Life insurance is an essential component of any sound financial plan. Like life itself, life insurance unique and dependent on personal and financial needs. As your life changes, your life insurance coverage needs may change also. Some life transformations that may require a policy “tune-up” include:
The most common types of life insurance are:
- Term Life Insurance –Term life insurance provides protection for a specified length of time. If you do not currently have life insurance, term coverage may be a good place to start. It’s generally less expensive than permanent (whole) life insurance, and is available for various time periods with fixed premiums from a one year (annual renewable term) to a 20-year (level term) period. Term life insurance is sometimes convertible to permanent coverage, providing you with flexibility as your needs change.
- Whole Life Insurance – Whole life insurance is a type of permanent life insurance that remains in force for your entire lifetime, provided premiums are paid as specified in the policy. Whole life insurance can be an investment opportunity, as many whole life insurance policies also build cash value over time.
- Universal Life Insurance –Universal life is a form of permanent life insurance characterized by flexible premiums, face amounts and an unbundled pricing structure. Universal life can build cash value, which earns an interest rate that may adjust periodically, but is usually guaranteed not to fall below a certain percentage.
Life insurance provides assurance for your family after you are gone. In addition, many life insurance options offer other benefits and investment opportunities you can take advantage of while you are living.
- Life Insurance Death Benefit – When you pass away, your life insurance provides income (tax-free) to your named beneficiary or beneficiaries that can be used to pay funeral expenses, debt, tuition, estate taxes, or virtually any financial need. Your policy can help provide security for your business as well, by enabling partners to buy out the interests of a deceased partner and prevent a forced liquidation.
- Living Benefits – The cash value growth of a permanent (whole) life insurance policy is tax-deferred, meaning you do not pay taxes on the growth of cash value unless money is withdrawn. Loans 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.
Cincinnati-based Mariemont Insurance, Inc. is a people-oriented business dedicated to meeting all of your insurance needs.