Life Insurance

Life insurance is a contract between the policy holder and the insurer, where the insurer promises to pay a designated beneficiary a sum of money (the “benefits”) upon the death of the insured person.  In return, the policy holder agrees to pay a stipulated amount (the “premium”) at regular intervals or in lump sums.  This is the basic definition.

Life insurance is simply a way to create an estate or leverage an estate for “death tax” purposes.

A good site that has calculators to determine life insurance and other needs is Life Foundation.  Feel free to go to their site to run calculations to determine your needs.  Once your need is determined, you can begin to research companies and products that suite your needs.  Every insurance company has a different underwriting parameters.  Do not assume the premium rates given by your agent will be the actual rate you receive!  Factors such as health and lifestyle play  a critical role in the pricing.  A good agent will get to know you in advance of submitting an application to a company.  This way the agent can research which company is offering the best underwriting, and therefore pricing, for you.

 

All Life Insurance policies have limitations, exclusions, charges, termination provisions and terms for keeping them in force. Guarantees are based on the claims paying ability and financial strength of the issuing insurance company. Please contact your financial professional for complete details.
Pursuant to IRS Circular 230, I am providing you with the following notification: The information contained in this website is not intended to (and cannot) be used by anyone to avoid IRS penalties. This website supports the promotion and marketing of insurance products. You should seek advice based on your particular circumstances from an independent tax advisor.
I may not give legal or tax advice. Any discussion of taxes herein or related to this website is for general information purposes only and does not purport to be complete or cover every situation. Tax law is subject to interpretation and legislative change. Tax results and the appropriateness of any product for any specific taxpayer may vary depending on the facts and circumstances.