Life Insurance

There are many reasons to purchase some form of life insurance including:

• Provide for daily living expenses after your death
• Pay for funeral and other final expenses
• Pay for death taxes
• Pay off your mortgage or other debts
• Pay for college or other expenses for your children
• Supplement your surviving spouse’s retirement income
• Make charitable gifts

Business owners frequently use life insurance to:

• Fund a buy-out or transfer of their business assets
• Protect their business from the loss of a key employee
• Pay off corporate debts

In addition to the security it provides in the event of your death, life insurance is appealing because:

• The cash value of the policy accumulates tax-deferred and, at the time of your death, is paid out tax-free
• You can borrow, tax-free, against the cash value of the policy

How much do you need?
In general, people buy an amount of life insurance worth five to ten times their annual income. How much you require depends upon your personal situation and what you intend to use the proceeds for. If you have several young children, for example, who will need to attend college, and a spouse who has no independent income, you probably need more life insurance than others.

How much will it cost?
The amount you pay will be determined by the following factors:

• Type of policy you buy
• Your general health status
• Your age
• Your smoking status
• Your gender
• Your occupation and hobbies

Every person’s needs are unique. It is important to have a personal consultation to determine what type of life insurance would best meet your goals.