What are possible advantages to buying life insurance?

Six possible advantages of life insurance might include: 1. An instant estate for your loved ones at a time when funds are most needed 2. Death benefits that are almost always non-taxable for named beneficiaries 3. If you name a beneficiary other than your estate, you could avoid probate costs 4. Some life insurance plans could offer your loved ones creditor protection 5. Build tax-advantaged capital for retirement purposes 6. Provide liquid savings through some permanent life insurance plans

What is the most common type of life insurance?

Individual life insurance is the most used. According to the National Association of Insurance Commissioners (NAIC) it accounted for 62% of all life insurance policies in the United States as recently as 2018.

What kinds of individual life Insurance are there?

There are two main kinds of individual life Insurance. Term life insurance which pays only if death occurs during the specified term. The term could be from 1 to 30 years. And whole life which is also called permanent insurance. It pays a death benefit whenever you die so it isn’t tied to a specific term.

Life Insurance

Q: What is the best life insurance policy?

According to Ryan Skinner of Apex Retirement Services, “best” means depends entirely on you and your circumstances. Countless life insurance plans are available, and each provides its own list of benefits. Each also comes with its own list of costs.

Life insurance can play a vital role in your financial security plan.

Is it Worth Paying for Life Insurance?

Yes, life insurance is worth paying for. In the event of death, it often provides tax-free lump sum payment. This could offer surviving family members more financial security.

Not to mention, a life insurance policy could pay for final expenses and debts. The deceased dependents may also receive some income as part of the policy payout.

Six other possible advantages of life insurance might include:

An instant estate for your loved ones at a time when funds are most needed
Death benefits that are almost always non-taxable for named beneficiaries
If you name a beneficiary other than your estate, you could avoid probate costs
Some life insurance plans could offer your loved ones protection from creditors
Build tax-advantaged capital for retirement purposes
Provide liquid savings through some permanent life insurance plans

For the business owner, life insurance is also critical and could help to continue your legacy.

Why are life insurance policies important to succession plans?

The reason life insurance policies are so important to succession plans is simple: money.

Without something to secure that money, says Ryan, your business’s future may be in question. To avoid falling into a financial pitfall, you should ensure the finances used in any buy-sell agreement with a life insurance policy.

Read the full article here.

What are the 3 Main Types of Life Insurance?

There are three main types of life insurance policies in today’s market. Individual, group, and credit insurance.

Individual Life Insurance

Individual Life Insurance
Individual life insurance is the most used. According to the National Association of Insurance Commissioners (NAIC) it accounted for 62% of all life insurance policies in the United States as recently as 2018.
The more common use of individual life insurance is to protect family. Yet businesses also buy it as a smart investment. How? It could protect the business from any economic loss that results from the death of the owner or key employee.
As a rule, you buy this kind of policy through a life insurance agent and there are face amounts as low as $10K. Larger amounts also exist.
Either way, these policies cover one of two things. (A) a specific term (term insurance) or (B), one’s whole life (permanent life or whole life).
Term Life Insurance
A term life insurance policy pays only if death occurs during the specified term. The term could be from 1 to 30 years.
Two kinds of terms exist. Level term is where the death benefit stays the same throughout the length of the policy. And decreasing term is where the death benefit goes down in increments over the course of the term.
What are the advantages of term life insurance? If the insured person dies, the beneficiary of the policy receives death benefits. Often, it also offers level premiums for your choice of years (let’s say 10, 15, 25 or 30 years).
Whole Life Insurance
Also called permanent insurance. This type of policy pays a death benefit whenever you die so it isn’t tied to a specific term. Three types exist:
1. Traditional whole life
2. Universal life
3. Variable universal life

Group Life Insurance

Group life insurance is a contract between an insurance company and a group. These plans may offer survivor and/or disability benefits as well.

The goal of the policy is to insure all the group members, usually for a set term. For e.g., employer provided life insurance. Or policies through a union/professional organization.

Once the term expires, a team member may be able to keep the policy going. In this case, they must pay the premiums to the insurance company directly.

The American Council of Life Insurers found that the number of group policies is going down. Also getting lower is the number of people choosing to end the policy on their own.

Credit Life Insurance

Credit life insurance pays the balance on loans of 10 years. Or for less time if the borrower dies before repaying the amount due.

When debt is left at death, this kind of insurance could protect the borrower’s family and the lender. Life insurers tend to issue credit insurance through various lenders. Like banks, finance companies, credit unions, and retailers.

For more information on the different types of plans, contact us today.

What is the best life insurance policy?

To paraphrase Ryan, what “best” means depends entirely on you and your circumstances.

Countless life insurance plans are available, and each provides its own list of benefits. Each also comes with its own list of costs.

Life insurance can play a vital role in your financial security plan. We can help you select coverage from a variety of life insurance options to meet your unique needs.

Call, email or ask us your pressing question by filling out our contact form. Or, if you prefer to read, Ryan’s book, Taking Stock could help you learn to assess your financial needs and prepare for worst-case scenarios.

Got questions? Contact us today.

LET US HELP YOU REACH YOUR GOALS.

Our approach to working with clients is one that is both relaxed and confident. The sound and well-researched solutions we provide to you is intended to establish a solid financial plan for your future.

– RYAN SKINNER, PRESIDENT