In many divorces that include provisions for alimony or child support, it is a common practice to include a stipulation that the supporting spouse should carry a life insurance policy. This can guarantee that the children will still be provided for should the supporting parent die. How long the policy is maintained depends on what the policy was intended for. If it was meant as security for child support, it can be terminated when the dependent children reach the age of majority. Life insurance policies can also be maintained for longer periods of time if the parent so chooses. If life insurance is required to guarantee alimony, it may continue for as long as the alimony payments are required.
When negotiating your divorce settlement, it is important to designate who will be the owner of the life insurance policy. This is a key factor because the owner controls the policy and has the right to name the beneficiaries. One way to insure that the policy is maintained as stipulated in the divorce settlement is to name the custodial parent as the owner of the policy. You can also include provisions in your settlement agreement that if the policy is allowed to lapse or if the beneficiary designation is changed, you or your children would be entitled to part of your ex’s estate equal in value to the death benefit.
For help in obtaining a Life Insurance policy, we at Scurich Insurance can help.
Check us out at www.scurichinsurance.com or call us 1-800-320-3666
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• What risks and events does the policy cover?
• What risks and events aren’t included?
Insured events may include death, diagnosis of terminal or critical illness, a requirement for long-term care, permanent or temporary disability, and accidental death. It’s important to find out exactly what is covered before you sign anything, to avoid unpleasant surprises.
• Can I choose anyone I want, or choose multiple people, as the beneficiary of the policy?
Most people will choose their partner as the beneficiary of their policy. However, it’s usually possible to name more than one beneficiary as long as they have an “insurable interest”, meaning they must suffer emotional or financial loss in the event of your death. Therefore, you could choose to name your children as beneficiaries in addition to your partner.
We can help you obtain a Life Insurance policy today. Please check us out at www.scurichinsurance.com
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As any financial advisor worth his or her salt will tell you, if you have loved ones who depend on your income, a life insurance policy is a must-have. If you were to die, an effective life insurance plan will ensure that all your family’s financial needs will be covered—from the monthly mortgage and utility bills to your child’s college education. Without life insurance, your family could find themselves in dire straits if something happened to you.
Unfortunately, this advice often falls on deaf ears. In 2008, 68 million Americans still did not have any life insurance, according to the Life and Health Insurance Foundation for Education. On top of that, most people who do have life insurance don’t have enough coverage to fully support their family.
If you do not own any life insurance or have minimal coverage, here are three things you might want to consider:
1. Everyone needs life insurance.
Many people mistakenly assume they have no need for life insurance because their children are grown and no longer require financial support. What these people don’t realize is that life insurance coverage can be used for much more than supporting their loved ones.
For example, the payout from your life insurance policy could be used to cover your final expenses, including medical bills, estate taxes and funeral expenses. Considering that the average funeral costs $10,000 or more, do you want to leave this heavy financial burden on your loved ones’ shoulders?
You can also designate life insurance proceeds to help fund a grandchild’s college education or even donate them to your favorite charitable organization.
2. Three times your income may not be enough.
Some people say the best way to determine the amount of life insurance coverage you need is to simply multiply your annual income by three. However, this amount may not be enough. What if your spouse who is unable to work lives many more years after you die? Three years worth of income will not be nearly enough to support your spouse for another eight, ten or even 20 years.
This is why many professionals say the “three times your income” method is not always a good rule of thumb. Figuring out the right amount life insurance requires a comprehensive evaluation of your financial goals, debts, investments, lifestyle and habits.
3. You’re never too old to buy life insurance.
Many seniors believe they are too old to worry about life insurance because they no longer have loved ones relying on their income. But once again, a life insurance policy can help cover your final expenses after you die so your family is not left with the bill. Before you discount life insurance, it’s important to know all the facts. These valuable insurance policies can protect your family’s financial well-being, pay off your final expenses and even fund a loved one’s home purchase or college education.
Of course, whether or not you qualify and how much you will pay for life insurance depends on your age, health and the type of insurance you want to purchase. If you are considering buying life insurance, you may want to meet with a financial advisor or insurance agent, who can help you determine how much and what kind of life insurance you need.
