Life Insurance
Life insurance is a critical part of any financial plan. It provides protection and peace of mind for your loved ones in the event of your passing. It serves as a safety net, ensuring that dependents are supported financially when dealing with the loss of a loved one.
Reasons to have life insurance:
-
Life insurance replaces lost income and helps cover living expenses, debts, and future financial needs of your loved ones, providing financial security.
-
Life insurance can be used to pay off mortgages, loas, and other debts, easing financial strain on surviving family members.
-
Life insurance can be earmarked for children’s education or other future expenses.
-
If you own a business, life insurance can ensure continuity by providing funds for buyouts or to cover losses due to the death of a key person.
-
Having life insurance facilitates a smooth transfer of assets and minimizes potential estate taxes.
Choosing the right type of insurance depends on your personal risk profile, the needs of your loved ones, and affordability.
​
There are different types of life insurance policies:
Term Life Insurance
This type of insurance provides coverage for a specified period, often 10, 20, or 30 years. It is typically more affordable, but doesn’t accumulate cash value, and the money paid into this type of policy expires at the end of the term if the death benefit has not been paid out. However, many term policies have the option to renew or convert to a whole life policy at the end of the term.
Whole Life Insurance
This type of insurance offers lifelong coverage with a savings component that grows over time. The premiums are usually fixed. The coverage offered does not expire; it’s designed to provide coverage for your whole life, so long as you pay your premiums. Premiums are set when you take out your policy and will not increase. Whole life policies offer a tax-deferred cash value that grows at a guaranteed rate each year.
Universal Life Insurance
This type of insurance provides flexibility in premium payments amounts and death benefits. It also accumulates cash value but offers more investment options. These policies usually last until a certain age.
Variable Life Insurance
This type of insurance combines death benefits with investment options in stocks, bonds, or mutual funds. The cash value fluctuates based on the performance of these investments.
Choosing the right type of life insurance depends on your own personal needs, your financial goals, your budget, and the needs of your beneficiaries.
​
If you have questions or would like to discuss which options would work best for you, please click the appointment button below. We would love to help you learn and understand your options.