A guarantee of large amounts of cash payable immediately at the death of the insured. The amount of the death benefit is usually significantly greater than the premiums paid for the policy. Loans and partial surrenders will reduce any death benefit. Death benefit proceeds from life insurance policies usually are not subject to federal income taxes. The life insurance industry remains unparalleled in safety among financial institutions.
Life insurance is a complex product that can be hard to evaluate and compare.
The cost of coverage reduces the amount of funds available for current use or investment. Your insurance agent can help identify your individual needs and match those needs with the type of product designed to satisfy those needs. Besides realigning your action plan to provide for your children s education, you also should seek an entire insurance program review to see if your college student will have adequate health, auto and personal property coverages. Many health plans have an increased deductible for medical services delivered outside your city of residence, and some policies will not cover students residing in another state. Also some coverages may change when your child drives other cars.