“Mortgage life insurance will pay off the house if you die. Term life insurance will give your beneficiary cash when you die, allowing him or her to decide whether paying off the house is the right financial move. Members of the Financial Planning Association of Greater Indiana offer advice on what type of insurance, if any, would be best for you.”
Full Article: http://www.indystar.com/apps/pbcs.dll/article?AID=/20060115/BUSINESS/601150390/1003
“Life insurance proceeds generally are includable in the taxable estate of the owner of the policy. The fact that the death benefit, which is paid out on the death of the owner, is includable in the estate tax return of the owner does not necessarily mean that the proceeds will be taxed. If the proceeds are payable to the wife of the owner, then they are not taxable because as a transfer to a spouse, they qualify for the marital deduction. If the owner’s entire estate is less than $2 million dollars, the current estate tax exclusion, there is no estate tax on his estate unless he has used up his lifetime exemption by gifts during his lifetime. Note that the lifetime gift tax exemption remains at $1 million, while the estate tax exemption increased to $2 million as of Jan. 1. ”
source: http://www.rocklintoday.com/news/templates/finance_news.asp?articleid=2945&zoneid=6
“However for precise planning and, upon death, when the estate tax return is filed, the final figure is determined by taking the face amount and adding any paid-up additional insurance, accumulated dividends (with interest) and post death dividends, and then deducting any policy loans. The final amount is then included on the federal estate tax return. This amount will generally be provided by the insurance company on what is universally called “Form 712.” The beneficiary of the policy or the lawyer should always request the insurance company issue Form 712.”
source: http://www.shns.com/shns/g_index2.cfm?action=detail&pk=RETIRE-02-06-06
The group life insurance program is available to ABA-member law firms in all 50 states(1) and has been endorsed by the boards of directors of the American Bar Insurance Plans and the Association of Legal Administrators. The program includes:
-- Variable group universal life insurance
-- Group universal life insurance
-- Group term insurance
-- Coverage for spouses and children
“Any combination of these products can be used to create a customized group life benefits package that may meet or exceed a member firm’s unique needs,” said Ed Eller, national sales manager, Minnesota Life. “Our web platform offers optimum flexibility for program design, making it easy for benefits managers to administer these customized programs and employees to use them.”
Minnesota Life, a subsidiary of Securian Financial Group, offers self- managed, web-based group life insurance plans that employers and employees alike can administer coverage on line at their convenience. Minnesota Life also offers superior customer service, resulting in “excellent” or “good” ratings from 100 per cent of its client companies and a 99 per cent customer retention rate.
Minnesota Life ( http://www.minnesotalife.com ) has been in the group life insurance business nearly 90 years. It is the fastest-growing group life insurer in the nation, rising from sixteenth largest in 1997 to sixth in 2004, with nearly $400 billion of group coverage in force. Minnesota Life’s is a subsidiary of Securian Financial Group ( http://www.securian.com ), which has more than $500 billion of life insurance in force, $26 billion in assets under management, and a combined work force of more than 5,000 employees and advisors in its St. Paul, MN headquarters and offices across the country.
American Bar Insurance Plans Consultants, Inc. was established in 1989 as a wholly-owned subsidiary of the American Bar Endowment. ABI, which sponsors insurance programs for ABA member firms, has a dual role: create unique insurance programs for ABA members and generate revenue to support the Endowment’s charitable and educational goals.
This information should not be considered tax advice. You should consult your tax advisor regarding your own tax situation.
You should consider the investment objectives, risks, charges and expenses of a portfolio and the variable insurance product carefully before investing. The portfolio and variable insurance product prospectuses contain this and other information. You may obtain a copy of the prospectus by calling 1-800- 843-8358. Please read the prospectuses carefully before investing. VGUL is distributed through Securian Financial Services, Inc., Member NASD/SIPC. 400 Robert Street North, St. Paul, MN 55101, 1-888-237-1838.
Variable Group Universal Life is offered under policy form series MHC-94- 18660 Rev. 5-2001 or MHC-96-18710T Rev. 5-2001 or a state variation thereof; Group Universal Life is offered under policy form series 00-30252 or 01- 30287T; Term Life is offered under policy form series MHC-96-13180 or MHC-97- 130010T.
(1) Products and services in New York will be offered by a member of the
Minnesota Mutual Group of Companies admitted in New York. Minnesota
Life is not admitted to do business in New York.