Today's Life Insurance: More Than Just A Death Benefit
Why Do I Need Life Insurance?
If someone will suffer financially when you die, chances are you need life insurance. Life insurance provides cash to your family after your death. This cash (known as the death benefit) replaces your income and can help your family meet many important financial needs like funeral costs, daily living expenses and college funding. What's more, there is no federal income tax on life insurance benefits.
Most Americans need life insurance. To figure out if you need life insurance, you need to think through the worst-case scenario. If you died tomorrow, how would your loved ones fare financially? Would they have the money to pay for your final expenses (e.g., funeral costs, medical bills, taxes, debts, lawyers' fees, etc.)? Would they be able to meet ongoing living expenses like the rent or mortgage, food, clothing, transportation costs, healthcare, etc? What about long-range financial goals?
Life Insurance For All
Stages of Life
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
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.