What Does Life Insurance Cover?

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Life insurance primarily covers the following:

​Death Benefit

• A lump-sum payment, typically income tax-free, to your beneficiaries if you die while the policy is in effect. This can help replace lost income, pay off debts, cover living expenses, and handle final medical or funeral costs.

Cash Value and Loans

• For permanent life insurance policies, a portion of your premiums goes into a cash value account, which can grow over time. You can borrow against this cash value or use it to pay premiums.

Additional Benefits

• Some policies come with riders or provisions that can provide additional benefits, such as accelerated death benefits for end-of-life care, long-term care benefits, or coverage for children.

 

Why Should You Consider Life Insurance?:

Financial Security//generational wealth

• Life insurance helps ensure that your dependents are financially protected should the unexpected occur. This is particularly important for parents, business owners, and anyone with financial obligations that would need to be covered after their death.  This is one of the single most important things you can do to create financial security for your dependents. 

Estate Planning

• Permanent life insurance policies can be used in estate planning to simplify the transfer of generational assets and help mitigate estate taxes.

Business Continuity

• For business owners, life insurance can help ensure the continuity of the business by providing funds to buy out a deceased partner's share or cover business debts.

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Calculating Your Needs

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To determine how much life insurance you need, consider the following:

• Your income and the number of years your dependents would need financial support.

• Outstanding debts, such as mortgages or loans.

• Education costs for your children.

• Final expenses, including funeral costs.

• Any other financial obligations or goals, such as retirement needs for your spouse.

 

Working with asguardian Financial can help you calculate the right amount of coverage and choose the most suitable policy for your needs.