurance developed. Term life insurance actually builds no cash value over time, so it is not considered to be a relevant investment for retirement purposes or financial planning. Term life insurance actually provides coverage for a limited amount of time, which is the relevant term.
Once the term life insurance period has ended, you will be able to choose between dropping the policy or to continue paying annually, usually at an increased premium, to continue the coverage. Most term life insurance policies cover a period of ten, fifteen, twenty, and twenty-five years, although custom policies can be written for individuals, based on need. If the policyholder should die within the covered term, the death benefit will be paid to the beneficiary named on the policy, usually a spouse or child.
Term life insurance is the most affordable way to purchase and maintain a substantial death benefit in which you pay for coverage on a per premium basis. This type of insurance works much like every other type of insurance coverage in that you pay monthly (or quarterly) premiums in exchange for coverage contained within the policy. As long as the premium payments are kept up to date and the term has not expired, claims filed will be satisfied. Furthermore, it is important to know that you should not expect premium returns if you never file a claim. Term life insurance is purely risk protection for you and your loved ones.
Because term life insurance provides death protection for a predetermined period of time, also known as the term, it may very well be the simplest form of life insurance known. Term life insurance is ideal for the family living on a budget that needs temporary life insurance protection. This type of insurance can be purchased in large amounts (for long periods of time) at very low premiums, which most people can afford. This flexibility and affordability is ideal for a family who needs just a little extra coverage as they raise their young children, or in case they need to pay off loans in the case of one partner’s death.
As term life insurance is not meant to be permanent life insurance, in most cases it can only be renewed up until you reach the age of 85 or 95, depending on your state. Aside from that, however, it may be the perfect solution if you do not have any other form of life insurance but do have a spouse or family to worry about, should you pass away.
In many cases, just with almost any other insurance plan, you will need to undergo a basic physical exam in order to qualify for the term life insurance policy. Usually, this is conducted by a nurse employed by the insurance company and is done to make sure that you are insurable. However, the medical exam is not mandated by all companies, as some will accept new policyholders without any type of medical screening other than a simple questionnaire.
Sunday, January 18, 2009
LIfe Insurance : The Benefits of Whole Life Insurance for the Younger Set
There are many misconceptions about the various types of life insurance that exist. The complex language that is often used in describing life insurance has a lot to do with the confusion that many people have about life insurance.
Take whole life insurance for example. Many younger people don’t realize how beneficial whole life insurance can be to them simply because of their age. Many of them are equally unaware of the other benefits of whole life insurance.
How can you benefit from buying whole life insurance at a younger age? First you need to know that “whole life” means that the coverage provided by your plan continues even as you reach retirement age and beyond, as long as you always pay your plan premiums on time. But because you are younger, the costs of your life insurance will be stretched out over more years, reducing the annual costs of your premiums. Your whole life insurance accrues interest yearly, adding to its value. It is easy to surmise then that having the added years of youth on your side-will permit the value of your insurance policy to grow more than it would if you bought it at age 60 or later.
Hopefully because you are younger you are still relatively healthy and won’t have to worry about possible health problems for many years yet. You may be aware of potential health risks you may face as you get older because of a family history with certain diseases and health issues. But it is impossible to predict exactly what our health will be like 10, 15, or 20 years on down the road from now. What you don’t want is to find yourself older, less-insurable, and faced with paying for medical expenses with your retirement nest egg.
Whole life insurance protects you from the expenses of unforeseen future health problems that could otherwise consume your retirement money at a time when you should be free to enjoy the fruits of your many years of labor. Whole life insurance also has the protection of a guaranteed benefit to be paid upon your death. When we are young, we often don’t like to think about our own mortality. But none of us knows for sure how long we will be on this earth. Being financially prepared for when our time here comes to an end: liberates us to freely enjoy life ahead, without the worries about rising funeral and burial costs, and our desires to leave behind a financial gift for our loved ones. .
You may have been led to believe that because whole life insurance offers comprehensive coverage and lifetime benefits, that it isn’t an affordable option for the younger set, and especially for those raising families. This is not true however. With our present economy as it is, many people are struggling just to stay afloat. So you may be asking yourself if it makes any sense to go the expense of buying whole life insurance during these tough economic times. This is a valid concern. But consider the greater financial hardships your family could be faced with if something were to happen to you. How would they be taken care of in your absence? Protect them and give yourself the reassurance of that protection for your loved ones with whole life insurance.
Take whole life insurance for example. Many younger people don’t realize how beneficial whole life insurance can be to them simply because of their age. Many of them are equally unaware of the other benefits of whole life insurance.
How can you benefit from buying whole life insurance at a younger age? First you need to know that “whole life” means that the coverage provided by your plan continues even as you reach retirement age and beyond, as long as you always pay your plan premiums on time. But because you are younger, the costs of your life insurance will be stretched out over more years, reducing the annual costs of your premiums. Your whole life insurance accrues interest yearly, adding to its value. It is easy to surmise then that having the added years of youth on your side-will permit the value of your insurance policy to grow more than it would if you bought it at age 60 or later.
Hopefully because you are younger you are still relatively healthy and won’t have to worry about possible health problems for many years yet. You may be aware of potential health risks you may face as you get older because of a family history with certain diseases and health issues. But it is impossible to predict exactly what our health will be like 10, 15, or 20 years on down the road from now. What you don’t want is to find yourself older, less-insurable, and faced with paying for medical expenses with your retirement nest egg.
Whole life insurance protects you from the expenses of unforeseen future health problems that could otherwise consume your retirement money at a time when you should be free to enjoy the fruits of your many years of labor. Whole life insurance also has the protection of a guaranteed benefit to be paid upon your death. When we are young, we often don’t like to think about our own mortality. But none of us knows for sure how long we will be on this earth. Being financially prepared for when our time here comes to an end: liberates us to freely enjoy life ahead, without the worries about rising funeral and burial costs, and our desires to leave behind a financial gift for our loved ones. .
You may have been led to believe that because whole life insurance offers comprehensive coverage and lifetime benefits, that it isn’t an affordable option for the younger set, and especially for those raising families. This is not true however. With our present economy as it is, many people are struggling just to stay afloat. So you may be asking yourself if it makes any sense to go the expense of buying whole life insurance during these tough economic times. This is a valid concern. But consider the greater financial hardships your family could be faced with if something were to happen to you. How would they be taken care of in your absence? Protect them and give yourself the reassurance of that protection for your loved ones with whole life insurance.
