Life
Insurance
Life insurance is among the most useful, and most maligned,
of all things that you will ever buy. If properly fitted to your
needs and offered at a competitive price, life insurance offers
important advantages, including:
- income replacement for your survivors
- investment/forced savings for you
- reduced income and transfer tax liability
- a ready source of cash at a time when it's likely to be
needed most
- funding of small business buy/sell agreements
So, if life insurance can offer all of the above advantages,
why aren't there long lines of people outside their insurance
agent's office, demanding to buy more? Probably because people
fear that one or more of following scary things may come true:
- the policy will be overpriced when compared to similar
policies offered by other companies
- the policy will offer poor investment returns
- the policy will not enjoy all possible tax advantages
- the policy will not function as planned to facilitate a
buy/sell agreement
- the policy will be sold by an unethical insurance agent
who will try to sell the individual the highest premium
policy possible, whether it meets the individual's needs or
not
Besides these possible disadvantages, there are some human
factors that also sometimes keep people from buying needed life
insurance:
- by their nature, life insurance policies require current
outlay for an expected advantage in the future (which may
never be seen by the policyholder, only his or her
beneficiaries)
- many people remain uncomfortable about thinking of their
deaths
In order to make sure that you, as a present or prospective
business owner, receive the advantages and avoid the possible
pitfalls associated with life insurance, we suggest that you
look at the following discussions:
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