No one likes to think about the end of their own life, but we all want the peace of mind knowing that our family will be taken care of when we are gone. When we die, we leave behind bills; mortgage and car payments; our paychecks stop; and these things can have devastating effects on our loved ones.
Life insurance gives your family the financial stability they’ll need when something happens to you. It helps keep them on their feet until they are able to figure out the next step.
There are different types of life insurance policies that provide solutions to various concerns. You might consider a term policy if you have a mortgage or your kids are heading to college.
Or maybe a whole life policy is something you’d prefer because your income is something your family relies on and you need a guaranteed death benefit to make sure they have help with the finances after you’re gone.
Whatever your needs are, we can help evaluate your situation and recommend companies that offer the best value.
People buy life insurance for a whole bunch of different reasons. Whole life insurance offers the guarantee that your beneficiary will receive the death benefit.
That death benefit can be used to cover any bills left behind, but is often used as a way to pass on a legacy to family and loved ones after you’re gone. We’ve worked with people who’ve bought whole life policies to leave to their children, grandchildren, church or even a favorite charity. The decision is entirely up to you.
One strategy that people don’t often think about is buying whole life insurance for their children shortly after they are born. The premium for a newborn’s $100,000 whole life insurance policy could be as low as $10 a month. Many parents will pay that until their child is old enough to appreciate the policy and take over the payments herself. Then when that child is 70 years old and still paying $10 for a $100,000 benefit, she’ll be awfully appreciative of her parents who had the wisdom and foresight to buy it when they did.
These are just some of the basic ways you can use whole life insurance.
Term life insurance is typically for a younger life insurance buyer, mostly because it is designed to cover you for a specific period of time, when your financial responsibility is at it’s highest.
Your family will always rely on you, but they tend to need you the most when you’ve just signed a mortgage, taken out a car loan, and when your kids are going through college. These financial responsibilities will still exist if you were to die unexpectedly.
Term insurance is designed to have low premiums and high benefit amounts so that your family is protected in the event of your death. A good way to determine how much life insurance you’ll need is to add up all of your financial responsibilities (i.e. your mortgage, your car loan, tuition expense, etc…) and then count the number of years you will be paying for these things. The answer will let you know how high your benefit amount should be, and for how long you’ll need that coverage.
At the end of the term, you have the opportunity to enroll into another term policy or convert it into a whole life policy. Since you don’t typically have to show proof that you are insurable when you renew or convert your policy, people find this feature very attractive, especially those with some serious health issues.
Indexed Universal Life
Interested in receiving tax-free income in retirement? How about having no contribution restrictions during your working years? Oh, and you want to have access to that money just in case you might need it? It might just be time to consider an Indexed Universal Life policy.
Since there are so many ways your agent can structure an IUL, there’s a good chance you’ll be able to use one to meet your financial objectives.
Here are just some of the more common uses for indexed universal life insurance:
- Tax-free retirement income;
- Tax-deferred cash accumulation with high growth potential;
- Avoiding contribution limits on qualified plans (like a 401k or IRA);
- Estate planning;
- Guaranteed death benefit;
- Mortgage payment protection;
- College education funding.
These are just some of the ways an indexed universal life insurance policy might be an appropriate product for you. We work with a variety of insurance companies so we are able to recommend a product that works best for you.