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General:
Life insurance is a very important way to protect individuals and families
from a financial disaster in an unexpected event of losing their loved
ones.
The US senate has recognized the life insurance as one of the most important
financial tools to protect the American families, therefore it passed
many acts that give huge tax and other benefits to those plans. The lawmakers
recognized that it is better to encourage families to purchase life insurance
plans. They decided to waive any taxes on life insurance benefits vs.
use federal aid funds for uninsured families in need.
Under the Insurance ACT that the senate passed, life insurance companies
can offer qualified saving accounts and other products with huge tax benefits
under the life insurance umbrella.
For Israelis who plan to purchase a life insurance in the US:
Many Israeli families and individuals are qualified to purchase a life
insurance contract in the US. The most common factors that affect the
qualification process are:
Citizenship and immigration/visa status.
Gender
Age
Life style
Smoking, drinking and use of drugs.
Medical and family history.
Residency in the US: time already been in the US and future plans.
Assets in some cases.
Criminal and traffic records.
Minimum requirements for Israelis to apply for life insurance in the
US:
Must have Social Security Number
Must have a bank account in the US
Must be a resident of the US for a certain time.
Must be a US citizen, Green Card holder or a hold a legal visa to stay
in the US.
Israelis that carry life insurance contract in the US for over 2 years
(3 years in some states) may keep it even if they choose to leave the
US at a later time.
Types of Life Insurance:
Term life insurance
This is the most common policy and the cheapest of all.
Insured are covered for certain years on a certain dead benefits. There
are no elements of saving and disability within this policy. The beneficiaries
will get the benefits upon the insured death without paying any taxes.
The minimum benefits available are 50K for kids and 100K for adults.
It is common to purchase Term contract for 10-30 years, with an option
to continue and be insured until the age of 95-100 without proof of insurability.
This policy is recommended for people with responsibilities for a certain
time. Such responsibilities may be:
Give the family 5 years of lost income
Pay mortgage balance
Pay debts (car loans, student loans, credit cards balances).
Pay college tuition for all the kids until graduated.
Term life insurance with cash back.
This Term policy pays all the premiums back (without interest) to the
insured if he/she alive at the end of the term.
The cost is about 15% more than the simple Term Life policy.
Capital Term
Term Life insurance plan to age 100 with significant advantages:
1. Option to increase the protection amount at the 3rd, 6th and the 10th
year without proof of insurability.
2. The premiums on the 3rd and the 6th yeas additions are calculated based
on the original age of the insured.
3. Option to purchase monthly income for the beneficiaries on top of the
death benefits. A sample would be income of $5,000 / month for 10 years.
Universal Life
Universal Life Insurance is a flexible-premium, adjustable benefit life
insurance policy that accumulates account value.
As with all life insurance, the main purpose for buying a Universal Life
insurance policy is the death protection provided to your loved ones at
your death.
Benefits of Universal Life
1. Flexibility -- You decide how much life insurance you need -- and subject
to certain requirements and limitations, you can adjust the death benefit
and premium payments to fit your changing needs
2. Tax-Free death benefit -- Under current tax laws governing individual
life insurance, life insurance proceeds are generally income tax free
to the beneficiary
3. Tax-Deferred account value growth -- Your policy's Account Value earns
interest at the company's current interest rate -- federal income tax
deferred.
Whole Life Insurance
Permanent life insurance coverage for as long as you live and continue
to make timely premium payments.
With level premiums and the accumulation of cash values, whole life insurance
is a good choice for long-range goals. The guaranteed cash values can
provide money later on to help with temporary needs or emergencies
Variable universal life insurance?
Variable universal life is a flexible premium life insurance policy,
which provides life insurance protection with long-term investment growth
potential of the policy's account value. You may increase or decrease
planned periodic premium payments, skip premiums or make additional premium
payments within limits. You may also increase, subject to insurability,
or decrease, within limits, your coverage without having to purchase a
new policy.
What are the basic benefits of variable universal life insurance?
Variable universal life insurance offers the following benefits:
· Financial protection for your beneficiaries against your premature death.
· Opportunity to allocate your net premiums among a variety of investment
options.
· Federal income tax deferral on any growth in the policy account value.
For more information and free consultation please contact:
Amir Mushkat - licensed life insurance agent in the US
Phone: 301-816-9079
E-mail: amushkat@myrealbox.com
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