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Why Do I Need Life Insurance?

Life is full of uncertainties. If you were to die today, would your family be self-sufficient? Will your children be able to pay for their education? If you own a business, what will you do in the event of a key employee’s unexpected death? These and many more are all questions to consider. Being financially secured against these events will give you and your family a peace of mind.

Purpose of insurance includes:

  • Income Replacement
    Your family may depend on your income to provide home, food, education and all the basic needs to maintain their current standard of living.
  • Retirement
    When do you plan to stop working? What sources of retirement income do you have? What are your expected income needs? Are you prepared to meet the uncertainties (life expectancy, long-term care needs and economic fluctuations) of retirement?
  • Estate Planning
    Create strategies to reduce/eliminate federal and state income, estate or inheritance taxes.
  • Business Needs
    Buy a business interest. Offer an executive bonus plan to recruit, reward and retain key employees. Insure against the loss of a key employee. Split premium and ownership of a life insurance policy between the employer and employee.
  • Debt Repayment/Final Expenses
    Life insurance can pay for your probate, funeral, medical and other costs.
  • Inheritance
    Life insurance can help you leave an inheritance to your heirs, even if you have no other assets to pass onto them.

Types of Life Insurance

This is a temporary life insurance that will cover the insured for a specified amount of years and is usually much cheaper than the other types of life insurance. This type of life insurance is primarily used for pure income replacement needs to cover potential expenses until there are sufficient funds to protect the intended dependents.
This is a type of permanent life insurance that is flexible and will cover the insured for a stated duration (typically for lifetime). Premiums are paid into the policy account where various deductions, such as cost of insurance, are made and the remainder earns interest tax-deferred. Interest may be credited by a fixed amount or may be based upon the movement of a certain financial index such as stocks or indices. You also have the ability to take loans or withdrawals from the account.
This type of insurance, which is usually intended as an estate planning strategy, insures two lives, typically a husband and wife. Unlike a traditional life insurance, the death benefit is paid out when the second insured dies.
The whole life insurance covers you for your entire life as long as premiums are paid. This policy builds guaranteed cash value and also pays dividends. Being the most expensive type of life insurance, the whole life also has the strongest guarantees.

 

Life Insurance Companies

  • AGLA
  • American Funds
  • Aviva
  • AXA
  • Banner
  • Columbus Life
  • Fidelity
  • Genworth
  • ING
  • John Hancock
  • Lincoln
  • Metlife
  • Nationwide
  • North American
  • Prudential
  • Transamerica

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