Friday, January 16, 2009
LIfe Insurance : Protect Your Children With Life Insurance
The basic purpose of life insurance is mainly to protect dependents and loved ones with financial support in case some mishap befalls you. There's nobody who needs this support more than your children.
It is of dire importance that parents make sure of adequate life insurance coverage for their children in the event of the death of one or both parents. Irrespective of whether it is a dual income household, one-income household or single parent, every parent needs life insurance for their children. Only adequate life insurance coverage can ensure peace of mind where concerns over children are concerned.
Dual Income Households
If both spouses work to support themselves and their children, one salary would probably not be enough to cover all expenses. Factors that need consideration when deciding on life insurance needs include college education for children and children's health costs both now and for the future.
It becomes even more relevant for cases where only one parent's employee provides health insurance for the family. The newly single parent may not be able to cover all the costs. Lifestyle of the family is another consideration if quality of living will change drastically with the exit of one parent. Mortgages, rental payments every month, taxes, homeowner's insurance, etc are all necessary to consider. Also relevant are debts including credit card, and car payments and the parents of the parents who may eventually become financially dependent.
Single-Income Households, Two Parents or One Parent
In case of a sole breadwinner in the family, things would change dramatically overnight if that person were to pass away. The non-working spouse may be compelled to find a job quickly enough to support the household and children's expenses, which can take time. The salary may be lower than what the previous breadwinner was earning, at least initially. For those owning a home, the surviving parent is also faced with mortgage payments on their own. The house may even have to be sold and at the same time an alternative place has to be found for the family to live in. Therefore for a sole breadwinner in the family, sufficient life insurance coverage is essential.
For single-income households, if something were to befall the earning parent, the children should have some place to go where they will be adequately provided for. The person, whether or not an ex-spouse, should be able to support the children in addition to themselves. So it is important for a single parent to get coverage of a good life insurance policy. If anything were to happen to the single parent, the children's lives would change overnight and only the knowledge that they will be taken care of will bring peace of mind.
Even for households with no children for those married but yet to have children, it is still important to think about whether the spouse would be able to cover all the costs if the other were to pass away. This is even more relevant in case of owning property or large debts to pay off. If one eventually decides to have children, they should reevaluate their life insurance needs before the children are even born, to ensure that the father is insured if childbirth complications were to affect the mother, so that both parents are covered if anything were to happen to either spouse while the children grow up.
Conclusion
Therefore it is of utmost importance to ensure that children will be taken care of if mishap were to befall either parent. Dependents count on parents for financial support and this should be taken care of in the eventuality of something happening to a parent. Get peace of mind for yourself by ensuring that your life insurance coverage will be sufficient for your family's unique life insurance needs.
It is of dire importance that parents make sure of adequate life insurance coverage for their children in the event of the death of one or both parents. Irrespective of whether it is a dual income household, one-income household or single parent, every parent needs life insurance for their children. Only adequate life insurance coverage can ensure peace of mind where concerns over children are concerned.
Dual Income Households
If both spouses work to support themselves and their children, one salary would probably not be enough to cover all expenses. Factors that need consideration when deciding on life insurance needs include college education for children and children's health costs both now and for the future.
It becomes even more relevant for cases where only one parent's employee provides health insurance for the family. The newly single parent may not be able to cover all the costs. Lifestyle of the family is another consideration if quality of living will change drastically with the exit of one parent. Mortgages, rental payments every month, taxes, homeowner's insurance, etc are all necessary to consider. Also relevant are debts including credit card, and car payments and the parents of the parents who may eventually become financially dependent.
Single-Income Households, Two Parents or One Parent
In case of a sole breadwinner in the family, things would change dramatically overnight if that person were to pass away. The non-working spouse may be compelled to find a job quickly enough to support the household and children's expenses, which can take time. The salary may be lower than what the previous breadwinner was earning, at least initially. For those owning a home, the surviving parent is also faced with mortgage payments on their own. The house may even have to be sold and at the same time an alternative place has to be found for the family to live in. Therefore for a sole breadwinner in the family, sufficient life insurance coverage is essential.
For single-income households, if something were to befall the earning parent, the children should have some place to go where they will be adequately provided for. The person, whether or not an ex-spouse, should be able to support the children in addition to themselves. So it is important for a single parent to get coverage of a good life insurance policy. If anything were to happen to the single parent, the children's lives would change overnight and only the knowledge that they will be taken care of will bring peace of mind.
Even for households with no children for those married but yet to have children, it is still important to think about whether the spouse would be able to cover all the costs if the other were to pass away. This is even more relevant in case of owning property or large debts to pay off. If one eventually decides to have children, they should reevaluate their life insurance needs before the children are even born, to ensure that the father is insured if childbirth complications were to affect the mother, so that both parents are covered if anything were to happen to either spouse while the children grow up.
Conclusion
Therefore it is of utmost importance to ensure that children will be taken care of if mishap were to befall either parent. Dependents count on parents for financial support and this should be taken care of in the eventuality of something happening to a parent. Get peace of mind for yourself by ensuring that your life insurance coverage will be sufficient for your family's unique life insurance needs.
Life Insurance: Make Your Life Simple And Easy
You may be healthy enough to work for the next three decades and support your growing family. But who knows what tomorrow brings? If people buy insurance for their cars in case of an accident, why not insurance for themselves? Unfortunately a lot of people fail to realize that there are as much reasons to buy insurance, as there are people.
A Life Insurance Gift: The Benefits to You
Everybody has responsibilities and most of them usually require money. But since responsibilities vary from person to person with different needs, now there are different life insurance packages with different benefits. For instance, a husband may buy an insurance policy to have his wife and children taken care of in case something should happen to him.
In instances like this, life insurance package can give the assurance that the money will be provided when required. Life insurance was started primarily to cover expenses at death for costs like final expenses and debts and providing income for dependents.
The inconvenience of buying the insurance policy that suits you perfectly, is easily outweighed by the benefits offered. It's a good idea to find a good insurance advisor well in advance to advise you on your options for insurance policies. An insurance advisor can make the benefits of insurance much clearer. It's not just about helping you sort out the complexities of life insurance. First of all, you'll get help to determine what exactly you want out of an insurance package.
Nowadays insurance benefits vary from the most basic, like providing a lump sum to your family in case you should meet a fatal accident, to the very intricate like covering long term illnesses, financing a new home, planning children's education to ensuring a suitable investment portfolio to prepare for early retirement. Another advantage is that life insurance is usually tax deductible eliminating the possibility of your disposable or retirement savings being trimmed by ever escalating costs of living.
