Life Insurance

Less than 52% of Americans have a life insurance policy. Statically, 40% of Americans cannot cover three months of living expenses after the breadwinner dies. 

Here are some reasons why you should not focus on dying but the benefits of having life insurance.

You can use the policy as debt protection or college funding. You can use the policy to fund legacy church or non-profit charitable giving. You can use the policy for estate planning to cover taxes for your living beneficiaries.

When a life policy is paid out to the beneficiary it is not taxed. Additionally, you can also have a final expense policy that will cover those costs, allowing for the full-face value to be paid. 

Life insurance is a great hedge against running out of money when you retire.

Here are the facts you need to know.

There are three types of life insurance policies. Whole Life, Term life and Final Expense.

Term Life means exactly that. It is a ten-to-thirty-year term. At the end of the term, the policy is gone, unless you have a term conversion or return of premium as part of the policy.

Universal Life is more flexible than Whole Life and allows you to raise or lower your premiums within certain limits, and it can be cheaper than whole life coverage. However, if your investments underperform, or you underpay for too long, it could affect your death benefit or cause the policy to lapse.

Whole Life is permanent insurance with a guaranteed cash value. Your premiums are fixed and do not change. Some policies are dividend paying and some are non-participating. You can borrow from the cash value at a low interstate rate.

Final Expense is a Whole Life policy used for burial costs. Policies under $50,000 are issued up to age of eighty years of age with no medical underwriting.