Dental Insurance - What You Need To Know
Today dental insurance has established itself as a must-have benefit. Even most small companies offer dental insurance today to recruit and retain workers. Does one need Dental Insurance? This question is asked by us in parlance with any kind of insurance. Well, insurance is a tool that offsets financial losses due to accidents or incidents or unforeseen circumstances. With this in view, insurance is always advocated but if one is young and healthy and doesn't need to visit a dentist more than twice a year, dental insurance will not be a requirement, since the premium for such insurance may be more than the annual tooth maintenance bill.
People with a turbulent dental history are advised to purchase dental insurance or join a discounted dental plan for the simple reason that dental bills can turn out to be very steep. Millions of Americans are undergoing root canal and cavity procedures despite the fluoride in drinking water. Dental health in the USA has not been of very high standard over the decades. Dental health depends upon a variety of factors including dental hygiene, stress, personal eating habits, nutrition etc.
The programs of dental coverage available are Indemnity Plans, Preferred Provider Plans, HMO Plans and Discount Plans
Dental Indemnity Insurance Plans
These are normal, traditional insurance coverage plans where you get a percentage of your dental bills covered for a monthly fee or premium. Normally a indemnity plan covers 100% of preventive services, 80% of restoration services and 50% of major treatment like orthodontics.
Dental Preferred Provider Plans
These plans cost an average of $40 per month and give you highly discounted rates of dental procedures within the specified network. A few benefits are available outside the network also. These plans are regulated by state insurance departments and fall in the insurance category.
HMO Dental Insurance
These insurance plans are also known as capitation plans. They operate like Health Maintenance Organizations (HMO). These are also regulated by state insurance department and cost between $20-$40 a month.
Dental Discount Plans
Discount dental plans are like clubs where you get the best deals when you show your membership card. These are again network based. They give best value to individual and family memberships. This membership is only purchasing a discounted access to a network dentist and is not considered insurance.
Thursday, May 29, 2008
Life Insurance Trusts - Asset Protection
Many people do not realize that the value of their life insurance upon their death becomes a taxable event. Let's say you have property, cash and investments worth $2 million and you also have a life insurance policy that will pay your children $1 million upon your death. That $1 million will be included when the Internal Revenue Service is calculating the amount of your estate taxes; that is, if you just leave a Will and/or you don't plan for that eventuality now.
If you had an "A-B" Living Trust, your exemption would be over $2 million but that would still leave you with the $1 million life insurance policy pay out, which would be taxable.
There is a way to avoid all of this pain and it's called a Life Insurance Trust. Your insurance policy becomes an asset of your trust and the premium to be paid upon your death would be designated as "gifts." Since you are allowed to give gifts of up to $10,000 per year non-taxable to whomever you wish, the premiums would be divided up in lots of $10,000 gifts each year for each of your children and your spouse, or whomever you designate, thus taking it completely out of your estate. A trustee is assigned to this trust just like in a Revocable Living Trust.
Upon your death the proceeds of the life insurance would then go tax free to your children and you could also provide for your spouse and other family members as well.
Wealth and asset protection is not only for the wealthy. These powerful, yet simple strategies should be considered by anyone with a family, business or property.
Many people do not realize that the value of their life insurance upon their death becomes a taxable event. Let's say you have property, cash and investments worth $2 million and you also have a life insurance policy that will pay your children $1 million upon your death. That $1 million will be included when the Internal Revenue Service is calculating the amount of your estate taxes; that is, if you just leave a Will and/or you don't plan for that eventuality now.
If you had an "A-B" Living Trust, your exemption would be over $2 million but that would still leave you with the $1 million life insurance policy pay out, which would be taxable.
There is a way to avoid all of this pain and it's called a Life Insurance Trust. Your insurance policy becomes an asset of your trust and the premium to be paid upon your death would be designated as "gifts." Since you are allowed to give gifts of up to $10,000 per year non-taxable to whomever you wish, the premiums would be divided up in lots of $10,000 gifts each year for each of your children and your spouse, or whomever you designate, thus taking it completely out of your estate. A trustee is assigned to this trust just like in a Revocable Living Trust.
Upon your death the proceeds of the life insurance would then go tax free to your children and you could also provide for your spouse and other family members as well.
Wealth and asset protection is not only for the wealthy. These powerful, yet simple strategies should be considered by anyone with a family, business or property.