One thing is certain: everyone should consider purchasing life insurance. After all, your family’s happiness could depend on it.
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Whenever I hear about the deaths of celebrities like Heath Ledger and Brad Renfro, my first thought goes to the children they left behind. I pray that the surviving parents have the strength to help their children through this. I also hope that the celebrities listened to their financial advisors and arranged for trusts and Life Insurance.
Most of us can only dream of earning the kind of money these celebrities make, but events like these are an important reminder of why every parent, spouse, or adult child with dependent parents needs a solid life insurance plan to cover expenses after their death. Unfortunately, deaths like these are also a reminder that tragedy can strike anyone at any time, famous or not.
How Much Life Insurance Coverage to Buy
The general rule of thumb is that you need a policy that covers five to seven years of your salary. So, if you earn $50,000 a year, you should buy a $250,000 to $350,000 policy. If you have very young children, you may way to opt for a policy equal to ten years of salary as a precaution. Although insurance is designed to cover the salary of the working spouse, many advisors also recommend buying coverage for a non-working spouse. They reason that the working spouse will have to pay for childcare, household help, and other assistance that the non-working spouse provided.
Whether or not you’re a celebrity, Life Insurance is vital to anyone with dependents. Unfortunately, it often requires a tragedy to make us realize that and act upon it. If you don’t have life insurance, research plans today.
Scurich Insurance can help you find the right Life Insurance Policy for you!
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A Health Savings Account (HSA) is an alternative to traditional Life Insurance that offers consumers a different way to pay for their health care. HSAs enable you to pay for current and future health expenses on a tax-free basis, while an attached high-deductible insurance policy protects you against catastrophic expenses.
Here are answers to some common questions concerning HSAs:
Can anyone open an HSA?
To be eligible for an HSA, you must be under 65 years old, and covered by a Qualified High-Deductible Health Policy (QHDHP).You are ineligible if covered by another Health insurance policy (except coverages such as Cancer, Dental, Disability, Long-Term Care or Vision insurance) that isn’t a qualified high-deductible plan.
Where can I open an HSA?
Accounts can be established with banks, credit unions, insurance companies, and other approved companies. Your employer might also set up a plan for its employees as well.
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What is a QHDHP?
To qualify the policy must meet current IRS requirements. For 2009 the requirements are as follows:
- The deductible must be at least $1,150 for individuals or $2,300 for families.
- The annual out-of-pocket expenses cannot be greater than $5,800 for an individual or $11,600 for a family. These figures include the deductible and any co-insurance, but not the premiums.
How much can I contribute to an HSA? What happens to unused funds at the end of the year?
Limits are updated annually by the IRS. For 2009, the contribution limits are $3,000 for singles and $5,950 for families. However, if you are 55 or older, you can contribute an extra $1,000.
The unused balance in an HSA rolls over automatically year after year. You won’t lose your money if you don’t spend it within the year.
How do I receive the tax benefits?
If you have an HSA through your employer, you might be able to make pre-tax payroll contributions. Otherwise, your contributions will be deductible when you file your taxes, even if you don’t itemize. Also, you are eligible to make a full contribution regardless of income unlike IRAs.
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Right now you probably do not have a lot of financial obligations and probably do not need much in Life Insurancecoverage, but you will. Right now you like most 20 year olds are probably burning through enough money in a month in waste spending that you could in fact buy a very attractive WL policy so that when you do need it, you will have it! You will have already accrued much cash value, locked in on a younger age premium and more.
Some more points to consider WL premiums can be structured to go down over time. Term is guaranteed to go up! (For the “buy term invest the difference” crowd) WL has guaranteed cash values the market has NO guarantees! WL has a waiver of premium that says even if you buy insurance today and get perm disabled tomorrow, you will never have to pay your premiums again and the policy will stay in force and the cash value will still grow.
Visit our website today to find out how Scurich Insurance Service can help you with your Life Insurance needs!
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