Life Insurance planning and funding serves various needs. What if I die to early and my family cannot pay off the mortgage or future education costs? Can I create a program for leaving my family tax-free money? Can I find a way to leave my spouse extra tax-free money? Can I leave a legacy for charity or my personal foundation? How about Estate Planning and Life Insurance? These are just some of the questions that good Life Insurance Planning can address. And, just as important, what type of life insurance will best serve your needs?
Permanent Life Insurance
Permanent Life Insurance is a great way to save for your insurance needs while creating a future cash-flow for your and your family. With Whole-Life Life Insurance, you will create a total amount of insurance that will be paid out while creating another account filled with cash and dividends from the Insurance Carrier. On the surface, this is more expensive that Term Insurance. But with the ability to borrow from your cash account tax-free or have the policy fully paid up in just a few years, Whole Life may end up costing you significantly less over your lifetime. Indexed Universal Life Insurance, works similar to Whole-Life Life Insurance, but rather than receiving dividends from the Insurance Carrier, it receives income from one of many Equity/Bond Indexes. And it has all the same cash/borrowing features of Whole Life.
Term Life Insurance
Term Insurance means that you intend to keep this Life Insurance in place for a certain term, such as 15-years. You will lock in your payment, with the ability to cancel anytime by just stopping payments, and with the Insurance Carrier unable to raise your cost for this entire term once the policy is in place. These are far more popular and less expensive than Permanent Insurance and can meet all of your insurance needs, but they never develop cash-value that you can borrow from. A client can choose from the following terms: 10-year, 15-year, 20-year and 30-year. The longer the term, the greater the length of time that the prices will not increase. Most Corporate Life Insurance is Term Insurance.