Life insurance is one of those things most people avoid talking about. However, it’s a very necessary conversation. What some people don’t realize is that Life insurance is also in investment and can other benefits as well. 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 individuals’ death or other event, such as terminal illness or critical illness. In return, the policy owner agrees to pay a stipulated amount (at regular intervals or in 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 that comes from knowing you’re protecting your family’s financial future. And since Life insurance benefits are generally not taxable at the federal level, your loved ones can use the benefits to help take care of their living expenses in a variety of 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, such as 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 in order to execute a buy-sell agreement between partners or stockholders.