My Investopedia Posts

Should I seek out legal services to attain the full amount of my father’s whole life policy, if the claims department determines I’m not eligible before the two-year policy standard?

I’m sorry for your loss. I also lost my father, a few years ago, and his demise started with a broken hip too. I don’t see any reason for this… Read More

What are the best investments that include an insurance component, for example life or medical insurance?

There are many annuities in the marketplace that provide a death benefit. This actually can be a value-added feature if you want your heirs to be “made whole” from your… Read More

What is a better vehicle for saving for my child’s education costs: a whole life insurance policy or a 529 plan?

I will answer this question from the point of view of somebody who sells life insurance. You can compare my notes to somebody who sells the 529 plans, and see… Read More

How much taxes do I have to pay from a full surrender of $7,342 from a life insurance policy?

If the money is really a surrender of cash value, then you would be taxed on an amount above the cost basis. You can ask the insurance company for the… Read More

Can my ex-spouse cash in a life insurance policy that she owns before our children, the beneficiaries, are legally adults?

The owner has control of the policy. That means that coverage can be terminated if she wants to. This raises a few questions: When you say “cash in,” do you… Read More

I have two whole life insurance policies; my payments are low and a portion of the premiums are paid by returns. Should I continue making payments on the plans until I die, or should I cash out at 59.5 years old?

There’s a lot going on here. Let me try to break it down according to the various concerns you might have: Need for the benefit Sure, you have enough invested;… Read More

What’s the best thing to do with excess wealth at age 30?

Here’s an idea for you: use a First World problem to solve a Third World problem.  Talk to a good estate planning attorney and set up a charitable giving program… Read More

Using Life Insurance to Help Cover Your Business

Here are the answers to some questions commonly asked when using life insurance to cover the costs of your business when you pass away. Read More

What can I do with life insurance benefits left to a minor child?

That’s a tough situation. I appreciate your desire to give your mother a proper burial, and the hardship of not having the money to pay for it. I don’t think… Read More

How do I obtain my late grandmother’s life insurance policy?

I see no reason to assume the insurance company is trying to get away with something. Some policies are designed with a level death benefit. For example, if it is… Read More