Life Insurance

Why Purchase Life Insurance?

If you have a family who relies on your income, then it is imperative to have life insurance protection.  But even a single person with no dependents could benefit from the right kind of Life Insurance.  Some life insurance policies can be used as a source of cash in the event that you need to access the funds during your lifetime.   Many of these policies build cash value that can be borrowed from or withdrawn at the policyowner’s request. Thus, Life Insurance can provide benefits to your survivors, but can also provide benefits to you while you’re still alive.

Protect the ones you love.

If you die while the Life Insurance policy is in effect, your beneficiaries can use funds from a life insurance policy for funeral and burial expenses, probate, estate taxes, day care, and any number of everyday expenses. Funds can also be used to pay for your children’s education or pay off debts or a mortgage. Life insurance funds can also be added to your spouse’s retirement savings.

Of course, if you have no dependents, or your dependents won’t need the proceeds from a life insurance policy, you may wish to name a favorite charity as the beneficiary of your policy.

Permanent life insurance can also be used as a source of cash in the event that you need to access the funds during your lifetime. Many types of life insurance build cash value that can be borrowed from or withdrawn at the policy owner’s request. Of course, withdrawals or loans that are not repaid will reduce the policy’s cash value and death benefit.

70% of all Americans who live to age 65, will require some form of Long Term Care in their lifetime. The average cost of a Long Term Care facility is over $6,000 per month.

Some Life Insurance policies can be purchased with “Riders”, which provide additional coverages.  One popular example is the Long Term Care rider.  With this rider, the policy owner can access up to 100% of the death benefit to pay expenses associated with a Long Term Care event. 

There are many expenses and tax considerations associated with life insurance. The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance purchased. If you are considering the purchase of life insurance, consult a professional to explore your options.

At Einstein Advisors, we’re really smart about this stuff. Contact us today to schedule a free consultation with one of our professional advisors.