Posted by As a "battle" on the front lineLife insurance broker, There will inevitably be an important "question and answer session" in daily work to help customers sort out their needs and solve problems.American Life Insurance GuideAfter screening, the editors sorted out the 7 common questions in the minds of consumers who were insured for the first time, and commented on "What to pay attention to when buying insurance"I have answered it, hoping to help readers who have the same questions.
1. Do I have to pay tax on life insurance claims?
从life insuranceClaims paid out of the account are exempt from paying federal income tax, which is commonly referred to as "Life insurance tax exemption"It refers to the exemption of this part of the tax. The inheritance of large-amount policy wealth will involve inheritance tax, but policyholders can avoid inheritance tax in some ways.
caution,American Life Insurance GuideNet does not give tax and legal advice. The above information and the following information are for the purpose of information sharing and knowledge sharing, and cannot be regarded as tax and legal advice.Any questions about the details of these two aspects, please be sure to consult an independent professional.
2. Does my policy have a cash value?
Lifetime American life insurance has a certain cash value.Applying for a lifetime life insurance policy in the United States can be understood as opening a "bank account" with an insurance company.How much and how long to deposit in this policy account is the result of the design of the plan together with our financial adviser or broker.The money in the account is the cash value.
Cash Value Life Insurance Policy (Dividend type/universal type/investment type/index typeOne feature of) is that the cash value inside will be accumulated over time in a "snowball" style, and the increased wealth is tax-deferred.The longer we hold the policy, the more premiums deposited in the policy account, and the greater the cash value.
The cash value in the policy account can be used at any timeWithdrawal of loans*.If you want to settle the death claims in full, then these loans need to be paid off in advance.
*Although it is not necessary to repay the loan, if the loan amount is too large, the policy may lapse due to lack of cash value.
3. How do I withdraw money from the policy account?
If we want to borrow money from the policy account, please contactInsurance companycontact.When the insurance company receives the withdrawal request, we will receive a check or direct electronic payment to the account.The process is very simple.
Since you borrow money from your own policy account, this loan approval process is different from any other type of loan approval process.There is no need to file a loan application or wait for approval from the loan committee at all in this process.However, it must be known that even if you borrow money from yourself, you have to pay a cost-this is the loan interest.
4. In what ways can the money taken out of the policy account be used?
The money taken out of the policy account is a personal asset and can be used in any area where we need to spend money without restrictions.Usually people withdraw money from insurance policies for the following reasons:
- Health or medical expenses
- Child care expenses
- Primary school/secondary school/university tuition
- Pension supplement
- Repay some other debts
5. What are the disadvantages of taking money out of the policy?
First of all, if we borrow money from the policy account, then we have to pay the interest generated by the loan.
Secondly, if the worst happens, you need to pay off the loan in the policy before you can make a full claim.
Finally, the cash value in the policy account is not always available for borrowing in full. Usually, the insurance company will give a cash value that can be borrowed every year.If it was impossible to borrow money from the policy account that year, then we would have to consider other channels to alleviate the urgent need.
6. How do we start the accumulation of cash value?
To start accumulating cash value, we need to buy a copyWhole life insurance,such asUniversal insurance.Dividend insurance.Index insuranceAnd other types of insurance. "Buying American insurance" actually means opening an account, giving us the authority to control the cash value of this account in the future.
Suitable for our insurance types and product selections, and a reasonable plan design, will help us maximize the cash value of our insurance policy account or realize our various needs.
7. How much coverage do I need?
InsurGuru©️ on the American Life Insurance Guide NetworkInsurance CollegeHere, we give the simplest quick calculation method:Insured amount = 10 times the family's annual income.Generally speaking, the larger the insured amount, the more money we can deposit into this policy account.
A more detailed calculation of the insured amount needs to be determined according to our current situation and the actual needs of the family.We can use thisOnline gadgetsTo calculate how much insurance coverage we need, we can also look forProfessional brokerHelp to determine the amount of insurance we actually need.
