22/01/2021
๐๐๐ฎ ๐๐๐ฉ ๐ก๐๐๐ ๐๐ฃ๐จ๐ช๐ง๐๐ฃ๐๐?
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A life insurance policy is a contract with an insurance firm. In exchange for premium payments, the insurance firm provides a lump-sum payment, known as a death benefit, to beneficiaries upon the insured's death.
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Typically, life insurance is chosen based on the needs and goals of the owner. There are many varieties of life insurance. Some of the more common types are discussed below.
โผ๏ธ๐ผ๐๐ซ๐๐ฃ๐ฉ๐๐๐๐จ ๐ค๐ ๐๐๐๐ ๐๐ฃ๐จ๐ช๐ง๐๐ฃ๐๐ โผ๏ธ
Life insurance offers several advantages not available from any other financial instrument.
โ๏ธProtection: There is a huge advantage to having a life insurance policy in force that will pay a death benefit will go to your life insurance beneficiary, which they can use however they wish.
โ๏ธCash Value: The advantage of cash value life insurance is that you can use the cash to fund many purchases down the road, such as paying off debt, buying a home, investing in real estate, of simply living off the dividends as a form of passive income.
โ๏ธTax Benefits: Not only is a life insurance death benefit not taxable, the cash value accumulation and any dividends accumulate tax deferred. And if you use policy loans you may never have to pay taxes on your cash value growth.
โ๏ธRemoves Worries: You see, there really is no replacement for the satisfaction you get once you have life insurance in force and you know your familyโs financial needs will be met if you die.
โผ๏ธ ๐ฟ๐๐๐๐๐ง๐๐ฃ๐ฉ ๐ฉ๐ฎ๐ฅ๐๐จ ๐ค๐ ๐ก๐๐๐ ๐๐ฃ๐จ๐ช๐ง๐๐ฃ๐๐โผ๏ธ
You have many different options for buying life insurance. Iโll help to break it down for you.
โ๏ธTerm life insuranceโ๏ธ
Term life insurance is designed to provide financial protection for a specific period of time, such as 10 or 20 years. With traditional term insurance, the premium payment amount stays the same for the coverage period you select. After that period, policies may offer continued coverage, usually at a substantially higher premium payment rate. Term life insurance is generally less expensive than permanent life insurance. Term life insurance proceeds can be used to replace lost potential income during working years. This can provide a safety net for your beneficiaries and can also help ensure the family's financial goals will still be metโgoals like paying off a mortgage, keeping a business running, and paying for college. It's important to note that, although term life can be used to replace lost potential income, life insurance benefits are paid at one time in a lump sum, not in regular payments like paychecks.
โ๏ธUniversal life insuranceโ๏ธ
Universal life insurance is a type of permanent life insurance designed to provide lifetime coverage. Unlike whole life insurance, universal life insurance policies are flexible and may allow you to raise or lower your premium payment or coverage amounts throughout your lifetime. Additionally, due to its lifetime coverage, universal life typically has higher premium payments than term. Universal life insurance is most often used as part of a flexible estate planning strategy to help preserve wealth to be transferred to beneficiaries. Another common use is long term income replacement, where the need extends beyond working years. Some universal life insurance product designs focus on providing both death benefit coverage and building cash value while others focus on providing guaranteed death benefit coverage.
โ๏ธWhole life insuranceโ๏ธ
Whole life insurance is a type of permanent life insurance designed to provide lifetime coverage. Because of the lifetime coverage period, whole life usually has higher premium payments than term life. Policy premium payments are typically fixed, and, unlike term, whole life has a cash value, which functions as a savings component and may accumulate tax-deferred over time. Whole life can be used as an estate planning tool to help preserve the wealth you plan to transfer to your beneficiaries.
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Best way to start is NOW!
How? Here to help.
For more information, kindly message Caryll Anjelhi Pascua ๐โค๏ธ
Licensed Financial Advisor
Ma. Elaine Maloles
C/O
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