Leveraging Life Insurance

​It’s the law in Louisiana to have insurance on your vehicle.  In some geographic areas, it’s a must in Louisiana to have flood insurance on your home.  People don’t bat an eye when it comes to insuring home and automobiles, but the thought of life insurance sometimes brings about questions. 
 
Life insurance is protection and investment for the events that occur in the course or span in individuals’ lives.  This type of insurance pays out a sum of money either at the death of the individual or after a set amount of time or term.
 
There are two primary types of life insurance.  These two types are term and permanent.  Term life insurance is for a defined or specific amount of time.  Permanent life insurance is for your entire life or time of your death.
 
Premium payments on life insurance, the amount of money you pay to be insured, will be different depending on if you have term or permanent life insurance.  Term life insurance premiums are normally lower than permanent life insurance premiums.
 
Two types of permanent life insurance are whole life insurance and universal life insurance.  Whole life insurance premiums are usually set coverage amounts for the entire time you have the policy.  Universal life insurance commonly allows you flexibility to change your premium and coverage amounts throughout your lifetime.
 
 A similarity for both types of life insurance involves taxes.  Death benefits payable for all types of life insurance are usually income tax free.
 
When looking at the different types of life insurance it is important to note what is being insured or what the policy benefits would pay for upon the holder’s death.  Term Life Insurance replaces or pays income during working years. Universal Life Insurance helps meet the need of wealth transfer, protects your income, and possibly can focus on tax-deferred wealth accumulation.  Whole life insurance is designed for wealth transfer, preservation, and tax-deferred wealth accumulation.
 
Wealth transfer is how your assets, that can include wills, estate planning, and trusts, are paid to or transferred to your beneficiaries in a tax efficient way.  Tax-deferred wealth accumulation can allow lower tax rates while earning a higher investment rate.  These permanent life insurance categories and/or plans are usually lower risk when speaking in relation to traditional investments.
 
The premiums paid for these plans will depend on risk-related categories.  Those categories include things like your family medical history, lifestyle choices (like whether you use tobacco products), and your overall health.  The higher the risks, the higher the premiums.
 
Educating yourself about life insurance is not a difficult thing to do in the Lake Area.  The reason it isn’t a difficult thing to do is because there are local companies like Kelly Lee Insurance TWFG Insurance Service were their policy is caring.  That means they will sit down and explain what the different type of life insurance policies can do for your children, spouse, parents, or older siblings whose future you want to secure when the time of your death comes.
 
Just about anyone who earns income owes it to their loved ones and themselves to consider having a conversation for a complimentary quote on premiums. For all types of life insurance with the coverage you need at a price you can afford, Kelly Lee Insurance has access to over 50 independent insurance carriers.  

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