Are you prepared to protect your family?
No matter where you are in life, one thing is certain: If someone depends on you financially, then you need life insurance. Why? Life insurance provides critical support in the case of premature death – so loved ones won't be left wondering how to meet financial obligations.
Life insurance can also play a key role in sustaining a small business, paying for college and supplementing your retirement. Later in life, it can help transfer your wealth to the next generation. Some scenarios that may affect your life insurance needs include:
Raising a Family
Raising a child is one of the great joys – and challenges – of life. And since it is impossible to predict the future, it is incumbent upon you to make certain that your family is properly protected.
As a parent, you'll have new financial responsibilities. Begin by reviewing and estimating future expenses. You may need to consider the costs of buying a new house or funding an education.
Now is also the time to re-evaluate your insurance coverage. A life insurance policy can be an important part of a family’s safety net. Whether you buy a permanent or term policy, life insurance is one of the best guarantees you can have to help protect your family’s future.
Make sure you have enough coverage. There are several strategies for estimating the amount of protection needed, including:
Also, give careful thought when naming your beneficiaries. Most insurance companies allow a primary, secondary and final beneficiary. It is advisable to name all three and be sure to review your investment, retirement, and estate plans periodically.
Universal Life Insurance
If you need the security of permanent life insurance protection, universal life may be the right choice for you. Unlike term coverage, universal life can build tax-deferred cash value over time that may be used to fund important expenses later in life.
Variable Universal Life Insurance
Variable universal life policies carry more risk than traditional universal life policies, but they also have greater cash value accumulation potential. A portion of the premium is allocated to a range of available investment sub-accounts, as elected by the policy owner. Investment professionals manage the funds, and the policy owner has the ability to make a number of transfers among the sub-accounts and a fixed account each policy year to accommodate changes in investment strategies.