Home » Finance » Insurance

Life Insurance to Meet Your Very Specific Needs

May 31, 2008
When most people set out to buy life insurance, they choose either a term or cash-value policy. But policy choices and strategies are much, much more diverse today. Here are some strategies to consider..

L0WERING THE COST OF INSURANCE

*Combination of term and cash-value policies. Buying both types of policies is ideal when an individual or family wants a large amount of coverage and the savings benefit of a cash-value policy, but can't afford the high premiums.

Owning two types of insurance can work for first-time insurance buyers - or when owners of an existing cash-value policy want more coverage, but at an affordable price.

*First-to-die policy. Dual-career couples save 20% in premiums by buying one first-to-die policy, rather than two separate policies.

How it works: Death benefits are paid upon the death of the first spouse.

First-to-die policies can be cash-value or blended policies. Be sure the savings feature is worthwhile for your needs and that the policy's interest rate is favorable.

ESTATE PLANING

Life insurance can protect heirs in the event of death of the breadwinner and can help them pay estate taxes.

*Second-to-die policy. When one spouse dies, federal estate taxes are avoided because of the unlimited marital deduction. The death of the second spouse is another matter, and estate taxes can run as high as 55%. A second-to-die policy is indirectly used to pay the estate taxes due when the second spouse dies.

Important: Neither spouse can own this policy, or enjoy any of the powers of ownership, such as the right to change beneficiaries, The policy must be in the name of an heir or trust, which must also pay the policy's premiums.

*Credit shelter trust. This is to protect the lifetime exclusion of the first spouse to die, which is $1,000,000. A credit shelter trust is often used when an estate exceeds the exclusion.

Strategy: Name the credit shelter trust under your will as the beneficiary of your life insurance, or the surviving spouse may be able to disclaim proceeds into the credit shelter trust. Assets avoid taxes in both spouses' estates and are still available to survivors.

OTHER SITUATIONS

*Cash-value insurance policies offer protection against creditors in many states. Check with your lawyer or accountant. Another way to protect assets from creditors is to have a trust own your cash-value insurance policy. Trusts are untouchable when creditors seek assets.

*Funding divorce commitments. A spouse negotiating for alimony may want to have that covered by a term life insurance policy on the paying spouse. The beneficiary should own the policy to maintain control.
About the Author
Ranju is an assistant of Carson Danfield, is an "Under the Radar" Internet Entrepreneur who's been quietly selling various products for the last 8 years.

Want to learn more about Life Insurance? Be sure to see what Carson Danfield reveals at http://info5000.com/INSURANCE/
Rating:
Please Rate:
(Average: Not rated)
Views: 138
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources