Sunday, April 5, 2015

What is Life Insurance

There's a lot to learn when you're getting started with"Life Insurance"...and there's still a lot to learn when you've had life insurance for years! I am passionate about life insurance and I want to ensure that you can feel confident that you are making accurate and informed choices. Let me explain what I mean.
A person purchases life insurance to help protect the people they love, it’s just that simple. But it can do so much more. Whether it is accessing your cash value to start a business, pay for education, or supplement a retirement, or providing funds for a legacy. Life insurance gives you some guarantees that you can rely on. The following is an example of some of the benefits that life insurance provides for your family:
  • Keep paying the home mortgage.
  • Maintain their current standard of living.
  • Pay off debts, capital gains and other taxes, and final expenses.
  • Create a fund for postsecondary education.
  • Create a fund for a family member with special needs.
  • Protect their dreams for the future.
Although you may not think about it, your ability to earn income is a significant assetLife Insurance can help replace lost income in the event of your death. Here are some reasons people buy life insurance.
  • To replace income the family would need to maintain their standard of living after the death of a wage earner.
  • To pay off a mortgage loan and other personal and business debts or to create a rent fund.
  • To create a fund for children's education.
  • To pay final expenses, such as funeral costs and taxes.
  • To create a family emergency fund or a fund for a family member with special needs.
You are probably wondering "what type of Life insurance is right for me". The answer to this question depends on your circumstances and needs.
You should consider the following:
  1. Considering your budget, is the premium affordable?
  2. Are your life insurance needs temporary or permanent?
Here is a small guideline to help you decide which policy is right for you.
Examples of permanent needs are:
  • Use of death benefit to pay bills or provide money for loved ones
  • Use of death benefit to pay final expenses
  • Use of death benefit to provide money for a favorite charity
  • Use of death benefit to pay estate taxes
  • Fund a business buy/sell agreement or provide key person protection
Examples of temporary needs are:
  • Use of death benefit to pay educational expenses
  • Use of death benefit to pay off home mortgage
  • Use of death benefit to pay off an automobile loan
The two major types of life insurance you can choose are:
  1. Term Life Insurance
  2. Permanent (whole life) Life insurance.
In case you have any questions or would like to discuss your options please do not hesitate to email me

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