2007-01-13 12:34:56 · 7 answers · asked by tink 2 in Business & Finance ➔ Insurance
term insurance... the earlier you do it, the lower your premium rates will be. Go with the longest term you can but at the same time set up a 401K or other tax deferred plan to build your own portfolio. Imagine have $1 million while you're alive to live on the interest and then pass the million to your heirs???
2007-01-13 12:40:38 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Actually...you can currently pass $2 million onto your children without inheritance tax. The answers so far are completely incorrect. That amount increases until 2010 when it hits its horizon and goes back to to $1.5 million...the levels in 2000. So not to worry about THAT issue.
SInce you dont know WHEN you are going to die...you MAY want to consider a permanent policy. The younger you are that you buy it...the less expensive it will be over your lifetime. But it really depends upon your financial universe...and budget of course. I would talk to a qualified agent from a strong company like New York Life or Northwestern Mutual. They can help you to determine that.
SInce you are creating an "instant estate" it is also advisable that you speak with an attorney for some trust work. Although the beneficiaries are named on a life policy so therefor no probate, it's important that you look at ALL your assets to maximize estate distribution at death.
If you have any other questions feel free to visit my 360 and leave a message...Good Luck!!
2007-01-14 04:07:48 · answer #2 · answered by City 2 · 0⤊ 0⤋
Well i am not sure of the best way to buy life ins but i do know is when you give your heirs 1 million dollars make sure that you give it to them when they turn 40, put it into a savings account, then when they turn 30 or 40 they will recieve that money because they your heirs will become lazy and they will not work or do anything and will not be succesfull but if they have to wait they must support themselves for a while.
2007-01-13 20:42:10 · answer #3 · answered by Anonymous · 0⤊ 2⤋
FOR STARTERS- your heirs/kids will have to pay inheritance tax on anything over a value of 650,000.000 so that would be a bummer for them. What my parents did to achieve the same affect for us/ minus having to pay the "tax" they got 500,000 life policies,bene's as 1/2 and 1/2 to myself and sisters, and they have opened 2 passbook savings account that have their names w/ ours on them. they keep the books, make deposits as they choose, etc. and when the unfortunate time comes, it will all go through probate. Another option they did was purchased bonds, etc- not very much interest gain-but- they also just keep a firebox for each "heir" that they put cash directly into weekly. They are kept in a seperate garage off the house and we have a copy of they key. so when the times comes- the cash will be just that. If they happen to cash in a bond or cd- the sometimes choose to take the cash out and put in the box as well. Now a days there are very few "policies,bonds, etc" that will pay much interest rates blow- so just gather as much as you can in cash- andlife policies are the second best.
2007-01-13 21:39:30 · answer #4 · answered by KATHEYCARCRASHER 2 · 0⤊ 0⤋
You need to set up a trust with a well known company that specializes in setting up trusts and wills. Make sure you do your homework and check out the company very well before you do anything with them. There are many insurance agents out looking to make that commission and will tell you what you want to hear. A investment company with a good track record is the way to go.
2007-01-13 22:11:19 · answer #5 · answered by wds 2 · 0⤊ 1⤋
Education plans offered by insurance companies , what they do is that they make you pay every month or lump sum which forces you to save up until the kids are old enough for university or school thats sorts.
2007-01-13 20:49:29 · answer #6 · answered by cinabolic 3 · 0⤊ 0⤋
Go talk to an independent agent, and get some life insurance quotes.
2007-01-13 20:43:48 · answer #7 · answered by Anonymous 7 · 0⤊ 0⤋