One important consideration to remember is that just
because life insurance death benefits are almost always federal income tax free the death benefit may still be subject to federal estate taxes.
Because life insurance death benefits that are paid to charities are not subject to taxation, the charity will be able to obtain the full face amount of the proceeds.
Because a life insurance death benefit usually isn't considered taxable income, income tax usually doesn't apply.
Because a life insurance death benefit usually isn't considered taxable income, income tax usually doesn't apply.
Not exact matches
Because of this,
life insurance is far and away the easiest way to prevent
death from bringing financial trouble.
«
Because the chance of
death is really quite small at the ages where people would begin to think about buying
life insurance, delaying from age 25 to 30 wouldn't raise the rate a lot,» he said.
AIG is our favorite insurer for guaranteed acceptance
life insurance because their prices are competitive and they let you accelerate
death benefits if you become ill.
Because your
life insurance premiums are paid with after tax dollars, the
death benefit is able to be paid out in lump sum without any state or federal taxes being withheld.
If you need a large amount of coverage, simplified issue
life insurance isn't ideal for you
because most
life insurance companies cap the
death benefit at $ 100,000 (some companies offer as high as $ 500,000.)
With a guaranteed issue
life insurance policy, if you die
because of an accident (e.g. a car crash) within the first two years, the full
death benefit will be paid to your beneficiaries.
The reality is, a lot of people get freaked out thinking about stuff like estate planning and
life insurance because it's related to
death.
Term
life insurance is affordable
because it does not accrue a cash value and only pays the
death benefit.
To illustrate, understand that very few «term
life policies» ever pay a
death benefit
because the
insurance company has determined that the policy will likely expire before the
death benefit is ever paid... and most do.
We recommend term
life insurance over mortgage
life insurance if you're in good health
because you'll get cheaper quotes and the
death benefit goes to the beneficiary you choose.
Life insurance proceeds, which were paid to you
because of the insured person's
death, are generally not taxable unless the policy was turned over to you for a price.
AIG is our favorite insurer for guaranteed acceptance
life insurance because their prices are competitive and they let you accelerate
death benefits if you become ill.
Simply put, second to die or survivorship
life insurance differs from all the other types of
life insurance because it insures the
lives of two people AND only pays a
death benefit upon the
death of the last survivor.
But
because it pays on the first
death, the probability that the
insurance company has to pay a
death benefit is similar to having two single
life policies.
Absolute return is 13 % as per ICICI but I am not happy with returns but stayed with it
because of 5 lakhs
life insurance + 5 lakh accident
death & disability rider.
This means that the
insurance company only had to pay out $ 300,000 at the time of your
death,
because you had accumulated $ 200,000 in cash value during the
life of the policy.
Life insurance is beneficial
because the
death benefit is typically exempt from the probate process (which is when these «Who pays for what?»
This rider is critical, particularly if you are considering
life insurance for children or young adults,
because if the insured develops a disease or become uninsurable during the policy period, the
insurance company allows the insured to increase his or her total
life insurance coverage and
death benefit at specific times.
Because the
death benefit amount of your cash value
life insurance policy may change over time as its cash value grows, make sure to specify a percentage of the proceeds to go to your beneficiaries rather than selecting a dollar amount.
So, if your company is the beneficiary, which is kind of the point of key person
insurance, then the premiums are not deductible (similar to a personal
life insurance contract)
because the
death benefit is not subject to taxation.
AIG is our favorite company for guaranteed issue whole
life insurance because they also offer the option of accelerating the
death benefit if you become ill.
Whole
life insurance is much more expensive than term
life insurance — often 4 times as expensive for the same
death benefit —
because the premiums are going toward: the accumulating cash value, fees and charges (more on this later), and the
death benefit (i.e., the
life insurance).
If you need a large amount of coverage, simplified issue
life insurance isn't ideal for you
because most
life insurance companies cap the
death benefit at $ 100,000 (some companies offer as high as $ 500,000.)
With a guaranteed issue
life insurance policy, if you die
because of an accident (e.g. a car crash) within the first two years, the full
death benefit will be paid to your beneficiaries.
When comparing guaranteed universal
life to traditional whole
life insurance, the discussion shifts away from guaranteed vs. non-guaranteed
because whole
life insurance offers a guaranteed
death benefit WITH guaranteed cash value accumulation.
Many people are choosing this type of
life insurance with long - term care rider
because it provides coverage for LTC and a lump sum
death benefit.
However, some
life insurance companies have recently begun offering «beginner»
life insurance policies that are inexpensive, but only pay a
death benefit if you die
because of an accident.
If you do not qualify for term
life insurance, then accidental
death insurance may make more sense
because it's guarantee issue and means you will not be subject to medical exams or underwriting.
Cash value
life insurance is more applicable to wealth building discussions
because cash value is typically used during the policy owner's lifetime and is forfeited upon
death in lieu of the
death benefit being paid to surviving beneficiaries.
But
because it is
life insurance, it also provides an accelerated
death benefit that allows you to access your
death benefit if you are diagnosed terminally ill, with some whole
life insurance policies also covering chronic illness and long - term care.
This can be an especially good purpose for a mortgage
life insurance policy,
because employer plans generally do not provide enough coverage to provide for many of your family's needs upon your
death.
Because the
death benefits decrease over time, these policies tend to be more affordable than a standard term
life insurance policy.
They are less expensive than individual
life insurance because they're paying out the
death benefit farther in the future i.e. on the
death of the second spouse.
We have never considered variable or permanent
life insurance because we prefer to avoid combo type accounts that try to kill two birds with one stone by offering you
death benefits plus an investment account to boot.
Knowing how
life insurance works is important
because your different policy options will help determine how long it'll be in effect, how much you'll pay for it, and how your beneficiaries will be taken care of in the event of your
death.
This is
because term
life insurance offers just a pure,
death benefit protection option — without any cash value or savings build up.
Jeremy Hallett, founder of online
insurance marketplace Quotacy, said in an interview that premiums are typically 10 times higher for whole
life policies than they are for term
life policies with the same
death benefit
because permanent
insurance provides coverage for
life with guaranteed level premiums.
Because of this, term
life insurance can provide policyholders with a very affordable and cost effective way to purchase a large amount of
death benefit for a low premium outlay.
The point of a term
life insurance policy is to terminate when the term is up,
because at that point you'll probably have fewer expenses (mortgage, college, kids) and won't require the
death benefit.
Premium payments are also fixed for the term of the policy, but
because a
death benefit payout is expected more often than not, premium rates are often higher than with term
life insurance.
Because it offers flexibility and a cash value option, guaranteed universal
life insurance offers policy holders many possible ways to put the cash value and
death benefit to work for them, some of which include:
With term
life, there is
death benefit protection only, with no cash value build up — and
because of that, term
life insurance can frequently cost less than a comparable permanent
life insurance policy (all other factors being equal).
Low cost
life insurance is a product that is closely associated with
death because the plan pays when its owner has died.
Because of that, permanent
life insurance policies are often used as financial planning tools that can serve many more purposes than just simply paying out a
death benefit.
Guaranteed universal
life insurance is a solid option for estate planning
life insurance because it provides a permanent
death benefit at a relatively low cost.
A Comparison Can Be Drawn Between the Assets of Real Estate and Cash Value
Life Insurance Because, In Some Key Ways, They Are Similar Investments, and Who Holds The Title to These Assets, Both During Your
Life and Upon Your
Death, Will Impact Your Overall Estate Plan.