How To Make A Life Insurance Gift?
An existing insurance policy that has completed serving its original purpose can be taken for simply the ownership and beneficiary designation, which cannot be changed. But the basic insurance benefits remain the same. It acts as a safety net for your dependents should some mishap befalls you.
Many feel that life insurance is the foundation of a sound financial plan with financial security for the family by protecting your financial resources including your present and future income against life's uncertainties. More precisely, life insurance provides your family with cash after your death. The death benefit takes the place of your income and is capable of covering many major financial needs like the mortgage, household expenses and preventing your dependents from being burdened with debt. With the proceeds from a life insurance policy, your family won't be compelled to sell assets for outstanding bills or taxes.
Insurance is increasingly becoming more sophisticated with life insurance evolving into health insurance to benefit not only dependents but individuals as well.
Finally…
Life insurance for your family means financial security which makes it all the more important for you to ensure the right amount of life insurance coverage. Life insurance is necessary when you have dependent children, aging parent to support, married to an unemployed spouse, own substantial assets, own a business or want supplementation of retirement savings. Life insurance will provide your family with cash after your death for the mortgage and other ongoing household expenses.
A Life Insurance Gift: The Benefits to You
Everybody has responsibilities and most of them usually require money. But since responsibilities vary from person to person with different needs, now there are different life insurance packages with different benefits. For instance, a husband may buy an insurance policy to have his wife and children taken care of in case something should happen to him.
In instances like this, life insurance package can give the assurance that the money will be provided when required. Life insurance was started primarily to cover expenses at death for costs like final expenses and debts and providing income for dependents.
The inconvenience of buying the insurance policy that suits you perfectly, is easily outweighed by the benefits offered. It's a good idea to find a good insurance advisor well in advance to advise you on your options for insurance policies. An insurance advisor can make the benefits of insurance much clearer. It's not just about helping you sort out the complexities of life insurance. First of all, you'll get help to determine what exactly you want out of an insurance package.
Nowadays insurance benefits vary from the most basic, like providing a lump sum to your family in case you should meet a fatal accident, to the very intricate like covering long term illnesses, financing a new home, planning children's education to ensuring a suitable investment portfolio to prepare for early retirement. Another advantage is that life insurance is usually tax deductible eliminating the possibility of your disposable or retirement savings being trimmed by ever escalating costs of living.
How To Make A Life Insurance Gift?
An existing insurance policy that has completed serving its original purpose can be taken for simply the ownership and beneficiary designation, which cannot be changed. But the basic insurance benefits remain the same. It acts as a safety net for your dependents should some mishap befalls you.
Many feel that life insurance is the foundation of a sound financial plan with financial security for the family by protecting your financial resources including your present and future income against life's uncertainties. More precisely, life insurance provides your family with cash after your death. The death benefit takes the place of your income and is capable of covering many major financial needs like the mortgage, household expenses and preventing your dependents from being burdened with debt. With the proceeds from a life insurance policy, your family won't be compelled to sell assets for outstanding bills or taxes.
Insurance is increasingly becoming more sophisticated with life insurance evolving into health insurance to benefit not only dependents but individuals as well.
Finally…
Life insurance for your family means financial security which makes it all the more important for you to ensure the right amount of life insurance coverage. Life insurance is necessary when you have dependent children, aging parent to support, married to an unemployed spouse, own substantial assets, own a business or want supplementation of retirement savings. Life insurance will provide your family with cash after your death for the mortgage and other ongoing household expenses.
LIfe insurance : Five Life Insurance Myths
People who choose life insurance policies based on myths about insurance could end up making a costly decision. It is important to understand which kind of life insurance is right for you or whether you need insurance at all. Life insurance policies use legal language and have different names in different companies, which can scare you from learning about them. So, here are five common life insurance myths to help you from making the wrong choice.
Myth: I Am Alive, Therefore I Need Life Insurance
Life insurance protects dependents and guarantees a steady source of income after their breadwinner's death. Single people without dependents or childless couples who earn enough to lead a good life need not consider buying insurance. Purchase life insurance for a child only if you depend on her income. As for retired people, unless you are insecure that your partner would desert you or if you depend on a pension that would disappear upon your partner's death then you should get life insurance
Myth: I Don't Work So I Don't Need Insurance
Even those without jobs need life insurance. A jobless parent with dependent children need not buy life insurance, as there's no paycheck to replace. However childcare could cost $10,000 to $30,000 annually. So estimate the amount it would cost for your family and use that number for your "salary" when calculating life insurance needs.
Myth: Odds Are I Won't Need It, So Why Spend The Money?
Why skip life insurance to save money? The reason why life insurance is cheaper for younger people to buy is because chances of death low for youths. But life is unsure and the time of our death is not predetermined therefore do buy life insurance to provide for your family incase the worst does happen. If right kind of insurance is bought you could provide enough financial security to your dependents.
Myth: If It's More Expensive, It Must Be Worth It
Term insurance, is cheaper, better choice for most of us since term life insurance is "pure" insurance with no investment add-on and guarantees your coverage till the time you pay your premium. Term insurance is specifically for those who want life insurance for a stipulated duration of time. Level term insurance is probably the best option since premiums don't increase while you have it. There are various types of Permanent insurance such as whole life, universal and variable, and more but is seven to eight times more expensive than term. A permanent insurance policy combines life insurance with an investment that builds up cash value which you can exploit by borrowing or surrendering (cashing in) the policy.
Myth: It's Such A Hassle To Get Insurance
If you need to change your life insurance, never cancel existing policies until your new insurance is in place. You should not keep any gaps in your insurance coverage.
Most reputed companies provide online facility to download quotes and application forms on the Internet. You can easily shop for the best possible rates online and then consult a trusted agent to purchase the insurance. After contacting an agent or company they themselves will arrange to collect the medical information they require.
Myth: I Am Alive, Therefore I Need Life Insurance
Life insurance protects dependents and guarantees a steady source of income after their breadwinner's death. Single people without dependents or childless couples who earn enough to lead a good life need not consider buying insurance. Purchase life insurance for a child only if you depend on her income. As for retired people, unless you are insecure that your partner would desert you or if you depend on a pension that would disappear upon your partner's death then you should get life insurance
Myth: I Don't Work So I Don't Need Insurance
Even those without jobs need life insurance. A jobless parent with dependent children need not buy life insurance, as there's no paycheck to replace. However childcare could cost $10,000 to $30,000 annually. So estimate the amount it would cost for your family and use that number for your "salary" when calculating life insurance needs.
