Life insurance is a great way to protect your assets for your future benefit as well as for your family. Life insurance can also help aid in the transfer of your wealth for estate planning purposes.
- Insurance benefits are not taxed
- Provides income to your beneficiaries when you die
- Can be used to pay estate taxes
- From $50 per month to a single lump-sum payment (depends on amount of insurance purchased and age and health of insurer)
- Choose between Term and Permanent Insurance
Term Life Insurance
You purchase protection (the "death benefit") for a fixed dollar amount for which you pay a fixed cost every month. You are protected for the "term" of your policy, which could be up to 20 years. If you die during that time period, the death benefit is paid to your beneficiaries tax-free. Term insurance doesn't allow you to build up cash-value, so it's usually the least expensive type of insurance you can buy.
Permanent Life Insurance
Just like term insurance, when you buy permanent insurance, you choose the amount of protection to buy. Unlike term, however, permanent insurance allows you to build up cash value that earns interest tax-deferred. There are many types of permanent insurance, but, unlike term insurance, all of them guarantee that you stay protected as long as you pay your insurance premiums. Some types of permanent insurance have a fixed cost for your lifetime, while others have premiums that may change. The following are some of the more popular types of permanent insurance:
- Whole Life
- Universal Life
- Variable Life
- Variable Universal Life
Guarantees on Life Insurance policies are based upon the claims paying ability of the Issuing Company.
Health Care Planning for Long-Term Care
Depending on your age, health condition, family situation, and financial assets, you may want to consider Long-Term Care insurance. This insurance covers many of the expenses associated with long-term care and eases the burden on your family, protects your assets, or preserves your assets for your heirs.
- Provides coverage should you become sick and need in-home or nursing home care
- Protects your assets from the high cost of long-term care
- Payable in monthly installments
- From $100 per month to a single lump-sum payment (depends on amount of insurance purchased and age and health of insurer)
The following information will help our Financial Consultants develop an insurance plan designed to meet your specific needs:
- Provide information on your current life insurance and long-term insurance plans
- Identify the gap between desired income for your family and current income that would be provided from social security, retirement plans, and other assets should you die
- Identify the value of your estate and the means of transferring your estate to your beneficiaries; i.e., wills or trust
- Identify income coverage should you become incapacitated
As with all tax-related decisions, consult your tax advisor, and for legal decisions, consult your attorney.
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† Securities and insurance products are offered through Cetera Investment Services LLC (doing insurance business in CA as CFG STC Insurance Agency LLC), member FINRA/SIPC. Advisory services are offered through Cetera Investment Advisers LLC. Neither firm is affiliated with the financial institution where investments are offered. Advisory services are only offered by Investment Adviser Representatives. Registered address and phone number: American Savings Investment Services, 300 North Beretania Street Honolulu, HI 96817. (808) 735-1717.
This site is published for residents of the United States only. Registered Representatives of Cetera Investment Services LLC may only conduct business with residents of the states and/or jurisdictions in which they are properly registered. Not all of the products and services referenced on this site may be available in every state and through every advisor listed. For additional information please contact the advisor(s) listed on the site, visit the Cetera Investment Services LLC site at www.ceterainvestmentservices.com.