Are you looking to protect your family’s financial security in the event of the unexpected or to preserve a legacy? We can help you secure affordable life insurance to protect what matters most.
Purchasing a life insurance can be a daunting task without a trained professional to guide you through the process. How important is life insurance? Did you know that the proceeds from a life policy generally provide a tax FREE death benefit to preserve your legacy or ensure loved ones will be financially secure in the event of the unthinkable. The mortgage must be paid, children may need to go to college and your family must maintain a certain standard of living to maintain the financial security you’ve worked so hard to achieve.
Which type of Life Insurance plan is right for me? Generally, there are four (4) types of coverage:
- Level Term (Pure Protection)
- Generally low initial cost.
- Fixed Death Benefit.
- Level Premiums.
- No Cash Value
- Whole Life (Protection and Cash Value)
- Fixed or Increasing Death Benefit
- Fixed Premium
- Universal Life (Protection and Cash Value)
- Flexible premiums.
- Flexible or fixed death benefit.
- Growth of cash value based on a declared interest rate.
- Indexed Universal Life (Protection and Cash Value)
- Flexible premiums.
- Growth of cash value based on index-lined interest rates typically subject to a growth cap and a floor.
How much life Insurance do I need?
It all depends on your unique needs. Our life “needs analysis” will help determine the proper amount of money that your family may need. This amount will vary for each family based on income levels, expenses/debts, assets and each unique estate planning situation. While many insurance professionals recommend a policy equivalent to five times your annual income, it may be best to speak with an one of our experts before deciding on an appropriate level of coverage.
Exploring Your Options: Term vs. Permanent Insurance
Before you purchase a policy, it is important to differentiate between the two basic types of life insurance referenced above. Permanent policies are designed to provide coverage permanently for ones entire life. These policies are designed for those whose needs will not change over time or may be looking to accumulate cash value within their policy as part of a tax advantaged retirement income strategy.
By contrast, Term insurance provides coverage over a specific period of time (typically 10, 15 or 20 years). After the pre-determined period has expired, the plan is normally renewable annually. Term policies do not accumulate cash value but do provide important coverage at a reasonable price. Some term policies can be “converted” to a permanent form insurance and this is something that should be reviewed by a professional.
Some permanent life policies come with the ability to purchase a “rider” to add a long-term-care benefit. This “living benefit” may allow the insured to accelerate death benefit proceeds to help pay for nursing care, assisted living facility, etc. We understand you have a budget! Our experts can help guide you to determine which coverage options may be appropriate. Please contact us today to discuss your needs further.