Life Insurance
Purpose:
· Income
replacement for your survivors
· Cash
to cover final expenses and debts
Life
insurance can also be used for:
· investment/forced
savings for you and possible loan collateral
· reduced
income and transfer tax liability
· a
ready source of cash at a time when it's likely to be needed most
· funding of buy/sell agreements and other business applications
There
are generally two categories of life insurance – term and permanent with
thousands of policies available.
Term
Insurance is the simplest form of life insurance. It provides financial
protection for a specific time, usually from one to 30 years. These policies
are relatively inexpensive and are well suited for goals, such as insurance
protection during the child-raising years or while paying off a mortgage.
They provide a death benefit, but do not offer cash savings.
Permanent
insurance (such as universal life, variable universal life and whole life)
provides long-term financial protection. These policies include both a death
benefit and, in some cases, cash savings. Because of the savings element,
premiums tend to be higher. This type of insurance is good for long-range
financial goals.
How much do you need?
5 to 8 times gross annual income is a general recommendation.
But look at your own specific situation before you decide how much, if
any, and what type to buy.
Request Information
| 