Life insurance refers to a specified amount of capital—the death benefit—that is paid to beneficiaries upon the death of the policyholder. There are many different forms of life insurance including term life, whole life and universal life. Term life is arguably the most basic form of life insurance and is intended to provide financial protection through income replacement in the event of the premature death of the policyholder. There are also many different uses of life insurance such as income replacement, estate planning and tax planning.
The following are a few key concepts to think about, look for, or listen to when developing a financial plan:
Information Gathering: This is one of the first steps in the financial planning process. Your financial advisor should gather quite a bit of information about you and your current financial status.
Here is a bit of advice that might make annuities easier to understand:
There currently exists what would appear to be a once in a lifetime opportunity for life insurance companies who are essentially the manufacturers of asset decumulation products such as annuities.
Submitted by tom on
The longevity swap market is heating up with many employers / plan sponsors who offer traditional defined benefit pension plans eager to offload longevity-related liabilities to parties who are interested in assuming the risk.
