In North Carolina, as well as most other states, the money paid on a life insurance is not classified as income tax. Similarly, dividends paid on a life insurance policy are considered a return on the premium and not taxed. With these two generalizations…

If you currently have a long term care policy in effect, it would be better to research your options carefully before deciding it is time to switch term coverage plans. There are quite a few negative aspects to changing plans, and if you are looking at an…

Life insurance is available in two primary forms, term life and whole life. Term life policies are issued for a specified length of time, after which they can be canceled, extended, or sometimes converted to a whole life policy. Term life insurance does not…

Not only can you give a gift of life insurance, it may be one of the best gifts you could offer. And if you are buying the policy for a child, they may not appreciate the extent of the gift for years, when they realize that your gift has continued to grow…

The beneficiary on a life insurance policy can be anyone the policy owner wants it to be, including children, grandchildren or even an employer. The primary concern for the insurance company is that the owner of the policy has and insurable interest, regardless…

There are three ways to sell your life insurance policy. The most common form, called a cash out, isn't really selling the policy, but simply closing it out in exchange for the accrued value paid into the policy. This can be done with most whole life insurance…

Sure, if it is a whole life insurance policy. Because there is no guaranteed payout from a term life insurance policy, these are not well-suited as a savings tool, but whole life and cash value policies may be a perfect way to force yourself to save money.…

Under the definition of law, the court system has the power to change the beneficiary on a life insurance policy. With that power, establishing the beneficiary of some cases, such as when the beneficiary dies simultaneously, would be extremely difficult to…

The ownership of a life insurance policy can be important, especially if you want to avoid paying estate taxes on the benefits when the policy pays out. Many tax professionals will tell you that the easiest way to avoid paying taxes on a life insurance policy…

That depends on what type of life insurance policy you have, and how that policy is set up. Term life insurance does not usually allow the policyholder to borrow against the accrued value of the policy, but other types of life insurance do. The reason for…