Life Insurance
Why Life Insurance?
Life insurance is an essential part of every financial plan. It allows you to:
1. Protect your loved ones
With life insurance, you can make sure your loved ones are taken care of no matter what.
Final expenses
Funeral costs, medical bills, estate taxes and debts can leave your loved ones in financial difficulty. Your funeral alone may cost as much as $10,000. Life insurance can provide the funds your loved ones need to offset these expenses.
Quality of life
Life insurance provides money when it is needed most. When a breadwinner passes away, many families have a hard time making mortgage payments, affording groceries and maintaining their everyday lifestyle.
Goals and dreams
With life insurance, you can protect the dreams of your loved ones, including retirement, college education, vacations, career change and more.
Peace of mind
Knowing that they will be taken care of financially no matter what can give your family members peace of mind. Also leaving a legacy can show them that you care enough to plan ahead.
2. Protect yourself
Life insurance can protect your financial future as well as your family’s.
The sooner you buy, the cheaper it will be
The younger and healthier you are, the more affordable your life insurance premiums will be. We encourage you to lock in low rates as soon as possible, so you can afford to build in flexibility, options to increase your coverage and waivers to protect you against disability and other potential problems.
Cash accumulation
With many permanent life insurance products, you can accumulate cash values that you can use for retirement savings or other needs. The sooner you purchase these products, the more time your cash values will have to grow.
Your future insurability
Protect yourself with insurance when you’re young and healthy, then even if you become ill in the future and wouldn’t qualify for coverage or would have to pay too much for premiums, you will already have locked in low rates. You should also be sure to buy the proper riders, so you can increase your coverage in the future without passing any medical exams.
Your peace of mind
What would your family do without your income and contributions? Owning life insurance can provide great comfort throughout your life to know that if something happened to you, your family will be protected financially.
What kind of life insurance is right for you?
The two main categories of life insurance are term and permanent. Explore which product best suits your needs with the following chart.
|
|
Term |
Permanent |
|
Length of Coverage |
Provides death benefit protection for a fixed period of time |
Provides death benefit protection for life as long as premiums are paid. |
|
Cost |
Premiums are often lower initially but increase over time
|
Premiums are often higher initially but can stay level throughout the life of the contract
|
|
Common Uses |
Often used to cover short-term needs. Also used when the life insurance need is great and ability to pay premiums is limited |
A better choice when your need for protection remains the same or increases in the future |
|
Cash Value |
Does not build cash value |
Builds cash value, which can be used to supplement retirement income or for financial emergencies |
|
Other Features |
Can be converted to permanent life insurance without providing evidence of insurability (subject to certain limitations) |
Can be used to leave a legacy or create an immediate estate |
How much does life insurance cost?
Cost of life insurance depends on a variety of factors, but a few general rules of thumb are:
-
The younger and healthier you are, the cheaper your premiums will be.
-
Term life insurance is cheaper initially, but in the long run, permanent life insurance is more affordable.
-
The amount of your premium is directly related to the amount and type of coverage you purchase.
How much coverage do you need?
Contact Robert, Bryan, or Brandon here at Studle Vincent & Associates for a complete financial needs analysis to determine the amount of life insurance coverage that is right for you.
03/12/2012
