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What You Need to Know About Life Insurance

Life insurance provides your family peace of mind and financial security after you’re gone. It can help pay for funeral expenses, debts such as mortgages or credit card bills, and tuition costs for children’s college.

It can also pay for your final expenses and provide a tax-free death benefit. Your beneficiaries can use it for any purpose they choose, but it is important to consider the cost and coverage before buying. For more information, click the Learn More.

A death benefit is a payout the insurance company guarantees to beneficiaries upon the insured’s death. Beneficiaries are identified in the policy and might include a spouse, children, or other loved ones. The death benefit depends on the coverage amount and the insured’s age and health at the time of purchase. Some policies also provide a flexible face value, which allows the insured to increase or decrease the death benefit depending on their needs.

To claim the death benefit, beneficiaries must identify which life insurance company holds the deceased’s policy or annuity and contact them. The policyholder has a responsibility to share this information with the beneficiary when they name them, and most companies have a form for beneficiaries to fill out. It typically includes the insured’s policy number, name, Social Security number, and a certified copy of the death certificate. The life insurance company will review the form and confirm that the cause of death is covered (suicide or death related to illegal activities usually aren’t). If it approves the claim, it will send the payout to the beneficiary in a format of their choice.

A death benefits payout isn’t taxed unless the estate of the insured has an income tax liability, and even then, it’s usually only a small percentage of their total estate. This is because the law treats a life insurance death benefit as reimbursing the beneficiaries for the loss, not as income. It’s important to choose a policy with low commissions and fees, or “load,” so your beneficiaries get the most out of your investment.

The most common payout option is a lump sum payment. However, there are several other ways to distribute the death benefit. Beneficiaries can accept an annuity that pays periodic payments for a fixed period of time or until the proceeds are depleted. They can also choose a retained asset account that acts as a bank holding the money until they need it. If they want to give a portion of the death benefit to charity, it’s best to do so through a trust to avoid taxation.

It pays a tax-free death benefit

A life insurance policy pays a death benefit that is tax free for its beneficiaries. This benefit is based on the amount of premiums paid, or “policy basis.” However, there are some exceptions that can cause a life insurance payout to be taxable. For example, if the owner sells the policy or takes out a loan, some of the death benefit payout might be taxable. Another exception is if the beneficiary is named an estate, in which case the IRS might impose income taxes on any interest earned by the policy.

The term of a life insurance policy can range from one year to up to 80 years. The premium for a term policy is usually higher than for whole life policies because of the risk that the policy holder will outlive the duration of the policy. A death benefit for a term policy is only payable if the insured dies during this period.

Some life insurance policyholders choose to take out loans from their policies for a variety of reasons. These can include paying for child or education expenses, or to supplement other income sources. However, a loan from a life insurance policy is not considered taxable income. The amount withdrawn is less than the amount of premiums paid, or “policy Basis,” and the remainder is the accumulated interest or investment gain. If the policyholder dies with an outstanding loan, the death benefit will be reduced by the outstanding loan amount.

In addition to the death benefit, life insurance offers a number of other benefits, including the ability to transfer ownership and borrow against cash value. This can be beneficial for people who want to avoid estate taxes, or for those with complex financial situations.

The beneficiaries of a life insurance policy can be individuals, or entities such as trusts and companies. The beneficiary can also be designated to receive a percentage of the death benefit, which is commonly used for children’s education, mortgage payments and other debts. The death benefit can be paid in a lump sum or over time.

Many factors affect a person’s life insurance rates, but the most important factor is a person’s health. Age, weight, smoking status, health history and lifestyle are all taken into account by insurers to determine a person’s life expectancy.

It pays a lump sum

Life insurance provides a lump sum of money to beneficiaries when the policy holder dies. This amount can be used to pay off debts, support children’s education, and cover funeral expenses. There are many different types of policies, so it’s important to choose one that suits your needs and budget. A financial professional can help you choose the right plan.

When you die, your beneficiaries will need to file a claim with the insurer to receive the death benefit. This process can take up to a month, so it’s important that beneficiaries have all the necessary documents in order. This includes certified copies of the death certificate, which can usually be obtained from the mortuary or the funeral home. It may also be helpful to get a copy from the county or state records department, especially if the death was suspicious.

The payout from a life insurance policy can be made in a lump sum or in installments. The lump sum option is preferred, because it eliminates the need for a beneficiary to pay income taxes on the interest. In addition, a lump sum is easier for the beneficiaries to manage. If a beneficiary decides to receive the payout in installments, they should be aware that they will have to pay tax on any interest earned on the unpaid portion of the policy.

