However, money deposition is mandatory. It is beneficial for people who want to save money, especially if a family has more than one child. It is best to buy good coverage of life insurance for every kid considering their futures.

     Buying insurance for your child is quick and easy, and costs less than adults. Through withdrawals or loans, your child's insurance policy can help pay for education, weddings, and provide a down payment for the first home, as well as an earlier use of death benefit if you have an eligible illness. In short, life insurance can help your child realize their aspirations and dreams at all stages of life.

    Life insurance from NLG has living benefits. These benefits are triggered if you experience a qualifying terminal, chronic or critical illness. This includes any qualifying event triggered by Coronavirus (COVID-19).

     This is the reason IUL is a good product and is highly recommended. Anyone (Some visas can be considered to be a US resident, and foreigners need to meet the "foreigner" purchase conditions) can purchase it. People can build education funds, retirement funds, prepare money for your wedding or house, or build a foundation for your business in the future.

    In the United States, any income, except for low-income, is subject to tax. Does life insurance not pay taxes? The answer is yes - it is tax-free.

    There is an advantage that benefits from life insurance, and that is tax-free, except, Modified Endorsement Contract (MEC).[3]

    According to the rules of the IRS (Internal Revenue Service, IRS), if the annual life insurance premium pay exceeds the maximum limit of the IRS, your insurance will be defined as a modified donation contract (MEC) account. Annuity products are similar, and life insurance compensation that the beneficiary finally receives will also lose the "tax-free" concession. As long as we pay attention to the premiums paid, we can completely avoid MEC contracts.

    Let ’s take a look. First, when claiming for life insurance, the death benefit is generally a large sum of money. Although the amount is large and often one-off, in the true sense, it is not income. Thus, there is no need to pay income tax. This means that no matter how high the face amount, the beneficiary does not have to pay a penny. Remember that this is insurance, not investment, and therefore tax-free. This is similar to housing insurance. You don't have to pay taxes when you claim housing insurance, but face amount of life insurance is very big. However, it is necessary to pay special attention to this. If the death benefit is not paid in one-off but is paid in installments, more interest will be generated. This is like the interest on bank deposits. This part of interest income is subject to tax.

    As for the cash value, it is actually more complicated. In general, there is no need to pay taxes, and it is easy to avoid tax legally. At this time, the specific situation needs specific analysis. This is also simple to understand because you pay the premium with after-tax income, and the value created by the policy, the cash value - which is the value-added to the insurance - is tax-free because the withdrawal is only with the principal or loan. The insurance contract was terminated at this time. It can also be understood this way: the cash value is also in the "insurance pool" because it is insurance, and taking money from it is tax-free.

     In summary, Life insurance can be the foundation for your financial future.

   Life insurance with financial management functions is also savings, investments, tax-free for income and benefits, so it is cost-effective. IUL can guarantee the bottom to be stabilized, suitable for long-term investment holdings, and not only for insurance but also a good way to manage money and accumulate assets.  

   Life insurance with Financial management can help people reach their destinies in life. Therefore, they are "Living Satisfied".

    This motivates someone to consider buying life insurance, and it was worth it. If only people know more about life insurance, they could open up to this new opportunity in life that comes with great benefits. Life insurance is cheaper when people purchase it at a younger age. At this point, please read my next blog: Understanding the timing of getting life insurance.

   If you would like to learn more information, please visit our website: www.lsefinance.com Please feel free to contact us if you have any questions.

Note:

1. NLG: There are additional benefits associated with our life insurance and annuity solutions provided by optional riders. We call them Living Benefits, and we have been providing them since 1937. Based on the product, living benefits can provide benefits should a qualifying terminal, chronic or critical illness or critical injury occur, or if your desire is to have an income that you cannot outlive.
2. Wikipedia: The S&P 500 stock market index, maintained by S&P Dow Jones Indices, comprises 505 common stocks issued by 500 large-cap companies and traded on American stock exchanges (including the 30 companies that compose the Dow Jones Industrial Average), and covers about 80 percent of the American equity market by capitalization. The index is weighted by free-float market capitalization, so more valuable companies account for relatively more of the index. The index constituents and the constituent weights are updated regularly using rules published by S&P Dow Jones Indices. Although the index is called the S&P 500, the index contains 505 stocks because it includes two share classes of stock from 5 of its component companies.

3. Wikipedia, a modified endowment contract is a cash value life insurance contract in the United States where the premiums paid have exceeded the amount allowed to keep the full tax treatment of a cash value life insurance policy. In a modified endowment contract, distributions of cash value are taken from taxable gains first as compared to distributions taken from non taxable contributions. In other words, withdrawals will typically be taxed as ordinary income (typically the highest rates for investments) instead of treated as non taxable income.

**All examples used here for illustrative purpose only

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