Life Insurance
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.
1) Estate planning Life insurance policys money can be assigned
to pay estate taxes so that your heirs will not have to liquidate
other assets.
A beneficiary is the person or financial institution, (a trust
fund, for instance) that will benefit from your life insurance
policy. In addition to naming a specific beneficiary, you
should name a second beneficiary. In case you outlive both
your beneficiaries, the proceeds will go to your estate.
2) Replacement of Income Earning a living is considered by
many to be the key economic asset of their life. If you have
dependants, consider what they would do if they were deprived
of you income. Money paid out from life insurance can be used
to supplement their retirement income. This is useful if your
spouse cannot avail of a few benefits after your death.
3) Pay outstanding debts and long-term obligations Buy life
insurance so that your relatives have the money to offset
burial costs, clear credit card debts and medical expenses
that are not covered by health insurance. In addition, life
insurance can be also used to pay off your mortgage, and add
to the retirement savings of your spouse and help pay college
tuition for your kids.
Picking a beneficiary are vital
parts of purchasing life insurance. The birth or adoption
of a child, marriage or divorce can affect your initial choice.
So it is important to keep the choice updated. Special attention
needs to be shown to the wording of your chosen beneficiary
to ensure that the right person receives the proceeds of your
estate. If you write "wife/husband of the insured"
without using a specific name, an ex-spouse could receive
the proceeds. On the other hand, if you have named specific
children, any later-born or adopted children will not receive
the proceeds.
Commercial Rates Table of American Income Life insurance.
Note: Only a small percentage of consumers have the health
and lifestyle features to qualify for "super-preferred"
prices.
Standard
$407 - Americom Phone:(800) 987-9004
$410 - Cincinnati Phone:(513) 870-2000
$412 - West Coast Phone:(800) 366-9378
$430 - Banner Phone:(800) 638-8428
$440 - MONY Phone:(866) 262-6669
Super-Preferred
$220 - Banner Life Phone:(800) 638-8428
$225 - GE Capital Phone:(206) 625-1755
$225 - Lincoln National Phone:(800) 231-3655 219) 455-2000
$240 - American General Phone:800) 231-3655
$232 - Federal Kemper Phone:(847) 550-5500
There
are two types of life insurance
Term
Term Insurance is the basic life insurance. It provides financial
protection bound by a specific time, usually between one to
thirty years. They are comparatively inexpensive and are well
suited for specific purposes, like insurance protection for
paying off a mortgage or paying the tuition fee for college
education. Purchasing term insurance is like renting a car,
a short-term solution. Monthly costs are lower, but you will
not be building any equity. Individuals who need insurance
protection now, but have limited resources, should purchase
term insurance and then change to permanent protection. Others
see term insurance as the best and cost-effective way to protect
their family and still have money to put into other investments.
Permanent
Permanent insurance (such as universal life, variable universal
life and whole life) provides long-term financial protection.
These policies include both a death benefit and, in some cases,
cash savings. Purchasing permanent insurance is like buying
a car instead of renting. You are taking care of long-term
needs with a long-term solution. Your monthly costs may be
higher than if you rent, but your payments will build equity
over time. If you purchase permanent insurance, your premiums
will pay a death benefit and will also build cash value that
can be used in the future.
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