Using Life Insurance Wisely
Every family should have a life insurance policy on at least one of the financial providers. A policy should always be in place in case one of the primary breadwinners passes away so that the family will be able to support itself if no other source of income is available after the breadwinner dies. Estate or "Death" taxes can be as high as 55% when the insurance policyholder dies. Many families cannot afford to pay these steep taxes and still maintain the lifestyle that they are accustomed to. Therefore, we have compiled a few tips to help ensure that your family can maximize the benefits they receive from your life insurance policy - and avoid giving so much of it to the government.
First of all, you should know that a portion of your estate will be given to your beneficiaries with a tax exclusion. The number of dollars covered by the exclusion each year varies, but here's a brief overview: in 2004 and 2005, the exclusion was $1.5 million per person. From 2006 through 2008, the exclusion is $2 million, and, in 2009, the exclusion is $3.5 million. The estate tax is repealed for the year 2010, but the tax returns with an exclusion of $1 million in the year 2011. Now, that can get confusing! Because the government can take so much of your estate for taxes, it's important to shield as much as possible with the use of a variety of Trusts.
One such Trust is the Irrevocable Life Insurance Trust, otherwise known as the ILIT. When you establish an ILIT, you will name a trustee to manage that trust. Your trustee can be your financial advisor or a beneficiary. Your trustee will purchase a life insurance contract on your life. Upon your death, the policy's death benefit will provide liquidity of the assets in your Trust.
With your ILIT, you can control how the estate is divided and spent. Having the ability to control your own estate, post-mortem, may prove to be especially helpful if you have young adults who are going to receive a sizeable sum of money. You can, for example, enumerate which funds will be spent for education, which for costs of living, and which for other activities. Thus, you can allocate portions of your estate for any activities you wish. You can also transfer ownership of the life insurance policy you already own.
However, there are complications that may arise from the transfer. You will want to consult a qualified attorney to ensure that you fully understand how the system works. For example, if you die within three (3) years of transferring ownership of your existing policy, the life insurance policy will be taxed as part of your estate. With the right help, figuring out how to handle life insurance (and your estate in general) doesn't have to be difficult or complicated. Consult a qualified attorney for more information on how to set up your ILIT or other Trusts so that your beneficiaries can receive the most benefit from your assets.
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Thomas McNally is the staff writer at the National Directory of Estate Planning, Probate & Elder Law Attorneys. McNally stresses the importance of finding a qualified estate planning attorney to ensure that your estate passes to whom you want, when you want, and is carried out in the manner you've chosen.What is Home Insurance?
Home Insurance is designed to provide you with financial protection against any damage and possible risks that your property and possessions within it may face against unforeseen events and circumstances. Home insurance is commonly taken to describe both buildings insurance, which insures the fabric of your property, and contents insurance, which covers your belongings. Basically it is a contract you make with an insurance company. You have to pay a premium and in return the insurance company will pay for financial losses that are related to your property or your home during the period of the contract. Home insurance, also known as Household insurance or Buildings and Contents insurance, provides protection against loss or damage of your property.
Protecting this investment against fire, flood, theft and other risks is essential to ensure that you have the necessary financial assistance available, so that you can carry on with life. Home or household insurance is designed to protect...
What is Home Insurance?
Insurance > What is Home Insurance?
Personal Liability Insurance Important Considerations
The basic coverage for personal liability in standard homeowners, rental, and auto insurance policies often will not cover high losses of court awarded damages. Additional personal liability insurance will add a higher level of protection. This additional policy forms an umbrella because it covers protection above and beyond standard homeowners and auto policies.
Additional costs will vary with insurance companies, but usually average from $200 to $300 a year for additional protection of 1 million dollars. This coverage may insure automobiles, boats, homeowners, and renters insurance.
Most insurance companies require basic insurance of $100,000.
The insured should ask the following questions:
1. How much do I have to lose?
2. What is the monetary total of my assets?
3. How much would legal fees cost me?
4. Are umbrella personal liability policies which cover one million dollars or more worth the extra premiums...
Insurance > Personal Liability Insurance Important Considerations
What is Home Insurance?
