General
The cost of life insurance depends on several factors. Your age, health, lifestyle and the type of insurance policy you select can impact your premium. In general, the younger you are, the lower the cost of coverage.
If your policy is designed to build cash value over time, you may be able to borrow money to pay for unexpected needs.
To buy a policy on another person, there must be what's called insurable interest. The person you wish to insure must also provide their consent.
It's a good idea for both of you to have life insurance if you need two sources of income to continue your lifestyle. If one spouse doesn't work, the benefit can help a surviving spouse manage household expenses.
Life insurance can help replace your lost income when you're no longer around. It'll make it easier for your loved ones to pay for things like a mortgage, final expenses and educational needs.
You should review your life insurance needs yearly. Please call us to review your policy if you go through major life events, such as marriage, divorce or growing your family. You may be able to adjust your coverage over time. Keep in mind that insurance generally gets more expensive as you get older.
A beneficiary is a person or entity you choose to receive the life insurance money when you die. The beneficiary can also be a charity, trust or estate.
You should pick the longest term that fits your budget and your family's financial needs.
Since you already have a policy, you're well on your way to securing your family's financial future. Please review your policy yearly to make sure you have enough coverage. This is particularly important after you experience a major life event, such as marriage, divorce or growing your family.
Many people get group coverage through an employer. If you're active duty, you may have Servicemembers' Group Life Insurance, or SGLI. These policies won't cover you if you stop working, separate or retire from the military.
Generally no, but there may be exceptions. Money received from life insurance is tax-free when:
- You're receiving it as a beneficiary.
- You withdraw from the premiums paid on a cash value policy.
- You're receiving the surrender value of a policy you no longer want.
Remember, if interest is earned on money that's paid out to you, you'll have to pay tax.