What is life insurance?
How to Buy Life Insurance.
Types of Life Insurance.
Unique Life Policy Options?

What is life insurance?

Life insurance is a unique financial asset which can be used to both protect future income in the event of death, and to provide tax deferred savings accumulation for future needs.

Life insurance can be used to:

  Recover loss of future income.

In the event of an untimely death of a wage earner, spouses and dependants can be protected from financial loss by purchasing sufficient life insurance coverage to meet your expected monetary needs.

  Pay death taxes and estate settlement costs.

Depending on the size of your estate, estate taxes may be substantial. Life insurance is one way to preserve an estate intact for future generations.

   Create a college fund.

Universal Life Insurance provides cash value that can be barrowed against for a variety of uses including funding a college education for your children, grandchildren or others. Since this investment accumulates tax-free and is more accessible than most IRA and 401K funds, it provides a unique opportunity for policy holders.

  Pay debts and meet financial responsibilities.

Pay off your home and other debt obligations either with term insurance or provide longer coverage periods with universal life policies.

  Protect business assets.

Key person life insurance protects a business from financial loss of a vital employee. The cost to hire and train key employees can be substantial and difficult to overcome.

  Shelter business entities.

Businesses can be protected from breakup after the death of an owner by purchasing life coverage on all owners with the remaining stockholders as beneficiaries. This will allow the remaining owners the financial ability to purchase the business from spouses, dependents or other beneficiaries.

  Estate Planning.

Proper estate planning frequently includes the purchase of life insurance. When considering life insurance as part of a trust, feel free to contact us for a competitive quote.

Here are some of the things to consider when buying life insurance

  Who will own the policy?

Ownership can vary greatly depending on need. The owner will be the only one allowed to authorize policy changes including beneficiaries. Trusts both irrevocable and non-irrevocable may also own policies in order to facilitate estate planning.

  Who will be the beneficiary of the Policy?

Life insurance proceeds are paid in accordance with the schedule of beneficiaries. Choosing them properly along with good tax planning is necessary.

  Determining amount and term of life insurance?

This can be the most difficult and frustrating part of the process. At Hendersons, Insurance, we are trained to assist you in this difficult process. Contact us for guidelines and suggestions in meeting your needs.

  What type of policy should be purchased?

Please contact Hendersons, Inc.,  to speak with an agent who are trained in life insurance and can explain the many different policies and assist in selecting the one which best fits your needs or refer to the table below.

  Premium payment options.

The amount due will depend both on the type of policy and, in the case of Universal Life policies, how quickly you with to build cash value. We are here to offer suggestions and cost saving options in paying life premiums. With the exception of limited amounts paid for by corporations, premiums must be paid with after tax dollars in order for benefits to be collected tax free.

  Cash In and Exchange Considerations.

It is important to consult a life insurance professional or your tax advisor before cashing in, rewriting or exchanging policies with a new or even and existing carrier. Advantages often include, a ready source of income, a lower total insurance cost, policy exchanges free of taxable gains, higher cash accumulation and more stable insurer. Some disadvantages to be aware of are, unfavorable tax consequences, reduced insurer stability, non-qualifying cash value exchanges, and renewed contestability periods.