In a whole life insurance policy, the cash value accumulates as you pay premiums. This can be accessed via loans and withdrawals for a variety of purposes, like paying for college tuition or a down payment on a house. However, you should be aware that these activities will reduce the available cash surrender and death benefits.

The cost of a Life Insurance policy depends on several factors, including the age and health of the applicant. A healthy young person will usually pay lower rates than someone who is already ill. Other considerations include the length of the term and the type of coverage. Term life insurance will expire at a certain age, while whole life insurance lasts for as long as you pay your premiums.

It pays a dividend

Life insurance offers peace of mind that your family will be taken care of financially should something happen to you. But there’s one additional feature that can help make life insurance even more appealing: dividends. Life insurance dividends are extra payments made by the life insurance company on an annual basis that can be reinvestable or used to reduce the premiums on your contract. They’re based on the company’s financial performance and may vary from year to year.

Life Insurance Dividends are a portion of the surplus of a whole life insurance policy. This surplus is the difference between investment returns and claims expenses. The surplus is usually paid to policyholders once the company has experienced a good year. This can be in the form of a higher death benefit or cash value, or both. In some cases, the policyholder can choose to have the surplus reinvest into the contract to add more coverage or earn interest.

The amount of dividends you receive depends on the insurance company’s profitability for that year and the policy’s coverage. The higher the coverage, the greater the potential for a higher dividend payout. Some companies may offer a minimum guaranteed interest rate for the dividend accumulation account. However, these rates can vary significantly. Barry Flagg, president and founder of the life insurance analytics company Veralytic, says that declared dividend interest crediting rates for the most common whole life policies currently range from as high as 6% to as low as 3.38%.

In most cases, the dividends you receive will not be taxed unless you take them in cash. Otherwise, they will be credited to your account and can be withdrawn or borrowed against in the future. In addition, if you choose to reinvest the dividends, you can earn tax-exempt growth in the cash component of your policy or buy additional coverage as “paid-up additions.”

Many people don’t know that life insurance also pays out a dividend, but it is one of the most important features of a participating whole life policy. These dividends represent the favorable experience of the insurance company, resulting from excess investment earnings, favorably priced mortality and expense savings. These dividends can be used to reduce the premium, increase the death benefit or accumulate at interest within the policy.

Real Estate

Real estate is a major industry that affects our daily lives. Its impact stretches from homeowners’ dreams to investors’ strategies.

Real estate includes the physical land and anything permanently attached to it, such as buildings. It also encompasses air rights above the land and underground rights below it. Contact Real Estate Agents Savannah GA now!

Land is a physical entity that encompasses both the land itself as well as any permanent attachments, such as buildings or structures. These can be natural or artificial (man-made). Natural attachments include trees, minerals and crops, while artificial attachments can include homes, office buildings, apartments and garages. In addition, real estate includes air and underground rights above and below the land, respectively.

The zoning of real estate can also vary significantly, and this is what distinguishes it from personal property. Residential real estate is typically used for living purposes, while commercial and industrial real estate are used for business or professional purposes. In terms of building, commercial and industrial real estate can be further broken down into various types, including office buildings, shopping malls and warehouses. Industrial real estate can also include manufacturing facilities, factories and research centers.

Purchasing real estate can be a complex process, and it requires the expertise of a skilled real estate agent or broker. The real estate industry is one of the most important and lucrative industries in the world, and it is constantly changing as technologies, incomes and buying habits change. Understanding how to purchase land and the different types of real estate can help you make smart investment decisions.

Often, land can be more affordable than purchasing an already-built home, especially if it’s being sold as an empty lot. But before you can build a house on it, you must go through the process of getting the necessary permits and approvals. This is referred to as the entitlement process, and it can be complicated and time-consuming. But with the right skills and experience, you can streamline this process and get your project started as quickly as possible.


The most common real estate is the land itself, but buildings also are a part of the property class. These can be residential or commercial, and they include houses, apartment buildings, malls and offices. These properties are leased and not owned outright by investors, unlike residential property, which is usually occupied by a family or individual.

The residential category includes single-family homes and multifamily homes. The latter includes condos, co-ops, townhouses, duplexes, triple-deckers and quadplexes. It also includes high-value homes and holiday houses. The commercial category comprises shopping centers and strip malls, medical and educational buildings and offices. It also includes industrial “behind the scenes” properties, such as fabricating buildings and warehouses.

