Often your most valuable asset is your ability to work and provide for yourself and your family. Life insurance is a key component of any well-constructed financial plan. With a financial analysis, we can help establish the appropriate amount and type of insurance.
As independent insurance agents, we consider your age, health, and financial plan to search among dozens of leading insurance companies to find policies that will help protect your loved ones and benefit your financial plan.
There are many types of life insurance that have different costs and benefits. Whether it is term life, universal life, indexed universal life, or whole life, we will help simplify the choices and identify types of life insurance that best suit your needs.
Life insurance is primarily designed to provide a death benefit to help you provide for your loved ones if something were to happen to you. However, there are many benefits that people are not aware of.
One of the benefits of permanent life insurance and some term-life insurance policies include access to a large portion of the death benefit if you were to suffer from a chronic, critical, or terminal illness. So, for example, if you have a stroke, heart attack, cancer or other qualifying event, you can access a portion of the death benefit for that year. A similar benefit would be accessible if you need long-term care due to the inability to perform two out of the five activities of daily living or diminished mental capacity. The benefit of these types of options are that the funds come to you tax-free and you can use the money any way you like or need. No receipts or qualifying expenses have to be tracked.
Permanent insurance provides a death benefit, but also allows for the growth of a cash value account. Part of your premium goes to the cost of insurance while another portion goes to the cash-value account. These funds are invested by the insurance company and have the potential to grow over time.
Cash-value accounts grow tax deferred, so the growth is not slowed by taxes on capital gains or dividends, similar to an IRA. However, funds from this account are also generally distributed income tax free. This benefit can make a permanent life insurance policy a great addition to an overall financial plan.
The benefits of the tax-treatment for the cash value account can be especially valuable to clients that expect to have higher incomes in retirement.