Life Insurance
Individual life insurance plays a critical role in your financial protection.
It helps you and your loved ones mitigate and recover from financial risks and unexpected costs; it also increases your and their chances of reaching long-term goals.
While there are numerous uses for life insurance below are some common uses:
Income replacement: Should you or your spouse unexpectedly pass away and they lose your income, or you lose theirs
Primary caretaker: Should the primary caretaker of any children or elderly adults who you are financially responsible for unexpectedly away
Final expenses and medical bills: Medical bills and funeral expenses can be very costly at the end of a person’s life
Debt replacement: Leave your family with enough money to pay off debts such as mortgages, credit cards, auto loans, and college tuition
Inheritance: Tax-fee money that can be divided as chosen between the recipients of your choosing
Estate Taxes: Provide funding to your heirs to help pay for estate taxes
Charitable contributions: Name a charity the beneficiary of your policy for a philanthropic gesture
Buy/sell: Protect your business should a partner leave or unexpectedly pass away
Key person: Protect your business should a key employee die or become disabled. You can also use this policy as a mechanism to retain a key employee.
There are (2) major types of life insurance policies.
Term & Permanent.
Term Life Insurance
Term Life Insurance is normally less expensive than permanent insurance options and covers the insured for a fixed period of time e.g. 20 years. When the term ends and if the insured in still alive the coverage ends and there is no payout.
Permanent Life Insurance
Permanent Life Insurance is normally more expensive than term life and can cover the insured for his/her entire life. A permanent life insurance policy also builds a cash value that can be used if needed or desired. There are a number of different permanent options available, typically an indexed universal life policy will be the most cost-effective option to accomplish your goals.