Life insurance… think about it, what if you were to die today? It is undeniable, but no one likes to contemplate his or her own demise. For some, death seems a very distant future event. Others are simply “too busy” to think about it.
Whatever the reason, delaying end of life and death of planning can result in expensive, unintended, even tragic consequences for your loved ones. You protect your family when you are living, continue to protect them when you are no longer here with life insurance.
What is Life insurance and How Is It Used?
In very simple terms, a life insurance policy is when an insurance company agrees to pay your beneficiary a specified amount of money when you die. Anyone can be named as your beneficiary including family, friends, charities, business partners etc. You can have multiple beneficiaries.
Your life insurance premium depends on…
- Smoking Status
- Amount of insurance
- Type of policy
- Lifestyle – risky occupation or hobby
Life insurance is a unique asset. Because of its potential high yield and its tax-favored benefits, it can be used to solve some of life’s perplexing financial problems.
Uses for life insurance are…
- Income replacement
- Pay off a mortgage
- Create an estate
- Pay death taxes and other estate settlement costs
- Pay off loans
- College fund for children or grandchildren
- Fund a business transfer
- Replace a charitable gift
- Equalize an Inheritance
Two Classes of Life Insurance
For the most part, life insurance fits into one of two classes: permanent life insurance and term life insurance. There are many variations within these classes. Imagine Insurance Advisors can help you sort through your options to determine which type and what amount of coverage is best for you.
Imagine Insurance Advisors – Your Life Insurance Experts
It is important to reevaluate your life insurance every two to three years to ensure it is still accomplishing what you need and want it to do. Life situations change as we age and our insurance needs may change as well.
There is really only one final question, “If you died today, would your plan be ready?” Imagine Insurance Advisors can help ensure that you have the proper life insurance plan in place to ensure that your family is well taken care of.