Chris Locher,CFP |
'Committed to your personal financial freedom and the financial security of your family.' With CTL Financial you receive an independent solution that integrates tax preparation/planning, investment management, and lifestyle and family protection to simplify your financial life. Imagine what you could do with financial freedom? |
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September is Life Insurance awareness month |
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Now is the time to update, review and learn more about the protection you have for your family and loved ones. |
What, when and why term life insurance?
Usually the most cost effective insurance |
Think of term insurance as renting life insurance for a specific period of time. You can choose 10, 20, or 30 years of life insurance coverage and you pay an annual premium. As long as you pay the premium you maintain your life insurance until the end of the chosen term. You want 'guaranteed term insurance', which guarantees your premium will not increase during the term of your insurance. Term insurance is often cheaper than permanent insurance and therefore may be your best option for the biggest piece of your life insurance coverage. Consider term insurance as income replacement, if you have a spouse, children or parent dependent on your income, term insurance is an option. Young families, anyone with a mortgage and/or a major debt or future obligation (think college!!) should also consider term life insurance. Learn more about term life insurance. |
How much life insurance do you need to protect your loved ones?
Some things to consider about your life insurance coverage |
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Want flexibility with premium payments and death benefits?
What is Universal life Insurance? Universal life insurance gives you the flexibility on the frequency and amount of your premium payments and you have the ability to increase or decrease the death benefit. There is no specific term, as long as you pay the premiums or your cash value can cover the current premium, you'll have life insurance. Cash value builds up inside the policy and depends on the amount of your premium payments and the performance of the insurance company's portfolio; you have no control over how the cash value is invested. However, most universal life policies have a minimum guaranteed rate of return. You also have the ability to borrow against your accumulated cash value. Universal life insurance can be a nice complement to a term policy however it is usually more expensive than term life insurance and you should discuss its advantages with your Certified Financial Planner before purchasing a policy. See if universal life insurance may be right for you. |
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Variable life insurance, yet another option
Control your investments, premiums are fixed |
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Variable life insurance gives you control over your investments by allowing you to choose from an investment lineup provided by the insurance company. There is no specific term of the policy and your premium payments are fixed. Your cash value and death benefit can fluctuate depending on your underlying investment performance however most policies will have a guaranteed minimum death benefit. Variable life insurance can be a good tool for specific circumstances such as estate liquidity and may not be the best choice for younger individuals. Learn the basics about variable life insurance. |
