quality term or whole life insurance coverage is important, especially if there are people in your life whose financial stability depends on your income. Many financial experts even consider life insurance to be the foundation of sound financial planning. Find out six reasons why you should purchase whole life insurance or term life insurance to protect your family and loved ones.
1. Income for Dependents
If people in your life depend on your income for financial support, having a whole life insurance or term life insurance policy in place will protect them in the event of your death. Life insurance can replace your income for your dependents so they aren’t left bearing the financial burden of an income lost through death. This applies most often to parents with young children, but is also applicable to couples if the death of one partner would leave the survivor financially stricken. If your parents, adult children, or siblings are your dependents, life insurance can also provide replacement income to benefit them. And, if your surviving spouse or domestic partner’s government or employer-sponsored benefits will see a reduction after your death, having life insurance to replace your income can definitely be useful.
2. Coverage for Final Expenses
Funeral and burial costs can be expensive, but your life insurance can cover the costs. Carefully planned life insurance will also provide funds to cover mortgages and other expenses. Debts and medical expenses not covered by health insurance can also be covered by your life insurance. Life insurance offers protection to the dependents you leave behind, since it can sometimes be utilized as a cash resource.
3. Create Inheritance
Life insurance can allow you to create an inheritance for your immediate relatives or heirs. Even if you don’t have any other significant assets to pass onto your surviving family or loved ones, you can create an inheritance by naming your heirs as beneficiaries in your life insurance policy.
4. Pay Estate Taxes
Rather than leaving your surviving family to take a smaller inheritance or do away with some assets, have a quality life insurance policy in place so the benefits can pay estate taxes. Some life insurance plans provide tax free cash that can be used to pay estate taxes and death duties.
5. Create Source of Savings
Your life insurance can become a sort of savings plan since some types of insurance can create a cash value that is available for withdrawal upon the owner’s request. Another benefit of this “forced” savings plan is that the interest credited is tax deferred, and if the money is paid as a death claim, the interest can be tax exempt (www.iii.org).
6. Make Charitable Contribution
By naming a charity as a beneficiary of your life insurance, you can make a larger contribution than if you donated the cash equivalent of your policy’s premiums. Donating a term life insurance policy allows you to deduct the cost of the premiums from your taxes. And, if you donate a whole life policy, you can deduct the cash value of the policy and the cost of the whole life insurance premiums. In both cases, after you die, the charity you select gets the insurance policy proceeds.
Plan ahead and ensure that you have a quality life insurance plan in place to protect your family.
Archive for the ‘Life Insurance’ Category
6 Reasons to Buy Whole Life Insurance or Term Life Insurance
Saturday, March 13th, 2010Options in Selecting the Right Life Insurance
Friday, March 12th, 2010The city supplies applicable companies numerous types of life insurance policies for employees receiving an income, not limited to accidental death or dismemberment coverage, basic life insurance, and commuter and motorist life insurance. These programs are entirely funded by the City of Mesa, Arizona. Supplemental life insurance is also offered at a premium cost that the employee is responsible for funding.
Basic Life Insurance
Basic life insurance is provided by standard life insurance to full-time employees at no cost. The benefit is equivalent to the employee’s yearly salary rounded up to the next $1,000. When hired, the employee is asked to designate a beneficiary for the policy. It is highly recommended to verify the beneficiary every few years, particularly if a major life event occurs, such as marriage, divorce, or the birth or death of family members.
Accidental Death or Dismemberment
Similar to the basic life insurance policy, this kind of coverage is granted through standard life insurance to full-time employees. It is entirely funded by the city. The benefit is also equivalent to the employee’s yearly salary rounded up to the next $1,000. The beneficiary for this policy is the same individual that that is designated for the Basic Life Insurance described above.
Commuter Life Insurance
Provided through CIGNA Life Insurance, this type of policy provides a $200,000 death benefit to a beneficiary if the holder of the policy is killed as a result of an accident that happens during the commute to or from work using the normal route. This kind of policy does not cover travel by aircraft, however. If an employee travels by air on a regular basis for work, they may want to look into specialized life insurance that covers travel by air. The beneficiary for this policy is the same individual that is designated for the Basic Life Insurance described above.
Supplemental Life Insurance
Supplemental, also knows as voluntary, Life Insurance offers the opportunity to enroll in added life insurance coverage for the policy holder, their spouse, and/or any dependent children. Coverage for the policy holder and their spouse is available in $10,000 increments up to the total sum of the amount of life insurance that the City supplies in addition to what the employee obtains for supplemental life, but cannot exceed a total of $300,000. As an example, if an employee makes $30,000 annually, the City will provide a $30,000 policy at zero cost to the employee. If the employee chooses to then purchase $100,000 in supplemental or voluntary life insurance, the employee’s spouse can procure up to $130,000 ($30,000 granted by the City in addition to the $100,000 supplemental/voluntary purchased by the employee). Premiums for this type of coverage are the policy holder’s responsibility and will be withheld by payroll. The City does not monetarily contribute to this coverage.
To add or increase coverage and for more company life insurance basics the employee will need to complete an application form, which can be found at http://www.mesachip.org (click on “Benefit Forms”). If the employee does not wish to make any changes at this time, they do not need to re-enroll.
If previous enrollment in Supplemental Life Insurance has not already been completed, or if an employee wishes to increase coverage for them self or their spouse, they are forewarned that their application will be subject to underwriting and authorization by the carrier administering the plan.
This coverage may be transferable should the employee terminate employment with and/or retire from the City of Mesa. However, the coverage must be active at the time employment ends. If the employee does not meet the eligibility requirements to transfer coverage, the employee may choose to convert their policy instead. Please refer to the Life Insurance Certificate of Coverage.
A Simple Life Insurance Quotes
Wednesday, March 10th, 2010If you are a retired person or if you do not care, but you are approached one product called the funeral insurance. This is also known as life insurance transaction costs.
What is it? Ah, this is a simple Life Insurance Quotes, aimed at the funeral expenses of an individual plan to help develop. Funeral in the Australia must spend AU$ 8000 – AU$ 10,000 or more. Many families are not prepared for these costs, can in their lives is very unpleasant for extra pressure. None of thousand dollars on an alarming rise if they are offended, because they have lost their love.
How can we plan the Funeral Insurance?
Nobody is willing to consider not only the beloved of. However, many elderly or children, the elderly, are glad they have some preliminary planning. One way to do this is to coordinate the purchase cost of maturity.
The amount will generally range from some 100 thousand one hundred thousand to one couple. The major
Life Insurance companies in this area of focus for its policy so that older people may qualify for other forms of insurance can be used for the old policy, but through her much trouble.
They have two types of security – in the simplified version. They do not need to undergo a medical examination to apply.
Simplification of the policy on the issue provides a number of health problems, but the majority of older people will assume that the disease is not terminated, or in a nursing home. These are usually conducive to immediate death; the premiums are affordable for many families.
Make sure the policy issue is not health. However, they waiting, rather than the health of the signature, so the use, the death benefit are not payable unless the insured person resides within the prescribed time. If a candidate than to leave before time expires, you can refund of the premium of interest or a part of the death benefit can be paid. Politics is different, it is important to understand how they work before you buy!
If his insurance premium, if retirement is really not interested in waiting to receive the family of the insured more than a huge risk-reward, but it is not as good as the full face value. Most planning applications for the first began 50 years young and healthy candidates for better opportunities, they qualify for better rates! I have plans to accept applications until 85 years old, but applicants must be relatively good health.