Life Insurance
Life insurance is bought for the people we love. Your Life Insurance needs change throughout your life. Your family may count on you for such things as house payments, education expenses and a certain lifestyle. The right amount of life insurance can help guarantee all these things for your family in the event of your untimely death. There is no magic formula to determine how much life insurance you should have; however, there are a number of factors that should be considered when estimating how much life insurance you should carry. Please contact us for a consultation to discuss your specific life insurance needs.
Person Uses
- Funeral
- Life insurance proceeds can ensure that there is enough money for proper funeral and burial expenses.
- Debt - Personal bills, credit card debt, student loans, and personal notes can be covered by life insurance in the event of an individual’s death.
- Mortgage Protection – The proceeds of a life insurance policy can pay off the balance of a mortgage or provide an income stream to pay monthly mortgage or rent payments.
- Income Replacement – In the event of an individual’s death, life insurance proceeds can provide a supplemental income stream to ensure that the surviving family members are able to maintain the same standard of living.
- Education – Life insurance proceeds can ensure that the education costs of the insured’s children are covered.
- Taxes – Federal estate and state inheritance taxes can be pre-funded using life insurance to preserve the value of an estate.
- Donations/Gifts – An individual can use a life insurance policy to fund a donation to a charity or leave a gift to a family member.
Business Uses
- Key-Person – A life insurance policy can be used to protect a business from the loss of income and profits caused by the death of a key employee.
- Business Continuation – Life insurance can be used to fund a buy/sell agreement or stock redemption plan to determine enable a partner or group of employees to buy the business interest of a deceased partner.
- Business Loans – Life insurance protection on a key employee or business owner can be used to pay off the debts of a business in the event of that individual’s death.
- Employee Benefits – Life insurance protection for employees is commonly included in company employee benefits plans.
The next question is what Kind of Life Insurance do I need?
The type of life insurance you need is dependent upon your particular needs. Term Life Insurance is appropriate and more cost effective for temporary needs which may be a period of one to thirty years. Universal Life insurance is flexible-premium, adjustable-benefit, permanent life insurance that can accumulate values beyond the guaranteed cash value. In addition to its cash values which can be used for children’s educations, to supplement retirement income and for incidental expenses, universal life insurance is flexible enough to change as your needs change. Whole life insurance provides permanent insurance protection over an individual’s lifetime plus offers tax deferred cash value accumulation.
