Life insurance is used to protect the financial security of your family, business, or others that rely on you. It is designed to provide a benefit, typically a lump sum payment. Life insurance is one of the simplest and most important ways you can help protect the financial future of your family or business. Life insurance works by providing your beneficiaries with a tax-free benefit upon your death. This money can help them:
- Pay down or completely pay off loans and debts.
- Maintain a lifestyle and pay day-to-day expenses by replacing lost income.
- Pay for your children’s education.
- Cover last minute expenses like funeral costs, or other unplanned emergencies.
The cash benefit is tax free, to your beneficiaries when you die. The amount of money for which you are insured and the type of insurance you buy depends on your needs, and in some cases your health history.
Life insurance comes in many forms and can accomplish other, more complex, goals too. We can help you:
- Understand your personal needs for life insurance.
- Explain the different types of life insurance available.
- Recommend a policy that is based on your specific budget, goals, and how much coverage you need.
- Suggest options and riders that will enhance your policy and tailor it to your exact requirements.
Term insurance is the simplest type. It is temporary and covers you in case of death for a specified period of time. Like all life insurance, it pays a cash benefit to your beneficiary, tax-free. Term insurance is most useful serving a temporary need, such as when debt loads are high as with a mortgage. It is initially the most affordable insurance but the cost will increase dramatically as you age. If you want long-term coverage, a permanent insurance solution may be a better choice.
Whole Life is Permanent insurance, as it keeps you covered as long as you live. Over the long term, it will be less expensive than term insurance and will generate low volatility in the cash value based on the dividend scale of the insurer. Permanent insurance is a good foundation for your financial plan because it will carry you through your entire life. Permanent life insurance can form the basis of your financial plan.
Universal life insurance is Permanent Insurance, and is a unique design – it provides a tax-free death benefit plus the option to invest according to your risk tolerance whether high, medium or low and earn a tax-exempt return inside the policy. It is also used as a sophisticated financial planning tool for people with significant disposable income.
Jim is knowledgeable and will guide you through the process, answer any questions you may have and make things as simple and easy as possible.