Life Insurance
Life Insurance
There’s no better time than now to plan for your family’s financial future.
Life Insurance provides protection for you and your family in case the worst happens. By purchasing Life Insurance you are entering into a contract with the insurance company. In exchange for a set premium, the insurance company guarantees your chosen beneficiary will receive a tax-free, lump sum of money when you pass. Life Insurance also provides you the power to leverage assets so you can accomplish more.
Its Uses
There are many purposes to life insurance. We have listed a few of these uses below for your convenience.
Types
Do you understand the significant difference between Permanant Life and Term Life?
Life Insurance and Its Uses
Protect Your Family’s Financial Stability and Lifestyle
- If something were to happen to you or a family member, would you be able to continue your current lifestyle? Would changes be necessary? Would you be forced to sell your house? Would you have to give up your hobbies, or worse, need to get an extra job? All of these questions should be seriously evaluated. Although no one likes to think of these things, many would be left stranded if they were to lose the largest income earner in the family. It is recommended to purchase enough of a benefit, so those left behind will be able to lead a comfortable life.
-
Life Insurance can also be purchased to cover a large life event. If you have a mortgage for example, it is a good idea to purchase Life Insurance equal to the amount of your mortgage. That way, if you or your spouse passes away, the mortgage can be paid off and the loan is not left to your loved one. If you have plans for your children to attend college, you should purchase enough life insurance to cover their tuition costs and guarantee their future if you pass. These are just 2 examples, there are many other life events that can be covered through this vehicle.
-
Cash value is a fantastic way to grow your money risk-free while providing your loved ones with a lump sum if something were to happen to you. For example, if you have a growing family with young children you may purchase a larger policy to help take care of them if you were to die. But if everything goes as planned and you reach retirement age, you will no longer require such a large policy. At that point you can access your accumulated cash value. You will be left with a smaller life policy to still give you some coverage, and a nice pool of dollars to add to your retirement budget.
Key Man Insurance (Protect you, your partner, and your business.)
-
If you own a business with one or more partners, you should strongly consider this type of insurance. If one of the partners passes away, they may want their loved one to profit from the accumulated value within the company. However, they probably will not want that same individual running his share of the business. The remaining partners may want to split the shares between themselves. This is nice in theory, but many businesses would be largely burdened from having to find the liquid assets to make that possible. The solution is to use Life Insurance to purchase the ownership share of the deceased owner. The heirs of the deceased owner will receive compensation for their rightful share of the company and allow the remaining partners to keep their business.
The solution? Purchase Life Insurance policies on each of the partners, making the other partners the beneficiaries. This way, if something happens to one partner, the life insurance will provide the funds to purchase the shares of the company from the loved one without leaving any strain on the business.
Charitable Giving & Inheritance
-
Do you have money set aside to donate to a charity or to pass on to a loved one? If so there is a simple way to significantly increase it without having to add to it. There is a type of life insurance policy, called a single premium policy, where you can relocate your assets. Once the money is in this account it practically doubles without you having to make any more contributions. Another huge advantage to this product is that it will be passed on tax-free as a death benefit to your charity or loved one. The sacrifice on your part is exactly the same as it would have been otherwise, but the benefit for the recipient is much larger. It truly makes your hard-earned money work for you.
Types of Life Insurance
Permanent Life Insurance vs. Term Life Insurance
-
As soon as you have been approved for Life Insurance you start being covered. However, some policies don’t last forever. A Term policy will only cover you for a given number of years, while a Permanant Life will cover you for as long as you live. Types of Permanent Life include Whole Life and Universal Life. The other differentiating factor is the cash value. Term does not have any cash value, while Whole has varying levels of cash value.
-
This policy is designed for anyone from the ages of 50 to 85. It is meant to cover final expenses that could created unexpected financial burden on your family. The policy will help cover funeral expenses, administrative fees, unpaid medical expenses, probate fees, and/or estate taxes. The underwriting on Senior policies is very simplified. There are no complicated medical exams. If you can answer “no” to five questions, you can apply.
Our Final Expense policy is affordable and easy to obtain, even for the unhealthy. Take one more thing off your to-do list and give yourself a little piece of mind. Contact us for your free quote.