Cheap Life Insurance :Life Insurance Planning Strategies
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When considering the purchase of a life insurance policy it’s important to consider some very important options. Such as who is the beneficiary and what does that mean to my estate or tax ramifications. The article below does a great job of walking you through a couple of the issues.
clipped from www.dailyworld.com
Planning vital to insurance strategy
Life insurance can be a valuable tool for individuals and businesses. It may be used to insure the economic value of a person’s future earnings, to pay for needs or obligations arising from death (such as estate taxes), to redeem a shareholder’s interest in a corporation or to fund a charitable bequest.
Choosing the appropriate beneficiary designation is a vital part of insurance planning.
For example, the correct designation should be planned to minimize estate taxes paid on insurance proceeds. In addition, the policy owner can avoid family conflicts by carefully naming beneficiaries. The naming of an immature beneficiary could also result in the mismanagement and misuse of insurance proceeds.
The beneficiary designation lets the owner name the recipient of the insurance proceeds. The beneficiary, not the decedent, controls who receives the death benefit proceeds.
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