Life Insurance
Life Insurance is an important consideration for anyone with responsibilities. In the event that the life insured passes away, a lump sum of money gets paid out to the beneficiary tax free. There are several different types of life insurance which can be structured in a variety of ways.
Term insurance is designed to provide you with insurance for a set period of time, at an affordable price. The most common types of term insurance are 10 year term and 20 year term. With these types of insurance you pay a level premium for 10 or 20 years and then the premium increases. Term policies are typically best for people who don’t have permanent insurance needs.
Permanent insurance is designed to provide insurance protection for your entire lifetime. With permanent insurance it is important to note that your insurance premiums never change. They stay the same over the lifetime of the policy. This means that compared to a term policy, your premiums will be much more expensive in the early years, but much less expensive over the lifetime of the policy.
Universal life insurance combines insurance and investments. The benefit of investing within a universal life insurance policy is that the interest you earn on your money grows tax deferred. Also, when the life insured passes away, that money can be passed on to the beneficiary tax free. There are also a variety of options that you can invest in within a universal life policy, depending on your needs.
At Total Financial Solutions, our advisors go through an in depth but easy to understand process to help you select what type of life insurance will be right for you. Contact us today to find out more.