I'm trying to buy life insurance for myself and my mother. I read up on this survivorship insurance which sounded pretty suitable since I wanted something for my mother if I be do die first and vice versa. but most of the online quotes I saw were between spouses...
But I get confused when I read about fluky death ins- does this be a sign of I will not be covered if I die of an illness or antediluvian age- but instead must die of an accident such as auto or slip and jump down??
secondly, would I get tax on the interest earned on the universal/whole ins or when the policy is remunerated out/ surrendered?
Answers: Correct. Term/whole life insurance covers you if you die, no issue what the cause. Accident lone covers you if you die by accident - not murder, not old-fashioned age, not cancer, not heart attack, not stroke. Not covered.
Universal life is tricky. Unless the interest is added to the frontage value for payout, it's not taxable when you claim it. And when you surrender the policy, it's solely taxable if there's a GAIN - ie, you get vertebrae more than you pay out. Which is pretty uncommon.
Bottom line - insurance is worthy if you die. Investments are good if you live. And insurance isn't a fitting investment. It's a good PLANNING tool, but not a accurate wealth building tool.
Don't buy chance death. Don't buy unharmed or universal. Buy residence, invest the difference, and you'll be MUCH better off contained by the long run.
RUN THE NUMBERS. Do the math. The numbers speak for themselves.
Go to Yahoo Finance and click on "Personal Finance." There is a section here that explains term vs. undamaged life.
Stay away from "accident" insurance. It is a ripoff.
Term insurance covers you for a specific time frame. Whole life span covers you your whole duration. In most cases, you will need to buy 2 policies.
ADD Insurance merely pays if you die by accident. Ex:
Get into a horrible saloon wreck and die at scene. It pays.
Get into same wreck and die on way to hospital OR at hospital. Wont pay envelope. You died of complications from the accident, not the calamity.
On cash attraction policies, if surrendered, you are subject to taxes of all gain (amount minus what was paid). If compensated out, just subject to income toll.
From what is sounds like you are trying to do, catch a small term policy on her, satisfactory to cover the essentials, and a larger one on you to cover all your debts, essentials, and some extra to tender her a little bit more piece of mind. If you really want to run all out, include her debts within yours as well.
While you enjoy the insurance though, put money aside to cover final expenses, retirement, emergency funds, rainy daylight funds, etc so that eventually you can stop paying the insurance company.
But I get confused when I read about fluky death ins- does this be a sign of I will not be covered if I die of an illness or antediluvian age- but instead must die of an accident such as auto or slip and jump down??
secondly, would I get tax on the interest earned on the universal/whole ins or when the policy is remunerated out/ surrendered?
Answers: Correct. Term/whole life insurance covers you if you die, no issue what the cause. Accident lone covers you if you die by accident - not murder, not old-fashioned age, not cancer, not heart attack, not stroke. Not covered.
Universal life is tricky. Unless the interest is added to the frontage value for payout, it's not taxable when you claim it. And when you surrender the policy, it's solely taxable if there's a GAIN - ie, you get vertebrae more than you pay out. Which is pretty uncommon.
Bottom line - insurance is worthy if you die. Investments are good if you live. And insurance isn't a fitting investment. It's a good PLANNING tool, but not a accurate wealth building tool.
Don't buy chance death. Don't buy unharmed or universal. Buy residence, invest the difference, and you'll be MUCH better off contained by the long run.
RUN THE NUMBERS. Do the math. The numbers speak for themselves.
Go to Yahoo Finance and click on "Personal Finance." There is a section here that explains term vs. undamaged life.
Stay away from "accident" insurance. It is a ripoff.
Term insurance covers you for a specific time frame. Whole life span covers you your whole duration. In most cases, you will need to buy 2 policies.
ADD Insurance merely pays if you die by accident. Ex:
Get into a horrible saloon wreck and die at scene. It pays.
Get into same wreck and die on way to hospital OR at hospital. Wont pay envelope. You died of complications from the accident, not the calamity.
On cash attraction policies, if surrendered, you are subject to taxes of all gain (amount minus what was paid). If compensated out, just subject to income toll.
From what is sounds like you are trying to do, catch a small term policy on her, satisfactory to cover the essentials, and a larger one on you to cover all your debts, essentials, and some extra to tender her a little bit more piece of mind. If you really want to run all out, include her debts within yours as well.
While you enjoy the insurance though, put money aside to cover final expenses, retirement, emergency funds, rainy daylight funds, etc so that eventually you can stop paying the insurance company.