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Rancho Cucamonga, CA, 91730.
888-712-6335
lety@loyaltyinsures.com

Common Questions Answered About Life Insurance

Common Questions Answered About Life Insurance

 

  1. What is Life Insurance?

Life insurance is a contract by insurance company to take care of the financial needs of your family when you are not around.

  1. Why you need it?

If you have a spouse or kids or dependent aging parents, life insurance helps with the following: – Replace your salary, to take care of family members, to pay back any debts or loans, to cater to any other immediate financial needs. 8 in 10 consumers who have had a positive experience with life insurance say “life insurance plays an important role in life”.

  1. How much do you need?

The following things should be kept in mind while calculating how much insurance you need:

  • Total debt, current salary, retirement goal, financial security or survivors.
  1. What is the tax liability?
  • Premiums eligible for tax saving and if surrendered before maturity then all premiums taxable.
  • Traditional policies & ULIPS: Death of the insured is tax exempted and surrendering before maturity. At maturity tax is exempted.
  • Pension Plan: Death of the insured tax is exempted, surrendering before maturity (1/3rd income taxed as regular income, 2/3rd has to be reinvested in annuity). At maturity (1/3rd income tax exempted, 2/3rd has to be reinvested in annuity). Pension received is treated as regular income and taxed according to individual’s tax slab.
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