Acquisition of Life Insurance Dr. AA Neidermeyer

Why Purchase Life Insurance? Estate Creation Taxes Business Transfer College Fund Loan Settlement Hiring Funds Replace a Gift Peace in the Family

Who Should Own the Policy? Given the changing landscape for estate planning, it appears to be best if the designated beneficiary or beneficiaries own the life insurance policy. This ownership technique allows, under current tax law, for the direct tax-free flow of the entire policy benefits to the beneficiaries.

How Much Insurance Is Necessary? Easy Dink Non-working Spouse Thorough Analysis

Easy Determination Purchase life insurance equivalent to seven to ten times your annual gross income.

DINK Method For individuals in the double-income with no children, the general suggestion is to purchase life insurance equal to one-half of the total household obligations plus the cost of the funeral. This technique means you cover your economic portion of obligations.

Non-Working Spouse Coverage for the spouse not currently working outside of the home should be equal to $9,000 or $10,000 times the number of years until the youngest child reaches the age of 18.

Thorough Approach Conduct a detailed analysis of total present and continuing family financial requirements. Once done, determine the necessary life insurance coverage on the member(s) of the household which would enable the remaining members of the household to continue as if nothing, economically, had happened.

Getting The Best Rates No tobacco use for the past 4 years No more than 3 moving traffic violations in last 3 years No DUI convictions 140/90 or below blood pressure w/o meds Weight within company chart range No more than 1 death prior to age 60 from heart disease or cancer in immediate family CHOL/HDL at <5

Questions for the Company What are your preferred rates May I purchase a low- load policy How many companies are in your database How frequently do you update the database What profile questions do you pose May I speak to a licensed agent How many applicants qualify for your best rates Handling of appeals

Finding an Insurer Web search: Telephone access term

Type of Life Insurance to Buy Term: No Cash Value One or Multi-Year Level or Decreasing Renewable or Convertible Whole Life: Cash Value / Investments Whole Life Universal Variable

Life Insurance Contract Features Beneficiary designation Settlement options Grace period Non-forfeiture options Loan provisions Assignment options Policy reinstatement options Alteration of policy options Disability clause Multiple indemnity clause Suicide clause