While there is no law that requires life insurance, it is something that many people should have in place. If you have a dream of someday having a nest egg for retirement, or to leave to others when you’ve passed, or if you have financial responsibilities to others, take a moment to learn about how life insurance can help you meet your financial goals.
Life insurance is something that is often misunderstood. Many people believe its sole purpose is to provide financial support to your family should you pass on earlier than expected. While that is one example of how life insurance can be used, there are many others as well. For example:
- Replacing the income of a breadwinner should they pass on
- To pay off debts such as a mortgage, vehicle loans, or credit card debit
- To create an estate that is passed on to your family or an organization
- To transfer wealth
- To build a savings with tax advantages
- To fund college
- To fund a buy/sell agreement
- To fund the replacement and training of a key employee
These are just a few of the reasons people and businesses buy life insurance.
Types of Life Insurance
Just as there are many reasons to buy life insurance, there are many types of life insurance as well.
- Term life insurance is purchased for a limited period, usually five years to 30 years. This is “pure insurance” that only includes a death benefit and doesn’t build any cash value.
- Whole life insurance allows you to build tax-deferred cash value that can be used for a family’s loss of income, mortgage costs, or educational needs, even before a death has occurred.
- Universal life insurance provides a death benefit throughout your lifetime and has a cash value component as well. It is somewhat like Whole Life but has more options such as variable payments among others.
Contact Vanyo for a Life Insurance Quote
What type and how much life insurance you need will depend on your family status, financial situation and more. Schedule a meeting with Vanyo Insurance Group today, they can help you find right life insurance policy for you and your family.