From the Desk of Bob McNett……
Life Insurance…..It is What it is…..and you Can’t Fake it.
Nobody likes to talk about it. No one likes to think about it. When we sit down with an agent to discuss life insurance, we have to deal with something that no one really likes to deal with….our own mortality.
We know that day will come. It could be today. It could be in thirty years or more. The only thing we have some control over is how we take care of the people we leave behind. Life insurance provides a financial legacy that is unique to that financial product. There’s nothing like life insurance. No other financial product leaves an income-tax free benefit to a named beneficiary (ies). It is what it is…and you can’t fake it.
Life insurance has provided so many children with college educations, given millions of widows and widowers the financial flexibility to stay “in their own world.” Life insurance has allowed so many businesses to carry out the terms of a buy-sell agreement, letting the business continue as a successful enterprise, rather than be sold to pay off survivors. Key-person life insurance lets a business survive the passing of a key employee.
Permanent life insurance (whole life, universal life, etc.) can be fashioned to accrue major cash value benefits over the years. This cash value grows at a competitive interest rate. These cash values are often used to supplement retirement income (tax free in some cases) and to pay life insurance premiums during retirement. Premiums for permanent life insurance are higher in the early years than so-called term policies. But, the permanent policy has a level premium, and can be fashioned to be guaranteed coverage for your lifetime. Term policies often expire before the insured does. However, both term and permanent life insurance are viable options and serve different needs. The key is to make sure you use the correct tool, permanent or term, to fit the need.
No, it’s not the easiest topic to discuss. But, sound estate planning using a good life insurance portfolio gives your loved ones a legacy that is truly a gift of love. Call us to discuss your situation.
Robert K. McNett, LUTCF
The McNett Agency
918 294 3712 Fax 918 494 6725
Toll Free 1 866 497 7119