What is a life insurance surrender value?

It is most typically the cash value associated with a policy.

Are life insurance policies considered liquid assets?

Anything that can be turned in to cash directly is considered liquid. So, if they have cash value, they may be considered a liquid asset.

What does it mean when a life insurance policy is paid up?

This means no more premiums are owed. The policy will remain in force until the contract expires, or you do.

Is life insurance still valid after a divorce?

Insurance contracts are property, and as long as they are paid will still be valid. Who owns the policy and who it benefits are questions we can help you with, but probably involve competent legal consultation.

Can you get life insurance on an ex husband or wife?

If they are insurable, and consent to the policy, yes.

Does a beneficiary override a spouse?

The named beneficiary will be the sole recipient of your policy. You might inquire with a competent attorney if you believe this will become, or is a problem. From a practical standpoint: No one overrides a spouse, especially if she is your wife!

Do you get money back if you cancel a whole life insurance policy?

If you had a cash value to the policy, it is possible; otherwise, probably not.

Can you cash out a whole life insurance policy?

Maybe. There are almost certainly tax consequences you would want to discuss with an accountant.

What happens to term life insurance if you don't die?

If you never die you are immortal, and you don’t need insurance. If you live longer than the term of your insurance, and don’t renew or modify the policy, the contract will end. Congratulations, you didn’t die!

Are life insurance premium payments taxable/tax deductible?

Not typically. An accountant may be able to show you a way to do this.

How many times my salary should my life insurance policy be?

Many insurance advisors and brokers would recommend six to ten times the individual’s annual salary. That is a large range, and in some cases the number will be smaller or larger. This is completely at the discretion of the individual, as part of considering a complete financial picture.

Can you borrow against the cash value of a life insurance policy?

You may, in most cases, be able to borrow against a policy’s cash value. However, you must pay this money back, with interest, or it will be treated as ordinary income and taxed.

Is a whole life insurance policy an annuity?

No, the two are fundamentally different. An annuity is primarily a conservative savings vehicle for investments. Both policies deals do deal with risk, but that’s mostly where the similarities end.

Does universal life insurance have cash value?

Typically a universal life policy does accrue a cash value over time.

How many years does long term care insurance cover?

That completely depends on the client, and how long of a contract they are looking to secure. A term can range from 1 year to 100, and any year in between. Different companies offer different products and renewal options. There are plenty of customizable features in term insurance.

What happens if I never use my long term care insurance plan?

Well, that means you stayed healthy enough to never need it. Congratulations, you are one of the few individuals on earth who was able to age without expensive professional expertise and daily medical care.

What is hybrid long term care insurance?

These are policies that may offer a living benefit, such as long term care, in addition to life insurance protections, or other specialized products. They may involve unique funding solutions.

Is long term care insurance tax deductible?

This depends on if you itemize your tax deductions, and whether or not your medical expenses exceed 10% of adjusted gross income (AGI).

Can I deduct long term care insurance premiums on Schedule C?

When a corporation provides coverage as part of an executive, or other, benefit program the premiums can be deducted on Schedule C in most cases.

What is not covered by disability insurance?

Every policy covers certain potentials and possibilities. Everything not listed is not covered. Please read our article on Disability insurance and The 6 Activities of Daily Living to learn more.

Disclaimer: All content provided is for informational purposes only. This is not legal or financial advice and no guarantees or warranties are provided with regards to the accuracy of the content on this page and this website. If you need help or advise, please consult a legal or financial professional. Partners Richmond cannot be held liable for any claims, losses or other implications if you choose to use this information as advice. You agree to use this information and any acts thereupon solely at your risk.

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