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The Value of
Life Insurance
Assessing
Your Need
Types of Life
Insurance
The Value of Life InsuranceLife insurance is a crucial
step in planning for your future and the future of your loved ones.
It can fulfill promises made to your family if you are no longer
around by providing a death benefit to your beneficiaries in return
for premiums paid to the insurance company. Life insurance can also
provide benefits while you are living.
Advantages of the Death Benefit
- Provides income tax-free money to your named beneficiary(s)
that can be used to pay funeral expenses, debt, tuition, estate
taxes or virtually any financial need you leave behind.
- Can provide business security by enabling partners to buy out
the interests of a deceased partner and prevent a forced
liquidation.
Advantages of Living Benefits
- The cash value growth of a permanent life insurance policy is
tax-deferred1, which means you do not
pay taxes on the growth of the cash value unless the money is
withdrawn.
- Loans2 or withdrawals can be taken
against the cash value of a permanent life insurance policy to
help with expenses, such as college tuition or the down payment on
a home.
1Accumulated growth may be
taxable upon withdrawal. If the policy is a Modified Endowment
Contract (MEC), tax penalties may apply prior to age 59 ½. Consult a
tax advisor on your specific situation.
2Policy loans and withdrawals
reduce cash value and the death benefit and may be subject to other
charges outlined in the contract. Back to top
Assessing Your NeedThe amount of life insurance you
select should be dependent on your personal and financial needs. We
can assist you in determining an appropriate coverage amount and
help you decide on which type of life insurance is right for you.
Generally, you should consider life insurance if you have:
- A spouse
- Dependent children
- Aging parents or a physically-challenged relative who depends
on you for support
- Retirement savings that is not sufficient to ensure your
spouse's future financial well-being
- A sizable estate
- A business
Life Changes — So Should Your PolicyAs events happen in
your life, your life insurance coverage may need to change to adapt
to your current needs. Some life changes that may require you to
reevaluate your coverage include: marriage, divorce, a new baby,
purchase of a new home and retirement.
Back to top
Types of Life InsuranceThere are several different
types of life insurance products available. The most common include:
Term Life InsuranceTerm provides life insurance protection
for a specified period of time. If you do not currently have life
insurance, term can be a good place to start. It's generally less
expensive than permanent life insurance, and is available in varying
term periods with fixed premiums from a one- (annual renewable term)
to 20-year period (level term). Furthermore, term insurance is
sometimes convertible to permanent coverage, providing you with
flexibility as your needs change.
Whole Life InsuranceWhole life is a form of permanent life
insurance that remains in force during the insured person's
lifetime, provided premiums are paid as specified in the policy.
Whole life insurance can build cash value.
Universal Life InsuranceUniversal life is a form of
permanent life insurance characterized by its flexible premiums,
flexible face amounts and unbundled pricing structure. Universal
life can build cash value, which earns an interest rate that may
adjust periodically, but is usually guaranteed not to fall below a
certain percentage.
Back to top
Life Insurance Quote Request Form Quote and apply for Term
Life Insurance from SAFECO:
OR
Click
here to access our secure quote form and we will contact you.
We are licensed in the following
States/Provinces:
Georgia.
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