Premium financing so simple yet so misunderstood. For high net worth individuals obtaining a level of life insurance, premium financing can be an extremely valuable financial tool. When properly understood, its purpose and benefits are simple and clear. Yet even though it's been a financial instrument for a long time, some industry professionals still find premium finance a mystery. Others misunderstand it altogether. As a consequence, many high net worth clients miss out.Two words: Retained capital. Most high net worth individuals keenly appreciate the value of keeping their capital actively employed. In fact many high net worth individuals are asset rich but cash poor precisely because of this. While they have more than enough capital to cover their premiums, it often means liquidating appreciating investments or removing capital from investments prematurely. These individuals understand the concepts of leverage and arbitrage and employ them in their daily business lives.Enter premi
Can I get the tax benefit on the LIC paid for my father, as I have declared my Father dependent on me. I am not married. contact_ashish7@yahoo.co.inSection 80C(2)(i) covers deduction for amount of payment for life insurance coverage.The exact wordings of the said section is(i) to effect or to keep in force an insurance on the life of persons specified in sub-section (4);Unfortunately, sub-section 4 of section 80C of the I T Act does not mention parents as person specified on whose life insurance premium is eligible for deduction . Read the sub-section 4 of section 80C for specified"(4) The persons referred to in sub-section (2) shall be the following, namely:(a) for the purposes of clauses (i), (v), (x) and (xi) of that sub-section,(i) in the case of an individual, the individual, the wife or husband and any child of such individual, and(ii) in the case of a Hindu undivided family, any member thereof;"Therefore ,premium paid by you for your father's life insurance is not allowable u/
If unexpected expenses come up and you can’t pay your life insurance premium, you should know the possible consequences. The effect depends on the type of policy and coverage you have and the policy terms and conditions. Term: If you stop paying premiums, your coverage lapses. Permanent: If you have this type of policy, you will have the following choices: Cash out the policy. This means that you can stop paying the premium and collect the available cash savings. You will no longer be covered by life insurance, but you will at least save some of the proceeds of the policy. You may, however, have to pay taxes on some of the cash value if the sum exceeds what you have paid in premiums. Non-forfeiture options There may be a “reduced paid-up” option. This means that you can stop paying premiums completely in return for a reduced death benefit and no cash saving. You may also be able to convert the
If unexpected expenses come up and you can’t pay your life insurance premium, you should know the possible consequences. The effect depends on the type of policy and coverage you have and the policy terms and conditions. Term: If you stop paying premiums, your coverage lapses. Permanent: If you have this type of policy, you will have the following choices: Cash out the policy. This means that you can stop paying the premium and collect the available cash savings. You will no longer be covered by life insurance, but you will at least save some of the proceeds of the policy. You may, however, have to pay taxes on some of the cash value if the sum exceeds what you have paid in premiums. Non-forfeiture options There may be a “reduced paid-up” option. This means that you can stop paying premiums completely in return for a reduced death benefit and no cash saving. You may also be able to convert the
If unexpected expenses come up and you can’t pay your life insurance premium, you should know the possible consequences. The effect depends on the type of policy and coverage you have and the policy terms and conditions. Term: If you stop paying premiums, your coverage lapses. Permanent: If you have this type of policy, you will have the following choices: Cash out the policy. This means that you can stop paying the premium and collect the available cash savings. You will no longer be covered by life insurance, but you will at least save some of the proceeds of the policy. You may, however, have to pay taxes on some of the cash value if the sum exceeds what you have paid in premiums. Non-forfeiture options There may be a “reduced paid-up” option. This means that you can stop paying premiums completely in return for a reduced death benefit and no cash saving. You may also be able to convert the
If unexpected expenses come up and you can’t pay your life insurance premium, you should know the possible consequences. The effect depends on the type of policy and coverage you have and the policy terms and conditions. Term: If you stop paying premiums, your coverage lapses. Permanent: If you have this type of policy, you will have the following choices: Cash out the policy. This means that you can stop paying the premium and collect the available cash savings. You will no longer be covered by life insurance, but you will at least save some of the proceeds of the policy. You may, however, have to pay taxes on some of the cash value if the sum exceeds what you have paid in premiums. Non-forfeiture options There may be a
If unexpected expenses come up and you can’t pay your life insurance premium, you should know the possible consequences. The effect depends on the type of policy and coverage you have and the policy terms and conditions. Term: If you stop paying premiums, your coverage lapses. Permanent: If you have this type of policy, you will have the following choices: Cash out the policy. This means that you can stop paying the premium and collect the available cash savings. You will no longer be covered by life insurance, but you will at least save some of the proceeds of the policy. You may, however, have to pay taxes on some of the cash value if the sum exceeds what you have paid in premiums. Non-forfeiture options There may be a
If unexpected expenses come up and you can’t pay your life insurance premium, you should know the possible consequences. The effect depends on the type of policy and coverage you have and the policy terms and conditions. Term: If you stop paying premiums, your coverage lapses. Permanent: If you have this type of policy, you will have the following choices: Cash out the policy. This means that you can stop paying the premium and collect the available cash savings. You will no longer be covered by life insurance, but you will at least save some of the proceeds of the policy. You may, however, have to pay taxes on some of the cash value if the sum exceeds what you have paid in premiums. Non-forfeiture options There may be a
