Life insurance is a financial tool that can help in more ways than one. Far from its origin as a way to pay for funeral costs, modern life insurance is a flexible resource that can help complement your financial strategy in several ways. One way I like to talk about life insurance is how important it can be in times of transition. What do I mean by that? A life insurance benefit can help when having access to cash can ease the burdens that may come when a loved one passes. Let’s look at a few examples. Estate management: Having access to funds to pay off existing debts, cover fees, and provide for daily expenses may help manage the process. Business transitions and buyouts are other instances where life insurance proceeds may help manage sudden financial burdens. Debts may need settling, legal costs may arise, and other parties involved may lead to complications or buyouts. Family legacy: Proceeds from a life insurance policy can help with inheritance among children or other beneficiaries. It can help cover educational expenses and real estate costs associated with moving, purchasing, or refurbishing property. Family income and daily expenses are among the most practical applications of a life insurance benefit. A life insurance payout may help with covering daily costs, helping cover or even paying off a mortgage, and managing expenses that help the beneficiary live the life to which they have grown accustomed. Each person and situation is unique. I like to review the options with my clients to determine their needs and present some life insurance ideas that may fit their overall financial strategy. One of these areas we discussed may speak to you—perhaps all of them do. I am always ready to discuss life insurance and how it might fit your strategy. Let me know when you want to discuss your future. |
Several factors affect the cost and availability of life insurance, including age, health, and the type and amount of insurance purchased. Life insurance policies have expenses, including mortality and other charges. If a policy is surrendered prematurely, the policyholder may also pay surrender charges and face income tax implications. You should consider determining whether you are insurable before implementing a strategy involving life insurance. Any guarantees associated with a policy are dependent on the ability of the issuing insurance company to continue making claim payments.
This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm.