Plan for the Ones You Love
You’ve got big dreams for your little ones…and big responsibilities. With the right planning you can have the peace of mind you need to ensure those dreams become a reality. The BlueSky team is ready to help put into place a life insurance strategy aligned with your needs and that of your family’s. We have many options available – from term to whole life, universal life and more – and can discuss each policy with you to determine what’s best.
For the Short Term
If you have a family or other dependents that rely on you, your untimely death could have a devastating impact on their ability to meet their financial responsibilities. Term life insurance can be used to provide your beneficiaries with funds to maintain their daily financial needs, pay off debts or hire outside care if needed. This is a straight insurance policy with no investment component. You’re buying coverage that lasts for a set period of time provided you pay the monthly premium.
You can choose a level-term policy, which keeps the same payout all the way through the life of the policy, or you can opt for decreasing term insurance, which means the death benefit is reduced over time.
The Long View
A whole life policy combines coverage with an investment fund. You’re buying a policy that pays a stated, fixed amount upon your death, with part of the premium going towards building cash value from investments made by the insurance company. Cash value builds tax-deferred each year that you keep the policy, and you can borrow against the cash accumulation fund without being taxed. The amount you pay usually doesn’t change throughout the life of the policy.
A whole life insurance policy can be used to fund business buyouts so that a family business or the insured’s stake in another business doesn’t have to be sold off, but rather can be purchased by the next generation. It can also be used to help beneficiaries pay taxes on what they inherit from the insured. Some choose to use whole life insurance to fund trusts for grandchildren or to leave a legacy gift to a favorite organization or charity.
A universal life policy is a permanent insurance policy that combines term insurance with a money market-type investment that pays a market rate of return. In general, you can decide how much you want to pay into the policy at different times, as long as you meet a contracted minimum payment. If you make payments over and above your mandatory premium, the excess goes into investments the insurer chooses. Returns on those investments will build cash value in your policy, and those earnings aren’t taxed until the policy is used. It’s a viable option for those who want to have more control over their policy’s investment earning potential and premium payments.
Survivorship life insurance, or second-to-die life insurance, is a policy written on two lives. Only after the death of the second insured will the policy pay the death benefit. The death benefit can be used to pay estate taxes, care for a special needs child, leave a legacy to a charitable organization, and other purposes.
There are many choices when it comes to life insurance. Talk to BlueSky to see what’s right for you.
WE’RE READY WHEN YOU ARE.
