Today's Life Insurance: More Than Just A Death Benefit
Why Do I Need Life Insurance?
If an individual's death would lead to financial hardship for their loved ones, it is prudent to consider obtaining life insurance. This type of insurance provides a sum of cash, referred to as the death benefit, to the policyholder's beneficiaries upon their passing. The death benefit can serve as a replacement for the policyholder's income, helping their family cover expenses such as funeral costs, daily living expenses, and funding for education. Additionally, life insurance benefits are not subject to federal income tax.
It is prudent for a significant proportion of the American population to consider obtaining life insurance coverage. An important aspect of determining whether such coverage is necessary involves contemplating the worst-case scenario. Specifically, one should reflect on the financial implications for their loved ones in the event of their sudden demise. Considerations should include whether there would be adequate funds available to address final expenses such as funeral costs, medical bills, taxes, debts, and legal fees. Additionally, it is crucial to evaluate whether the family would have sufficient resources to meet ongoing living expenses such as rent or mortgage payments, food, clothing, transportation, and healthcare expenses. Furthermore, it is important to contemplate the impact on long-term financial objectives.
Without your contribution to the household, would your surviving spouse be able to save enough money to put the kids through college or retire comfortably?
The truth is, it's always a struggle when you lose someone you love. But your emotional struggles don't need to be compounded by financial difficulties. Life insurance helps make sure that the people you care about will be provided for financially, even if you're not there to care for them yourself.
To help you understand how life insurance might apply to your particular situation, we've outlined a number of different scenarios below. So whether you're young or old, married or single, have children or don't, take a moment to consider how life insurance might fit into your financial plans.
Life Insurance For All
Stages of Life
Life Insurance For All Stages of Life
Types of Life Insurance With Living Benefits
The low initial premiums make term insurance a practical alternative to permanent coverage, however, term premiums will eventually increase. At some point, if you continue to carry your term coverage, the annual premiums will likely exceed the level premiums that could have been had with a permanent policy and you will not have had the benefit of building any cash values. Term insurance often offers the opportunity to convert to permanent life insurance policy prior to the end of the term without having to provide evidence of insurability. Term insurance may be appropriate for young families with low cash flow and high protection needs, for consumers whose protection needs are temporary, or to supplement permanent life insurance.
INDEXED UNIVERSAL LIFE (IUL)
Indexed Universal Life is considered a flexible type of life insurance because it provides both premium and death benefit flexibility. It allows the owner to adjust the premiums according to their financial ability. IUL's offer the option of having your cash value accumulate at an interest rate that is based on the changes of a major stock market index. Another benefit of the IUL is that any gains earned on your cash value are locked in, and you are protected against any loss due to market downturn.
To use the IUL for Retirement Planning, Estate Planning, Asset Preservation, and/or Tax Protection, contact the insurance professionals at J. Nunes Financial today!
Whole Life insurance offers guaranteed premiums that will not increase or decrease, a guaranteed death benefit plus the guarantee of building cash value within your life insurance policy.
Whole life insurance is what is known as a "participating policy" which means your policy may share in the issuing company's profits which are returned in the form of a dividend payment. Dividends payments are generally declared annually by the company's board of directors and are paid to the policy owner on the policy's anniversary date and payments can be received in cash or used to purchase additional insurance protection or reduce future premium payments.