Life insurance products offer a spectrum of death benefit protection, spousal coverage, and cash-value accumulation features for a variety of needs. Life insurance is also used as an essential estate planning tool, helping to ensure that your beneficiaries and heirs aren’t responsible with an undue estate tax burden. After a careful analysis of your situation and objectives, we can help you obtain the coverage that addresses your needs, choosing among insurance programs from a wide variety of providers.
Why is life insurance planning important ?
Life insurance is important for several reasons:
1. Financial Protection:
Life insurance provides financial protection to your loved ones in case of your unexpected death. It can help cover expenses like funeral costs, outstanding debts, mortgages, and daily living expenses.
2. Income Replacement:
Life insurance can help replace lost income if you were to pass away. This is especially important if you are the primary earner in your family or have dependents who rely on your income. When buying life insurance, you'll want 10-20 times your annual income in coverage.
3. Estate Planning:
Life insurance can be an important part of estate planning. It can help ensure that your beneficiaries receive the assets you intended to leave them, without having to sell off assets to cover expenses.
4. Business Succession Plans:
Partners in business may also use insurance policies as a great financial tool to aid in succession planning. We’ll help you structure an insurance plan that makes sense for your needs.
5. Peace of Mind:
Having life insurance can provide peace of mind knowing that your loved ones will be taken care of if something were to happen to you. This can alleviate stress and worry during difficult times.
6. Tax Free Income:
Withdrawals from a life insurance policy can be done in a tax efficient manner and supplement your income. Tax-free income refers to any type of income that is not subject to taxation by the government.
Overall, life insurance is an important part of a financial plan, especially if you have loved ones who depend on you financially. It can help provide financial stability during a difficult time and give you peace of mind.
Without proper planning, be it Investment Planning, Retirement Planning, or Estate Planning, you’ll likely not invest successfully, retire comfortably, or leave a meaningful legacy for your beneficiaries. Without a well thought out Insurance Plan, every one of those facets of a financial plan could be exposed to unforeseen and unnecessary risks.
*The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance purchased. Before implementing a strategy involving life insurance, it would be prudent to make sure that you are insurable by having the policy approved. As with most financial decisions, there are expenses associated with the purchase of life insurance. Policies commonly have mortality and expense charges. In addition, if a policy is surrendered prematurely, there may be surrender charges and income tax implications.