Term vs. Permanent Life Insurance

Would your family be able to maintain their standard of living if something changed? If you are unsure of
the answer to any of these questions, it may be time to start thinking ahead.
It’s important to consider that retirement savings in traditional methods such as pensions and 401k
plans rarely provide death benefits and continued means of saving upon death during the accumulation
phase of life. With the proper planning, you can set up a life insurance policy that not only provides a
death benefit but provides cash flow flexibility during your lifetime.

Planning for future financial goals can be a challenge. We usually don’t have just one financial goal. We
may begin by providing financial protection for the mortgage on our first home. If we start a family, we
add another variable when we try to anticipate future educational costs. Or, perhaps we open a small
business and plan for growth through additional partners with the desire to protect against their loss.
Over time, we may add and subtract elements of our life story and our financial goals may need to
evolve and change. Although we may initially choose a simple financial goal, we often find our financial
needs growing – from protecting existing assets against unforeseen loss, to accumulating a cash
reserve for future needs.

As our financial plans mature, we may plan to use anticipated cash reserves to enjoy a more secure
retirement. We may even seek to leave a financial heritage to future generations or protect our existing
financial heritage from loss.

So many diverse goals, that, when linked together, form a unique life story

There are many different types of life insurance coverage to choose from, and each meets a person or family’s needs in different ways. The type and amount of insurance that you buy will have an impact on how protected your family or dependents are after your death.

No single plan will work for everyone. There are different solutions to help protect against possible financial loss and ensure we meet our anticipated financial needs. Some of those solutions may be short-term, and some solutions may continue for the rest of our lives. A permanent life insurance policy can be a cornerstone in a financial plan that connects you to both protection against future loss and accumulation for future needs.

When considering life insurance as one element of our financial plans, we should keep in mind the unique tax advantage of life insurance, which generally pays a tax-free death benefit directly to the named beneficiary. We should then consider how the available features and benefits of a particular policy complements our own unique life goals.

Term Life Insurance

This is considered to be the simplest type of life insurance. You can buy more coverage for less money, but the coverage only lasts for a set time period. After this period ends, you can renew the policy but it usually comes with a higher price that will increase every year thereafter. You can customize these to fit your financial needs.

Permanent Life Insurance

Just like it sounds it is a permanent policy. It’s meant to stay around until the policy matures at age 120 years old. So what kinds of permanent life insurance are out there?

Whole Life

Whether your goals include providing security for yourself and your family members, achieving a financially secure retirement, educating children or grandchildren, providing coverage for final expenses, or securing the continuity of your business, life insurance is an important part of any financial plan. Even the best laid plans sometimes go off track. An untimely death, a life threatening illness, a financial reversal or loss of a job can upset a financial plan and keep it off track indefinitely. Because no one can anticipate such events, having extra layers of protection is important. Using Signature Whole Life Insurance for both protection and as a financial safety net can provide a permanent layer of protection against unplanned events.

Whole life insurance is designed to provide permanent coverage throughout your life. The coverage and the financial benefits provided will be there when it is most needed, no matter when that may be. With whole life insurance, you have the stability of a premium that is fixed at issue and will remain the same for the life of the policy. This can help you establish your financial program at a level that can be maintained throughout your lifetime.

Universal and Index Universal Life Insurance

This insurance contains an investment component. It can be commonly referred to as an Index Universal Life policy. Beneficiaries have a choice of payouts.

A permanent life insurance policy that provides a death benefit with the potential to build cash value over time. Insurance for those who:

• Desire flexibility from their insurance policies
• Seek the potential for greater interest earnings
• Need economic certainty in life and in death
• Want to protect their funds from a volatile market

Your money is indirectly tied to the stock market, so you are shielded from downside risks. Here’s how our IUL is protected from an unfavorable market:

• Credited interest will never drop below 0%
• Your money is protected from a volatile market
by not being invested directly in stocks
or bonds.

Whatever your goals, Better Future Finances is here to listen and help you find the right product to protect your future. Book a quote today by contacting us!


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