Term Life Insurance Q&A
- Why should I choose BeyondQuotes?
- Which companies do we represent?
- Is BeyondQuotes licensed where I live?
- Is my information confidential?
- Do you only offer rate quotes?
- How do we choose which companies to represent?
- How much Term Life Insurance do I need?
- What are "level" policies?
- What should be the term length?
- Is it worth insuring my spouse on my policy?
- Can you explain the difference between Term and Whole Life plans?
- I suffer form a pre-existing condition. Can I still be insured?
Applying for a Policy
- How do I apply for Term Life Insurance?
- How do I find the best value plan for my needs?
- What is the waiting period between applying and coverage?
What Kind of Benefits Does Life Insurance Provide?
Life coverage benefits
When you start the search to find a good life coverage plan, there are several things which you need to take into account. Each policy is specifically designed to cater to different sections of the audience. You should learn about the underlying benefits of each policy before looking to invest money in it.
You can always take the services of a professional agent to find the right plan at affordable rates. The idea is to get more benefits without spending extra money on it.
Life insurance tax benefits
The biggest benefit that you will find with any plan is the tax benefits. Your policies are not taxed until they are cashed in at the time of your death or if you borrow money from it (such as a universal or term life plan).
If you do not plan the execution of your estate carefully, the IRS could take your money. It is the most important one to consider and it makes finding the right policy for your needs a fiscally responsible decision.
If there is a substantial estate
The beneficiaries who have a substantial estate could find their loved ones facing tax issues when the life insurance policy is cashed in. If the estate exceeds the tax exemption clause, then the taxes due will be taken from the estate. This is why it is important to plan your estate properly in order to use the benefits completely.
The heir could receive nothing by the time your estate is settled if the policy is set up properly. It is better to name your surviving spouse as beneficiary in the policy as there is little to no taxes assessed when they are ones collecting the proceeds.
You need to make sure you understand the benefits associated with the plan. An agent can help you work in conjunction with a tax attorney to make sure you get the right policy for your individual needs.
You want to take advantage of these benefits or else your family could suffer when you are gone.
Life insurance loan benefits
You can also borrow money against your insurance policy. This provides a type of safety net if you need money in an emergency. If you run into a difficult time in your life and you are the holder of a whole life or universal life coverage policy, you can borrow against that money to keep yourself from falling into debt due to a hardship. Many people opt for this type of policy simply because of the type of benefits it has to offer.
Life coverage as an investment option
You can also use these policies as an investment tool. With the stock market fluctuating the way it is, you are vulnerable to the volatility of the market. You need to check with the agent to gather useful information on how your policy works and what are the benefits you can get out of it. There is a system to how things work when it comes to life insurance products.
You need to do business with an agent who is not only concerned about his or her own vested interest. It would defeat the whole purpose, to say the least. He should be the right person to do the job. If you make your decisions wisely, you will be able to use the benefits to advantage.
How a good agent can help you?
A good agent will be able to walk you through this step by step so that you can protect yourself and your family upon your death while utilizing all of the benefits the policy contains.
Don’t forget to utilize the services of an estate planner and tax attorney when you are setting up your life insurance in order to get the maximum life insurance benefits afford to you. They are a valuable resource and they will make sure that you and yours are well taken care when they have to cash in the policy.