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?
Life Insurance Benefits
Benefits of Life Insurance Explained
Term Life insurance benefits are many. In addition to tax benefits, different policies have different benefits that are unique to that type of life insurance. This is why it is important to research all your options when choosing a life insurance policy. The number of variables is a reason to consult a professional life insurance agent to help you find the policy and the benefits that fit your personal situation.
The biggest benefit for life insurance policies are tax benefits. The IRS will be more than happy to take your money upon your death if you do not plan carefully for the execution of your estate. Any premiums that you pay are usually before tax contributions, meaning that there are no taxes due until your policy is cashed in at the time of your death, or in some cases if you take any money out with a term or universal life insurance policy. This life insurance benefit is the single most important and fiscal responsible reason to find the life insurance possible that is best for your situation.
If your estate is substantial there can be serious tax issues for the beneficiaries of your life insurance policy. Once your estate exceeds the tax exemption clause in the tax policy your taxes due will be taken out of your estate and can be very substantial. It is a sad fact that if you do not plan for your estate, your children or other heirs will not get anywhere near to what you believe you are leaving behind. Fortunately, a surviving spouse is much better protected than your heirs. There is usually no tax, or very little tax assessed to your spouse when he or she collects on your life insurance policy. So, at least you have the peace of mind of knowing that your spouse will be taken care of in your absence.
Different types of term life insurance policies have different tax consequences. This is why it is important that you investigate your life insurance options that come with each policy. Consulting with your life insurance agent, and if your estate is large, a consultation with a tax attorney will help you to choose the right life insurance option for your situation. You want to do everything you can to take advantage of your life insurance benefits if you don’t your heirs will pay the price.
Many different policies, like whole life or universal life also offer the life insurance benefit of being able to borrow against the cash value of your life insurance policy. This life insurance benefit can give you piece of mind that you have a safety net in place to help you in times of emergency. Knowing that you have that life insurance benefit can make you much more protected against hardship during your life time.
Another life insurance benefit with whole life insurance and universal life insurance is that you policy can and probably will act as an investment. It is historically accurate that the stock market has always gone up over time. While this is true in the long run it is important to understand that in the short term you are more vulnerable to the possible volatility of the stock market. In some cases you are able to change how the cash value of your life insurance policy is invested and change accordingly to get the best return of your investment.
It is wise to find an insurance agent you can trust, and who is knowledgeable in all your options to get the most of your life insurance benefits. There are a lot of life insurance benefits if you are careful to make the best decision when choosing your life insurance policy. There are some insurance agents out there who are more concerned about their commission than with your best interests.
With the possible tax liabilities associated with your policy and your estate it is also important to see a tax attorney or an estate planner. These professionals can be a valuable resource to help you understand all the life insurance benefits that are available for you to take advantage of, not only for you, but for your theirs as well.Get a quote now!