Tax Free Retirement IRS 7702(a
Most people believe that life insurance is there to provide death benefit when someone dies. While that still is true, life insurance today has so many more benefits that weren’t available in years past. Today’s current policies not only will pay death benefit but they also can help you with your healthcare needs or provide you with a tax free benefits if structured correctly. An experienced brokers we can help you select the plan that fits your particular needs.
Term Life- As the name implies, a term insurance policy is good for a specific period of time; that can be one year, 10 years, 20 years or even up to 40 years. Given that you generally need life insurance only until you’ve managed to save up money elsewhere, just pick the term that with the time you need coverage for. If you die during that term, your beneficiaries get a payout, known as the death benefit. If you die after the term expires, there’s no payout.
Return-Of-Premium policy is a term policy where the death benefit is paid out should you pass away. But if you live past, say, the 30-year term, you get all of your money back dollar for dollar. So no matter what happens to you — whether you die while covered or outlive the policy — money is distributed. These policies will be more expensive than a regular term policy.
Living Benefits Life Insurance (Life Insurance You Don’t Have To Die To Use)- This policy is available with term and permanent policies. Life insurance also can help you during life’s most difficult times: a chronic, critical or terminal illness. This help comes in the form of optional riders called Accelerated Benefit Riders, also generically known as Living Benefits. If you are diagnosed as terminally ill (within 24 months), or cannot perform two out of six Activities of Daily Living (ADLs – disability definition), or you experience cancer, a heart attack, a stroke, you can receive a portion of the policy’s death benefit tax-free! It is life insurance that you don’t have to die to use.
Whole Life- A form of life insurance that has a guaranteed level death benefit until death or age 100 whichever comes first. This policy builds cash value which will equal the face amount of the policy at age 100. Under a whole life policy, the premiums cannot be increased.
Universal Life- is a type of permanent life insurance. Form of permanent life insurance with flexible premium, death benefit and cash values. Under the terms of the policy, the excess of premium payments above the current cost of insurance is credited to the cash value of the policy.
Index Universal Life (IUL)- Indexed universal life insurance is a lot like universal life insurance, however, it does have a couple of differences not found in traditional universal life. An indexed universal life insurance policy gives the policyholder the opportunity to allocate cash value amounts to either a fixed account or an equity index account. Indexed policies offer a variety of popular indexes to choose from, such as the S&P 500 and the Nasdaq 100. Indexed policies allow policyholders to decide the percentage of their funds that they wish to allocate to fixed and indexed portions. Also, these types of universal insurance policies typically guarantee the principal amount in the indexed portion but cap the maximum return that a policyholder can receive in said account. These policies are used as a tool for retirement planning. Most people aren’t aware that life insurance can positively impact their retirement plan. The right insurance broker can structure a plan correctly where it will help improve your financial situation.