Category Life Insurance

Get Life Insurance Free (And Hope You Don’t Need It)

girl at chalkboard - life insuranceMassMutual, one of the largest life insurance companies in the world, is offering $50,000 worth of free life insurance to working families with children.

Called the Lifebridge program, the 10-year term life policy is issued in the name of one parent or guardian. If that parent dies during the term, the money is placed in a trust to be used for the education of the children. Covered expenses include books, tuition, fees, and room and board. The types of schools covered include pre-school, private school, trade school or college. The children have until 10 years after the death of a parent or until they are age 35 — whichever is later — to use the money.MassMutual introduced the program in 2002 because many low-income families need life insurance, but can’t afford it...

Read More

The Secret 770 Account: What It Is, Why You Should Have One

excited business woman happy...

Shutterstock

For at least the last few years, the Internet has been abuzz about the “secret 770 account” that you simply make a part of your investing strategy. Well, it’s not a secret — but it should be in your portfolio.

In this case, “770” refers to the section of the tax code covering funds inside a life insurance policy. Using the tax code to name a type of account is common: Think of the 401(k) and the 1031 exchange.

Whole life insurance has been used for generations by corporations and dynasties to grow money safely, securely and in a tax-favored environment.

I was taught by financial gurus 25 years ago that you never put any money into a whole life insurance policy, and that theory is still being taught by some big names today...

Read More

How to Pick the Right Life Insurance Policy

Young family at home.  Mother (20s) holding baby (8 months).  Father out of focus, paying bills in foreground.
Getty Images

Dear Dave,

I’m 24 years old, and I have a wife and child. We’ve been following your plan, and I’m about to buy life insurance. Should I get a 20- or 30-year term policy?

-Derek

Dear Derek,

I think the big question is how long will you need this life insurance. If you and your wife are planning on having more kids in the next 10 years, I’d suggest a 30-year policy. That could put you in a situation of being 34 years old with a new baby. That’s not old by any means, but your wife will need 20 years’ worth of coverage if this happens, because you’d want the kids grown and out of the house before the insurance term runs out.

But that’s just one of your financial goals at this point. You also want to be debt-free.
adsonar_placementId=1505951;adsonar_pid=1990767;adsonar_ps=-1;adso...

Read More

8 Ways to Game a Life Insurance Exam and Get a Better Rate

BA9GBE Doctor with a blood pressure monitor

Alamy

Putting the doughnuts away and hiding the cigars won’t likely help much if you’re already an obese smoker trying to save some money when applying for a life insurance policy. Insurers can require applicants to take a health exam that includes blood work and a urine sample, giving an accurate picture of a potential customer’s cholesterol level and if they have nicotine in their body.

For healthy life insurance policyholders, the differences in annual premiums can be hundreds, and possibly thousands, of dollars when compared to what people who smoke, drink to excess, are obese or otherwise unhealthy pay for the same coverage.

Unless you think far enough ahead — at least a few months, if not a year — before applying for life insurance coverage and lose weight in a healthy method over ...

Read More

Desperate for Cash? Tap Your Life Insurance Policy

Title:        Family on the beachImage #:     76120021License type:     Royalty-freePhotographer:     Pascal BrozeCollec

Getty Images

As a responsible young adult, you bought a life insurance policy to protect your family in case you died. But that was a couple of decades ago — and you’re still paying an annual premium. Now your situation has changed, and it may be time to re-examine some old decisions. For example, maybe your spouse passed away so you don’t need to provide for him or her, and the kids are doing very well on their own, but your cash needs are starting to become a concern. That life insurance policy is a financial asset that you can tap for cash — but you need to consider the consequences.

“Using that life insurance policy as a financial instrument can cover living expenses, nursing home care or other expenses,” said Amy Danise, editorial director of Insure.com, an insurance resource.

Three...

Read More

Indexed Universal Life Insurance: A Rip-Off with a Fancy Name

%image_alt%

Getty Images

How would you like to put money into a financial product that lets you benefit from market gains, but never feel the pain of its losses? The money and growth inside the policy will be 100 percent tax-free for life. That’s the seductive pitch often used to tout an investment called indexed universal life insurance.

Based on that sales pitch, it would be no wonder if your response were, “Sign me up for that right away!” Unfortunately, all that glitters is not gold. The sales materials for your IUL policy will almost always be illustrated with unrealistic compounded rates of return. But as we all know, stock market growth does not simply compound over time...

Read More

9 Reasons You Should Take Another Look at Whole Life Insurance

Document of Life Insurance Policy and calculator, for background

Alamy

Just a few short years ago, I was staunchly opposed to whole life insurance, because that’s what I was taught by national “gurus” 25 years ago. I wholeheartedly believed (as many people still do) that if you need life insurance, you should buy a term policy, then take the difference in premiums between whole life and term and invest it in mutual funds.

So when a good friend of mine sat me down and tried to show me a whole life insurance plan, I nearly refused to listen. Many of you reading this will feel the same way, and nothing I say will change your minds. That’s fine — you’re entitled to your opinion just as I was entitled to mine.

Thankfully, my friend showed me how a whole life insurance policy works...

Read More

More Than Half of U.S. Households Lack Life Insurance: Survey

Lynette Khalfani-CoxMore than half of all American households don’t have life insurance, potentially jeopardizing millions of families’ financial security in the event of a loved one’s death.

According to a survey from LIMRA, a financial services industry group, the percentage of U.S. households with life insurance coverage stands at the lowest level in 50 years. LIMRA reports that only 44% of U.S. households own an individual life insurance policy, which gives a cash payout to one’s beneficiaries when a policy holder dies.Unfortunately, the recent economic recession has taken a toll on family budgets, and life insurance is one item that’s been sacrificed as people struggle to make house payments, keep up with medical bills or pay credit cards and other debts.

The sad reality, though, is that by forgoing life...

Read More

4 Personal Financial Planning Musts for Dads

Father
Alamy

Hey, dads: You know that “World’s Greatest Dad” T-shirt you sport every Father’s Day? Well, you deserve it! You not only work hard from 9 to 5 to provide your family with a good life, but also dutifully slog through your honey-do list and coach the Little League team.

In return for the love your kids will show you this Father’s Day, give back to your family by implementing these four financial planning musts.

1. Review Your Insurance.

It’s important that you maintain an appropriate amount of life insurance. That way if something happens to you, your family’s future financial needs — like living expenses and college costs — will be adequately covered.

Your employer may offer you life insurance as part of a group plan...

Read More

‘Dear Mom, I Wish You’d Had Life Insurance’

Brittney Lacombe / LIFE
Brittney Lacombe / LIFE

I live in St. Petersburg, Florida. On May 8th, 2011, my mother, two younger sisters and I drove to a local campsite for our annual Mother’s Day camping trip. When we arrived, my mother said that her foot was bothering her. We thought maybe she had hit it on something, so we didn’t think much of it. But that night, the pain got so bad she couldn’t stand it. She called 911 and an ambulance took her to a hospital.

The doctors thought she had cellulitis, a blood infection, and wanted to keep her overnight to make sure the infection didn’t spread. We brought her presents and balloons to the hospital, to celebrate Mother’s Day. At 9 p.m., visiting hours were over. We said goodbye and went home, planning to come back when visiting hours started again at 7 a.m.

Brittney Lacombe
Brittney ...
Read More