Home Insurance is designed to provide you with financial protection against any damage and possible risks that your property and possessions within it may face against unforeseen events and circumstances. Home insurance is commonly taken to describe both buildings insurance, which insures the fabric of your property, and contents insurance, which covers your belongings. Basically it is a contract you make with an insurance company. You have to pay a premium and in return the insurance company will pay for financial losses that are related to your property or your home during the period of the contract. Home insurance, also known as Household insurance or Buildings and Contents insurance, provides protection against loss or damage of your property.
Protecting this investment against fire, flood, theft and other risks is essential to ensure that you have the necessary financial assistance available, so that you can carry on with life. Home or household insurance is designed to protect...
What is Home Insurance?
Insurance > What is Home Insurance?
No Money Down And High Loan-To-Value Home Purchases
Copyright 2006 Jason P Bertrand
In many cases it is difficult to obtain financing with little or no down payment. The lender will usually look for very high credit scores and a very thorough payment history. In some cases it may be easier than one would think. Twenty years ago it was always a rule of thumb that one needed to put down at least 20% in order to purchase a home. Last year over 40% of home purchases were made at 100% loan to value.
One reason that people avoid high loan-to-value loans is the fact that a lender will require mortgage insurance if the loan-to-value ratio exceeds 80%.
Loan to value is the ratio of the loan in comparison to the value of the home. For example:
Home Value = $100,000
Loan Amount = $80,000
Loan-to-Value ratio = 80%
In this example the loan to value ratio is 80% because the loan amount is 80% of the value of the home. Mortgage insurance is a policy that protects the lender in...
Insurance > No Money Down And High Loan-To-Value Home Purchases
TEN THINGS TO DO FOLLOWING AN AUTOMOBILE ACCIDENT
Copyright 2006 Aaron Sansing
1.
STOP:
If you are able, move your vehicle to a safe place.
Failure to stop may result in criminal prosecution.
2.
CALL 911:
If any party is injured, call 911 and ask for the police and an ambulance if necessary.
3.
TAKE PHOTOGRAPHS: Take pictures of the accident scene, the damages to the vehicles involved, and of any injuries you might have.
4.
DO NOT ADMIT FAULT:
Do not make any statements admitting fault.
5.
OBTAIN DRIVER INFORMATION:
Exchange information with the other driver involved in the accident, including name, address, phone number, driver's license, vehicle year, make, model, color, and license plate number, and insurance information, including company, policy number, effective dates of policy, and telephone number.
6.
OBTAIN WITNESS INFORMATION:
Get the name,...
Insurance > TEN THINGS TO DO FOLLOWING AN AUTOMOBILE ACCIDENT
e-Glue Software Technologies Hosts Continuing Webinars for Insurance Call Centers
e-Glue Software Technologies, a leading provider of call center productivity solutions, today announced that the company will continue its successful Web seminars for insurance call centers. Hosted by Shay Grinfeld, CEO of e-Glue Software Technologies, these informative, complimentary sessions explore a variety of issues, strategies and techniques for increasing efficiency, profits and value in the call center.On Tuesday, December 14, 2004, e-Glue will present "A Gift for 2005 ? Increase Your Qualified Leads" which examines the challenges that insurance call centers are confronted with on a daily basis. As more potential customers and policyholders use their phones for transactions and information, insurance companies must provide a high-touch experience for the caller that is equal to or exceeding a face-to-face experience.
Yet the vast knowledge base of information that varies from state to state, by customer and product creates an extremely challenging environment even for...
Insurance > e-Glue Software Technologies Hosts Continuing Webinars for Insurance Call Centers
New Insurance Plan for Skiers & Snowboarders
SKIER INSURANCE SERVICES1855 Smith Lake Road
Kalispell, Montana
59901
Tel: 406/ 752-5484 Fax: 406/ 752-5839PRESS RELEASEFOR IMMEDIATE RELEASEContact: Ron Iverson800/ 624-0039 or 406/ 752-5484e-mail protected from spam botsCOMPANY MARKETS SEASON PASS INSURANCEKalispell, Montana
October 20, 2003 -- Skiers and snowboarders who buy season passes now have the option of insuring them against loss of use due to sudden injury or illness.
