Life insurance provides payment of a death benefit at the death of the insured(s). However, life insurance has many unique characteristics that make it an appropriate solution for a variety of uses in addition to the death benefit protection. Some of these characteristics include:
- Policy cash values accumulate on a tax-deferred basis.
- Policy death benefits are received income tax-free.
- Policy cash values may be accessed on a tax advantaged basis.
Although often mistakenly viewed as a price only decision, the long term nature of life insurance necessitates careful consideration in the selection of the insurance carrier, the product type and the agent or agency to represent you and interact with your heirs. Some of the questions to consider in purchase include:
- Does the agent have sufficient experience to meet your needs adequately?
- Does the agent have any influence with the carrier selected?
- Is the insurance carrier financially sound?
- Will the service levels provided by the carrier satisfy your requirements?
- Will the product be able to adapt to changes in your personal and financial goals or situation?