Do I Need Life Insurance?

Life insurance has long been a part of estate planning in the United States. Although life insurance does not need to be a part of every person's estate plan, it can be very useful, especially for parents of young children and those who support a spouse or a disabled adult or child.

Transfer Your Life Insurance and Decrease Your Estate Tax

If your estate is likely to owe federal estate taxes at your death (currently, any estate of more than $5.45 million), you may want to consider transfering ownership of your life insurance policy. When a person dies owning an insurance policy, the full amount of the proceeds are included in the federal taxable estate; however  if someone else owns the property, the proceeds are not included.

Life Insurance Options

If you are interested in life insurance, any insurance salesperson will be delighted to explain the bewildering array of policies available to you. However, unless you educate yourself first, it's all too easy to get mesmerized by insurance policy lingo and end up paying too much for a policy that may not meet your needs.

Using Life Insurance to Provide for Your Children

At some time or another, all parents worry about what will happen to their children if one or both parents were to die prematurely. Often, life insurance is the first place parents turn when these worries arise. Although life insurance may be a good source of income for your children if you die, before buying a life insurance policy you should carefully consider whether or not you really need it, what type of policy is best, and who should manage the proceeds on behalf of your children.

How Much Life Insurance Do I Need?

If you are in the market to buy life insurance, the big question is: How much? The answer is not always easy. There are many different methods of calculating how much life insurance you need -- ranging from the simple to the complex. But if you learn the basic concepts of life insurance calculation, you can cut through the confusion and come up with an amount that will protect your family.

Permanent Life Insurance: The Basics

Permanent life insurance comes in many shapes and sizes. Before you sign up for a policy, you should look into which is right for your situation. Here's a quick guide to several types of permanent life insurance.

How to Buy Life Insurance

When choosing a life insurance policy, it pays to learn about the different types of insurance available, shop for the best rate, choose an agent wisely, and check the reliability of your insurance company.

Can we keep a child's money out of the hands of an irresponsible adult?

My husband named his 13-year-old daughter from a previous marriage as the sole beneficiary of his life insurance policy. He has also purchased savings bonds payable either to her or him, which are intended to cover her college expenses. Our concern is to safeguard against foolish spending by the girl's mother. Is there any way we can provide for this?

Are life insurance benefits subject to the estate tax?

I have a life insurance policy through my employer. My concern is that if I die, the face value might become part of my estate because I own the policy. How do I protect my wife so that estate taxes don't grab a chunk of the benefit payment?