Life Insurance:
Following my last post, I briefly discussed some information regarding annuities, what they are, and how they work. My focus of this post is to briefly discuss the same topics but with life insurance.
A life insurance policy insures that at the time of death of the policy holder's beneficiaries are paid out form the funds that were invested in the policy. There is also two different types of life insurance: term life and permanent life.
Permanent Life is a policy that can last an entire lifetime while gaining cash value and not being subject to a market value assessment (MVA)- aka taxes. <----Yes this is legal. This is something you would want to discuss with your financial planner or insurance agent for more information.
Term Life can be applied for a "term" such as 10, 15, or 20 years. This still carries the same affordable protection, but allows for more flexibility with accessing/withdrawing the funds. This plan relies heavily on activities of daily living (ADL's) to determine eligibility.
There usually is no premium limit on life insurance. Smaller companies will require home office approval on anything over $750,000, but most cases are approved.
As this is a complicated subject with an array of policies and options! Throughout this course, I will break down the different options in more detail!
Have a great day!
-Brady
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