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LIFE
INSURANCE
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on the growth of the cash value unless the money is withdrawn.
- Loans
2 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.
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.
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.
Life Insurance Quote Request Form
Click
here
to access our secure quote form and we will contact you.
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