Many people look at life insurance as something that is morbid. Especially for those who are young and healthy, the idea of passing away seems to be far-fetched and not likely to happen anytime soon. What they fail to understand is that there are a lot of benefits that could be enjoyed by people who start preparing for their financial future at the earliest possible time. There are benefits to getting life income insurance early on in life when there are not too many financial obligations yet and when a person’s health has not yet impaired his chances of getting good rates on his life insurance premiums. In this sense, buying a life income insurance policy would serve as a savings and protection product rather than a product to merely address someone’s death. A life income insurance policy can give financial benefits both to the insured and to his beneficiaries.
Income through Your Sunset Years
Buying the right kind of life insurance policy can provide for you when the time comes when you can no longer provide for yourself. This is the kind of life insurance policy that you set up to address your retirement planning needs. The life insurance protection that has served as your family’s potential source of income in case you pass away during their dependency years should now serve to give you retirement income. This is possible with a cash value life insurance policy that has substantially accumulated savings through the years. Without terminating the life income insurance policy, you can enjoy your cash benefits for life. At the onset, you can ask your financial planner or insurance agent to give you an indicative projection as to the estimated accumulation of your life income insurance policy’s savings component. You can draw from this savings fund to provide you income for life.
Income for the Next Generation
You can also ensure that your family will be able to enjoy the benefits of your life insurance policy by issuing instructions for life distribution of the proceeds of your coverage. This will ensure that your family receives income regularly from your life income insurance policy after you pass away. As compared to a lump sum distribution, this kind of arrangement is chosen by those who would want their insurance benefits to be wisely spent for the family’s regular expenses. You can make arrangements with your insurer for the distribution of your insurance benefits in a fixed amount or within a fixed period of time until the benefits run out, or in a fixed amount throughout the lifetime of the beneficiary.
A Different Breed of Protection
Another kind of life insurance quote that can be purchased by those who wish to have both income for life and income for their beneficiaries after their death is annuities. Although clustered with insurance products, annuities are of a different breed in that it is actually a savings and investment instrument where the annuitant sets up a fund for distribution at a rate, amount, and period agreed upon in the annuity contract. This is often the recourse of those who are not anymore eligible for life insurance coverage. Under a joint-survivorship annuity, the annuitant or the person who bought the annuity arranges for the payment of income to continue throughout the lifetime of his joint-survivor. A professional financial advisor or financial planner would be able to give you advice on this and other kinds of annuities and life income insurance products to help you achieve your financial goals.
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