What is Life Insurance?Life insurance pays out a sum of money either on the death of the insured person or after a set period of time.
Six Questions to Ask Yourself About Life Insurance...Why do I need life insurance?
No one wants to leave their family unprepared for the future. Planning today can help protect the promises of your family’s tomorrow. Most people buy life insurance as a way to replace lost income if something happens to them. Life insurance can also be used as collateral for a debt, provide needed income to carry on a family business, pay final expenses, and protect the transfer of your estate to others by providing funds needed to pay taxes. What are the different types of life insurance available? There are two basic types of life insurance – temporary and permanent. • Temporary insurance or term life insurance can cost less in the short run, but you are only protected for a limited number of years. • Permanent life insurance can come in the form of whole life insurance and can cost more initially, but may cost less in the long run. Permanent insurance is designed to last your entire lifetime and has the benefit of producing cash value, which can be used in emergencies. Some life insurance plans offer access to a portion of the death benefit if you become terminally ill. How much life insurance do I need? That will depend on your specific situation. Some things that should be considered are: • Your annual income. • Your debt. • The amount of your mortgage. • The age(s) of your children and if you intend on them attending college. Your insurance agent will help you determine the amount you need and can afford. At what age should I think about buying life insurance? Buy life insurance early. Life insurance is a valuable asset, even more valuable as you age and the price of insurance protection increases or may become unattainable due to health-related issues. The younger you are the better! Sometimes people wait until it’s too late. If you’re a parent, you should consider life insurance on your children as a great foundation for adulthood. How is life insurance paid out? Proceeds are typically tax-free and are paid directly to the named beneficiary. Will premiums change over time? That will depend on the type of policy you select. • Term insurance has the benefit of level premiums for a specific length of time – 10, 20, 30 years or until age 70. • Whole life insurance premiums will remain the same through age 100. Life insurance is a very important matter to discuss. Don’t wait until it’s too late. Contact us to learn more about the right life insurance for you. |
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