LIFE INSURANCE
Life insurance is one of those things most people avoid talking about. However, it’s a very necessary conversation. Some people don’t realize that Life insurance is also an investment and can have other benefits. Traditionally, it is a contract between the policy owner and the insurer, where the insurer agrees to pay a designated beneficiary a sum of money upon the occurrence of the insured individual’s or individual’s death or another event, such as terminal illness or critical illness. In return, the policy owner agrees to pay a stipulated amount (at regular intervals or lump sums).
The value for the policyholder is derived, not from an actual claim event, rather it is the value derived from the ‘peace of mind’ experienced by the policyholder, due to the negating of adverse financial consequences caused by the death of the Life Assured.
Protecting Your Family:
By preparing in advance, you’ll have the peace of mind from knowing you’re protecting your family’s financial future. Since life insurance benefits are generally not taxable at the federal level, your loved ones can use them to help take care of their living expenses in various ways.
- Any needs after the time of death, such as final illness expenses, burial costs, and estate taxes.
- Funds for a readjustment period, to finance a move, or to provide time for family members to find a job.
- Ongoing financial needs include monthly bills and expenses, daycare costs, college tuition, or retirement.
Safeguarding Your Business
If you’re a business owner or have business partners, it’s important to prepare for the unexpected. State Insurance Agency offers several Life insurance products that are designed to help you, as a business owner, to make it possible for your heirs to help pay estate taxes and help sustain the business during a change in management or to help provide funds to execute a buy-sell agreement between partners or stockholders.
