1 / 15

Life Insurance

Life Insurance . By Brittany Thornton & Mulenga Hibbert. What is life insurance ? . Definition : Insurance that pays out a sum of money either on the death of the insured person or after a set period . People Purchase life insurance because…. Top 6 Reasons To pay funeral expenses.

suchi
Download Presentation

Life Insurance

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Life Insurance By Brittany Thornton & MulengaHibbert

  2. What is life insurance ? • Definition: Insurance that pays out a sum of money either on the death of the insured person or after a set period.

  3. People Purchase life insurance because…. • Top 6 Reasons • To pay funeral expenses. • College funding • Replaces spouse income • 4 To pay off debts • To pay off estate taxes • Buy out business partner

  4. What is a beneficiary ? - A person who derives advantage for something; esp. a trust, will, or life insurance policy{Wikipedia} The beneficiaries are usually children, charities or businesses, and parents

  5. Term life insurance is…. (Also known as term assistance) is life insurance that provides coverage at a fixed rate of payments for a limited period of time, the relevant term. {Wikipedia}

  6. Term life insurance Advantages Disadvantages You have to die to get money. • guarantee that your estate is not depleted by estate taxes if you have large land. • Finance your funeral • Term life insurance offers death benefits for a specific number of years. • Term policies usually offers converting the policy within a set amount of time.

  7. What is whole life insurance? Whole Life Insurance- is a life insurance policy that remains in force for the insured's whole life. (Wikipedia) Also known as whole life assistance, ordinary life insurance, and straight life insurance

  8. Universal life insurance •   Type of permanent life insurance, primarily in the United States of America. • Under the terms of this policy, the excess of premium payments above the current cost of insurance are credited to the cash value of the policy. (Wikipedia)

  9. Permanent Life insurance Advantages Disadvantages Premiums are high It can take a decade or so before a permanent policy's cash value catches up to the premiums you've paid • Ensures that you have coverage for your entire lifetime • Useful for high earners who max out other tax-deferred savings http://money.cnn.com/2010/03/15/pf/insurance/permanent_life_insurance.moneymag/

  10. *Differences*

  11. What are the different types of permanent policies? • Whole Life insurance has death benefits and a savings component. • Universal Life insurance is less expensive than whole life insurance because it guarantees less but it is more aggressive. They can also use savings towards paying other insurance coverage. • Variable life insurance offers life insurance protection for the duration of your life including equities. The value of ones policy rises or falls with the value of underlying investment choices.

  12. What is the death benefit/face value of a life insurance policy? • It is the amount of money the benefiter get from the death benefits.

  13. How does Cash value work? • A portion of each premium pays for the insurance costs. • The insurance companies operating costs and profits is paid by another portion. • Last the remaining money goes toward the policy’s cash value.

  14. Value upon cancelation of policy • Improperly cancelled life insurance policy leads to taxable income.

  15. Factors to consider in determining the amount of life insurance coverage needed • The value of your belongings • The value of your house and how big it is. • If you can afford life insurance. (you need a job) • Who are your benefactors.

More Related