Demystify The Myths About Life Insurance

Everyone knows that it is important to have life insurance yet there are certain misconceptions regarding it that change the way one looks at it. This leads to wrong investment decisions. Most of these myths are due to unawareness. You can get rid of these misconceptions if you understand as to what life insurance actually is.

One big myth about life insurance is that it is related to age. Most people think that one should not buy life insurance when one is young. But actually there is no right age to get a life insurance. One is never too young to die, and this fact should never be forgotten. You will most probably die old but then why to take chances. It is very good for youngsters who do not want to spend money on unlikely events. It also decreases the risks. So buy life insurance at a right time, there is no particular age for it.

You need life insurance whether you work or not. It is needed so that you contribute to your family even when you are not there. You love your children and you do not want their future to be insecure. Insurance is must for your childs future.

You must leave behind something for your spouse. It may happen that your spouse outlives you; in that case life insurance can be very useful. You need insurance even if your kids are independent. You need it even if your mortgage is paid off. That is how much important it is to have a life insurance. You may think that your job gives you life insurance and so you do not need another one policy. Well before you arrive to such conclusions you must check the policy which your job provides. If it does not give your family the proper cover that you want, then you must get another policy. A good policy is one which will keep your family happy when you are not there.

You do not need to spend much on buying life insurance policy. The charges are fixed for a particular time and do not increase whatsoever. You have to choose a certain period of time for which you need protection. It could be till you clear all your debts or till your kids grow up. This is called term insurance and you will have to pay fixed premium for that particular time period. However your policy will end if you do not pay the charges. You should not have any doubts regarding this. It is the simplest form of investment which provides long term security to your family.

Time has changed and today you can get insured very quickly. Through the internet it has become possible to be insured in less than a quarter of an hour. All it takes it one login session and everything is done within that, right from getting quotes to getting underwritten.

Life insurance is extremely important and you must realize its importance. Debunk your myths regarding it and get a life insurance today!

Whole Life Insurance – A Premium For Life

Alot of people are still concerned of their spouse and families’ situation after they’re gone. Savings in the bank or even their retirement funds are sometimes not adequate to cover the replacement earnings or expenses of their families after their passing.

For this trouble, there’s a potential solution – permanent insurance. A permanent insurance, also known as cash value insurance, is a form of insurance that lasts until the policy matures. A whole life insurance is a well-defined model as this insurance offers a permanent form of protection for a level premium with a cash value table, meaning to say that this insurance would require a level premium for life, and assures minimum cash value growth included in the policy.

How does it Work?

Essentially under this insurance policy, the insured party would pay a regular premium to the insurance company, in exchange for a guarantee of specified proceeds payable to his or her spouse or the closest relative upon his or her death.

There are by and large two types of whole life insurances; the participating and non-participating insurance. In a participating insurance policy, the insurer will divvy up the surplus profits, known as dividend with the policyholder. And this profit amount is contingent on the success of the company’s performance each year.

On the other hand, non participating insurance policy would refer to the policy in which all the values related to the policy such as death benefits and the premiums are determined at the time of the policy issue, for the life of the whole insurance contract, and can not be modified after that issuing.

Accessibility

This whole life insurance is nowadays a very popular trend, for there are so many companies offering this type of permanent insurance policy on the Internet. Just like a normal whole life insurance policy, an online policy would also cover the insured party at a fixed rate and a permanent premium.

Naturally it appears more costly than term insurance policies, but unlike term policies, which do not have cash, value account, this whole life insurance has a savings account for the insured party, which can be accessed at any necessary time if called for.

In short, this whole life insurance has a great benefit and is very valuable nowadays, particularly with high living costs. This insurance essentially allows for a guaranteed death benefit and guaranteed cash values. It’s essential for anyone who has a family depending on them, and to at least cover their funeral costs, debts, and to replace the lost income.

Why Should You Choose The Principal Life Insurance Company?

In 1879, the Principal Life Insurance Company was established and began trading as an insurance company, with its original name of Bankers life. Its founder was Edward Temple, and back then it began as a very small insurance company, and has become today one of the key recognized organizations in the life insurance industry, building a brand and reputation that many firms envy.

Bankers life resulted from an initial idea and concept by its founder, to produce different insurance products and services for its consumers. This resulted in the company being re-branded and reformed into the Principal Life Insurance company. When Temple set out the objectives of the organization, he established that it would have its foundations on two key principals, which would maintain its existence and positive culture in the market � these were (1) a quality benchmark for its products, and (2) an ability to have the erge to be the best company in the market.

