Posts Tagged ‘Estate planning’
Friday, April 15th, 2011
A survivorship policy will cover those taxes and preserve the estate for the heirs. It is also a good vehicle for providing financial assets to support a special needs child. This is a simple way to handle estate taxes. A spouse can leave everything to the other spouse without incurring estate taxes. A survivorship policy will cover those taxes and preserve the estate for the heirs. Both types of life insurance cover both spouses in a marriage. Both have to die before the policy pays out. However, when the surviving spouse dies, the estate taxes will come due.
As with other permanent life insurance policies, this type of insurance provides death benefit coverage throughout the covered persons lives. Survivorship life insurance is the whole life policy. It also has an accumulating cash value that the policy owner can use for loans or eventually surrender it for cash. There are several subtypes of these policies such as the non-participating, participating, indeterminate premium, economic, limited pay, single premium, and interest sensitive.
The second type of survivorship life insurance is the universal life policy. This type of insurance gradually accumulates value as the policyholder makes premium payments. This type of policy offers flexibility in making premiums. Sometimes the policy grows at a fixed rate determined by the insurance company. Other policies have a growth rate tied to a particular interest rate index. These policies come with different premium options. The policyholder can pay a single premium up front. Another type comes with a fixed premium amount. Another type comes with the flexible premium amount.
These policies are usually more affordable that individual policies, especially when one or both individuals are not in good health. These policies are usually more affordable that individual policies, especially when one or both individuals are not in good health. It should be part of a comprehensive estate planning strategy that involves tax and estate planning professionals. Survivorship insurance is a great way to offset estate taxes. It simplifies estate planning because both spouses have coverage. That means the surviving spouse doesn’t have to worry when the first spouse passes. Speaking with an insurance broker is only the first step in determining the right type of insurance policy for your needs
Another reason it is so popular is it is a handy device for estate planning. Because the policy does not pay out until the second person dies, the policy can handle the costs of estate taxes. Another reason many use these policies is to provide financial support for a special needs child after both parents die. It offers the ability to name any beneficiary as does any other life insurance policy does. This flexibility allows the surviving spouse to go on living life without worrying about covering estate taxes or leaving enough to cover the needs of a dependent.
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Tags: affordable life insurance, cash accumulation, cash advance policy, Estate planning, Financial Planning, flexible life insurance, life insurance, tax shelter vehicle
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Thursday, July 29th, 2010
Joint life insurance is an insurance policy with its good sides and bad sides. If you are a couple thinking about getting one, then you need to compare this policy with a single type policy. It is even possible to find a provider with a joint policy option that is suitable for you. So don’t stop checking them out until you find the one that suits you best.
Like most people you want a joint life insurance so you can have some sort of assurance that your family will have at least some sizable fund at their disposal when you are no longer around due to death. However, just possessing a joint life policy should not be the only thing you have as you can also set up a family trust to achieve this goal.
This trust will augment joint life insurance and also ensure that one’s assets are transferred to your family members or beneficiaries when the time comes for this to be done. A major benefit that you have with this type of insurance is that it is often less expensive compared to two single life insurance policies.
One other benefit you can get from this insurance type is the fact that this will provide money to the partner; who survives the death of his/her spouse to help meet various financial obligations such as: mortgage payments and other expenses incurred in meeting the children’s needs.
Two common types of joint life policies are term and whole life. If you go for a joint term life policy, then you will be paying less premium and only look forward to a death benefit at the end of the day. However, with a whole life variant of this type of insurance you are entitled to payment of the premium value and death benefit.
Now going back to the trust option mentioned earlier it is possible to supplement your joint life option with the creation of a family trust. The trust, also known as inter vivos or living trust is created while the person is alive. It simply involves giving your property or assets to a trust that has been created by you and this is then held and also managed by a third party you have chosen.
Some benefits of family trust are: being able to protect your estate from likely financial liabilities since ownership of this estate is now the trust; possibility of reducing tax payment and also being able to avoid probate proceedings.
