Why do many people avoid Life Insurance?
Read, find out the advantages of Your Life Insurance to Your Family, and take adequate Life Insurance Cover, between 10 to 20 times of your annual Income (depending on other assets and liabilities that you have). Policies with returns should not be the priority. Adequate Life Cover should be your priority, and you can easily achieve that with a "Term Plan".
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http://moneyfyi.wordpress.com/2014/06/12/a-simple-solution-to-a-complex-problem/
§ Owing a lot of money in your estate is not a problem, it is almost certain. Your executors will need liquidity to deal with taxes, costs, and to purchase required investments for family security. There may further be the need to write checks to pay specific charitable or other bequests and to equalize the estate distributions. No problem if you have the money.
§ The problem is having the cash to make the deposit that will allow the bank to clear the inevitable checks. How do you expect that your executors will deal with a shortfall? Be specific. It will be a very large problem for them if you do not give them the ability to make the deposit. Executors tend not to be impressed with the size of the estate so much as they are aware of its liquidity.
In time of need you sell what you can, not what you want. Looking for a sale as being the solution tends to reduce the estate value and gut it of its best assets. Sell the best; keep the rest. Hardly a winning option.
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Think +ve, Be +ve
Certified Trainer, Certified Leadership & Performance Coach
Sabhav Wealth Management Services
+919664966416
Read, find out the advantages of Your Life Insurance to Your Family, and take adequate Life Insurance Cover, between 10 to 20 times of your annual Income (depending on other assets and liabilities that you have). Policies with returns should not be the priority. Adequate Life Cover should be your priority, and you can easily achieve that with a "Term Plan".
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http://moneyfyi.wordpress.com/2014/06/12/a-simple-solution-to-a-complex-problem/
Many people avoid life insurance solutions.
It is not hard to see why. The reason to own
it is negative and possibly far in the future. The premium is due today
and seems to have no current value. As one client explained it, “It is
like betting against the home team.” On the basis of short term feel-good
spending, it is a wonder anyone buys. People feel insurance poor.
How about life insurance on the basis of long term
value? You can analyze the value but you need to notice some facts:
§ Estates are complicated. There are many
obligations and sometimes the wrong kind of assets.§ Owing a lot of money in your estate is not a problem, it is almost certain. Your executors will need liquidity to deal with taxes, costs, and to purchase required investments for family security. There may further be the need to write checks to pay specific charitable or other bequests and to equalize the estate distributions. No problem if you have the money.
§ The problem is having the cash to make the deposit that will allow the bank to clear the inevitable checks. How do you expect that your executors will deal with a shortfall? Be specific. It will be a very large problem for them if you do not give them the ability to make the deposit. Executors tend not to be impressed with the size of the estate so much as they are aware of its liquidity.
There are two ways you can affect the deposits.
Own liquid investments or own life insurance. Many people try to work out
their own solution because they don’t like paying premiums for the emotional
reasons above. That seldom works out like they hope.
Some assume the executors will be able to sell
things to get the money. That tends to be a flawed tactic because no one
goes to an estate sale expecting to pay full price. You would not and
neither would I. Besides, no one can predict future values for
complicated or illiquid investments. Even liquid assets like stocks and
bonds may be temporarily mispriced when your executors want the cash.In time of need you sell what you can, not what you want. Looking for a sale as being the solution tends to reduce the estate value and gut it of its best assets. Sell the best; keep the rest. Hardly a winning option.
Borrowing might work for a little while, but you
will tie up at least $2 of estate value for $1 of liquidity and even that might
be optimistic if the estate includes a valuable business whose leader is now
missing. How long can the estate wait for a solution to the newly
acquired loan problem?
Bear in mind the nature of the “Executor
year.” Taxation issues can be a serious blemish if assets are liquidated
at a loss more than one year after death. Urgency never adds value.
Life insurance is cheaper because of the way it is
taxed and more useful because of the way it is instant-on. You can work
it out and compare to your other solution options. You will find that
life insurance is a simple and inexpensive way to solve a complicated problem.
Exchanging
simple for complicated usually works. Do not overlook it.------------------------------------------------------------------------------------------------------------------------------
"Money is not the most important resource, but it comes very close to Oxygen" - Zig Ziglar.
You are welcome to contact me for any services related to "Money" because it counts in your and your loved ones' happiness...
SABH: Save And Be Happy!
Ajit Vidyadharan
Certified Wealth Manager / Financial AdvisorCertified Trainer, Certified Leadership & Performance Coach
Sabhav Wealth Management Services
+919664966416
