If you’re new to buying life insurance, it’s important to learn how it works and what coverage works best for you. To start, a life insurance policy is a contract with an insurance company to exchange premium payments for death benefit protection.
Life insurance is chosen based on the needs and long-term goals of the owner. There are many different types of life insurance. Term life insurance provides protection for a previously selected period of time such as 10 or 15 years. In exchange for your premium payments, the insurance carrier will pay death benefit to your beneficiaries if you pass during the term of the contract. Permanent life Insurance, on the other hand, provides life insurance coverage that does not expire. With options in between, it’s good to know that there is a plan that works for your lifestyle. It's important to note that death benefits from all types of life insurance are generally income tax-free.
You might understand the primary benefits of purchasing life insurance. For example, if an unexpected death occurs, the family would get the reassurance of knowing they will have the financial and proper resources to carry on.
In general, most types of life insurance work to ensure that your family will have their finances stable in your absence. It is important to note that the more coverage your life insurance has, the more benefits your family will have when needed. With a smaller amount of coverage, your plan could only cover funeral expenses. With a larger amount, your family can:
Aside from your coverage amount, there are legal implications that can benefit you as well. This includes the tax advantages of life insurance as death benefit payouts are assumed tax-free. Some policies have features that can help transfer money to future family heirs with fewer tax liabilities. Life insurance can often be bundled with other types of protection, like disability insurance, to replace a portion of your salary if you’re unable to work in an unprecedented circumstance.
The most cost-effective way to buy life insurance would be to do it when you are at a healthier time in your life and young. Life insurance carriers generally give younger and healthier individuals lower rates. These low rates are due to individuals having longer life expectancies, being less likely to have been previously diagnosed with a serious disease and being more likely to pay premiums over a longer number of years.
StarFort Financial is a leading life insurance advisory firm representing high net worth clients across the United States. We tailor insurance solutions that fortify wealth within estates and businesses. We pride ourselves on our unwavering commitment to being loyal financial advocates for our clients. Our team implements and manages tailored life insurance solutions for individuals and businesses. Our customized insurance solutions are designed to protect your assets, mitigate risk, and produce tax-efficient cash accumulation. Talk to us today to set up your plan!
StarFort Financial is a leading life insurance advisory firm representing high net worth clients across the United States. We tailor insurance solutions that fortify wealth within estates and businesses. We pride ourselves on our unwavering commitment to being loyal financial advocates for our clients.
333 N. Michigan Ave, Suite 1320
Chicago, IL 60601