Lastly, a major downside that a joint life insurance policy has is what happens whenever divorce takes place. To this couples have been advised to also have single life policies together with joint policies.
More interesting stuff on Family Trust and similar subjects is available at FamilyTrustSecrets.com. You will also be in the right place for all Joint Life Insurance queries and related matters. Click on a link now !
Tags: affordable life insurance, estate, Estate planning, Family Trust, finance, Inheritance, joint life insurance, legal, Living Trust, Trust, Will
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Tuesday, May 18th, 2010
If you’re going to get life insurance, be sure to choose a reputable company with a great track record for service. It is not advisable to use a low rated issuer for your policy. The protection you seek is actually for your loved ones when you pass away.
Do some preliminary research into the background and performance history of the companies you are interested in doing business with. There are quite a few independent research companies that will uncover and explain the insurance ratings. There are two entities that handle insurance policies; companies and mutual companies.
It is very difficult to tell which is which on the surface but with a little digging you’ll be able to discover the facts based on the differences in life insurance policies. In the unfortunate event of your death, it is important to leave your family with enough security to take care of your burial needs as well their financial well-being. This is smart and prudent planning.
Your policy will be able to see to the financial safety of your dependence and loved ones after you pass on. There are three primary types of insurance policies to consider before you make your decision.
Term Life Insurance
As the most common and basic of the life insurance policies, your beneficiary will receive the assured amount after your death; this goes to the designated person in the insurance contract. So you must determine how much life insurance is required; including for premium rates.
If your policy lapses and is discontinued, you cannot recover any money from your insurance.
Whole life policies; how they work -
In this time of financial insecurity, there is no safer program that a whole life insurance policy. Your monthly premiums go into a savings program that pays interest and builds equity.
The insurance company pays up the face value to the beneficiary if the policy holder expires before the end of the policy.
Decreasing term insurance
This type of life insurance policy related to term insurance and mortgage. This type can be great option if you take a mortgage and you have the money in circulation.
You must make this assurance when you take a mortgage. The sum insured for the duration of the mortgage. When you pay the amount of your mortgage, the money remaining on the insurance policy is reduced to no more obligations.
Shopping around for a life insurance agent has its drawbacks; if they begin to pressure you after you’ve shown an interest. There is no pressure to make a sale if you use the Internet to research your quotes. Online life insurance quotes take very little time and eliminates the sales person.
You’ll be able to research at your leisure and avoid any pressure from underwriters who want to sell you something. Online services use reputable brokers who are in touch with qualified agents.
Start by collecting all the pertinent information before you begin searching for online quotes. It is in the best interest of these companies to help you answer the pressing questions regarding life insurance.
There are a lot of companies who will just about sell you anything, whether you need it or not. You can safely go online and be assured to find the correct information that will fulfill your life insurance needs.
Learn more about life insurance quotes. Stop by Daniel Fenton’s site where you can find out all about life assurance quotes and what it can do for you.
Tags: affordable life insurance, Estate planning, financial, Financial Planning, life assurance quotes, life insurance quotes
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Sunday, March 14th, 2010
Can a person in their middle years or senior years still buy life insurance? If you are over 50, or if you are caring for an older person, you can find a wide choice of products. Since statistics show that Americans are living longer and healthier lives, insurers are willing to extend affordable coverage to older people. Most middle aged and older people can still find life insurance policies.
Why are baby boomers and seniors looking for policies? At thirty or forty, a lot of us bought a twenty or thirty year term life insurance policy. That seemed like plenty of time to save money, get our kids educated, and pay off our mortgage. We figured that by the time we were fifty or sixty, we would have everything in order, and we would not need coverage any more.
But these days, many of us found that the theory did not prove out for us. Our kids did not manage to become totally self supporting as fast as we thought they would. Sometimes those kids come home with our own kids, and they still need our help. And we did plan to pay off that mortgage. But many of us got delayed because we moved or needed to take out a second loan. Years passed, but we did not outgrow our need for a life insurance policy.
