Life insurance isn’t for those who have died—it’s for those who are left behind. When shopping for life insurance, consider needs such as replacing income so your family can maintain its standard of living, as well as paying for your funeral and estate costs. A general rule is that you may want to seek coverage between five and seven times your gross annual income. As far as the various types of policies go, they can generally be placed into one of two categories: Term and Permanent.

Term Life Insurance generally provides coverage for a specified period of time and pays out a specified amount of coverage to your beneficiary only if you die within that time period. In a level premium term policy, you pay the same amount of premium from the first day of the policy until the term ends. Term life insurance is similar to renting an apartment. It is typically much more affordable in costs, but you do not own the plan. You are just renting it for a specific amount of time, therefore no equity is built.

Permanent Life Insurance, on the other hand, will stay permanently in effect for the rest of your life so long as premiums continue to be paid. Permanent Life Insurance can come in three ways: Universal Life, Whole Life, and Variable Life. Each one has distinct advantages and disadvantages and it is important to know where each option fits into your goals. Permanent Life Insurance is similar to owning a home. It is typically more expensive to own and manage than renting, but you can live there your entire life can possibly build up equity.

The Rich Man’s Roth
What if we told you that there is a legal way to remove part or all of your nest egg from the tax system entirely? You probably think it sounds too good to be true. After all, when it comes to making investments, we have all been taught to think that fees and taxes are just part of the deal. Whether you pay them now or later is pretty much the only flexibility there is. But there is a way to protect your assets from the erosive effect of taxes. And it all has to do with a life insurance policy. Contact our office to learn more about ‘The Rich Man’s Roth’ today.

So, which Life Insurance strategy is best for you? Contact our office today to set up your Life Insurance Review at absolutely no cost or obligation to determine which strategy is best for you.