Why Life Insurance?
Life insurance is a core component of many families’ financial plans. Learn why it’s an essential investment for protecting your assets—and your loved ones.
Why do I need insurance?
Insurance helps provide something we all want—financial security. Think about your personal financial situation. Are you saving enough for retirement? Would your family be able to financially survive without your income?
If the answer to either question is “no,” you’re not alone. The good news is that you can help make the road to financial security smoother by making educated choices today.
Don’t neglect your insurance needs.
It’s easy to think of life insurance as something to “get later.” But it’s never too early to have a plan in place for the future.
Life insurance provides a degree of financial protection when you pass away. It can help your loved ones cover specific costs, and help maintain their financial wellbeing.
Life insurance death benefits are usually income tax-free, and can be used to supplement a retirement plan, pay off the mortgage, and provide funds for childcare, college, and more.
And some life insurance policies accumulate cash value over time. These can provide tax-advantaged money to help meet your own retirement or emergency cash needs, too.
There are two types of life insurance available:
- Term life insurance provides budget-based coverage for a specific “term” of time, and is best for covering temporary expenses like consumer debt or a mortgage. Some term policies can be converted to permanent policies.
- Permanent life insurance provides long-term coverage, plus tax-deferred cash value that can be accessed. Permanent policies usually come at a higher initial premium, but the cash value helps to offset future out-of-pocket costs.
Your financial advisor can help you determine which policies are best for your unique situation. Whatever your goals, a life insurance policy isn’t a “just in case” investment. It’s a way to help ensure that the people you love are cared for, even if you’re no longer with them.