Posted on Mon, Mar 31, 2008
According to a recent article penned by a New York Life securities partner, Life insurance may be a player in the credit game.
When banks evaluate a loan application from a business client, they frequently take into consideration whether a key employee in that business has life insurance. In the event that the employee’s loss causes a business disruption, the life insurance could serve as a means of secondary collateral. In a sole proprietorship or other closely held business, a life insurance policy can possibly be a deciding factor to the bank as to whether or not to grant the loan. The chances for obtaining a loan approval may be enhanced if the business itself is named as the policy beneficiary.
A life insurance policy can help in the following ways:
It may make a lender more willing to grant credit or a loan.
It may open access to higher amounts of credit.
In some instances, it may result in a more competitive loan rate.
Term Life Insurance is often used, especially when:
Protection needs are short-term or limited, such as to cover a single loan for a specific period of time.
The situation calls for a high dollar amount of coverage.
Dollars are tight. Term insurance provides coverage for a lower immediate premium dollar than does permanent insurance.
Most businessowners prefer no-frills protection. You can buy it when you need it and drop it when you’re done.
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com
Posted on Sun, Mar 23, 2008
For many people, the first thought that comes to mind when they think of insurance is costly premiums. But as April 15 approaches, insurance writer Marshall Loeb in the San Jose Mercury news reminds insured individuals, or those shopping for life insurance, that some insurance products come with tax advantages that can save you money.
Consider these five insurance tax reminders by the non-profit Life and Health Insurance Foundation for Education (LIFE). Some of the benefits include using various types of insurance to pay your estate taxes, helping you accumulate money on a tax-free or tax-deferred basis and even lowering your taxable income.
• Life insurance death-benefit proceeds are generally income-tax-free. As long as your beneficiaries are specifically named, they won’t have to pay income taxes on the proceeds they receive from your life insurance policy.
• Sixty-five percent of 65-year-olds will require long-term care services at some point in their lives. For the many who will require services for several years or more, the cost can be astronomical, so it often makes sense to consider long-term-care insurance. Depending on your age, adjusted gross income and other medical expenditures, the premiums you pay may be tax deductible on your personal income tax. If you are self-employed, there are even greater tax advantages by paying your insurance premiums through your business.
• The annual gains you earn from traditional investments and savings vehicles must be claimed as income on your tax return. However, the gain in cash value that builds up over time in permanent life insurance policies can be tax-free or tax-deferred, depending on how you withdraw the money later on. What’s more, these gains are not subject to the alternative minimum tax.
• An annuity can provide you with a guaranteed lifetime income and thereby deliver some much-needed stability and predictability to your retirement security plan. Moreover, with an annuity all gains are tax-deferred until you retire – at which point you may be in a lower tax bracket than you are currently. The portion of the funds paid out that are made up of previously taxed principal will be received tax-free. If you’ve hit maximum limits in other tax-deferred retirement savings accounts, an annuity can be an attractive option.
• An irrevocable life insurance trust (ILIT) can help minimize estate taxes. While life insurance proceeds at death are almost always free from income tax, they may be subject to estate taxes if they bring your assets over the exemption limit set forth by the IRS. An ILIT immediately removes new life insurance policy proceeds from one’s taxable estate by setting up an independent legal entity that is the owner and beneficiary of the policy. The ownership of an existing policy may also be changed to an ILIT, but the death benefits won’t be tax-free until three years have passed from the date the ownership was transferred to the ILIT.
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com
Posted on Tue, Mar 18, 2008
Parenting Magazine Online has weighed in on the MSNBC cable television network on the best financial tips for Moms. The bottom line: Life and Disability Insurance are musts for both parents.
MSNBC reported that “Any time people are dependent on your income to pay for their living expenses you need insurance. Life insurance is intended to help pay for family living expenses until your children are 18 or on their own. Disability is another important, but often overlooked, form of insurance that provides money in case a working parent is ill or injured and unable to work.”
Both you and your spouse need life insurance — no question about it. If you’re staying at home, your life insurance wouldn’t replace an income, but it’s just as important: If something happened to you, it could pay for necessary help like child care or a housekeeper. There’s no magic formula for how much you’ll need, either; talk to a financial planner or insurance agent about what it would take to cover your important expenses.
Look for level-term life insurance, which is relatively inexpensive. For disability insurance, check with your employer if you work outside the home. Companies often offer it at a reduced rate.
Note: Barring unusual circumstances, you probably don’t need life insurance for your children! No one’s relying on them for income, and kiddie policies aren’t a good way to invest for college (as they’re sometimes marketed). Steer clear.
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com
Posted on Mon, Mar 10, 2008
The health benefits of giving up smoking are indisputable – but you also stand to save a lot of money on life insurance if you kick the habit.
Someone smoking a packet of 20 cigarettes a day could be spending something in the region of $4043 dollars per year — and that doesn’t include the savings on your life insurance premiums.
According to one independent price comparison Website, smokers who give up will be eligible for life insurance premiums at nearly half the cost. Compare insurance premiums for yourself by checking your rate as a non-smoker with Efinancial.
The difference in life insurance premiums between a smoker and a non-smoker is vast and there are significant additional savings to be made simply by shopping around for the best deal to suit your circumstances.
So if you’re keen to give up this year and save yourself some money, now is the ideal time to do it.
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com