Life Insurance Plans
Life insurance will help your loved ones deal with the financial aspect of your death. It is received tax free, so it can help replace the loss of your income so your family can maintain their standard of living. It can also provide for your children and their education, pay funeral expenses and pay off debt and mortgage.
Types Of Life Insurance
Term Life
A term life policy covers the policyholder for a specific term; the term may cover a timeframe from five to thirty years, depending on the policy an individual opts for. This type of policy pays out a death benefit to the beneficiaries if the holder dies before the expiration of the term. You have the choice to decide on the coverage amount that you want, depending on your needs.
Whole Life
A whole life policy is a type of permanent life insurance that offers lifetime coverage, a guaranteed cash value, and dividends. Participating whole life allows you to share in the profits made by the insurance company. This is the only policy that can be transferred from one generation to the next; your premiums won’t change as you get older.
Universal Life
A universal life policy covers you for as long as the premiums are paid. Apart from the guaranteed death benefit associated with this type of policy, it is also another way to build cash value that you can borrow against. Universal Life is more like a rent to own. You purchase a policy for a certain amount and you pay until age 100.
What Can Life Insurance Cover?
Mortgage
Funeral Costs
Debt
Childcare and Education Cost
Legacy
Child Life Insurance
Insuring your child with a participating whole life policy has so many benefits. To begin with, the policy has a tax free annual dividend deposited to the account every year. This allows both the life insurance to grow as well as the cash value. Your child will have life insurance to age 100 and will never have to worry about qualifying for it.
The cash value is theirs to do with as they please, whether you use it for education, buying a home or starting a business. There are no restrictions.
Life Insurance Investment & Cost
Life insurance should be a part of your financial portfolio. Whether you are using it as an investment or simply for protection, it is an essential part of your portfolio and shouldn’t be neglected.
Life Insurance can be used to cover expenses and debt, however it can also be used as an investment. There are several types of insurance that help both individuals and businesses. The costs involve the type of policy and amount you choose, as well as your age and health. This criteria will be underwritten by the carrier. Should you have a preexisting condition, you may be rated. This means the cost can be higher.
A Quick Way to Calculate Your Insurance Needs
D.I.M.E Method:
Debt
Income
Mortgage
Education (future needs)
The basic idea of having life insurance is to guarantee a tax-free amount to your beneficiaries, whomever you choose, to help them cover your financial alignments if you pass away.