5 Short Life Insurance Questions:
True or False?
- In addition to leaving money to loved ones, some life insurance policies let you build cash value you can use during your own lifetime. True or False
TRUE. You can borrow or withdraw cash from some types of life insurance for a variety of reasons, including starting a business. Like that food truck you’ve always dreamed of.
- The cash value of some life insurance policies can grow tax-free and be used to supplement retirement assets. True or False
TRUE. Certain types of life insurance can help you build cash value and the tax-free interest can help improve your retirement lifestyle. Go ahead, kick back and relax.
- The cash value in life insurance must be used for specific needs. True or False
FALSE. You’ll be glad to know you can borrow from today’s cash value for any reason, like education costs. With the average cost of $215K to attend a 4-year college, that can help your spirits soar.
- Some life insurance policies have the flexibility to help you pay for things like medical costs while you’re living. True or False
TRUE. Did you know the average medical expenses for a retired couple are $285K? When your life insurance policy helps pay for that, it can really life a burden from your shoulders.
- The cash value of your life insurance policy is subject to market downturns. True or False
FALSE: Many life insurance policies let you benefit from the market’s upside while safeguarding you from downturns. That can help keep the wind in your sails.
Life insurance policies will protect your beneficiaries with financial stability and security when it matters most. In the event of your passing, life insurance provides financial help to your beneficiaries. Life insurance can help your beneficiaries with:
- Covering any lost income, helping continue the same standard of living
- Paying off any debts
- Paying for your children’s education
- Covering funeral and related costs
Which is right for you? First, always ask yourself why you need your life insurance policy and what you’re trying to accomplish by having a life insurance policy. Are you insuring your life so that when you pass away your children will be able to go to college or so your spouse will be able to pay off the mortgage? A temporary form of life insurance – term life – is well suited for these concerns. If you are more concerned about providing income to a widow or widower for life, funding retirement, or passing on wealth to future generations you will find permanent life insurance to be better suited for these goals. If you have a temporary goal in mind then term insurance is probably best.
However, if you are looking to address a long term need or concern then its best to look at the right permanent life insurance policies for you. Buying insurance of any kind is often confusing. There are always a lot of factors to be considered. Consult with us today to help determine the best type of life insurance and the appropriate premiums for your situation. Our agents are here to help you make a decision that’s right for you!
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