So, why don’t we have life insurance? Well, that term policy only lasted for 20 or 30 years. Thankfully, we outlived it. Or we had group coverage at work, but we are not at that job any more. We are older now, but we do not have any coverage.
What life insurance should older people look for? Before you buy anything, you should think about why you want to buy a policy. Do you just want coverage to make sure your kids or spouse have money? Or do you want to build an asset that may help you in the future? Finaly, you may want to use your policy to help transfer wealth to your family?
If you just want insurance, consider term. Premiums are cheaper anyway, and that will be important because an older person is likely to cost more to cover than a younger person. Even if you are middle aged, or in retirement age, you may still be able to find an affordable term policy.
Some term policies can be converted to permanent policies later. This allows you to get the cheaper one now, and then decide if you need lifetime coverage later. Since you are not sure what you will need in ten or twenty years, this may be a good option. These policies should not require you to prove you are healthy either.
Even though it costs more, whole life has some benefits. The price will be lower at sixty than it will be at seventy, so you can lock that in now. You will also have the opportunity to build an asset for yourself, or for your estate. You should explore the benefits of permanent coverage before you decide against it.
How much will this cost you. Premiums will vary by many factors. These include the size of the death benefit, the type of insurance, your age, and your general health. An experienced insurance agent should be able to help you explore your options. Just be careful if they seem too concentrated on one type of policy.
Learn more about Term Life for Older people.
Tags: baby boomers, elder care, Estate planning, finance, Financial Planning, insurance, life insurance, over 50, senior life insurance, seniors, term life insurance, whole life insurance
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Wednesday, February 10th, 2010
Life insurance is one of those things that few people could fail to benefit from. It offers peace of mind to the policy holder and financial support to its beneficiaries. If you need a list of reasons to get life insurance, here are a few to get you started.
It essentially works like this: in return for your monthly premiums, the insurance company agrees to pay a lump sum to your beneficiaries (the person or people you designate to receive the death benefit).Most obviously, life insurance can provide for your family in the event of your death.
It is important to remember that with this policy, no restrictions are placed up your beneficiaries as to how they utilize the money. Your beneficiaries can decide if it will be used to alleviate debt, purchase their home, or even attend college. The amount they receive will vary depending upon the type and coverage you purchase.
In some instances, the benefit may be used to pay off money you owe. Some people may choose to link their largest debts to a decreasing term insurance policy due to the magnitude of their debts. For instance, a decreasing term policy covering a home debt will charge lower premiums as the the home loan is paid off. The insurance company will pay the remaining amount to the bank should death occurs before the loan has been fully paid.
If you would like your insurance death benefit to pay more than just enough to settle outstanding deaths, whole life insurance may be a viable option. Here, premium payments are made in the course of your life. Plans are available where you to pay a level amount throughout, or pay higher premiums at the start of the policy. Depending on the plan, payments cease stop at age 60, 65 or 85 but coverage will still continue. In the event of your death, the insurance company will pay out a benefit to your chosen beneficiaries. The benefit does not depend on how long you have actually held the policy.
South Africa is only one of two countries where life insurance is available for people who have tested positive for HIV or have AIDs. The premiums are slightly more expensive and the insurance companies will need policy holders to continue with anti HIV therapy.
Be sure to deal with well known, reliable companies with a history of making the payouts they have agreed to. Most experts suggest approaching at least five companies to educate yourself about the different life insurance plans and options available.
Bear in mind that a life insurance policy may be the only protection your family has from financial hardship in the event if an unexpected death. The peace of mind coming from the knowledge that your family will be provided for more than offsets any inconvenience you may experience now.
Tom Martens is the content syndication coordinator at lifeinsurance-southafrica.co.za. South Arica\’s leading Life Insurance portal
Tags: affordable life insurance, death, Estate planning, insurance, life, life cover, life insurance, Life Protection, medical, retirement
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