Life Happens, Let’s Plan for the Rainy Days.
Why do we need life insurance?
Financial protection for loved ones: Life insurance provides a financial safety net for your loved ones in the event of your death or/and critical illness, terminal disease or critical injury such as car accident. It can help pay for expenses such as medical care, caregiver, modify your home settings, funeral costs, outstanding debts, living expenses and the last bucket wish list.
Income replacement: If you are the primary breadwinner in your family, a life insurance policy can replace your lost income and help your family maintain their standard of living.
Estate planning: Life insurance can be used to help pay for estate taxes and other expenses, ensuring that your assets are passed on to your beneficiaries as you intended.
Paying off mortgages and other debts: A life insurance policy can help pay off mortgages and other debts, giving your loved ones a financial fresh start.
Peace of mind: Having a life insurance policy in place can provide peace of mind knowing that your loved ones will be financially protected if something were to happen to you. It can also help you sleep better at night, knowing that you have taken steps to secure your family's future.
How do I determine the face amount of a life insurance police?
The face amount of a life insurance policy is the amount of coverage that you choose when you purchase the policy. It is the amount that your beneficiaries will receive if you are critical or chronical ill, or injured or die while the policy is in force. There are several factors that can influence the calculation of the face amount, including:
Income replacement: One of the main reasons to purchase life insurance is to replace lost income in the event of your death. When calculating the face amount, consider your current income and how much your family would need to maintain their standard of living.
Outstanding debts and future expenses: Consider any debts that you have, such as a mortgage, car loans, or credit card debt, and estimate the future expenses that your family may face, such as college tuition for your children.
Estate planning: If you have significant assets and want to use life insurance to pay for estate taxes or other expenses, you may need a higher face amount.
Personal considerations: Finally, consider your personal circumstances and goals, such as whether you have dependents who rely on you for financial support, or if you want to leave a legacy for your beneficiaries.
It is important to work with a financial advisor or life insurance agent to determine the right face amount for your individual needs. They can help you assess your financial situation and determine the amount of coverage that is appropriate for you.
Million Dollar Baby Plan:
Million dollar protection with small monthly or yearly payment.
One Million dollar protection: Age 0 to 10
Invest $3,600 to $6500 per year x 30 years
Cash value over 1M by the age of 40
This is the Best Protection plan for your precious child.
Income replacement/ Retirement planning:
Replace your lost income and help your family maintain their standard of living or receive a life time income after retirement.
Invest $6500 to $22,500, or $7500 to $30,000 if you are age 50 or older, starts to take out life time income at age of 68 or no later than
It is an excellent worry free retirement plan for your income replacement after retirement.
Estate planning:
Life insurance can be used to help pay for estate taxes and other expenses, ensuring that your assets are passed on to your beneficiaries as you intended.
Invest $6500 to $22,500, or $7500 to $30,000 if you are age 50 or older, all of pay out from life insurance policy use to help pay for estate taxes and other expenses, your assets are passed on to your beneficiaries as you intended.
It is an excellent worry free Estate planning.
Investment vehicle: per IRS code 7702 Pay out from a life insurance policy is Tax Free.
provide a source of cash value that can be borrowed against or used to pay premiums.
Maximum the contribution amount allowed in life insurance policy, $6500 to $22,500, or $7500 to $30,000 if you are age 50 or older.
Borrow the cash value to buy a home, car, etc at age of 30,
No tax to pay when you borrow the money from your policy.
It is an investment vehicle.
Mortgage Protection Insurance:
Paying off mortgages and other debts: A life insurance policy can help pay off mortgages and other debts, giving your loved ones a financial fresh start.
The life insurance face amount is equal or greater than the mortgage you owed. Investment $ Per Month,
It is a must have plan for your loved ones a financial security future when you are not around.
Charitable giving:
Life insurance can be used to make a charitable donation, either through a direct gift or by naming a charity as a beneficiary of the policy.
Invest $6500 to $22,500, or $7500 to $30,000 if you are age 50 or older, all of pay out from life insurance policy use to help pay for estate taxes and other expenses, your assets are passed on to your favorite charities as you intended.
The more you give away, the more influential you’ll be.
Business succession planning:
(Executive Bonus Plans, and Key Person Insurance)
For business owners, life insurance can be used as a way to ensure the continued success of the business in the event of the owner's death.
This type of insurance provides coverage for a key employee or business partner. The death of a key person can have a significant impact on the financial stability of a business, so this type of insurance can help protect the business against financial losses in the event of the key person's death.