figured parents’d be the ones to most likely know this stuff. i tried looking into this but its just crazy. can someone suggest the kind of insurance policies that make the most sense? is there something which also doubles as a tax shelter?
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good question ! I have been searching for a good insurance policy for myself too. I am covered under my group insurance but the amount that my kins will get after my death is very small. Lets see what other parents share on this topic.
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There’s insurance in Pakistan? really!? cool! 
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We have one through husbands work and it seems pretty reasonable. I'm not sure about the tax shelter part.
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Dad thinks Life Insurance is the biggest scam ever. Husband gets it from his work so we didn't buy it, we just got a pretty good one from his work.
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offcourse there is insurance in Pakistan no country can practically work and trade without insurance .
hmmm my dad also says similar thing 
but the fact is there are certain perils and condition upon which insurance claim does not become payable the insured need to read his/her insurance policy carefully. These days the local regulator plays an active role and any insured can actually go to the regulator and lodge a complain against insurance company and this regulator really do listen and takes action against the insurance company.
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offcourse there is insurance in Pakistan no country can practically work and trade without insurance .
Lol i meant for families (health/life insurance)...
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yes there is 
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http://www.njilife.com/
and there are some more companies too
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We have banks in pakistan too
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:D
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I think as per my knowledge most forms of life insurance are not allowed in Islam becuase of the uncertainity factor.
I think it is called takaful which is allowed but you can research.
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NO way ..
you damn maadran peepal
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Toba toba…those Pakistanis…becoming too Americanized/westernized 
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Is the policy for yourself?
saw this for the tax advantages
- **You pay NO current income tax on interest or other earnings* credited to cash value. As the cash value accumulates, it is not subject to current taxation.*
- **You pay NO income tax if you borrow cash value from the policy* through loans. Generally, loans are treated as debts, not taxable distributions. This can give you virtually unlimited access to cash value on a tax-advantaged basis. Also, these loans need not be repaid. After a sizable amount of cash value has built up, it can be borrowed against systematically to help supplement retirement income and in many cases, never pay one cent of income tax on the gain. Several cautions regarding policy loans: First, loans are charged interest and policy loans can reduce the overall value of the policy. Second, the cash value is potentially subject to income taxes when there is a withdrawal from or surrender of the policy, or if a certain ratio of death benefit to cash value is not maintained. Third, if the policy is a modified endowment contract, the loan may be taxable.*
- *** Your heirs pay NO income tax on proceeds.** Your beneficiaries receive death benefits completely free of income taxation. Therefore, a $500,000 policy delivers $500,000 in benefits with no deductions and no withholding required. Note: This is true with all life insurance policies, both term and cash value.*
- **You can avoid potential estate taxes and probate costs* on policy proceeds, as long as the beneficiary designations and policy ownership are arranged in accordance with current law. For instance, if you (A) own your policy at the time of your death or (B) make your estate the beneficiary, the policy proceeds will generally be included in your estate at death. This can increase the value of your estate, triggering estate taxes. This situation may be avoided, however, by placing ownership and naming beneficiaries outside your estate. If structured properly, the policy proceeds will not be included in your estate. However, to avoid estate inclusion for existing policies, the policy must be transferred more than three years before your death. Consult your tax and legal advisors regarding your particular circumstances.*
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There's term life insurance and permanent life insurance. Term is for a fixed time, you pay a premium and if you die within say 20 years, a benefit is paid out to your beneficiary. If you don't die within your term, say 20 years, all the premium you paid is gone.
Permanent life insurance doesn't have a fixed term. You pay your premium for a long time but regardless of when you die, a benefit is paid out to your beneficiary.
The difference between the two is "Term life = money IF you die", "Permanent life = money WHEN you die". Now with permanent life, you can also choose to invest money into the life insurance company in addition to your insurance premium. The money you pay (Premium + any investment) is post tax so that doesn't help you with taxes immediately, but as time goes by 10 years, 20 years, 30 years, your investment portfolio grows at a standard historical rate. If you die any time, your benefit is whatever you bought for your premium part + the value of your investments. So, if you bought a $2million policy with your premium and you've made $100K in investments which have resulted in a value of $150K, your total death benefit is $2.15M. Now the best part is, as you get older, you can now borrow money at ridiculously low interest rates from your investments and you don't have to pay the loan back, the loan is paid back at the time of death. So basically, it's forced savings into a retirement account which you can access before you retire. GENIUS!
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There's term life insurance and permanent life insurance. Term is for a fixed time, you pay a premium and if you die within say 20 years, a benefit is paid out to your beneficiary. If you don't die within your term, say 20 years, all the premium you paid is gone.
So going by everything you said, Permanent life insurance is clearly the better option...but do ppl choose term life insurance? and why?
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thanks a bunch aahmed and njgal, thats exactly the stuff i wanted to know. 
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That hug looks so cheesy 
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So going by everything you said, Permanent life insurance is clearly the better option...but do ppl choose term life insurance? and why?
a term life insurance's USP is high payout to premium ratio
to give a comparison - the premium of term insurance is roughly 10% of permanent life insurance premium for the same amount and other factors like age etc constant
this insurance vehicle finds favor with persons who are just early into their family life. they want to ensure come whatever the circumstances the future of the family does not get compromised