Myth: Odds Are I Won't Need It, So Why Spend The Money?
Why skip life insurance to save money? The reason why life insurance is cheaper for younger people to buy is because chances of death low for youths. But life is unsure and the time of our death is not predetermined therefore do buy life insurance to provide for your family incase the worst does happen. If right kind of insurance is bought you could provide enough financial security to your dependents.
Myth: If It's More Expensive, It Must Be Worth It
Term insurance, is cheaper, better choice for most of us since term life insurance is "pure" insurance with no investment add-on and guarantees your coverage till the time you pay your premium. Term insurance is specifically for those who want life insurance for a stipulated duration of time. Level term insurance is probably the best option since premiums don't increase while you have it. There are various types of Permanent insurance such as whole life, universal and variable, and more but is seven to eight times more expensive than term. A permanent insurance policy combines life insurance with an investment that builds up cash value which you can exploit by borrowing or surrendering (cashing in) the policy.
Myth: It's Such A Hassle To Get Insurance
If you need to change your life insurance, never cancel existing policies until your new insurance is in place. You should not keep any gaps in your insurance coverage.
Most reputed companies provide online facility to download quotes and application forms on the Internet. You can easily shop for the best possible rates online and then consult a trusted agent to purchase the insurance. After contacting an agent or company they themselves will arrange to collect the medical information they require.
Life Insurance: Money Saving Tips
With any purchase, knowing what you want before you start shopping can save time and money. Similarly life insurance, particularly term life is arguably among the best values in the entire financial services scenario. It's about the only assurance you can get for getting thousands of dollars in protection for practically pennies per day.
Term life insurance rates being at all-time lows, now is the right time to avail of the best prices. Calculate your total needs before going shopping for life insurance. Consider some tactics that can save you some money when purchasing life insurance.
Money Saving Tips For life insurance At Various Stages
As financial needs tend to be lower at a younger age, life insurance rates too are substantially cheaper at a younger age. Aim to cover your primary assets to ensure that if something were to happen to you, your beneficiaries will be able to cope financially. If permanent life insurance is what you're considering, compare costs and benefits of whole, universal and variable policies to your own term plan. Some insurance companies may raise prices on the basis of your actual age, but insurance companies generally increase the price of their policies six months before your birthday.
Termed Age Nearest in the industry, the half-year price increase can add up significantly over a 20-year term policy. Here too, the quicker you are in buying the policy, the better. Healthy people carry the least mortality risks proving much cheaper for insurance companies to insure. This results in lower rates for the Super Preferred customer instead of those with higher risk factors like a heart condition, cancer or diabetes. Each one has different needs with no scope for one size fits all possibility, when it comes to term life insurance.
For those in 30s and 40s, it makes sense to go for a 20-year term length, but for somebody approaching retirement a 10-year term may be more suitable. In an example of people trying to quit smoking, purchasing a shorter term may be best for them. Finally, those with 30-year mortgages may find a 30-year term more suitable in ensuring that the house is protected throughout the loan period.
Buy The Right Amount Of Coverage
Insurance companies occasionally offer price breaks for certain coverage amounts. The fact is that many can pay less money for more coverage. Increasing coverage to $250,000, $500,000 or $1,000,000, your prices increase very little. With an agent your time and money can be saved in shopping for life insurance. The recommendation from independent financial planners is for purchases of coverage amounts equivalent to 6-10 times your annual gross income.
Skydiving, deep-sea diving and other high-risk activities can make your premiums more expensive. Insurance companies have their own perceptions of risk factors with some being more liberal than others in certain aspects.
Work policies don't always make the best deal as the policies are usually based on composite profile of the employees you work with, many of whom could be less healthy than you or subject to other underwriting factors driving rates up. Policies of this type expire if and when you leave the company. Life insurance companies often offer discounts to customers paying premiums annually or monthly by electronic funds transfer.
Reviewed Your Insurance Policy…
A review of your life insurance policy should be done at least every three years, if not more often. Rates may lower and your circumstances change, requiring more or less protection. If replacing a policy, give enough time for your new policy to be in place to prevent overlap or lapse of coverage. Term life insurance is the most affordable and cost-effective pure protection available and typically a lot less expensive than a comparable whole life policy. Term can be converted to permanent but not permanent to term.
Term life insurance rates being at all-time lows, now is the right time to avail of the best prices. Calculate your total needs before going shopping for life insurance. Consider some tactics that can save you some money when purchasing life insurance.
Money Saving Tips For life insurance At Various Stages
As financial needs tend to be lower at a younger age, life insurance rates too are substantially cheaper at a younger age. Aim to cover your primary assets to ensure that if something were to happen to you, your beneficiaries will be able to cope financially. If permanent life insurance is what you're considering, compare costs and benefits of whole, universal and variable policies to your own term plan. Some insurance companies may raise prices on the basis of your actual age, but insurance companies generally increase the price of their policies six months before your birthday.
Termed Age Nearest in the industry, the half-year price increase can add up significantly over a 20-year term policy. Here too, the quicker you are in buying the policy, the better. Healthy people carry the least mortality risks proving much cheaper for insurance companies to insure. This results in lower rates for the Super Preferred customer instead of those with higher risk factors like a heart condition, cancer or diabetes. Each one has different needs with no scope for one size fits all possibility, when it comes to term life insurance.
For those in 30s and 40s, it makes sense to go for a 20-year term length, but for somebody approaching retirement a 10-year term may be more suitable. In an example of people trying to quit smoking, purchasing a shorter term may be best for them. Finally, those with 30-year mortgages may find a 30-year term more suitable in ensuring that the house is protected throughout the loan period.
Buy The Right Amount Of Coverage
Insurance companies occasionally offer price breaks for certain coverage amounts. The fact is that many can pay less money for more coverage. Increasing coverage to $250,000, $500,000 or $1,000,000, your prices increase very little. With an agent your time and money can be saved in shopping for life insurance. The recommendation from independent financial planners is for purchases of coverage amounts equivalent to 6-10 times your annual gross income.
Skydiving, deep-sea diving and other high-risk activities can make your premiums more expensive. Insurance companies have their own perceptions of risk factors with some being more liberal than others in certain aspects.
