In good times and in bad, you have always put your family first. But what happens when you’re gone? Although choosing life insurance can be a daunting task, selecting the right policy is critical to your family’s financial well-being.
Having insufficient coverage, or worse, having no coverage at all, may be detrimental to your loved ones during a time when they need support the most.
Raymond James understands the importance of your family. And because you are our first priority, we want to help ensure the financial well-being of those you love most. In fact, we were one of the first firms to understand and emphasize the role insurance plays in a comprehensive financial plan.
Are others dependent upon you for financial support? If your children, spouse or other loved ones had to continue without you, would they have ample income to do so?
An essential part of financial planning, life insurance can help replace income that would be lost upon your death. It can also help ensure that dependents are not burdened with significant debt, affording them financial security in a difficult time.
Your financial advisor can assist you in determining how much insurance you may need. Some factors for consideration include:
It is usually best to begin by comparing different types of policies. Although nothing can replace the advice of a financial advisor when making the final decision, this table can be a helpful starting point.
|Term Life||Whole Life||Universal Life|
|Policy term||Stated in policy||Life||Life|
|Type of death benefit||Face value||Face value (dividends)||Face value and/or face + cash value|
|Cash value||None||Fixed rate, guaranteed||Current rate, guaranteed minimum|
If you’re looking for protection during a specific time period at a reasonable price, consider term life insurance.
You may have two additional options available when purchasing term life insurance: renewable and convertible policies.
Under this type of policy, the holder does not need to provide evidence of insurability to renew the policy. Premiums may increase, however, at time of renewal.
Convertible term life policies can be exchanged for whole life, universal or variable policies. Policyholders do not need to provide evidence of insurability, but premiums will increase since you are moving from a term to a permanent policy.
As its name suggests, a whole life policy remains in effect your entire life. It differs from term insurance in that a portion of the premiums goes into a cash value account.
This policy offers a wide range of choices regarding premium payments, allowing you to choose how much will be paid and when.
The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of the author and not necessarily those of Raymond James.These policies have exclusions and/or limitations. The cost and availability of life insurance depend on factors such as age, health and the type and amount of insurance purchased. As with most financial decisions, there are expenses associated with the purchase of life insurance. Policies commonly have mortality and expense charges. In addition if a policy is surrendered prematurely, there may be surrender charges and income tax implications. Guarantees are based on the claims paying ability of the insurance company.