Life Insurance is an essential part of financial planning that is meant to create provisions for your family and loved ones following your death.

A Life insurance policy can ensure financial security to those who mean the most to you, such as your spouse, children and dependent parents.  Having a carefully executed life insurance policy helps prepare you and your family for life’s uncertainties so you all have peace of mind knowing that the future is secure, no matter what happens.

Let me explain a little to you today about life insurance and how this all works:

Even after you pass on, there are going to be bills coming in the mail that your family will need to take care of.   Life insurance helps take care of those as well as immediate expenses, such as funeral services, unsettled hospital and medical bills, mortgage payments, business commitments and meeting college expenses for children.

Life insurance gives access to cash to pay for groceries and other daily expenses.  It also helps secure your estate by providing tax free cash to pay estate and other obligations.

With the right coverage, your family’s lifestyle and standard of living does not have to change from what they are accustomed to.

There are two basic types of life insurance:

Term life and whole life.  Term life policies offer death benefits, so if you die, your family will get money back, but if you live past the pre determined length of the policy, you get no benefits.

Whole life or permanent insurance is more expensive, but these policies are open ended and also accumulate a cash value that the policyholder can earn dividends and borrow against or cash in upon surrendering the policy.

Adequate coverage makes a difference. Advisors look at the number of dependents you have, how long they will be dependent upon you, and the lifestyle they expect to live after your death.  It’s not a simple equation, but in general, you will need more coverage than a typical plan offered by an employer, which usually totals one or two years of your gross salary.

If you have questions or would like to talk about setting up the right Life insurance plan for you, contact us so we can walk you through the pros and cons of available plans and help you choose coverage that  is ideal for both your current situation, as well as your future.