By Florida law, cash value in insurance and annuities are protected from creditors. While Florida residents are alive, the cash value of any owned insurance policy is exempt from creditors’ claims. Death benefits for policy beneficiaries are not protected.

Life Insurance Attorney

Life insurance is a legal contract where the insurer promises to pay a designated beneficiary upon the death of the person insured. Depending on the specific contract, other life events like terminal or critical illness may also activate payment to the beneficiary. The advantage of life insurance is that the policy holder has peace of mind, knowing in death, their loved ones won’t suffer financial hardship.

Life insurance contacts fall into two main categories: protection policies and investment policies. Protection plans generally pay a lump sum and are meant to provide a benefit in the event of a specific event. The main objective for investment policies are to facilitate growth of capital with premiums.

Everyone should make sure to buy life insurance while they’re healthy and make sure to tell the truth when doing so. If you’re already old or sick, rates are substantially higher. If approved for life insurance, the company has a designated length of time to review and potentially contest the application and deny the life insurance policy. This period of contestability varies by state. Some common material misrepresentations that might cause an insurance company to deny a life insurance policy includes occupation, employment history, age, income, tobacco usage, alcohol usage, assets, other life insurance policies and dangerous hobbies.

Life Insurance Denial

Have you been denied benefits after a loved one passed away? Do you feel you deserve compensation? Life insurance companies are profit-driven, and many times they’ll look for an excuse to deny your claim. Life insurance denial requires the expertise of an insurance law attorney that can negotiate or litigate against life insurance companies.

If you want to discuss your life insurance and benefits options, contact LaBovick Law Group at 1.888.777.3884, or fill out the free evaluation form on the left.

LaBovick Law Group serves clients throughout Florida, including in Palm beach Gardens, West Palm Beach, Boynton Beach, Boca Raton and throughout the Treasure Coast.

Annuities

Annuities are possibly the most popular financial product for asset protection. They are contracts made between investors and insurance companies. The money given to the companies, either in payments or one lump sum, can go untaxed. Then the money can be returned to the investor in several different ways. Brokers, some known to be dishonest, generally earn high commissions from annuities and will often encourage investors to buy them even when they’re not good investments.

Two kinds of Florida annuities exist: immediate and deferred. Immediate annuities are executed by giving insurance companies money, and then the companies promise to pay you in regular installments throughout your lifetime. Deferred annuities can be fixed or variable. Fixed annuities offer a guarantee to the investor from an insurance company promising to pay the investor a minimum rate of interest while their account is growing. Variable annuities involve investor choice of purchase payments among a variety of investment options, generally mutual funds.

Variable annuities are regulated by the Securities and Exchange Commission (SEC) whereas fixed annuities are not. Contact our office today to speak to one of our experienced attorneys to discuss your financial matter. We offer free consultations.

At LaBovick Law Group, our lawyers in west palm beach are devoted to assisting you in working through this complicated area of law.