Archive for the ‘Life Insurance Financial Questions: Taxes, Investments, & Loans’ Category.

10 Tips for Calculating How Much Life Insurance You Need

Once the determination has been made that you need to purchase life insurance, the next step is to figure out just how much you need. While it is true that some Americans are over-insured, more people are either uninsured or under-insured. As you set up your plan you will have to take many things into [...]

What do the letters C.L.U, Lutc, and Chartered Financial Planner Mean in Relation to My Life Insurance Agent?

It all has to do with training. These letters and designations, as well as other letters and designations simply tell you how much training your representative has had beyond the basic required amount of training. The basic training is given to all sales representatives of your representative’s company, but they can take it one or [...]

Can You Borrow On Life Insurance Loans?

Life insurance is one thing that you can borrow money off of. Many people select this option when they are strapped for cash. Some wonder what happens if they do not end up paying back the interest that they have collected on their loan. In this case, the answer is simple. The dollar value of [...]

Is Buying More Life Insurance A Good Way To Make An Investment?

While life insurance is a prudent and essential investment in your family’s future, only an appropriate amount of life insurance is going to be a good investment. You should make sure that your life insurance needs are being properly met, but it won’t benefit you to over-insure yourself. If you’re worried about your perceived discipline [...]

What Is The Outcome If My Loan And The Interest On The Loan End Up Being More That What The Loan Value Is On The Policy?

Generally, your life insurance company will notify you of the issue and inform you that you need to make a payment to reduce the interest on the loan, to bring it back down below the actual value of the policy. If the policy has accumulated dividends, you will be given the option to use these [...]

Is A Cash Value Policy Good To Use As A Savings Plan?

Using a cash value policy is a way to save money but it is probably not the best way. If you have difficulty staying away from your savings account, then by all means, invest extra into this policy for extra savings. But if you can manage your money easily, take advantage of different investment and [...]

How Does Life Insurance Affect My Income Taxes?

As the proverb says, nothing is certain but death and taxes. However, federal income taxes on the death benefit of a life insurance policy are not certain. The beneficiary of a life insurance policy does not owe federal income taxes on the amount paid to him or her as death benefits of the policy. Estate [...]

Can I Borrow From My Life Insurance Policy?

It is possible to borrow from an insurance policy, if the policy has a cash value. The policyholder will be required to pay interest on any money borrowed and the insurance company would set the interest rate. The decision of when to pay the interest, whether monthly or yearly is up to the policyholder. The [...]

What Are Your Options When You Can’t Afford The Premiums To Your Life Insurance Policy With A Cash Value?

In these difficult economic times, many people can not afford the premiums for their life insurance policies. When a life insurance policy has a cash value, there are several options available to the policyholder. One of the most common and often automatic options is for the insurance company to extend term life insurance. The cash [...]

Is Your Life Insurance Paying You Dividends?

When you think about your life insurance policy, you probably think about the money that you have to pay in premiums in order to keep your policy. It is simply a fact of life that you will have to pay each month for the policy; however, some policies pay you back a little back. The [...]