Life Insurance can be used to replace a family’s lost income caused by the death of a breadwinner. It can provide estate liquidity, that is enough cash to protect your heirs from any estate taxes that would be payable. It can also be used to help build or increase your retirement fund.
Life Insurance provides protection against the loss of income that results from the death of a wage earner. It can also be used to help build savings for retirement. Periodically evaluating your life insurance needs should be an important part of your financial planning.
What is Life Insurance?
Why do I need Life Insurance?
Can't I wait to purchase Life Insurance?
You could delay purchasing life insurance. You may feel you can't afford it right now. Consider this, if your family is having a difficult time managing on your salary now, think about the difficult time your family will face without your salary. Not having life insurance is a huge gamble with potentially devastating consequences.
What are the different types of Life Insurances?
Term Insurance is straight forward and often the least expensive type of coverage. You can buy it one year at a time or for a specified number of years, hence the name Term. Most term policies are renewable at the end of the term although premiums will likely be higher. If you die during the term, your beneficiaries are paid the amount of the policy. If you are alive when the term ends there is no pay out.
Whole Life Insurance combines a death benefit with a savings plan. Part of the premium you pay goes towards building a cash value. Premiums are fixed and the policy will remain in force for your entire lifetime provided premiums are paid. When you die, your beneficiaries are paid the amount of the policy. There are a variety of Whole Life policies to fit your individual needs.
Universal Life Insurance is a variation of Whole of Life insurance. It offers flexibility in the amount of coverage, rate of savings accumulation and the payments of premiums. You can decrease or stop premium payments temporarily as long as there is a cash value to cover the premiums as they become due. Once you resume paying premiums, you can increase those payments to build back your cash value.
The information provided is intended for informational purposes only and does not necessarily reflect your particular situation. This website does not nor does it intend to dispense legal, tax or financial advice.
Life Insurance
Life Insurance
This web site may contain concepts that have legal, accounting and tax implications. It is not intended to provide legal, accounting, tax or investment advice. The information on this site is not intended to constitute an offer to sell or solicitation in connection with a product, security, nor is it giving legal and accounting advice.
Securities offered through Sigma Financial Corporation, member FINRA / SIPC
Investment Advisory Services offered through Sigma Planning Corporation, a registered investment advisor.
Always consult an attorney and an accountant before making decisions in your personal situation.
Daniel Krug & Associates Inc., 8040 Ortonville Rd. Suite D, Clarkston MI 48348 Phone (248) 625-2788 - Toll Free (800) 471-9080 - Fax (248) 625-7432
