Protect your family with life Insurance

July 1, 2020

We all face the risk of mortality. We’ve all been through a risk-intense time with COVID-19. It’s important to purchase life insurance when you are in reasonably good health. In the event of the death of an insured, life insurance is designed to create immediate capital. It provides a precautionary measure in a financial plan to stabilize the financial security of loved ones reliant on your income or your capital provision. If you have a spouse/partner or children, make sure you have adequate life insurance coverage.

Life insurance when beginning a family.

When you have young children, it protects their financial future with a solid capital base.  Investments can be purchased from which to create an income to cover the living expenses of a family. Funds can establish a trust, from which a family can acquire income.

There’s an insurance plan for everyone. If you can’t afford the premium for lifetime coverage, consider term insurance or a combination of both. Term plans are quite affordable when you have younger children and little savings and/or small net worth. Buy enough insurance to meet your needs. Many families need $500,000 or more— even up to $1,000,000 during low-interest periods—to generate adequate investment income if the breadwinner were to die. For example, at 5%, $1,000,000 will generate $50,000 annual interest as pre-tax income.

Life insurance when retired. Lifetime plans can resolve estate planning problems. The tax-free death benefit can solve estate planning problems such as paying an estate’s tax liability on capital gains. Timed when needed, capital estate planning uses can: pay off obligations such as credit cards, debts, bills outstanding, loans, and/or estate taxes upon death; pay for the final expenses associated with a funeral and burial; create money to pass on to heirs such as children or a spouse/partner, or pay off business-related liabilities, or a buy-sell agreement. If you are over 65, there may be a plan we can find that gives you a basic amount of life insurance to pay for your final expenses.

 

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