Life insurance
Tuesday, May 6, 2008 | | |Life insurance provides a financial benefit to a family of the deceased or other designated beneficiary, May and specifically to provide income to the family of the insured, burial, funeral and other expenses finale. Life insurance policies often allow the possibility of having the proceeds paid to the beneficiary in a lump sum cash payment or an annuity.
Annuities provide a stream of payments and are generally classified as insurance because they are issued by insurance companies and regulated as insurance and require the same type of actuarial expertise and investment management assurance that the life requires. Pensions and pensions that pay a benefit for life are sometimes regarded as an insurance against the possibility that a retiree would survive its financial resources. In this sense, they are the additional life insurance and, in a shooting, are the mirror image of life insurance.
Some life insurance contracts accumulate cash values, which May be taken by the insured if the policy was delivered or that May be borrowed against. Some policies, such as pensions and staffing policies, are financial instruments to accumulate wealth or liquidate if necessary.
For more information: Life insurance
In many countries, such as the USA and the UK tax legislation provides that the interest on that value is not taxable under certain circumstances. This led to the widespread use of life insurance as a tax efficient method of savings and protection in the event of premature death.
In the USA, tax on interest income on life insurance policies and annuities is usually delayed. However, in some cases, the benefit arising from a deferral of tax May be offset by a weak performance. It depends on the insurance company, the type of policy and other variables (mortality, back in the market, etc.). In addition, other tax savings on income vehicles (for example, IRAS, 401 (k), Roth IRAS) May be better alternatives for the accumulation of value. A combination of low-cost life insurance and a higher return tax-retirement account May achieve better return on investment.
Annuities provide a stream of payments and are generally classified as insurance because they are issued by insurance companies and regulated as insurance and require the same type of actuarial expertise and investment management assurance that the life requires. Pensions and pensions that pay a benefit for life are sometimes regarded as an insurance against the possibility that a retiree would survive its financial resources. In this sense, they are the additional life insurance and, in a shooting, are the mirror image of life insurance.
Some life insurance contracts accumulate cash values, which May be taken by the insured if the policy was delivered or that May be borrowed against. Some policies, such as pensions and staffing policies, are financial instruments to accumulate wealth or liquidate if necessary.
For more information: Life insurance
In many countries, such as the USA and the UK tax legislation provides that the interest on that value is not taxable under certain circumstances. This led to the widespread use of life insurance as a tax efficient method of savings and protection in the event of premature death.
In the USA, tax on interest income on life insurance policies and annuities is usually delayed. However, in some cases, the benefit arising from a deferral of tax May be offset by a weak performance. It depends on the insurance company, the type of policy and other variables (mortality, back in the market, etc.). In addition, other tax savings on income vehicles (for example, IRAS, 401 (k), Roth IRAS) May be better alternatives for the accumulation of value. A combination of low-cost life insurance and a higher return tax-retirement account May achieve better return on investment.
Nice post. Life insurance is a very essential policy that every person opt for. It becomes extremely necessary for all those who are sole bread winners fro their family. But there are so many people who don't think it is worth to buy. People like you who do spreads awareness by sharing information are doing doing a great job, I do appreciate all of them.
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