Taking care of your loved ones with a life insurance policy is a wise decision. Once you have made the decision to purchase a life insurance policy there are other important decisions which must be made as well. Life insurance is not money to be dispensed at the time of your death only. It is also protection for your assets and for the future of your loved ones.
What purpose does life insurance serve?
Obviously life insurance should bridge the gap between the time of grief immediately following your passing and the return to normalcy. Life insurance planning should provide for this short term need. Life insurance must all safeguard the assets you have acquired during your life and pass on as many of those assets as possible to your estate. Make a list of the assets you have and the needs your family will have after your death.
How to accomplish your objectives
Once you have ascertained what it is you want your life insurance to do you must consider how these targets will be achieved. Most of the time making sure that the needs of your loved ones will be met requires more than just a large infusion of cash. A plan should be in place for the proper allocation of the cash received from life insurance policies. There are also tax ramifications which should be analyzed.
Consult a professional
First and foremost the best advice is to get as many quotes as possible and compare. It is free and you will learn more about life insurance faster. There are many laws, particularly laws concerning taxation, which may eat away at the value of your life insurance. Ways to protect your life insurance are available. Using a trust instrument to receive insurance proceeds is just one valuable tool available for protecting your life insurance from taxes. An insurance professional or an attorney can help you with planning your estate to avoid most if not all taxes on your life insurance policies.
Some exciting news for our Mercury Insurance clients! Mercury customers can visit their Facebook Page to get more details! We’re talking FREE meals and FREE parking! Remember the event is July 14-22 in the beautiful La Costa Resort and Spa in Carlsbad, CA. Enjoy!
It’s hard to imagine someone using the word “free” in the same sentence as insurance, but it does occasionally happen. I’m not talking about the free pen they let you keep after you sign your life away on an insurance policy. What I am talking about is the unseen benefits you may not know you are getting when you sign on with an agency or company. Yes, you pay premiums to keep your home, auto and other possessions protected to prevent financial loss, but you also need to keep in mind some of the other things that are included in the total package.
Some companies give you the basic trivial items, a stuffed duck, a calendar complete with company logo plastered all over scenes of beautiful Southern California or maybe even a fully stocked picnic basket filled with everything you need for leisurely day in the park. Those things are great but when you live in SoCal who needs a calendar full of things you see on a regular basis. An insurance agency that offers you valuable gifts on a regular basis is the one worth keeping.
Let’s face it. Nothing is ever really free. You still pay for your insurance premiums, but it’s the little things an agency does for you that constitute the extra mile they go for you without the benefit of extra compensation. One of the most important “free” things you get is peace of mind. The feeling you have when you know things are being taken care. It’s knowing that when something happens you have a company behind you that is there when you need them. Even at 2 am when you come home to find someone has broken into your home. Your insurance agent is there to help you get through it. Do they get paid for those late hours? Probably not, but they are dedicated to providing the best service possible to their customers. If that means leaving the comfort of a nice cozy bed to be there for one of his clients who is facing a disaster, so be it.
Another “free” perk is an insurance is just as reliable as your mailman. If an insured customer is left str anded in the middle of nowhere in a down pour because his car is stuck or because of an accident, his insurance agent is there with an umbrella and a ride to the nearest car rental place to make sure he gets where he needs to be.
The free pens and promotional gifts are excellent sales tools, but the free things that are important come under the heading of dedicated service and pride in the policies and companies they represent. Your insurance agent is there for you, no matter what, no matter where. Their job doesn’t end when you sign your name to the policy, it’s just beginning.