28 February 2017

Importance Of Life Insurance

Life insurance is an essential part of financial planning. The cash provided by life insurance can help ensure that your dependents are not burdened with significant debt when you die. Many families today have little savings outside of their 401(k)s. In 60% of married households, both spouses work. If one spouse dies unexpectedly, many of the surviving spouses struggle financially, some more than others. Life insurance proceeds could mean your dependents would not have to sell assets to pay outstanding bills or taxes. Proceeds from life insurance often prove to be the largest asset these survivors have.

Generally there are two types of life insurance offered. The type of life insurance you should choose depends on you and your family's personal needs. Most employers provide life insurance however, coverage usually stops when your employment ends. Our individual supplemental life insurance provides coverage that can continue even if you change jobs.
Term Life Insurance is usually considered to be an economical form of life insurance and is used for providing life coverage for a specified period of time. Many people choose term insurance when they have defined situations where life insurance is needed only for a pre- determined length of time or event. Examples of these situations are: for the duration of a mortgage or other debt; to provide for final expenses; or to maintain a reasonable standard of living for young families should a wage earner die unexpectedly.

Universal Life Insurance provides a death benefit and, over time, may provide you with a fund value you can use for retirement, children's education or emergencies. You may vary the premiums paid into your policy, you get tax deferred fund value accumulations, competitive current interest rates and you are guaranteed a minimum interest rate. Should you decide to borrow against the fund value accumulated in your universal life insurance policy, the loan is not dependent on credit checks or other restrictions. An important feature of life insurance is that no income tax is payable on proceeds paid to beneficiaries. Universal Life insurance provides a benefit for survivors, yet while the insured is alive, continues to accumulate fund values for as long as the policy is in force.