WHAT MATTERS MOST
When we create your financial plan and help you invest in your future, we always consider your insurance needs. Our financial planners perform an insurance analysis to make sure you, your family members, and your assets are protected. Insurance can fill the gap when the unexpected happens. For example, what happens to your family and your assets if you pass away unexpectedly, become disabled, or need long-term care?
Our comprehensive evaluation of your life, disability, and long-term care insurance products doesn’t leave anything out. We’ll even evaluate your employer-sponsored benefits before making recommendations for you. We work with major insurance carriers, such as Prudential and Lincoln, and our independent insurance agents will find the best policy that fits your needs.
We like to think of insurance as a layer of protection for you, your family, and your wealth. If the worst should happen, life insurance can provide for your dependents and cover any outstanding debts and bills. If you’re unable to work because an accident leaves you disabled, disability insurance ensures you can still provide for your family. Long-term care insurance also fills a gap when medical insurance doesn’t cover certain costs, such as in-home healthcare services or physical therapy.
Term life insurance and whole life insurance both include a death benefit. Term life insurance is limited to a specific term, such as 20 to 30 years. It serves to protect your dependents and pay your debts if you die during your working years. Whole life insurance also includes a cash value, which can be paid out or borrowed against. A whole life policy combines life insurance and investing.
When you pass away, the named beneficiaries in your life insurance can file a claim and request a lump-sum payout or receive payments in installments. If the named beneficiary in the life insurance policy is still alive, they receive the life insurance proceeds without going through the probate process. If there are no named beneficiaries or the beneficiaries have passed away, the insurance policy becomes part of the estate of the deceased.
Life insurance can be used for many things. Most often, our clients purchase life insurance to provide for their family members. You may also need it to pay off debts, pay for funeral costs, and cover the living expenses of your beneficiaries. Life insurance can also build cash value.
Life insurance proceeds are usually not taxable. However, if you choose to receive the payout in installments, you may have to pay taxes on the interest accrued. If the policyholder is not the deceased, there may be taxes on the benefits. If your employer offers more than $50,000 in life insurance and pays a portion of the premiums, the death benefits may also be taxable.
With term life insurance, the premiums are established when you purchase the policy. With whole life insurance, premiums increase by a certain percentage every year. The older you are, the more you can expect to pay for life insurance.
If you have people who financially depend on you and you don’t have any significant assets to provide for them in case of your untimely death, having a life insurance policy is paramount. A term life policy is the bare minimum coverage in that case. You can also use a whole life policy to build cash value for the future.
You cannot receive any money from a term life policy. With a whole or universal life policy, you can cancel the policy and receive the cash value as a lump sum, withdraw money, borrow money from the policy, or use the cash value to pay the premiums. Withdrawing or borrowing money from your life insurance policy will reduce the death benefit.
At Kylén Financials, Inc., we’ll take care of all your insurance needs. We will perform a thorough insurance analysis to include in your financial plan. It’s our goal to ensure you protect yourself, your dependents, and your assets from potential disaster. Schedule your appointment today.