Estate Planning - What About Life Insurance?
Copyright 2006 Ronald Hudkins
Not too many years ago life insurance was considered to be the indispensable platform upon which all other estate planning efforts should be based.
In fact, for those in the median and lower income ranges, it was often the only recognized method
for protecting one's heirs, particularly in the event of untimely death.
However, over the past twenty or so years, the concept of financial planning has changed considerably. The proliferation of varied retirement plans available through work (IRAs, SEPs, SARSEPs, mutual funds, etc) has changed people's perspectives about the need for life large life insurance policies.
Does that mean that you don't need life insurance?
No.
Most people, perhaps with the exception of the very wealthy, do need some sort of life insurance, although even the very wealthy may opt for a life insurance policy (generally whole life) to defray the costs of burial and estate taxes.
In general, the options are whole life (also called permanent insurance) and term life, with variations like universal life or variable life that combine some of the benefits of each.
Different companies offer different options, but which you need and how much you need are matters for heated debate.
Those who sell one and make most of their commissions from it will vehemently try to convince you that the other is not a good investment.
Here are some facts for your consideration.
Whole Life Insurance Advantages:
? Offers a guaranteed death benefit no matter how long you live
? Is generally not subject to rising premiums; rates stay the same
? Many policies become "paid up" at some point (15 years, age 65, etc.) after which no more premiums are paid
? Has investment value which can be cashed out after some specified interval
? Can be borrowed against in case of financial emergency
? Can, in many cases, occasionally earn dividends depending on the company's solvency and accuracy in predicting actual costs
? The income from a whole life policy is tax deferred
? Can be cashed out after age 65 and used for retirement
Whole Life Insurance Disadvantages:
? Costs more than term life insurance
? Generally returns a fairly low rate of interest
? Does not begin to accumulate any real value for the first 10-15 years
? If the policy is surrendered within the first few years, money paid into it is lost
? Does not provide the investment value of a mutual fund or other investment
Term Life Advantages:
? Premiums are generally very inexpensive
? Lower premiums allow the buyer to purchase more insurance with higher death benefits
? Can be quite useful if the buyer only needs coverage for a specified period (while paying off the mortgage or while kids are in college, etc.)
? Leaves the buyer with more money to purchase other investment vehicles like mutual funds, stocks, bonds, etc. that provide higher rates of return than whole life
? Often beneficial for younger families who can't afford whole life rates, but need to insure the primary income earner
Term Life Disadvantages:
? Only pays if and when you die; you can never personally recoup any of the money spent on term life insurance
? While premiums are lower than whole life, they also tend to go up and can become unaffordable
? Term life is only available for a specific term (up to 30 years), and then goes away; if you don't die within the term, your premiums are lost
Almost everyone needs life insurance of one variety or the other.
The type of insurance and the amount to purchase depend entirely upon you, your family and your mutual goals and needs.
In any case, make sure the company you purchase insurance from is reputable and financially solvent.
Don't be convinced by a fast-talking sales person without doing your homework first. There are few remedies if your life insurance company dies before you do.
.
He has coordinated with military and criminal investigators, set on court marshals and worked closely with the Staff Judge Advocate Generals Office (JAG).
He has a keen sense of legal matters - their interpretation, initiatives and guidelines.
For imperative financial planning needs he suggests his book ?Asset Protection and Estate Planning for All Ages.?
Additionally, he offers a Free Newsletter at his web site:
http://www.AssetProtectNow.com
Can I Really Get Life Insurance, No Exam Required?
Term life insurance policies provide a limited coverage period, which is determined by the policy owner. Term life insurance rates are actually the cheapest form of life insurance, but there are different rates for different people. This is because once the term of the policy is up you don't receive any payout from the policy. If you take out life insurance at a young age, you will get much better term life insurance rates than if you wait until you are older.The total cost of your term life insurance rates can be tricky. Some term life insurance policies appear to cost more, but may, in fact, be cheaper when you look at the total cost of the term life insurance policy.
For example, annual renewable policies increase your premiums every year and thus may appear to be more expensive than level term policies where the premiums never increase (although the initial premiums for a level term policy will be higher). But, in fact, level premium policies may involve higher costs over...
Can I Really Get Life Insurance, No Exam Required?
Term life insurance > Can I Really Get Life Insurance, No Exam Required?