What products do the company offer?

Since its inception, the organization has wanted to maintain a high level and standard of service through the creation, development and implementation of products and services that they offer to both current and potential customers. By concentrating on this company ethos, it has allowed the company to grow from a small firm offering a few products, to a leading organization that is seen by many others as an industry leader. They have outgrown their �childhood’ and have successfully implemented changes that have led to other companies being established within other sectors, such as health insurance, on the same solid ethos and foundation.

This organization doesn’t just offer its company insurance against their life, but offers a range of different insurance policies including health, dentistry, and disability � these are also available for companies and organizations to subsequently offer to their workforce. Additionally, other products are also offered to people that would potentially benefit from their cover, such as traditional indemnity plans and managed health care. As a organization, they do feel that they should be providing the best possible products and service to their customers, and therefore, assure both existing and potential customers that they will gain positive benefits from the terms and conditions of all of their products and services. This approach has resulted in many different satisfied people who have been with the organization for a long period of time. This has had an impact on the continual growth of the organization and has thus resulted in it operating in 9 states of the US.

They help you decide and make your own decision

With the Principal Life Insurance Company being the industry leader in customer service, they want to attract people who want a personal service and therefore offer free personalized quotes for everyone. Once you show interest in the company, you will find that they will go out of their way to assist you and ensure that you have all the relevant information and help that is available. They will review your personal needs and make sure that they can find a policy that is within your budget, but that will also reflect on the needs and requirements that you will have; this is all conducted in a relaxed and non-pressurized way.

If you need to contact them, they are easily available, whether you wish to do this online or off-line, and they offer free online chats or toll free numbers to talk through your own personal circumstance with an advisor; therefore, there isn’t going to be time spent searching around for a number, or time wasted being spent kept on hold or in a queue that you will experience with other similar firms.

Once you become a customer of the Principal Life Insurance Company you will kick yourself for not doing it a whole lot sooner.

What Is The History Of The American Life Insurance Company

The American General Life And Accident Insurance Company, now commonly termed American General, was named so because they offer many different services to millions of Americans. They offer a host of different �general’ life insurance policies, which offer a range of policies to choose, by customers who want to buy a term life insurance policy. Today, more than 4 million people in America actually use American General for an insurance policy or cheap insurance quote, and this includes both personal and business policy holders. The individual cover held by these two parties differs immensely and not just between the two groups. Business terms are much different to personal terms held by the organization.

Is AG stable?

There are indeed many different life insurance companies throughout the US that can offer a life insurance policy such as those offered. Many of these companies also offer great rates and incentives to potential policy holders; however, this doesn’t mean to say that these companies are going to be around for ever � such as the recent injection of capital by the US government into AIG. This did help stabilize the company as a whole, but you should be cautious when looking to �invest’ your money for yourself and your family. You should make a decision on a company that you choose on reputation, but you should also look at their financial rating and status, which will provide you with a current picture of how the market view the company (AIG in this case) and its assets within the larger economy. There are many different independent financial rating watchdogs out there that act as a source for consumers on the financial world.

Some of these top rated companies include Standard & Poors, Fitch Ratings and Moody’s Investors Service; all of these provide ratings on a number of companies which are freely available to the general public. There is also a general system to grade any company that is trading, which has been compared to the American school grading system; A is considered very, very good, whilst F means that the company is in a bad position and it could default �fail’ in the near future � the latter company wouldn’t get my investment, period. The American General Life and Accident Insurance Company has in the past received A++’s and a gold rating, which means that the company is stable; however, the recent intervention by the US government to some companies in this broad insurance market will give some people a hesitant reaction to entering into a �deal’ with such companies.

How did they form?

American General was formed at the start of the last century in 1900, first trading in Tennessee. The original name of the organization was �The National Sick And Accident Association of Nashville,� and for some time many shortened this to the NLT Corporation. Later on, the company decided that in order to grow and establish itself in the market, it would need to parter with another similar firm in the market, and so it decided to establish a joint venture with a Texas-based company called the American General Corporation, in 1982. Since then, the organization has adopted a whole host of different names, whilst acquiring some smaller insurance firms. This has enabled the company to build a growing client based all over the country, with a progression over the last 30 years.

The company is focused on the insurance needs of individuals in the market, and although they do offer services to their workforce, some do consider these �offers’ to not be overly forthcoming. The main direction that the firm has gone in is to establish within the �middle market� (in insurance lingo), by offering term insurance, universal coverage and their trade-marked �Quality of Life Insurance�.