Work policies don't always make the best deal as the policies are usually based on composite profile of the employees you work with, many of whom could be less healthy than you or subject to other underwriting factors driving rates up. Policies of this type expire if and when you leave the company. Life insurance companies often offer discounts to customers paying premiums annually or monthly by electronic funds transfer.
Reviewed Your Insurance Policy…
A review of your life insurance policy should be done at least every three years, if not more often. Rates may lower and your circumstances change, requiring more or less protection. If replacing a policy, give enough time for your new policy to be in place to prevent overlap or lapse of coverage. Term life insurance is the most affordable and cost-effective pure protection available and typically a lot less expensive than a comparable whole life policy. Term can be converted to permanent but not permanent to term.
Life Insurance : Does your Employer want you dead?
Did you know that your company could get a life insurance policy on you without your knowledge and gain tax-free proceeds from this policy even years after you've left the organization? So your family could be left with a paltry sum or nothing after your demise. The money in turn would go to the insurance company. What's worse is that your policy will pay for retirement benefits and perks of senior executives of your ex-firm.
Corporate-owned life insurance is indeed a thriving business and according to the American Council of Life Insurers, Companies spend up to $8 billion in insurance premiums annually, for such coverage. The policies add up to more than 20% of the total life insurances sold each year.
Corporate-Owned Life Insurance Actually Comes in Two Flavors
Life insurance coverage such as Executive or "key person" insurance policies and Broad-based or "janitors" policies have been in implementation for decades. The sole objective of first policy which insure the lives of top executives, is to protect corporates from any financial impact resulting from loss of expertise and knowledge of senior managers.
On the other hand "janitors" policies that insure rank-and-file workers are aimed at earning profit. Here life insurance proceeds are tax-free, allowing companies to take tax-free loans and earn tax-deferred returns even while the employee is alive. The resulting income pays for executive compensation or other benefits.
An Astonishing Example
Frustrated survivors of dead insured workers who got little or nothing from these policies are now fighting for their rights in court. One such incident occurred when Jane St. John's husband, a butcher at a Winn-Dixie store, was killed in an auto accident. On inquiring the company about life insurance, she found that her children and she was entitled to a $17,500 insurance policy. Eight years later she discovered from a lawyer who researched court records, that Winn-Dixie collected about $102,000 from a corporate-owned life insurance policy on her husband's life.
Unlike Jane, many families don't get anything. Some labor leaders and lawmakers have denounced these insurance policies as "unjust" and "repulsive" but companies justify that profits from such policies payoff increased cost of employee benefits and enhance the businesses' bottom lines.
Survivors' Lawsuits…
Survivors continue battling with the law as to whether companies should have "insurable interest" in their employees' lives and that they should be required to seek employees' permission for the insurance policies?
Insurers consider "Insurable interest" important, so they try to ensure purchasers of life insurance have no incentive for bumping off the insured and should be a biologically related to people being insured, or bear financial losses if the insured died.
Soon, the increasing number of lawsuits will pressurize the Congress to make reforms giving lawmakers no option but to restrict companies from writing insurance policies on rank-and-file workers. Or companies will be compelled to get workers' consent before buying any insurance policy and make clear whether the life insurance coverage will extend even after they resign.
Although companies feel that this is an important business planning tool and used for completely valid reasons, the fact is, employees are being cheated in the process.
Corporate-owned life insurance is indeed a thriving business and according to the American Council of Life Insurers, Companies spend up to $8 billion in insurance premiums annually, for such coverage. The policies add up to more than 20% of the total life insurances sold each year.
Corporate-Owned Life Insurance Actually Comes in Two Flavors
Life insurance coverage such as Executive or "key person" insurance policies and Broad-based or "janitors" policies have been in implementation for decades. The sole objective of first policy which insure the lives of top executives, is to protect corporates from any financial impact resulting from loss of expertise and knowledge of senior managers.
On the other hand "janitors" policies that insure rank-and-file workers are aimed at earning profit. Here life insurance proceeds are tax-free, allowing companies to take tax-free loans and earn tax-deferred returns even while the employee is alive. The resulting income pays for executive compensation or other benefits.
An Astonishing Example
Frustrated survivors of dead insured workers who got little or nothing from these policies are now fighting for their rights in court. One such incident occurred when Jane St. John's husband, a butcher at a Winn-Dixie store, was killed in an auto accident. On inquiring the company about life insurance, she found that her children and she was entitled to a $17,500 insurance policy. Eight years later she discovered from a lawyer who researched court records, that Winn-Dixie collected about $102,000 from a corporate-owned life insurance policy on her husband's life.
Unlike Jane, many families don't get anything. Some labor leaders and lawmakers have denounced these insurance policies as "unjust" and "repulsive" but companies justify that profits from such policies payoff increased cost of employee benefits and enhance the businesses' bottom lines.
Survivors' Lawsuits…
Survivors continue battling with the law as to whether companies should have "insurable interest" in their employees' lives and that they should be required to seek employees' permission for the insurance policies?
Insurers consider "Insurable interest" important, so they try to ensure purchasers of life insurance have no incentive for bumping off the insured and should be a biologically related to people being insured, or bear financial losses if the insured died.
Soon, the increasing number of lawsuits will pressurize the Congress to make reforms giving lawmakers no option but to restrict companies from writing insurance policies on rank-and-file workers. Or companies will be compelled to get workers' consent before buying any insurance policy and make clear whether the life insurance coverage will extend even after they resign.
Although companies feel that this is an important business planning tool and used for completely valid reasons, the fact is, employees are being cheated in the process.
Thursday, January 15, 2009
Life Insurance : The best type of Life Insurance for You and Your Family
The type of life insurance that is best suited to you and your family can be one of the major decisions of life. You have to make sure your family will be well taken care of in case something happens to you but it is also important to be economical as you are also making sure of taking good care of your family at the current moment. This is the reason why an online life insurance agent capable of helping you locate the right insurance carrier and insurance policy cae be of great significance. You can tell when an insurance company is giving you a valuable service when it can quickly and easily calculate your insurance needs, give you a quote dan help determine your health class.
Learning the Pros and Cons of Life Insurance Policies
Among the advantages of term life insurance is its offer of an effective means of getting the most out of your insurance coverage for the lowest costs for up to thirty years. The need for insurance coverage is normally themost around the time children are growing up and heading to college, when purchasing an insurance policy that covers that duration can be a big relief. Additionally the insurance policy also covers financial needs like mortgages and family income needs for children which are not permanent.
