The
Value of Life Insurance
Assessing Your Need
Types
of Life Insurance
The
Value of Life Insurance
Life insurance is a crucial step in planning for your future
and the future of your loved ones. It can fulfill promises made
to your family if you are no longer around by providing a death
benefit to your beneficiaries in return for premiums paid to
the insurance company. Life insurance can also provide benefits
while you are living.
Advantages of the Death Benefit
Provides income tax-free money to your named beneficiary(s) that
can be used to pay funeral expenses, debt, tuition, estate taxes
or virtually any financial need you leave behind.
Can provide business security by enabling partners to buy out
the interests of a deceased partner and prevent a forced liquidation.
Advantages of Living Benefits The cash value growth of a permanent
life insurance policy is tax-deferred 1,
which means you do not pay taxes on the growth of the cash value
unless the money is withdrawn.
Loans2
or withdrawals can be taken against the cash value of a permanent
life insurance policy to help with expenses, such as college tuition
or the down payment on a home.
1
Accumulated growth may be taxable upon withdrawal. If the policy
is a Modified Endowment Contract (MEC), tax penalties may apply
prior to age 59 ½. Consult a tax advisor on your specific
situation.
2 Policy loans and
withdrawals reduce cash value and the death benefit and may
be subject to other charges outlined in the contract.
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Assessing
Your Need
The amount of life insurance you select should be dependent on
your personal and financial needs. We can assist you in determining
an appropriate coverage amount and help you decide on which type
of life insurance is right for you.
Generally, you should consider life insurance if you have:
A spouse
Dependent children
Aging parents or a physically-challenged relative who depends
on you for support
Retirement savings that is not sufficient to ensure your spouse's
future financial well-being
A sizable estate
A business
Life Changes — So Should Your Policy
As events happen in your life, your life insurance coverage may
need to change to adapt to your current needs. Some life changes
that may require you to reevaluate your coverage include: marriage,
divorce, a new baby, purchase of a new home and retirement.
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Types
of Life Insurance
There are several different types of life insurance products
available. The most common include:
Term Life Insurance
Term provides life insurance protection for a specified period
of time. If you do not currently have life insurance, term can
be a good place to start. It's generally less expensive than
permanent life insurance, and is available in varying term periods
with fixed premiums from a one- (annual renewable term) to 20-year
period (level term). Furthermore, term insurance is sometimes
convertible to permanent coverage, providing you with flexibility
as your needs change.
Whole Life Insurance
Whole life is a form of permanent life insurance that remains
in force during the insured person's lifetime, provided premiums
are paid as specified in the policy. Whole life insurance can
build cash value.
Universal Life Insurance
Universal life is a form of permanent life insurance characterized
by its flexible premiums, flexible face amounts and unbundled
pricing structure. Universal life can build cash value, which
earns an interest rate that may adjust periodically, but is
usually guaranteed not to fall below a certain percentage.
Variable Life, Annuties
(IRA'S), Mutual Funds, 401K, KEOG's, Simple, SEP and Variable
Annuities are also available.
Access our secure quote form and we will contact you.
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