The latter policy above, is a new type of insurance that is offered to the public. This process involves giving money to your family and close ones before you actually die and has become a hit with many Americans across the country. This money paid but will help pay any bills should you come down with an illness, whether this be serious or life threatening. This money would also help should you become disabled during your retirement, or even retire early because of it, and can pay for any assistance that you may need.

How To Get Your Life Insurance Quote Online

Thanks to the internet you can now get a life insurance quotation in a matter of minutes
Just Log on and you have instant access to all the life insurance quotes that you need.

You should never take the relevance of life insurance policies for granted. It is a way of ensuring your familys stability in case something happens to you. That horrible something does not have to be death. Insurance policies also cover terminal illnesses.

Everyone knows deep down that they should take out a policy. If they can afford it they usually do but those on tight budgets make the mistake of putting it off till tomorrow. Still thankfully, the majority of American citizens have life insurance policies.

The other policy procrastinators are, people who are short on time and as a result cannot visit insurance offices and companies. Thankfully, the Internet has made it possible for people to get life insurance quotes online in a matter of minutes.

You will be able to decide where to get your life insurance policy that best suits your and your loved ones needs. First you put in a request for quotes from different life insurance companies. After getting quotes, jot down and compare the deals. You need to compare company rates, coverage and policies.

It is so simple to get a life insurance quote online. Just start by keying in life insurance quote into google, yahoo or msn and you will be presented with dozens of insurance quotes. You will also get links to various online insurance companies. So, requesting for quotes is not actually a huge problem.

Be sure to go deep into the results page and not just the links on the first page of search engine results. This is important as only the biggest players will have links on the first page of google. This does not mean that you will get the best bang for buck. Keep digging down through results until you feel you have exhausted the options.

How do you recognize good best life insurance quotes online?
The first thing you should do is some background checks on the companies with quotes you are interested in. Look for complaints. You want to be sure you are dealing with a trustworthy company.

When you have all the quotes, you just compare one quote from another. Compare the discounts and rates so you can find the most suitable life insurance policy.

Financial Insurance In Canada

Financial Insurance In CanadaIf you’re a Canadian and have been in the workforce for a decade or more, then you know that your income purchases less today than the first year of your working career. Inflation is a part of our society and while our government continues to devalue our money by printing more and more of it, inflation will undoubtedly continue. This is not only a Canadian concern though. All around the world people are feeling the effects of inflation due to excessive money printing; but more on that another time. The long and short of it all is this: YOUR MONEY WILL continue to BUY LESS as the years go by.

A quick 100-year calculation using the Bank of Canada (BoC) inflation calculator showed the cost of a fixed “basket” of consumer purchases in 1915 was $100.00. At the end of 2015 that cost was $2,083.61. More recently, over the last 10 years prices have gone up 18.01%. Has your income gone up by the same or greater?

The answer is probably, No.

Whether you’re a six-figure earner or you make 30k a year, your “money” is losing buying power. There are a lot of ways that you can protect your money from devaluation but we’ll discuss two common options people take.

One option is the stock market; put a lump of your savings into a portfolio and see what happens. Sounds like gambling to me. But if you’re prepared to leave your finances up to other factors (and people) other than your own due diligence, then putting your money into stocks may be a good fit for you under the following two conditions:

You have the stomach for volatility and, Your primary objective is to see a substantial return in a short period of time…hopefully.

Another option, and this tends to be the easiest and most selected, is to open a bank savings account. No hassle involved; just open the account, decide how much you want to save and how often, put it on auto-pilot and watch your savings grow.

Really?

In today’s economy, bank savings accounts are not a viable savings vehicle. Most of the interest rates offered are earning below inflation rates. The sad reality is many savers make a future withdrawal only to realize that thy have lost money on an after-inflation basis.

So, what do you do if you’re not a savvy investor?

Buy financial insurance.

We have insurance for almost every aspect of our lives yet insurance is something many of us hopes we never need to use.

Buying financial insurance in Canada, or anywhere else for that matter, is putting your money into a vehicle that is protected long-term from the ups and downs of the volatile economy.

Buying financial insurance preserves your buying power and provides a hedge against inflation.

The global economy is changing but the only economy that should matter to you is yours.

Universal Life Insurance

Universal Life InsuranceAs providers of insurance and financial services, the experts at World Financial Group must often explain different types of life insurance to current and potential clients so those clients can determine what options are best for them and their families. One type of life insurance that people often have misconceptions about is indexed universal life insurance. Although it is similar to traditional universal life insurance, there are some important differences that insurance purchasers must understand in order to make the best decisions regarding this financial product.

