Having the right life insurance is essential to planning both, for your present and your future. If you live in CT, and you dont already have a life insurance policy, you may want to take the time to contact a Connecticut life insurance company to receive some valuable information about the types of coverage they can provide.
Not only can life insurance provide assurance for your family after youre no longer around, many life insurance policy options offer other valuable benefits as well as investment opportunities you can take full advantage of while you are alive.
The 3 most common insurance options
Term life insurance provides protection for a specified period of time. If you do not currently have life insurance, term can be a good place to start. Perhaps you may wish to opt for Whole life insurance, which is a form of permanent life insurance that remains in force for your entire lifetime, and provides investment opportunities as it builds cash value over time.
Universal life is a form of permanent life insurance characterized by its flexible premiums, face amounts and unbundled pricing structure. Universal life can build cash value, which earns an interest rate that may adjust periodically, but is usually guaranteed not to fall below a certain percentage.
Advantages of the life insurance death benefit
While we dont like to dwell on the subject, we will all pass through this world at some time. When you eventually pass on, your life insurance will provide income tax-free money to the named beneficiary (or beneficiaries) on your policy. The money can be used in a number of handy ways, including paying funeral expenses, any existing debts, estate taxes, or virtually helping with any financial needs.
The policy purchased from a Connecticut life insurance company can also help to provide security for your business as well by enabling your partners to buy out the interests of a deceased partner, thereby preventing a forced liquidation. The death benefit, and how it is laid out in the policy can offer relief at a very difficult time.
The advantages of living benefits
On a brighter note, the cash value growth of a permanent (whole) life insurance policy is tax-deferred, meaning you dont pay taxes on the growth of cash value unless money is withdrawn early. Also, theres the advantage of being able to take out loans or withdrawals against the cash value of a permanent life insurance policy to help with other expenses, for example, college tuition for the kids or a down payment on a new house.