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
- The cash value growth of a permanent life insurance policy is tax-deferred, which means you do not pay taxes on the growth of the cash value unless the money is withdrawn.
- 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 59 ½. 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.
Assessing Your Need
The amount of life insurance you select should be dependent on your personal and financial needs. We can assist you in determining an appropriate coverage amount and help you decide on which type of life insurance is right for you.
Generally, you should consider life insurance if you have:
- A spouse
- Dependent children
- Aging parents or a physically-challenged relative who depends on you for support
- Retirement savings that is not sufficient to ensure your spouse's future financial well-being
- A sizable estate
- A business
Life Changes — So Should Your Policy
Types of Life Insurance
There are several different types of life insurance products available. The most common include:
- Provides level permanent protection with guaranteed cash value. (Additional benefits available . )
Simplified Issue Whole Life
- Provides final expense coverage for people age 50-80. No physical exam, laboratory tests or height/weight requirements. (No additional benefits available)
Simplified Issue Children's Advantage Plan Plus
- Provides permanent protection with guaranteed premiums and cash value for children. Issue ages are 15 days - 17 years. Initial coverage increases 50% at both age 18 and 25. (Additional benefits available)
Perma Term Universal Life
- Flexible policy for multiple-purpose life insurance needs. Premiums and/or death benefit can be increased (subject to underwriting) or decreased at any time. Entire family can be covered on one policy. (Additional benefits available)
Simplified Issue five Year Term
- Provides short term debt protection for up to ten years. No physical exam, laboratory tests or height/weight requirements. (No additional benefits available)
Continuous Term 2
- Provides one year at a time protection. Rates increase each year the policy is in force based on the attained age of the insured. (Additional benefits available)
Ten, Twenty or Thirty Year Level Term
- Provides level death benefit for a 10, 20 or 30 year period. (Additional benefits available)
Mortgage Decreasing Term
- Provides annual decreasing term protection for anyone of five coverage periods. (Additional benefits available)
- Monthly income benefits for individuals who are totally disabled due to sickness or accident. Coverage available for 2 years,5 years or to age 67 or 70 if actively working. Additional benefits available include First Day Disability while hospital confined and Accidental Death and Dismemberment
Long Term Care
- Daily Indemnity Policy that pays when insured is certified as chronically ill either from a physical or cognitive impairment. Insurance that assures quality of care and reduces burden on the family. Pays for home health care, assisted living facilities or nursing facilities.
- Pays for medical bills due to an illness or accident.