Life Insurance Lowdown

–By Priya Jestin, Staff Writer

Do you have heavy financial obligations like a big credit card debt or mortgage loan? If yes, then do go out and get yourself a life insurance policy. People with heavy financial obligations can use life insurance to ensure that their debt is covered. Life-insurance death benefits are exempt from federal taxation. So, many financial planners use clients’ life-insurance benefits to help pay for the estate taxes generated upon the death of a loved one.

It is important for you to determine the duration of coverage is important. This will help you ensure that you get the right type of policy for you and also that you keep the premium payments affordable. One way to do this is shop around and get rates from multiple insurance companies. Finally, ensure that your insurance carrier has the financial stability to pay your claim in the event of your death.

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This entry was posted on Saturday, October 21st, 2006 at 11:00 pm and is filed under Tips. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.