There are several different types of life insurance products available. The 2 most commonly known are Term Life Insurance and Whole Life Insurance.
Term Life Insurance provides a tax-free death benefit on the insured's life payable to the policy's named beneficiary(s). Term Life Insurance policy coverage is for a defined period of time, 10 years, 15 years, 20 years, etc. After the period of time (term) has passed the policy ends. Term Life Insurance can be a great tool to help business partners fund a buy-sell agreement for business succession planning. Term Life Insurance can also be structured to be convertible to a whole life policy before the term ends.
Whole Life Insurance is a very important and unique product that allows you to use your premium dollars for multiple purposes throughout your lifetime.
Whole Life Insurance provides a basic amount of tax-free death benefit on the insured's life payable to the policy's named beneficiary(s). In addition to providing death benefit protection, whole life insurance provides a means to accumulate cash value for goals like education or retirement. The cash values that accumulate within a whole life insurance policy are not correlated to the stock market or real estate market. Therefore you will not have to worry about the volatility of those markets affecting your whole life insurance cash values. If set up properly, whole life insurance can help to maximize a retirement income plan. It can do this by providing non-correlated cash values that can act as a volatility buffer to invested assets. It can also do this by allowing you to be able to spend all of your accumulated invested retirement assets with the ability to be able to replace some or all of it with a tax- free death benefit.
Everyone's situation and needs are different. Feel free to contact Matthew Wood at Brothers Wood Agency to discuss your situation.
Matthew Wood
matthew@brotherswoodagency.com
952-222-1280
While our offices are located in Savage, MN and Fort Mill, SC, we do commercial insurance business nationwide and offer personal insurance business in MN, SC, NC, WI, NM, TX and FL.
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