The Value of Life Insurance

Life insurance is a crucial step in planning for your future and the future of your loved ones. It can fulfill promises made to your family if you are no longer around by providing a death benefit to your beneficiaries in return for premiums paid to the insurance company. Life insurance can also provide benefits while you are living.

Advantages of the Death Benefit

  • Provides income tax-free money to your named beneficiary(s) that can be used to pay funeral expenses, debt, tuition, estate taxes, or virtually any financial need you leave behind.
  • Can provide business security by enabling partners to buy out the interests of a deceased partner and prevent a forced liquidation.

Advantages of Living Benefits

  • Loans or withdrawals can be taken against the cash value of a permanent life insurance policy to help with expenses, such as college tuition or the down payment on a home.

¹  Accumulated growth may be taxable upon withdrawal. If the policy is a Modified Endowment Contract (MEC), tax penalties may apply prior to age 59½. Consult a tax advisor on your specific situation.

²  Policy loans and withdrawals reduce cash value and the death benefit and may be subject to other charges outlined in the contract.

How do I determine how much life Insurance I need?

The determining the correct dollar amount you should be insured for is important. The value should be on average 8 -10 times your income. We can assist you in determining an appropriate coverage amount and help you decide on which type of life insurance is right for you. A few things you should consider when assessing your life insurance needs:

  • A spouse
  • Dependent children
  • Aging parents or a physically challenged relative who depends on you for support
  • Retirement savings that aren’t sufficient to ensure your spouse’s future financial well-being
  • A sizable estate
  • A business

Change is Inevitable – So Should Your Policy

It is a good practice to review your life insurance policy once every year. When changes in your life happens, you want to make sure you and your loved ones are well prepared. It is a crucial part toward planning for the future.

Types of Life Insurance

Term Life Insurance

Term Life Insurance provides life insurance protection for a specified period of time. If you don’t currently have life insurance, term can be a good place to start. It’s generally less expensive than permanent life insurance, and is available in varying term periods with fixed premiums from a one- (annual renewable term) to 20-year period (level term). Term insurance can sometimes be converted to permanent coverage, providing you with flexibility as your needs change.

Universal Life Insurance

Universal Life Insurance is a form of permanent life insurance characterized by its flexible premiums, flexible face amounts, and unbundled pricing structure. Universal life can build cash value, which earns an interest rate that may adjust periodically but is usually guaranteed not to fall below a certain percentage.

Whole Life Insurance

Whole Life Insurance is a form of permanent life insurance that remains in force during the insured person’s lifetime, provided the premiums are paid as specified in the policy. Whole life insurance can build cash value.

  • General Information