Life Insurance

Life Insurance is protection against financial loss that would result from the death of an insured. It is an essential part of a financial plan to help protect loved one financially with a death benefit. The goal is to provide a measure of financial security for your families and businesses.

  • Life insurance provides an infusion of cash for dealing with the adverse financial consequences of the insured’s death.
  • Cash values grow tax deferred during the insured’s lifetime.
  • Death benefits are generally income-tax-free to the beneficiary.
  • Cash value withdrawals are treated on a first-in-first-out (FIFO) basis, therefore cash value withdrawals up to the total premiums paid are generally income-tax free.
  • Policy loans are income tax free.
  • Death benefits may be estate-tax free if the policy is owned properly
  • A life insurance policy may be exchanged for another life insurance policy (or for an annuity) without incurring current taxation.
  • A cash value life insurance policy may be thought of as a tax-favored repository of easily accessible funds if the need arises; yet, the assets backing these funds are generally held in longer-term investments, thereby earning a higher return.

Life insurance policies have exclusions, limitations, and terms for keeping them in force. Contact an insurance profession for costs and complete details.