Millions of Americans give their financial support to charitable organizations every year. In addition to donating to good causes during their lifetimes, there are ways for the philanthropic to continue to help a charity of choice, even after death. In fact, any type of life insurance can be altered or designed with this in mind.

Using Life Insurance as a Charitable Gift

One of the simplest ways is to ‘gift’ a life insurance policy. Doing so will mean that the charity receives the total amount of the policy proceeds upon the death of the holder, and further advantages are that it will substantially reduce estates taxes and income taxes. So the not-for-profit organization receives the full benefit of the policy.

Making the life insurance policy a gift will only cost slightly more for the holder (and the additional premium amount can be partly claimed back in tax over the ensuing years). Gifting a policy may be a good way of disbursing monies from a redundant life insurance policy; where the finance which was required and planned for when the policy was taken out is no longer needed.

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Even though the recent tough economic times have made it hard for most Americans to think well about their financial situations, they haven’t put aside their life insurance plans. Many policies are now cheaper than they’ve ever been and many investment losses in portfolios can be written off.

Even though many people buy life insurance in connection with major life events such as births or marriage, many people don’t take the time to evaluate their policies on an annual basis. Because of this, people are paying more for life insurance plans than the same or similar plans that are currently available on the market.For example: Norman Melnick, one of the creators of the Magic Marker, was overpaying his life insurance coverage by over $4,000 a year. Over ten years, Mr. Melnick would have saved $54,336 in premiums to receive the same exact coverage!

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Having your own business can be a complex series of ups and downs and provide you with a wide range of emotional situations. This becomes even more of a dynamic when you have a partner in the business. You have to be aware of what would happen if one of the key members of your staff (including you or your partner) were taken out of the picture.

Key person life insurance can provide coverage that will ensure protection for any business, regardless of size or complexity. Taking away key personnel from a small business can be every bit as devastating as a large corporation losing lead persons. Having a key person life insurance policy in place will allow for an infusion of cash in the event that the key person, covered under the policy, dies.

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Life insurance comes in many varieties and coverage levels. Being able to add onto your insurance policy is one of the most important options you can have. But remember that adding extras for your life insurance policy will almost assuredly add to your overall monthly premium cost. If you need the extra coverage – and you can afford to do this – the coverage is usually a good value. Some extras that are most popular with policy holders can include some or all of the items listed described below. Life insurance companies offer these extras in an effort to provide the most comprehensive coverage plans for you and your family.

The Waiver of Premium Extra Explained

The waiver of premium option allows you to skip premium payments for a specified time for reasons such as injury of illness. Even though no premium payments are being made, the coverage is still in effect – even for other family members. Another extra along these lines is the critical illness cover which takes effect in the event of a critical illness such as cancer. Part of the maturity amount of the policy is paid out in a lump sum to help with medical services or drug plans.

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Whether you’ve just gotten married, thinking of starting a family or planning for your retirement – you’ve probably given a thought or two to purchasing life insurance. In order to financially protect those we love, it becomes clear that buying life insurance is the best way to prepare for the inevitable. Whether you want to take care of your funeral expenses, pay off the balance of your mortgage or plan for the financial security of your spouse and family, having a good life insurance policy in place will provide much more than just peace of mind.

Best Ways to Save on Life Insurance

Some things to keep in mind when buying life insurance can include the amount of coverage you need. Most industry representatives suggest purchasing five times your annual salary in life insurance. This will help to cover many costs of your estate and ensure that your family maintains their level of financial security.

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