Category Archives: Insurance

Crummey Trusts

Everybody knows we should do this, but nobody does it. In order for an insurance policy to be estate and income tax-free it must be placed inside an irrevocable life insurance trust, know as an ILIT. If the IRS does … Continue reading Continue reading

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Last Will and Testimony As Opposed to a Life Insurance Policy

You may know it as a ‘will’, in legal terms though, the paper you arrange before passing on that assigns ownership of your money, property and other types of assets to family members or others is referred to as your … Continue reading

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Mortgage Life Insurance – The Best Approach

Insurance is risk management. So, for each type, you need to identify the risk to cover and the best way to do it. Mortgage life insurance, like other insurance types, could be expensive, so you need to understand that the … Continue reading

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Understanding Life Insurance – The Basics

An important part of life and maturing is considering life insurance. However, before you can get life insurance, you need to understand what is all about. Basically, like any other any insurance, when you take out a policy for yourself … Continue reading

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What Are the Characteristics of Whole Life Insurance?

What are the characteristics of whole life insurance? First, you need to understand what whole life insurance is. This type of insurance provides coverage for the named individual from the time someone opens the policy until the insured person's death. … Continue reading

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Save Taxes – Basics of an Irrevocable Life Insurance Dynasty Trust

For US persons, an irrevocable life insurance trust (ILIT) is arguably the most efficient structure for integrating tax-free investment growth, wealth transfer and asset protection. An ILIT comprises two main parts: (1) an irrevocable trust; and (2) a life insurance … Continue reading

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What is a Common Disaster Life Insurance Clause?

Although not commonly applicable to life claims,  a Common Disaster life insurance clause is provided under what is known as the Uniform Simultaneous Death Law, which is adopted by most states to address the problem of protecting the contingent beneficiary … Continue reading

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Estate Planning: Irrevocable Life Insurance Trust Isn't So Crummey

The tax loophole referred to as "Crummey Power" is named after Clifford Crummey who created a trust in order to transfer his assets with the intention of avoiding estate and inheritance taxes upon his demise. The Internal Revenue Service was … Continue reading

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Life Insurance Beneficiary Tax – The Financial Impact For Your Heirs

First let us look at what benefits you can get from life insurance. It is normally not subject to income tax as well as capital gains tax. A life insurance policy can be designed in different ways. The two major … Continue reading

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Who is a Life Insurance Beneficiary and What is the Person Entitled To?

A life insurance beneficiary is the person you name in your life insurance policy as the person who gets the proceeds of your insurance policy in the case of your death or illness. In a lot of cases, you might … Continue reading

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