Life Insurance?

[katwoman]

Re: Life Insurance?

I would assuem the policies were part of a buy sell agreement and if it was entity buy sell it is a tax write off anyways.

Also if he let the old policy lapse while the new one was in underwriting the agent did him a diservice but not advising against and possibily has liability if he instructed to cancel the other policy before approval on the new policy. That is Insurance 101 but not something you see the lesser agents in the biz do.

Yes, it is a tax write off.

No offense, but I can always tell who the business owners are vs. non-business owners. Non-business owners always bring up tax write offs while prudent business owners ALWAYS look at the bottom line and hate the term "tax write off". Let's face it, employee insurance premiums are a tax write off but how many employers these days are picking up the tab? Bad business debt is a tax write off but how many businesses are happy that customers don't pay? Trust me when I say his partners are not happy that they have to shell out more in premiums for him than for themselves.

As for the lapsed policy, this was one he bought on his own and decided he didn't need it. In hindsight, of course, he wishes he kept it up.

[Young81k]

Re: Life Insurance?

If you buy a permanent life insurance policy when you still relatively young, your premium is likely to be quite low. You will definitely benefit from the low premium as you get older (closer to the final day). Although you have to pay premium for longer period of time, the low premium may turn out to be cheaper in the long run.

Also premium life insurance allows you to withdraw or borrow money against your life insurance policy for quick access to cash.

[webcontacts00]

Do not buy insurance policy as investment vehicle. We have done enough research and calculation to prove that it is waste of money. Term life is fine if you have any dependents.