If the policy is active when you pass away, your beneficiary will receive that death benefit. We use this information for business, marketing and commercial purposes, including but not limited to, providing the products and services you request, processing your claims, protecting against fraud, maintaining security, confirming your identity and offering you other insurance and financial products. "When we talked to his wife about it again later, we asked her some questions about her family's future. This may include funeral or cremation costs, medical bills not covered by health insurance, estate settlement costs and other unpaid obligations. What do you want for your family if you're not here? If you have life insurance through work, … Life insurance provides a solid financial foundation and serves as a versatile tool for businesses of all sizes. Deciding if life insurance is worth buying starts with looking at what’s important to you and how you want to protect it. You Can Get It Through Work, But Still Need Another Policy. "Prudential Advisors" is a brand name of The Prudential Insurance Company of America and its subsidiaries. How life insurance works is pretty simple. Upon the death of the insured, the trustee invests the insurance proceeds and administers the trust for one or more beneficiaries. Children’s education. Some people rely on the group life coverage they have through work, but once they sit down and look at their goals for their family, they find it's not enough. Some people find that one type of policy satisfies all their needs, while others select a combination of different coverages. Life insurance comes in two basic forms: term life and permanent life. This is in large part because insurance companies can take at least 6 to 8 weeks to process a claim. Any … You can probably answer this question by asking yourself another question. You want these things.". This way, the life insurance payout will not be considered part of the estate of the insured, which lowers the estate value and the potential for estate taxes. If they have children, we factor in everything from basic costs like food and clothes, to future costs like a college education. Learning what life insurance is now can help you make informed decisions about the right ways to keep your family protected. In general, a term policy can help you to meet these needs. For additional important information about the products, services and companies associated with LINK, please click here. Before you purchase a policy, though, … A funded life insurance trust owns both one or more insurance contracts and income producing assets. From how it works to how much you need, get your life insurance questions answered here. Typically, your beneficiaries won’t have to pay any taxes on the money they receive from your life insurance policy, per IRC §101(a). It can be used any way you wish,1 including as extra retirement income, through tax-advantaged loans from your policy’s cash value. © 2020 Prudential Financial, Inc. and its related entities. Term … Prudential, the Prudential logo, the Rock Symbol, Bring Your Challenges, Prudential LINK and LINK by Prudential are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide. Use an Advance Funding Company. As with all insurance… Whole Life Insurance: Which is Right for You. The information is not intended to replace manuals, instructions or information provided by a manufacturer or the advice of a qualified professional, or to affect coverage under any applicable insurance policy. Evaluating the pros and cons of these types of life insurance may help you decide. Participating life insurance policies are usually whole life policies that pay dividends, but permanent coverage can be participating or non-participating. Universal life insurance, like whole life insurance, builds cash value that can be used as an investment or borrowed against and provides coverage for as long as premiums are paid. Any … The proceeds, or a portion of proceeds from a life insurance policy could be used to help pay for the cost of the children’s education. Life insurance can be a vital tool, helping mourning family members deal with the monetary impact when someone passes away. Use up and down arrow keys to navigate. They can help break it all down and help you find the coverage you need. Individuals should consult appropriate professionals when making financial, investment and tax decisions. We want to grow old with our families, run our business until we're ready to retire, give back to our communities for years to come. Life insurance policy benefits can be used to help pay for final expenses after you pass away. 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