8. September 2017 17:49
35 years is a long time.
Think about some of the things that happened or were popular in 1981.
- Raiders of the Lost Ark
- MTV began
- Prince Charles and Lady Diana married
- Hall & Oates
- The Rubik’s Cube
- Donkey Kong
A lot can happen in that time of time. The fall of The Soviet Union. The Internet. Mobile phones. Emoji. 35-yr term life insurance.
Yes, you read that right. You can now buy term life insurance with a term period of 35 years from American General Life Insurance Company.
Until now, the longest term period available was 30 years. But with the new term length, you can lock in a low rate up to age 45 and keep it until you are 80 years old.
Will you need term life insurance for 35 years?
Maybe and maybe not. It all depends on your unique circumstances. Things to consider include:
- How many years until your youngest child leaves home?
- How many years until all your children (and perhaps grandchildren) graduate college?
- How many years until you pay off your mortgage?
- How many years until you retire?
This is a start, but there’s more to it. Thankfully, we’ve written a thorough guide to help you find out how long you will need term life insurance.
It’s important to note that you are never ‘stuck’ in a policy for the entire term length. Meaning, you can always cancel the policy before the term expires without incurring any penalties or fees. Most life insurance companies will refund any unused premiums as well. Just in time for last-minute holiday shopping!
7. September 2017 10:35
Would you like to make a charitable gift to help organizations or people in need; to support a specific cause; for recognition such as a naming opportunity at a school or university? Perhaps you would do it just for the tax incentives. There is any number of reasons, and life insurance can be one of the most efficient tools to achieve these purposes. So the question becomes, how does this work?
Let me list the ways.
1. Make a charity the beneficiary of an existing policy. Perhaps you have a policy you no longer need. Make the charity the beneficiary, and the policy will not be included in your estate at your death. This also allows you to retain control of both the cash value and the named beneficiary. If you want or need to change the charity named as beneficiary, you can.
2. Make a charity both the owner and beneficiary of an existing policy. This gives you both a current tax deduction along with removing the policy from your estate. Once you gift the policy, you no longer have any control over the values.
3. Purchase a new policy on your life. Life insurance is an extremely efficient way to provide a large future legacy to a charity in your name without needing to write the large checks now. The premiums are given directly to the charity which then pays the premiums on the policy. The charity also owns the cash value as an asset. I am using this concept in my own planning.
Many charities would prefer to have their money upfront, but if you cannot write that large check or don’t want to part with your cash today, a gift of life insurance is a most efficient method to leave a large legacy in your name.