Term life insurance has its share of disadvantages too. Term life insurance lacks the whole life insurance offer of cash value if you were to surrender the insurance policy prior its maturity or your death. Therefore, while whole life insurance policies increase in value over time with cash value or annuity offer, term life insurance policies do not. But remember that due to their value over time, whole life policies have higher insurance premiums.
Determine Your Life Insurance Needs.
Purchasing a life insurance policy is a major decision that needs you to make sure that you choose the insurance policy that is most suitable for you and your family's needs. This is the reason at life insurance have made it goal to help you get a clear idea of what your insurance coverage needs would be and which is the insurance carrier that offers the best quote when you can get all of it done through an online insurance agent.
Among the key factors influencing your insurance premium rate your health class. Strange as it may seem health class is rated differently at different insurance companies with one rating you standard while another with the same inforamtion might rate you preferred. With a good online insurance agent you get help in identifying the insurance carrier with the highest health class rating for you in order to get the lowest insurance premiums possible.
The leading life insurance agentages can make the application process vey simple and convenient for you. Simply fill out basic information online, get your quote and fill out the application. The application can even be completed over the phone or in the convenience of your home or office. Your insurance agent should be made to only consider the top rated insurance carriers. The best insurance companies prefer insurance carriers with an A rating or higher from AM Best, the top independent evaluator of insurance companies in the country.
The knowledge of your family being taken care of case of any mishap befalling you, can give great pace of mind. It is you alone who can best life insurance coverage for you and your family. But it is comforting to know that there are people who can simplify the decision process for your convenience.
Learning the Pros and Cons of Life Insurance Policies
Among the advantages of term life insurance is its offer of an effective means of getting the most out of your insurance coverage for the lowest costs for up to thirty years. The need for insurance coverage is normally themost around the time children are growing up and heading to college, when purchasing an insurance policy that covers that duration can be a big relief. Additionally the insurance policy also covers financial needs like mortgages and family income needs for children which are not permanent.
Term life insurance has its share of disadvantages too. Term life insurance lacks the whole life insurance offer of cash value if you were to surrender the insurance policy prior its maturity or your death. Therefore, while whole life insurance policies increase in value over time with cash value or annuity offer, term life insurance policies do not. But remember that due to their value over time, whole life policies have higher insurance premiums.
Determine Your Life Insurance Needs.
Purchasing a life insurance policy is a major decision that needs you to make sure that you choose the insurance policy that is most suitable for you and your family's needs. This is the reason at life insurance have made it goal to help you get a clear idea of what your insurance coverage needs would be and which is the insurance carrier that offers the best quote when you can get all of it done through an online insurance agent.
Among the key factors influencing your insurance premium rate your health class. Strange as it may seem health class is rated differently at different insurance companies with one rating you standard while another with the same inforamtion might rate you preferred. With a good online insurance agent you get help in identifying the insurance carrier with the highest health class rating for you in order to get the lowest insurance premiums possible.
The leading life insurance agentages can make the application process vey simple and convenient for you. Simply fill out basic information online, get your quote and fill out the application. The application can even be completed over the phone or in the convenience of your home or office. Your insurance agent should be made to only consider the top rated insurance carriers. The best insurance companies prefer insurance carriers with an A rating or higher from AM Best, the top independent evaluator of insurance companies in the country.
The knowledge of your family being taken care of case of any mishap befalling you, can give great pace of mind. It is you alone who can best life insurance coverage for you and your family. But it is comforting to know that there are people who can simplify the decision process for your convenience.
Wednesday, January 14, 2009
LIfe Insurance Options : Make Yourself The Best Choise
For long, life insurance has been as a key building block of financial security due to the protection for those closest to you in case of a death. In various forms, the one core benefit it offers is to pay an income-taxfree death benef it deirectly to your beneficiary on your death.
There more today's life insurance policies . You can use life insurance to lower taxes today, create tax-advantages income for retirement and provide assets to offset estate taxes.
Not As Complex As it Seems !
Taking a d ecision on the type of life insurance that suits you best is easier than it seems. Factors to be considered in making the decision include age, number of dependents and overall financial goals. A basic understanding of your life insurance options can help you narrow down choices. The two categories of life insurance you need to know about at the start on your research are term insurance and cash value insurance.
With term life insurance comes protection for a certain time duration. If your death occurs during the period, a death benefit is paid to the policy beneficiary. Term life insurance is usually more affordable than cash value insurance and similar to renting property. You pay during the policy term ranging from one to 15 years and after the term expiry, your coverage also expi res without building equity or cash value insurance.
Variable universal life insurance :
mainly meant for those with longer investment time horizons, variable universal life insurance enable flexibility and control. When building cash value, you can choose the variable investment option to invest in. Being similar in nature to mutual funds with fluctuating market value, variable investment option as a life insurance type, is best suited for couples with higher risk tolerance.
Variable second-to-die insurance :
Typically meant for estate planning progress like passing a family business or other significant assets from one generation to the next, variable second- to-die insurance is a type of life insurance that insures two lives, with death benefit paid at the death of the second insured. With one policy covering two lives, some insurance premium savings over two separate insurance policies can be made.
There more today's life insurance policies . You can use life insurance to lower taxes today, create tax-advantages income for retirement and provide assets to offset estate taxes.
Not As Complex As it Seems !
Taking a d ecision on the type of life insurance that suits you best is easier than it seems. Factors to be considered in making the decision include age, number of dependents and overall financial goals. A basic understanding of your life insurance options can help you narrow down choices. The two categories of life insurance you need to know about at the start on your research are term insurance and cash value insurance.
With term life insurance comes protection for a certain time duration. If your death occurs during the period, a death benefit is paid to the policy beneficiary. Term life insurance is usually more affordable than cash value insurance and similar to renting property. You pay during the policy term ranging from one to 15 years and after the term expiry, your coverage also expi res without building equity or cash value insurance.
Variable universal life insurance :
mainly meant for those with longer investment time horizons, variable universal life insurance enable flexibility and control. When building cash value, you can choose the variable investment option to invest in. Being similar in nature to mutual funds with fluctuating market value, variable investment option as a life insurance type, is best suited for couples with higher risk tolerance.
Variable second-to-die insurance :
Typically meant for estate planning progress like passing a family business or other significant assets from one generation to the next, variable second- to-die insurance is a type of life insurance that insures two lives, with death benefit paid at the death of the second insured. With one policy covering two lives, some insurance premium savings over two separate insurance policies can be made.
