Life insurance can help provide the funds your family or business may need to meet immediate and ongoing expenses in the event of an untimely death, such as: final expenses, estate taxes, survivor’s daily living expenses, mortgages and other loan obligations, and tuition payments. By purchasing a life insurance policy, you can help ensure that those you care about will not be burdened by debt that could necessitate the sale of assets to pay bills or taxes. Your beneficiaries will not have to pay federal income tax on the benefits they receive, and since the payment process bypasses probate, it can save time and money. In addition to serving as a tool for financial protection, life insurance can be used for accumulation strategies to meet other goals, including education, retirement, tax minimization, wealth transfer and legacy planning.
When should I consider purchasing Life Insurance?
Protecting those you care about from financial hardship in the event of your death can be a prime motivator in the decision to purchase life insurance. You may wish to consider life insurance protection if:
Replacement of income and your personal situation and preferences will influence the decisions you make. Many different types of insurance are available, each designed to meet different objectives. The type that you purchase may depend on how much coverage you require.
How Much Insurance Do I Need?
While the amount of life insurance you may need will ultimately depend on your unique situation, some experts recommend a benefit equal to several times your annual income1. You may need more if you have a young family, large salary and a sizeable mortgage, or less if your children are grown or you have other assets that can be utilized. Life insurance costs vary based on your age, health status and the type of policy you wish to buy, among other factors.
What are the different types of Life Insurance?
There are two main types of life insurance: term and permanent. Both categories include different products designed to fulfill various needs.
Types of Permanent Insurance:
1Indiana Department of Insurance
2Surrender charges may apply on withdrawals of cash value. Should a withdrawal exceed the policy basis, ordinary income taxes may apply to any amount above and beyond the policy basis. Interest charges may apply on loans. Loans may affect cash values and death benefits.
Guarantees are subject to the claims-paying ability of the issuing insurance company.
Lincoln Investment and its affiliates do not provide legal, tax or estate planning information or advice.
Before investing in a variable universal life or variable life insurance policy, consider the policy and its underlying funds’ investment objectives, risks, charges and expenses carefully. Both the policy prospectus and the underlying funds' prospectuses, which contain this and other information, can be obtained by contacting Lincoln Investment. Please read the prospectus carefully before you invest or send money.
We have answers. Our Financial Professionals have the skills, knowledge and experience to guide you in crafting and implementing an effective plan designed to reflect your unique investment and retirement goals – or simply answer any questions you may have. Let one of our Financial Professionals walk you through the process every step of the way and review which options are best suited for you to help you feel more secure and worry a little less.