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Life Insurance

Term and Permanent Life Insurance


Most events that require planning are filled with joy and excitement. The purchase of a new home, celebrating a marriage, the birth of a baby, and savings for your children’s college education are all occasions that require forethought. But what about planning for events that could merely lessen the hardship of a devastating situation?

Life insurance is vital when an unexpected tragedy occurs. In addition to the sorrow in dealing with a loved one’s death, family members are often burdened with funeral costs, medical bills, and other debts. It’s important to ask yourself the question, “If I were to die today, what resources would my family need?” Unfortunately, many neglect to purchase this type of insurance, leaving their families financially exposed.

This type of insurance is merely a contract with an insurance company in which the buyer makes payments and the insurance company agrees to pay a sum of money to the client’s beneficiaries in the event of death. It can be beneficial for both the primary income earner in a family as well as a stay-at-home mother or father.

When researching insurance, it’s important to decide what type is appropriate for your family. Term and whole life are the two most common types customers select.

Term insurance is protection for a designated period of time such as 10 or 20 years. During the agreed upon period, premiums usually do not change. These premiums are determined after the health and well being of the client is determined. In the event of death, a predetermined contracted amount is paid to beneficiaries.

As it’s name indicates, whole life provides coverage for the entirety of the buyer’s life. Because of the longer coverage period, whole insurance is more expensive than term insurance. And unlike term insurance, whole life has a cash value.

If providing for your family is a priority now, it should continue to be a priority should death occur. Regardless of the type of insurance that fits your family’s needs, life insurance is imperative to ensure peace of mind for you and your loved ones in the wake of tragedy.

Life insurance is often used as a way to make sure the family is taken care of after a person dies Survivorship Life insurance, or “second-to-die” insurance, can also be an important part of your estate plan to fund future estate taxes and probate expenses, especially if your estate is not easily liquidated When used properly, life insurance is an effective way to make sure your beneficiaries receive your estate intact.

What is it?

Life insurance is uniquely liquid, as it is an asset that can pay the agreed upon death benefit in cash when
it is needed, whenever death occurs. It is very useful for anyone with an estate tax liability, such as

• You own real property, such as an expensive home, rental properties, commercial property, or
• You are a farmer/rancher with a lot of your estate value in farm equipment and land, or
• You are a business owner and the value of your business is a significant portion of your estate

What is Survivorship Life insurance?

Survivorship Life insurance, also called “second-to-die” insurance, is specifically designed to provide liquidity for estate planning. It provides coverage for two individuals, typically a husband and wife, at a lower cost than two individual life policies However, the death benefit is paid only after the death of the second insured to the policy’s beneficiaries, with the proceeds generally used to pay estate taxes and other settlement costs that have been deferred until the second insured’s death.

Estate Tax Funding Alternatives.

With estate taxes due within nine months of the date of death, how will the executor find the means to pay the sum1 Here are some options.


Deplete cash or cash equivalent assets – assets that are readily convertible into cash without loss of principal or incurring income tax. For every dollar of settlement expense, a dollar of estate property is spent.