What if the worst were to happen and you were not here tomorrow? How would your survivors, especially your children, get by? Life Insurance can ease your worries as you build a secure future for you and your loved ones: provide the funds necessary to pay monthly bills and maintain the lifestyle and comforts your family is accustomed to. Saying goodbye is hard enough. Financial hardship is the last thing you want your loved ones to face.
The right life insurance policy has to be specially designed for you and dependent on your personal and financial needs.
As your life changes, your life insurance coverage may need to change in order to adapt to your current needs.
Some life transformations that may require a policy tune-up include the following:
- You recently married or divorced
- You have a new child or grandchild
- You have opened or expanded a business
- Your health or your spouse’s health has deteriorated
- You are providing care or financial assistance to a parent
- Your child or grandchild requires assistance or long-term care
- You recently purchased a new home
- You are planning for a child or grandchild’s education
- You are concerned about retirement income
- You have refinanced your home mortgage in the past six months
- You or your spouse recently received an inheritance
- You have a sizable estate
Common Types of Life Insurance
There are several different types of life insurance policies available — the most common include the following:
Term Life Insurance
Term life insurance provides protection for a specified period of time. If you do not currently have life insurance, term can be a good place to start. It is generally less expensive and is available with fixed premiums (determined by life insurance company after medical exam) up to 30-year period. Furthermore, there is an option to convert term life insurance to permanent coverage (Whole Life or Universal Life).
Whole Life Insurance
Whole life insurance is a form of permanent life insurance that remains in force for your entire lifetime, if premiums (fixed for life) are paid as specified in the policy. Whole life insurance could be an investment opportunity, as majority of that type insurance policies also build cash value over time.
Universal Life Insurance
Universal life is a form of permanent life insurance characterized by its flexible premiums, face amounts. Universal life policies build cash value, which is earned at interest rate that may adjust periodically, but is usually guaranteed not to fall below a certain percentage.
Advantages of Life Insurance
Life insurance provides assurance for your family after you are gone. Besides that, many life insurance options (riders) offer other benefits and investment opportunities you can take advantage of while you are living.
Advantages of life insurance death benefit: When you pass away, your life insurance provides income tax-free money to your named beneficiary or beneficiaries that can be used to pay funeral expenses, debt, tuition, estate taxes or virtually any financial need. Your policy can help provide security for your business as well, 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 is tax-deferred, meaning – you do not pay taxes, unless money is withdrawn. Loans or withdrawals can be taken against the cash value of a whole life insurance policy to help with expenses.
Please contact our agency for more information at 708-433-7777!