What is the difference between term life insurance and whole life insurance?Toggle title
Term life insurance provides affordable coverage for a specific number of years (10, 20, or 30 years). Whole life insurance lasts your entire lifetime, builds cash value, and can be borrowed against. Families often choose term for short‑term protection and whole life for long‑term financial security.
What is indexed universal life insurance (IUL) and how does it work?
Indexed universal life insurance (IUL) is a flexible policy that combines life insurance protection with tax‑deferred cash value growth. Your money grows based on the performance of a stock market index, like the S&P 500, while protecting you from market losses.
Do I really need a will if I don’t own a lot of assets?
Yes. Even if you don’t have a large estate, a last will and testament ensures that your property and personal belongings are distributed according to your wishes. Without one, state law decides who receives your assets — which may not reflect your intentions.
What are the benefits of using an annuity for retirement planning?
An annuity provides guaranteed lifetime income, protects against outliving your money, and allows for tax‑deferred growth. Many retirees use fixed annuities for stability or indexed annuities for growth potential tied to the market.
How much life insurance coverage do I need?
A good rule of thumb is 10–12 times your annual income. Your coverage should be enough to pay off debts, cover living expenses, and fund future needs like education. A free life insurance consultation can help determine the right amount for you.
What happens if I pass away without an estate plan?
Without an estate plan, your estate may go through probate court, which is often expensive and time‑consuming. State law will decide how your assets are divided, which can lead to family disputes. An estate plan ensures your wishes are legally protected.
Are annuities safe investments?
Yes. Fixed annuities and indexed annuities are considered safe because they are backed by insurance companies, not the stock market. Variable annuities carry investment risks but also higher growth potential. The right choice depends on your retirement goals.
Can I combine life insurance with retirement planning?
Absolutely. Policies like indexed universal life insurance (IUL) can provide both a death benefit for your family and tax‑advantaged retirement income. Many families use life insurance as part of their broader financial strategy.