What is Indexed Universal Life Insurance?

While it is a type of universal life insurance, there are some notable differences between indexed universal life insurance and its more traditional counterpart. For starters, indexed universal life insurance comes in different forms than traditional universal life insurance. Universal policies typically offer a choice between variable rates or fixed rates, giving buyers a range of options to choose how much they want to (or are able to) invest in their policy. Indexed universal policies, on the other hand, allow buyers to put funds into equity-indexed accounts, fixed accounts or both. Policyholders can choose from indexes such as the Nasdaq 100, S&P 500 or other popular indexes.

What are the benefits of an Indexed Universal Life Insurance policy?

When clients of World Financial Group or other insurance and financial services companies choose an indexed policy, they have more say in how much of their money they wish to distribute to different accounts. Policyholders can put different percentages of their total investment into different indexed portions, which provides a wide range of investment possibilities. Indexed universal life insurance policies also usually come with a guarantee that the principle amount in the indexed portions of the policy will remain intact, although these policies also typically have a cap on the returns that one can receive from those accounts.

Indexed policies are like a fusion of traditional universal life insurance policies and other types of financial products. Because of this, they are often much more affordable than traditional universal life insurance policies. Although indexed universal policies don’t have the intense management and potential returns of traditional universal policies, they are safer than most forms of variable life insurance. Many of the clients who come to World Financial Group appreciate this. They are often on a budget and have a family to worry about, so they prefer the reduced risk of this type of policy.

Life Insurance Plans for Canadians

Life Insurance Plans for CanadiansGetting joint life insurance can be an easy way to save cost on your total insurance premiums. A joint insurance plan covers two or more people’s lives with only one death benefit payout. Depending on how you set up the insurance you could save anywhere from 15% to over 50% in your monthly or annual insurance premiums.

Before you decide that getting a joint life insurance policy is right for you, this article will explore the pros and cons of buying group insurance. Also discussed here will be the most common uses for the two types of joint life insurance: Joint first-to-Die and Joint Last-to-Die policies.
The Advantages of Buying a Joint Life Insurance Policy

  • Premium savings on a joint policy

If you buy a joint life insurance policy, the insurance company is only liable to pay out one death benefit, even if it is insuring two or more lives. The single payout does reduce the cost considerably on some policies, and can save you a lot of money over the many years you will pay the premium on a life insurance contract. Here is how an insurance company calculates the rates for a joint life insurance plan: A) If it is joint first-to-die life insurance, they will combine the two lives (typically a husband and wife) and come up with one older male client. If the couple were 35 and 33 respectively, the joint policy would be like buying a life insurance contract for a 40 year old man. B) If it is a joint last-to-die policy, the age calculation is for a younger man. Let’s take a husband and wife aged 55 and 54, the joint age would be like buying a policy on a 42 year old man. As you can see, the joint last to die would mean a big savings in premium because the joint age is so much less than the current age of the couple, meaning a much reduced premium cost.

  • Survivor’s right to buy insurance without medical evidence

If one person in a joint life insurance contract dies, the death benefit is paid to the survivor, and then the contract ends. So what about the survivor? Do they still need to keep a life insurance contract? And if so, they are much older now and might have some health conditions making it harder to qualify for life insurance. The good news is that the survivor under these policies has the right to buy their own insurance contract equal to the face amount of life insurance they used to own in the joint policy, without providing medical evidence to qualify for the insurance. Most insurance companies allow you to make this purchase within 30 days of the joint policy being paid out, while a few others are allowing this purchase for 60 days from the end of the joint contract.

  • Double payout for a “common disaster”

A common disaster is insurance industry terminology for both people who are insured under a joint life insurance contract dying within a very short time of one another or from the same event, like a car accident. If both people on the contract died together, or one died shortly after the other, the insurance company assumes that one of the two would have exercised their right to buy an equal amount of life insurance had they lived. Therefore, the insurance company pays out double the original death benefit to the beneficiaries

The Disadvantages of Buying a Joint Life Insurance Policy

  • Marriage or partnership breakdown can carve up a policy

When a married couple or business partnership purchases a joint life insurance policy for risk protection needs, there is a major problem if the union is dissolved. For most insurance companies, the joint life insurance policy will need to be divided between the two parties (ex-spouses). Each can keep half the insurance, but the full amount of coverage they had before is not given to each person. The cost will go up for having two separate policies vs. a joint policy, and if they need to top up their life insurance individually, they will need to qualify medically for additional coverage, plus pay the higher premium as a now older person for the top-up amount.

