Personal / Life

Life Insurance

Life insurance is most commonly used to help protect your family from any financial effects of your and/or your spouse’s premature death. However, it can be difficult to think about or plan for such an event. Unfortunately, adequate planning is often put off until it’s too late. Although it may sound simple, there are many things to consider. There are many ways to protect your family with life insurance. Consulting with a life insurance professional can be vital!

Not Only For Family Protection

Life insurance planning is not only for those who support a family. There are several reasons for thorough life insurance planning. For example, have you recently purchased a new home? Have you recently been married? Have you made career changes? Other key purposes of life insurance include retirement and estate planning.

Life Insurance Proceeds & Taxes

Many people don’t realize that even though life insurance death benefit proceeds should be paid income tax-free to beneficiaries, there’s a chance that such proceeds will be included in the value of the insured’s estate, which may be subject to estate taxation.

Employer-sponsored Life Insurance

People often make the mistake of assuming their employer-sponsored life insurance is adequate. However, employer-sponsored life insurance is typically equal to only one year’s salary…far from enough for the family provider to protect his or her family adequately. And not enough for the average single person to repay any outstanding debts – often leaving parents and siblings dealing with such bills.

Life Changes…So Should Your Policy

For each of our neighbors, the right life insurance will be unique and dependent on personal and financial needs. As your life changes, your life insurance coverage may need to change in order to adapt to your current needs. Some life transformations that may require a policy “tune-up” include:

  • You recently married or divorced
  • You have a new child or grandchild
  • You have opened or expanded a business
  • Your health or your spouse’s health has deteriorated
  • You are providing care or financial assistance to a parent
  • Your child or grandchild requires assistance or long-term care
  • You recently purchased a new home
  • You are planning for a child or grandchild’s education
  • You are concerned about retirement income
  • You have refinanced your home mortgage in the past six months
  • You or your spouse recently received an inheritance
  • You have a sizable estate

Types

Term Life Insurance

Term life insurance provides protection for a specified period of time. If you do not currently have life insurance, term policies can be a good place to start. It’s generally less expensive than permanent (whole) life insurance and is available for varying time periods with fixed premiums from a one year (annual renewable term) to 30-year (level term) period. Furthermore, term life insurance is sometimes convertible to permanent coverage, providing you with flexibility as your needs change.

Whole Life Insurance

Whole life insurance is a form of permanent life insurance that remains in force for your entire lifetime, provided premiums are paid as specified in the policy. Whole life insurance can be an investment opportunity, as many whole life insurance policies also build cash value over time.

Universal Life Insurance

Universal life is a form of permanent life insurance characterized by its flexible premiums, face amounts, and unbundled pricing structure. Universal life can build cash value, which earns an interest rate that may adjust periodically but is usually guaranteed not to fall below a certain percentage.

What type of life insurance is best for you? Talk with us at Badger Insurance Advisors. We can assist in identifying the best protection for you.