Vacant land and vacant lots are not considered real estate because they don’t have buildings on them. However, if someone has a contract to build on the land, it is considered real estate. This is why developers often use it as a parking lot or to construct apartments and other residential buildings.

Commercial properties are divided into classes, which reflect their quality and market value. A class A building is the highest quality, and it is usually a landmark that is designed by a well-known architect. These buildings command the highest rents and often convey prestige to the owners.

Class B buildings are older and less desirable, and they have lower appraisals than class A buildings. These properties are often targeted for restoration. Class C buildings are the lowest quality, and they are typically located in less-desirable areas or are a dilapidated structure.

This category is a catch-all for special-use buildings that don’t fit into the other eight categories. These buildings could be sports arenas and stadiums, museums and theaters, zoos, theme parks and waterparks. It may also include schools and churches, and it could even include some hospitality structures.


Leases are contracts between a property owner (lessor) and a tenant that give the latter use of the property for a set period of time in exchange for regular payments (often called rent). Real estate leases come in many forms, and they can have varying structures and terms. Some of these can have serious consequences for both parties if they are violated.

Residential leases are used to rent apartments and houses. These leases typically outline occupancy rules and maintenance responsibilities. Commercial leases are used to rent offices, warehouses and retail space, and they may have more complex provisions than residential leases. Leases may be written or oral, but if they have a term of more than one year, the statute of frauds requires them to be in writing.

Landlords often choose to lease property rather than sell it because the former is a more stable investment. However, landlords must be sure to select the right lease structure for their needs and market conditions. Leases are usually for one year, but the length of the lease can be negotiated between the lessor and the lessee.

A gross lease gives the landlord control of operating expenses and allows them to recoup increases in those costs from the tenants. Alternatively, they can opt for a modified gross lease that gives the landlord a broader range of negotiations with the tenant in order to pass along any decreases in operating expenses. Landlords can also include an escalation clause in the lease that calculates increase based on a base-year expense. This can help them avoid surprises from unexpected increases in taxes and insurance costs. It can be beneficial to both parties to negotiate this clause.


A mortgage is a loan that uses real estate as collateral. This is the most common way people buy property. It is used for commercial purposes, such as a warehouse or office building, and it is also commonly used for residential purposes, such as a home or condominium. When you take out a mortgage, you must pay interest on the loan. This can be a significant expense, so it is important to understand the financial implications of your decision.

In the United States, most homeowners purchase their homes with a mortgage. These loans are backed by the government or private lenders. They are typically paid back in 15 or 30 years, with a mixture of principal and interest. If you do not make your payments, the lender can foreclose on your home.

Before you purchase a property, be sure to assess your finances and credit score. It is also a good idea to save up money for a down payment. You can also find out the average cost of living in different areas before you choose a location. When you are ready to buy, you will meet with the seller, your lender and your real estate agent at a closing. During the closing, you will sign the mortgage agreement and pay any necessary fees. These materials are distributed by PGIM Real Estate, the real estate investment management business of PGIM, the principal asset management business of Prudential Financial, Inc. in the United States and by PGIM Limited in other jurisdictions. The information provided is for general reference only and should not be considered as investment advice.

Social Media

It’s no secret that social media has revolutionized real estate marketing. Real estate agents use social platforms to showcase listings, connect with potential clients, and generate leads. Unlike traditional advertising, social media allows real estate professionals to target specific demographics and interests. This allows them to increase ROI and reduce wasteful spending.

In the real estate industry, visual content is a must. Compelling images attract potential customers and evoke emotional responses, increasing engagement and driving home sales. Real estate agents often pair photos with descriptions that provide important details about the property. These details include square footage, rooms, and price. In addition, they may include a link to the property’s website for more information.

Another type of real estate social media post is testimonials from satisfied clients. These posts are a great way to build trust and credibility, as well as show that you have a proven track record. This is particularly important in a competitive market.

Lastly, real estate agents also use social media to share educational content about home maintenance and renovations. This content serves both prospective and past clients and helps establish the agent as an expert in their field.

TikTok is a popular platform for real estate professionals to showcase their work. The video format is perfect for sharing quick, eye-catching content about properties that is easy to digest on the go. Real estate agents can even promote their services on TikTok by participating in trending challenges and using relevant hashtags to get visibility.

Keeping up with a social media strategy can be time-consuming, especially for busy real estate professionals. A social media management tool like Statusbrew can help streamline the process by automating repetitive tasks and managing multiple accounts. It’s also a great way to create and schedule recurring content, so you never miss an opportunity to connect with your audience.