Life Insurance
Understanding Your Options and Managing Your Risk with Life Insurance
Insurance is not a one size fits all proposition. There are many different kinds of insurance and the protection that you need today may change in the future depending upon your short and long term goals.
Permanent Coverage
Upon the passing there will almost certainly be taxes, funeral costs, and other expenses that will arise which must be dealt with. Many people may also desire to leave something to their heirs. For self-employed business owners who may have accumulated a substantial investment portfolio or estate, Permanent Life Insurance can be of great assistance in the transfer of ownership in the business by reducing taxes or as an aid with valuable tax sheltered and tax effective estate transfer mechanisms.
For permanent requirements there are insurance products that range from offering primarily protection with the lowest possible annual cost such as permanent term insurance, such as term to age 100 or Limited Pay types or those plans which allow for substantial tax sheltered growth and asset allocation potential such as Whole Life and Universal Life Insurance which offer equity and growth as well as protection.
Temporary Life Insurance
Temporary life insurance provides a method of protection against certain financial risks that may be unlikely to occur but which may be financially disastrous if they do occur. The loss of an income earner, if it arises early in life can result in significant financial difficulties for those family members that remain. Without the earners income, how will the mortgage on the family home be paid? Will the family have sufficient income to maintain their current standard of living and how will the children’s education be provided for?
Term Insurance is temporary insurance for a fixed term and this type of insurance has generally the lowest premium cost because you are paying only for the cost of insurance as there is no savings component or cash value. Although most term insurance increases every 10 or 20 years, the initial premiums are usually lower than the premiums for a similar permanent insurance policy.
The original content can be found here: A Life Changing Story
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Thanks, it is quite informative
Thanks to the excellent guide
Hi Sam,
I appreciate your feedback! Thank you for taking the time to connect with me. Have a look through my other videos at http://www.youtube.com/engracefinancial.com and let me know what else is useful to you. I’m always looking for ideas of what to talk about next. Cheers!
Thanks, it’s very informative
Awesome! Thank you for letting me know. I’m open to ideas of what to talk about on my videos so keep connecting with me.
Thanks to the great guide
Hi Colin,
I appreciate your feedback! Thank you for taking the time to connect with me. Have a look through my other videos at http://www.youtube.com/engracefinancial.com and let me know what else was useful to you. I’m always looking for ideas of what to talk about next. Cheers!
This is really useful, thanks.
Hi Christina,
Thank you for your feedback. More videos are coming down the pipe on this subject and other. Make sure to check out my channel at http://www.youtube.com/engracefinancial.com and subscribe:-) Cheers!
Thanks, it’s quite informative
Hi Hwa,
Appreciate the feedback!!! Have you also seen the video on Term insurance? Let me know which is the right one for you and why:-)
Check out my other videos on http://www.Youtube.com/Engracefinancial.com