Travis Williams - State Farm

Life Insurance Options for Families

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Quick Breakdown FYI on Life Insurance

By State Farm Marketing & Communications Department

Get the Basics and Make the Right Choice for Your Family

We have put together some Life insurance basics to help you make the choice for you!

There’s a lot to learn when you’re getting started with life insurance, and there’s still a lot to learn when you’ve had insurance for years! It is important to me that you understand the basics and feel confident that you’re making informed choices.

Life Insurance policies have been developed to help your family:

                    • Keep paying the home mortgage.
                    • Maintain their current standard of living.
                    • Pay off debts, estate taxes, and final expenses.
                    • Create a fund for college education.
                    • Create a fund for a family member with special needs.
                    • Protect their dreams for the future.

Whether you’re looking for the affordability of term insurance or the lifelong protection and cash value of permanent insurance — or a combination of both — we offer varied options for you.

Here are some available options for you to choose from:

Term Life Insurance

A relatively large amount of Term life insurance may be purchased for a low initial premium. It may be appropriate for temporary coverage for needs like:

                    • Covering the remainder of a Home Mortgage,
                    • Outstanding Debt,
                    • Educational Expenses,
                    • and, an Auto Loan.

Permanent Life Insurance

Permanent life insurance offers a level premium for a coverage amount you choose. It provides lifetime coverage, provided premiums are paid and the coverage remains in force, and builds cash value. Permanent policies are eligible for dividends, although dividends are not guaranteed. It’s best for lifelong needs like:

                    • Loved one’s financial needs,
                    • Final expenses,
                    • Estate planning,
                    • Contributions to charity,
                    • Business legacy,
                    • and, access to Accumulated Cash Value.

 

Whole Life Insurance

Whole life insurance helps your family prepare for the unexpected. The guaranteed death benefit can help replace a family’s loss of income, help with mortgage costs, or educational needs – or to leave a legacy for the next generation. Over time, these policies build cash value that grows tax-free. This living benefit can be accessed during your lifetime. We can help you.

Universal Life Insurance

Flexible, Permanent Protection with Life Insurance

Universal Life Insurance premiums are paid into your policy’s account value (after a premium expense charge), where it earns interest. Every month, various deductions, such as a charge for insurance protection, are then made from the account value. You, the policy owner, have the ability to take loans or make withdrawals from the account value for your personal needs. Loans accrue interest and unpaid loans plus interest and withdrawals will reduce the death benefit and cash value. This type of policy continues as long as the cash values are sufficient to cover all various deductions every month:

Typical Uses for Universal Life Insurance

                    • Provides for a family’s loss of income, mortgage costs, and educational needs
                    • Access to cash value for life’s opportunities
                    • Estate, special needs, and business planning

Universal Life Insurance

A Universal Life Insurance policy is a flexible way to help protect your loved ones and build tax-deferred cash value.

Features

                    • Flexibility — You decide the amount of life insurance and premium payments subject to policy minimums.
                    • Death benefit — Life insurance proceeds are generally income tax free to the beneficiary.
                    • The growth in cash value is tax-deferred under current federal income tax law.
                    • Access to cash value — The cash value can be accessed to help with education expenses, provide a retirement supplement, or other personal objectives.

Survivorship Universal Life Insurance

Survivorship Universal Life Insurance covers two people. The death benefit is paid when the last person insured under the policy dies. Survivorship Universal Life is an efficient way to assist with a variety of planning needs.

Features

                    • Typically, less expensive than two individual Whole Life or Universal Life Insurance policies.
                    • Flexibility — You decide the amount of life insurance and premium payments subject to policy minimums.
                    • Death benefit — Life insurance proceeds are generally income tax free to the beneficiary.
                    • The growth in cash value is tax-deferred under current federal income tax law.
                    • Access to cash value — The cash value can be accessed to help with education expenses, provide a retirement supplement, or other personal objectives.

Joint Universal Life Insurance

Joint Universal Life Insurance covers two people. The death benefit is paid upon the first death of the insureds. Joint Universal Life offers an economical way of providing permanent coverage for two individuals under one policy.

Features

                    • Typically, less expensive than two individual Whole Life or Universal Life Insurance policies.
                    • Flexibility — You decide the amount of life insurance and premium payments subject to policy minimums.
                    • Can raise or lower the coverage – and premiums – to fit the need.1
                    • Death benefit — payable upon first death.
                    • Life insurance proceeds are generally income tax free to the beneficiary.
                    • Option to purchase another policy for the surviving insured.
                    • Ability to withdraw cash (or take loans) from your account when you need it to help with education expenses, provide a retirement supplement, or other personal objectives.2
                    • Includes a broad range of riders and features to customize coverage.

 

I wanted to quickly highlight some viable life insurance choices so you can obtain some simple differences and real benefits from these options for you to ponder. Please call my office or an insurance agent you can trust the questions you have formulated to best serve your specific family needs and financial goals with Life Insurance coverage.

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