Life Insurance: The Hidden Asset Protecting Futures
Life insurance policies frequently remain undiscovered until tragedy befalls a family. Determine which type of insurance is best suited for you.
Life Insurance policies frequently remain undiscovered until tragedy befalls a family. Policies that have been tucked away for decades often provide a surprising financial boost to beneficiaries who may have had no idea that insurance existed. Collecting on a policy after a death can help through the hardship of loss and even change the future for some.
Purchasing life insurance is an investment in someone else’s future, whether the beneficiary is a spouse, child, other relative, or organization. In some instances, the type of life insurance and personal circumstances may allow a life insurance owner to convert their policy to a personal asset for retirement or emergencies. Knowing what kind of insurance to purchase or invest in can be a serious decision with many variables. Consulting a professional financial advisor for guidance will ensure the best choice for individual situations.
What Kind of Insurance to Buy
Many life insurance companies offer a variety of products that range in price, coverage, and benefits. While the common factor is that each provides a payoff on the passing of the owner, each life product carries different value-added features. Life insurance typically falls into one of four categories:
● Term life insurance – the most basic form of insurance that pays a set benefit if the insured dies during a specified period of time or before a certain age. Term life is typically the most affordable type of coverage, and does not include additional features like investment or cash value.
● Whole life insurance – unlike term life, this permanent type of coverage remains in force until death — no matter what age or time that may occur. Permanent life policies may accrue cash value that owners can borrow against or cash in.
● Universal life insurance – another form of permanent life insurance that has an attached investment account that allows the owner to direct investments, earn higher interest rates, and make withdrawals on the policy account.
Some forms of life insurance can even be sold to a third-party investor for instant conversion to liquid assets. Individual needs and beneficiary plans can determine which type of insurance is best suited for each buyer. Each kind of insurance provides different levels of protection for families and beneficiaries, but all are important investments in someone’s future.
Brian Farley, Four Point Financial
Brian Farley is your Professional Financial Planner and can help you with your insurance questions and needs.
Brian has been the President of Four Point Financial, in Flamborough, Ontario, for nearly 13 years. Brian attributes his clients’ success to his determination and focus - tirelessly working with them to reach their own financial milestones and goal.
Give Brian a call 905.690.5045
You can find Brian at 50 Coreslab Dr. in Flamborough, or visit his WEBSITE
Protecting You and Your Family