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 Are The Taxes Associated With Life Insurance Policies?

Currently, there are two major benefits associated with life insurance policies. One benefits the policy holder and one the beneficiaries of the policy. Policyholders that have cash value policies will be relieved to know that any gains they make in their policies are currently tax- free. Beneficiaries that receive a lump sum payment from an [...]

Can A Person Use Their Funds Of An IRA, KEOGH, Or Other Defined Contribution Plan For Viaticals Of A Life Insurance Policy Investment?

It is recommended that an individual seek the advice of a Certified Public Accountant before making any decisions regarding investing their retirement or pension funds. There are numerous viatical investment settlement companies who advertise to consumers to invest their IRA and other tax deferred retirement funds into viaticals. They are not required to give tax [...]

Is The Cash Value Of My Insurance Policy Exempt From Bankruptcy Proceedings Or Subject To Claims From Creditors?

The cash value of a life insurance policy can not have a lien placed against it by a creditor. Although, it is considered an asset when applying for a home mortgage and can be considered reserves. Many home-buyers will use the value of the life insurance policy to satisfy the minimum cash reserves required by [...]

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 [...]