  • Premium savings on joint first-to-die can be minimal

One of the biggest reasons people buy joint first-to-die life insurance is to save premium vs. two separate policies. Very often the cost of two separate policies can be very close to the cost of a joint first-to-die plan. If the additional cost is only around 10% higher, you can easily be justify the expense by knowing each person has their individual life insurance plan which they own, and will continue on, uninterrupted, if their partner were to die. No reissue of a new policy at older ages, paying higher premiums. No division of the policy in a marriage break-down. Much cleaner and more flexible when unfortunate events happen.

  • No flexibility in coverage amounts with joint life insurance

Very often the amount of total life insurance needed for each person, like a husband and wife, is not the same. If one person is a higher income earner, they will probably need much more life insurance. With a joint policy, both people must have exactly the same amount of coverage. This results in the higher amount of need being the default amount of insurance for the other partner/spouse. If this insurance contract was broken up into two separate policies, and the correct amount of insurance is bought on each person, the total premium could be much less than a joint life insurance plan which is over-insuring one person.

Common Uses of Joint First-to-Die Life Insurance

Most commonly joint first-to-die life insurance is for pure risk protection of a married couple or business partnership. The most common type of insurance is term life insurance for immediate risk protection, vs. long-term estate or investment planning. Once the term need is over, like paying off the mortgage or raising children, the life insurance will probably be dropped. It is not very common for permanent joint first-to-dielife insurance policies to be sold, as the long-term purpose for permanent life insurance is for creating equity as well as immediate risk protection. Usually couples or business partners buy separate policies so each person controls their own cash values and can ultimately accumulate more long-term growth.

Common Uses of joint Last-to-Die Life Insurance

Joint last-to-die life insurance is almost exclusively used for estate planning needs. It generates a large amount of tax free cash at the passing of the last person. In a marriage relationship, the spousal role-over clause in the tax act allows for all capital gains and taxable assets to pass to the surviving spouse and remain tax sheltered until his/her death. Upon the final death, the entire estate and all taxable assets are assessed by the Canadian Revenue Agency (CRA). In order to preserve the estate and possibly create a legacy for the next generation or used for charitable giving, joint last-to-die life insurance is a very useful and cost effective way to provide large amounts of cash flow for the estate. When comparing cost vs. benefit, a joint last-to-die policy can give you the highest guaranteed rate of return for your money in Canada today. The only thing is the payout is not for you – it is for your beneficiaries and your estate.

Life Insurance Plan UK

Life Insurance Plan UKIf you are an in charge person, care for your partner and children and some other dependents you have in your family, you will absolutely would like them to be economically . When you have all your strategy put in place, you require being approximately to employ them and in the event that you are not your dear ones, your family member should not be gone high and desiccated. So if there is one thing you can protect yours and their prospect with, then it is the life insurance straight. Life insurance is the most significant economic instrument you can obtain – it is an investments account, it is an investment choice and it provides protection to all.

Yet life insurance is a severe worry essential of your busy time. Given an unlucky situation, absent just this one characteristic of what’s other solid financial plan can put in economic disorder up to the existence of your survivors. Life insurance London a team of specialized Insurance agent UK. You will get Bright life cover, baby plan, pension plan, investments plan and more plan for your require.

The preponderance of us regard as daily life insurance UK policies as finish look after – cash remunerated out for the life insurer. Our everyday life insurance coverage programs reason to watch you and those adjoining to you for myself. Evaluate Greatest Offer survival insurance strategy from all the maximum daily life insurance business within the British Isles at come out and place the maximum lifestyle insurance policies prices accessible to acquire a top quality.

Insurance Agents are furthermore called Insurance Sales Agents or Insurance Brokers. Such persons obtain up advertising of Insurance policies as a profession. Their occupation portfolio consists of serving potential insurance buyer to select a suitable policy diagram base on their economic requirements. The kind of insurance customers comprise persons, families or businesses.

Insurance Agents might also work separately as an Independent Insurance Agent or be working wholly by an Insurance supplier as a confined Agent. They could concentrate in the sales of an exacting financial product or an extensive variety of products. Captive Agents are allowable to sell insurance harvest of their company only.

The type of strategy plan and life Insurance Agent UK sells could comprise insurance for possessions, victim, Life, Health, Disability and lasting care. Numerous Insurance Agents also sell communal Funds, variable annuity and other securities.

