Life Insurance Policy For Child – Why Buy Life Insurance For A Child?
If you have a child that is dependent on you, it is important to purchase life insurance for a child. This is one of the best ways that parents can ensure that their children are cared for when they are unable to care for them. However, there are several options available and not all will cover what your family needs. You will need to decide which type of coverage best suits your child’s needs before making an investment in their life insurance policy.
A whole-life policy offers the most comprehensive form of life insurance coverage available. This type of insurance policy is designed to pay a fixed amount to the beneficiary should you die. The benefit amount usually depends on the age of your child when you purchase the policy. However, there are a few companies that offer guaranteed funding for whole life insurance policies, which means your payment will be made no matter what happens in the future.
Deferred whole life insurance offers participants a fixed benefit payment schedule starting at age 22. This type of policy is similar to whole-life insurance in that it pays out a specific amount of money and only if your child dies early. If your child lives longer than expected, your payment will still be made and will continue for as long as he or she lives.
This is a great option for parents who are still working and plan to make up payments on their policy when they reach retirement. This makes it a great investment because your child can still get the money in the long run. You also do not have to worry about making regular payments and can make a lump sum payment if you are able.
Some companies even offer limited-pay whole life insurance policies that will pay out only if your child dies early. These policies essentially cover death benefits only and do not offer any cash value when your child reaches the age of adulthood. The amount of coverage paid out depends on a number of factors such as the age of your child and how much you pay toward your premium each month.
Whole life policies are good for anyone who is in a position to make regular payments. However, they may not be a great option for most parents. If you are only able to make one payment of insurance each year, it can be more difficult to afford. If you have more than one child, you may want to consider purchasing several different types of policies so that your children are covered for multiple events.
Remember that life insurance for children can benefit both the parent and the child. However, you may want to consider the coverage offered by each type of policy so that you are covered no matter what happens in your child’s life.
Source: EzineArticles – Life Insurance Policy For Child – Why Buy Life Insurance For A Child?
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Title: Can I Carry My Social Security Benefits Out To Retirement?
For many people, their Social Security benefits are the primary source of income in their golden years. But there's a catch: After retirement benefits cannot be withdrawn and transferred to another form of investment. If this keeps you up at night, this article will give you some solutions.
Which benefits are covered in Social Security? You get your retirement benefits under a separate system for those who had paid into the program before age 62. If you get Social Security benefits later, you'll be in the other system that makes up the base of the retirement program. In general, that means the larger your initial contributions, the larger your benefit if you retire at full retirement age.
You get some benefits under both systems: Benefits from one system replace part of those lost from another. For example, if you are collecting Social Security and you were also receiving railroad-pension benefits while working for a railroad company, those pension payments may be reduced as a result of your earlier payments to Social Security.
The rules for eligible retirement benefits are complicated. If you think that might be you, this article will help.
A single retiree can get a combination of Social Security and pension benefits from one employer and up to two employers if he or she worked for many years. The amount of income from each is subtracted from the total. Splitting the payments allows an individual to take all his or her Social Security future retirement benefit without reducing the pension that had been earned earlier. The total income used in this calculation is called the "full retirement age" benefit . However, individuals must wait to claim the pension from their work.
Only some people have this privilege. It requires a minimum of 10 years of work for the railroad company before reaching age 65. Also, the worker cannot receive Social Security benefits at retirement if he or she has already reached full retirement age . The combination is only allowed if your combined pre-retirement income was less than $49,092 (for 2017). You will receive a one-time payment from Social Security back pay for all payments that would have been received after this date if you are not already collecting a pension. There is no guarantee that you will receive this benefit; it's up to Congress to decide whether they want to continue this program in future years.
This opportunity is offered in the future for workers who choose to postpone their Social Security retirement payments by up to four more years. Currently, you can apply for early retirement with reduced benefits if you are 62 years old and expect to live another 14 or more years. But about half of those who take early retirement will see that reduction reversed before they die. This is true even for people who were born later.
To give you some figures: Someone retiring at age 62 in 2017 will see an average benefit increase of about 20% when he reaches full retirement age . If that individual had waited until age 70 , his increase would be 44%. The average increase for each year of waiting increases in the future.
A worker who had earned five years of credit toward a pension through work with the railroad company, was entitled to a benefit of $1,000 per month if he retired at age 66. If he took his Social Security retirement benefits at age 62, he would also have received a monthly payment of $1,000. However, both payments would be reduced by two-thirds because they were from different systems.
When he reached full retirement age in 2022, his pension benefits would have been $650 per month. But his Social Security payment would have grown by that time to be worth $2,002 per month.
Conclusion: By waiting to claim their Social Security benefits, many retirees have allowed their pension payments to go up. This is because the railroad-pension system covers so few people and takes a large chunk of each of their payments after age 62.
If this happens, how will the benefit amount change? The Social Security Administration (SSA) cannot tell you exactly what your payment will be as a result of waiting until full retirement age. But they do have some information about this on their website at ssa.gov .
How much income does an eligible retiree get from Social Security? Social Security payments are made monthly for all eligible people who are retired or disabled and under age 65.