Life Insurance Planning Life doesn't always go the way we want it to go. Despite our best efforts, accidents happen and there's nothing anyone can do about them except insure against them. Although we can't predict or protect from everything, I can help you to come close. I offer a wide range of insurance options and can walk you through the different types to help you choose the one that best fits your needs. Life Insurance 101 Why Life Insurance is Important Life insurance is a product that enables you to manage the risk of financial loss in the event of your death for your loved ones or business partners. Proceeds can be used to replace lost income, transfer wealth, eliminate debt, complete a college savings plan, or address other financial goals. For small businesses, purchasing a life insurance policy on a key individual (such as an owner or top employee) can help prevent financial distress if that individual were to die. Types of Life Insurance There are two general categories of life insurance: Term and Permanent. Term insurance is purchased for a specific period of time, for example 10 or 20 years. Permanent insurance covers an individual until his or her death regardless of age. Topics Term Life Permanent Life Protection period Defined for a specific period (usually years) Usually until death Cost differences Typically less expensive than permanent Generally more expensive than term Investment options No Varies May help build equity No Yes Life Insurance Strategies Purchasing life insurance may be an important strategic step in protecting a portfolio. Life insurance focuses on helping to protect and transfer the wealth you have accumulated in other investment activities. Life Event Strategies The following life events can be a good time to make an initial purchase or review your current coverage. Event Action Home purchase or home improvement Cover mortgage and/or home equity loan Birth/adoption of a child Cover increased family daily income needs and new debts New job Replace any group coverage gaps and increase your coverage amount for your new salary Marriage Review needs for income, estate, and home expenses College education planning Cover future college expenses Estate planning Cover funeral and estate expenses Semi-annual financial planning Review current coverage Protection and Wealth Transfer Strategies Replacing lost income - You are your family's greatest asset. A sudden loss of income could place unnecessary hardship on your family. Consider the lifetime earnings potential of some hypothetical households. When buying life insurance to replace lost income, there's no substitute for a thorough analysis of your personal situation. Real estate protection - Ensure that you have enough insurance to cover any mortgages or home equity loans. Typically enough insurance is purchased to pay off the principal amount of the loans, not future interest. Protect savings and investments - Help preserve your savings and investments and help your family keep up with current and future living expenses. College planning - As college costs continue to rise, the need for a plan becomes more and more important. Learn about how Protecting Your College Plan with Term Life Insurance can help cover college tuition in the event of an untimely death. Taxes - Proceeds from your life insurance policy are not generally subject to income tax and the full-face amount of your policy is paid directly to your beneficiaries. Estate taxes may apply to insurance proceeds. Consult a financial or tax advisor for your specific financial situation.