Types of life insurance
Term or permanent?
There are two types of life insurance: permanent and term. Each offers different features and meets different needs, as shown in the diagram.
The role of life insurance in your life
Upon your death, it may be used for:
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- Paying final fees and any other debts
- Ensuring the necessary resources to your family so it may sustain a comfortable standard of living
- Leaving a legacy to a charity with a good cause close to your heart
- Settling tax liabilities that increase
- Submitting your estate to your beneficiaries
During your lifetime, it may be used for:
- Increasing a cash value in a financially advantageous way
- Supplementing a retirement income
- Providing for chronic and home care
If you own a business, alone or with associates, life insurance can help you protect what you have built.
- Protection against debts
- Liquid assets
- Business succession and Buy/Sell agreements
Obviously, the best time to buy life insurance at a lower cost is when you think you do not need it, that is, when you are young and in good health.
However, life insurance can be a safe value at any time during your life, because it provides you with an essential protection. Also you may customize it according to your changing needs and budget.
Life insurance meets different needs throughout the various stages of your life. It is possible – and recommended – to adjust your protection to match significant life events.
How much life insurance do you need?
The amount of life insurance that you need changes over time, as illustrated in this table. Consilium Insurance and Consulting Group will help you determine the amount you need.
The key to establishing your needs in life insurance is to determine the amount of protection you need today, without losing sight of the needs that may become important for you in the future.
