Whether it’s Term Life insurance or Whole Life insurance, the traditional purpose of this insurance is to provide funds to support loved ones or businesses or causes after you die.
A younger couple may insure their lives to provide for their family in case one or both of them die. An older couple may insure their lives to provide for a surviving spouse. A business may insure a key person so that, if that person dies and must be replaced, the business can continue. A person may be passionate about a charitable or political cause and want to support it after they die.
Today there are life insurance policies that generate savings and funding for long-term care that can be used during a person’s lifetime.
The payments for life insurance are called premiums. Premiums are determined by the age, health and family health history of the insured and the amount of money (the death benefit) that will pass to the beneficiary. Online quotes are rarely accurate. There are many variables. Work with a qualified agent to get the best price on the best plan for you.
Term Life Insurance protects you for a certain term of time: 10,20,30 years. When it’s over and you haven’t died, the benefits have. You must re-up. All the money you’ve paid in premiums is gone.
Term Life Insurance policies can be tailored to guarantee re-insurability and conversion to Whole Life Insurance.
Whole Life insurance is meant to last your whole life. Even better, today’s policies go far beyond providing a death benefit. They are remarkable saving-earning-available-multi-use insurance you can benefit from during your lifetime.
You can take withdrawals of cash up to the amount of paid premiums income tax free. You can borrow against the cash value of the policy and maintain tax-free treatment. (Unlike investment earnings and 401ks, SEPs, etc. that are subject to income tax.)
Nobody but the owner and the beneficiaries can touch what you’ve paid in, what those payments have earned and the death and/or Long- Term Care benefits your policy provides.
You can receive up to 90% of the policy’s death benefit, paid to you not the provider, when you need care. If you don’t need long-term care, the money stays intact in the death benefit. (Unlike stand-alone LTC polices that give you nothing if you don’t use the insurance.)
Whole Life Insurance has been called the first best investment a person can make. It provides protection, world class savings and liquidity during your lifetime and beyond.
Two of the Pearlstein Principles are:
Never live without a financial plan.
Never buy insurance alone.
Online quotes can’t ask enough questions to be reliable. For a free, no obligation conversation about the insurance that benefits your life, call us at 847.362.8888.