| |  | What can Life Insurance be used for? |
|  | | | | | Life Insurance Can Be Used To: |  | - Create An Estate: Where time or other circumstances have kept the estate owner from accumulating sufficient assets to care for his or her loved ones, life insurance can create an instant estate.
- Pay Death Taxes And Other Estate Settlement Costs: These costs can vary from a low of three to four percent to over 50 percent of the estate. Federal Estate Taxes are due nine months after death.
- Fund A Business Transfer: Business owners often agree to buy a deceased owner's share from his or her estate after death. Life insurance provides the ready cash to finance the transaction.
- College Fund For Children Or Grandchildren: Cash value increases in a policy on a minor's life (or the parent's life) can be used to accumulate funds for college.
- Pay Off the Home Mortgage: Many people would like to pass the family residence to their spouse or children free of any mortgage. Often a decreasing term policy is used, which decreased in face amount as the mortgage balance is laid down.
- Protect A Business From The Loss Of A Key Employee: Key employees are difficult to attract and retain. Their untimely death may cause a severe financial strain on the business
- Create A Retirement Fund: Current insurance products provide competitive returns and are a prudent way of accumulating necessary funds for retirement years.
- Replace A Charitable Gift: Gifts of appreciated assets to Charitable Remainder Trusts can provide income and estate tax benefits. Life insurance can be used to replace the value of the donated assets. Proceeds from life insurance policies can also be paid directly to a charity.
- Pay Off Loans: Personal or business loans can be paid off with insurance proceeds.
- Equalize Inheritances: When the family business passes to children who are active in it, life insurance can give an equal amount to the other children.
- Accelerated Death Benefits: Beginning in 1997, a “terminally ill” insured may obtain the death benefits of a life insurance policy on his or her life, income-tax-free. Such “living benefits” could be used to pay medical expenses, ease financial stress, and maintain one's dignity by not dying destitute. If certain conditions are met, a “chronically ill” person may also receive accelerated death benefits income–tax–free.
| |
|
|
| | |  | |  | | Contact our EMPLOYEE BENEFITS & LIFE INSURANCE DIVISION today | | Contact Us Now | | Our experienced team of professionals are standing by ready to discuss your insurance needs. | | | |
| |  | |  |
|
|
