Wednesday, January 18, 2023

011823 What Is Life Insurance?

Life insurance is a contract between a life insurance company

And a policy owner.

A life insurance policy guarantees the insurer pays a sum of

Money to one or more named beneficiaries when the insured

Person dies in exchange for premiums paid by the policyholder

During their lifetime.

 

Key Takeaways…

 

* Life insurance is a legally binding contract that pays a death

Benefit to the policy owner when the insured person dies.

 

*For a life insurance policy to remain in force, the policyholder

Must pay a single premium upfront or pay regular premiums

Over time.

 

* When the insured person dies, the policy’s named beneficiaries

Will receive the policy’s face value, or death benefit.

 

* Term life insurance policies expire after a certain number of years.

 

* Permanent life insurance (whole Life) policies remain active until

The insured dies, stops paying premiums, or surrenders the policy.

 

* A life insurance policy is only as good as the financial strength of

The company that issues it. State guaranty funds may pay claims if

The issuer can’t.

 

 

Why Do I Need to Get Life Insurance?

 

Steps in the insurance buying process…

 

* Determine your goals; determine how much insurance you need

To meet your goals over time, and determine what you can afford

To pay.

 

* Learn what types of insurance can help you meet your needs.

 

* Remember, working with a financial professional can help make

This whole process easier. A financial professional can help explain

The differences between types of policies, help you calculate the

Amount you need, and present potential options that may best suit

Your needs.

 

6 Reasons to Purchase life insurance…

 

Life insurance can give you lasting peace of mind in terms of the

Assurance that you have provided a legacy. That’s because the

Right coverage can offer a valuable combination of benefits, so that

You and your loved ones know exactly what you’re getting.

Of course, you have to make a long-term commitment to paying

Premiums and keeping the policy in force. 

 

Some of the most common reasons for purchasing

Life insurance include…

 

1. Guaranteed Protection
if you have a family, a business, or others, who depend on you,

The life insurance benefit of a whole life policy acts as a financial

Safety net.

When you die, your beneficiaries will receive a lump-sum payment

That is guaranteed to be paid in full (provided all premiums are paid

And there are no outstanding loans).

Its essential protection that you can count on to be there for your

Loved ones when needed.

 

2. Income Replacement
Imagine what would happen to your family if the income you provide

Suddenly disappeared?

With whole life insurance, you can help make sure that your loved

Ones have the money they need to help…

* Pay the mortgage

* Afford childcare, health care, or other services 

* Cover tuition or other college expenses 

* Eliminate household debt

* Preserve a family business

 

3. Tax-free Benefit
Your beneficiaries will be able to enjoy every penny you leave them.

That’s because the benefit of a life insurance policy is generally

Passed along federal income tax free.

 

4. Guaranteed Cash Value Growth
As you pay your premiums, your Whole Life policy builds cash value

That is guaranteed to grow—tax deferred—and can help meet a

Variety of financial goals…

* Supplement retirement income 

* Fund a child or grandchild’s education 

* Pay off a mortgage 

* Protect existing assets 

* Establish an emergency fund 

 

5. Dividend Potential
One of the benefits of purchasing whole life insurance from Plum Life

Is that you will be eligible to receive dividends. Although they are not

Guaranteed, when dividends are awarded, you can take them in cash,

Or use them to buy paid-up additional insurance that increases your

Coverage and cash value, or take them in cash.

 

6. Optional Riders
There are several ways to tailor a whole life policy to meet your

Individual needs. For an additional cost, you can use riders to purchase

additional protection without further underwriting, to pay your premiums

If you become disabled, to use some of your face amount to pay for

Chronic illnesses, or to purchase coverage for your children.

Your agent can help you decide if any of these riders are right for you.

 

I STILL MAKE HOUSE CALLS!

Hayden Childs

Alabama Licensed Insurance Agent

(205) 269-1382

shcmail34@yahoo.com

www.haydenchilds.net

 

 "The grief is bad enough,

Don’t leave the burden

To your family!” 




 

 

 

 

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