INSURANCE FOR ASIAN AND INDIANS

Life Insurance for Asian-Indians
With its life insurance sales in the United States up over 40% for two consecutive years, New York Life achieved the number one rank in market share for new life premium in 2002, according to the association that compiles market data from among the 77 largest insurers. Many people think that life insurance is only for those with families. While it is true that life insurance can help provide for the needs of dependents when you pass away, it's also important for someone starting out - or for someone who's starting over.There are many different kinds of life insurance for many different kinds of protection needs.Term is the most basic kind of life insurance. It provides affordable protection for a pre-defined period of time, so it is often used to serve temporary protection needs.

Permanent life insurance, on the other hand, is used when protection needs are more long term. There are many kinds of permanent life insurance, each of which has unique features that make it appropriate for certain situations. The two main categories of permanent life insurance are fixed and variable. Fixed life insurance products accumulate cash value at a pre-defined, guaranteed minimum interest rate or guaranteed cash value while variable universal life products are designed to provide an insurance benefit under your policy, but they do not guarantee a minimum rate of return. They will fluctuate up and down depending on performance of the applicable investment divisions.

Survivorship life is a life insurance policy that covers two individuals and provides a life insurance benefit after the death of the last surviving insured. Survivorship policies can be whole life, universal life, or variable universal life.Without proper planning, the IRS could be the single largest beneficiary of your estate.

Do you want to be a millionaire?
You may already be one — or at least you're on your way: building up net worth in your home, retirement accounts and other assets. The real challenge will be hanging onto your wealth. Without planning, a chunk of your money could go to the IRS at your death. While estate taxes may be inevitable, there are ways to conserve — or at least replace — a portion of your estate. One effective tool to help protect your net worth is a survivorship life insurance policy. More on that in a moment.

Will you have an estate tax problem at your death?
Maybe. Our relentlessly booming economy has created unprecedented wealth — and a number of people with sizable estates. In 1975, for example, 350,000 households boasted net worth in excess of $1 million. Today, that once-exclusive Millionaires Club numbers more than 3.5 million. Moreover, if the economy keeps clicking along at its present pace, that figure should hit 5.6 million households by 2005The majority of millionaires aren't limo-riding celebrities. According to Tom Stanley, author of "The Millionaire Next Door," most people worth more than $1 million worked hard all their lives, and steadily saved their money. You could be a millionaire — if not already, certainly during your lifetime. That could well mean estate taxes at your death.
Estate tax basicsUnder today's tax laws, here are several factors you should keep in mind: You can transfer a portion of your estate, tax free, to your heirs at your death. If you die in the year 2000, the exclusion amount is $675,000, with the exclusion gradually increasing to $ 1,000,000 by the year 2006. If your estate exceeds that amount, estate taxes may be due. The bigger your estate, the bigger the estate tax bite. At the top level, estate taxes could run as high as 55%. You can transfer your entire estate to your spouse at your death with no tax liability at that time, if exclusion is not met, and provided your spouse is a U.S. citizen. If you do this, the estate may be subject to estate tax at your spouse's death. Your heirs may get hit with a estate tax bill.