Advantages of Life Insurance
- The death benefit provides tax-free income tax-free to your named beneficiary(s) to be used to pay funeral expenses, debt, tuition, estate taxes or virtually any financial need you leave behind, and can protect your business by enabling partners to buy out the interests of a deceased partner and prevent a forced liquidation.
- Living benefits ensure the cash value growth of a permanent life insurance policy is tax-deferred*. Loans** or withdrawals can be taken against the cash value of a permanent life insurance policy to help with expenses.
Advantages of both death and living benefits vary. We'll work with you to find the best company and coverages for you and your family.
*Accumulated growth may be taxable upon withdrawal. If the policy is a Modified Endowment Contract (MEC), tax penalties may apply
prior to age 59 ‡. Consult a tax advisor on your specific situation.
**Policy loans and withdrawals reduce cash value and the death benefit and may be subject to other charges outlined in the contract.
Assessing Your Need for Life Insurance
- A spouse
- Dependent children
- Aging parents or a relative who depends on you for support
- Retirement savings insufficient to ensure your spouse's future financial well-being
- A sizable estate
- A business
The amount of life insurance you select should be dependent on your personal and financial needs. We can assist you in determining an appropriate coverage amount and which type is right for you. Generally, you should consider life insurance if you have:
Life changes--so should your policy. As life events happen (such as: marriage, divorce, a new baby, purchase of a new home, retirement, etc.) you may want to reevaluate coverage to adapt to your needs.
Types of Life Insurance
- Term Life Insurance provides life insurance protection for a specified period of time. If you do not currently have life insurance, term can be a good place to start. It's generally less expensive than permanent life insurance, and is available in varying term periods with fixed premiums from a one- (annual renewable term) to 20-year period (level term). Also, term insurance is sometimes convertible to permanent coverage, providing you with flexibility as your needs change.
- Whole Life Insurance is a form of permanent life insurance that remains in force during the insured person's lifetime, provided premiums are paid as specified in the policy. Whole life can build cash value.
- Universal Life Insurance is a form of permanent life insurance characterized by its flexible premiums, flexible face amounts and unbundled pricing structure. Universal life can build cash value, which earns an interest rate that may adjust periodically, but is usually guaranteed not to fall below a certain percentage.
Advantages of both death and living benefits vary. We'll work with you to find the best company and coverages for you and your family.
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Summit offers a variety of Life Insurance products for individuals and businesses. Click to request more info >
