Live, Laugh, Love! Let’s Talk Life Insurance!
Here’s the scoop on Life insurance. We often want to live the best, healthiest life, but without a fallback, such as insurance, how will our living legacies progress? Well, life insurance comes in a variety of forms, each with its own unique features and benefits. The most common types of life insurance are term life insurance, whole life insurance, and universal life insurance. Let’s take a quick look on what these are and how to determine which one is the best for you. Since we don’t want to scare you, we will be light and humorous because let’s face it, it can be a darker subject.
Term life insurance is like renting an apartment. You pay a monthly premium for a set period of time, typically 10, 20, or 30 years. If you pass away during that time, your beneficiaries receive a lump sum payout. But if you outlive the term, your coverage expires and you don’t get anything back. It’s like returning the keys to your landlord at the end of your lease.
Whole life insurance, on the other hand, is like owning a home. You pay a fixed premium for the rest of your life, and a portion of that money goes towards building cash value. This means that over time, you can accumulate savings that can be used for things like retirement or emergencies. Plus, your beneficiaries receive a payout no matter when you pass away. It’s like owning a home that appreciates in value over time.
Universal life insurance is like owning a condo. You have more flexibility in how much you pay towards your premium and how much goes towards building cash value. You can also adjust your death benefit and change your premium payments over time. It’s like having the freedom to renovate your living space and make it your own.
Each of these plans are great in their own right but please remember to choose the best for you and your current living situation!
Moving over to retirement planning, there are several options for saving for retirement, including 401(k) plans, individual retirement accounts (IRAs), and annuities.
A 401(k) plan is like a party that your employer throws for you. You make contributions from your paycheck, and your employer may match some or all of your contributions. The money grows tax-deferred until you retire, at which point you start making withdrawals. You are partying now and paying for it later (but hopefully not too much later) in the hopes to continue living comfortably.
IRAs are like having your own piggy bank. You make contributions with after-tax dollars and the money grows tax-deferred until you retire.
There are two types of IRAs: traditional and Roth.
When contributing to a traditional IRA, you get a tax deduction for your contributions but pay taxes on withdrawals.
With a Roth IRA, you pay taxes on your contributions but not on withdrawals. It’s like deciding whether to break open your piggy bank now or later.
Annuities are like having a benefactor. You make a lump sum payment or a series of payments to an insurance company, and in return, you receive a guaranteed income stream for the rest of your life. Annuities can be fixed or variable, meaning that your payments can stay the same or change over time depending on the performance of the underlying investments. It’s like having someone take care of you financially for the rest of your life (minus the drama).
Here’s some great news, Harris Insurance wants to help you plan for the inevitable and protect your family with life insurance. Don’t wait until too much time has passed, because death, unfortunately, doesn’t discriminate based on age. Life insurance can cover funeral costs, mortgages, and medical bills, and it’s tax-free.
Whether you need life insurance quotes clarification, or general advice on life insurance, you can rely on Harris Insurance, one of the premier life insurance companies in Florida. Our dedicated and knowledgeable team is ready to help put your mind at ease. Contact us today!
LEGAL DISCLAIMER
Views expressed here do not constitute legal advice. The information contained herein is for general guidance of matter only and not for the purpose of providing legal advice. Discussion of insurance policy language is descriptive only. Every policy has different policy language. Coverage afforded under any insurance policy issued is subject to individual policy terms and conditions. Please refer to your policy for the actual language.
