Category — Life Insurance

The fact that life insurance provides coverage of suicide can be a bit misleading. On the surface, the beneficiary of someone who commits suicide is not able to claim the benefit of death at all. No sentence of alienation suicide assured about the life of the victim of suicide amount will usually almost two years after the last date of issue. However, an opening impression, insurers actually provide specific rules in the case of suicide. This is hardly the case.
[Read more →]

Life insurance is a financial instrument whose primary function outlays a conservative outcome in the event of harm or fatality. Family dependents and financial obligations of an estate or individual can be assuage by a sizable life insurance policy whose premium can be serviced in the interests of estate planning. Life insurance can be obtained form licensed agents or life insurance brokers. Life insurance brokers can submit competitive policies with varying payments and “zero out” points. This is the earliest point at which the policy gives back value upon a death with no ongoing payments.

Conventional wisdom regarding life insurance says that the agent’s fee is paid for by the first year of payments. Ability to service life insurance payments is an important component of any estate planning process. Affordability should be kept in mind when reviewing varying insurance company policy proposals. Yet the “horizon” mark on the spreadsheet where payments stop and benefits continue or increase is considered the “zero out” point. The way the payment numbers play out versus payment on fatality events over months and years is called an “illustration”. Life insurance brokers and agents run software from the various companies that renders the spreadsheet result using the applicant’s profile and print it out for their review. The illustration is an estimate, and a qualifying medical exam must support submitted data to obtain those figures.
[Read more →]

Which Term Life Insurance Policy is Right For Me?

Term Life Insurance is a life insurance policy option that keeps an individual or group of individuals covered for case of accidental death or mischance.

Most insurance companies offer a basic ten or twenty year term life policy. Insurance for a short duration during periods of professional increased responsibility or reduced financial capacity can be supplemented by the portfolio value of a term life death benefit. Term life protects the dollar value of an individual’s earning potential, medical benefits, and death premium while exchanging insured compensation loss value.

Term life insurance is an effective way to screen a life benefit and premium payment for a term under which the death benefit is equal to the full value of term life policy. But the death benefit payoff amount if only qualified for eligibility under the life insurance policy during the term insured. Life term policies expire at the death of the named insured.
[Read more →]

Tax Liability, Fees and More

An existing life insurance policy that is bought by a third party in exchange for cash is termed life insurance settlement. Any senior citizen, above the age of sixty-five whom are met with critical health problems, financial crisis, terminally ill or other reasons which require immediate cash, can choose to opt for a life insurance settlement to relieve any of their financial obligations. Life insurance settlement companies/brokers generally purchase life insurance policies from these people. A fixed percentage of the policy amount will be paid by these companies/brokers. The amount paid would be much more than the value of the policy when surrendered. But the amount would certainly be lesser than the death benefit given by the insurance company.

The fixed percentage of the money paid by the life insurance settlement company would depend on a few factors; age, life expectancy of insurance policy owner, policy size, market rating of insurance provider company, etc. When one requests for a life insurance settlement, the company will then prepare all required documents and submit them to the respective insurance company to request for a change in ownership of the policy. Once everything is confirmed by the insurance provider company, the life insurance settlement company will then start collecting benefits and paying premiums for the insurance policy.
[Read more →]