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TIPS for Insurance
26 cards·by legacy-6008238323531776@noemail.invalid
4 things you must do to reinstate a policy:
3 pays and 1 prove
3 things that the incontestability period doesn't apply to:
3 eyed alien - Impersonation, no Insurable Interest, Intent to murder
Insurable Interest is 3 things:
Family, business (partner or key person), & Creditor/Debtor
Elements of an Insurable Risk:
5 musts and 1 CAN NOT (The Can Not is Catastrophic; must be predictable)
Partnership Buy/Sell Cross Purchase #'s
2/2; 3/6; 4/12
1035 Exchange:
LEA is your friend (Life, Endowment, Annuities)
For 1035 Exchanges you can go ...
downhill or same level but not uphill
Taxation Rule 1:
you either get the benefit on the front end or back end
Taxation Rule 2:
you never pay taxes on the same money twice
Life Insurance is not tax deductible but
benefits are tax-free
Dividends are never guaranteed and never taxable but ..
the interest they earn is taxable.
Disability premiums you pay are not deductible but
the income is tax-free
Medical expense & LTC premiums that are over 10% AGI are
deductible.
Self-employed are
100% deductible
Medical Expense Benefits are
tax-free
Life Free Look
14 days
Annuities Free Look
21 days
Health Free Look
10 days
Medicare Supplement & LTC Free Look
30 days
Life Grace Period
30 days
Industrial Life Grace Period
28 days
64 & over Grace Period
51 days
Group Life Grace Period
31 days
Health Grace Period
31 days
Monthly Premium Grace Period
10 days
Weekly Premiums Grace period
7 days