What is Life Insurance?
Life insurance is a simple answer to a very difficult question: How will my family manage financially when I die? It's a subject no one really wants to think about, but if someone depends on you financially, it's one you cannot avoid.
There are many types of life insurance, but for all of them the bottom line is the same: They pay cash to your family after you die, allowing loved ones to remain financially secure. Life insurance payments can be used to cover daily living expenses, mortgage payments, outstanding loans, college tuition and other essential expenses. Another important feature of life insurance is that the death benefit proceeds are almost never subject to federal income taxes.
If you've worked hard to establish a financial framework for your family, life insurance is the foundation upon which it all rests. It can guard against the need for your loved ones to make drastic changes to future plans when you die. Certain types of life insurance policies even have built-in cash accumulation features that can help you reach your savings goals.
Most Americans need life insurance, and many who already have it may need to update their coverage.
Why Do You Need Life Insurance?
Protect Your Family
Help maintain your family’s lifestyle by replacing your current income. The death benefit proceeds can be used to keep up with everyday expenses.
Cover Your Mortgage
Help protect your family’s home by enabling them to pay off the mortgage. This can help them stay where they’re comfortable.
Plan For Your Child's Future
Help safeguard your child’s future by keeping the college fund intact, helping to ensure that money for your child’s education will be there, even if you’re not.
Replace Retirement Income
Life insurance has a number of tax advantages that can be utilized while you’re living to help supplement retirement income.
Prepare For Estate Tax
Estate taxes can be an unexpected reality for many heirs when it comes to inheritance. Life insurance can provide the liquidity needed to cover the remaining tax due.
Provide Final Expenses
Help provide funds for final expenses such as funeral costs and outstanding medical bills, to help ensure that financial difficulties won’t be among your family’s sorrows.
Term vs. Permanent Insurance - Which To Buy?
While everyone has heard the term “term life” or “whole life” insurance, many don’t understand the difference between the two.
Scroll below to learn more and to determine which type of policy would be the best fit for you.