Forums » Life Insurance


Basic needs for Life Insurance

    • 144 posts
    March 1, 2014 8:32 AM IST

    Insurance Agent:

    • An insurance agent or sales agent is a person who is authorized by an insurance company to represent that insurance company in its dealing with applicants for insurance.

     

    Personal Needs Met by Life Insurance Products:

    • All life insurance products provide a monetary benefit if the insured person dies while the policy is in force.
    • Some types of life insurance policies provide an accumulated savings value while the insured person is still alive.
    • Common needs that life insurance benefits can meet include funds to cover final expenses, dependent’s support, education costs, and retirement income.

     

    • Final Expenses and Estate Planning:

     

    a)      When a person dies, an executor or administrator is typically appointed to settle the deceased person’s estate.

    b)      The estate consists of all things of value - the assets – owned by a person when he died.

    c)      These assets include cash, bank, investment accounts, real estate, and ownership interest in a business.

    d)     An individual who wants to ensure that his estate will be settled in accordance with his wishes will develop a plan called an estate plan.

    e)      Life insurance is often an important component of an estate plan.

     

    • Dependent’s Support:

    a)      A major selling point for life insurance is that people have a need to provide financial support for their dependents.

    b)      Life insurance can provide funds to support the family members until they obtain new methods of support or until they adjust to a lower income.

    c)      In addition, the proceeds of a life insurance policy can be supplemented the family’s income.

    d)     A policy beneficiary who receives policy death benefits is not required to pay income taxes on the policy proceeds.

    e)      This favorable income tax treatment given to life insurance is designed to encourage people to provide for their dependent’s financial needs.

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