How will your family pay for monthly living expenses, funeral costs, or other outstanding debts if something happened to you today?
Are you confident your current retirement plan will meet your goals?
Do you have group life insurance through work and a personal plan outside of work?
These are three basic questions that every person should ask themselves. Life Insurance is an essential part of a person’s financial plan. The truth is we cannot know when or how we will pass away, but death is inevitable. Life insurance is a gift for your family that provides financial security and asset protection. It can also be used as an investment vehicle to help you reach your financial and retirement goals. Securing a life insurance policy provides peace of mind to families when preparing for inevitable final expenses, it provides a tax-deferred legacy, pay for outstanding debts, provides cash value, and many other benefits.
“A good person leaves an inheritance for their children’s children, but a sinner's wealth is stored up for the righteous.”
- Term Life Insurance is purchased at a level premium for typically 10, 15, 20, or 30 years and is paid to the beneficiary if the insured dies during this period. It is a great option to cover short-term expenses and debts, as well as protecting the loss of income of the wage earner(s). These expenses may include mortgages, auto loans, school loans, and credit card debt, etc. Term insurance is an inexpensive way to provide a large amount of coverage at a lower premium, so that in the event of an untimely death, survivors can pay outstanding debts and maintain their standard of living. Term life insurance does not build cash value, so there is no value at the end of the term.
- Permanent Life Insurance provides a guaranteed death benefit to the beneficiary when the insured dies. There are different types of permanent insurance, including whole life, universal life, indexed-universal life, variable life and variable-universal life. Premiums are higher than term insurance; however, the policy does not expire as a term policy does, and it can provide a vehicle for growth in cash value.
- Annuities are great products to supplement your retirement income and diversify your investment portfolio. They provide guaranteed tax-deferred growth and provide higher returns than a savings or cash account or CD. There are different contribution methods including monthly contributions, lump sum from a qualified or non-qualified account, as well as different distribution methods. Annuities may also serve as life insurance, with the cash value paid directly to the beneficiary in the event of the insured's death.