The Miracle of Life Insurance

Patrick

POSTED BY

Patrick McGuire

Financial Advisor

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The Miracle of Life InsurancePeople may not want life insurance, but they do want what life insurance can provide. 

It can pay all debts, it can eliminate a mortgage and it can provide cash to be invested to replace the lost income of a breadwinner. Life insurance can provide money for a child’s education, it can create a charitable gift and it can provide peace of mind to know that all of these concerns are covered. 

Although there are different types of coverage and they can be structured in several different ways, they all serve one purpose: to deliver the right amount of money at the exact moment it may be needed the most. Life insurance is time – time that you may not have. If you have debt or love someone, you need life insurance. 

There are two basic types of coverage – term and permanent. Term guarantees coverage for a specific period of time. When your term is up, the premiums will increase. The cost is cheaper than permanent insurance; however, the policy generally generates no cash value. Term insurance is like renting a house, while permanent is comparable to buying a home. The premiums are more, but you own the policy for life and it has the potential to build equity. There are variations of permanent life insurance but they all have the two basic components: death benefit and cash value. Your cash value offers certain and stable returns. In many cases, permanent insurance is the foundation to a solid retirement plan. 

The tax benefit of the permanent policies is often overlooked. Designed properly, this can be an excellent addition to your financial plan. 

So how much insurance do you need? That depends on your situation. There are several factors to consider, such as income replacement, human life value or financial needs analysis. Your specific needs can be satisfied with term, permanent or a combination of the two. Regardless, the only policy that matters is the one that is in force when you need it the most - on the day you die. Speak with your Rogers Group Financial advisor to determine the best solution for you.