The Benefits of Life Insurance - Commonly Asked Questions

Oct. 5, 2010 - PRLog -- Individuals seeking financial protection for their families have more flexible options to choose from than ever before.  While the death benefit should be the primary reason to purchase a life insurance policy, the exceptional combination of strategic financial benefits, accessibility and beneficial tax treatment can't be matched by other financial products.

Can I access money in a life insurance policy?

Yea, you have fast access to policy cash values through withdrawals and/or policy loans - usually within one week of signed request receipt.  However, with most policies, withdrawals are usually not available during the first policy year.  Also, withdrawals or loans before age 59.5 are generally not subject to the 10% early withdrawal penalty that may apply to IRAs, 401(k)s, and other tax-deferred retirement plans.

How will the death benefit impact my estate?

Wealth transfer is generally estate-tax-free when the policy is properly structured so as to be owned by a party ogther than the Insured and the beneficiary is other than the estate of the Insured.  Otherwise, proceeds payable upon death of an Insured owner will be includible in the owner's estat.  

Wealth transfer is probate-free to the extent that death proceeds are paid to a named beneficiary (other than the estate of the Insured).

For more information regarding Orlando Life Insurance, please contact Philip Lelle, AXA Advisors at (407) 246-6500 Ext 140.

Http://www.PhilipLelle.com