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Typically whenever a person hears “life insurance” the first thing that pops in their head is money received after someone passes away. While a payout after a loved one’s death is in fact a huge part of life insurance, it is not the only important thing to know about. Other than protecting your loved ones after death, we have put together twelve other things to think about when it comes to life insurance.
Paying Your Children’s College
While your child talking about college is an exciting thing to hear as a parent, it can also bring on financial stress. College can be expensive and you might find yourself wondering either how you will afford it or worrying about your child being stuck with mountains of debt after graduation. One perk of life insurance is that you can use the payout from your policy to pay off student loans or send your children off to school!
The common thought many people have when they hear the word “estate” is a mansion or something extravagant. In actuality, your estate is everything you own. This consists of your vehicle, your house, your checking and savings, and more. It is a good idea to plan out what is going to happen to all of your assets in case of death.
This strategy allows your assets to be passed along to the specified parties in a tax-free way. By using a transfer of single-premium assets, you can secure death benefit protection. This is a great way to look out for your loved ones but not only passing along assets, but doing it in a smart, easier way.
Indexed Universal Life
This particular type of life insurance allows for a permanent policy duration with flexible premiums. One of the best things about this life insurance policy is that it plays on the movement of the stock market and allows for interest to be accumulated based on that. Something that could really grow in your lifetime.
Life is full of changes, unexpected and intentional. A policy review is a good way to take a look at anything that may have changed in your life and could affect your policy and ensure that you are getting the best and most appropriate policy.
This is an option to offer to the most valuable employees at a business. It does not necessarily have to be offered to the entirety of your staff, but just the top-performing ones. By doing this, you can reward and retain vital assets to your company.
Family Needs Analysis
Like we stated earlier, life changes and people change. By taking a quick look at your books and documents, it may be very evident that your clients’ needs have changed. By running a family needs analysis, these can be evaluated and altered as needed.
Another sales concept that is useful during a client’s living years instead of just something to benefit their family in passing. A client’s policy may have cash value growth potential, especially during retirement years. This can be used towards income that is tax-free.
Single Parent Term
Single parents could be one of the most vulnerable groups of people in need of life insurance. What is going to happen to their children when they pass? Especially if only one parent is involved? It is highly recommended to have a life insurance policy set up in case of tragic circumstances.
Yet another strategy to benefit the living! Many people have a savings account or accumulation of assets over time. This strategy allows the assets to be passed down to the specified recipient while maintaining cash value.
Term vs Permanent
Two different life insurance policies are term and permanent. Permanent life insurance policies have a cash value component while term does not. As their names state, term is set for a certain amount of time while permanent stays the same. Finding which policy best suits you is ideal when picking a policy.
Everyone needs a roof over their head, and many have grown attached to the one they have grown up in and/or made memories in. Life insurance ensures that the survivors of a lost loved one will be able to keep making the mortgage and stay in their home.
Bridging the Gap
It is never a good idea to go without life insurance or to not have enough or the right policy. With all the information we have given today, we hope yours is in place or that you are planning on setting one up.
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