Are you looking for a way 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 coverage to protect what matters most.
Purchasing a life insurance can be a daunting task without a trained professional to guide you through the process. Interestingly, Life Insurance proceeds can provide tax FREE benefit to preserve a legacy or ensure that your loved ones will be taken care of in the event the unthinkable happens. The mortgage must be paid, children may need to go to college and your family must maintain the standard of living, eliminate debts and keep the financial security you’ve worked so hard to achieve. But which type of plan is right? Generally, there are typically four (4) types of Life Insurance:
- 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 honestly all depends on your unique needs. Our life “needs analysis” will help determine the amount of money that your family may need. This amount will vary for each family based on expenses/debts, assets, and each specific estate planning situation. While many insurance providers recommend a policy equivalent to five times your annual income, it may be best to speak with an expert 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 for those whose needs will not change over time or may be looking to accumulate cash values 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 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 may come with the ability to purchase a “rider” to add long-term-care coverage as a “living benefit” that is part of life insurance policy. This may be suitable but our experts can help guide you to determine which type of coverage may be appropriate.
Please contact us today to discuss your needs further.