Depending on your situation, a combination of Term and Permanent insurance could be ideal.
Here are the differences between the two.
You have it for a “term” of time. It starts out inexpensive, but like a rental, goes up over time. Also, like a rental, you have no equity. The term ends after a period of time, then the rates go up. Each year it costs us more for insurance, since we are more of a risk as time passes.
What term insurance does is take a certain “term” of time, say 20 or 30 years, and averages out the cost. There are wonderful uses for this type of coverage.
Permanent insurance is like buying a house.
This type of insurance costs more in the beginning, just like buying a house is more expensive than renting. Yet, like buying a house (with a fixed mortgage), your rates stay the same over the course of your life. Like buying a home, you build equity. You may also access the money, like in a home equity line of credit (HELOC), however it is much easier, you don’t have to qualify.
Some permanent life insurance products offer a “container” in which to grow your money so you may access it tax-free (when it is done correctly). Certain types of policies are flexible, which means that if you make more than usual one year and less the next, you may adjust your premiums.
The container consists of two boxes. A small box for the life insurance costs. This is the minimum amount to make the policy run.
The larger box is the “IRS not-to-exceed” box. The IRS limits you as to how much you can store and grow in this container (That’s a sign that it may be a good thing).
Of the many companies out there who offer these types of policies, some look out for the client’s financial well-being better than others.
Let’s find out if this kind of policy would suit you.
Call me at 702.498.2445. You may be pleasantly surprised what is possible for you.
Sincerely, Nannette DiMascio
Your Agent for Life
Protecting those close to your heart.
Creating a tax free retirement.
NV License #939444
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