Tuesday, January 13, 2009
Life Insurance : Life Insurance benefits for Retired Workers as you !
Employees reaching retirment often worry about continuation of life insurance protection beyond active employment. The fact is life insurance for retired employees is scarcely available.
Life Insurance Protection for Retired Workers
On reaching retirement employees in most private firms generally tend to lose life insurance protection that they had from their employers while on the job. Thankfully some employers do continue a minor portion of life insurance for retirees, with some income protection for dependents. Moreover life insurance benefits and coverage provided to retired workers, is far less compared to what is provided for active workers.
But the few benefits of life insurance policy for retired workers are :
At least there are funds to pay for the funeral and other costs associated with death. some could even cover estate, can provide the funds to pay for any estate-tax liability.
How can People Get The benefits from Life Insurance ?
Although many survivors tend to misuse the benefits when someone dies, there are survivors who are professionals who lose time at work threfore lose some income while recuperating from the shock. Typically, adjustment costs are not very high some are lucky to get an extra $10,000. But an additional $10,000 of insurance can be obtained at a very small cost.
Most workers eligible for pension benefits choose a joint and survivor option. This guarantees benefits through the life of the surviving spouse, but it pays the coupe 20 % to 25 % less than maximum pension benefits. Under the pension maximization approach, the retiring worker choose the single-life option with the spouse's written consent, which pays out the maximum benefits for the life of the pensioner. The difference between this amount and the samller amount the pensioner would have received under the joint-and-survivor option is used to buy life insurance.
If the pensioners dies first the surviving spouse uses the death proceeds to continue to pay for retirement but if the spouse dies before the pensioner, maximum benefits continue to be paid out. The good newas is that insurance purchased for other purpose while you are younger is likely to pay for itself and fund the desired benefits with no additional cost after retirement.
Employees reaching retirement often worry about continuation of life insurance protection beyond active employment. The fact is life insurance for retired employees is scarcely available.
Conclusion
Today it is essential for both spouse to work if they wish to maintain their lifestyle if one should be left behind. Generally permanent life insurance is probably a great option because it grows tax deferred. If you manage to bulith up a fairly significant cash value by retirement, this can be turned into an annuity or drawn on when you need it most, especially in the future when inflation could erode the buying power of your pension benefits.
Those employees who had retiree life insurance coverage can enjoy the benefits though life but the remaining fraction of workers who had life insurance coverage continued until attainment of a specified age or only for a given number of months post retirement.
Life Insurance Protection for Retired Workers
On reaching retirement employees in most private firms generally tend to lose life insurance protection that they had from their employers while on the job. Thankfully some employers do continue a minor portion of life insurance for retirees, with some income protection for dependents. Moreover life insurance benefits and coverage provided to retired workers, is far less compared to what is provided for active workers.
But the few benefits of life insurance policy for retired workers are :
At least there are funds to pay for the funeral and other costs associated with death. some could even cover estate, can provide the funds to pay for any estate-tax liability.
How can People Get The benefits from Life Insurance ?
Although many survivors tend to misuse the benefits when someone dies, there are survivors who are professionals who lose time at work threfore lose some income while recuperating from the shock. Typically, adjustment costs are not very high some are lucky to get an extra $10,000. But an additional $10,000 of insurance can be obtained at a very small cost.
Most workers eligible for pension benefits choose a joint and survivor option. This guarantees benefits through the life of the surviving spouse, but it pays the coupe 20 % to 25 % less than maximum pension benefits. Under the pension maximization approach, the retiring worker choose the single-life option with the spouse's written consent, which pays out the maximum benefits for the life of the pensioner. The difference between this amount and the samller amount the pensioner would have received under the joint-and-survivor option is used to buy life insurance.
If the pensioners dies first the surviving spouse uses the death proceeds to continue to pay for retirement but if the spouse dies before the pensioner, maximum benefits continue to be paid out. The good newas is that insurance purchased for other purpose while you are younger is likely to pay for itself and fund the desired benefits with no additional cost after retirement.
Employees reaching retirement often worry about continuation of life insurance protection beyond active employment. The fact is life insurance for retired employees is scarcely available.
Conclusion
Today it is essential for both spouse to work if they wish to maintain their lifestyle if one should be left behind. Generally permanent life insurance is probably a great option because it grows tax deferred. If you manage to bulith up a fairly significant cash value by retirement, this can be turned into an annuity or drawn on when you need it most, especially in the future when inflation could erode the buying power of your pension benefits.
Those employees who had retiree life insurance coverage can enjoy the benefits though life but the remaining fraction of workers who had life insurance coverage continued until attainment of a specified age or only for a given number of months post retirement.
Life Insurance : Becareful ! Your Lifestyle Affects Your Life insurance Premiums!
Your lifestyle plays a mayor role in your life insurance premiums. How ? Although you exercise regularly, eat right and never smoke you could still be in danger of being a high risk to insurers. You might not realize, but if you are a frequent flyer or avid adventure sports person who spends a lot of time sky diving, you are at the risk of paying a very high rate when you buy your life insurance. So your lifestyle could actually raise the expenditures of your life insurance policy. To understand why, you need to figure out how term-life policies are priced.
Life insurance companies study risks by dividing people into groups of smokers and nonsmokers. Some companies consider a person who uses any form of tobacco to be a smoker. These two groups are further broken down into one of three risk categories : Preferred Plus, Preferred or Standard. People who are considered with a greater risk of early death are under even lower classifications by life insurance companies.
Your Mental Health, Driving Record and Family History
You probably have never thought of it but insurance companies also consider mental health a big part of physical health. So all those consuming antidepressants and Prozac should worry about how much this would cost you. Depressed people are more likely to be suicidal and therefore a high risk ti life insurance companies. Most policies are required to make payment two years after someone commits suicide. Luckily, not all depression is viewed as a risk factor.
A person's driving record not only affect his/her auto-insurance rates but also affect life insurance rates. Most people are not aware that life insurance companies review your driving records too so if you have got even a speeding tickets or been caught speeding twice in five years, you will be considered a habitually risky driver.
Believe it or not but life insurance companies also inquire about your hobbies as many hobbies could pose a risk to your life. Be prepared for questions from life insurance agent on whether you are into bike racing or the like. Adventure orextreme sports such as mountain climbing, scuba diving, and helicopter skiing are likely to lead you to write a bigger checks to your insurer.
