Winning Strategies Group
Insurance and Risk Management
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LIFE INSURANCE
What is Life Insurance?
Ensure those who rely on you don't lose more than just you
Does your spouse have other funds — such as retirement savings — to draw on? Will your children and grandchildren be ready to support themselves?
For most people, the answer is no. That’s where Life Insurance comes in. Life insurance offers one of the most flexible solutions available. Additionally, permanent life insurance can serve double-duty as a conservative investment product.
If you have anyone that relies on you financially, you may wish to consider life insurance. Life insurance helps loved ones left behind have money for living expenses, like mortgages, groceries, medical expenses, and children’s education. It can lessen the stress of financial worries at a time when family members are dealing with the loss of a loved one.
There are two main categories of Life Insurance with various options available within each: Term Life and Permanent Life.
57%
of Americans have Life Insurance coverage in 2019
47%
of those customers don’t have enough coverage
(under $100,000)
600
companies offer Life Insurance policies in the US making it a competitive market
80%
of consumers think they cannot afford any insurance, or more than they currently have, because they think it costs 3-5x higher than it actually does
Term Life Insurance is a cost effective life insurance option that provides coverage for a set number of years, typically 10, 20 or 30. Premiums are usually level for the length of the policy. Term insurance can be an effective solution when the need for coverage is expected to be a temporary time period... such as for a mortgage, raising children or during peak income years.
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Permanent Life Insurance is a type of coverage that provides a death benefit for your entire life, with no end date. The policy has an internal account called a Cash Value that accumulates interest in a fixed account or in market-based accounts. Funds grow tax-deferred and may be used for any longer-term savings goals, such as retirement income, education, vacation or emergency funds.
Nobody wants to think about leaving the people close to them with heavy burdens. If your family – or your business partners — rely on your income-earning potential, that's exactly what could happen. Ensuring the continued well-being of a family or business entity is one of the single biggest worries of business owners and high earners.
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What will the people that rely on you do when you are no longer there? Will your business partners be able to fend for themselves and keep things going?
Variations include:
Face value of policy
Length policy remains in effect (permanent or term)
Ability of the policy to accumulate cash value
Specified or performance-based returns
Specified or variable premiums
Frequency of premium payments
Specific tax advantages of the benefit payment
Life insurance products have been created to meet specific needs, from key person insurance for businesses, to term policies that can see a young family through to maturity. Sometimes a family will establish a series of policies that can protect its assets for generations. Other families use life insurance to fund their charitable interests.