Life insurance can be an important part of your personal safety net, especially if you have financial dependents. Newport Financial can work with you to find easy and affordable life insurance solutions—so you know your loved ones will be taken care of.
What is life insurance?
Simply put, life insurance is a way for you to provide financially for your loved ones after you die. It’s a contract in which the insurer promises to provide your beneficiaries with a certain amount of money in the event of your death. Whether or not you are eligible for life insurance will depend on factors such as your health and type of employment. If you do qualify, the amount of your premiums—that is, payments for the policy— are based on factors such as your age, gender, health and occupation. Certain types of Permanent Life Insurance policies can also build cash values on a tax-deferred basis that you can use during your lifetime, through loans and withdrawals. Are you planning to get married? Buy a house? Start a business? Send a child to college? These are wonderful (and smart) reasons to add a life insurance policy to your financial strategy.
Do I Need Life Insurance?
Of course the answer depends on your personal circumstances. But if you’re not sure, see the list of ifs below. If you relate to one or two, the answer is probably yes.
I may need life insurance…
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If I have a spouse
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If I have children who depend on me
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If I have an aging parent or disabled relative who depends on me
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If I have another loved one I wish to provide for
Are there other reasons to look into Life Insurance?
Absolutely. Certain permanent policies allow you to withdraw or borrow against accumulated cash value during your lifetime. Although this feature should be used with care, since it loans or withdrawals decrease your death benefit, the money can help with a few other needs in your life. For example…
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If I want to build a cash reserve that can help pay for big-ticket items such as a child’s college education
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If I have business or estate planning needs that life insurance can satisfy
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If my retirement plan and other savings aren’t enough to protect my family’s standard of living in the future
What types of life insurance are there?
There are two basic types of life insurance. The first is Term Life Insurance, which covers you for a period of time—or term—that you choose, after which coverage ends. The second is Permanent Life Insurance, which offers a few more variations, such as cash-value accumulation, and covers you for your lifetime. Types of Permanent Life Insurance include, Whole Life Insurance, Universal Life Insurance and Variable Universal Life Insurance.
Please note:
Life insurance is subject to charges and expenses not associated with other financial products. Its primary purpose is to address a death benefit need. It should not be considered as a retirment funding option unless such a death benefit need exists. Distributions may be limited in order to keep the death benefit in tact. Like most insurance policies, our policies contain limitations, restrictions, and reductions of benefits in order to keep them in force.
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