Life Insurance

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ife Insurance Overview
The death benefit protection offered by a life insurance policy can be a key component of a sound financial plan. It can offer income protection to guard our loved ones' standard of living or estate liquidity to protect assets from the eroding effects of taxes. Why Do I Need Life Insurance?

A variety of expenses can burden loved ones in the event of lost life, including mortgage and other loans, child care and education. Without proper life insurance coverage, a major change in lifestyle and/or standard of living may be required to meet expenses. If you recognize the need for life insurance but have been delaying the purchase, consider the costs associated with waiting. * No one knows when the unexpected can occur. While unexpected loss isn't part of anyone's personal plans, it should always be considered in our financial plans. * The younger and healthier you are, the better your rates will typically be. * With permanent life insurance, account values have the potential to accumulate over the long-term, which can result in the ability to take loans or withdrawals from the policy's cash value, if necessary, and possibly even skip premium payments. Time is on your side. Both loans and withdrawals from a permanent life insurance policy may be subject to penalties and fees and, along with any accrued loan interest, will reduce the policy's account value and death benefit. Assuming a policy is not a Modified Endowment Contract (MEC), withdrawals are taxed only to the extent that they exceed the policyowner's cost basis in the policy and usually loans are free from current federal taxation. A policy loan could result in tax consequences if the policy lapses or is surrendered while a loan is outstanding. Distributions from MECs are subject to federal income tax to the extent of the gain in the policy and taxable distributions are subject to a 10% additional tax prior to age 59½, with certain exceptions.
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