Planning Your Financial Future
Planning your financial future will have the greatest impact on the quality of your life for the rest of your life. That’s why it’s so important to get it right.
If you are looking to get information without a bunch of hype, you have come to the right place. This page is intended to give you enough information to help you make an informed decision when protecting your most valuable asset — your family. Because if you are no longer here, the only thing you can do to help them is to leave behind enough resources for them to make it
It’s Your gift to them
Life insurance is your gift to the ones you leave behind. No one wants to think about our big day, the day we go on our next great adventure. But we have to plan for it. What will happen to the ones we leave behind who depend on us for so many reasons?
Understanding the types of life insurance
Life insurance has been around for a long time and today are several types of life insurance available. This page is here to help you understand the different kinds of life insurance and their best use.
Over the past few years, insurance companies have been improving their offerings. If you have a life insurance policy that is more than five years old, you should consider having it evaluated.
Planning Your Family Future Should Include Life Insurance
Whole Life
Whole life, also called permanent insurance offers protection for the life of the insured. It also is known for its cash value-building benefit. It also offers a savings component that can be used for supplementing a retirement program on a tax-advantaged basis. These policies are also called “traditional” life insurance.
Universal Life
The key difference between whole life and universal life is universal life can have more flexibility. You can often vary your premium payments and death benefit with universal life. The key difference is with a permanent whole life policy the premiums are fixed.
Indexed Universal Life
An Indexed Universal Life policy is the same as the Universal policy except that the cash value portion of the policy is tied to a stock or bond market index. The benefit for the policy owner is the cash value increases at a rate tied to the market they mirror.
One very exciting benefit included with some of these policies is they will not go down when the market index they mirror declines. This feature makes them very popular as a vehicle to supplement a retirement plan.
Term of Life insurance
Term life insurance is a product that covers you for a specific time period. There are terms for anywhere from one year to 50 years. There can be term coverage to 65 and modified-term policies that convert to permanent insurance at a certain point (ie. a $100,000 term policy that converts to a $10,000 whole life policy at age 65).
Term insurance does not build cash value.
Some term policies return all your premium at the end of their term or when you turn 65.
Mortgage or Credit Life
For many years, the thought of leaving a paid-off home for the ones you leave behind has been very appealing. Mortgage life generally makes the payment directly to the beneficiary instead of the mortgage company. The logic behind this decision is maybe the beneficiary doesn’t want to continue to live in the house.
Many times the insured knows the house will be too much to handle for the beneficiary, so they insure themselves enough to purchase a smaller home.
Income Replacement Life insurance
For high-income earners, replacing your income is essential for your heirs. On your passing, in order to avoid heavily discounting assets, they will need adequate time to liquidate them. Additionally, there may be other important arrangements to consider.
Children’s Life Insurance
For most people, grieving the loss of a child is the worst thing they can possibly imagine. If you add financial stress, you have a greater potential disaster. There’s no easy way to say it, but if you have an adequate amount of life insurance on a child, you may be better suited to take the time to deal with this tremendous loss.
Final Expense/Burial Insurance
Typically a final-expense policy will cover the cost of the funeral, a plot, and a service. Depending on the desired arrangements, the coverage amount is from $5,000 to $25,000. These policies are very affordable and some can be issues without medical exams.
Planning Your Financial Future and Finding the Right Broker
What is the difference between an agent and a broker?
For people who know what they want, a broker may not be necessary. Examples include buying mortgage insurance, final expense, or a large policy for family protection. Sometimes trying to set up a meeting can be difficult and troublesome.
For these people, use the link below.
If you like what you see, you can even apply with this link. This is a hassle-free way to protect the ones you love.
In some cases, you may want a little guidance in Planning Your Financial Future
If you would like a little help or guidance in choosing the right life insurance, be sure to reach out to us and we’ll be glad to contact you and answer your questions. If you would like, we’d be happy to make recommendations for you to consider.
