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If the decision to buy term or whole life insurance seems complicated, then you will most likely hate what comes next. There is a new form of life insurance called the life insurance no medical that has recently been introduced to serve the consumers need. As the name suggest, it offers what a normal life insurance offer minus the medical portion. Some examples of life insurance no medical policy:

o Deposit term Insurance

Deposit term insurance is a level term life insurance no medical policy that has a much higher premium for the first year than for subsequent years. The initial premium is significantly higher than the average premium needed to cover the cost of mortality during the term period. The excess front-end premium, the deposit, is then set aside to earn interest, and these dollars will be applied to reduce the premium payments required in the following years. The premium levels are set so that the entire deposit will be exhausted when the final annual premium is paid. In effect, t (more...)

If you are self-employed, your income is subject to a 15.3% self-employment FICA tax. Added to a 28% Federal income tax and a 5% state income tax, this could leave you paying nearly 50% of your income to the government. Fortunately, most self-employed people qualify to set up an HRA or Health Reimbursement Arrangement. An HRA can enable your business to reimburse you for health insurance and out-of-pocket medical expenses, and will save you an extra $3,000 each year.

Health Reimbursement Arrangements for the Self-Employed

An HRA is simply an agreement which enables your business to cover employee s medical expenses, including individual health insurance premiums, as a tax-free fringe benefit. This tax benefit was established in Section 105 of the IRS tax code in 1955, when General Electric lobbied for a business reimbursement rule to give it more flexibility in creating employee benefits.

Anyone set up as an S-corp or C-corp qualifies to set up an HRA. If you are a Schedule C or Sche (more...)