Life Insurance
Life insurance is a crucial step
in planning for your future and the future of your loved ones. It can
fulfill promises made to your family if you are no longer around by
providing a death benefit to your beneficiaries in return for premiums
paid to the insurance company. Life insurance can also provide benefits
while you are living.
Advantages of the Death Benefit
Provides
income tax-free money to your named beneficiary(s) that can be used to
pay funeral expenses, debt, tuition, estate taxes or virtually any
financial need you leave behind.
Can
provide business security by enabling partners to buy out the interests
of a deceased partner and prevent a forced liquidation.
Advantages of Living Benefits
The
cash value growth of a permanent life insurance policy is
tax-deferred1, which means you do not pay taxes on the growth of the
cash value unless the money is withdrawn.
Loans2
or withdrawals can be taken against the cash value of a permanent life
insurance policy to help with expenses, such as college tuition or the
down payment on a home.
(1)Accumulated
growth may be taxable upon withdrawal. If the policy is a Modified
Endowment Contract (MEC), tax penalties may apply prior to age 59 ½.
Consult a tax advisor on your specific situation.
(2)Policy
loans and withdrawals reduce cash value and the death benefit and may
be subject to other charges outlined in the contract.