| |
Life Coverage
If you would like a quote
for Life Insurance, you may call our office at 1-641-782-4626 so
that we can provide you with the personal attention you deserve with your
Life protection.
 Life insurance is an asset
that helps to add value to your estate by providing potentially high yields
and different benefits on taxes.
General Purposes of Life
Insurance
Creating an Estate:
Life insurance can create an instant estate. Often estate owners are not
able to create sufficient funds to take care of his/her loved one and life
insurance provides an option to do this.
Paying estate taxes:
Life insurance can pay for estate settlement costs and taxes. These types of
costs can range from 3 or 4% to over 50% of the estate. It is important to
remember that Federal Estate Taxes are do nine months after and individuals
death.
Funding a business
transfer: Often times business owners would like to purchase a
share of the deceased owner's estate. Life insurance can provide the
financing needed to do this.
College Funding:
Life insurance can help provide funds for college. In a policy on a
parent or minor's life, the cash value increases, and this can be use to
accumulate funds that are needed to finance a college education.
Retirement Funds:
Life insurance policies are a great way to earn significant returns to help
accumulate the funds that are needed for retirement.
Loan Guarantees:
Life insurance allows for funds that can be used to pay off business or
personal loans.
|
Types of Life Insurance
Term Life:
Term life insurance provides temporary protection (a death benefit) for a
stated term period. Some of the advantages of Term life insurance are a low
cost per thousand dollars of coverage in the early policy years, it is ideal
for young couples with major family obligations and have a limited income,
and it is ideal as a method to insure outstanding debt obligations such as a
mortgage.
Whole Life:
Whole life insurance provides permanent protection for the life of
the insured. Some advantages of Whole life insurance are a low cost per
thousand dollars of coverage in the later policy years, it provides
permanent protection for the life of the insured, it provides a level
premium that will not increase with age, it provides a savings element that
can be borrowed or surrendered, and it provides flexibility through
non-forfeiture values.
How much life insurance should
you own?
Typically, the amount of life
insurance that a person should own is six to eight times the amount of their
annual earnings. However, there are many important factors that should be
taken into consideration. Things like: Is the applicant married? If so, what
is the spouses income? How many persons are dependant on the applicant? or
even, What is the amount of death benefits that are payable from social
security?
Due to the amount of
calculations needed to determine the proper amount of life insurance needed,
it is important to meet with an insurance advisor. |
|
