By admin on February 11, 2012
Life insurance on the partners in a business can be an effective way to ensure that the business survives the partner’s death or disability, retirement or withdrawal, and provides funds to the beneficiaries of the partner.
There are two approaches to who owns the policy, which may have a substantial effect on the surviving partner/shareholder/member. However, the effect on the beneficiaries of the purchase is the same…capital gain accrues to the purchase of the interest in the business.
In the first approach (stock retirement plans), the company would own the policy and would then buy the deceased partner’s interest. Upon sale or dissolution, the partners would pay tax on any profit without the benefit of the increased basis.
In the second approach (shareholder cross-purchase plans), the partners would own the policy and would buy the deceased partner’s interest directly from the beneficiaries. It should be noted that in neither approach is the insurance premium a deductible expense.
Because buy/sell agreements are not simple as they indicate how the business will be valued, it should be in written form, and the use of experienced attorneys is advised. Agreement on the approach to valuation of the company is often revised as the business conditions change.
If, as in some cases, a partner(s) is uninsurable, a sinking fund approach could be used. This is when money is set aside periodically in a reserve account. The balance of this account would be a down payment on the lump sum due upon the event.
Although the loss of a partner can have a devastating effect on the business, as well as the person’s family, life insurance can provide funds which may help those affected by the tragic event.
If you are planning to purchase life insurance, it’s essential to compare term life insurance quotes from various providers. Our site would provide you instant life insurance quotes and also would allow you to compare multiple quotes from top life insurance companies. Just call us at 1.888.583.5070 or fill out the form to the right for a quick quote!
Posted in Life Insurance, Permanent Life Insurance, Term Life Insurance, Term Life Rates | Tagged Business Life Insurance, Buy life insurance online, Cheap Life Insurance, Georgia life insurance, Georgia Term Insurance, Online Life Insurance, Police Officer Life Insurance, term life insurance |
By admin on February 2, 2012
We now offer the best of both worlds with Transamerica Life Insurance Company’s new TransTerm portfolio. TransTerm is a Universal Life insurance policy that offers initial cost-effective term-like level premiums with the guarantee and flexibility to transition to lifetime coverage.
TransTerm blends the basic characteristics of level term insurance with the guaranteed protection available with No-Lapse Universal Life. It offers competitively priced protection, along with the guarantees and flexibility to transition to lifetime coverage.
Whole life insurance is what most people generally think of when they consider purchasing a life insurance policy. This type of plan provides coverage throughout an individual’s lifetime. You will pay premiums for the duration of your coverage. Premiums will increase your cash value; you can then withdraw money as necessary. This will reduce your death benefit, however. Like other types of permanent life insurance, whole life policies can be expensive because your dependents are guaranteed to collect death benefits. To find out how much you can expect to pay, get Transamerica life insurance online quotes for several different plans.
Transamerica also offers universal life insurance. This type of permanent life insurance is slightly more flexible than comparable whole life plans. You will not only be able to choose the face value of your policy, but also the premiums you wish to pay. Transamerica life insurance online quotes can give you an idea of just how flexible this plan can be. At Transamerica, universal plans are similar to whole life in that you can withdraw from your cash value if you so choose. Taking out money will be considered a withdrawal or a loan; loans will accrue interest, but both will reduce your death benefit.
Variable universal life insurance is the most flexible type of plan available. Like universal insurance, you will be able to choose the amount of your policy and premiums. You will also have the option to increase your cash value by managing investment portfolios. This option is flexible, but not without risk. You could potential reduce your death benefit or principal with this type of Transamerica life insurance. Online quotes are available at several different sites around the web.
If you are planning to purchase life insurance, it’s essential to compare term life insurance quotes from various providers. Our site would provide you instant life insurance quotes and also would allow you to compare multiple quotes from top life insurance companies. Just call us at 1.888.583.5070 or fill out the form to the right for a quick quote!
Posted in Life Insurance, Permanent Life Insurance, Term Life Insurance, Term Life Rates | Tagged Buy life insurance online, Cheap Life Insurance, Georgia life insurance, Georgia Term Insurance, Online Life Insurance, Police Officer Life Insurance, term life insurance, Transamerica Life Insurance Quote
By admin on January 18, 2012
Life insurance is a basic need. It’s the first step in financial planning. However, life insurance is not just for financial protection in the event of untimely death of the breadwinner. It can also be a comprehensive wealth accumulation solution.
Whether you are young or old, rich or poor, employed or a business person – you can get a plan tailor-made for you. In a way, all investments are insurance against financial risk and all insurance is investment for a better tomorrow . Many Life insurance plans have savings component that earn returns just like in any other investments (e.g., fixed deposits, bonds or mutual funds). But the main difference is that Life Insurance really is a long term investment .
If you are planning to purchase life insurance, it’s essential to compare term life insurance quotes from various providers. Our site would provide you instant life insurance quotes and also would allow you to compare multiple quotes from top life insurance companies. Just call us at 1.888.583.5070 or fill out the form to the right for a quick quote!
Posted in Life Insurance, Permanent Life Insurance, Term Life Insurance, Term Life Rates | Tagged Buy life insurance online, Cheap Life Insurance, Georgia life insurance, Georgia Term Insurance, Online Life Insurance, Police Officer Life Insurance, term life insurance