Life insurance-features and objectives
The life insurance is conceived to protect people dependent on one from the financial losses that such people would incur in case of one's death. The life insurance policy has become a fundamental part of sound financial owing to its association with investments, retirement plans and plans for real estate. Nowadays, various life insurance products are available. Each one is designed to fit certain unique circumstances and satisfy individual needs.Two main kinds of life insurance are there:i)Term insurance: This does not accumulate cash value and this is issued in order to cover the life of the insured person for a specific period of time only.ii)Whole life insurance: These do accumulate cash value and are issued in order to cover the insured persons throughout their lifetime. The life insurance contract comprises of several rights and the person entitled for exercising these rights during the lifetime of the insured is the owner of the insurance policy.
The following are the most...
Life insurance-features and objectives
Term life insurance > Life insurance-features and objectives
What is Term Life Insurance?
There are two different types of life insurance, term life insurance and permanent life insurance. Term life insurance is the easier of the two plans. This plan supplies you with death protection for a pre-determined amount of time, anywhere from one to 30 years. If you happen to die while paying on this type of policy your beneficiary will be paid the amount of money you specified when purchasing the policy. If at the end of the term you are still living your death protection coverage will cease unless of course you renew the policy.
You can purchase this policy on a minimum budget and it is particularly perfect for providing coverage while your children are still in the home or while paying off a mortgage or other large loans. This plan is merely a "quick fix." It is similar to leasing a vehicle. You pay a lower cost for the privilege of driving the car knowing you will return it after a short period of time. However, just like when leasing a vehicle there is an option to buy....
What is Term Life Insurance?
Term life insurance > What is Term Life Insurance?
Long Term Care Insurance and Suze Orman - The Ongoing Controversy
Copyright 2006 Clay Cotton
Long term care insurance is an obvious "must-have' for Americans with assets and families to protect and with discretionary income to afford the premiums.
While Suze Orman publicly promotes this coverage as the foundation of your financial plan, we wonder if she ought to put even MORE emphasis on LTCi protection
People all-too-often assume that long term care is just for the elderly, and
it's shocking to learn that over 40% of nursing home residents are currently under age 65.
In fact, because of my advanced Multiple Sclerosis, I would be in a nursing home right now if I had LTCi coverage to pay for it, and if my beloved wife, Kimberly, would agree to let me out of her sight.
In any case, while Suze Orman is clearly America's most popular financial advisor, she is also America's most visible proponent of long term care insurance.
This is a good thing for all of us since, of every...
Term life insurance > Long Term Care Insurance and Suze Orman - The Ongoing Controversy
What is Life Insurance?
Life Insurance is an insurance policy that provides an agreed amount of cover over an agreed term, so that should you die during the policy term, a lump sum is paid out. Life insurance is considered as the cornerstone of financial planning. It is a cost effective way to provide for your family after you are gone. Many of us will at some stage in our lives have the need for life insurance. Life insurance is an agreement between you and an insurer and under the terms of a life insurance contract, the insurer promises to pay a certain sum to a designated beneficiary when you die, in exchange for your premium payments.
This may give you peace of mind that, should you die during the policy term, your family would have some financial security.The most common reason for buying life insurance is to replace the income lost when you die. For example, say that you work, and that your income is used to support yourself and your family. When you die and your income stops the life insurance...
What is Life Insurance?
Term life insurance > What is Life Insurance?
Save Money By Getting A Term Life Insurance Quote Online
When deciding or choosing what life insurance is best for you, you can avoid feeling pressured into a policy by searching for a term life insurance quote online. The service is terrific and it can be a fast turnaround because you control how fast or slow the process can be. Getting a term life insurance quote online is as simple as the click of the mouse. With so many life insurance companies now operating on the Internet, all you have to do is log onto the various sites and check out the rates for term life insurance.When you check for a term life insurance quote online, you do not have to pay for the quote. This service is free and you should request quotes from at least three different companies.
This way you can do a comparison of online life insurance quotes. Each of the companies has a form that you fill in and they will respond to you with the quote- usually in less than 24 hours. Some of the required questions you will have to answer to get a term life insurance quote...
Save Money By Getting A Term Life Insurance Quote Online
Term life insurance > Save Money By Getting A Term Life Insurance Quote Online
Affordable Term Life Insurance
Depending on your age, you may find that term life insurance works best for your situation. Term life insurance is ideal for younger people with families to support. In fact, term life insurance should be the most affordable option for you until you reach the age of 50, at which time you should strongly consider going with a life insurance policy that has no term limits ? such as a whole life policy.
