LIFE INSURANCE
Life insurance is meant to replace your income if you die prematurely. If you’re married, in a committed relationship, or have children who depend on your income, you need life insurance. Or, if any of these could be in your future. Don't forget, if you have a stay-at-home spouse or partner caring for your home and children, you would be faced with some very substantial costs to replace those services if he or she dies.
LIFE INSURANCE EXPLAINED
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TERM LIFE INSURANCE BASICS:
• Coverage for a “term” or period of your life
• Lower premiums for higher coverage
• Provides a tax-free death benefit with a fixed rate for 10-30 years
• No equity – cannot be used as cash value
EQUITY-INDEXED UNIVERSAL BASICS:
• A permanent policy
• Protection carries with you your whole life
• Can build equity, have cash value and dividends
• You can borrow from the cash value on a tax-free basis
• Follow a stock market index
• Premiums are flexible
• Higher premiums than term life, but can be more valuable in the long run
WHOLE LIFE INSURANCE BASICS:
• A permanent policy
• Protection carries with you your whole life
• Can build equity, have cash value and dividends
• You can borrow from the cash value on a tax-free basis
• Premiums stay level; guaranteed to never increase
• Higher premiums than term life, but can be more valuable in the long run
TERM AND WHOLE LIFE COMBINED:
• Build lifelong base of whole live coverage
• Supplement specific times of your life with term insurance
