Joint Life Insurance For a Safe Outlook

Joint life insurance policies have their advantages and disadvantages.

If you are thinking of picking up one as a married couple, then you should weigh this policy type with the single policy options that are available considering your own unique situation. Also, it is possible to find an insurance provider that has a package designed for you if you take time out to check, even though many of them offer packages, which are similar.

Now the reason why you are considering having this particular type of policy is so you can be assured your family is reasonably taken care of in the event that you are no more.

However, you should consider creating a family trust in addition to this joint life insurance. This trust can supplement the joint life insurance that you have and assist in ensuring your estate is transferred to members of your family as you want this to be done when you are no more.

In spite of the fact that single life policies are similar to this type of insurance (i.e. joint life), the major advantage this has is that this is often cheaper to having two separate life policies. Another benefit of this type of insurance is that it will provide funds to the surviving partner, which will help in meeting different financial obligations: from taking care of the children to paying off the mortgage.
Two typical examples of the joint life are term and whole life.

If you go for the joint term policy your premium will be less, but it also means that you will only be getting the death benefit.

On the other hand, if you go for the whole life option you will get premium value in addition to the death benefit.Alright as mentioned earlier you can also look into the option of creating a family trust to complement your joint term or whole life insurance. This trust sometimes known as living or inter vivos trust is set up while one is alive as you might have already guessed. It involves bequeathing your property to a trust created by you and held and managed by another chosen by you. Some benefits of family trust are: being able to protect your estate from likely financial liabilities since ownership of this estate is now the trust; possibility of reducing tax payment and also being able to avoid probate proceedings.

Finally, one major shortfall with a joint life insurance policy is the fear of what will happen to this kind of insurance when there is a divorce. This is why couples are often advised to also take a single policy together with this.

FamilyTrustSecrets.com has the answers to all the questions that you were afraid to ask about Family Trust! To make sure that you will not have to settle for anything less than the full story on Joint Life Insurance and related topics, check out the site right away!

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Higher Tax Deduction For Long-Term Care Insurance in 2010

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Many Americans do a poor job of planning for their future. It's true. As a result an increasing number of individuals and families look to the federal and state government for solutions. Most often the solutions are insufficient.

That is why legislators at both the federal and state levels offer significant tax incentives to encourage Americans to plan. From tax deductions for retirement savings options to deductibility for home mortgages, all of these are ways government entities are giving people incentives to be self-sufficient,

As millions of Americans live longer lives, into their 80s, 90s and even beyond, the number of people needing long-term care continues to grow. Some 10 million Americans currently require long-term care services. Most force loved ones and family members into becoming their caregivers. Others are turning to taxpayers for aid.

Long-term care costs are now a significant budget line in many states. When dollars are spent caring for elderly, there are fewer dollars to pay for schools, police and the many other services a society requires. As a result, government officials have recognized the importance of educating Americans about the newfound need to plan for long-term care.

Tax-deductible retirement savings launched the 401(k) plan from relative obscurity into the most-popular way Americans save for retirement.

Tax-deductible LTC health insurance may do the same for the first generation of Americans who need to plan for living a long life.

Recognizing this fact, the Internal Revenue Service (IRS) has approved increased deductibility levels for insurance policies purchased in 2010 according to a just-issued report by the American Association for Long-Term Care Insurance, the industry trade group.

Some 8.25 million Americans currently own policies and several hundred thousand new individuals purchase protection each year according to the trade group. In addition to federal tax advantages, a number of states now offer tax deductions or credits to those who purchase LTC insurance protection. A credit is a dollar-for-dollar reduction in the actual cost of insurance.

Tax deductions are limited for individuals financial experts note. However, business owners may be able to fully deduct the cost for themselves and selected employees. In addition to the tax deductions, a number of insurers now are offering discounts to employers who offer coverage to as few as three employees.

There is still time to take advantage of tax deductions in 2009 and also benefit from the increased deductible limits for insurance next year. To accomplish this, the policy must be purchased prior to the close of the tax year and financial professionals recommend speaking to both your insurance and accounting professional.

The federal deductible limits under Section 213(d)(10) for eligible long-term care premiums includable in the term 'medical care' are as follows:

2010 Long-Term Care Insurance Deductible Limits
Attained Age Before Close of Taxable Year
40 or less: Deductible Limit: $ 330
More than 40 but not more than 50: $ 620
More than 50 but not more than 60: $1,230
More than 60 but not more than 70: $3,290
More than 70: $4,110

Source: IRS Revenue Procedure 2009-50 (2010 Limits)

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