Life insurance may be one of the most important financial instruments many of us will ever own, and buying the right kind of life insurance is one of the best ways to protect your family's future. |
The purpose of life insurance should be to protect the family against the premature death of the breadwinner or caretaker. |
You’re paying for a substitute of income or to replace the caretaker’s responsibilities. |
The people that primarily need it are those who have others depending on them for support, not necessarily financial. |
PRODUCT |
WHEN... |
DESCRIPTION |
Term Life |
Going to college, getting married, new job, starting a family, or taking out a loan. |
Term life insurance covers you for a specific period of time — select from 10 to 30 years. |
Index Life |
Getting married, new job, starting a family,planning for tax advantage retirement. |
Index life insurance gives you insurance protection, and lets you build cash surrender value. |
Equity Stratergy Life |
Getting ready to plan aggressive retirement or for estate planning. |
Equity life is a index life insurance policy that's designed especially for home owners. |
Children Education Life |
A new baby or for college planning. |
Children's life insurance is a insurance policy designed specifically for the needs of children. |
Indexed Universal Life Insurance is a permanent life insurance program that provides flexible premiums and an option of two adjustable death benefits. It also accumulates cash values and offers competitive tax-deferred interest. Loans and withdrawals are available on a tax-favored basis. |
Term Life Insurance offers low-cost protection for a specified period of time. It is a temporary solution to a short-term need such as a housing loan, business expansion or large debt. This type of policy provides large death benefits at an initial low premium that increases as you get older. Some term policies, however, have an option that allows you to convert the policy into permanent insurance |
A gift for tomorrow... and beyond Life insurance is a unique gift that can establish the foundation for your heirs' financial security. Its many possible applications include:
- A college funding gift for a grandchild
- To transfer real estate or another asset
- A gift for charity
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Everything you need to know about life insurance.
Planning for the future and protecting against uncertainty is why life insurance exists. Learning about insurance and what plan is right for you is the first step toward protecting your family's future. Let SBLI help you get started with our quick and easy planning tools. |
Life Insurance
What Is Life Insurance?
A multipurpose financial planning tool
Life insurance is designed primarily to protect your family’s financial security after you die. But some types of life insurance can also help you build assets to meet needs during your lifetime. So it’s a smart addition to any financial plan — because it can serve different functions within your overall investment strategy.
Security for your family should something happen to you
Life insurance can help:
- Pay off your debts and taxes after your death.
- Allow your family to maintain its standard of living.
- Support your dependents’ goals and dreams.
- Provide immediate access to cash.1
Life Insurance: Is Not a Deposit of Any Bank • Is Not FDIC Insured • Is Not Insured by Any Federal Government Agency • Is Not Guaranteed by Any Bank or Savings Association
Financial support during your lifetime
Certain types of life insurance also may serve as:
- A supplement for your retirement income.
- A funding vehicle for a college education, starting a business, an emergency, or buying a second home.
How Much Insurance Do You Need?
One rule of thumb is to buy life insurance equal to five to seven times your annual gross income*. However, there is no substitute for a careful evaluation and review of your life insurance needs with your financial advisor.
A Must-Have for Your Financial Plan
No matter what kind of life insurance you choose, there’s no substitute for the peace of mind it can provide. Life insurance is one of the ways you can protect your family’s financial security should something happen to you.
Talk to your financial advisor/licensed insurance agent about your long-term needs, and he or she can help you determine:
- Which type of insurance is right for you.
- How much protection you and your family need.
- How to make the most of your premium dollars.
- Source: American Council of Life Insurance, December 2
Insurance
The concept of insurance is fairly simple — it involves paying someone (the insurance company) to take on a certain risk. When you buy an insurance policy, you agree to pay a premium (the cost of the insurance) to an insurer. The insurer, in turn, agrees to pay a specified amount of money in case something covered by your insurance is damaged, lost, or stolen. For example, those of us who own cars are required to carry automobile insurance. We pay the premiums, whether or not we have accidents. When we do have an accident, our insurer is responsible for paying the bills related to the accident, in whatever amount is specified in the insurance policy.
You can buy insurance to cover almost any risk — the risk that you will die, or that you will become ill and require medical attention, or that you will have a car accident, among others.
When you buy insurance, there are lots of things to think about — specific risks you are actually facing, where you are in your life, how much insurance coverage you can afford, and other factors. So before you get started making decisions about buying insurance, it’s helpful to know something about each of the types of insurance that are available to you.
There are several different categories of insurance:
Life Insurance
— provides an insurance benefit when the person who is insured dies
Health Insurance
— covers certain medical expenses and prescription medications
Property Insurance
— pays a benefit if your property is damaged
Liability Insurance
— provides you with insurance protection if you are found to be at fault and cause damage to someone’s health or property
Disability Insurance
— pays you income if you are unable to work
Long-term Care Insurance
— covers some portion of in-home care and/or nursing home bills
Life insurance may be one of the most important financial instruments many of us will ever own, and buying the right kind of life insurance is one of the best ways to protect your family’s future.
- The purpose of life insurance should be to protect the family against the premature death of the breadwinner or caretaker.
- You’re paying for a substitute of income or to replace the caretaker’s responsibilities.
- The people that primarily need it are those who have others depending on them for support, not necessarily financial.
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