Be Careful
It might seem easy to get away with not disclosing your dangerous hobbies or family health history on your life insurance application but you only end up being the loser. For if happen to die in an accident related to the sports and the company discovers that you participated in this avocation before you signed the paper work. It won't pay your benefit. So make sure you don't give them a reason not to pay the insurance claim. But don't be discouraged as you can always apply for a new life insurance policy.
So make sure you clean up your driving record and be your health in good form to get a lower insurance premium from your insurance company.
Life insurance companies study risks by dividing people into groups of smokers and nonsmokers. Some companies consider a person who uses any form of tobacco to be a smoker. These two groups are further broken down into one of three risk categories : Preferred Plus, Preferred or Standard. People who are considered with a greater risk of early death are under even lower classifications by life insurance companies.
Your Mental Health, Driving Record and Family History
You probably have never thought of it but insurance companies also consider mental health a big part of physical health. So all those consuming antidepressants and Prozac should worry about how much this would cost you. Depressed people are more likely to be suicidal and therefore a high risk ti life insurance companies. Most policies are required to make payment two years after someone commits suicide. Luckily, not all depression is viewed as a risk factor.
A person's driving record not only affect his/her auto-insurance rates but also affect life insurance rates. Most people are not aware that life insurance companies review your driving records too so if you have got even a speeding tickets or been caught speeding twice in five years, you will be considered a habitually risky driver.
Believe it or not but life insurance companies also inquire about your hobbies as many hobbies could pose a risk to your life. Be prepared for questions from life insurance agent on whether you are into bike racing or the like. Adventure orextreme sports such as mountain climbing, scuba diving, and helicopter skiing are likely to lead you to write a bigger checks to your insurer.
Be Careful
It might seem easy to get away with not disclosing your dangerous hobbies or family health history on your life insurance application but you only end up being the loser. For if happen to die in an accident related to the sports and the company discovers that you participated in this avocation before you signed the paper work. It won't pay your benefit. So make sure you don't give them a reason not to pay the insurance claim. But don't be discouraged as you can always apply for a new life insurance policy.
So make sure you clean up your driving record and be your health in good form to get a lower insurance premium from your insurance company.
Life Insurance : Advice you to Pay Estate Taxes by Life Insurance !
Ever wonder whether life insurance pays for your estate taxes and if so the how ? Say, if you own a large estate, and need to protect the estate from paying 55 % federal estate taxes (after you die) make sure you bu y a huge life insurance policy. This way the life insurance policy grows tax-free and there is enough to pay the estate taxes. say your estate is worth $20 million, it will need to pay $11 million in estate taxes, after your death leaving only $9 million to your dependents.
How to Handle this?
Buy life insurance for $5 million, so the policy grows tax-free from $5 million to $20 million, increasing your estate's worth to $35 million (your $20 million estate, less $5 million towards premium, plus the $20 million payout). After paying $19 million in estate taxes, your family will get $16 million which includes an extra $7 million thanks to the life insurance policy you bought.
What is the Reality ?
Initially you were paying only $11 million in estate taxes but with life insurance you have paid $19 million in estate taxes. If there is no other alternative to let money grow tax-free and also avoid estate taxes, the only solution is to buy life insurance to grow your money tax-free, for your kids inherit most from your taxes. There are however, legal and fully discloseable methods to resolve this by using a combining recognized methods with captive life insurance companies but they cannot completely avoid all taxes.
What is worse is that you spend a large amount on fees to life insurance companies for life insurance policies and commissions to the salesman. why pay an enormous life insurance fee when you can save yourself that money by buying your own captive insurance company instead.
A disclosure stating that your advisor will receive commissions is not enough so ask for a definitive statement of the total remuneration to be received by the life insurance advisor, both this year and in subsequent tails from the life insurance company. If you have a life insurance polcy, ask for an updated accounting of total commissions and tails received.
Private Placement Life Insurance
when you purchase life insurance for estate tax planning purposes, make sure you or your advisor ask for "Private Placement Life Insurance" (PPLI) from the life insurance company, to get you lower fees than what your life insurance agent would have got you. Also, the life insurance company and its actuaries will assist in structuring the PPLI to help you get better returns. PPLI is better than ordinary life insurance is because it saves your premiums from going towards pay commissions.
Conclusion
The lesson you can learn from this article is that if you have enough money to pay estate taxes, it is not essential to purchase a life insurance. If you do, you are anly giving away you money to the goverment and your salesman, which could otherwise be invested in other legal opportunities, which in turn will increase the amount of what you leave behind for your family.
How to Handle this?
Buy life insurance for $5 million, so the policy grows tax-free from $5 million to $20 million, increasing your estate's worth to $35 million (your $20 million estate, less $5 million towards premium, plus the $20 million payout). After paying $19 million in estate taxes, your family will get $16 million which includes an extra $7 million thanks to the life insurance policy you bought.
What is the Reality ?
Initially you were paying only $11 million in estate taxes but with life insurance you have paid $19 million in estate taxes. If there is no other alternative to let money grow tax-free and also avoid estate taxes, the only solution is to buy life insurance to grow your money tax-free, for your kids inherit most from your taxes. There are however, legal and fully discloseable methods to resolve this by using a combining recognized methods with captive life insurance companies but they cannot completely avoid all taxes.
What is worse is that you spend a large amount on fees to life insurance companies for life insurance policies and commissions to the salesman. why pay an enormous life insurance fee when you can save yourself that money by buying your own captive insurance company instead.
A disclosure stating that your advisor will receive commissions is not enough so ask for a definitive statement of the total remuneration to be received by the life insurance advisor, both this year and in subsequent tails from the life insurance company. If you have a life insurance polcy, ask for an updated accounting of total commissions and tails received.
Private Placement Life Insurance
when you purchase life insurance for estate tax planning purposes, make sure you or your advisor ask for "Private Placement Life Insurance" (PPLI) from the life insurance company, to get you lower fees than what your life insurance agent would have got you. Also, the life insurance company and its actuaries will assist in structuring the PPLI to help you get better returns. PPLI is better than ordinary life insurance is because it saves your premiums from going towards pay commissions.
Conclusion
The lesson you can learn from this article is that if you have enough money to pay estate taxes, it is not essential to purchase a life insurance. If you do, you are anly giving away you money to the goverment and your salesman, which could otherwise be invested in other legal opportunities, which in turn will increase the amount of what you leave behind for your family.
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