Did you know…that the cash value in a life insurance policy belongs to you and can be borrowed in a true emergency?
Life is unpredictable. No matter how careful and responsible you are, life always has a way of eluding expectations. And that’s what life insurance is all about: preparing you for the twists and turns of life that no one can predict. Life insurance not only offers you financial protection and peace of mind, it can also be a flexible financial instrument that helps you meet your changing needs. In other words, life insurance is there for you in good times and bad—just like us. Simply fill out our quote request form and get the answer you need today.
If you don’t have life insurance, now would be a good time to think about ensuring the financial security of your family.
Tools of Life Insurance
- Financial protection for your business or loved ones
- Retirement income supplement
- Income replacement
- Compensates for gaps caused by unexpected losses in your retirement portfolio
- Efficient wealth transfer solutions
- Accumulates cash value which can be drawn upon as a financial resource
- Tax-deferral on earnings
- Funding vehicle for businesses
Who needs life insurance?
Life insurance isn’t just for breadwinners. Life insurance is suited to anyone who has dependents—whether they depend on you for financial support from a job or for support around the house, such as cooking, cleaning and child care. Older couples can also benefit from the protections of life insurance, as it can protect them from losses in their retirement portfolios or help a surviving spouse pay for unexpected medical expenses without drawing on savings or retirement accounts. Also, life insurance can help reduce the effects of estate taxes for individuals with substantial assets who wish to pass on their wealth to future generations.
When do I need life insurance?
Marriage isn’t just the union of two souls in the bonds of love, it’s also the joining of two sets of financial goals, priorities and plans. Although it may not be as exciting or romantic as planning a honeymoon, talking about life insurance before your wedding is an important step to starting off with your best financial foot forward. Discussing how you’ll handle finances, home ownership, parenthood, college funding, revising wills and changing beneficiaries on life insurance policies is a great way to get all your cards on the table and establish expectations. By getting an early start on your estate planning, you can ease concerns about the future and be prepared when critical decisions must be made.
Homeowner/Buying a Home
Buying a home will likely be the lengthiest and most substantial financial commitment you’ll make in your life. A lot can happen in the 15, 30, 45 or more years that it takes to pay off a mortgage—life insurance can ensure that your financial obligations will be met even if the unthinkable happens.
Newborn/Raising a Family
An addition to the family is a time of joy, but also the beginning of new challenges. Take time before baby arrives to review your financial needs—including education, a new home and contingencies—and consider what type of life insurance policy will help your family reach these goals even if your absence.
Products to Consider
Term insurance – For insured individuals under the age of 50, term insurance is the generally the most cost effective. It’s also the most basic type of life insurance . Term policies are written for a specified period of time—usually between 10 and 30 years in 5 year intervals . Premiums may increase at the end of each term, which often makes renewing a term insurance policy prohibitively expensive for older individuals. To help plan for these increases, you can lock in the annual premium for up to 30 years with a level term policy.
Mortgage Term Insurance – This insurance is intended to pay off your mortgage in case you pass away with an outstanding home loan. The premium stays constant over the term, while the face value steadily declines. Mortgage term insurance does not build cash value and only pays benefits if you die during the policy’s term.
Whole Life – Combines life insurance protection with a savings instrument. Coverage can be locked in at a level premium rate and a portion of your premium is set aside as an investment. Your policy accrues cash value, which can be borrowed against at up to 90% of your policy’s cash value tax-free.
Universal Life – Similar to whole life insurance but a bit more flexible. Cash value can be withdrawn and premiums can be decreased, increased or deferred. You can also change face values. Universal life policies often carry guaranteed returns on cash value (usually at least 4%) and your annual statement details your total protection, earnings, fees and cash value
Choosing the best type of coverage, amount of coverage and terms of coverage for your life insurance policy depends on your individual and financial situation and goals. We can help you decide on the best life insurance policy for you—simply fill out our quote request form and we’ll get back to you shortly.