Provide A Solid Base To Your Future With Insurance
The annuity is a contract with an insurance company in which the applicant may opt to receive cash payments on tax-deferred retirement income or an ongoing basis. There are various types of annuities which include immediate annuities, tax-deferred annuities, split annuities, college gift annuities and charitable gift annuities. Each and every annuity provides different benefits and features that will help in personal situations of the investor. The investor may be young and looking to invest for the future or he/she may be close to retirement and opt for immediate revenue.
In such cases, the split annuity will surely be beneficial for the investors as it is really a combination of a single-premium deferred annuity and a single-premium immediate annuity. The investors receive the benefits of the immediate annuity in which the policy provides you a steady stream of cash that is consistent, safe, and guaranteed, regardless of the conditions of market. The payments from the insurance company may be based on either quarterly, semi-annually, or annually basis. The choice is completely dependent on the investors. The taxes make up only 18 percent, depending on your tax bracket, of this flow of money. Thus, the taxes on the continued payments are negligible.
An additional aspect of a split annuity is the tax advantage the investor receives, which is the tax-deferred annuity portion of the agreement. The investor will be able to earn a tax-deferred growth on his or her incomes. The preliminary interest rate of return will be set for a defined period, such as one year, three years or five years. However, after that period, a new time period is laid down.
One more benefit is that the original principal is restored after the initial time period in the contract, with proper configuration and planning. However, this benefit is only true for the immediate portion of the annuity and not for the deferred portion of the investment. This restoration allows the investors to start the process at prevailing interest rates. The investors are restricted to receive immediate benefits for a period of three years to twenty years. However, the funds in the deferred portion may be extracted, but there are limitations and the investors should check this with their insurance company for getting more details on it.
For instance, if you divide Rupees 100000 evenly into the split annuity in which half is tax deferred and the other half is received immediately, you reap larger gains than if you place the funds into a single investment option. If the Rupees 50000 is put into the immediate portion of the annuity at seven percent then the investor will be provided more than Rupees 6000 every year for 10 years, which of course is significantly higher than the principal amount. The process can be started over, if the other Rupees 50000 would be invested in the deferred portion of the annuity contract and grow back to the original Rupees100000.
An added advantage, which is common to all annuities, is the death assistance. In any case, if the primary policyholder passes on, his or her beneficiaries will continue to receive the rewards of the split annuity agreement
The annuity is a contract with an insurance company in which the applicant may opt to receive cash payments on tax-deferred retirement income or an ongoing basis. There are various types of annuities which include immediate annuities, tax-deferred annuities, split annuities, college gift annuities and charitable gift annuities. Each and every annuity provides different benefits and features that will help in personal situations of the investor. The investor may be young and looking to invest for the future or he/she may be close to retirement and opt for immediate revenue.
In such cases, the split annuity will surely be beneficial for the investors as it is really a combination of a single-premium deferred annuity and a single-premium immediate annuity. The investors receive the benefits of the immediate annuity in which the policy provides you a steady stream of cash that is consistent, safe, and guaranteed, regardless of the conditions of market. The payments from the insurance company may be based on either quarterly, semi-annually, or annually basis. The choice is completely dependent on the investors. The taxes make up only 18 percent, depending on your tax bracket, of this flow of money. Thus, the taxes on the continued payments are negligible.
An additional aspect of a split annuity is the tax advantage the investor receives, which is the tax-deferred annuity portion of the agreement. The investor will be able to earn a tax-deferred growth on his or her incomes. The preliminary interest rate of return will be set for a defined period, such as one year, three years or five years. However, after that period, a new time period is laid down.
One more benefit is that the original principal is restored after the initial time period in the contract, with proper configuration and planning. However, this benefit is only true for the immediate portion of the annuity and not for the deferred portion of the investment. This restoration allows the investors to start the process at prevailing interest rates. The investors are restricted to receive immediate benefits for a period of three years to twenty years. However, the funds in the deferred portion may be extracted, but there are limitations and the investors should check this with their insurance company for getting more details on it.
For instance, if you divide Rupees 100000 evenly into the split annuity in which half is tax deferred and the other half is received immediately, you reap larger gains than if you place the funds into a single investment option. If the Rupees 50000 is put into the immediate portion of the annuity at seven percent then the investor will be provided more than Rupees 6000 every year for 10 years, which of course is significantly higher than the principal amount. The process can be started over, if the other Rupees 50000 would be invested in the deferred portion of the annuity contract and grow back to the original Rupees100000.
An added advantage, which is common to all annuities, is the death assistance. In any case, if the primary policyholder passes on, his or her beneficiaries will continue to receive the rewards of the split annuity agreement
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