Affordable term life insurance should replace the income that you would have provided had you lived to retirement age, at the very least. With this type of coverage, you can be sure that you meet your family's financial needs after you have passed away, in the event that you die at a younger age. Nobody likes to think that they may not live to be old ? but this does happen, and the most loving thing you can do for your family is to plan for that event in advance, and then try to prevent it from happening.
Term life insurance will help pay mortgages and other household...
Term life insurance > Affordable Term Life Insurance
UK life insurance, stock markets, and investment value.
Life insurance is often considered a dry topic. However it's a subject that can pry open a number of interesting questions about?you.
The number one consideration, UK or elsewhere, when you are considering your life insurance policy is: what are you really after from your life insurance? Are you after basic, no-frills insurance that covers costs and cashes in should you die within a pre-determined period, or are you looking to benefit yourself with investments tied-in with your life insurance?
As in all financial considerations, you have options. And there's plenty of room to spin a profit from even the most commonplace life-insurance policy. The underlying benefit would come from shopping around for financial providers dealing with UK life insurance. MoneyNet is a great example of how online services which allow you to quickly search for financial products offer specialised sections of their sites for particular...
Term life insurance > UK life insurance, stock markets, and investment value.
New Web Site Provides Tips on Car Insurance Shopping and How to Save Money on Gas
Calabasas, CA (ContentDesk) July 24, 2006 - Today, millions of car insurance consumers are buying their car insurance policies on the telephone and the Internet. Insurance companies are spending more money than ever on advertising to entice the consumer to contact them for a rate quote on a new policy. Rate quotes and policies are available over the telephone and through a multitude of web sites, from...
New Web Site Provides Tips on Car Insurance Shopping and How to Save Money on Gas
Term life insurance > New Web Site Provides Tips on Car Insurance Shopping and How to Save Money on Gas
Send Valentines Day Flowers: Fresh Valentine's flower Delivery Service from Online Flowers
Online flowers ( www.onlineflowers.com ) is lending a helping hand with their Valentines Day flower delivery service. Online flowers is the online division of Swenson & Silacci Flowers located in the Salinas, CA area. Swenson & Silacci Flowers was voted the 2004 retail florist of the year by the Wholesale Florist and Florist Supplier Association.If you are looking to send Valentine's Day flowers, visit us at
Send Valentines Day Flowers: Fresh Valentine's flower Delivery Service from Online Flowers Term life insurance
Term life insurance > Send Valentines Day Flowers: Fresh Valentine's flower Delivery Service from Online Flowers
Your Tire Counts
The Automobile Club of Southern California has recently stated that as long as your vehicle has tires that are in good working condition, you would be able to have a good fuel economy and extend the life of your vehicle as well. This is in accordance and with regards to the National Tire Safety Week which started just last April 23rd and would be continuing at the end of this week.
The National Tire Safety Week was launched so as to assist drivers in understanding the basic...
Term life insurance > Your Tire Counts
Diesel Generators
Fuels such as gasoline, diesel, propane or natural gas basically power home generators. Some models also have multi fuel capabilities and run on gasoline, propane or natural gas. The choice of the fuel will depend on the availability of the fuel in times of emergency, fuel consumed per kilowatt of power produced, maintenance of the generator and the comparative risk of storing the fuels.
Diesel generators consume comparatively less fuel per kilowatt of electricity produced and more...
Term life insurance > Diesel Generators
#1 Dancewear Store Gains Web Presence
Baton Rouge, Louisiana (ContentDesk) November 28, 2005 -- Pampos, the number one dance store in Baton Rouge Louisiana, is taking their business online with a brand new e-commerce website www.pamposdanceandswim.com that features dancewear like ballet leotards, dance gifts and accessories, discount dance shoes, gymnastic leotards, and liturgical dancewear. Pampos will also be adding a new line of swimwear...
skirts #1 Dancewear Store Gains Web Presence Term life insurance Estate Planning - What About Life Insurance?
Term life insurance > #1 Dancewear Store Gains Web Presence
Durable laptop cases
For those who put a lot of faith in their technology on the move solutions, durable laptop cases are a key part of making sure that the machine arrives in the same state as which it left. There is no use skimping on a carrying case if it means that the machine is not adequately protected and arrives in pieces at your destination.The good news is that you do not need to spend a fortune in order to get a shoulder strap bag, back pack, or briefcase that is big enough for your laptop, stylish enough...
Term life insurance Estate Planning - What About Life Insurance? Durable laptop cases
Term life insurance > Durable laptop cases