Saturday, November 24, 2007

GIFT AND CHILDREN POLICY

Can I gift a policy?

Yes. By contacting the insurance company you can make an absolute assignment of the policy. The person to whom you assigned it, then becomes the owner. You should check with your tax advisor to find out if the gift makes you responsible for paying gift taxes

Should I buy life insurance on my children?

If you have extra money, and want to give them a base of life insurance to “start them off”, it is okay. Otherwise your life insurance can be better spent for adequate coverage on the person who brings in income to support the family.

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