Life Insurance
...DID YOU KNOW LIFE INSURANCE IS AN ESSENTIAL TOOL IN BUSINESS AND IN DIVORCE?
Life Insurance After Divorce
Sorting out life insurance after a divorce can be a little confusing, and it's important to understand all the implications a divorce can have on this area of your finances. Life insurance is usually connected to your spouse in some way, and you'll want to evaluate your future needs as well as your beneficiaries to ensure you've covered all your bases. Here are a few points.
- Insuring Future Alimony and Child Support Payments don’t stop if your ex-spouse dies
- Update Beneficiaries
- Changing Policy Ownership to make sure you’re the owner of the policy
Business Owners
Small business owners might want to use life insurance to fund a buy/sell agreement. Simply put, a buy/sell agreement is when each business owner purchases a life insurance policy on each of the other owners. When an owner dies, the surviving owner uses the death benefit to purchase the deceased owner's share of the business. Life insurance can help keep your family business “in the family” by covering an outstanding debt that the business may have.
Empty Nesters
If you were to die today, you may still be paying a mortgage, car payments, etc. Would your spouse be able to make ends meet without your paycheck?
Retirees
Even though you are no longer earning a paycheck, having life insurance can help your surviving spouse fill in the gap between Social Security benefits, pensions, medical expenses, and long-term care costs. A life insurance death benefit can help your spouse continue to live his/her current lifestyle.
Term Life Insurance
...IS PURE, LOW-COST LIFE INSURANCE
Term insurance, is life insurance which only covers you for a certain period of time, say 25 years. If the term concludes and you’re still alive, the policy expires with no other benefits. Term insurance can be considered “pure insurance” because it provides a specific, unchanging death benefit within the term.
The appeal of term insurance is its low cost. Due to its lack of features relative to permanent insurance, the fees on term coverage are extremely low. The broad appeal of term coverage means competition is also strong, driving costs down further. In summary here are the Pros and Cons:
Term Life Insurance PROS:
- Provides pure insurance coverage
- Very low costs
- Insurance cost savings can be invested
Term Life Insurance CONS:
- Insurance protection expires after period of time
- No cash value build-up
Permanent Life Insurance
...INSURANCE PROTECTION PLUS CASH VALUE
As opposed to term insurance which by definition has an expiration date, permanent insurance is just that--permanent. It stays with you your whole life. However, it’s not simply a never-ending “pure insurance” policy like term coverage.
Permanent insurance has two components: insurance protection and cash value. These two elements work in tandem with each other over your entire life. Going one step further, under the umbrella of Permanent Insurance we have Index Universal Life (IUL) which is pegged to a financial index such as a stock index with many tax advantages. As time passes and you make your premium payments, your policy gradually increases in cash value and decreases in insurance protection. Here are the Pros and Cons:
Permanent Insurance PROS:
- Provides tax-free death benefit
- Builds cash value
- IUL policies allow cash value loans, generally free of income tax
- Cash value grows tax-deferred
- Policy loans are allowed on the cash value and are generally income tax-free.
- Acts as an account for "forced savings"
Permanent Insurance CONS:
- More expensive than term insurance
- Cash value element may be unnecessary for some families
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Calculate how much you need.
It really does pay to have Life Insurance
There are many types of life insurance, but for all of them, the bottom line is the same:
Pay cash to your family should you die
Allowing loved ones to remain financially secure. Life insurance payments can be used to cover daily living expenses, mortgage payments, outstanding loans, college tuition and other essential expenses. And, importantly, the death-benefit proceeds of a life insurance policy are almost never subject to Federal income taxes.
Life Insurance may be the most important purchase you'll ever make
No one really wants to think about life insurance. But if someone depends on you financially, it's a topic you should not avoid. In the event of a tragedy, life insurance proceeds can:
- Pay for funeral costs
- Help pay bills and meet ongoing living expenses
- Pay off outstanding debt, including credit cards and mortgage
- Continue a family business
- Finance future needs for your children's education
- Protect a spouse's retirement plans
We have some easy steps for you to walk through to see if life insurance is right for you. It's important to find out much and what kind to buy considering your life events -- such as having children or buying a home.
Testimonials
Elise is great so don’t let her little strip mall office deter you. All that means is low overhead. She was extremely helpful to us and we are glad we were able to work with her to be educated on all the insurance options and why one may be better or worse for our particular situation. She actually deals with facts not hype…and she will prove it.
Jim D
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Helping you and your family
When it comes to protecting your family and lifestyle with insurance, Elise is your go-to resource. More than 20 years of experience in the area of Life Insurance, Disability Income Protection, Long-term Care Insurance and Medicare planning.
As a broker, Elise excels at searching the marketplace for the plans and products that best fit the needs of her clients; the business owner, individuals and their family. She is an excellent listener who cares deeply about meeting clients’ individual goals and objectives.
So don't worry. We walk you through it simply and easily. It's what we do.
Schedule a free consultation today.
Get In Touch
Call to schedule a free review of your life insurance program and how to best plan for the unexpected.
Elise Haar
Agent | CA License #0C24556
809 West San Marcos Blvd.
San Marcos, CA 92078
760.727-9000