Financial Planning Information
The purpose of life insurance is to provide your loved ones (known as the beneficiary) with a large sum of money if you die prematurely.
Notice: YOU SHOULD ONLY PAY FOR OR OWN LIFE INSURANCE IF YOU NEED IT OR WANT IT. IT MAY NOT BE THE BEST SOLUTION FOR YOUR NEEDS UNLESS YOU NEED THE DEATH BENEFIT.
Purchasing or continuing to pay for life insurance should only be done after having your needs professionally analyzed. Important considerations could include:
- Is the need temporary or for the rest of your life?
- Will your needed death benefit increase, decrease or remain the same for the protection period?
- Is term, universal life, variable life, or whole life insurance the best solution for your needs?
- Is it better to buy term and invest the difference in premium payments or by permanent insurance such as universal life, variable life or whole life insurance?
- Do I have medical conditions that might cause increased premiums?
- Which life insurance company is the best for my particular needs, including death benefit, the number of years I require protection and my particular health conditions?
- If I purchase term insurance, is there a chance I might need to convert it to a permanent policy later on?
- Who should the owner and beneficiary of my policy be? I heard if done incorrectly, it could affect my estate taxes.
- Should the beneficiary of my policy be a trust to provide an income stream to my beneficiaries versus a lump sum single payment?
- How should the proceeds of my life insurance policy be handled if I have minor children or disabled dependents?