While life insurance cannot replace you, it can be used to replace all or a portion of your earning power. Life insurance could play a role in your family’s finances, but first, you must determine how much life insurance you need.
Several factors will affect the cost and availability of life insurance, including age, health, and the type and amount of insurance purchased. Life insurance policies have expenses, including mortality and other charges. If a policy is surrendered prematurely, the policyholder also may pay surrender charges and have income tax implications. You should consider determining whether you are insurable before implementing a strategy involving life insurance. Any guarantees associated with a policy are dependent on the ability of the issuing insurance company to continue making claim payments.
Term insurance is a viable option to maintain your family’s income and standard of living. It can pay the cash needs that arise at death, help finance a child’s education, or cover other expenses such as a mortgage. Below are some things to consider.
Advantages of Term Insurance
- Low initial premium and level premiums
- Well suited to shorter-term, temporary needs
- Most plans can be renewed, if you are medically qualified
- Fixed tax-free death benefit
- Pure protection
Things to Consider with Term Insurance
- Premiums in future years may become prohibitively expensive
- Insurance protection may cease before death
- Does not build any cash values
Each Individual’s Needs are Different
We understand the differences in the characteristics of life insurance and of certain needs. There are two categories of insurance to consider. Term life insurance and cash value life insurance. Below are some comparisons.
A detailed review of your needs may be necessary to assess your situation. We are here to help plan and prepare you for a life full of purpose. Feel free to reach out if we can help.