Life Insurance Beneficiary Different Than Intended Recipient?
Question by Rich N | Posted in Insurance
In order to protect integrity of life insurance proceeds in the event of my death, I changed the beneficiary from my wife to my brother. Reason: wife suffers from alcoholism and addiction and I worry funds would go to the wrong things, rather than to her good upkeep and the care of our minor child. My brother (sister as secondary beneficiary) has agreed, with witnesses, to dole out the money so that use is more "accountable". My query now: Does this arrangement cause severe problems with taxes, etc? Would he be "gifting" my wife regular money, causing tax issues, etc?
Answer: You need to set up a Trust. Define it in your WIll. Then make the life insurance beneficiary the Trust. Your brother might encounter problems and blow the money. Your siblings could pass away and their children would then get the money. The life insurance beneficiary would be: 100% to "Jones Irrevocable Trust" ... and the trust would be for the benefit of your daughter's care and education with the remainder going to her at, say age 30. Your brother would be the Trustee.
You could also have the Will establish a Trust upon your death. The trust does not need to exist or have anything in it until your death. Spend $300 on an attorney and do this right.
Son Killed By Lightning, Was 6 Days Short Of The 2 Years Needed For Life Insurance At Work. Is There A Chance?
Question by Troy S | Posted in Insurance
I have worked there for 25 years. I am a major part of this company. My son had been there part time for two years and full time for 6 days less than two years. I think if the insurance won't pay because of the lack of 6 days then the company should do something. Am I wrong? The company is private and does about 20 million annually. I have given more to that company than anyone else there. I think the company should step up and show some integrity. The company hasn't done anything outside of telling me that he didn't qualify for life insurance.
He wasn't killed on the job. He was camping at Pomona Lake in Kansas. He was only 20 years old. My heart is torn.
Answer: I'm sorry for the loss of your son.
If he had to be on the job for 2 years before he could be covered by group life insurance, then the six days won't matter to the insurance company. The rules are the rules as far as the insurance company is concerned.
BUT, the waiting period may have been set by the company, not the insurance company. You can talk with the owner of the company to see if he will at least pay for the funeral. They may do that as a gesture of good will.
But there is nothing you can do to force the employer or insurance company to pay anything.
If the Insurance company was to pay the death proceeds on a policy which did
Is This Is Good Or Bad But I Don T Have A Spouse Yet Should I Get It?
Question by KEVIN | Posted in Insurance
It say Getting married and starting a new life as a couple is an exciting time.We understand the inclination to put off life insurance. "It s boring and morbid. "It 's hard to understand. I'm young and healthy, I'll get it later." "It's expensive. "Or maybe your're making do with insurance you already have. But protecting your new spouse and your future plans is critically important. So you'll be relieved to know that the TIAA-CREF Life Insurance Company [TIAA-CREF Life] makes the process simple and easy to understand. We'll concisely and clearly explain everything you need to know about life insurance- what it is, how it works, how much you need. Our expertise doesn't
Answer: Life insurance should only be used to replace the income you currently make for anybody important in your family. If you are not married and have no kids, then you don't have much of a need for it.
Once you have a family that begins to depend on your income for survival, then its an excellent time to buy it.
It is insurance you buy that pays you for living longer. The clincher: You have to make to 80+ for it to pay off. Statistically speaking, a 65-year-old male will live on the average of 82 and a 65 year-old female will live on the average of 85. Metlife, Hartford, Integrity and New York Life offer it. Hey its an investment.
Answer: If 65-year olds have an average life expectancy past the age of 80, then the premium you pay for this insurance must be higher than the payout you receive if you survive past 80. Otherwise the insurance company is certain to lose money.
Insurance companies are not in business to lose money. That means this insurance will cost you more than it will pay you if you pass 80. It also means you are guaranteed to lose money.
As an investment, its a sure winner for the insurance company and a sure loser for the insured.
I have heard a lot of reasons to not work with Primerica, but I have not heard mention of any other companies that provide all of the resources Primerica provides in one place, within one company.
I agree their insurance is higher than other term life insurance companies, but according to term4sale.org, the difference is about 20-30 per month for equivalent coverage amounts. So I personally would not mind selling an insurance that cost more, if my client was properly compensated in the event of a spouse, or childs death.
I also found out that Primerica was among a few of the only companies that paid their claims during the World Trade Center Incident, immediately
Answer: Other than the fact that they are, as you suggested, overpriced, the problem with Primerica is not their products; it's their methodology. Primerica is nothing but a multilevel marketing racket. Rarely do their agents get any significant level of training; and when they do, it's other poorly or incorrectly trained Primerica agents providing that training.
Also, while their term products may be fine, term is all they sell. They'll try to tell you that it's because term is all anyone should buy. While permanent life insurance is appropriate only in specific instances, it is an absolute necessity in those instances. To fill a permanent need with temporary coverage, or to provide
Questions and Answers with Integrity Life Settlements
A life settlement would be done instead of surrendering the policy (or lapsing it) to the life insurance company (and for more money than would have been received by surrendering it). How is a Life Settlement different from a Viatical Settlements. The sale of a life insurance policy on the life of a senior (generally at least 65 years old) into a secondary market, for a lump-sum cash payment in excess of the cash surrender value. Although they are often used interchangeably, a Viatical Settlement technically refers to the sale of a policy where the Insured is terminally ill and (regardless of age) has a life expectancy of less than two years....
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