Skier Insurance Services (SIS)
offer SKIER GUARD Season Pass Insurance to cross-country skiers and downhill skiers; coverage may be purchased online at 6% of the pass price for the 2003/04 season.Season passes are an economical way for frequent skiers to pay for their sport.
However, most resorts impose restrictions on passes, making them non-refundable and non-transferable.
A passholder who is injured or falls ill can lose much or all of the use of a pass, which is often purchased well...
Insurance > New Insurance Plan for Skiers & Snowboarders
A Different Light Shed on the Insurance Industry
There's a relatively unknown market in the insurance industry that consumers need to know about.
This is a market where a single agent can offer you multiple choices from multiple companies.
This is the independent insurance agency market.When you have an independent agent (IA) who you know and trust, you shouldn't have to find a new agent again.
As an IA you have the ability to "shop" a customer with numerous insurance companies, finding them the best rate and coverage, so they don't have to.
Imagine what happens the next time the renewal comes on your insurance and the premium is suddenly $500 higher than it was before.
With an IA, all you need to do is call.
They have the ability to try and find a similar policy with another company; you haven't changed agents, given personal information to strangers, or gone through the monotonous task of shopping your insurance.
Instead, you left it to an expert.Depending on the size...
Insurance > A Different Light Shed on the Insurance Industry
'Secret Garden' Restaurant Opening at One of Ft. Lauderdale's 'Best-Kept Secrets'
Ft. Lauderdale, FL (ContentDesk) September 27, 2005 -- Fodor's called it Ft. Lauderdale's "small secret." Frommer's described it as one of the city's "best-kept secrets." Now, The Pillars at New River Sound -- a hotel located a block off Ft. Lauderdale Beach -- is adding its own new secret: "The Secret Garden" restaurant. The restaurant will open in late November, 2005.The restaurant will be a new gourmet option in town ...
but don't call for reservations just yet. It will only be available...
hotels 'Secret Garden' Restaurant Opening at One of Ft. Lauderdale's 'Best-Kept Secrets'
Insurance > 'Secret Garden' Restaurant Opening at One of Ft. Lauderdale's 'Best-Kept Secrets'
You?re Home at the Andalusian Inn in Palm Springs
You're Home at the Andalusian Inn in Palm SpringsRead Jetsetters Magazine at www.jetsettersmagazine.comTo read this entire feature FREE with photos cut and paste this link:http://www.jetsettersmagazine.com/archive/jetezine/hotels/calif/andy/andy.html"You're home now," George warmly said as he greeted us and checked us in. I thought to myself that these were the best words a person could ever want to hear as a romantic Palm Springs weekend getaway is just beginning. After a hard day at work, and...
Insurance patio furniture You?re Home at the Andalusian Inn in Palm Springs
Insurance > You?re Home at the Andalusian Inn in Palm Springs
10 Ways To Find The Best Price On Hotels
Planning a trip has become increasing difficult as there are so many options to choose from. After finding a hotel that suits all your needs you need to ascertain whether you are getting a good rate. When you ask a travel agent or refer to a brochure for rates what you get is the generally quoted rate for room. But if you are wise you can get a better deal and save a lot of money.
1. Surf the net and see what online travel sites like Expedia, Hotels.com, or Travelocity are offering....
Insurance > 10 Ways To Find The Best Price On Hotels
So, Where is the Greener Grass?
Twenty years ago when I left the Ireland, known as the Emerald Isle, I was looking for the place where the grass is greener. We all know that faraway hills are green, and back then I was searching for my greener pastures so I looked faraway.
With a few detours, I arrived in Australia; the Sunburnt country, dry, arid and drought ridden, looking for prosperity. I was looking for the good life of opportunity, beaches, yachts and barbeques.
When I had left Ireland, in...
Insurance > So, Where is the Greener Grass?
Do More With Personal Loans
Experts talk about the luck factor when it comes to achieving what one wants to achieve. But, that aspect comes later in the piece, the first aspect that a person has to consider is the monetary aspect. Money is the first priority that everyone has to take care of, first and foremost.
Since we understand the importance of money we should move in for an option that is likely to give much more than its contemporaries. One option that stands head and shoulders above all the rest is...
Insurance > Do More With Personal Loans
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