Life Insurance
Provides your loved ones with an income-tax free lump sum of money they can use to cover bills and other ongoing expenses so they can maintain their lifestyle when you’re no longer here to help take care of them yourself.
What life insurance can do:
- Cover final expenses including a burial, cremation, memorial or funeral; last wishes; outstanding medical bills and other debts.
- Supply the necessary cash flow to pay bills and household expenses, so your loved ones can continue to live the life you want them to live.
- Pay tuition, fees, and education-related expenses for children and other family members, from pre-K to advanced degrees.
- Provide lump-sum or ongoing donations to charities you support.
- Deliver supplemental cash flow to subsidize your retirement plan tax efficiently.
- Create a tax-efficient way to take care of your estate and leave a legacy for your heirs.
Basic differences of term and permanent insurance
| Benefit | Term | Permanent |
|---|---|---|
| Length of protection: | Temporary (10, 20, or 30 years) | Lifelong |
| Pays a death benefit: | Yes, during the coverage period only | Yes |
| Cash value feature: | No | Accumulates over time |
| Cost: | Lower premium | Higher premiums |
| Coverage best for: | Specific shorter-term financial needs (e.g. cover mortgage, debts, college) | Longer-term financial planning and wealth transfer |