In the inevitable event of death, life insurance equips surviving family members with increased financial security: the protection and peace of mind you are no longer able to provide. As a tax-free lump sum payment, life insurance can provide income to beneficiaries, as well as have an allocated amount for final expenses and debts.
The advantages of life insurance include:
An instant estate for your loved ones at a time when funds are most needed
Death benefits that are almost always non-taxable for named beneficiaries
Avoiding probate costs if you name a beneficiary other than your estate
Potentially offering your loved ones’ creditor protection through some life insurance plans
Building tax-advantaged capital for retirement purposes or providing liquid savings through some permanent life insurance plans
I can help you select coverage from a variety of life insurance options to meet the needs identified in your financial security plan:
Term insurance provides coverage for a specified number of years. In addition to the predetermined lifespan of this coverage, its rate is also predetermined, and guaranteed. Term insurance has no cash value, however, and its rate does spike after the specified term is over, should you want to extend your plan.
Whole life insurance provides set coverage for an individual’s entire life. Upon your death, your designated beneficiary receives your benefit. As part of a Whole Life insurance premium is invested, it’s also possible to build and access the cash value associated with this policy–before the end of your life. Most utilize Whole Life insurance to support loved ones later in life.
Universal Life insurance simultaneously covers an individual for their entire lifespan while investing in their savings. Like whole life insurance, one designates a beneficiary to receive the benefit of this coverage, come end-of-life. However, with Universal Life, any extra amount of money paid above the cost of the rate can be added to a tax-preferred savings account to grow. This surplus can alternatively be simply added to the death benefit, depending on the individual’s preference.
Life insurance can play a vital role in your financial security plan.
