Why Life Insurance?

Life insurance is designed to protect your legacy. Your assets. Your business interests. And, most importantly, your loved ones.

The key function of life insurance is to protect the futures of those you care about—whether family members or business associates. You want those close to you to be able to achieve their dreams in the event of your death.

There are obvious reasons for purchasing life insurance, such as replacing income, ensuring an education for children/grandchildren, and helping surviving family members cover funeral expenses, home mortgages, and other debts. However, other life insurance advantages may be less recognized. Beneficiaries can use the policy proceeds, which are usually tax-free, to cover estate taxes, safeguarding your assets. Surviving family members can also use the policy proceeds to make charitable bequests on your behalf.

Life insurance can also ensure that your company and business interests don’t die with you. Policy proceeds can be used to keep a business up and running, support daily business expenses, and satisfy creditors.

With some types of life insurance, you can realize some of the benefits of your policy during your lifetime. Because it accumulates cash value, permanent life insurance can be used to supplement retirement income. Permanent life insurance also gives you the option to withdraw or borrow available cash for emergencies, education, or business opportunities. To build up this cash value, however, you must pay higher premiums than just the cost of insurance. The part of the premium that is not used to cover the cost of insurance accumulates cash value on your behalf.

There are various types of life insurance. Whole life insurance provides lifetime coverage at a level premium rate that does not increase as you age. Universal life insurance allows for flexible-premium payments and adjustable death benefits.

Term life insurance is an economic alternative to permanent life insurance for those who need protection for limited, known periods of time. New homebuyers or parents of young children are typically interested in term life insurance. Because term life insurance is for a limited period of time and does not accrue cash value, you can purchase larger amounts of term coverage at a lower cost than if you purchase permanent life insurance. With term life insurance, premiums are fixed during the specified term of the policy; however, the premiums can increase, sometimes substantially, based on the policyholder's age and health, when the policy is renewed or converted to permanent life insurance.

Regardless of the type of insurance you need, the reasons to purchase life insurance are clear. To ensure you select a policy that meets your needs, consult a life Beneficial financial professional.

Life insurance is necessary—necessary for protecting your loved ones and your legacy.