I have some Life Insurance, but will I be able to buy more later if I develop a medical condition?
Posted by: BeamaLife Editor on 30 May, 2009
It depends on what the medical condition is. Your opportunity to obtain additional life insurance later in life will depend primarily on your health. A life insurance company will also consider your age, occupation, whether or not you smoke, any dangerous hobbies, and the amount of insurance you want. If you’re healthy, the life insurance company will most likely accept your application. However, regardless of your health, the older you are when you apply, the more expensive the coverage will be.
If you have a health problem, the insurance company might do any of the following:
• Issue the policy with standard rates, which indicates that your medical condition does not make you an above-average risk
• Issue the policy for the amount you wanted, but charge a higher premium
• Decline to offer you coverage
Life insurance companies will also consider your occupation and hobbies. In the rare case where an applicant has a hazardous occupation or hobby, such as race-car driving, the company would probably issue the policy but give the customer the choice of either excluding the hazardous activities or paying a higher premium.
The insurance company also looks at the amount of insurance you’re applying for based on your income and net worth. If it seems excessive to the underwriters, you’ll have to explain to them why you need that amount.
Special policies are also available for people with serious but not terminal illnesses. The policies have a graded death benefit: If you die of an illness in the first three to five years, your beneficiaries are paid a percent of the benefit. If you die from an accident, typically the full death benefit is paid. These policies are expensive but have a cash value benefit. The coverage provided can offer some peace of mind.
Of course, there’s always the chance you won’t be able to get more life insurance if you develop a serious illness. If you think you’ll someday have a family and will need more life insurance not only for protection but also for savings aspect, it’s a good idea to buy life insurance now while you’re healthy and young
Three Ways To Turn Today’s Down Market To Blessing For Estate Planning!
Posted by: BeamaLife Editor on 13 May, 2009
A down market can mean tough times and the loss of value of investments, but it can also present unique opportunities to minimize property transfer (gift and estate) taxes. While owning assets that are losing value might seem like a bad thing, it may actually be a great time to reduce your taxable estate by giving those assets away. That’s because current low asset values and interest rates enable you to make gifts at a lower gift tax cost. When the market rebounds, those assets will be growing in your next generation’s estate and not in yours. Following are three gift-giving techniques that take advantage of today’s depressing economic climate:
1) Basic gifting: You can give away up to $13,000 to anyone you want, to as many people as you like, each year gift-tax free. This is known as the annual gift tax exclusion. You can give away twice that amount (split gift) if both you and your spouse make the gifts together. And, you can give away even more if you pay tuition or medical bills on behalf of another person (you must make these payments directly to the school or health-care provider).
2) Family loans: You can lend money to your children at the current IRS minimum interest rate, and then forgive an amount equal to the gift tax exclusion each year (the gift tax exclusion amount is adjusted annually for inflation; $13,000 is the figure for 2009).
3) Grantor retained annuity trust (GRAT): A GRAT is a trust into which you put assets that you expect will increase in value over time. The value of the gift is determined using the IRS’s current interest rate. The trust must terminate at a specified time for example 10 years. You receive annuity payments during the term of the trust, and at the end, your children receive the property. Hopefully, the assets will appreciate beyond the IRS’s interest rate, allowing the excess to pass tax free.
These great strategies, and others, can turn this current economic downturn into a mixed blessing.
Please call (877) 972-3262 now for your Estate Plan and Pension Plan.
Will my children receive money from “Social Security” when I die?
Posted by: BeamaLife Editor on 5 May, 2009
It depends on how old your children are, and how long you’ve worked in a job where you’ve paid Social Security taxes.
As per Social Security Administration when you die, your children must be age 18 or under (19 if still in high school), and unmarried. In addition, you must have earned at least six Social Security credits, also known as quarters of coverage. You earn credits by working in a job where you pay Social Security taxes on your earnings. Because you can earn only four credits per year, you must have worked at least a year and a half to earn the required number of credits.
To find out if your survivors will be eligible for benefits based on your earnings record when you die, you can order a Social Security Statement from the Social Security Administration (SSA). You can do this by calling (800) 772-1213 or by visiting the SSA website at www.ssa.gov. The statement will also tell you how much your survivors could expect to receive, based on your current earnings record. Another option is to use one of the SSA’s benefit calculators, available online, to estimate benefits available to your survivors.
The best way to plan is to have a solid life insurance protection so your loved will be taken care even though they don’t get any social security benefit.
