Why buy life insurance?

• To protect and support your beneficiaries' home and livelihood.


• To replace your income and minimize the debt load for your heirs.


• To provide beneficiaries with income tax free proceeds.


• To provide heirs with benefits to pay the tax on your estate.


• To help protect the value of your estate.

Life insurance helps protect the financial security of your family in the event of your untimely death. This is especially important when you are the primary wage earner. The owner of the policy pays the insurer premiums in exchange for a promise to pay the beneficiaries a death benefit upon the death of the insured.

What are your options?
Essentially, insurance companies offer two different types of life insurance policies: Permanent and Term.

Permanent insurance: Permanent insurance coverage such as whole life, universal life and variable universal life have the potential to provide coverage to a specified maturity date. Learn the Six Commitments of permanent life insurance.

Term insurance: Coverage that lasts for a specific time period and has two components: premium and death benefit.

Other facts about life insurance that you need to know:

• Life insurance is an essential part of financial planning.


• Six factors to consider during the insurance purchase process.


• Income tax-free death benefit proceeds payable to your beneficiaries.


• Needs and goals determine the amount to own.


• Helps ensure that your dependents are not burdened by debt.


• The younger and healthier you are when you purchase life insurance, the less it will cost you to own a life insurance policy.


• Life insurance needs should be reevaluated when major events occur in life such as marriage, the birth of children or a business startup.