Section 7702 is a section of the United States Internal Revenue Code that defines the tax treatment of life insurance contracts. Specifically, it sets forth the requirements that a life insurance policy must meet in order to qualify for tax-favored treatment. The section 7702 rules were put in place to prevent individuals from using life insurance policies primarily as a tax shelter rather than as a means of providing financial…

Life insurance policy lapse occurs when the policyholder fails to pay the required premiums on their life insurance policy and the policy terminates. When a policy lapses, the coverage provided by the policy ends and the policyholder is no longer entitled to any benefits or payouts from the policy. If a policy lapses and the policyholder passes away, their beneficiaries will not receive any death benefit payout from the policy.…

Did you know that there are different types of Permanent Life Insurance? Each with its own unique features and benefits. Here are some of the most common types of permanent life insurance: 1. Whole Life Insurance: This is the most traditional form of permanent life insurance, which provides coverage for the entire life of the insured person, as long as the premiums are paid. Whole life policies have a fixed…

Below are some of the reasons why life insurance cost can go up: 1. Age: As you get older, your life insurance premiums may increase because the risk of death increases with age. 2. Health: If your health deteriorates over time, your life insurance premiums may go up as well because the risk of death or illness increases. 3. Policy type: If you have a term life insurance policy, your…

In Seattle and the state of Washington, there have been recent efforts to establish a public long-term care insurance program that would be funded through payroll taxes. In 2019, the state legislature passed the Long-Term Care (LTC)Trust Act, which created a new program to provide long-term care benefits to eligible individuals starting in 2025. The program is designed to provide up to $36,500 in benefits to eligible individuals to cover…

The best time to buy life insurance is when you have a need for it. Life insurance is designed to provide financial protection to your loved ones in the event of your unexpected death. If you have dependents who rely on you financially, or you have debts or other financial obligations that would be difficult for your family to manage if you were to pass away, then it’s a good…