Life insurance is a contract between you and an insurance company. The main purpose of life insurance is to provide a financial benefit to your loved ones in the event of an early death. Typical reasons for buying life insurance include paying funeral expenses, providing mortgage assistance, supplementing educational expenses for children and spouses, replacing lost income, and helping to protect the value of an estate after the insured passes on.
Life insurance offers a variety of benefits:
- Protection against the financial risk of dying too soon
- Some also offer the opportunity for cash value accumulation
Life insurance could be right for you if you want:
- The reassurance of knowing your loved ones will receive an income-tax-free death benefit after you’re gone
- The ability, in certain cases, to add cash value accumulation potential in addition to the death benefit
- Additional ways, with some products, to help with supplementing expenses, including medical bills, college expense, replacing lost income, or covering other emergency costs via policy loans and/or withdrawals using any available cash value, if needed.1
1Policy loans and withdrawals will reduce the available cash value and death benefit and may cause the policy to lapse, or affect guarantees against lapse. Additional premium payments may be required to keep the policy in force. In the event of a lapse, outstanding policy loans in excess of unrecovered cost basis will be subject to ordinary income tax. Tax laws are subject to change and your clients should consult a tax professional.