An important part of a financial plan is to prepare for any unknown risks that may arise that could prevent you and your loved ones from reaching your financial goals. Life insurance isn’t for those who have died – it’s for those who are left behind. Important considerations for life insurance include needs such as replacing income so that your family can maintain its standard of living, and covering the costs of funeral and estate expenses.
Insurance planning is best when tailored to fit its owner’s personal situation. Whether designed for a single person or family, professional or seasonal employees, or executive or small business owner, everyone can benefit from an appropriately customized plan.
Life insurance is more than planning for the security of one’s loved ones. It can be a cornerstone in any multi-generational financial strategy.
Life insurance can provide financial resources in a number of concrete ways, from immediate expenses, such as hospital bills, to income replacement and assistance in settling outstanding debts. It can also help with estate planning and charitable contributions. Furthermore, some forms of life insurance enjoy tax advantages and can be an ideal addition to any financial plan. In the event of death, life insurance offers surviving family members increased financial resources. As a tax-free lump sum payment, the death benefit can pay for final expenses and debts, as well as provide income for the deceased’s dependents.
Term Insurance involves paying a premium to secure a death benefit payment to beneficiaries. It provides protection for a specified period and is usually renewable. There are several different kinds of Term Life Insurance, including Level Term, Annual Renewable Term, Decreasing Term, and Return of Premium.
Permanent Insurance involves comparatively high premiums at first, but costs may drop significantly over the long term. Furthermore, some permanent insurance plans include a cash value, and associated tax-advantaged borrowing privileges. There are several kinds of Permanent Life Insurance, including Variable Life, Whole Life, and Universal Life coverage.
Advantages of Life Insurance include:
- An instant estate for loved ones at a time when funds are most needed
- Death benefits are generally non-taxable
- Life insurance plans with a cash value component offer tax-advantaged borrowing opportunities
- Some plans allow policy-holders to invest the cash value or death benefit in sub-accounts containing stocks, bonds, or other investments
- Gain tax advantages and help support a charitable interest through a charitable life insurance program
We can help you select coverage from a variety of life insurance options to meet the needs identified in your financial plan. Life insurance can play a vital role in your financial plan.
When an injury or prolonged illness occurs, there is a risk that the income stream will be lost. Unfortunately, present forms of federal and state-sponsored health care programs do not comprehensively cover long-term care. Medicare generally offers temporary assistance, while Medicaid, which varies by state, may require out of pocket expenses and very low levels of asset value before public assistance becomes available. Disability insurance can help one maintain financial independence, lifestyle, and long-term financial resources in the event income is impacted by disability.
Home health care, assisted living and memory care facilities, and/or nursing home facility expenses continue to skyrocket and can be a risk to retirement income. Long-term care insurance can help reduce that risk. We can help evaluate your situation to determine the best way to insure your financial future.