Insight advisors are proud to integrate valuable life insurance analysis within your financial plan. It’s our fiduciary responsibility to guide you towards the best life insurance policy for your situation. Our goal is to ensure your family has adequate protection for the unexpected.
People tend to overlook the need for life insurance before they have hefty financial obligations. However, this is the best time to establish a policy; it is much easier to lock in a low rate when you are young and healthy. If you plan to marry and have children one day, it is one of the best way to protect them in the future.
You personally benefit from life insurance because some types of policies offer tax-free access to the cash value the policy has accumulated through loans and withdrawals. If you experience a medical emergency, some carriers offer living benefits that will allow you to borrow up to 80% of your policy. Young adults often feel invincible and life insurance isn’t on their radar.
Unfortunately, accidents can happen to anyone at any age, but life insurance can be there to protect you when you face large medical expenses.
Although life insurance offers much value in protecting yourself during your lifetime, the greatest benefit is the tax-free death benefit proceeds that your loved ones will eventually receive. If you plan to marry and have children one day, it is the best way to protect them in the future. Life insurance is a necessity, not a luxury, if your loved ones are your first priority.
People don’t buy life insurance because they are going to die, but because their loved ones are going to live. It is hard enough to lose someone you love, but then imagine the added, devastating financial hardship of a family who lost their main breadwinner. In the event of a death, life insurance can provide income for family and help them pay off debt. Life insurance simplifies the process of passing wealth to beneficiaries, and you can establish a plan within your policy to pay for a loved one’s education. It is also essential for covering funeral expenses, which cost an average of $7,000. This cost will only inflate as years pass by.
To put the cost of life insurance in perspective, although it does vary by gender and health factors, it is typically less than a cell phone bill. You can keep the cost low by initiating your plan sooner rather than later. In your 20’s, the cost only increases by a small amount each year. Through your 30’s and 40’s you will still qualify for a good rate, though it slightly increases each year, especially in the late 40’s. By the time you reach your 50’s health insurance is significantly more expensive and usually harder to qualify for medically. After 50 the cost of life insurance increases notably with each year.
Lock in your rates as early as possible to ultimately save yourself a large sum in premiums while providing wealth for your loved ones. Also, 3 out of 10 people report that they don’t feel protected enough by their current life insurance plan. You can always change plans or add more coverage to give yourself the peace of mind that you deserve. If you are thinking about protecting your family, a financial advisor can help you make a plan to take action.
Any distributions are taken through loans and withdrawals which reduce your policy’s cash surrender value and death benefit and may cause the policy to lapse. Loans are not considered income and are tax free. Withdrawals and surrenders are tax-free up to your cost basis, provided your policy is not a modified endowment contract (MEC).
It’s never too early to start thinking about life insurance.
Schedule a complimentary meeting or phone call to discuss your options with one of our Financial Planners.