Life insurance agents London could as well be set up publicity extra financial packages such as variable annuities, communal finances and original securities. The opportunity is unbounded and sky is the utmost. The earning probable vary from one reason to one more agent. The additional the agent sells, the further that life insurance agent will obtain. An agent has to be aware of the marketplace situation very well and he or she should be clever to guide the client suitably.

Juvenile Life Insurance

Juvenile Life InsuranceJuvenile life insurance is a flexible financial product that insures the life of a child. It is favored by financial professionals for its unique tax and growth features and it provides cash value accumulation, tax-advantaged growth and guaranteed insurance for life.

  • Cash Value Accumulation

The cash value of whole juvenile life insurance increases by a minimum guaranteed interest rate, plus a non-guaranteed dividend declared annually by the insurance company.

In indexed juvenile life insurance policies, cash value increases are linked to equity indexes with downside protection and non-guaranteed elements that can provide additional growth. Some policies provide for both equity participation and a minimum growth guarantee

Juvenile life insurance is typically funded early in a child’s life, enabling the significant cash value buildup of a policy. With careful planning, by maximizing the allocation of each annual contribution to cash value and minimizing the portion allocated to a death benefit (a circumstance highly unlikely during the first several decades of the policy), the owner is able to leverage the tax-deferred savings of a juvenile life insurance policy.

  • Access to Cash Value

The cash value of a whole or indexed life insurance policy can be withdrawn or received as a guaranteed loan at any time, without a credit check, lengthy application process or lender approval. A policy owner will typically receive the withdrawal or loan amount requested in less than a week, providing an easily accessible source of funds. The policy owner has unrestricted access to the cash value of a juvenile life insurance policy, regardless of the age of the insured, or intended purpose of the funds. If the policy is held in a trust, the accessible cash value can be requested and distributed for any purpose permitted by the trust.

  • Tax Advantages

Juvenile life insurance offers several important tax advantages. The interest and dividend growth of the cash value of the policy is tax-deferred. Only withdrawals that exceed cumulative premium paid are treated as income for tax purposes. A policy owner is able to borrow money from the policy up to the accumulated cash value without any tax consequences as long as the policy remains in force.

A parent or grandparent may use the gift tax exclusion amount (currently $13,000 per donor, per year to any number of recipients) to pay the annual premium on behalf of their child or grandchild.

The eventual death benefit is received by a beneficiary tax-free. If the policy is owned by a trust, the funds are not included in the estate of the deceased for tax purposes.

  • Insurability

Juvenile life insurance secures affordable lifelong insurance coverage regardless of the future health of the child or adverse family medical history.

Juvenile life insurance is generally issued based on a current or recent medical exam. Unlike the medical exam requirement for an adult requesting insurance coverage, a juvenile life insurance policy generally requires only age, sex, height, weight and general health information provided by a doctor or insurance agent.

  • Lower Costs

There is a lower cost of insurance associated with insuring the life of a minor, which allows for a smaller annual premium compared to similar insurance coverage for an adult. In a whole juvenile life insurance policy, the annual premium is guaranteed to never increase, regardless of any changes to the health of the insured.

  • College Savings With a Lifetime of Benefits

Juvenile life insurance is a tax-efficient, secure, growth-guaranteed college savings vehicle.

Unlike traditional college savings accounts and 529 plans, the cash value of a juvenile life insurance policy is excluded from most need-based financial aid calculations.

Life insurance is a stable and well-established tool for lifetime tax-advantaged savings and can be used for purposes other than college education.

  • Estate Planning/Legacy

Estate planning professionals recommend juvenile life insurance for parents or grandparents who seek to maximize the tax-efficient transfer of wealth and leave a substantial legacy for future generations.

  • Privacy

Policy ownership may be transferred to a child any time after he or she reaches the age of majority, although the policy owner is under no obligation to do so. The policy owner can chose when the child will learn of the policy, access its cash value, or take ownership. There is no requirement to disclose the existence of the policy to the insured or any other family member.

  • Asset Protection

In most states, the cash value of a juvenile insurance policy enjoys broad protection from creditors and lawsuits. In a state that lacks asset protection provisions, the policy can be purchased by a trust domiciled in another state.

  • Flexibility

A well-structured juvenile life insurance policy will allow the parent to use the cash value of the policy to make future payments. Typically, after several years no further out-of-pocket contributions are required to maintain a policy. Additional annual contributions will result in greater cash value accumulation.