Check with your independent Grange Life agent for details on this and any other questions you have surrounding designating your life insurance beneficiaries in your state. If you neglect to designate any beneficiaries or all of them predecease you , the life insurance proceeds will be paid to your estate. If that happens, the probate court will decide how to handle the funds.
This could take a while and possibly chip away at the proceeds. So, in order to get the money into the hands of those who need it as soon as possible, designating a beneficiary is the way to go. This article is not intended to be used, nor can it be used, by any taxpayer for the purpose of avoiding U.
It is written to support the promotion of the matter addressed here. Grange Life Insurance Company does not provide tax, accounting or legal advice. Not available in all states. On the path to purchasing a new life insurance policy, one big question often comes to mind: how much coverage do I need?
While an independent agent can give you the best estimate, here are a few quick tips and tools to help you get started. Posted in General , Auto , Home , Life. When was the last time you reviewed your insurance? Here are six ways to get the most out of your annual insurance review. You are about to be logged out due to inactivity. Clicking OK will refresh your session.
This ensures that the child receives the full death benefit for the policy. Another option is to set up a trust fund that can receive the life insurance proceeds. If you decide to go the trust route, make sure it specifies how the money should be delivered — installments, a lump sum when the child turns a particular age, etc.
Forgetting to update your beneficiaries — Just like you should review your policy needs after major life events , you should also revisit your policy beneficiaries and the listed information periodically.
Common oversights include incorrect contact information, listing a former spouse, or listing a legal guardian when a child is no longer a minor. The last thing a beneficiary should have to worry about when losing a loved one is how to collect the proceeds, which they may need immediately to cover timely expenses.
Assuming a will covers all updates — Your life insurance policy is a legal contract, which means the terms listed on it are the ones that go into effect if you die. Your will does not control or trump this contract. For example, if your will lists the beneficiary as your husband and the life insurance policy has your ex-husband listed as the beneficiary, the death benefit will be paid to your ex. Best to avoid that potentially uncomfortable situation altogether by consistently monitoring your beneficiary designations.
Accidentally making your death benefit taxable — Here is where things can get pretty tricky. Typically, a life insurance death benefit is received free from federal income tax. To avoid this, the insured and the owner should be the same person. The Haven Term policy is issued by MassMutual, an industry leader with over years of experience.
The purpose of purchasing a life insurance policy is to provide financial protection for your loved ones. To do that, you must name someone as the beneficiary.
Be thoughtful about who you are naming as a beneficiary, the information you provide on them and periodically check in to ensure accuracy.
Second, remembering to assess whether you need to make any beneficiary changes if your life circumstances change, can give you peace of mind. Those 30 years could be filled with many huge life milestones like getting married, buying a home, having a child … having a second child — all of which will benefit from the peace of mind that affordable coverage was secured long ago.
Due diligence early on and throughout the life of your policy would save your loved ones unnecessary stress and potentially a lot of money if anything were to happen to you.
She lives in Jersey City, NJ, with her family and loves traveling, running, and trying to find the best cold brew coffee in town. Opinions are her own. Sponsored by Haven Life. The information provided is not written or intended as specific tax or legal advice. Haven Life Insurance Agency does not provide tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel.
Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. Anna Davies is an innovative copywriter, magazine editor, award-winning essayist. We believe navigating decisions about life insurance, your personal finances and overall wellness can be refreshingly simple. Our content is created for educational purposes only. Haven Life does not endorse the companies, products, services or strategies discussed here, but we hope they can make your life a little less hard if they are a fit for your situation.
Haven Life is not authorized to give tax, legal or investment advice. This material is not intended to provide, and should not be relied on for tax, legal, or investment advice. Individuals are encouraged to seed advice from their own tax or legal counsel. Policy and rider form numbers and features may vary by state and may not be available in all states. MassMutual is rated by A.
The rating is as of Aril 1, and is subject to change. MassMutual has received different ratings from other rating agencies. Haven Life Plus Plus is the marketing name for the Plus rider, which is included as part of the Haven Term policy and offers access to additional services and benefits at no cost or at a discount. The rider is not available in every state and is subject to change at any time. Neither Haven Life nor MassMutual are responsible for the provision of the benefits and services made accessible under the Plus Rider, which are provided by third party vendors partners.
So would we. Many people wonder if the proceeds from a life insurance policy are taxable to the beneficiary. A binding nomination is a legally binding statement which your insurer will use to know who your money should go to if you pass away. A non-binding nomination is not legally binding.
Your insurer will take your non-binding into consideration when making the life insurance payment on your behalf, in addition to other aspects of the law. You should evaluate your beneficiary and policy at any major life event — for example, purchasing a home, having children, getting married, getting divorced or at the death of a loved one. Having life insurance beneficiaries up to date ensures your loved ones are taken care of financially if something were to happen to you.
Remember, you can easily update your policy and beneficiary through myTAL. And if you have any further questions concerning beneficiaries, feel free to contact your Financial Adviser or the TAL team.
Significant income protection changes come into effect on October 1 Click to find out what's changing and how it may impact your cover. From lodging your claim to ensuring your payout comes through, find out how to make a successful TPD Insurance claim here. When taking out a life insurance policy, you may be required to undergo a medical examination.
Click to find out what's involved. Life insurance products, such as Income Protection Insurance, can be used to pay your mortgage if you become injured or unwell. Learn how insurance can help cover mortgage payments.
0コメント