LIFE INSURANCE
The purpose of life insurance varies among people. Some want to leave money to their loved ones while others want to make sure debts or funeral expenses are paid. Most people want both to happen. Since choosing a life insurance plan and company can be a big decision to make, we have a personalized approach to ensure that your needs are taken care of. There are many ways that life insurance can help you meet your goals. For example, if you are interested in cash accumulation, wealth transfer, estate tax liquidity, and estate planning, we can research what companies and plans would be best for you to work with. Our goal is to give you peace of mind that everything will be taken care of upon your passing. Let FSAB assist you with your life insurance needs.
Determine how much life insurance you need
Once you've decided that you need life insurance, you'll want to determine how much insurance you need. That, of course, is a very personal decision.
A general rule of thumb is that you should have at least six times your annual income in life insurance. But in determining what is best for you, you'll also want to consider other obligations you may have and whether or not you want to have them completely or partially paid for upon your death. Such expenses include your mortgage, outstanding debts and future college expenses for your children.
Life insurance is a crucial part of many estate plans. It can:
• Provide much-needed income to your survivors that is immediately accessible
• Allow you to replace wealth lost due to estate shrinkage (i.e., the estate taxes and expenses associated with your death)
• Allow you to give money to your favorite charity
Determine what kind of life insurance you need
The main types of life insurance on the market today fall into two categories: term and permanent.
Simply, term life insurance provides death-benefit protection for a specified period of time (for instance, you might buy a policy that has to be renewed in two years). Generally speaking, if you're looking for coverage for a short period of time, term life makes more sense.
If you are looking to have a policy for the rest of your life, or have investment goals, permanent insurance is a better fit.
Protect your survivors financially with life insurance
You can buy life insurance to help ensure that your survivors don't suffer financially when you die. You can protect their long-term financial needs by planning so that they will have enough money to pay their bills and live comfortably for years to come. You can also use life insurance to protect your survivors’ short-term financial needs. Because life insurance proceeds normally don't pass through probate, your loved ones will have enough money to pay their bills right away--they won't have to wait until your estate is settled.
Replace wealth that is lost due to estate shrinkage with life insurance
Life insurance may be the number one method of replacing wealth that is lost due to estate shrinkage. To ensure that the estate (money and assets) you leave to your survivors isn't less than you intended, you can buy enough life insurance to cover the expenses associated with your death, such as taxes, fees, and other debts your survivors will have to pay.
Give to charity with life insurance
If you want to leave money to charity when you die, consider using life insurance. Not only does life insurance allow you to make a substantial gift to charity at relatively little cost to you, but there are certain tax benefits as well. For instance, depending on how you structure your gift, you may be able to take an income tax deduction equal to your basis in the policy or its fair market value, or you may be able to deduct the premiums you pay for the policy. In addition, gifts to charity may reduce estate taxes owed when you die.
How FSAB Can Help You with Your Life Insurance Needs
Life insurance policies are now available from more than 2,000 life insurance companies in the U.S., as well as from financial institutions that are now getting into the marketplace. It's just as important to understand these companies as it is to understand their products.
FSAB can:
• Help guide you through the planning process
• Help you determine how much coverage you need
• Prepare an analysis tailored to your family's unique needs
• Find the right life insurance carrier that fits your needs