What are the best life insurance policies?

Question

I want to pay up front for the whole policy to go to my two children and my Love...

Answer 1

Great sentiments. If you can afford it, consider a single-premium life insurance policy. As the name suggests, the premium is paid upfront in a lump sum. The policy covers you until death. Depending on your age (and how much time the insurer has to insure you premium) the death benefit can be two or more times the amount of the single premium and is exempt from estate taxes. It’s a great way to pass on wealth. Some single-premium policies can include a provision to pay for certain kinds of medical care, such as nursing home care or hospice care. In this sense, the policy functions as a kind of long term care insurance. Any money remaining in the death benefit at the time of the policyholder’s death is passed on to the beneficiary.

Answer 2

Your best bet would be to place your children on your life insurance with a child term rider, it will only cost a few dollars per month. the term rider is usually convertable into a permanent policy for your child when the reach legal age. If you are thinking a whole life policy would be a good investment, it is not, it is insurance

With the money you saved on the premium you could open an investment for your children.

Keep the money in your name. I would avoid opening a UGMA or UTMA account,  when your child reaches legal age (18 or 21) they can go pull the money out and spend it on anything they desire. We all hope our kids will grow up and be responsible but you never know.

If you want to save for college.

I would suggest opening a 529 college savings plan. These accounts allow the money invested to grow in mutual funds on a tax favored basis (no capital gains taxes) As long as account is used for higher education it remains tax free. The account would be in your name with the child as a beneficiary. One nice thing is that once your child turns 18 the account still stays under you control. If your child wins a scholarship you will be able to withdraw money from the 529 equal to the scholarship penalty free and you would just pay taxes. If you remove the money from the 529 for non qualified expenses you would pay taxes and a 10% IRS penalty. If your child never goes to college you can change the beneficiary even to yourself. These accounts don't have much of a downside. I would recommend you checking out the 529 offered by The American Funds or the plan offered by your state.

I also highly recommend reading The Truth About Money by Ric Edelman

http://www.savingforcollege.com/

http://www.americanfunds.com/default-hom...

Answer 3

A universal policy is probably the best way to go.  You can pay the premium all up front which is what it sounds like you are wanting to do.  You could buy term, but that will only cover the short term need for your family.  Also if you're truely wanting to pass the money along to your family life insurance is the best way to do so, because it's all tax free.  If you buy term and invest the rest, you and your family will pay taxes on the gain and if something happens with in the first several years you won't have near the investment they need.

Answer 4

The best life insurance policy is a term life insurance policy. If you don't believe me, just pick up a copy of Charles Givens book, Wealth Without Risk, from your local library. He has an excellent section on insurance, and if you take his advice, you won't get ripped off. He recommends term life insurance, as do most financial experts who are not insurance agents.

Here is a good article you should check out:

http://lifeinsurancenow.com/how-to-buy-l...

And if you need a quote, you can get one here:

https://www.expert-quotes.net/term_life_...

Answer 5

I think whole life is a rip-off, I would go term 10-20 yr level. Take your savings from that and invest it yourself that way you keep all your gains and don't give it away to an insurance company.

Answer 6

Go to Yahoo Finance and click on "Personal Finance."  There's a section there that explains life insurance.