Welcome to Life Insurance Awareness Month!
Other than skiing the occasional double black diamond, I wouldn’t characterize myself as much of a risk-taker. But when I find myself on a ski slope that’s a touch steeper than my liking, it’s nice knowing my family is protected.
Like most people, I had a general knowledge of life insurance, but I truly started to understand its importance when I met my wife. Her dad is in the life insurance business, and he showed me the benefits of having a policy in place for me, my wife, and our three children.
Thanks to him, I know my family will be protected should something happen to me.
My kids also benefit from having their own universal life policies since birth. Each policy has performed well and accumulated cash value, some of which may help offset college costs! Life insurance turned out to be a smart decision for us.
We aren’t all lucky enough to know someone like my father-in-law. Without a trusted agent or financial professional, life insurance can seem complicated.
It might feel like there are too many options, and the differences between products can seem random when looked at without a professional’s knowledge and experience.
What surprised me most about our life insurance policies is how competitively priced they are. I’m not alone in that. According to a LIMRA survey, most people estimate their necessary coverage will cost three times more than it actually does.
That probably contributes to the fact that only 59% of Americans have life insurance. Based on my experience, the other 41% of Americans are missing out.
The security of knowing my family is covered, and that my kids have a jump start on their financial future is immeasurable. Like skiing, you’d be crazy to travel through life without the protection of a helmet.
Loans, withdrawals, and death benefit accelerations will reduce the policy value and the death benefit and may increase lapse risk. Policy loans are tax-free provided the policy remains in force. If the policy is surrendered or lapses, the amount of the policy loan will be considered a distribution from the policy and will be taxable to the extent that such loan plus other distributions at that time exceed the policy basis.
Transamerica Resources, Inc. is an Aegon company and is affiliated with various companies which include, but are not limited to, insurance companies and broker dealers. Transamerica Resources, Inc. does not offer insurance products or securities. The information provided is for educational purposes only and should not be construed as, medical, insurance, securities, tax, legal or financial advice or guidance. Please consult your personal independent advisors for answers to your specific questions.