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The Value of
Life Insurance
Assessing
Your Need
Types of Life
Insurance
The Value of Life Insurance
Life insurance is a crucial step in planning for
your future and the future of your loved ones. It
can fulfill promises made to your family if you are
no longer around by providing a death benefit to
your beneficiaries in return for premiums paid to
the insurance company. Life insurance can also
provide benefits while you are living.
Advantages of the Death Benefit
- Provides income tax-free money to your named
beneficiary(s) that can be used to pay funeral
expenses, debt, tuition, estate taxes or
virtually any financial need you leave behind.
- Can provide business security by enabling
partners to buy out the interests of a deceased
partner and prevent a forced liquidation.
Advantages of Living Benefits
- The cash value growth of a permanent life
insurance policy is tax-deferred1,
which means you do not pay taxes on the growth
of the cash value unless the money is withdrawn.
- Loans2 or
withdrawals can be taken against the cash value
of a permanent life insurance policy to help
with expenses, such as college tuition or the
down payment on a home.
1Accumulated
growth may be taxable upon withdrawal. If the policy
is a Modified Endowment Contract (MEC), tax
penalties may apply prior to age 59 ½. Consult a tax
advisor on your specific situation.
2Policy loans and
withdrawals reduce cash value and the death benefit
and may be subject to other charges outlined in the
contract.
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Assessing Your Need
The amount of life insurance you select should be
dependent on your personal and financial needs. We
can assist you in determining an appropriate
coverage amount and help you decide on which type of
life insurance is right for you.
Generally, you should consider life insurance if
you have:
- A spouse
- Dependent children
- Aging parents or a physically-challenged
relative who depends on you for support
- Retirement savings that is not sufficient to
ensure your spouse's future financial well-being
- A sizable estate
- A business
Life Changes — So Should Your Policy
As events happen in your life, your life insurance
coverage may need to change to adapt to your current
needs. Some life changes that may require you to
reevaluate your coverage include: marriage, divorce,
a new baby, purchase of a new home and retirement.
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Types of Life Insurance
There are several different types of life insurance
products available. The most common include:
Term Life Insurance
Term provides life insurance protection for a
specified period of time. If you do not currently
have life insurance, term can be a good place to
start. It's generally less expensive than permanent
life insurance, and is available in varying term
periods with fixed premiums from a one- (annual
renewable term) to 20-year period (level term).
Furthermore, term insurance is sometimes convertible
to permanent coverage, providing you with
flexibility as your needs change.
Whole Life Insurance
Whole life is a form of permanent life insurance
that remains in force during the insured person's
lifetime, provided premiums are paid as specified in
the policy. Whole life insurance can build cash
value.
Universal Life Insurance
Universal life is a form of permanent life insurance
characterized by its flexible premiums, flexible
face amounts and unbundled pricing structure.
Universal life can build cash value, which earns an
interest rate that may adjust periodically, but is
usually guaranteed not to fall below a certain
percentage.
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Quote
and apply for Term Life Insurance from Symetra:
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