We don’t have a crystal ball and we can’t tell exactly what the future hold. BUT we can plan ahead. In the event that something happens to you your family, the people you care about, will be taken care of financially. Life insurance provides a TAX FREE benefit that can offer them the opportunity to stay continue their current life style, help with higher education & even make up for income that will be lost.
There are several different types of life insurance.
Term Life insurance covers you for a time period. We like to think of it as “renting” insurance. There is a premium that must be paid. However, in Term Life Insurance there is no cash value accumulation. When the period of time is over the death benefit goes away.
Permanent Life Insurance or Whole Life will offer predictable payments and lifetime coverage. These types of policies do build up cash value and allow you to borrow against the policy at a fixed rate.
Fixed Index Universal (FIUL) also has a death benefit and accumulates cash value. The cash value grows based on the positive changes in external market indexes or a fixed interest allocation. The cash value will not decrease due to market volatility.