CiberQuotes

Life Insurance Types

The financial problems solved by life insurance

Life insurance is not just one product but rather an assortment of different products. To understand how life insurance products can be used, you should work with a financial professional to identify the problem or the risk you face without life insurance. The problem to be solved by life insurance can be many.

Some of these problems are not having enough cash to pay expenses which can reduce or eliminate the amount of property that is passed on to your family.

 

Business owner’s life insurance products

Many business owners face the risk of working an entire lifetime to build a business empire and then not having enough cash to pay death taxes, attorney fee, accountant fees, administration fees, appraisal fees, business valuation fees and other death generated expenses. The illiquid nature of business interest and real estate portfolios are one of the major and obvious reasons to use life insurance products.

Another set of problems solved by life insurance products are leaving a cash fund or income to replace the earnings after the family breadwinner dies.

Debts are another problem face by many people with a mortgaged home or business property. Most people will want their family to have a house they can call a home and have the associated living expenses paid if they were not around anymore. Life insurance products can provide a cash fund to pay off debts. Other life insurance products can be set up to provide income for ongoing living expenses.        

 

Wealth transfer life insurance products

Wealth transfers from one generation to another can be costly because of taxes and other expenses at death. Life insurance products can be set up in a manner that avoids federal and state taxes, probate cost, attorney fees and other expenses making it an efficient wealth transfer and wealth creation tool.

The only boundaries to problem solving with life insurance are the professional advisors imagination, creativity and ethical attitude.

 

Determine the life insurance solution

The most important thing the insurance advisor must do is match your problem (a need for life insurance products) to the problem. If life insurance is found to be the best vehicle for solving one or more problems in a cost efficient way, after review the no-cost or less costly alternatives, you must then determine what the specific life insurance ownership and beneficiary strategy would best meet your needs. You must determine which type of life insurance product to use and how much is needed. And finally, identify the company or combination of companies that can fulfill the life insurance products that are needed.

 

 

 

Whole Life Insurance

Whole life insurance is a type of policy characterized as having guaranteed cash values, guaranteed death benefits and guaranteed premiums. Dividends, a unique feature of participating whole life insurance may be used to decrease premium payments and increase the scheduled cash surrender value and death benefit.More..

Index Life Insurance

Index Universal Life Insurance offers the opportunity to build cash value accumulation by linking potential increases to the cash value accumulation account to one or more stock market indexes..

Term Life Insurance

Term life insurance is one of the most cost effective safety nets available to you. And life insurance is the only investment that gives nearly instantaneous access to large amounts of cash just when it is needed by your loved ones most. No other investment makes such a guarantee.

Universal Life Insurance

Universal life insurance offers you the flexibility of deciding the amount of premium you would like to pay. What’s more, universal life insurance offers the opportunity to build cash value that you can access for future use on a tax advantaged basis.

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COMMON NEEDS FOR LIFE INSURANCE

  • Make sure cash is available
  • Provide income
  • Pay debts
  • Create a large cash fund
  • Pay taxes
  • Run a business
  • Replace valuable employees
  • Hire and retain employees
  • Gifts to children or grandchildren
  • Gifts to charity
  • Gifts to persons of great importance in your life
  • Preserve the confidentiality of financial assurances to significant others