Life insurance is the foundation of
a sound financial plan. It provides financial security
for your family by protecting your financial resources,
such as your present and future income, against the
uncertainties of life.
More specifically, life insurance provides cash to
your family after your death. This cash (death benefit)
replaces the income you would have provided and can
meet many important financial needs: It can help pay
the mortgage, run the household, send your kids to college,
and ensure that your dependents are not burdened with
debt. The proceeds from a life insurance policy could
mean that your family won’t have to sell assets
to pay outstanding bills or taxes. What’s more,
there is no federal income tax on life insurance benefits.
Choosing a life insurance product is an important decision,
but it can be complicated. As with any major purchase,
it is important that you understand your family’s
needs and the options open to you. |
